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Shareholders' Equity
 12 Months Ended
Dec. 29, 2024
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 2024, 2023 and 2022. 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 2024 or 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 2024, 2023 and 2022:
 
 SHARESCOMMON STOCKADDITIONAL
PAID-IN
CAPITAL		RETAINED
EARNINGS		PENSION
LIABILITY		FOREIGN
CURRENCY
TRANSLATION
ADJUSTMENT
TOTAL
 (in thousands)
Balance, at December 31, 202358,112 $5,811 $252,909 $320,833 $(34,016)$(119,590)$425,947 
Net income— — — 86,946 — — 86,946 
Issuances of stock related to restricted share units and performance shares
479 48 (48)— — — — 
Restricted stock issuances58 6 941 — — — 947 
Unrecognized compensation expense related to restricted stock awards
— — (946)— — — (946)
Cash dividends declared— — — (2,338)— — (2,338)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings
(345)(35)8,172 — — — 8,137 
Pension liability adjustment— — — — (5,818)— (5,818)
Foreign currency translation adjustment— — — — — (23,727)(23,727)
Balance, at December 29, 202458,304 $5,830 $261,028 $405,441 $(39,834)$(143,317)$489,148 
 SHARESCOMMON STOCKADDITIONAL
PAID-IN
CAPITAL		RETAINED
EARNINGS		PENSION
LIABILITY		FOREIGN
CURRENCY
TRANSLATION
ADJUSTMENT		CASH FLOW
HEDGE
TOTAL
 (in thousands)
Balance, at January 1, 202358,106 $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 issuances107 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, 202358,112 $5,811 $252,909 $320,833 $(34,016)$(119,590)$— $425,947 

 SHARESCOMMON STOCKADDITIONAL
PAID-IN
CAPITAL		RETAINED
EARNINGS		PENSION
LIABILITY		FOREIGN
CURRENCY
TRANSLATION
ADJUSTMENT		CASH FLOW
HEDGE
TOTAL
 (in thousands)
Balance, at January 2, 202259,055 $5,905 $253,110 $261,434 $(53,888)$(100,441)$(2,722)$363,398 
Net income
— — — 19,560 — — — 19,560 
Restricted stock issuances501 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
(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, 202358,106 $5,811 $244,159 $278,639 $(27,548)$(138,775)$(749)$361,537 

  
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 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.

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 2024, 2023 and 2022, the Company granted restricted stock awards totaling 58,400, 107,100, and 500,800 shares, respectively, of Common Stock. The weighted average grant date fair value of restricted stock awards granted during 2024, 2023 and 2022 was $16.22, $7.10, and $13.08, respectively. These awards (or a portion thereof) vest with respect to each recipient over a one 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 in the event of a change in control of the Company or upon involuntary termination without cause.
 
Compensation expense related to awards of restricted stock was $2.3 million, $4.5 million and $5.3 million for 2024, 2023 and 2022, respectively. These grants are made primarily to the board of directors and 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 29, 2024, as well as activity during the year:
 
 Restricted Shares
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023691,600 $12.55 
Granted58,400 16.22 
Vested(504,700)12.31 
Forfeited or canceled(3,000)13.19 
Outstanding at December 29, 2024242,300 $13.92 
 
As of December 29, 2024, the unrecognized total compensation cost related to unvested restricted stock was $0.4 million. That cost is expected to be recognized over a weighted-average remaining vesting period of 0.3 years.
Restricted Share Unit Awards

During fiscal year 2024 and 2023, the Company granted awards for 407,300 and 596,200 restricted share units to certain employees pursuant to the Company’s stock incentive plan. There were no restricted share unit awards granted during 2022. The weighted average grant date fair value of the restricted share units granted during 2024 and 2023 was $13.38 and $10.36 respectively. 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 to three-year period from the date of grant, provided the individual remains in the employment or service of the Company as of each vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, upon involuntary termination without cause, or upon retirement provided certain eligibility criteria are met.

Compensation expense related to the restricted share units was $3.5 million and $1.9 million for 2024 and 2023, respectively. There was no compensation expense related to restricted share unit awards during 2022. 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 primarily in SG&A expenses in the consolidated statements of operations.

The following table summarizes restricted share units outstanding as of December 29, 2024, as well as activity during the year:

Restricted Share Units
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023583,400 $10.35 
Granted
407,300 13.38 
Vested
(157,200)10.77 
Forfeited or canceled
(10,200)11.41 
Outstanding at December 29, 2024823,300 $11.76 

As of December 29, 2024, the unrecognized total compensation cost related to unvested restricted share units was $6.0 million. That cost is expected to be recognized over a weighted-average remaining vesting period of 1.8 years.
 
Performance Share Awards
 
In each of the years 2024, 2023 and 2022, 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 three years, subject to (among other things) 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 expense related to these performance shares is captured in SG&A expenses in the consolidated statements of operations. The Company evaluates the probability of achieving the performance-based goals as of the end of each reporting period and adjusts compensation expense based on this assessment.
 
The following table summarizes the performance shares outstanding as of December 29, 2024, as well as the activity during the year:
 
Performance Shares
Weighted Average Grant Date Fair Value
Outstanding at December 31, 20231,115,000 $12.36 
Granted402,800 13.24 
Vested(322,200)13.90 
Forfeited or canceled(23,900)12.53 
Outstanding at December 29, 20241,171,700 $12.23 
 
Compensation expense related to the performance shares for 2024, 2023 and 2022 was $7.1 million, $3.9 million and $3.2 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 $7.9 million as of December 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 over a weighted-average remaining vesting period of 1.8 years.
 
The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was $1.7 million, $0.9 million, and $0.8 million in 2024, 2023 and 2022, respectively.