Supplemental Condensed Consolidating Guarantor Financial Statements

9 Months Ended

Oct. 02, 2011

Supplemental Condensed Consolidating Guarantor Financial Statements [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

NOTE 15 — SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

The Guarantor Subsidiaries, which consist of the Company’s principal domestic subsidiaries, are guarantors of the Company’s 11 3/8% Senior Secured Notes due 2013, its 9.5% Senior Subordinated Notes due 2014 and its 7 5/8% Senior Notes due 2018. These guarantees are full and unconditional. The Supplemental Guarantor Financial Statements are presented herein pursuant to requirements of the Commission.

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED OCTOBER 2, 2011

					INTERFACE,			CONSOLIDATION
			NON-		INC.			AND
	GUARANTOR		GUARANTOR		(PARENT			ELIMINATION			CONSOLIDATED
	SUBSIDIARIES		SUBSIDIARIES		CORPORATION)			ENTRIES			TOTALS
	(IN THOUSANDS)
Net sales	$	182,658	$	134,854	$	—		$	(44,406	)	$	273,106
Cost of sales		134,448		88,639		—			(44,406	)		178,681
Gross profit on sales		48,210		46,215		—			—			94,425
Selling, general and administrative expenses		30,972		32,062		6,053			—			69,087
Operating income (loss)		17,238		14,153		(6,053	)		—			25,338
Interest/Other expense		7,823		2,763		(4,333	)		—			6,253
Income (loss) before taxes on income and equity in income of subsidiaries		9,415		11,390		(1,720	)		—			19,085
Income tax expense (benefit)		3,412		4,128		(623	)		—			6,917
Equity in income (loss) of subsidiaries		—		—		13,265			(13,265	)		—
Net income (loss)		6,003		7,262		12,168			(13,265	)		12,168
Income attributable to non-controlling interest in subsidiary		—		—		—			—			—
Net income (loss) attributable to Interface, Inc.	$	6,003	$	7,262	$	12,168		$	(13,265	)	$	12,168

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED OCTOBER 2, 2011

			NON-		INTERFACE, INC.			CONSOLIDATION AND
	GUARANTOR		GUARANTOR		(PARENT			ELIMINATION			CONSOLIDATED
	SUBSIDIARIES		SUBSIDIARIES		CORPORATION)			ENTRIES			TOTALS
	(IN THOUSANDS)
Net sales	$	512,183	$	405,303	$	—		$	(131,338	)	$	786,148
Cost of sales		378,571		262,787		—			(131,338	)		510,020
Gross profit on sales		133,612		142,516		—			—			276,128
Selling, general and administrative expenses		86,872		94,901		21,352			—			203,125
Operating income (loss)		46,740		47,615		(21,352	)		—			73,003
Interest/Other expense		20,654		9,689		(10,602	)		—			19,741
Income (loss) before taxes on income and equity in income of subsidiaries		26,086		37,926		(10,750	)		—			53,262
Income tax expense (benefit)		9,110		13,118		(3,772	)		—			18,456
Equity in income (loss) of subsidiaries		—		—		41,784			(41,784	)		—
Net income (loss)		16,976		24,808		34,806			(41,784	)		34,806
Income attributable to non-controlling interest in subsidiary		—		—		—			—			—
Net income (loss) attributable to Interface, Inc.	$	16,976	$	24,808	$	34,806		$	(41,784	)	$	34,806

CONDENSED CONSOLIDATING BALANCE SHEET

OCTOBER 2, 2011

				NON-			INTERFACE, INC.			CONSOLIDATION
	GUARANTOR			GUARANTOR			(PARENT			AND ELIMINATION			CONSOLIDATED
	SUBSIDIARIES			SUBSIDIARIES			CORPORATION)			ENTRIES			TOTALS
	(IN THOUSANDS)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,813		$	30,456		$	12,117		$	—		$	44,386
Accounts receivable		67,456			89,877			676			—			158,009
Inventories		96,980			74,136			—			—			171,116
Prepaids and deferred income taxes		9,071			17,598			10,806			—			37,475
Assets of business held for sale		—			1,200			—			—			1,200
Total current assets		175,320			213,267			23,599			—			412,186
Property and equipment less accumulated depreciation		83,806			99,589			4,675			—			188,070
Investment in subsidiaries		241,113			153,434			189,892			(584,439	)		—
Goodwill		6,954			69,612			—			—			76,566
Other assets		6,545			12,138			83,800			—			102,483
	$	513,738		$	548,040		$	301,966		$	(584,439	)	$	779,305
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	$	15,340		$	52,044		$	86,358		$	—		$	153,742
Senior notes and senior subordinated notes		—			—			294,487			—			294,487
Deferred income taxes		11,124			1,615			(4,268	)		—			8,471
Other		4,242			1,902			27,930			—			34,074
Total liabilities		30,706			55,561			404,507			—			490,774
Common stock		94,145			102,199			6,546			(196,344	)		6,546
Additional paid-in capital		249,302			12,525			360,184			(261,827	)		360,184
Retained earnings (deficit)		141,184			424,722			(460,115	)		(125,160	)		(19,369	)
Foreign currency translation adjustment		(1,599	)		(19,119	)		(5,775	)		(1,108	)		(27,601	)
Pension liability		—			(27,848	)		(3,381	)		—			(31,229	)
	$	513,738		$	548,040		$	301,966		$	(584,439	)	$	779,305

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS
ENDED OCTOBER 2, 2011

				NON-			INTERFACE, INC.			CONSOLIDATION
	GUARANTOR			GUARANTOR			(PARENT			AND ELIMINATION			CONSOLIDATED
	SUBSIDIARIES			SUBSIDIARIES			CORPORATION)			ENTRIES			TOTALS
	(IN THOUSANDS)
Net cash provided by (used in) operating activities	$	(7,940	)	$	11,306		$	5,694		$	927		$	9,987
Cash flows from investing activities:
Purchase of plant and equipment		(15,048	)		(15,343	)		(368	)		—			(30,759	)
Other		(399	)		(1,083	)		(142	)		—			(1,624	)
Net cash used for investing activities		(15,447	)		(16,426	)		(510	)		—			(32,383	)
Cash flows from financing activities:
Other		24,114			3,609			(27,305	)		( 927	)		(509	)
Proceeds from issuance of common stock		—			—			2,610			—			2,610
Dividends paid to Interface, Inc. shareholders		—			—			(3,921	)		—			(3,921	)
Net cash used in financing activities		24,114			3,609			(28,616	)		(927	)		(1,820	)
Effect of exchange rate change on cash		—			(634	)		—			—			(634	)
Net increase (decrease) in cash		727			(2,145	)		(23,432	)		—			(24,850	)
Cash at beginning of period		1,086			32,601			35,549			—			69,236
Cash at end of period	$	1,813		$	30,456		$	12,117		$	—		$	44,386