Note 13 - Supplemental Condensed Consolidating Guarantor Financial Statements

3 Months Ended

Mar. 30, 2014

Supplemental Guarantor Financial Statements [Abstract]

Supplemental Guarantor Financial Statements [Text Block]

NOTE 13 – SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

The Guarantor Subsidiaries, which consist of the Company’s principal domestic subsidiaries, are guarantors of the Company’s 7.625% Senior Notes due 2018. The Guarantor Subsidiaries are 100% owned by the Company, and 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 MARCH 30, 2014

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	135,949	$	115,963	$	0		$	(32,920	)	$	218,992
Cost of sales		98,250		78,976		0			(32,920	)		144,306
Gross profit on sales		37,699		36,987		0			0			74,686
Selling, general and administrative expenses		26,298		28,267		8,094			0			62,659
Operating income (loss)		11,401		8,720		(8,094	)		0			12,027
Interest/Other expense		5,823		2,826		(3,177	)		0			5,472
Income (loss) before taxes on income and equity in income of subsidiaries		5,578		5,894		(4,917	)		0			6,555
Income tax expense (benefit)		2,153		2,275		(1,898	)		0			2,530
Equity in income (loss) of subsidiaries		0		0		7,044			(7,044	)		0
Net income (loss)	$	3,425	$	3,619	$	4,025		$	(7,044	)	$	4,025

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED MARCH 30, 2014

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)		CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	3,425	$	3,619		$	4,025	$	(7,044	)	$	4,025
Currency Translation Adjustment		72		2,909			123		0			3,104
Pension Liability Adjustment		0		(481	)		44		0			(437	)
Comprehensive Income (Loss)	$	3,497	$	6,047		$	4,192	$	(7,044	)	$	6,692

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 30, 2014

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT  CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,078		$	37,197		$	23,217		$	0		$	62,492
Accounts receivable		50,013			76,657			534			0			127,204
Inventories		82,088			88,419			0			0			170,507
Prepaids and deferred income taxes		5,762			24,089			4,568			0			34,419
Total current assets		139,941			226,362			28,319			0			394,622
Property and equipment less accumulated depreciation		85,577			146,920			2,909			0			235,406
Investment in subsidiaries		567,639			204,415			(88,021	)		(684,033	)		0
Goodwill		6,542			71,931			0			0			78,473
Other assets		1,314			11,022			86,854			0			99,190
	$	801,013		$	660,650		$	30,061		$	(684,033	)	$	807,691
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$	39,139		$	69,777		$	21,848		$	0		$	130,764
Senior notes		0			0			247,500			0			247,500
Long term debt		0			30,907			0			0			30,907
Deferred income taxes		0			18,110			(2,410	)		0			15,700
Other		16			9,827			26,422			0			36,265
Total liabilities		39,155			128,621			293,360			0			461,136
Redeemable preferred stock		0			0			0			0			0
Common stock		94,145			102,199			6,647			(196,344	)		6,647
Additional paid-in capital		249,302			12,525			375,652			(261,827	)		375,652
Retained earnings (deficit)		420,801			468,388			(637,071	)		(225,862	)		26,256
AOCI - Foreign currency translation adjustment		(2,390	)		(19,148	)		(5,943	)		0			(27,481	)
AOCI - Pension liability		0			(31,935	)		(2,584	)		0			(34,519	)
	$	801,013		$	660,650		$	30,061		$	(684,033	)	$	807,691

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS

ENDED MARCH 30, 2014

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net cash provided by (used for) operating activities	$	(13,928	)	$	3,719		$	12,844		$	(5,195	)	$	(2,560	)
Cash flows from investing activities:
Purchase of plant and equipment		(6,205	)		(8,075	)		(195	)		5,413			(9,062	)
Other		142			(814	)		(286	)		0			(958	)
Net cash provided by (used for) investing activities		(6,063	)		(8,889	)		(481	)		5,413			(10,020	)
Cash flows from financing activities:
Borrowing of long term debt		0			4,140			0			0			4,140
Other		19,574			(14,426	)		(4,930	)		(218	)		0
Proceeds from issuance of common stock		0			0			105			0			105
Dividends paid		0			0			(1,995	)		0			(1,995	)
Net cash provided by (used for) financing activities		19,574			(10,286	)		(6,820	)		(218	)		2,250
Effect of exchange rate change on cash		0			(61	)		0			0			(61	)
Net increase (decrease) in cash		(417	)		(15,517	)		5,543			0			(10,391	)
Balance at beginning of period		2,495			52,714			17,674			0			72,883
Balance at end of period	$	2,078		$	37,197		$	23,217		$	0		$	62,492