Note 13 - Supplemental Condensed Consolidating Guarantor Financial Statements

6 Months Ended

Jun. 29, 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 JUNE 29, 2014

	GUARANTOR SUBSIDIARIES		NON-GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	170,896	$	131,622	$	0		$	(41,894	)	$	260,624
Cost of sales		123,170		88,963		0			(41,894	)		170,239
Gross profit on sales		47,726		42,659		0			0			90,385
Selling, general and administrative expenses		29,845		30,215		5,982			0			66,042
Operating income (loss)		17,881		12,444		(5,982	)		0			24,343
Interest/Other expense		7,505		2,637		(4,850	)		0			5,292
Income (loss) before taxes on income and equity in income of subsidiaries		10,376		9,807		(1,132	)		0			19,051
Income tax expense (benefit)		3,257		3,078		(355	)		0			5,980
Equity in income (loss) of subsidiaries		0		0		13,848			(13,848	)		0
Net income (loss)	$	7,119	$	6,729	$	13,071		$	(13,848	)	$	13,071

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 29, 2014

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	306,845	$	247,585	$	0		$	(74,814	)	$	479,616
Cost of sales		221,420		167,939		0			(74,814	)		314,545
Gross profit on sales		85,425		79,646		0			0			165,071
Selling, general and administrative expenses		56,143		58,482		14,076			0			128,701
Operating income (loss)		29,282		21,164		(14,076	)		0			36,370
Interest/Other expense		13,328		5,463		(8,027	)		0			10,764
Income (loss) before taxes on income and equity in income of subsidiaries		15,954		15,701		(6,049	)		0			25,606
Income tax expense (benefit)		5,410		5,353		(2,253	)		0			8,510
Equity in income (loss) of subsidiaries		0		0		20,892			(20,892	)		0
Net income (loss)	$	10,544	$	10,348	$	17,096		$	(20,892	)	$	17,096

INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED JUNE 29, 2014

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	7,119	$	6,729		$	13,071		$	(13,848	)	$	13,071
Currency Translation Adjustment		227		965			(114	)		0			1,078
Pension Liability Adjustment		0		(820	)		44			0			(776	)
Comprehensive Income (Loss)	$	7,346	$	6,874		$	13,001		$	(13,848	)	$	13,373

INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE SIX MONTHS ENDED JUNE 29, 2014

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)		CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	10,544	$	10,348		$	17,096	$	(20,892	)	$	17,096
Currency Translation Adjustment		299		3,874			9		0			4,182
Pension Liability Adjustment		0		(1,301	)		88		0			(1,213	)
Comprehensive Income (Loss)	$	10,843	$	12,921		$	17,193	$	(20,892	)	$	20,065

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 29, 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	$	1,757		$	32,984		$	15,271		$	0		$	50,012
Accounts receivable		60,684			88,755			488			0			149,927
Inventories		84,292			88,160			0			0			172,452
Prepaids and deferred income taxes		5,818			22,124			6,305			0			34,247
Total current assets		152,551			232,023			22,064			0			406,638
Property and equipment less accumulated depreciation		87,658			151,694			2,780			0			242,132
Investment in subsidiaries		565,103			207,885			(75,108	)		(697,880	)		0
Goodwill		6,542			71,141			0			0			77,683
Other assets		1,870			10,783			84,377			0			97,030
	$	813,724		$	673,526		$	34,113		$	(697,880	)	$	823,483
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	44,494		$	75,705		$	15,315		$	0		$	135,514
Senior notes		0			0			247,500			0			247,500
Long term debt		0			31,513			0			0			31,513
Deferred income taxes		0			18,840			(2,383	)		0			16,457
Other		26			8,566			25,942			0			34,534
Total liabilities		44,520			134,624			286,374			0			465,518
Common stock		94,145			102,199			6,648			(196,344	)		6,648
Additional paid-in capital		249,302			12,525			375,682			(261,827	)		375,682
Retained earnings (deficit)		427,920			475,116			(625,994	)		(239,709	)		37,333
Foreign currency translation adjustment		(2,163	)		(18,183	)		(6,057	)		0			(26,403	)
Pension liability		0			(32,755	)		(2,540	)		0			(35,295	)
	$	813,724		$	673,526		$	34,113		$	(697,880	)	$	823,483

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 29, 2014

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net cash provided by (used in) operating activities	$	(11,248	)	$	11,750		$	6,059		$	(5,757	)	$	804
Cash flows from investing activities:
Purchase of plant and equipment		(11,993	)		(15,236	)		(201	)		5,413			(22,017	)
Other		(212	)		(612	)		(834	)		0			(1,658	)
Net cash provided by (used in) investing activities		(12,205	)		(15,848	)		(1,035	)		5,413			(23,675	)
Cash flows from financing activities:
Borrowing of long term debt		0			3,663			0			0			3,663
Other		22,715			(19,462	)		(3,597	)		344			0
Proceeds from issuance of common stock		0			0			159			0			159
Dividends paid		0			0			(3,989	)		0			(3,989	)
Net cash provided by (used in) financing activities		22,715			(15,799	)		(7,427	)		344			(167	)
Effect of exchange rate change on cash		0			167			0			0			167
Net increase (decrease) in cash		(738	)		(19,730	)		(2,403	)		0			(22,871	)
Balance at Beginning of Period		2,495			52,714			17,674			0			72,883
Balance at End of Period	$	1,757		$	32,984		$	15,271		$	0		$	50,012