10-Q

Table Of Contents

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For Quarterly Period Ended July 3, 2016

Commission File Number 001-33994

INTERFACE, INC.

(Exact name of registrant as specified in its charter)

GEORGIA	58-1451243
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2859 PACES FERRY ROAD, SUITE 2000, ATLANTA, GEORGIA 30339

(Address of principal executive offices and zip code)

(770) 437-6800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐     No ☑

Shares outstanding of each of the registrant’s classes of common stock at August 4, 2016:

Class	Number of Shares
Common Stock, $.10 par value per share	64,807,371

INTERFACE, INC.

INDEX

			PAGE
PART I.	FINANCIAL INFORMATION
	Item 1.	Financial Statements	3
		Consolidated Condensed Balance Sheets – July 3, 2016 and January 3, 2016	3
		Consolidated Condensed Statements of Operations – Three Months and Six Months Ended July 3, 2016 and July 5, 2015	4
		Consolidated Statements of Comprehensive Income – Three Months and Six Months Ended July 3, 2016 and July 5, 2015	5
		Consolidated Condensed Statements of Cash Flows – Six Months Ended July 3, 2016 and July 5, 2015	6
		Notes to Consolidated Condensed Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17
	Item 4.	Controls and Procedures	18
PART II.	OTHER INFORMATION
	Item 1.	Legal Proceedings	19
	Item 1A.	Risk Factors	19
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
	Item 3.	Defaults Upon Senior Securities	19
	Item 4.	Mine Safety Disclosures	19
	Item 5.	Other Information	19
	Item 6.	Exhibits	20

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(IN THOUSANDS)

	JULY 3, 2016			JANUARY 3, 2016
	(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents	$	88,364		$	75,696
Accounts Receivable, net		128,479			130,322
Inventories		168,738			161,174
Prepaid Expenses and Other Current Assets		22,402			22,490
Deferred Income Taxes		8,509			8,726
TOTAL CURRENT ASSETS		416,492			398,408
PROPERTY AND EQUIPMENT, less accumulated depreciation		210,818			211,489
DEFERRED TAX ASSET		11,073			20,110
GOODWILL		64,872			63,890
OTHER ASSETS		61,864			62,652
TOTAL ASSETS	$	765,119		$	756,549
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts Payable	$	45,174		$	52,834
Current Portion of Long-Term Debt		13,750			11,250
Accrued Expenses		79,501			88,933
TOTAL CURRENT LIABILITIES		138,425			153,017
LONG-TERM DEBT		210,577			202,281
DEFERRED INCOME TAXES		9,030			10,505
OTHER		45,947			48,380
TOTAL LIABILITIES		403,979			414,183
Commitments and Contingencies
SHAREHOLDERS’ EQUITY:
Preferred Stock		0			0
Common Stock		6,481			6,570
Additional Paid-In Capital		358,320			370,327
Retained Earnings		127,274			100,270
Accumulated Other Comprehensive Loss – Foreign Currency Translation Adjustment		(90,443	)		(91,511	)
Accumulated Other Comprehensive Loss – Pension Liability		(40,492	)		(43,290	)
TOTAL SHAREHOLDERS’ EQUITY		361,140			342,366
	$	765,119		$	756,549

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JULY 3, 2016			JULY 5, 2015			JULY 3, 2016		JULY 5, 2015
NET SALES	$	248,207		$	263,637		$	470,761	$	500,541
Cost of Sales		149,081			162,385			285,003		313,857
GROSS PROFIT ON SALES		99,126			101,252			185,758		186,684
Selling, General and Administrative Expenses		67,328			68,033			132,933		132,065
OPERATING INCOME		31,798			33,219			52,825		54,619
Interest Expense		1,590			1,790			3,109		3,678
Other Expense (Income)		(116	)		(446	)		333		826
INCOME BEFORE INCOME TAX EXPENSE		30,324			31,875			49,383		50,115
Income Tax Expense		9,667			10,153			15,832		16,071
NET INCOME	$	20,657		$	21,722		$	33,551	$	34,044
Earnings Per Share – Basic	$	0.32		$	0.33		$	0.51	$	0.51
Earnings Per Share – Diluted	$	0.32		$	0.33		$	0.51	$	0.51
Common Shares Outstanding – Basic		65,367			65,995			65,526		66,208
Common Shares Outstanding – Diluted		65,405			66,044			65,564		66,253

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(IN THOUSANDS)

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JULY 3, 2016			JULY 5, 2015			JULY 3, 2016		JULY 5, 2015
Net Income	$	20,657		$	21,722		$	33,551	$	34,044
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment		(8,311	)		5,060			1,068		(20,239	)
Other Comprehensive Income (Loss), Pension Liability Adjustment		2,190			(2,557	)		2,798		645
Comprehensive Income	$	14,536		$	24,225		$	37,417	$	14,450

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

	SIX MONTHS ENDED
	JULY 3, 2016			JULY 5, 2015
OPERATING ACTIVITIES:
Net Income	$	33,551		$	34,044
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Depreciation and Amortization		14,960			15,539
Stock Compensation Amortization Expense		2,349			9,100
Deferred Income Taxes and Other		4,490			9,287
Working Capital Changes:
Accounts Receivable		1,668			15,209
Inventories		(6,169	)		(27,150	)
Prepaid Expenses and Other Current Assets		(574	)		(2,328	)
Accounts Payable and Accrued Expenses		(20,360	)		(2,841	)
CASH PROVIDED BY OPERATING ACTIVITIES:		29,915			50,860
INVESTING ACTIVITIES:
Capital Expenditures		(12,752	)		(12,126	)
Other		1,585			(462	)
CASH USED IN INVESTING ACTIVITIES:		(11,167	)		(12,588	)
FINANCING ACTIVITIES:
Repayments of Long-Term Debt		(10,000	)		(3,000	)
Borrowing of Long-Term Debt		20,167			0
Proceeds from Issuance of Common Stock		0			359
Repurchase of Common Stock		(10,443	)		(10,469	)
Dividends Paid		(6,547	)		(5,300	)
CASH USED IN FINANCING ACTIVITIES:		(6,823	)		(18,410	)
Net Cash Provided by (Used in) Operating, Investing and
Financing Activities		11,925			19,862
Effect of Exchange Rate Changes on Cash		743			(2,937	)
CASH AND CASH EQUIVALENTS:
Net Change During the Period		12,668			16,925
Balance at Beginning of Period		75,696			54,896
Balance at End of Period	$	88,364		$	71,821

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

NOTE 1 – CONDENSED FOOTNOTES

As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end audited consolidated financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended January 3, 2016, as filed with the Commission.

The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The January 3, 2016, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The first quarter of 2016 was comprised of 13 weeks, while the first quarter of 2015 was comprised of 14 weeks. Each of the second quarters of 2016 and 2015 was comprised of 13 weeks.

Certain prior period amounts have been reclassified to conform to the current period presentation.

NOTE 2 – INVENTORIES

Inventories are summarized as follows:

	July 3, 2016		January 3, 2016
	(In thousands)
Finished Goods	$	112,304	$	101,697
Work in Process		9,710		9,865
Raw Materials		46,724		49,612
	$	168,738	$	161,174

NOTE 3 – EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below.  Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings.

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The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. The following tables show distributed and undistributed earnings:

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Earnings Per Share:
Basic Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04	$	0.10	$	0.08
Undistributed Earnings		0.27		0.29		0.41		0.43
Total	$	0.32	$	0.33	$	0.51	$	0.51
Diluted Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04	$	0.10	$	0.08
Undistributed Earnings		0.27		0.29		0.41		0.43
Total	$	0.32	$	0.33	$	0.51	$	0.51
Basic earnings per share	$	0.32	$	0.33	$	0.51	$	0.51
Diluted earnings per share	$	0.32	$	0.33	$	0.51	$	0.51

The following tables present net income that was attributable to participating securities:

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In millions)
Net Income	$	0.2	$	0.5	$	0.3	$	0.8

The weighted average shares outstanding for basic and diluted EPS were as follows:

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In thousands)
Weighted Average Shares Outstanding		64,779		64,497		64,938		64,710
Participating Securities		588		1,498		588		1,498
Shares for Basic Earnings Per Share		65,367		65,995		65,526		66,208
Dilutive Effect of Stock Options		38		49		38		45
Shares for Diluted Earnings Per Share		65,405		66,044		65,564		66,253

For all periods presented, there were no options or participating securities excluded from the computation of diluted EPS.

NOTE 4 – LONG-TERM DEBT

Syndicated Credit Facility

The Company has a syndicated credit facility (the “Facility”) pursuant to which the lenders provide to the Company and certain of its subsidiaries a multicurrency revolving credit facility and provide to the Company a term loan. The facility matures in October of 2019. Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on LIBOR-based loans and fees for letters of credit are charged at varying rates computed by applying a margin over the applicable LIBOR rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

As of July 3, 2016, the Company had outstanding $192.5 million of term loan borrowing and $31.8 million of revolving loan borrowings outstanding under the Facility, and had $4.0 million in letters of credit outstanding under the Facility. As of July 3, 2016, the weighted average interest rate on borrowings outstanding under the Facility was 2.4%.

Beginning in the fourth quarter of 2015, the Company became required to make quarterly amortization payments of the term loan borrowing. The amortization payments are due on the last day of the calendar quarter. The payment amount for each of the first three quarters of 2016 is $2.5 million per quarter. The quarterly amortization payment amount increases to $3.75 million on December 31, 2016.

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The Company is currently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future.

Other Lines of Credit

Subsidiaries of the Company have an aggregate of the equivalent of $14.7 million of other lines of credit available at interest rates ranging from 2.5% to 6.5%. As of July 3, 2016, there were no borrowings outstanding under these lines of credit. 

NOTE 5 – STOCK-BASED COMPENSATION

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award.

All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first six months of 2015 or 2016.

As of July 3, 2016, there were 87,500 stock options outstanding and exercisable, at an average exercise price of $8.75 per share. There were no stock options granted in 2016 or 2015. There were no exercises or forfeitures of stock options in the first six months of 2016. The aggregate intrinsic value of the outstanding and exercisable stock options was $0.6 million as of July 3, 2016.

Restricted Stock Awards

During the six months ended July 3, 2016 and July 5, 2015, the Company granted restricted stock awards for 266,500 and 597,000 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient 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 the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $1.7 million and $9.1 million for the six months ended July 3, 2016 and July 5, 2015, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of July 3, 2016, as well as activity during the six months then ended:

	Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding at January 3, 2016		1,470,000	$	17.92
Granted		266,500		17.21
Vested		975,000		18.53
Forfeited or canceled		174,000		16.71
Outstanding at July 3, 2016		587,500	$	16.95

As of July 3, 2016, the unrecognized total compensation cost related to unvested restricted stock was $6.4 million. That cost is expected to be recognized by the end of 2019.

Performance Share Awards

In 2016, 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 one to three years, subject to 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.

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The following table summarizes the performance shares outstanding as of July 3, 2016, as well as the activity during the six months then ended:

	Performance Shares
Outstanding at January 3, 2016		0
Granted		435,500
Vested		0
Forfeited or canceled		0
Outstanding at July 3, 2016		435,500

The weighted average grant date fair value of the performance shares awarded in the first six month of 2016 was $17.23 per share. Compensation expense related to the performance shares for the six months ended July 3, 2016 was $0.6 million. Unrecognized compensation expense related to these performance shares was approximately $6.9 million as of July 3, 2016. No performance shares were granted or outstanding during 2015.

NOTE 6 – EMPLOYEE BENEFIT PLANS

The following tables provide the components of net periodic benefit cost for the three-month and six-month periods ended July 3, 2016 and July 5, 2015, respectively:

	Three Months Ended						Six Months Ended
Defined Benefit Retirement Plan (Europe)	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
	(In thousands)						(In thousands)
Service cost	$	263		$	265		$	521		$	534
Interest cost		1,728			2,111			3,448			4,204
Expected return on assets		(2,007	)		(2,265	)		(4,004	)		(4,512	)
Amortization of prior service costs		(9	)		9			18			17
Recognized net actuarial losses		184			242			368			481
Net periodic benefit cost	$	159		$	362		$	351		$	724

	Three Months Ended				Six Months Ended
Salary Continuation Plan (SCP)	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
	(In thousands)				(In thousands)
Service cost	$	110	$	148	$	220	$	297
Interest cost		317		278		634		556
Amortization of loss		203		131		405		261
Net periodic benefit cost	$	630	$	557	$	1,259	$	1,114

NOTE 7 – SEGMENT INFORMATION

Based on applicable accounting standards, the Company has determined that it has three operating segments – namely, the Americas, Europe and Asia-Pacific geographic regions. Pursuant to accounting standards, the Company has aggregated the three operating segments into one reporting segment because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment.

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While the Company operates as one reporting segment for the reasons discussed, included below is selected information on our operating segments.

	AMERICAS		EUROPE		ASIA- PACIFIC		TOTAL
	(in thousands)
Three Months Ended July 3, 2016:
Net Sales	$	148,761	$	61,264	$	38,182	$	248,207
Depreciation and amortization		3,611		1,297		2,169		7,077
Total assets		244,313		256,381		187,705		688,399
Three Months Ended July 5, 2015:
Net Sales	$	158,243	$	66,273	$	39,121	$	263,637
Depreciation and amortization		3,879		1,231		2,297		7,407
Six Months Ended July 3, 2016:
Net Sales	$	279,177	$	119,222	$	72,362	$	470,761
Depreciation and amortization		7,268		2,571		4,385		14,224
Six Months Ended July 5, 2015:
Net Sales	$	297,590	$	130,780	$	72,171	$	500,541
Depreciation and amortization		7,820		2,436		4,662		14,918

A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows:

	Three Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	7,077	$	7,407
Corporate depreciation and amortization		366		343
Reported depreciation and amortization	$	7,443	$	7,750

	Six Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	14,224	$	14,918
Corporate depreciation and amortization		736		621
Reported depreciation and amortization	$	14,960	$	15,539

ASSETS	July 3, 2016
	(In thousands)
Total segment assets	$	688,399
Corporate assets and eliminations		76,720
Reported total assets	$	765,119

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NOTE 8 – SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest amounted to $2.5 million and $3.3 million for the six months ended July 3, 2016 and July 5, 2015, respectively. Income tax payments amounted to $7.3 million and $3.5 million for the six months ended July 3, 2016 and July 5, 2015, respectively.

NOTE 9 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard regarding recognition of revenue from contracts with customers. In summary, the core principle of this standard is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance for this standard was initially effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in August of 2015, the FASB delayed the effective date of the standard for one full year. While the Company is currently reviewing this new standard, it does not believe that the adoption of this standard will have a material impact on its financial condition or results of operations.

In January 2015, the FASB issued an accounting standard which eliminates the concept of extraordinary items from generally accepted accounting principles. The standard does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The standard is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The adoption of this standard did not have any impact on our financial condition or results of operations.

In February 2015, the FASB issued an accounting standard which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The new accounting standard is effective for annual and interim periods in fiscal years beginning after December 15, 2015. The adoption of this standard did not have any impact on our financial condition or results of operations.

In April 2015, the FASB issued an accounting standard to simplify the presentation of debt issuance costs. This accounting standard requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. In August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements as an asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The guidance in these accounting standards is to be applied retrospectively and is effective for interim and annual reporting periods beginning after December 15, 2015. The Company’s debt issuance costs relate to its Syndicated Credit Facility and, as a result, these costs have been, and will continue to be, included as an asset on the balance sheet. Thus, the adoption of this standard did not have any impact on our financial statements.

In July 2015, the FASB issued an accounting standard to simplify the accounting for inventory. This standard requires all inventories to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this new standard and does not expect it to have a significant impact on its consolidated financial statements.

In November 2015, the FASB issued an accounting standard which requires deferred tax assets and liabilities, as well as any related valuation allowance, to be classified as noncurrent on the balance sheet. As a result, each jurisdiction will only have one net noncurrent deferred tax asset or liability. This standard does not change the existing requirement that only permits offsetting within a jurisdiction. The amendments in the standard may be applied either prospectively or retrospectively to all prior periods presented. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. As this standard impacts only presentation, the Company does not expect it to have any significant effect on its ongoing financial reporting.

In February 2016, the FASB issued a new accounting standard regarding leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of adoption of the new standard on our consolidated financial statements

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NOTE 10 – INCOME TAXES

Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first six months of 2016, the Company decreased its liability for unrecognized tax benefits by $0.2 million. As of July 3, 2016, the Company had accrued approximately $28.1 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of July 3, 2016 reflects a reduction for $14.2 million of these unrecognized tax benefits.

NOTE 11 – ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME

During the first six months of 2016, the Company did not reclassify any significant amounts out of accumulated other comprehensive income. The reclassifications that occurred in that period were primarily comprised of $0.8 million related to the Company’s defined retirement benefit plan and salary continuation plan. These reclassifications were included in the selling, general and administrative expenses line item of the Company’s consolidated condensed statement of operations.

NOTE 12 – REPURCHASE OF COMMON STOCK

In the fourth quarter of 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. In the second quarter of 2016, the Company amended the share purchase program to authorize the repurchase of up to $50 million of common stock. This amended program has no specific expiration date. During the first six months of 2016, the Company repurchased and retired 662,500 shares of common stock at a weighted average purchase price of $15.73 per share.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our discussions below in this Item 2 are based upon the more detailed discussions about our business, operations and financial condition included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016, under Item 7 of that Form 10-K. Our discussions here focus on our results during the quarter and six months ended, or as of, July 3, 2016, and the comparable periods of 2015 for comparison purposes, and, to the extent applicable, any material changes from the information discussed in that Form 10-K or other important intervening developments or information since that time. These discussions should be read in conjunction with that Form 10-K for more detailed and background information.

Forward-Looking Statements

This report contains statements which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties associated with economic conditions in the commercial interiors industry as well as the risks and uncertainties discussed under the heading “Risk Factors” included in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2016, which discussion is hereby incorporated by reference. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

General

During the quarter ended July 3, 2016, we had net sales of $248.2 million, compared with net sales of $263.6 million in the second quarter last year. During the first six months of fiscal year 2016, we had net sales of $470.8 million, compared with net sales of $500.5 million in the first six months of last year. Fluctuations in currency exchange rates had small negative impacts on our sales and operating income in the 2016 reported periods, compared with the prior year periods. The following table presents the amounts (in U.S. dollars) by which the exchange rates for converting foreign currencies into U.S. dollars have negatively affected our net sales and operating income for the three months and six months ended July 3, 2016.

Impact of Changes in Foreign Currency on:	Three Months Ended July 3, 2016			Six Months Ended July 3, 2016
	(In millions)
Net sales	$	(0.5	)	$	(4.3	)
Operating income		0.0			(0.3	)

During the second quarter of 2016, we had net income of $20.7 million, or $0.32 per diluted share, compared with net income of $21.7 million, or $0.33 per diluted share, in the second quarter of 2015. During the six months ended July 3, 2016, we had net income of $33.6 million, or $0.51 per diluted share, compared with net income of $34.0 million, or $0.51 per diluted share, in the first six months of 2015.

The first six months of 2016 were comprised of 26 weeks, while the first six months of 2015 were comprised of 27 weeks. (The additional week was in the first quarter of 2015.) This is a factor in certain of the comparisons discussed in this Item 2.

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Results of Operations

The following table presents, as a percentage of net sales, certain items included in our Consolidated Condensed Statements of Operations for the three-month and six-month periods ended July 3, 2016, and July 5, 2015, respectively:

	Three Months Ended						Six Months Ended
	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		60.1			61.6			60.5			62.7
Gross profit on sales		39.9			38.4			39.5			37.3
Selling, general and administrative expenses		27.1			25.8			28.2			26.4
Operating income		12.8			12.6			11.2			10.9
Interest/Other expenses		0.6			0.5			0.8			0.9
Income before tax expense		12.2			12.1			10.5			10.0
Income tax expense		3.9			3.9			3.4			3.2
Net income		8.3			8.2			7.1			6.8

Net Sales

Below we provide information regarding net sales and analyze those results for the three-month and six-month periods ended July 3, 2016, and July 5, 2015, respectively.

	Three Months Ended				Percentage
	July 3, 2016		July 5, 2015		Change
	(In thousands)
Net Sales	$	248,207	$	263,637		(5.9	%)

	Six Months Ended				Percentage
	July 3, 2016		July 5, 2015		Change
	(In thousands)
Net Sales	$	470,761	$	500,541		(5.9	%)

For the quarter ended July 3, 2016, net sales decreased $15.4 million (5.9%) versus the comparable period in 2015. Currency fluctuations did not have a significant impact on the comparison, as a strengthening of the Euro versus the U.S. dollar was offset by the weakening of the Australian dollar versus the U.S. dollar. On a geographic basis, we experienced sales declines in the Americas (down 6%), Europe (down 8% as reported in U.S. dollars and 9% in local currency) and Asia-Pacific (down 2%). In the Americas, the decline was largely attributable to our InterfaceServices business, where its largest retail customer delayed many projects until the second half of 2016, alongside deferred purchases by customers in the weakened oil and gas sector. With the exception of the hospitality (up 27%) and healthcare (up 15%) segments, all other market segments in the Americas region experienced declining sales in the second quarter of 2016 compared with the prior year period. In Europe, the decline was largely due to customer uncertainty and hesitation leading up to the June 23, 2016 Brexit referendum vote. The decline in Europe occurred in the corporate office (down 9%) and education (down 46%) market segments, partially offset by increases in all other market segments with the retail segment (up 34%) being the most significant. In Asia-Pacific, the decline was largely a function of softer sales performance in Australia (down 9% as reported in U.S. dollars and 5% in local currency) due primarily to large project shipments in June 2015 that did not reoccur this year. The remainder of the Asia-Pacific region experienced an increase of 5%, with India and China having the most significant growth. Within the Asia-Pacific division, sales in the corporate office market segment were up 6%, but this was more than offset by a 25% decline in non-office segments, with education (down 39%) and hospitality (down 63%) representing the largest areas of decline.

For the six months ended July 3, 2016, net sales decreased $29.8 million (5.9%) versus the comparable period in 2015. Currency fluctuations had a negative impact on the comparison of approximately $4.3 million, or just under 1%. On a geographic basis, we experienced a decline of 6% in the Americas and 9% in Europe (in both U.S. dollars and local currency), while our sales in Asia-Pacific were up less than 1% in the first six months of 2016 compared with the same period last year. The decline in the Americas region was, again, largely a result of delayed projects at our InterfaceServices business until the second half of 2016, along with softer sales to oil and gas customers. With the exception of the hospitality (up 13%) and healthcare (up 7%) market segments, all other market segments in the Americas had lower sales compared with the first six months of 2015. In Europe, the uncertainty and hesitation surrounding the Brexit vote as well as other political and economic issues led to lower sales, particularly in the corporate office (down 10%) and education (down 38%) market segments. Small increases in the retail (up 32%) and hospitality (up 23%) market segments slightly mitigated the decline. In Asia-Pacific, an increase of 8% in Asia was nullified by a decline in Australia of 6% as reported in U.S. dollars. In local currency, however, sales in Australia were even in the first six months of 2016 compared with the same period in 2015. On a market segment basis within the Asia-Pacific region, an increase in the corporate office segment of 8% for the first six months of 2016 was offset almost entirely by declines in the retail (down 54%), education (down 27%) and hospitality (down 49%) segments.

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Cost and Expenses

The following table presents, on a consolidated basis for our operations, our overall cost of sales and selling, general and administrative expenses for the three-month and six-month periods ended July 3, 2016, and July 5, 2015, respectively:

	Three Months Ended				Percentage
Cost and Expenses	July 3, 2016		July 5, 2015		Change
	(In thousands)
Cost of sales	$	149,081	$	162,385		(8.2%	)
Selling, general and administrative expenses		67,328		68,033		(1.0%	)
Total	$	216,409	$	230,418		(6.1%	)

	Six Months Ended				Percentage
Cost and Expenses	July 3, 2016		July 5, 2015		Change
	(In thousands)
Cost of sales	$	285,003	$	313,857		(9.2%	)
Selling, general and administrative expenses		132,933		132,065		0.7	%
Total	$	417,936	$	445,922		(6.3%	)

For the three months ended July 3, 2016, our cost of sales decreased $13.3 million (8.2%) versus the comparable period in 2015. As a percentage of sales, our costs of sales decreased to 60.1% for the second quarter of 2016 versus 61.6% for the second quarter of 2015. This improvement in gross profit margin occurred across all three of our geographic regions, with Asia-Pacific showing the largest percentage increase, followed by Europe and the Americas. The key factors in the gross margin improvement were (1) lower raw materials input costs (for the second quarter of 2016, our per-unit input costs are 3-5% lower on average than the comparable period in 2015 due to lower prices on petroleum-based raw materials), (2) a shift in product mix towards margin accretive products such as our skinny plank designs, and (3) better material usage and improved production efficiencies as we continue to implement and refine our lean manufacturing practices. These factors drove the decrease in cost of sales as percentage of sales, despite a 7% decline in production volume in the second quarter of 2016 compared with the second quarter last year.

For the six months ended July 3, 2016, our cost of sales decreased $28.9 million (9.2%) versus the comparable period in 2015. Currency fluctuations had a favorable impact of less than 1% on the comparison; if currency rates had remained the same year over year, our cost of sales would have been approximately $3.0 million higher versus the first six months of 2015. As a percentage of sales, our cost of sales declined to 60.5% for the first six months of 2016, versus 62.7% for the same period last year. The improvement as a percentage of sales took place across all of our geographic regions, with Asia-Pacific having the largest increase followed by Europe and the Americas. Our decrease in cost of sales in absolute dollars was due to the following factors: (1) lower raw materials costs, as our per-unit input costs were down 4-6% during the first six months of 2016 compared with the prior year period, primarily as a result of lower petroleum-based and related feedstock costs; (2) better material usage and improved production efficiencies as we continue to implement and refine lean manufacturing practices; (3) higher average selling prices in the Americas region; and (4) introduction of margin accretive products such as additional skinny plank designs. These factors led to decreased cost of sales as a percentage of sales, notwithstanding a 9% decline in production volume for the first six months of 2016 compared with the prior year period.

For the three months ended July 3, 2016, our selling, general and administrative (“SG&A”) expenses decreased $0.7 million (1.0%) versus the comparable period in 2015. The decline in SG&A expenses was primarily due to savings of approximately $3.0 million in administrative costs, primarily as a result of lower performance-based incentive compensation this year. This decrease was somewhat mitigated by (1) $0.9 million of higher selling expenses, primarily associated with new sales staff additions in the Americas division to continue targeting growth markets, and (2) $1.5 million of higher marketing expenses for planned initiatives to promote growth, including global branding, market development and new product introductions. The marketing expenses were higher globally, with the Americas region having the largest increase ($0.8 million) and Europe and Asia-Pacific each responsible for approximately $0.3 million of the increase. Despite the lower SG&A expenses in absolute dollars, the decline in net sales led to an increase in SG&A expenses as a percentage of sales to 27.1% for the three months ended July 3, 2016, compared with 25.8% in the comparable period of 2015. Our SG&A expenses as a percentage of sales are down sequentially, however, as compared to 29.5% in the first quarter of 2016.

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For the six months ended July 3, 2016, our SG&A expenses increased $0.9 million (0.7%) versus the comparable period in 2015. Fluctuations in currency exchange rates had a slight (less than 1%) negative impact on the comparison. As noted above, our SG&A expenses during the second quarter of 2016 declined as compared to the second quarter of 2015, so the overall increase for the current year six-month period related entirely to the first quarter of 2016. The increase was due to $4.3 million of increased marketing expenses as we continue to roll out global marketing, branding and product introduction platforms. Marketing expenses were up across all regions, with the Americas (up $2.1 million) followed by Europe (up $1.2 million) and Asia-Pacific (up $1.0 million). We also had an increase of $1.4 million in selling expenses, almost entirely within the Americas region, for personnel additions in key markets. These increases were offset by lower administrative costs of $4.8 million, primarily as a result of lower performance-based incentive compensation this year. Due to the overall increase in SG&A expenses, as well as a decline in sales, our SG&A expenses as a percentage of sales increased to 28.2% for the six months ended July 3, 2016, as compared to 26.4% for the six months ended July 5, 2015.

Interest Expense

For the three month period ended July 3, 2016, our interest expense decreased $0.2 million to $1.6 million, from $1.8 million in the second quarter of 2015. For the six month period ended July 3, 2016, our interest expense decreased $0.6 million to $3.1 million, from $3.7 million in the comparable period last year. The decreases were due to lower daily average outstanding borrowings under our Syndicated Credit Facility during the second quarter and first six months of 2016 as compared to the corresponding periods of 2015.

Liquidity and Capital Resources

General

At July 3, 2016, we had $88.4 million in cash and cash equivalents. At that date, we had $192.5 million in term loan borrowings, $31.8 million of revolving loan borrowings and $4.0 million in letters of credit outstanding under the Syndicated Credit Facility. As of July 3, 2016, we could have incurred $214.2 million of additional borrowings under our Syndicated Credit Facility. In addition, we could have incurred an additional $14.7 million of borrowings under our other lines of credit in place at other non-U.S. subsidiaries.

It is also important for you to consider that borrowings under our Syndicated Credit Facility comprise essentially all of our indebtedness, and that these borrowings are based on variable interest rates (as described above) that expose the Company to the risk that short-term interest rates may increase. For information regarding the current variable interest rates of these borrowings and the potential impact on our interest expense from hypothetical increases in short term interest rates, please see Note 4 in Part I, Item 1 of this report and the discussion under the heading “Interest Rate Risk” in Item 7A of our Annual Report on Form 10-K for the year ended January 3, 2016.

Analysis of Cash Flows

Apart from cash provided by operating activities, our primary source of cash during the six months ended July 3, 2016 was $20.2 million of revolving loan borrowings under our Syndicated Credit Facility. Most of the revolving loan borrowings were made by our Australian subsidiary in Australian dollars and then converted into U.S. dollars, to take advantage of a strong Australian dollar and lock in a favorable exchange rate into U.S. dollars, which are used by that business for certain raw material purchases. Our primary uses of cash during the period were (1) $20.4 million for a reduction of accounts payable and accrued expenses, (2) $12.8 million for capital expenditures, (3) $10.4 million for stock repurchases, and (4) $10.0 million for repayments of borrowings under our Syndicated Credit Facility.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our discussion below in this Item 3 is based upon the more detailed discussions of our market risk and related matters included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016 under Item 7A of that Form 10-K. Our discussion here focuses on the period ended July 3, 2016, and any material changes from (or other important intervening developments since the time of) the information discussed in that Form 10-K. This discussion should be read in conjunction with that Form 10-K for more detailed and background information.

At July 3, 2016, we recognized a $1.1 million increase in our foreign currency translation adjustment account compared to January 3, 2016, primarily because of the weakening of the U.S. dollar against certain foreign currencies, particularly the Euro and Australian dollar.

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Sensitivity Analysis. For purposes of specific risk analysis, we use sensitivity analysis to measure the impact that market risk may have on the fair values of our market sensitive instruments. To perform sensitivity analysis, we assess the risk of loss in fair values associated with the impact of hypothetical changes in interest rates and foreign currency exchange rates on market sensitive instruments.

Because the debt outstanding under our Syndicated Credit Facility has variable interest rates based on an underlying prime lending rate or LIBOR rate, we do not believe changes in interest rates would have any significant impact on the fair value of that debt instrument. Changes in the underlying prime lending rate or LIBOR rate would, however, impact the amount of our interest expense. For a discussion of these hypothetical impacts on our interest expense, please see the discussion in Item 7A of our Annual Report on Form 10-K for the year ended January 3, 2016.

As of July 3, 2016, a 10% decrease or increase in the levels of foreign currency exchange rates against the U.S. dollar, with all other variables held constant, would result in a decrease in the fair value of our financial instruments of $11.7 million or an increase in the fair value of our financial instruments of $14.3 million, respectively. As the impact of offsetting changes in the fair market value of our net foreign investments is not included in the sensitivity model, these results are not indicative of our actual exposure to foreign currency exchange risk.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was performed under the supervision and with the participation of our management, including our Chairman and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Act”), pursuant to Rule 13a-14(c) under the Act. Based on that evaluation, our Chairman and Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report.

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are subject to various legal proceedings in the ordinary course of business, none of which is required to be disclosed under this Item 1.

ITEM 1A. RISK FACTORS

There are no material changes in risk factors in the second quarter of 2016. For a discussion of risk factors, see Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended January 3, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table contains information with respect to purchases made by or on behalf of the Company, or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during the quarter ended July 3, 2016:

Period(1)	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
April 4-30, 2016		0		N/A		0	$	50,000,000
May 1-31, 2016(3)		329,110	$	16.30		328,833		44,639,862
June 1-30, 2016		329,353	$	15.15		329,353		39,651,157
July 1-3, 2016		0		N/A		0		39,651,157
Total		658,463	$	15.72		658,186	$	39,651,157

⁽¹⁾ The monthly periods identified above correspond to the Company’s fiscal second quarter of 2016, which commenced April 4, 2016 and ended July 3, 2016.

⁽²⁾ In the fourth quarter of 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. In April 2016, the Company amended the share purchase program to authorize the repurchase of up to $50 million of common stock. This amended program has no specific expiration date.

⁽³⁾ Includes 277 shares acquired by the Company from employees to satisfy income tax withholding obligations in connection with the vesting of previous grants of restricted stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

The following exhibits are filed with this report:

EXHIBIT  NUMBER	DESCRIPTION OF EXHIBIT
31.1	Section 302 Certification of Chief Executive Officer.
31.2	Section 302 Certification of Chief Financial Officer.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document
101.DEF	XBRL Taxonomy Definition Linkbase Document

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INTERFACE, INC.
Date: August 11, 2016	By:	/s/ Patrick C. Lynch
		Patrick C. Lynch
		Senior Vice President
		(Principal Financial Officer)

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EXHIBITS INCLUDED HEREWITH

EXHIBIT NUMBER	DESCRIPTION OF EXHIBIT
31.1	Section 302 Certification of Chief Executive Officer
31.2	Section 302 Certification of Chief Financial Officer
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document
101.DEF	XBRL Taxonomy Definition Linkbase Document

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Daniel T. Hendrix, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Interface, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2016
	/s/ Daniel T. Hendrix
	Daniel T. Hendrix
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Patrick C. Lynch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Interface, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2016
	/s/ Patrick C. Lynch
	Patrick C. Lynch
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

I, Daniel T. Hendrix, Chief Executive Officer of Interface, Inc. (the “Company”), certify, pursuant to 18 U.S.C. § 1350 as adopted by § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended July 3, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 11, 2016
	/s/ Daniel T. Hendrix
	Daniel T. Hendrix
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

I, Patrick C. Lynch, Chief Financial Officer of Interface, Inc. (the “Company”), certify, pursuant to 18 U.S.C. § 1350 as adopted by § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended July 3, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 11, 2016
	/s/ Patrick C. Lynch
	Patrick C. Lynch
	Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jul. 03, 2016	Aug. 04, 2016
Document Information [Line Items]
Entity Registrant Name	INTERFACE INC
Entity Central Index Key	0000715787
Trading Symbol	tile
Current Fiscal Year End Date	--01-01
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)		64,807,371
Document Type	10-Q
Document Period End Date	Jul. 03, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false

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Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Jul. 03, 2016	Jan. 03, 2016
CURRENT ASSETS:
Cash and Cash Equivalents	$ 88,364,000	$ 75,696,000
Accounts Receivable, net	128,479,000	130,322,000
Inventories	168,738,000	161,174,000
Prepaid Expenses and Other Current Assets	22,402,000	22,490,000
Deferred Income Taxes	8,509,000	8,726,000
TOTAL CURRENT ASSETS	416,492,000	398,408,000
PROPERTY AND EQUIPMENT, less accumulated depreciation	210,818,000	211,489,000
DEFERRED TAX ASSET	11,073,000	20,110,000
GOODWILL	64,872,000	63,890,000
OTHER ASSETS	61,864,000	62,652,000
TOTAL ASSETS	765,119,000	756,549,000
CURRENT LIABILITIES:
Accounts Payable	45,174,000	52,834,000
Current Portion of Long-Term Debt	13,750,000	11,250,000
Accrued Expenses	79,501,000	88,933,000
TOTAL CURRENT LIABILITIES	138,425,000	153,017,000
LONG-TERM DEBT	210,577,000	202,281,000
DEFERRED INCOME TAXES	9,030,000	10,505,000
OTHER	45,947,000	48,380,000
TOTAL LIABILITIES	403,979,000	414,183,000
SHAREHOLDERS’ EQUITY:
Preferred Stock	0	0
Common Stock	6,481,000	6,570,000
Additional Paid-In Capital	358,320,000	370,327,000
Retained Earnings	127,274,000	100,270,000
Accumulated Other Comprehensive Loss – Foreign Currency Translation Adjustment	(90,443,000)	(91,511,000)
Accumulated Other Comprehensive Loss – Pension Liability	(40,492,000)	(43,290,000)
TOTAL SHAREHOLDERS’ EQUITY	361,140,000	342,366,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 765,119,000	$ 756,549,000

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Consolidated Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
NET SALES	$ 248,207,000	$ 263,637,000	$ 470,761,000	$ 500,541,000
Cost of Sales	149,081,000	162,385,000	285,003,000	313,857,000
GROSS PROFIT ON SALES	99,126,000	101,252,000	185,758,000	186,684,000
Selling, General and Administrative Expenses	67,328,000	68,033,000	132,933,000	132,065,000
OPERATING INCOME	31,798,000	33,219,000	52,825,000	54,619,000
Interest Expense	1,590,000	1,790,000	3,109,000	3,678,000
Other Expense (Income)	(116,000)	(446,000)	333,000	826,000
INCOME BEFORE INCOME TAX EXPENSE	30,324,000	31,875,000	49,383,000	50,115,000
Income Tax Expense	9,667,000	10,153,000	15,832,000	16,071,000
NET INCOME	$ 20,657,000	$ 21,722,000	$ 33,551,000	$ 34,044,000
Earnings Per Share – Basic (in dollars per share)	$ 0.32	$ 0.33	$ 0.51	$ 0.51
Earnings Per Share – Diluted (in dollars per share)	$ 0.32	$ 0.33	$ 0.51	$ 0.51
Common Shares Outstanding – Basic (in shares)	65,367	65,995	65,526	66,208
Common Shares Outstanding – Diluted (in shares)	65,405	66,044	65,564	66,253

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Net Income	$ 20,657,000	$ 21,722,000	$ 33,551,000	$ 34,044,000
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment	(8,311,000)	5,060,000	1,068,000	(20,239,000)
Other Comprehensive Income (Loss), Pension Liability Adjustment	2,190,000	(2,557,000)	2,798,000	645,000
Comprehensive Income	$ 14,536,000	$ 24,225,000	$ 37,417,000	$ 14,450,000

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Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015
OPERATING ACTIVITIES:
Net Income	$ 33,551,000	$ 34,044,000
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Depreciation and Amortization	14,960,000	15,539,000
Stock Compensation Amortization Expense	2,349,000	9,100,000
Deferred Income Taxes and Other	4,490,000	9,287,000
Working Capital Changes:
Accounts Receivable	1,668,000	15,209,000
Inventories	(6,169,000)	(27,150,000)
Prepaid Expenses and Other Current Assets	(574,000)	(2,328,000)
Accounts Payable and Accrued Expenses	(20,360,000)	(2,841,000)
CASH PROVIDED BY OPERATING ACTIVITIES:	29,915,000	50,860,000
INVESTING ACTIVITIES:
Capital Expenditures	(12,752,000)	(12,126,000)
Other	1,585,000	(462,000)
CASH USED IN INVESTING ACTIVITIES:	(11,167,000)	(12,588,000)
FINANCING ACTIVITIES:
Repayments of Long-Term Debt	(10,000,000)	(3,000,000)
Borrowing of Long-Term Debt	20,167,000	0
Proceeds from Issuance of Common Stock	0	359,000
Repurchase of Common Stock	(10,443,000)	(10,469,000)
Dividends Paid	(6,547,000)	(5,300,000)
CASH USED IN FINANCING ACTIVITIES:	(6,823,000)	(18,410,000)
Net Cash Provided by (Used in) Operating, Investing and	11,925,000	19,862,000
Effect of Exchange Rate Changes on Cash	743,000	(2,937,000)
CASH AND CASH EQUIVALENTS:
Net Change During the Period	12,668,000	16,925,000
Balance at Beginning of Period	75,696,000	54,896,000
Balance at End of Period	$ 88,364,000	$ 71,821,000

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Note 1 - Condensed Footnotes

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Condensed Footnotes [Text Block]

NOTE 1 – CONDENSED FOOTNOTES

As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end audited consolidated financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended January 3, 2016, as filed with the Commission.

The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The January 3, 2016, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The first quarter of 2016 was comprised of 13 weeks, while the first quarter of 2015 was comprised of 14 weeks. Each of the second quarters of 2016 and 2015 was comprised of 13 weeks.

Certain prior period amounts have been reclassified to conform to the current period presentation.

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Note 2 - Inventories

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 2 – INVENTORIES

Inventories are summarized as follows:

	July 3, 2016		January 3, 2016
	(In thousands)
Finished Goods	$	112,304	$	101,697
Work in Process		9,710		9,865
Raw Materials		46,724		49,612
	$	168,738	$	161,174

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Note 3 - Earnings Per Share

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 3 – EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below.  Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings.

The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. The following tables show distributed and undistributed earnings:

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Earnings Per Share :
Basic Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04	$	0.10	$	0.08
Undistributed Earnings		0.27		0.29		0.41		0.43
Total	$	0.32	$	0.33	$	0.51	$	0.51
Diluted Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04	$	0.10	$	0.08
Undistributed Earnings		0.27		0.29		0.41		0.43
Total	$	0.32	$	0.33	$	0.51	$	0.51
Basic earnings per share	$	0.32	$	0.33	$	0.51	$	0.51
Diluted earnings per share	$	0.32	$	0.33	$	0.51	$	0.51

The following tables present net income that was attributable to participating securities:

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In millions)
Net Income	$	0.2	$	0.5	$	0.3	$	0.8

The weighted average shares outstanding for basic and diluted EPS were as follows:

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In thousands)
Weighted Average Shares Outstanding		64,779		64,497		64,938		64,710
Participating Securities		588		1,498		588		1,498
Shares for Basic Earnings Per Share		65,367		65,995		65,526		66,208
Dilutive Effect of Stock Options		38		49		38		45
Shares for Diluted Earnings Per Share		65,405		66,044		65,564		66,253

For all periods presented, there were no options or participating securities excluded from the computation of diluted EPS.

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Note 4 - Long-term Debt

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 4 – LONG-TERM DEBT

Syndicated Credit Facility

The Company has a syndicated credit facility (the “Facility”) pursuant to which the lenders provide to the Company and certain of its subsidiaries a multicurrency revolving credit facility and provide to the Company a term loan. The facility matures in October of 2019. Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on LIBOR-based loans and fees for letters of credit are charged at varying rates computed by applying a margin over the applicable LIBOR rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

As of July 3, 2016, the Company had outstanding $192.5 million of term loan borrowing and $31.8 million of revolving loan borrowings outstanding under the Facility, and had $4.0 million in letters of credit outstanding under the Facility. As of July 3, 2016, the weighted average interest rate on borrowings outstanding under the Facility was 2.4%.

Beginning in the fourth quarter of 2015, the Company became required to make quarterly amortization payments of the term loan borrowing. The amortization payments are due on the last day of the calendar quarter. The payment amount for each of the first three quarters of 2016 is $2.5 million per quarter. The quarterly amortization payment amount increases to $3.75 million on December 31, 2016.

The Company is currently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future.

Other Lines of Credit

Subsidiaries of the Company have an aggregate of the equivalent of $14.7 million of other lines of credit available at interest rates ranging from 2.5% to 6.5%. As of July 3, 2016, there were no borrowings outstanding under these lines of credit. 

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Note 5 - Stock-based Compensation

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 5 – STOCK-BASED COMPENSATION

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award.

All outstanding stock options vested prior to the end of 2013, and therefore there was no stock option compensation expense in the first six months of 2015 or 2016.

As of July 3, 2016, there were 87,500 stock options outstanding and exercisable, at an average exercise price of $8.75 per share. There were no stock options granted in 2016 or 2015. There were no exercises or forfeitures of stock options in the first six months of 2016. The aggregate intrinsic value of the outstanding and exercisable stock options was $0.6 million as of July 3, 2016.

Restricted Stock Awards

During the six months ended July 3, 2016 and July 5, 2015, the Company granted restricted stock awards for 266,500 and 597,000 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient 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 the vesting date. Additionally, certain awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $1.7 million and $9.1 million for the six months ended July 3, 2016 and July 5, 2015, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of July 3, 2016, as well as activity during the six months then ended:

	Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding at January 3, 2016		1,470,000	$	17.92
Granted		266,500		17.21
Vested		975,000		18.53
Forfeited or canceled		174,000		16.71
Outstanding at July 3, 2016		587,500	$	16.95

As of July 3, 2016, the unrecognized total compensation cost related to unvested restricted stock was $6.4 million. That cost is expected to be recognized by the end of 2019.

Performance Share Awards

In 2016, 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 one to three years, subject to 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 following table summarizes the performance shares outstanding as of July 3, 2016, as well as the activity during the six months then ended:

	Performance Shares
Outstanding at January 3, 2016		0
Granted		435,500
Vested		0
Forfeited or canceled		0
Outstanding at July 3, 2016		435,500

The weighted average grant date fair value of the performance shares awarded in the first six month of 2016 was $17.23 per share. Compensation expense related to the performance shares for the six months ended July 3, 2016 was $0.6 million. Unrecognized compensation expense related to these performance shares was approximately $6.9 million as of July 3, 2016. No performance shares were granted or outstanding during 2015.

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Note 6 - Employee Benefit Plans

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 6 – EMPLOYEE BENEFIT PLANS

The following tables provide the components of net periodic benefit cost for the three-month and six-month periods ended July 3, 2016 and July 5, 2015, respectively:

	Three Months Ended						Six Months Ended
Defined Benefit Retirement Plan (Europe)	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
	(In thousands)						(In thousands)
Service cost	$	263		$	265		$	521		$	534
Interest cost		1,728			2,111			3,448			4,204
Expected return on assets		(2,007	)		(2,265	)		(4,004	)		(4,512	)
Amortization of prior service costs		(9	)		9			18			17
Recognized net actuarial losses		184			242			368			481
Net periodic benefit cost	$	159		$	362		$	351		$	724

	Three Months Ended				Six Months Ended
Salary Continuation Plan (SCP)	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
	(In thousands)				(In thousands)
Service cost	$	110	$	148	$	220	$	297
Interest cost		317		278		634		556
Amortization of loss		203		131		405		261
Net periodic benefit cost	$	630	$	557	$	1,259	$	1,114

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Note 7 - Segment Information

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 7 – SEGMENT INFORMATION

Based on applicable accounting standards, the Company has determined that it has three operating segments – namely, the Americas, Europe and Asia-Pacific geographic regions. Pursuant to accounting standards, the Company has aggregated the three operating segments into one reporting segment because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment.

While the Company operates as one reporting segment for the reasons discussed, included below is selected information on our operating segments.

	AMERICAS		EUROPE		ASIA- PACIFIC		TOTAL
	(in thousands)
Three Months Ended July 3, 2016:
Net Sales	$	148,761	$	61,264	$	38,182	$	248,207
Depreciation and amortization		3,611		1,297		2,169		7,077
Total assets		244,313		256,381		187,705		688,399
Three Months Ended July 5, 2015:
Net Sales	$	158,243	$	66,273	$	39,121	$	263,637
Depreciation and amortization		3,879		1,231		2,297		7,407
Six Months Ended July 3, 2016:
Net Sales	$	279,177	$	119,222	$	72,362	$	470,761
Depreciation and amortization		7,268		2,571		4,385		14,224
Six Months Ended July 5, 2015:
Net Sales	$	297,590	$	130,780	$	72,171	$	500,541
Depreciation and amortization		7,820		2,436		4,662		14,918

A reconciliation of the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows:

	Three Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	7,077	$	7,407
Corporate depreciation and amortization		366		343
Reported depreciation and amortization	$	7,443	$	7,750

	Six Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	14,224	$	14,918
Corporate depreciation and amortization		736		621
Reported depreciation and amortization	$	14,960	$	15,539

ASSETS	July 3, 2016
	(In thousands)
Total segment assets	$	688,399
Corporate assets and eliminations		76,720
Reported total assets	$	765,119

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Note 8 - Supplemental Cash Flow Information

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

NOTE 8 – SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest amounted to $2.5 million and $3.3 million for the six months ended July 3, 2016 and July 5, 2015, respectively. Income tax payments amounted to $7.3 million and $3.5 million for the six months ended July 3, 2016 and July 5, 2015, respectively.

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Note 9 - Recently Issued Accounting Pronouncements

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

NOTE 9 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard regarding recognition of revenue from contracts with customers. In summary, the core principle of this standard is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance for this standard was initially effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in August of 2015, the FASB delayed the effective date of the standard for one full year. While the Company is currently reviewing this new standard, it does not believe that the adoption of this standard will have a material impact on its financial condition or results of operations.

In January 2015, the FASB issued an accounting standard which eliminates the concept of extraordinary items from generally accepted accounting principles. The standard does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The standard is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The adoption of this standard did not have any impact on our financial condition or results of operations.

In February 2015, the FASB issued an accounting standard which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The new accounting standard is effective for annual and interim periods in fiscal years beginning after December 15, 2015. The adoption of this standard did not have any impact on our financial condition or results of operations.

In April 2015, the FASB issued an accounting standard to simplify the presentation of debt issuance costs. This accounting standard requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. In August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements as an asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The guidance in these accounting standards is to be applied retrospectively and is effective for interim and annual reporting periods beginning after December 15, 2015. The Company’s debt issuance costs relate to its Syndicated Credit Facility and, as a result, these costs have been, and will continue to be, included as an asset on the balance sheet. Thus, the adoption of this standard did not have any impact on our financial statements.

In July 2015, the FASB issued an accounting standard to simplify the accounting for inventory. This standard requires all inventories to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this new standard and does not expect it to have a significant impact on its consolidated financial statements.

In November 2015, the FASB issued an accounting standard which requires deferred tax assets and liabilities, as well as any related valuation allowance, to be classified as noncurrent on the balance sheet. As a result, each jurisdiction will only have one net noncurrent deferred tax asset or liability. This standard does not change the existing requirement that only permits offsetting within a jurisdiction. The amendments in the standard may be applied either prospectively or retrospectively to all prior periods presented. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. As this standard impacts only presentation, the Company does not expect it to have any significant effect on its ongoing financial reporting.

In February 2016, the FASB issued a new accounting standard regarding leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of adoption of the new standard on our consolidated financial statements

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Note 10 - Income Taxes

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 10 – INCOMETAXES

Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first six months of 2016, the Company decreased its liability for unrecognized tax benefits by $0.2 million. As of July 3, 2016, the Company had accrued approximately $28.1 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of July 3, 2016 reflects a reduction for $14.2 million of these unrecognized tax benefits.

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Note 11 - Items Reclassified from Other Comprehensive Income

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Reclassifications [Text Block]

NOTE 11 – ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME

During the first six months of 2016, the Company did not reclassify any significant amounts out of accumulated other comprehensive income. The reclassifications that occurred in that period were primarily comprised of $0.8 million related to the Company’s defined retirement benefit plan and salary continuation plan. These reclassifications were included in the selling, general and administrative expenses line item of the Company’s consolidated condensed statement of operations.

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Note 12 - Repurchase of Common Stock

6 Months Ended

Jul. 03, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 12 – REPURCHASE OF COMMON STOCK

In the fourth quarter of 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. In the second quarter of 2016, the Company amended the share purchase program to authorize the repurchase of up to $50 million of common stock. This amended program has no specific expiration date. During the first six months of 2016, the Company repurchased and retired 662,500 shares of common stock at a weighted average purchase price of $15.73 per share.

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Note 2 - Inventories (Tables)

6 Months Ended

Jul. 03, 2016

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	July 3, 2016		January 3, 2016
	(In thousands)
Finished Goods	$	112,304	$	101,697
Work in Process		9,710		9,865
Raw Materials		46,724		49,612
	$	168,738	$	161,174

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Note 3 - Earnings Per Share (Tables)

6 Months Ended

Jul. 03, 2016

Notes Tables

Distributed And Undistributed Earnings [Table Text Block]

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
Earnings Per Share :
Basic Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04	$	0.10	$	0.08
Undistributed Earnings		0.27		0.29		0.41		0.43
Total	$	0.32	$	0.33	$	0.51	$	0.51
Diluted Earnings Per Share:
Distributed Earnings	$	0.05	$	0.04	$	0.10	$	0.08
Undistributed Earnings		0.27		0.29		0.41		0.43
Total	$	0.32	$	0.33	$	0.51	$	0.51
Basic earnings per share	$	0.32	$	0.33	$	0.51	$	0.51
Diluted earnings per share	$	0.32	$	0.33	$	0.51	$	0.51

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In millions)
Net Income	$	0.2	$	0.5	$	0.3	$	0.8

	Three Months Ended				Six Months Ended
	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In thousands)
Weighted Average Shares Outstanding		64,779		64,497		64,938		64,710
Participating Securities		588		1,498		588		1,498
Shares for Basic Earnings Per Share		65,367		65,995		65,526		66,208
Dilutive Effect of Stock Options		38		49		38		45
Shares for Diluted Earnings Per Share		65,405		66,044		65,564		66,253

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Note 5 - Stock-based Compensation (Tables)

6 Months Ended

Jul. 03, 2016

Notes Tables

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding at January 3, 2016		1,470,000	$	17.92
Granted		266,500		17.21
Vested		975,000		18.53
Forfeited or canceled		174,000		16.71
Outstanding at July 3, 2016		587,500	$	16.95

Schedule of Nonvested Performance-based Units Activity [Table Text Block]

	Performance Shares
Outstanding at January 3, 2016		0
Granted		435,500
Vested		0
Forfeited or canceled		0
Outstanding at July 3, 2016		435,500

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Note 6 - Employee Benefit Plans (Tables)

6 Months Ended

Jul. 03, 2016

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	Three Months Ended						Six Months Ended
Defined Benefit Retirement Plan (Europe)	July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
	(In thousands)						(In thousands)
Service cost	$	263		$	265		$	521		$	534
Interest cost		1,728			2,111			3,448			4,204
Expected return on assets		(2,007	)		(2,265	)		(4,004	)		(4,512	)
Amortization of prior service costs		(9	)		9			18			17
Recognized net actuarial losses		184			242			368			481
Net periodic benefit cost	$	159		$	362		$	351		$	724

	Three Months Ended				Six Months Ended
Salary Continuation Plan (SCP)	July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
	(In thousands)				(In thousands)
Service cost	$	110	$	148	$	220	$	297
Interest cost		317		278		634		556
Amortization of loss		203		131		405		261
Net periodic benefit cost	$	630	$	557	$	1,259	$	1,114

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Note 7 - Segment Information (Tables)

6 Months Ended

Jul. 03, 2016

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	AMERICAS		EUROPE		ASIA- PACIFIC		TOTAL
	(in thousands)
Three Months Ended July 3, 2016:
Net Sales	$	148,761	$	61,264	$	38,182	$	248,207
Depreciation and amortization		3,611		1,297		2,169		7,077
Total assets		244,313		256,381		187,705		688,399
Three Months Ended July 5, 2015:
Net Sales	$	158,243	$	66,273	$	39,121	$	263,637
Depreciation and amortization		3,879		1,231		2,297		7,407
Six Months Ended July 3, 2016:
Net Sales	$	279,177	$	119,222	$	72,362	$	470,761
Depreciation and amortization		7,268		2,571		4,385		14,224
Six Months Ended July 5, 2015:
Net Sales	$	297,590	$	130,780	$	72,171	$	500,541
Depreciation and amortization		7,820		2,436		4,662		14,918

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block]

	Three Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	7,077	$	7,407
Corporate depreciation and amortization		366		343
Reported depreciation and amortization	$	7,443	$	7,750

	Six Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	14,224	$	14,918
Corporate depreciation and amortization		736		621
Reported depreciation and amortization	$	14,960	$	15,539

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

ASSETS	July 3, 2016
	(In thousands)
Total segment assets	$	688,399
Corporate assets and eliminations		76,720
Reported total assets	$	765,119

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Note 2 - Inventories Summary (Details) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Finished Goods	$ 112,304	$ 101,697
Work in Process	9,710	9,865
Raw Materials	46,724	49,612
Inventory, net	$ 168,738	$ 161,174

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Note 3 - Earnings Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	0	0

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Note 3 - Distributed and Undistributed Earnings (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Basic Earnings Per Share:
Distributed Earnings (in dollars per share)	$ 0.05	$ 0.04	$ 0.10	$ 0.08
Undistributed Earnings (in dollars per share)	0.27	0.29	0.41	0.43
Total (in dollars per share)	0.32	0.33	0.51	0.51
Diluted Earnings Per Share:
Distributed Earnings (in dollars per share)	0.05	0.04	0.10	0.08
Undistributed Earnings (in dollars per share)	0.27	0.29	0.41	0.43
Total (in dollars per share)	0.32	0.33	0.51	0.51
Basic earnings per share (in dollars per share)	0.32	0.33	0.51	0.51
Diluted earnings per share (in dollars per share)	$ 0.32	$ 0.33	$ 0.51	$ 0.51

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Note 3 - Calculation of Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Participating Securities [Member]
Net Income	$ 0.2	$ 0.5	$ 0.3	$ 0.8
Weighted Average Shares Outstanding (in shares)	64,779	64,497	64,938	64,710
Participating Securities (in shares)	588	1,498	588	1,498
Shares for Basic Earnings Per Share (in shares)	65,367	65,995	65,526	66,208
Dilutive Effect of Stock Options (in shares)	38	49	38	45
Shares for Diluted Earnings Per Share (in shares)	65,405	66,044	65,564	66,253

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Note 4 - Long-term Debt (Details Textual) - USD ($)	6 Months Ended
	Jul. 03, 2016	Apr. 03, 2016
Term Loan A [Member] | Due By the End of the Second Quarter 2016 [Member]
Initial Amortization Payment		$ 2,500,000
Term Loan A [Member] | Due By the Third Quarter 2016 [Member]
Initial Amortization Payment		$ 2,500,000
Term Loan A [Member] | Due By the End of the First Quarter 2016 [Member]
Initial Amortization Payment	$ 2,500,000
Term Loan A [Member] | Syndication Facility Agreement [Member]
Long-term Line of Credit	192,500,000
Term Loan A [Member]
Subsequent Amortization Payment	$ 3,750,000
Other Line Of Credit [Member] | Minimum [Member]
Line of Credit Facility, Interest Rate During Period	2.50%
Other Line Of Credit [Member] | Maximum [Member]
Line of Credit Facility, Interest Rate During Period	6.50%
Other Line Of Credit [Member]
Long-term Line of Credit	$ 0
Line of Credit Facility, Maximum Borrowing Capacity	14,700,000
Syndication Facility Agreement [Member]
Letters of Credit Outstanding, Amount	$ 4,000,000
Long-term Debt, Weighted Average Interest Rate	2.40%
Revolving Credit Facility [Member]
Long-term Line of Credit	$ 31,800,000

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Note 5 - Stock-based Compensation (Details Textual) - USD ($)	6 Months Ended		12 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jan. 03, 2016
Employee Stock Option [Member]
Allocated Share-based Compensation Expense	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	87,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 8.75
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 600,000
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted Stock [Member]
Allocated Share-based Compensation Expense	$ 1,700,000	$ 9,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	266,500	597,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 6,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 17.21
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	587,500		1,470,000
Performance Shares [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Performance Shares [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Performance Shares [Member]
Allocated Share-based Compensation Expense	$ 600,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	435,500		0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 6,900,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Shares Issued During Exercise of Instrument, Upper Limit, Percentage	200.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 17.23
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	435,500		0

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Note 5 - Restricted Stock Outstanding (Details) - Restricted Stock [Member] - $ / shares	6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015
Outstanding at January 3, 2016 (in shares)	1,470,000
Outstanding at January 3, 2016 (in dollars per share)	$ 17.92
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	266,500	597,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 17.21
Vested (in shares)	975,000
Vested (in dollars per share)	$ 18.53
Forfeited or canceled (in shares)	174,000
Forfeited or canceled (in dollars per share)	$ 16.71
Outstanding at July 3, 2016 (in shares)	587,500
Outstanding at July 3, 2016 (in dollars per share)	$ 16.95

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Note 5 - Performance-Based Restricted Units Oustanding (Details) - Performance Shares [Member] - shares	6 Months Ended	12 Months Ended
	Jul. 03, 2016	Jan. 03, 2016
Outstanding at January 3, 2016 (in shares)	0
Granted (in shares)	435,500	0
Vested (in shares)	0
Forfeited or canceled (in shares)	0
Outstanding at July 3, 2016 (in shares)	435,500	0

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Note 6 - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Defined Benefit Retirement Plan Europe [Member]
Service cost	$ 263	$ 265	$ 521	$ 534
Interest cost	1,728	2,111	3,448	4,204
Expected return on assets	(2,007)	(2,265)	(4,004)	(4,512)
Amortization of prior service cost	(9)	9	18	17
Recognized net actuarial losses	184	242	368	481
Net periodic benefit cost	159	362	351	724
Domestic SCP [Member]
Service cost	110	148	220	297
Interest cost	317	278	634	556
Net periodic benefit cost	630	557	1,259	1,114
Amortization of loss	$ 203	$ 131	$ 405	$ 261

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Note 7 - Segment Information (Details Textual)	6 Months Ended
	Jul. 03, 2016
Number of Operating Segments	3
Number of Reportable Segments	1

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Note 7 - Operating Segment Summary Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015	Jan. 03, 2016
Operating Segments [Member] | Americas [Member]
Net Sales	$ 148,761,000	$ 158,243,000	$ 279,177,000	$ 297,590,000
Depreciation and Amortization	3,611,000	3,879,000	7,268,000	7,820,000
Assets	244,313,000		244,313,000
Operating Segments [Member] | Europe [Member]
Net Sales	61,264,000	66,273,000	119,222,000	130,780,000
Depreciation and Amortization	1,297,000	1,231,000	2,571,000	2,436,000
Assets	256,381,000		256,381,000
Operating Segments [Member] | Asia Pacific [Member]
Net Sales	38,182,000	39,121,000	72,362,000	72,171,000
Depreciation and Amortization	2,169,000	2,297,000	4,385,000	4,662,000
Assets	187,705,000		187,705,000
Operating Segments [Member]
Net Sales	248,207,000	263,637,000	470,761,000	500,541,000
Depreciation and Amortization	7,077,000	7,407,000	14,224,000	14,918,000
Assets	688,399,000		688,399,000
Net Sales	248,207,000	263,637,000	470,761,000	500,541,000
Depreciation and Amortization	7,443,000	$ 7,750,000	14,960,000	$ 15,539,000
Assets	$ 765,119,000		$ 765,119,000		$ 756,549,000

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Note 7 - Reconciliation of Segment Depreciation and Amortization (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Operating Segments [Member]
Depreciation and Amortization	$ 7,077,000	$ 7,407,000	$ 14,224,000	$ 14,918,000
Corporate, Non-Segment [Member]
Depreciation and Amortization	366,000	343,000	736,000	621,000
Depreciation and Amortization	$ 7,443,000	$ 7,750,000	$ 14,960,000	$ 15,539,000

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Note 7 - Reconciliation of Segment Assets (Details) - USD ($)	Jul. 03, 2016	Jan. 03, 2016
Operating Segments [Member]
Assets	$ 688,399,000
Corporate, Non-Segment [Member]
Assets	76,720,000
Assets	$ 765,119,000	$ 756,549,000

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Note 8 - Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015
Interest Paid	$ 2.5	$ 3.3
Income Taxes Paid	$ 7.3	$ 3.5

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Note 10 - Income Taxes (Details Textual) $ in Millions	6 Months Ended
	Jul. 03, 2016 USD ($)
Unrecognized Tax Benefits, Period Increase (Decrease)	$ (0.2)
Unrecognized Tax Benefits	28.1
Increase (Decrease) in Deferred Tax Assets	$ 14.2

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Note 11 - Items Reclassified from Other Comprehensive Income (Details Textual) $ in Millions	6 Months Ended
	Jul. 03, 2016 USD ($)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax	$ 0.8

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Note 12 - Repurchase of Common Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jul. 03, 2016	Dec. 28, 2014
Stock Repurchase Program, Number of Shares Authorized to be Repurchased		500,000
Stock Repurchase Program, Authorized Amount	$ 50
Treasury Stock, Shares, Acquired	662,500
Treasury Stock Acquired, Average Cost Per Share	$ 15.73