INTERFACE INC, 10-Q filed on 5/7/2024
Quarterly Report
v3.24.1.u1
Cover Page - shares
 3 Months Ended
Mar. 31, 2024
May 02, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 001-33994  
Entity Registrant Name INTERFACE INC  
Entity Incorporation, State or Country Code GA  
Entity Tax Identification Number 58-1451243  
Entity Address, Address Line One 1280 West Peachtree Street  
Entity Address, City or Town Atlanta  
Entity Address, State or Province GA  
Entity Address, Postal Zip Code 30309  
City Area Code 770  
Local Phone Number 437-6800  
Title of 12(b) Security Common Stock, $0.10 Par Value Per Share  
Trading Symbol TILE  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   58,242,833
Entity Central Index Key 0000715787  
Amendment Flag false  
Current Fiscal Year End Date --12-29  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
v3.24.1.u1
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 89,774 $ 110,498
Accounts receivable, net 147,185 163,386
Inventories, net 296,249 279,079
Prepaid expenses and other current assets 32,853 30,895
Total current assets 566,061 583,858
Property, plant and equipment, net 280,333 291,140
Operating lease right-of-use assets 83,766 87,519
Deferred tax asset 21,428 21,721
Goodwill and intangible assets, net 156,951 161,703
Other assets 84,953 84,154
Total assets 1,193,492 1,230,095
Current liabilities    
Accounts payable 74,503 62,912
Accrued expenses 112,126 130,890
Current portion of operating lease liabilities 12,574 12,347
Current portion of long-term debt 8,523 8,572
Total current liabilities 207,726 214,721
Long-term debt 383,261 408,641
Operating lease liabilities 74,286 78,269
Deferred income taxes 32,098 33,832
Other long-term liabilities 67,573 68,685
Total liabilities 764,944 804,148
Commitments and contingencies (Note 14)
Shareholders’ equity    
Preferred stock, par value $1.00 per share; 5,000 shares authorized; none issued or outstanding at March 31, 2024 and December 31, 2023 0 0
Common stock, par value $0.10 per share; 120,000 shares authorized; 58,273 and 58,112 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 5,827 5,811
Additional paid-in capital 252,538 252,909
Retained earnings 334,423 320,833
Accumulated other comprehensive loss – foreign currency translation (130,682) (119,590)
Accumulated other comprehensive loss – pension liability (33,558) (34,016)
Total shareholders’ equity 428,548 425,947
Total liabilities and shareholders’ equity $ 1,193,492 $ 1,230,095
v3.24.1.u1
Consolidated Condensed Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Income Statement [Abstract]    
Net sales $ 289,743 $ 295,792
Cost of sales 179,338 199,919
Gross profit 110,405 95,873
Selling, general and administrative expenses 85,959 86,254
Restructuring, asset impairment and other charges 0 142
Operating income 24,446 9,477
Interest expense 6,423 8,505
Other (income) expense, net (976) 1,500
Income (loss) before income tax expense 18,999 (528)
Income tax expense 4,820 186
Net income (loss) $ 14,179 $ (714)
Earnings (loss) per share – basic (in dollars per share) $ 0.24 $ (0.01)
Earnings (loss) per share – diluted (in dollars per share) $ 0.24 $ (0.01)
Common shares outstanding – basic (in shares) 58,238 58,079
Common shares outstanding – diluted (in shares) 58,714 58,079
v3.24.1.u1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 14,179 $ (714)
Other comprehensive (loss) income, after tax:    
Foreign currency translation adjustment (11,092) 4,930
Reclassification from accumulated other comprehensive loss – discontinued cash flow hedge 0 299
Pension liability adjustment 458 (279)
Other comprehensive (loss) income (10,634) 4,950
Comprehensive income $ 3,545 $ 4,236
v3.24.1.u1
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
OPERATING ACTIVITIES:    
Net income (loss) $ 14,179 $ (714)
Adjustments to reconcile net income (loss) to cash provided by operating activities:    
Depreciation and amortization 9,616 9,991
Share-based compensation expense 3,915 3,004
Deferred income taxes and other (4,386) 599
Amortization of acquired intangible assets 1,297 1,283
Working capital changes:    
Accounts receivable 13,837 35,791
Inventories (20,477) (5,306)
Prepaid expenses and other current assets (2,193) (16,148)
Accounts payable and accrued expenses (3,169) 1,084
Cash provided by operating activities 12,619 29,584
INVESTING ACTIVITIES:    
Capital expenditures (4,033) (5,712)
Proceeds from sale of property, plant and equipment 1,040 0
Insurance proceeds from property casualty loss 1,000 0
Cash used in investing activities (1,993) (5,712)
FINANCING ACTIVITIES:    
Repayments of long-term debt (34,783) (53,225)
Borrowing of long-term debt 10,000 34,000
Tax withholding payments for share-based compensation (4,271) (1,167)
Dividends paid (6) 0
Finance lease payments (716) (643)
Cash used in financing activities (29,776) (21,035)
Net cash (used in) provided by operating, investing and financing activities (19,150) 2,837
Effect of exchange rate changes on cash (1,574) 872
CASH AND CASH EQUIVALENTS:    
Net (decrease) increase (20,724) 3,709
Balance, beginning of period 110,498 97,564
Balance, end of period $ 89,774 $ 101,273
v3.24.1.u1
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 1.00 $ 1.00
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 120,000,000 120,000,000
Common stock, shares issued (in shares) 58,273,000 58,112,000
Common stock, shares outstanding (in shares) 58,273,000 58,112,000
v3.24.1.u1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
References in this Quarterly Report on Form 10-Q to “Interface,” “the Company,” “we,” “our,” “ours” and “us” refer to Interface, Inc. and its subsidiaries or any of them, unless the context requires otherwise.
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 financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, 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 necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature unless otherwise disclosed. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 31, 2023, 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 (“GAAP”).
The three-month periods ended March 31, 2024 and April 2, 2023 both include 13 weeks.
Risks and Uncertainties
Global economic challenges, including the impacts of the Russia-Ukraine and Israel-Hamas wars, inflation, supply chain disruptions, and the slow macro environment in China could cause economic uncertainty and volatility. In connection with the Cyber Event discussed below, security breaches may expose us to fines and other liabilities to the extent sensitive data stored in our IT systems, including data related to customers, suppliers or employees, are misappropriated. The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein. These uncertainties could result in a future material adverse effect to the amounts reported within the Company’s consolidated condensed financial statements if actual results differ from these estimates.
Cybersecurity Event
On November 20, 2022, we discovered a cybersecurity attack, perpetrated by unauthorized third parties, affecting our IT systems (the “Cyber Event”). In response to this Cyber Event, we notified law enforcement and took steps to supplement existing security monitoring, including scanning and protective measures. The investigation of the Cyber Event by our forensic experts was completed during fiscal year 2023.
Recently Issued Accounting Pronouncements – Not Yet Adopted
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU requires public entities on an annual basis to disclose a rate reconciliation with explicit categories, as outlined in the ASU, and requires additional disclosures for reconciling items that meet certain quantitative thresholds. Other disclosures include disaggregation of income taxes paid, pre-tax income, and income tax expense. The new guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its income tax disclosures.
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU requires additional disclosures in annual and interim periods for significant segment expenses included in the measure of segment profit provided to the chief operating decision maker (“CODM”). Disclosure of other segment items by reportable segment as well as a description of its composition is also required. The new guidance is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its segment disclosures.
Risks and Uncertainties
Risks and Uncertainties
Global economic challenges, including the impacts of the Russia-Ukraine and Israel-Hamas wars, inflation, supply chain disruptions, and the slow macro environment in China could cause economic uncertainty and volatility. In connection with the Cyber Event discussed below, security breaches may expose us to fines and other liabilities to the extent sensitive data stored in our IT systems, including data related to customers, suppliers or employees, are misappropriated. The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein. These uncertainties could result in a future material adverse effect to the amounts reported within the Company’s consolidated condensed financial statements if actual results differ from these estimates.
v3.24.1.u1
Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenues [Abstract]  
Revenue Recognition REVENUE RECOGNITION
The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material. A summary of these revenue streams, as a percentage of net sales, for the three months ended March 31, 2024 and April 2, 2023 is as follows:
Three Months Ended
March 31, 2024April 2, 2023
Revenue from the sale of flooring material
99 %98 %
Revenue from installation of flooring material
1 %2 %
Disaggregation of Revenue
For the three months ended March 31, 2024 and April 2, 2023, revenue from the Company’s customers is broken down by geography as follows:
Three Months Ended
GeographyMarch 31, 2024April 2, 2023
Americas58.6 %57.2 %
Europe31.6 %32.0 %
Asia-Pacific9.8 %10.8 %
Revenue from the Company’s customers in the Americas corresponds to the AMS reportable segment, and the EAAA reportable segment includes revenue from the Europe and Asia-Pacific geographies. See Note 10 entitled “Segment Information” for additional information.
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Inventories
 3 Months Ended
Mar. 31, 2024
Inventory Disclosure [Abstract]  
Inventories INVENTORIES
Inventories are summarized as follows:
March 31, 2024December 31, 2023
(in thousands)
Finished goods$218,706 $201,821 
Work-in-process23,107 20,892 
Raw materials54,436 56,366 
Inventories, net$296,249 $279,079 
v3.24.1.u1
Earnings Per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share EARNINGS PER SHARE
The Company computes basic earnings (loss) per share (“EPS”) by dividing net income (loss) 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 (loss).
The Company includes all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding for basic EPS as these awards are considered participating securities. Any unvested stock awards considered non-participating securities are included in 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 table shows the computation of basic and diluted EPS:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands, except per share data)
Numerator:
Net income (loss)$14,179 $(714)
Less: distributed and undistributed earnings available to participating securities(150)(9)
Distributed and undistributed earnings (loss) available to common shareholders$14,029 $(723)
 
Denominator:
Weighted average shares outstanding57,623 57,177 
Participating securities615 902 
Shares for basic EPS58,238 58,079 
Dilutive effect of non-participating securities476 — 
Shares for diluted EPS58,714 58,079 
 
Basic EPS$0.24 $(0.01)
Diluted EPS$0.24 $(0.01)
For the three months ended March 31, 2024 and April 2, 2023, 1,049,405 and 1,728,579 non-participating securities that could potentially dilute basic EPS in the future, respectively, consisting of restricted share units and performance shares, were excluded from the computation of diluted EPS as these securities would have been antidilutive for the respective periods.
v3.24.1.u1
Long-Term Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Long-Term Debt LONG-TERM DEBT
Long-term debt consisted of the following:
March 31, 2024December 31, 2023
Outstanding Principal
Interest Rate(1)
Outstanding Principal
Interest Rate(1)
(in thousands)(in thousands)
Syndicated Credit Facility(2):
Term loan borrowings$95,988 6.26 %$121,658 6.61 %
5.50% Senior Notes due 2028300,000 5.50 %300,000 5.50 %
 
Total debt395,988 421,658 
Less: Unamortized debt issuance costs(4,204)(4,445)
 
Total debt, net391,784 417,213 
Less: Current portion of long-term debt(8,523)(8,572)
 
Total long-term debt, net$383,261 $408,641 
(1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility and the stated rate of interest for the 5.50% Senior Notes due 2028, without the effect of debt issuance costs.
(2) The Syndicated Credit Facility also includes a multicurrency revolving loan facility up to $300.0 million. There were no revolving loan borrowings outstanding as of March 31, 2024 or December 31, 2023.
Syndicated Credit Facility
The Company’s Syndicated Credit Facility (the “Facility”) provides to the Company U.S. denominated and multicurrency term loans and provides to the Company and certain of its subsidiaries a multicurrency revolving credit facility. 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 SOFR-based and alternative currency loans is charged at varying rates computed by applying a margin over the applicable SOFR rate or alternative currency 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.
Fees for commercial letters of credit are computed as a percentage of the amount available to be drawn under such letters of credit. Fees for standby letters of credit are charged at varying rates computed by applying a margin of the amount available to be drawn under such standby letters of credit, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. As of both March 31, 2024 and December 31, 2023, the Company had $1.6 million in letters of credit outstanding under the Facility.
As of both March 31, 2024 and December 31, 2023, the carrying value of the Company’s borrowings under the Facility approximated its fair value as the Facility bears interest rates that are similar to existing market rates. The fair value of borrowings under the Facility is estimated using observable market rates and is considered Level 2 within the fair value hierarchy.
Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which are due on the last day of the calendar quarter.
The Company is in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future.
Senior Notes due 2028
The 5.50% Senior Notes due 2028 (the “Senior Notes”) bear an interest rate at 5.50% per annum and mature on December 1, 2028. Interest is paid semi-annually on June 1 and December 1 of each year. The Senior Notes are unsecured and are guaranteed, jointly and severally, by each of the Company’s material domestic subsidiaries, all of which also guarantee the obligations of the Company under its Facility.
As of March 31, 2024, the estimated fair value of the Senior Notes was $287.0 million, compared with a net carrying value recorded in the Company’s consolidated condensed balance sheet of $296.7 million ($300.0 million gross, excluding the impact of $3.3 million of unamortized debt issuance costs). The fair value of the Senior Notes is derived using quoted prices for similar instruments and is considered Level 2 within the fair value hierarchy.
The Company is in compliance with all covenants under the indenture governing the Senior Notes and anticipates that it will remain in compliance with the covenants for the foreseeable future.
Debt Issuance Costs
Debt issuance costs associated with the Company’s Senior Notes and term loans under the Facility are reflected as a reduction of long-term debt in accordance with applicable accounting standards. As these fees are expensed over the life of the outstanding borrowing, the debt balance will increase by the same amount as the fees that are expensed. As of March 31, 2024 and December 31, 2023, the unamortized debt issuance costs recorded as a reduction of long-term debt were $4.2 million and $4.4 million, respectively.
Debt issuance costs related to the issuance of revolving debt, which include underwriting, legal and other direct costs, net of accumulated amortization, were $1.3 million and $1.4 million as of March 31, 2024 and December 31, 2023, respectively. These amounts are included in other assets in the Company’s consolidated condensed balance sheets. The Company amortizes these costs over the life of the related debt.
v3.24.1.u1
Shareholders' Equity
 3 Months Ended
Mar. 31, 2024
Stockholders' Equity Note [Abstract]  
Shareholders' Equity SHAREHOLDERS’ EQUITY
The following tables depict the activity in the accounts which make up shareholders’ equity for the three months ended March 31, 2024 and April 2, 2023:
SHARESCOMMON STOCKADDITIONAL PAID-IN CAPITALRETAINED
EARNINGS		PENSION LIABILITYFOREIGN CURRENCY TRANSLATION ADJUSTMENT
TOTAL
(in thousands, except per share data)
Balance, at December 31, 202358,112 $5,811 $252,909 $320,833 $(34,016)$(119,590)$425,947 
Net income
— — — 14,179 — — 14,179 
Issuances of stock related to restricted share units and performance shares
472 47 (47)— — — — 
Cash dividends declared, $0.01 per common share
— — — (589)— — (589)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings
(311)(31)(324)— — — (355)
Pension liability adjustment— — — — 458 — 458 
Foreign currency translation adjustment— — — — — (11,092)(11,092)
Balance, at March 31, 202458,273 $5,827 $252,538 $334,423 $(33,558)$(130,682)$428,548 
SHARESCOMMON STOCKADDITIONAL PAID-IN CAPITALRETAINED
EARNINGS		PENSION LIABILITYFOREIGN CURRENCY TRANSLATION ADJUSTMENTCASH FLOW
HEDGE
TOTAL
(in thousands, except per share data)
Balance, at January 1, 202358,106 $5,811 $244,159 $278,639 $(27,548)$(138,775)$(749)$361,537 
Net loss
— — — (714)— — — (714)
Issuances of stock related to performance shares
79 8 (8)— — — — — 
Cash dividends declared, $0.01 per common share
— — — (580)— — — (580)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings
(132)(14)1,850 — — — — 1,836 
Pension liability adjustment— — — — (279)— — (279)
Foreign currency translation adjustment— — — — — 4,930 — 4,930 
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 299 299 
Balance, at April 2, 202358,053 $5,805 $246,001 $277,345 $(27,827)$(133,845)$(450)$367,029 
The Company has share-based employee compensation plans, which are described more fully in Note 14 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Restricted Stock Awards
Compensation expense related to restricted stock grants was $0.9 million and $1.4 million for the three months ended March 31, 2024 and April 2, 2023, respectively. The Company has reduced its expense for any restricted stock forfeited during the period.
The following table summarizes restricted stock outstanding as of March 31, 2024, as well as activity during the three months then ended:
Restricted SharesWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023691,600 $12.55 
Granted— — 
Vested(324,300)13.94 
Forfeited or canceled(1,200)13.19 
Outstanding at March 31, 2024366,100 $11.32 
As of March 31, 2024, the unrecognized total compensation cost related to unvested restricted stock was $0.9 million. That cost is expected to be recognized by the first quarter of 2025.
Restricted Share Unit Awards
Compensation expense related to the restricted share units was $0.9 million and $0.5 million for the three months ended March 31, 2024 and April 2, 2023, respectively. The Company has reduced its expense for any restricted share units forfeited during the period.
The following table summarizes restricted share units outstanding as of March 31, 2024, as well as activity during the three months then ended:
Restricted Share UnitsWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023583,400 $10.35 
Granted402,800 13.24 
Vested(151,600)10.80 
Forfeited or canceled(4,000)10.80 
Outstanding at March 31, 2024830,600 $11.67 
As of March 31, 2024, the unrecognized total compensation cost related to unvested restricted share units was $8.5 million. That cost is expected to be recognized by the first quarter of 2027.
Performance Share Awards
The following table summarizes the performance shares outstanding as of March 31, 2024, as well as the activity during the three months then ended:
Performance SharesWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 20231,115,000 $12.36 
Granted402,800 13.24 
Vested(320,700)13.91 
Forfeited or canceled(12,800)12.82 
Outstanding at March 31, 20241,184,300 $12.24 
Compensation expense related to the performance shares was $2.1 million and $1.1 million for the three months ended March 31, 2024 and April 2, 2023, respectively. The Company has reduced its expense for any performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $9.0 million as of March 31, 2024. The amount and timing of future compensation expense will depend on the performance of the Company. The compensation expense related to these outstanding performance shares is expected to be recognized by the first quarter of 2027.
The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $0.5 million for the three months ended March 31, 2024.
v3.24.1.u1
Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases LEASES
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$83,766 $87,519 
 
Current portion of operating lease liabilities$12,574 $12,347 
Operating lease liabilities74,286 78,269 
Total operating lease liabilities$86,860 $90,616 
 
Property, plant and equipment, net$6,799 $7,236 
 
Accrued expenses$2,482 $2,587 
Other long-term liabilities4,701 5,035 
Total finance lease liabilities$7,183 $7,622 
As of March 31, 2024, there were no significant leases that had not commenced.
Lease Costs
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$776 $655 
Interest on lease liabilities99 60 
Operating lease cost4,989 4,703 
Short-term lease cost197 356 
Variable lease cost690 733 
Total lease cost$6,751 $6,507 
Other Supplemental Information
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$96 $52 
Operating cash flows from operating leases4,097 4,201 
Financing cash flows from finance leases716 643 
Right-of-use assets obtained in exchange for new finance lease liabilities390 557 
Right-of-use assets obtained in exchange for new operating lease liabilities265 1,121 
Lease Term and Discount Rate
The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of March 31, 2024 and December 31, 2023:
 March 31, 2024December 31, 2023
Weighted-average remaining lease term – finance leases (in years)3.603.70
Weighted-average remaining lease term – operating leases (in years)8.108.29
Weighted-average discount rate – finance leases5.70 %5.51 %
Weighted-average discount rate – operating leases6.27 %6.25 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2024 (excluding the three months ended March 31, 2024)
$12,770 $2,170 
202516,197 2,202 
202616,047 1,651 
202713,256 1,133 
202810,804 582 
Thereafter42,883 264 
Total future minimum lease payments (undiscounted)111,957 8,002 
Less: Present value discount(25,097)(819)
Total lease liabilities
$86,860 $7,183 
Leases LEASES
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$83,766 $87,519 
 
Current portion of operating lease liabilities$12,574 $12,347 
Operating lease liabilities74,286 78,269 
Total operating lease liabilities$86,860 $90,616 
 
Property, plant and equipment, net$6,799 $7,236 
 
Accrued expenses$2,482 $2,587 
Other long-term liabilities4,701 5,035 
Total finance lease liabilities$7,183 $7,622 
As of March 31, 2024, there were no significant leases that had not commenced.
Lease Costs
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$776 $655 
Interest on lease liabilities99 60 
Operating lease cost4,989 4,703 
Short-term lease cost197 356 
Variable lease cost690 733 
Total lease cost$6,751 $6,507 
Other Supplemental Information
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$96 $52 
Operating cash flows from operating leases4,097 4,201 
Financing cash flows from finance leases716 643 
Right-of-use assets obtained in exchange for new finance lease liabilities390 557 
Right-of-use assets obtained in exchange for new operating lease liabilities265 1,121 
Lease Term and Discount Rate
The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of March 31, 2024 and December 31, 2023:
 March 31, 2024December 31, 2023
Weighted-average remaining lease term – finance leases (in years)3.603.70
Weighted-average remaining lease term – operating leases (in years)8.108.29
Weighted-average discount rate – finance leases5.70 %5.51 %
Weighted-average discount rate – operating leases6.27 %6.25 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2024 (excluding the three months ended March 31, 2024)
$12,770 $2,170 
202516,197 2,202 
202616,047 1,651 
202713,256 1,133 
202810,804 582 
Thereafter42,883 264 
Total future minimum lease payments (undiscounted)111,957 8,002 
Less: Present value discount(25,097)(819)
Total lease liabilities
$86,860 $7,183 
v3.24.1.u1
Employee Benefit Plans
 3 Months Ended
Mar. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
During the three-month periods ended March 31, 2024 and April 2, 2023, the Company recorded multi-employer pension expense related to multi-employer contributions of $0.7 million and $0.6 million, respectively.
The following tables provide the components of net periodic benefit cost for the three months ended March 31, 2024 and April 2, 2023:
Three Months Ended
Defined Benefit Retirement Plans (Europe)
March 31, 2024April 2, 2023
(in thousands)
Interest cost$1,710 $1,735 
Expected return on plan assets(1,966)(1,964)
Amortization of prior service cost45 29 
Amortization of net actuarial losses269 223 
Net periodic benefit cost$58 $23 
Three Months Ended
Salary Continuation PlanMarch 31, 2024April 2, 2023
(in thousands)
Interest cost$266 $283 
Amortization of net actuarial losses60 49 
Net periodic benefit cost$326 $332 
Three Months Ended
nora Defined Benefit Plan
March 31, 2024April 2, 2023
(in thousands)
Service cost$126 $114 
Interest cost264 272 
Amortization of net actuarial gains
— (109)
Net periodic benefit cost$390 $277 
In accordance with applicable accounting standards, the service cost component of net periodic benefit costs is presented within operating income in the consolidated condensed statements of operations, while all other components of net periodic benefit costs are presented within other (income) expense, net, in the consolidated condensed statements of operations.
v3.24.1.u1
Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS
The ending balance and the change in the carrying amount of goodwill for the three months ended March 31, 2024 is as follows:
Goodwill(1)
(in thousands)
Balance, at December 31, 2023$105,448 
Foreign currency translation(2)
(2,251)
Balance, at March 31, 2024$103,197 
(1) The goodwill balance is allocated entirely to the AMS reportable segment.
(2) A portion of the goodwill balance is comprised of goodwill denominated in foreign currency attributable to the nora acquisition.
The net carrying value of intangible assets other than goodwill was $53.8 million and $56.3 million at March 31, 2024 and December 31, 2023, respectively.
v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company determines that an operating segment exists if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has operating results that are regularly reviewed by the chief operating decision maker (“CODM”) and (iii) has discrete financial information. Additionally, accounting standards require the utilization of a “management approach” to report the financial results of operating segments, which is based on information used by the CODM to assess performance and make operating and resource allocation decisions. The Company determined that it has two operating segments organized by geographical area – namely (a) Americas (“AMS”) and (b) Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment includes the United States, Canada and Latin America geographic areas.
Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on segment adjusted operating income (“AOI”), which includes allocations of corporate selling, general and administrative (“SG&A”) expenses and allocations of global support SG&A as discussed below. AOI excludes: nora purchase accounting amortization; Cyber Event impact; property casualty loss; and restructuring, asset impairment, severance, and other, net. Intersegment revenues for the three months ended March 31, 2024 and April 2, 2023 were $16.8 million and $22.6 million, respectively. Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.
The Company has determined that it has two reportable segments – AMS and EAAA, as each operating segment meets the quantitative thresholds defined in the accounting guidance.
During the first quarter of 2024, the Company implemented a cost center realignment initiative to centralize certain global/shared functions. For the quarter ended March 31, 2024, SG&A expenses for these global support functions were allocated to AOI for each reportable segment consistent with the allocation methodology used to allocate corporate overhead in prior periods. Prior year AOI amounts below were not recast as there was no material impact to the measure of segment profit for each reportable segment. There were no changes to the composition of the Company’s operating or reportable segments.
Segment information for the three months ended March 31, 2024 and April 2, 2023 is presented in the following table:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Net sales
AMS$169,915 $169,241 
EAAA119,828 126,551 
Total net sales$289,743 $295,792 
 
Segment AOI
AMS$18,080 $11,269 
EAAA 7,445 3,929 
 
Depreciation and amortization
AMS$4,353 $4,393 
EAAA5,263 5,598 
Total depreciation and amortization$9,616 $9,991 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
March 31, 2024December 31, 2023
(in thousands)
Assets
AMS$546,971 $627,782 
EAAA603,853 630,939 
Total segment assets1,150,824 1,258,721 
Corporate assets110,168 108,673 
Eliminations(67,500)(137,299)
Total reported assets$1,193,492 $1,230,095 
Reconciliations of operating income to income (loss) before income tax expense and segment AOI are presented as follows:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
AMS operating income$18,195 $8,715 
EAAA operating income6,251 762 
Consolidated operating income24,446 9,477 
Interest expense6,423 8,505 
Other (income) expense, net
(976)1,500 
Income (loss) before income tax expense$18,999 $(528)
Three Months Ended March 31, 2024Three Months Ended April 2, 2023
AMSEAAAAMSEAAA
(in thousands)
Operating income$18,195 $6,251 $8,715 $762 
Purchase accounting amortization— 1,297 — 1,283 
Cyber Event impact(246)(170)228 200 
Property casualty loss— — 1,300 — 
Restructuring, asset impairment, severance, and other, net
131 67 1,026 1,684 
AOI$18,080 $7,445 $11,269 $3,929 
v3.24.1.u1
Supplemental Cash Flow Information
 3 Months Ended
Mar. 31, 2024
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information for the three months ended March 31, 2024 and April 2, 2023 is presented in the following table:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Cash paid for interest
$2,099 $3,667 
Cash paid for income taxes, net of refunds
7,161 5,148 
See Note 7 entitled “Leases” for additional supplemental disclosures related to finance and operating leases.
Non-Cash Financing Activities
On March 12, 2024, the Company declared cash dividends on its common stock of $0.6 million, which were paid during the second quarter of 2024 to shareholders of record as of March 29, 2024. At March 31, 2024, the dividends were recorded within accrued expenses in the consolidated condensed balance sheet.
v3.24.1.u1
Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate (“AETR”) and records any changes affecting the estimated AETR in the interim period in which the change occurs, including discrete tax items.
During the three months ended March 31, 2024, the Company recorded a total income tax provision of $4.8 million on pre-tax income of $19.0 million resulting in an effective tax rate of 25.4%, as compared to a total income tax provision of $0.2 million on pre-tax loss of $0.5 million resulting in a negative effective tax rate of 35.2% during the three months ended April 2, 2023. The year-over-year change in the effective tax rate is primarily due to the tax effects of pre-tax income in the current year quarter compared to pre-tax loss in the prior year quarter and favorable changes related to share-based compensation and the limitation on the deduction for business interest expenses under Internal Revenue Code section 163(j). The pre-tax loss for the three months ended April 2, 2023, included significant unusual or infrequent items that are specifically excluded from the AETR. The tax effects related to these specifically excluded items are recognized discretely. The income tax benefits recognized discretely were at a lower effective tax rate compared to the estimated AETR resulting in an overall negative effective tax rate for the three months ended April 2, 2023.
On December 20, 2021, the Organization for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Many non-U.S. tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) with the adoption of additional components in later years or announced their plans to enact legislation in future years. For fiscal year 2024, we expect to meet the Transitional Country-by-Country (CbCR) Safe Harbor rules for most if not all jurisdictions and do not expect these provisions to have a material impact on the Company’s financial statements. We will continue to closely monitor ongoing developments and evaluate any potential impact on future periods.
In the first three months of 2024, the Company increased its liability for unrecognized tax benefits by $0.3 million. As of March 31, 2024, the Company had accrued approximately $5.2 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of March 31, 2024 reflects a reduction for $2.8 million of these unrecognized tax benefits.
Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including the progress of tax audits and the closing of statutes of limitations. While it is reasonably possible that some of the unrecognized tax benefits will be recognized within the next 12 months, the Company does not expect the recognition of such amounts will have a material impact on the Company’s financial results.
v3.24.1.u1
Items Reclassified from Accumulated Other Comprehensive Loss
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Items Reclassified from Accumulated Other Comprehensive Loss ITEMS RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE LOSS
Amounts reclassified out of accumulated other comprehensive loss (“AOCI”), before tax, to the consolidated condensed statements of operations during the three months ended March 31, 2024 and April 2, 2023 are reflected in the table below:
Three Months Ended
Statement of Operations LocationMarch 31, 2024April 2, 2023
(in thousands)
Interest rate swap contracts lossInterest expense$— $(393)
Amortization of benefit plan net actuarial losses and prior service cost
Other (income) expense, net
(374)(192)
Total loss reclassified from AOCI$(374)$(585)
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIESFrom time to time, we are a party to legal proceedings, whether arising in the ordinary course of business or otherwise. See disclosure under the heading “Lawsuit by Former CEO in Connection with Termination” set forth in Note 18 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Pay vs Performance Disclosure    
Net income (loss) $ 14,179 $ (714)
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the three months ended March 31, 2024, one of our directors, Daniel T. Hendrix, adopted a Rule 10b5-1 trading arrangement for the potential sale of our common stock in amounts and prices determined in accordance with such plan, as outlined in the table below:
Name and Title
Action
Date Adopted
Expiration Date
Aggregate Number of Securities to be Purchased / Sold
Daniel T. Hendrix, Director
Adoption of Rule 10b5-1 Plan(1)
March 6, 2024
February 5, 2025100,000 
(1) Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934.
Transactions in our securities by directors or officers of Interface or its subsidiaries are required to be made in accordance with our Insider Trading Policy, which incorporates applicable U.S. federal securities laws that prohibit trading Interface common stock and other Company securities while aware of material non-public information about Interface.
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Daniel T. Hendrix [Member]  
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted true
Adoption Date March 6, 2024
Arrangement Duration 336 days
Aggregate Available 100,000
Daniel T. Hendrix [Member]  
Trading Arrangements, by Individual  
Name Daniel T. Hendrix
Title Director
v3.24.1.u1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
References in this Quarterly Report on Form 10-Q to “Interface,” “the Company,” “we,” “our,” “ours” and “us” refer to Interface, Inc. and its subsidiaries or any of them, unless the context requires otherwise.
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 financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, 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 necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature unless otherwise disclosed. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 31, 2023, 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 (“GAAP”).
The three-month periods ended March 31, 2024 and April 2, 2023 both include 13 weeks.
Recent Accounting Pronouncements
Recently Issued Accounting Pronouncements – Not Yet Adopted
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU requires public entities on an annual basis to disclose a rate reconciliation with explicit categories, as outlined in the ASU, and requires additional disclosures for reconciling items that meet certain quantitative thresholds. Other disclosures include disaggregation of income taxes paid, pre-tax income, and income tax expense. The new guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its income tax disclosures.
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU requires additional disclosures in annual and interim periods for significant segment expenses included in the measure of segment profit provided to the chief operating decision maker (“CODM”). Disclosure of other segment items by reportable segment as well as a description of its composition is also required. The new guidance is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this ASU to its segment disclosures.
v3.24.1.u1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2024
Revenues [Abstract]  
Revenue by Products and Services
The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material. A summary of these revenue streams, as a percentage of net sales, for the three months ended March 31, 2024 and April 2, 2023 is as follows:
Three Months Ended
March 31, 2024April 2, 2023
Revenue from the sale of flooring material
99 %98 %
Revenue from installation of flooring material
1 %2 %
Disaggregation of Revenue
For the three months ended March 31, 2024 and April 2, 2023, revenue from the Company’s customers is broken down by geography as follows:
Three Months Ended
GeographyMarch 31, 2024April 2, 2023
Americas58.6 %57.2 %
Europe31.6 %32.0 %
Asia-Pacific9.8 %10.8 %
v3.24.1.u1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories are summarized as follows:
March 31, 2024December 31, 2023
(in thousands)
Finished goods$218,706 $201,821 
Work-in-process23,107 20,892 
Raw materials54,436 56,366 
Inventories, net$296,249 $279,079 
v3.24.1.u1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The following table shows the computation of basic and diluted EPS:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands, except per share data)
Numerator:
Net income (loss)$14,179 $(714)
Less: distributed and undistributed earnings available to participating securities(150)(9)
Distributed and undistributed earnings (loss) available to common shareholders$14,029 $(723)
 
Denominator:
Weighted average shares outstanding57,623 57,177 
Participating securities615 902 
Shares for basic EPS58,238 58,079 
Dilutive effect of non-participating securities476 — 
Shares for diluted EPS58,714 58,079 
 
Basic EPS$0.24 $(0.01)
Diluted EPS$0.24 $(0.01)
v3.24.1.u1
Long-Term Debt (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments
Long-term debt consisted of the following:
March 31, 2024December 31, 2023
Outstanding Principal
Interest Rate(1)
Outstanding Principal
Interest Rate(1)
(in thousands)(in thousands)
Syndicated Credit Facility(2):
Term loan borrowings$95,988 6.26 %$121,658 6.61 %
5.50% Senior Notes due 2028300,000 5.50 %300,000 5.50 %
 
Total debt395,988 421,658 
Less: Unamortized debt issuance costs(4,204)(4,445)
 
Total debt, net391,784 417,213 
Less: Current portion of long-term debt(8,523)(8,572)
 
Total long-term debt, net$383,261 $408,641 
(1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility and the stated rate of interest for the 5.50% Senior Notes due 2028, without the effect of debt issuance costs.
(2) The Syndicated Credit Facility also includes a multicurrency revolving loan facility up to $300.0 million. There were no revolving loan borrowings outstanding as of March 31, 2024 or December 31, 2023.
v3.24.1.u1
Shareholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Shareholders' Equity
The following tables depict the activity in the accounts which make up shareholders’ equity for the three months ended March 31, 2024 and April 2, 2023:
SHARESCOMMON STOCKADDITIONAL PAID-IN CAPITALRETAINED
EARNINGS		PENSION LIABILITYFOREIGN CURRENCY TRANSLATION ADJUSTMENT
TOTAL
(in thousands, except per share data)
Balance, at December 31, 202358,112 $5,811 $252,909 $320,833 $(34,016)$(119,590)$425,947 
Net income
— — — 14,179 — — 14,179 
Issuances of stock related to restricted share units and performance shares
472 47 (47)— — — — 
Cash dividends declared, $0.01 per common share
— — — (589)— — (589)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings
(311)(31)(324)— — — (355)
Pension liability adjustment— — — — 458 — 458 
Foreign currency translation adjustment— — — — — (11,092)(11,092)
Balance, at March 31, 202458,273 $5,827 $252,538 $334,423 $(33,558)$(130,682)$428,548 
SHARESCOMMON STOCKADDITIONAL PAID-IN CAPITALRETAINED
EARNINGS		PENSION LIABILITYFOREIGN CURRENCY TRANSLATION ADJUSTMENTCASH FLOW
HEDGE
TOTAL
(in thousands, except per share data)
Balance, at January 1, 202358,106 $5,811 $244,159 $278,639 $(27,548)$(138,775)$(749)$361,537 
Net loss
— — — (714)— — — (714)
Issuances of stock related to performance shares
79 8 (8)— — — — — 
Cash dividends declared, $0.01 per common share
— — — (580)— — — (580)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings
(132)(14)1,850 — — — — 1,836 
Pension liability adjustment— — — — (279)— — (279)
Foreign currency translation adjustment— — — — — 4,930 — 4,930 
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 299 299 
Balance, at April 2, 202358,053 $5,805 $246,001 $277,345 $(27,827)$(133,845)$(450)$367,029 
Schedule of Restricted Stock Outstanding and Activity
The following table summarizes restricted stock outstanding as of March 31, 2024, as well as activity during the three months then ended:
Restricted SharesWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023691,600 $12.55 
Granted— — 
Vested(324,300)13.94 
Forfeited or canceled(1,200)13.19 
Outstanding at March 31, 2024366,100 $11.32 
Schedule of Restricted Share Units Outstanding and Activity
The following table summarizes restricted share units outstanding as of March 31, 2024, as well as activity during the three months then ended:
Restricted Share UnitsWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023583,400 $10.35 
Granted402,800 13.24 
Vested(151,600)10.80 
Forfeited or canceled(4,000)10.80 
Outstanding at March 31, 2024830,600 $11.67 
Schedule of Performance Shares Outstanding and Activity
The following table summarizes the performance shares outstanding as of March 31, 2024, as well as the activity during the three months then ended:
Performance SharesWeighted Average
Grant Date
Fair Value
Outstanding at December 31, 20231,115,000 $12.36 
Granted402,800 13.24 
Vested(320,700)13.91 
Forfeited or canceled(12,800)12.82 
Outstanding at March 31, 20241,184,300 $12.24 
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Balance Sheet Information, Lessee
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$83,766 $87,519 
 
Current portion of operating lease liabilities$12,574 $12,347 
Operating lease liabilities74,286 78,269 
Total operating lease liabilities$86,860 $90,616 
 
Property, plant and equipment, net$6,799 $7,236 
 
Accrued expenses$2,482 $2,587 
Other long-term liabilities4,701 5,035 
Total finance lease liabilities$7,183 $7,622 
Schedule of Lease Costs
Lease Costs
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$776 $655 
Interest on lease liabilities99 60 
Operating lease cost4,989 4,703 
Short-term lease cost197 356 
Variable lease cost690 733 
Total lease cost$6,751 $6,507 
Other Supplemental Information, Lessee
Other Supplemental Information
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$96 $52 
Operating cash flows from operating leases4,097 4,201 
Financing cash flows from finance leases716 643 
Right-of-use assets obtained in exchange for new finance lease liabilities390 557 
Right-of-use assets obtained in exchange for new operating lease liabilities265 1,121 
Weighted Average Lease Term and Discount Rate, Lessee
The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of March 31, 2024 and December 31, 2023:
 March 31, 2024December 31, 2023
Weighted-average remaining lease term – finance leases (in years)3.603.70
Weighted-average remaining lease term – operating leases (in years)8.108.29
Weighted-average discount rate – finance leases5.70 %5.51 %
Weighted-average discount rate – operating leases6.27 %6.25 %
Lease Liability Maturity Schedule
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2024 (excluding the three months ended March 31, 2024)
$12,770 $2,170 
202516,197 2,202 
202616,047 1,651 
202713,256 1,133 
202810,804 582 
Thereafter42,883 264 
Total future minimum lease payments (undiscounted)111,957 8,002 
Less: Present value discount(25,097)(819)
Total lease liabilities
$86,860 $7,183 
Lease Liability Maturity Schedule
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2024 (excluding the three months ended March 31, 2024)
$12,770 $2,170 
202516,197 2,202 
202616,047 1,651 
202713,256 1,133 
202810,804 582 
Thereafter42,883 264 
Total future minimum lease payments (undiscounted)111,957 8,002 
Less: Present value discount(25,097)(819)
Total lease liabilities
$86,860 $7,183 
v3.24.1.u1
Employee Benefit Plans (Tables)
 3 Months Ended
Mar. 31, 2024
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Cost
The following tables provide the components of net periodic benefit cost for the three months ended March 31, 2024 and April 2, 2023:
Three Months Ended
Defined Benefit Retirement Plans (Europe)
March 31, 2024April 2, 2023
(in thousands)
Interest cost$1,710 $1,735 
Expected return on plan assets(1,966)(1,964)
Amortization of prior service cost45 29 
Amortization of net actuarial losses269 223 
Net periodic benefit cost$58 $23 
Three Months Ended
Salary Continuation PlanMarch 31, 2024April 2, 2023
(in thousands)
Interest cost$266 $283 
Amortization of net actuarial losses60 49 
Net periodic benefit cost$326 $332 
Three Months Ended
nora Defined Benefit Plan
March 31, 2024April 2, 2023
(in thousands)
Service cost$126 $114 
Interest cost264 272 
Amortization of net actuarial gains
— (109)
Net periodic benefit cost$390 $277 
v3.24.1.u1
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The ending balance and the change in the carrying amount of goodwill for the three months ended March 31, 2024 is as follows:
Goodwill(1)
(in thousands)
Balance, at December 31, 2023$105,448 
Foreign currency translation(2)
(2,251)
Balance, at March 31, 2024$103,197 
(1) The goodwill balance is allocated entirely to the AMS reportable segment.
(2) A portion of the goodwill balance is comprised of goodwill denominated in foreign currency attributable to the nora acquisition.
v3.24.1.u1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of Operating Segment Information
Segment information for the three months ended March 31, 2024 and April 2, 2023 is presented in the following table:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Net sales
AMS$169,915 $169,241 
EAAA119,828 126,551 
Total net sales$289,743 $295,792 
 
Segment AOI
AMS$18,080 $11,269 
EAAA 7,445 3,929 
 
Depreciation and amortization
AMS$4,353 $4,393 
EAAA5,263 5,598 
Total depreciation and amortization$9,616 $9,991 
Reconciliation of Assets from Segment to Consolidated
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
March 31, 2024December 31, 2023
(in thousands)
Assets
AMS$546,971 $627,782 
EAAA603,853 630,939 
Total segment assets1,150,824 1,258,721 
Corporate assets110,168 108,673 
Eliminations(67,500)(137,299)
Total reported assets$1,193,492 $1,230,095 
Reconciliation of Operating Income to Income (Loss) Before Income Tax Expense and Segment AOI
Reconciliations of operating income to income (loss) before income tax expense and segment AOI are presented as follows:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
AMS operating income$18,195 $8,715 
EAAA operating income6,251 762 
Consolidated operating income24,446 9,477 
Interest expense6,423 8,505 
Other (income) expense, net
(976)1,500 
Income (loss) before income tax expense$18,999 $(528)
Three Months Ended March 31, 2024Three Months Ended April 2, 2023
AMSEAAAAMSEAAA
(in thousands)
Operating income$18,195 $6,251 $8,715 $762 
Purchase accounting amortization— 1,297 — 1,283 
Cyber Event impact(246)(170)228 200 
Property casualty loss— — 1,300 — 
Restructuring, asset impairment, severance, and other, net
131 67 1,026 1,684 
AOI$18,080 $7,445 $11,269 $3,929 
v3.24.1.u1
Supplemental Cash Flow Information (Tables)
 3 Months Ended
Mar. 31, 2024
Supplemental Cash Flow Information [Abstract]  
Schedule of Supplemental Cash Flow Information
Supplemental cash flow information for the three months ended March 31, 2024 and April 2, 2023 is presented in the following table:
Three Months Ended
March 31, 2024April 2, 2023
(in thousands)
Cash paid for interest
$2,099 $3,667 
Cash paid for income taxes, net of refunds
7,161 5,148 
v3.24.1.u1
Items Reclassified from Accumulated Other Comprehensive Loss (Tables)
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Schedule of Items Reclassified out of Accumulated Other Comprehensive Loss
Amounts reclassified out of accumulated other comprehensive loss (“AOCI”), before tax, to the consolidated condensed statements of operations during the three months ended March 31, 2024 and April 2, 2023 are reflected in the table below:
Three Months Ended
Statement of Operations LocationMarch 31, 2024April 2, 2023
(in thousands)
Interest rate swap contracts lossInterest expense$— $(393)
Amortization of benefit plan net actuarial losses and prior service cost
Other (income) expense, net
(374)(192)
Total loss reclassified from AOCI$(374)$(585)
v3.24.1.u1
Revenue Recognition - Revenue by Products and Services (Details)
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Revenue from the Sale of Flooring Material    
Revenue from External Customer [Line Items]    
Percent of revenue due to contracts with customers (percentage) 99.00% 98.00%
Revenue from Installation of Flooring Material    
Revenue from External Customer [Line Items]    
Percent of revenue due to contracts with customers (percentage) 1.00% 2.00%
v3.24.1.u1
Revenue Recognition - Disaggregation of Revenue (Details)
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Americas    
Disaggregation of Revenue [Line Items]    
Percentage of net sales 58.60% 57.20%
Europe    
Disaggregation of Revenue [Line Items]    
Percentage of net sales 31.60% 32.00%
Asia-Pacific    
Disaggregation of Revenue [Line Items]    
Percentage of net sales 9.80% 10.80%
v3.24.1.u1
Inventories - Summary of Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Finished goods $ 218,706 $ 201,821
Work-in-process 23,107 20,892
Raw materials 54,436 56,366
Inventories, net $ 296,249 $ 279,079
v3.24.1.u1
Earnings Per Share - Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Numerator:    
Net income (loss) $ 14,179 $ (714)
Distributed and undistributed earnings available to participating securities, basic (150) (9)
Distributed and undistributed earnings available to participating securities, diluted (150) (9)
Distributed and undistributed earnings (loss) available to common shareholders, basic 14,029 (723)
Distributed and undistributed earnings (loss) available to common shareholders, diluted $ 14,029 $ (723)
Denominator:    
Weighted average shares outstanding (in shares) 57,623 57,177
Participating securities (in shares) 615 902
Shares for basic earnings (loss) per share (in shares) 58,238 58,079
Dilutive effect of non-participating securities (in shares) 476 0
Shares for diluted earnings (loss) per share (in shares) 58,714 58,079
Earnings (loss) per share – basic (in dollars per share) $ 0.24 $ (0.01)
Earnings (loss) per share – diluted (in dollars per share) $ 0.24 $ (0.01)
v3.24.1.u1
Earnings Per Share - Narrative (Details) - shares
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of EPS (in shares) 1,049,405 1,728,579
v3.24.1.u1
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Long-term debt, gross $ 395,988 $ 421,658
Less: Unamortized debt issuance costs (4,204) (4,445)
Total debt, net 391,784 417,213
Less: Current portion of long-term debt (8,523) (8,572)
Long-term debt, net 383,261 408,641
Syndicated Facility Agreement    
Debt Instrument [Line Items]    
Revolving loan facility, maximum borrowing capacity 300,000  
Syndicated Facility Agreement | Revolving Loan Facility    
Debt Instrument [Line Items]    
Long-term debt, gross 0 0
Syndicated Facility Agreement | Term Loan    
Debt Instrument [Line Items]    
Long-term debt, gross $ 95,988 $ 121,658
Weighted average interest rate on borrowings outstanding (percentage) 6.26% 6.61%
Senior Notes    
Debt Instrument [Line Items]    
Long-term debt, gross $ 300,000 $ 300,000
Less: Unamortized debt issuance costs (3,300)  
Long-term debt, net $ 296,700  
Stated interest rate (percentage) 5.50% 5.50%
v3.24.1.u1
Long-Term Debt - Narrative (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Long-term debt, net $ 383,261 $ 408,641
Long-term debt, gross 395,988 421,658
Unamortized debt issuance costs, recorded as reduction of long-term debt, net 4,204 4,445
Term Loan and Senior Notes    
Debt Instrument [Line Items]    
Unamortized debt issuance costs, recorded as reduction of long-term debt, net 4,200 4,400
Syndicated Facility Agreement    
Debt Instrument [Line Items]    
Letters of credit outstanding 1,600 1,600
Unamortized debt issuance costs, revolving loan facility, net 1,300 1,400
Syndicated Facility Agreement | Term Loan    
Debt Instrument [Line Items]    
Long-term debt, gross $ 95,988 $ 121,658
Senior Notes    
Debt Instrument [Line Items]    
Stated interest rate (percentage) 5.50% 5.50%
Long-term debt, net $ 296,700  
Long-term debt, gross 300,000 $ 300,000
Unamortized debt issuance costs, recorded as reduction of long-term debt, net 3,300  
Level 2 | Senior Notes    
Debt Instrument [Line Items]    
Long-term debt, fair value $ 287,000  
v3.24.1.u1
Shareholders' Equity - Activity in Shareholders' Equity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period $ 425,947 $ 361,537
Net income (loss) 14,179 (714)
Issuances of stock related to restricted share units and performance shares 0 0
Cash dividends declared (589) (580)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (355) 1,836
Pension liability adjustment 458 (279)
Foreign currency translation adjustment (11,092) 4,930
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge 0 299
Balance at end of period $ 428,548 $ 367,029
Cash dividends declared, per common share (in dollars per share) $ 0.01 $ 0.01
COMMON STOCK    
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period (in shares) 58,112 58,106
Balance at beginning of period $ 5,811 $ 5,811
Issuances of stock related to restricted share units and performance shares (in shares) 472 79
Issuances of stock related to restricted share units and performance shares $ 47 $ 8
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (in shares) (311) (132)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings $ (31) $ (14)
Balance at end of period (in shares) 58,273 58,053
Balance at end of period $ 5,827 $ 5,805
ADDITIONAL PAID-IN CAPITAL    
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period 252,909 244,159
Issuances of stock related to restricted share units and performance shares (47) (8)
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings (324) 1,850
Balance at end of period 252,538 246,001
RETAINED EARNINGS    
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period 320,833 278,639
Net income (loss) 14,179 (714)
Cash dividends declared (589) (580)
Balance at end of period 334,423 277,345
PENSION LIABILITY    
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period (34,016) (27,548)
Pension liability adjustment 458 (279)
Balance at end of period (33,558) (27,827)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT    
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period (119,590) (138,775)
Foreign currency translation adjustment (11,092) 4,930
Balance at end of period $ (130,682) (133,845)
CASH FLOW HEDGE    
Increase (Decrease) in Shareholders' Equity [Roll Forward]    
Balance at beginning of period   (749)
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge   299
Balance at end of period   $ (450)
v3.24.1.u1
Shareholders' Equity - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense $ 3,915 $ 3,004
Share-based compensation expense, tax benefit 500  
Restricted Stock    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense 900 1,400
Unrecognized compensation expense related to unvested share-based awards 900  
Restricted Share Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense 900 500
Unrecognized compensation expense related to unvested share-based awards 8,500  
Performance Shares    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense 2,100 $ 1,100
Unrecognized compensation expense related to unvested share-based awards $ 9,000  
v3.24.1.u1
Shareholders' Equity - Restricted Stock Outstanding (Details) - Restricted Stock
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Shares  
Outstanding at beginning of period (in shares) | shares 691,600
Granted (in shares) | shares 0
Vested (in shares) | shares (324,300)
Forfeited or canceled (in shares) | shares (1,200)
Outstanding at end of period (in shares) | shares 366,100
Weighted Average Grant Date Fair Value  
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ / shares $ 12.55
Granted, weighted average grant date fair value (in dollars per share) | $ / shares 0
Vested, weighted average grant date fair value (in dollars per share) | $ / shares 13.94
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | $ / shares 13.19
Outstanding at end of period, weighted average grant date fair value (in dollars per share) | $ / shares $ 11.32
v3.24.1.u1
Shareholders' Equity - Restricted Share Units Outstanding (Details) - Restricted Share Units
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Shares  
Outstanding at beginning of period (in shares) | shares 583,400
Granted (in shares) | shares 402,800
Vested (in shares) | shares (151,600)
Forfeited or canceled (in shares) | shares (4,000)
Outstanding at end of period (in shares) | shares 830,600
Weighted Average Grant Date Fair Value  
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ / shares $ 10.35
Granted, weighted average grant date fair value (in dollars per share) | $ / shares 13.24
Vested, weighted average grant date fair value (in dollars per share) | $ / shares 10.80
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | $ / shares 10.80
Outstanding at end of period, weighted average grant date fair value (in dollars per share) | $ / shares $ 11.67
v3.24.1.u1
Shareholders' Equity - Performance Shares Outstanding (Details) - Performance Shares
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Shares  
Outstanding at beginning of period (in shares) | shares 1,115,000
Granted (in shares) | shares 402,800
Vested (in shares) | shares (320,700)
Forfeited or canceled (in shares) | shares (12,800)
Outstanding at end of period (in shares) | shares 1,184,300
Weighted Average Grant Date Fair Value  
Outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ / shares $ 12.36
Granted, weighted average grant date fair value (in dollars per share) | $ / shares 13.24
Vested, weighted average grant date fair value (in dollars per share) | $ / shares 13.91
Forfeited or canceled, weighted average grant date fair value (in dollars per share) | $ / shares 12.82
Outstanding at end of period, weighted average grant date fair value (in dollars per share) | $ / shares $ 12.24
v3.24.1.u1
Leases - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease right-of-use assets $ 83,766 $ 87,519
Current portion of operating lease liabilities 12,574 12,347
Operating lease liabilities 74,286 78,269
Total operating lease liabilities 86,860 90,616
Finance lease right-of-use assets, net $ 6,799 $ 7,236
Finance lease right-of-use asset, consolidated condensed balance sheet location Property, plant and equipment, net Property, plant and equipment, net
Current portion of finance lease liabilities $ 2,482 $ 2,587
Finance lease liability, current, consolidated condensed balance sheet location Accrued expenses Accrued expenses
Finance lease liabilities $ 4,701 $ 5,035
Finance lease liability, noncurrent, consolidated condensed balance sheet location Other long-term liabilities Other long-term liabilities
Total finance lease liabilities $ 7,183 $ 7,622
v3.24.1.u1
Leases - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Leases [Abstract]    
Finance lease cost: Amortization of right-of-use assets $ 776 $ 655
Finance lease cost: Interest on lease liabilities 99 60
Operating lease cost 4,989 4,703
Short-term lease cost 197 356
Variable lease cost 690 733
Total lease cost $ 6,751 $ 6,507
v3.24.1.u1
Leases - Other Supplemental Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Leases [Abstract]    
Operating cash flows from finance leases $ 96 $ 52
Operating cash flows from operating leases 4,097 4,201
Financing cash flows from finance leases 716 643
Right-of-use assets obtained in exchange for new finance lease liabilities 390 557
Right-of-use assets obtained in exchange for new operating lease liabilities $ 265 $ 1,121
v3.24.1.u1
Leases - Lease Term and Discount Rate (Details)
Mar. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average remaining lease term – finance leases (in years) 3 years 7 months 6 days 3 years 8 months 12 days
Weighted-average remaining lease term – operating leases (in years) 8 years 1 month 6 days 8 years 3 months 14 days
Weighted-average discount rate – finance leases (percentage) 5.70% 5.51%
Weighted-average discount rate – operating leases (percentage) 6.27% 6.25%
v3.24.1.u1
Leases - Maturity of Lease Payments (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2024 (excluding the three months ended March 31, 2024) $ 12,770  
2025 16,197  
2026 16,047  
2027 13,256  
2028 10,804  
Thereafter 42,883  
Total future minimum lease payments (undiscounted) 111,957  
Less: Present value discount (25,097)  
Total lease liabilities 86,860 $ 90,616
Lessee, Finance Lease, Liability, Payment, Due [Abstract]    
2024 (excluding the three months ended March 31, 2024) 2,170  
2025 2,202  
2026 1,651  
2027 1,133  
2028 582  
Thereafter 264  
Total future minimum lease payments (undiscounted) 8,002  
Less: Present value discount (819)  
Total lease liabilities $ 7,183 $ 7,622
v3.24.1.u1
Employee Benefit Plans - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Retirement Benefits [Abstract]    
Multiemployer plan, employer contribution $ 0.7 $ 0.6
v3.24.1.u1
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Europe    
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]    
Interest cost $ 1,710 $ 1,735
Expected return on plan assets (1,966) (1,964)
Amortization of prior service cost 45 29
Amortization of net actuarial losses (gains) 269 223
Net periodic benefit cost 58 23
Salary Continuation Plan | United States    
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]    
Interest cost 266 283
Amortization of net actuarial losses (gains) 60 49
Net periodic benefit cost 326 332
nora Defined Benefit Plan    
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]    
Service cost 126 114
Interest cost 264 272
Amortization of net actuarial losses (gains) 0 (109)
Net periodic benefit cost $ 390 $ 277
v3.24.1.u1
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - Operating Segments - AMS
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Balance at beginning of period $ 105,448
Foreign currency translation (2,251)
Balance at end of period $ 103,197
v3.24.1.u1
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Carrying value of intangible assets, excluding goodwill, net $ 53.8 $ 56.3
v3.24.1.u1
Segment Information - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Apr. 02, 2023
USD ($)
Segment Reporting [Abstract]    
Number of operating segments 2  
Number of reportable segments 2  
Intersegment revenues $ 16.8 $ 22.6
v3.24.1.u1
Segment Information - Operating Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Segment Reporting Information [Line Items]    
Net sales $ 289,743 $ 295,792
Depreciation and amortization 9,616 9,991
Operating Segments | AMS    
Segment Reporting Information [Line Items]    
Net sales 169,915 169,241
AOI 18,080 11,269
Depreciation and amortization 4,353 4,393
Operating Segments | EAAA    
Segment Reporting Information [Line Items]    
Net sales 119,828 126,551
AOI 7,445 3,929
Depreciation and amortization $ 5,263 $ 5,598
v3.24.1.u1
Segment Information - Reconciliation of Segment Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets $ 1,193,492 $ 1,230,095
Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 1,150,824 1,258,721
Operating Segments | AMS    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 546,971 627,782
Operating Segments | EAAA    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 603,853 630,939
Corporate, Non-Segment    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 110,168 108,673
Eliminations    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets $ (67,500) $ (137,299)
v3.24.1.u1
Segment Information - Reconciliation of Segment AOI (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Segment Reporting, Reconciling Item for Operating Income from Segment to Consolidated [Line Items]    
Operating income $ 24,446 $ 9,477
Interest expense 6,423 8,505
Other (income) expense, net (976) 1,500
Income (loss) before income tax expense 18,999 (528)
Purchase accounting amortization 1,297 1,283
Operating Segments | AMS    
Segment Reporting, Reconciling Item for Operating Income from Segment to Consolidated [Line Items]    
Operating income 18,195 8,715
Purchase accounting amortization 0 0
Cyber Event impact (246) 228
Property casualty loss 0 1,300
Restructuring, asset impairment, severance, and other, net 131 1,026
AOI 18,080 11,269
Operating Segments | EAAA    
Segment Reporting, Reconciling Item for Operating Income from Segment to Consolidated [Line Items]    
Operating income 6,251 762
Purchase accounting amortization 1,297 1,283
Cyber Event impact (170) 200
Property casualty loss 0 0
Restructuring, asset impairment, severance, and other, net 67 1,684
AOI $ 7,445 $ 3,929
v3.24.1.u1
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Supplemental Cash Flow Information [Abstract]    
Cash paid for interest $ 2,099 $ 3,667
Cash paid for income taxes, net of refunds $ 7,161 $ 5,148
v3.24.1.u1
Supplemental Cash Flow Information - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 12, 2024
Mar. 31, 2024
Apr. 02, 2023
Non-Cash Financing Activities [Line Items]      
Cash dividends declared on common stock   $ 589 $ 580
Accrued Expenses      
Non-Cash Financing Activities [Line Items]      
Cash dividends declared on common stock $ 600    
v3.24.1.u1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Income Tax Disclosure [Abstract]    
Income tax expense $ 4,820 $ 186
Income (loss) before income tax expense $ 18,999 $ (528)
Effective income tax rate (percentage) 25.40% (35.20%)
Pillar Two, minimum tax rate (percentage) 15.00%  
Unrecognized tax benefits, period increase $ 300  
Unrecognized tax benefits 5,200  
Reduction of deferred tax asset for unrecognized tax benefits $ 2,800  
v3.24.1.u1
Items Reclassified from Accumulated Other Comprehensive Loss - Schedule of Items Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Apr. 02, 2023
Equity [Abstract]    
Interest rate swap contracts loss $ 0 $ (393)
Discontinued cash flow hedge, reclassification out of accumulated other comprehensive loss, consolidated condensed statement of operations location Interest expense Interest expense
Amortization of benefit plan net actuarial losses and prior service cost $ (374) $ (192)
Total loss reclassified from accumulated other comprehensive loss $ (374) $ (585)