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Supplemental Condensed Consolidating Guarantor Financial Statements

6 Months Ended

Jul. 01, 2012

Supplemental Condensed Consolidating Guarantor Financial Statements [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

NOTE 16 – SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

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

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED JULY 1, 2012


	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	167,714	$	117,526	$	—		$	(30,633	)	$	254,607
Cost of sales		121,595		79,050		—			(30,633	)		170,012

Gross profit on sales		46,119		38,476		—			—			84,595
Selling, general and administrative expenses		29,477		27,063		6,022			—			62,562

Operating income (loss)		16,642		11,413		(6,022	)		—			22,033
Interest/Other expense		11,007		2,870		(7,464	)		—			6,413

Income before taxes on income and equity in income of subsidiaries		5,635		8,543		1,442			—			15,620
Income tax expense		1,934		2,933		495			—			5,362
Equity in income (loss) of subsidiaries		—		—		9,311			(9,311	)		—

Net income (loss)	$	3,701	$	5,610	$	10,258		$	(9,311	)	$	10,258

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JULY 1, 2012


	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	310,498	$	238,181		$	—		$	(61,312	)	$	487,367
Cost of sales		227,938		159,943			—			(61,312	)		326,569

Gross profit on sales		82,560		78,238			—			—			160,798
Selling, general and administrative expenses		56,296		54,668			10,966			—			121,930
Restructuring and asset impairment charge		1,143		15,173			—			—			16,316

Operating income (loss)		25,121		8,397			(10,966	)		—			22,552
Interest/Other expense		18,242		6,603			(11,342	)		—			13,503

Income (loss) before taxes on income and equity in income of subsidiaries		6,879		1,794			376			—			9,049
Income tax expense		2,055		2,278			392			—			4,725
Equity in income (loss) of subsidiaries		—		—			4,340			(4,340	)		—

Net income (loss)	$	4,824	$	(484	)	$	4,324		$	(4,340	)	$	4,324

CONDENSED CONSOLIDATING BALANCE SHEET

JULY 1, 2012


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,446		$	26,419		$	9,013		$	—		$	36,878
Accounts receivable		66,614			73,936			582			—			141,132
Inventories		98,789			74,895			—			—			173,684
Prepaids and deferred income taxes		8,993			17,926			9,101			—			36,020

Total current assets		175,842			193,176			18,696			—			387,714
Property and equipment less accumulated depreciation		83,319			103,735			3,598			—			190,652
Investment in subsidiaries		267,400			198,892			124,800			(591,092	)		—
Goodwill		6,955			65,177			—			—			72,132
Other assets		5,680			10,552			84,840			—			101,072

	$	539,196		$	571,532		$	231,934		$	(591,092	)	$	751,570

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	47,794		$	75,227		$	18,942		$	—		$	141,963
Senior notes		—			—			283,070			—			283,070
Deferred income taxes		188			11,302			(3,005	)		—			8,485
Other		1,406			8,565			27,217			—			37,188

Total liabilities		49,388			95,094			326,224			—			470,706
Common stock		94,145			102,199			6,596			(196,344	)		6,596
Additional paid-in capital		249,302			12,525			364,376			(261,827	)		364,376
Retained earnings (deficit)		148,441			425,226			(455,813	)		(132,921	)		(15,067	)
Foreign currency translation adjustment		(2,080	)		(29,647	)		(7,018	)		—			(38,745	)
Pension liability		—			(33,865	)		(2,431	)		—			(36,296	)

	$	539,196		$	571,532		$	231,934		$	(591,092	)	$	751,570

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS

ENDED JULY 1, 2012


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net cash provided by operating activities	$	6,532		$	2,812		$	10,667		$	3,418		$	23,429

Cash flows from investing activities:
Purchase of plant and equipment		(7,292	)		(14,443	)		(12	)		—			(21,747	)
Other		390			(31	)		(1,496	)		—			(1,137	)

Net cash used for investing activities		(6,902	)		(14,474	)		(1,508	)		—			(22,884	)

Cash flows from financing activities:
Repurchase of senior subordinated notes		—			—			(11,477	)		—			(11,477	)
Other		715			2,536			167			(3,418	)		—
Proceeds from issuance of common stock		—			—			131			—			131
Dividends paid		—			—			(2,627	)		—			(2,627	)

Net cash provided by (used for) financing activities		715			2,536			(13,806	)		(3,418	)		(13,973	)
Effect of exchange rate change on cash		—			(329	)		—			—			(329	)

Net increase (decrease) in cash		345			(9,455	)		(4,647	)		—			(13,757	)
Cash at beginning of period		1,101			35,874			13,660			—			50,635

Cash at end of period	$	1,446		$	26,419		$	9,013		$	—		$	36,878