INCOME (LOSS) PER SHARE

The Company computes basic earnings (loss) per share (“EPS”) attributable to Interface, Inc. common shareholders by dividing income (loss) from continuing operations attributable to Interface, Inc. common shareholders, income (loss) from discontinued operations attributable to Interface, Inc. common shareholders and net income (loss) attributable to Interface, Inc. common shareholders, by the weighted average common shares outstanding, including participating securities outstanding, during the period as depicted 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. Income attributable to non-controlling interest is included in the computation of basic and diluted earnings per share, where applicable.

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 common shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. 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. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. The following tables show distributed and undistributed earnings:


	Fiscal Year
	2012			2011		2010
Earnings per share from continuing operations:
Basic earnings per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.09		$	0.08	$	0.04
Undistributed earnings		0.26			0.51		0.10

	$	0.35		$	0.59	$	0.14

Diluted earnings per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.09		$	0.08	$	0.04
Undistributed earnings		0.26			0.50		0.10

	$	0.35		$	0.58	$	0.14

Earnings (Loss) per share from discontinued operations:
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00		$	0.00	$	0.00
Undistributed earnings		(0.26	)		0.01		(0.01	)
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00		$	0.00	$	0.00
Undistributed earnings		(0.26	)		0.01		(0.01	)
Basic earnings per share attributable to Interface, Inc. common shareholders	$	0.09		$	0.59	$	0.13
Diluted earnings per share attributable to Interface, Inc. common shareholders	$	0.09		$	0.59	$	0.13

The following table presents income from continuing operations and net income (loss) attributable to Interface, Inc. that was attributable to participating securities:


	Fiscal Year
	2012		2011		2010
	(in millions)
Income from Continuing Operations	$	0.7	$	1.0	$	0.3
Net Income Attributable to Interface, Inc.		0.2		1.0		0.2

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


	Fiscal Year
	2012		2011		2010
	(in thousands)
Weighted Average Shares Outstanding		63,793		63,542		62,054
Participating Securities		1,974		1,749		1,740

Shares for Basic Earnings Per Share		65,767		65,291		63,794
Dilutive Effect of Stock Options		133		195		468

Shares for Diluted Earnings Per Share		65,900		65,486		64,262

In 2012, 2011 and 2010, certain outstanding stock options were not included in the determination of diluted EPS as their impact would be anti-dilutive. The following table shows the shares excluded from the diluted EPS calculation for all periods presented.

Fiscal Year

2012

2011

2010

(in thousands)

Options excluded

191

249

357