Supplemental Condensed Consolidating Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2013


	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	130,708	$	111,873	$	0		$	(32,212	)	$	210,369
Cost of sales		95,709		75,620		0			(32,212	)		139,117

Gross profit on sales		34,999		36,253		0			0			71,252
Selling, general and administrative expenses		22,697		26,092		8,469			0			57,258

Operating income (loss)		12,302		10,161		(8,469	)		0			13,994
Interest/Other expense		5,971		2,945		(2,351	)		0			6,565

Income (loss) before taxes on income and equity in income of subsidiaries		6,331		7,216		(6,118	)		0			7,429
Income tax expense (benefit)		368		419		(355	)		0			432
Equity in income (loss) of subsidiaries		0		0		12,760			(12,760	)		0

Net income (loss)	$	5,963	$	6,797	$	6,997		$	(12,760	)	$	6,997

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)		CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	5,963		$	6,797		$	6,997	$	(12,760	)	$	6,997
Currency Translation Adjustment		(7	)		(6,314	)		162		0			(6,159	)
Pension Liability Adjustment		0			1,812			73		0			1,885

Comprehensive Income (Loss)	$	5,956		$	2,295		$	7,232	$	(12,760	)	$	2,723

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2013


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,184		$	22,667		$	40,228		$	0		$	65,079
Accounts receivable		44,131			69,028			660			0			113,819
Inventories		71,301			86,218			0			0			157,519
Prepaids and deferred income taxes		6,093			50,216			14,610			0			70,919

Total current assets		123,709			228,129			55,498			0			407,336
Property and equipment less accumulated depreciation		77,972			92,817			3,150			0			173,939
Investment in subsidiaries		558,798			220,556			(151,552	)		(627,802	)		0
Goodwill		6,542			66,771			0			0			73,313
Other assets		1,275			9,057			107,287			0			117,619

	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	31,975		$	105,704		$	8,278		$	0		$	145,957
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			9,861			(3,459	)		0			6,402
Other		4			1,581			44,775			0			46,360

Total liabilities		31,979			117,146			324,594			0			473,719
Redeemable preferred stock		0			0			0			0			0
Common stock		94,145			102,199			6,617			(196,344	)		6,617
Additional paid-in capital		249,302			12,525			368,383			(261,827	)		368,383
Retained earnings (deficit)		394,820			438,138			(674,730	)		(169,631	)		(11,403	)
AOCI—Foreign currency translation adjustment		(1,950	)		(23,005	)		(6,548	)		0			(31,503	)
AOCI—Pension liability		0			(29,673	)		(3,933	)		0			(33,606	)

	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS

ENDED MARCH 31, 2013


	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net cash provided by (used for) operating activities	$	(5,666	)	$	(11,246	)	$	9,509		$	(1,594	)	$	(8,997	)

Cash flows from investing activities:
Purchase of plant and equipment		(5,624	)		(9,252	)		(7	)		0			(14,883	)
Other		9			(209	)		(285	)		0			(485	)

Net cash used for investing activities		(5,615	)		(9,461	)		(292	)		0			(15,368	)

Cash flows from financing activities:
Proceeds from issuance of common stock		0			0			868			0			868
Other		9,533			7,352			(18,479	)		1,594			0
Dividends paid		0			0			(1,654	)		0			(1,654	)

Net cash provided by (used for) financing activities		9,533			7,352			(19,265	)		1,594			(786	)
Effect of exchange rate change on cash		0			(303	)		0			0			(303	)

Net increase (decrease) in cash		(1,748	)		(13,658	)		(10,048	)		0			(25,454	)
Cash at beginning of period		3,932			36,325			50,276			0			90,533

Cash at end of period	$	2,184		$	22,667		$	40,228		$	0		$	65,079