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Note 10 - Stockholders' Equity | 12 Months Ended
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Jan. 01, 2017
Notes to Financial Statements |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 10 – SHAREHOLDERS’ EQUITY Prior to March 5, 2012, the Company had two classes of common stock – Class A Common Stock and Class B Common Stock. On March 5, 2012, the number of issued and outstanding shares of Class B Common Stock constituted less than 10% of the aggregate number of issued and outstanding shares of the Company’s Class A Common Stock and Class B Common Stock, as the cumulative result of varied transactions that caused the conversion of shares of Class B Common Stock into shares of Class A Common Stock. Accordingly, the Class A Common Stock and Class B Common Stock are now, irrevocably from March 5, 2012, a single class of Common Stock in all respects. Following the March 5, 2012 event, the Company is authorized to issue 120 million shares of $0.10 par value Common Stock. The Company’s Common Stock is traded on the Nasdaq Global Select Market under the symbol TILE. The Company paid dividends totaling $0.22 per share in 2016, $0.18 per share in 2015 and $0.14 per share during 2014, to each share of Common Stock. The future declaration and payment of dividends is at the discretion of the Company’s Board, and depends upon, among other things, the Company’s investment policy and opportunities, results of operations, financial condition, cash requirements, future prospects, and other factors that may be considered relevant at the time of the Board’s determination. Such other factors include limitations contained in the agreement for its syndicated credit facility, which specifies conditions as to when any dividend payments may be made. As such, the Company may discontinue its dividend payments in the future if its Board determines that a cessation of dividend payments is proper in light of the factors indicated above. On October 7, 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. During 2014, the Company repurchased and retired 500,000 shares of common stock at an average purchase price of $15.30 per share. On November 19, 2015, the Board of Directors amended the program to provide that the 500,000 shares of common stock previously approved for repurchases for the 2016 fiscal year may be repurchased by the Company, in management’s discretion, during the period commencing on November 19, 2015 and ending at the conclusion of fiscal year 2016. In the second quarter of 2016, the Company amended the share purchase program to authorize the repurchase of up to $50 million of common stock. This amended program has no specific expiration date. During 2016, the Company repurchased and retired 1,177,600 shares of common stock at a weighted average purchase price of $15.68 per share. During 2015, the Company repurchased and retired 650,000 shares of common stock at an average purchase price of $20.47 per share. All treasury stock is accounted for using the cost method. The following tables depict the activity in the accounts which make up shareholders equity for the years 2016, 2015 and 2014.
|  | SHARES |  |  | AMOUNT |  |  | ADDITIONAL PAID-IN CAPITAL |  |  | RETAINED EARNINGS (DEFICIT) |  |  | PENSION LIABILITY |  |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |
|  | (in thousands) |
Balance, at December 29, 2013 |  |  | 66,311 |  |  | $ | 6,631 |  |  | $ | 374,597 |  |  | $ | 24,226 |  |  | $ | (34,082 | ) |  | $ | (30,585 | )
Net income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 24,808 |  |  |  | 0 |  |  |  | 0 |
Stock issuances under employee option plans |  |  | 55 |  |  |  | 5 |  |  |  | 381 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other issuances of common stock |  |  | 489 |  |  |  | 49 |  |  |  | 10,361 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Unamortized stock compensation expense related to restricted stock awards |  |  | 0 |  |  |  | 0 |  |  |  | (10,410 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Cash dividends paid |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (9,297 | ) |  |  | 0 |  |  |  | 0 |
Forfeitures and compensation expense related to stock awards |  |  | (387 | ) |  |  | (38 | ) |  |  | 1,293 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Share repurchases |  |  | (500 | ) |  |  | (50 | ) |  |  | (7,619 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Pension liability adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (15,280 | ) |  |  | 0 |
Foreign currency translation adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (28,351 | )
Other |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Balance, at December 28, 2014 |  |  | 65,968 |  |  | $ | 6,597 |  |  | $ | 368,603 |  |  | $ | 39,737 |  |  | $ | (49,362 | ) |  | $ | (58,936 | )
|  | SHARES |  |  | AMOUNT |  |  | ADDITIONAL PAID-IN CAPITAL |  |  | RETAINED EARNINGS (DEFICIT) |  |  | PENSION LIABILITY |  |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |
|  | (in thousands) |
Balance, at December 28, 2014 |  |  | 65,968 |  |  | $ | 6,597 |  |  | $ | 368,603 |  |  | $ | 39,737 |  |  | $ | (49,362 | ) |  | $ | (58,936 | )
Net income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 72,418 |  |  |  | 0 |  |  |  | 0 |
Stock issuances under employee option plans |  |  | 39 |  |  |  | 4 |  |  |  | 355 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other issuances of common stock |  |  | 597 |  |  |  | 59 |  |  |  | 9,746 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Unamortized stock compensation expense related to restricted stock awards |  |  | 0 |  |  |  | 0 |  |  |  | (9,806 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Cash dividends paid |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (11,885 | ) |  |  | 0 |  |  |  | 0 |
Forfeitures and compensation expense related to stock awards |  |  | (253 | ) |  |  | (25 | ) |  |  | 14,670 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Share repurchases |  |  | (650 | ) |  |  | (65 | ) |  |  | (13,241 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Pension liability adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 6,072 |  |  |  | 0 |
Foreign currency translation adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (32,575 | )
Other |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Balance, at January 3, 2016 |  |  | 65,701 |  |  | $ | 6,570 |  |  | $ | 370,327 |  |  | $ | 100,270 |  |  | $ | (43,290 | ) |  | $ | (91,511 | )
|  | SHARES |  |  | AMOUNT |  |  | ADDITIONAL PAID-IN CAPITAL |  |  | RETAINED EARNINGS (DEFICIT) |  |  | PENSION LIABILITY |  |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |
|  | (in thousands) |
Balance, at January 3, 2016 |  |  | 65,701 |  |  | $ | 6,570 |  |  | $ | 370,327 |  |  | $ | 100,270 |  |  | $ | (43,290 | ) |  | $ | (91,511 | )
Net income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 54,162 |  |  |  | 0 |  |  |  | 0 |
Stock issuances under employee plans |  |  | 17 |  |  |  | 2 |  |  |  | 251 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other issuances of common stock |  |  | 277 |  |  |  | 28 |  |  |  | 4,726 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Unamortized stock compensation expense related to restricted stock awards |  |  | 0 |  |  |  | 0 |  |  |  | (4,754 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Cash dividends paid |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (14,285 | ) |  |  | 0 |  |  |  | 0 |
Forfeitures and compensation expense related to stock awards |  |  | (579 | ) |  |  | (58 | ) |  |  | 979 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Share Repurchases |  |  | (1,178 | ) |  |  | (118 | ) |  |  | (18,378 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Pension liability adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (11,572 | ) |  |  | 0 |
Foreign currency translation adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (19,011 | )
Windfall tax benefit - share-based payment awards |  |  | 0 |  |  |  | 0 |  |  |  | 6,300 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 91 |  |  |  | 0 |  |  |  | 0 |
Balance, at January 1, 2017 |  |  | 64,238 |  |  | $ | 6,424 |  |  | $ | 359,451 |  |  | $ | 140,238 |  |  | $ | (54,862 | ) |  | $ | (110,522 | )
Stock Options The Company has an Omnibus Stock Incentive Plan (“Omnibus Plan”) under which a committee of independent directors is authorized to grant directors and key employees, including officers, options to purchase the Company’s Common Stock. Options are exercisable for shares of Common Stock at a price not less than 100% of the fair market value on the date of grant. The options become exercisable either immediately upon the grant date or ratably over a time period ranging from one to five years from the date of the grant. The Company’s options expire at the end of time periods ranging from three to ten years from the date of the grant. In May 2015, the shareholders approved an amendment and restatement of the Omnibus Plan. This amendment and restatement extended the term of the Omnibus Plan until February 2025, and set the number of shares authorized for issuance or transfer on or after the effective date of the amendment and restatement at 5,161,020 shares, except that each share issued pursuant to an award other than a stock option reduces the number of such authorized shares by 1.33 shares. Accounting standards require that the Company measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair market value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. The grant date fair value for options and similar instruments will be estimated using option pricing models. Under accounting standards, the Company is required to select a valuation technique or option pricing model. The Company uses the Black-Scholes model. Accounting standards require that the Company estimate forfeitures for stock options and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward. This expense reduction is not significant to the Company. All outstanding stock options vested prior to 2014 and therefore there were no stock option compensation expenses during 2014, 2015 or 2016. The expense for stock options is included in selling, general and administrative expense on the Company’s consolidated statements of operations, as none of these stock options have been issued to production personnel. The following table summarizes stock options outstanding as of January 1, 2017, as well as activity during the previous fiscal year:
|  | Shares |  |  | Weighted Average Exercise Price |
Outstanding at January 3, 2016 |  |  | 87,500 |  |  | $ | 8.75 |
Granted |  |  | 0 |  |  |  | 0 |
Exercised |  |  | 0 |  |  |  | 0 |
Forfeited or cancelled |  |  | 0 |  |  |  | 0 |
Outstanding at January 1, 2017 (a) |  |  | 87,500 |  |  | $ | 8.75 |
Exercisable at January 1, 2017 (b) |  |  | 87,500 |  |  | $ | 8.75 |
(a) At January 1, 2017, the weighted-average remaining contractual life of options outstanding was 2.9 years. (b) At January 1, 2017, the weighted-average remaining contractual life of options exercisable was 2.9 years. At January 1, 2017, the aggregate intrinsic values of in-the-money options outstanding and options exercisable were $0.9 million and $0.9 million, respectively (the intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option). The intrinsic value of stock options exercised in 2015 and 2014 was $0.4 million and $0.6 million, respectively. The cash proceeds related to stock options exercised in 2015 and 2014 were $0.4 million and $0.4 million, respectively. The tax benefit recognized with respect to stock options during all presented years was not significant.
|  |  |  |  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  |  | Number Outstanding at January 1, 2017 |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Weighted Average Exercise Price |  |  | Number Exercisable at January 1, 2017 |  |  | Weighted Average Exercise Price |
$4.01 | – | $5.00 |  |  |  | 40,000 |  |  |  | 2.0 |  |  | $ | 4.31 |  |  |  | 40,000 |  |  | $ | 4.31 |
$12.00 | – | $14.00 |  |  |  | 47,500 |  |  |  | 3.7 |  |  |  | 12.49 |  |  |  | 47,500 |  |  |  | 12.49 |
|  |  |  |  |  | 87,500 |  |  |  | 2.9 |  |  | $ | 8.75 |  |  |  | 87,500 |  |  | $ | 8.75 |
Restricted Stock Awards During fiscal years 2016, 2015 and 2014, the Company granted restricted stock awards totaling 277,000, 597,000 and 489,000 shares, respectively, of Common Stock. These awards (or a portion thereof) vest with respect to each recipient over a two to five year period from the date of grant, provided the individual remains in the employment or service of the Company as of the vesting date. Additionally, these shares (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause. Compensation expense related to the vesting of restricted stock was $4.7 million, $13.9 million and $4.0 million for 2016, 2015 and 2014, respectively. These grants are made primarily to executive-level personnel at the Company and, as a result, no compensation costs have been capitalized. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward. The forfeiture rate has been developed using historical data regarding actual forfeitures as well as an estimate of future expected forfeitures under our restricted stock grants. The following table summarizes restricted stock activity as of January 1, 2017, and during the previous fiscal year:
|  | Shares |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 3, 2016 |  |  | 1,470,000 |  |  | $ | 17.92 |
Granted |  |  | 277,000 |  |  |  | 17.32 |
Vested |  |  | 1,009,500 |  |  |  | 18.46 |
Forfeited or cancelled |  |  | 232,500 |  |  |  | 16.73 |
Outstanding at January 1, 2017 |  |  | 505,000 |  |  | $ | 17.05 |
As of January 1, 2017, the unrecognized total compensation cost related to unvested restricted stock was $2.8 million. That cost is expected to be recognized by the end of 2019. As stated above, accounting standards require the Company to estimate forfeitures in calculating the expense related to stock-based compensation, as opposed to only recognizing these forfeitures and the corresponding reduction in expense as they occur. The tax benefit recognized with respect to restricted stock during the years 2016, 2015 and 2014 was $2.0 million, $5.5 million and $1.0 million, respectively. Performance Share Awards In 2016, the Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of one to three years, subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200%) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. The expense related to these performance shares is captured in selling, general and administrative expense on the consolidated statement of operations. The following table summarizes the performance shares outstanding as of January 1, 2017, as well as the activity during the year:
|  | Performance Shares |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 3, 2016 |  |  | 0 |  |  | $ | 0 |
Granted |  |  | 444,000 |  |  |  | 17.21 |
Vested |  |  | 17,000 |  |  |  | 17.22 |
Forfeited or canceled |  |  | 58,000 |  |  |  | 17.22 |
Outstanding at January 1, 2017 |  |  | 369,000 |  |  | $ | 17.20 |
Compensation expense related to the performance shares for 2016 was $1.2 million. Unrecognized compensation expense related to these performance shares was approximately $4.3 million as of January 1, 2017. No performance shares were granted or outstanding during 2015 or 2014. There was no significant tax benefit recognized with regard to the performance shares in 2016.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(29)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(31)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(30)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(d)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 + Details
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