<SEC-DOCUMENT>0001437749-17-017756.txt : 20171221
<SEC-HEADER>0001437749-17-017756.hdr.sgml : 20171221
<ACCEPTANCE-DATETIME>20171027171511
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001437749-17-017756
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20171027

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTERFACE INC
		CENTRAL INDEX KEY:			0000715787
		STANDARD INDUSTRIAL CLASSIFICATION:	CARPETS AND RUGS [2273]
		IRS NUMBER:				581451243
		STATE OF INCORPORATION:			GA
		FISCAL YEAR END:			0101

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2859 PACES FERRY RD
		STREET 2:		STE 2000
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30339
		BUSINESS PHONE:		7704376800

	MAIL ADDRESS:	
		STREET 1:		2859 PACES FERRY RD
		STREET 2:		STE 2000
		CITY:			ATLANTA
		STATE:			2Q
		ZIP:			30339

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERFACE FLOORING SYSTEMS INC
		DATE OF NAME CHANGE:	19870817
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;text-transform:uppercase;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">INTERFACE, INC.</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2859 PACES FERRY ROAD, SUITE 2000</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ATLANTA, GEORGIA 30339</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">October 27, 2017</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><u><b>VIA EDGAR, E-Mail and UPS</b></u></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">U.S. Securities and Exchange Commission</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Division of Corporation Finance</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Washington, D.C. 20549</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Attention: Jennifer Thompson</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:left;margin-bottom:0pt;font-size:10pt;"><b>Re:</b></p>
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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:left;margin-bottom:0pt;font-size:10pt;"><b><font style="font-size:10pt;font-family:Times New Roman, Times, serif;">Interface, Inc.<br>
			Form 10-K for the Fiscal Year Ended January 1, 2017<br>
			Filed March 2, 2017<br>
			File No. 001-33994</font></b></p>
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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:0pt;margin-top:0pt;text-align:left;text-indent:-36pt;"><b>&nbsp;</b></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Dear Ms. Thompson:</p>

<p style="font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:37.5pt;">Interface, Inc. (&ldquo;<font style="font-family:Times New Roman, Times, serif;font-size:10pt;"><i><b>we</b></i>&rdquo;, &ldquo;<i><b>our</b></i>&rdquo;, &ldquo;<i><b>us</b></i>&rdquo; or the &ldquo;<i><b>Company</b></i>&rdquo;) has received the Staff&rsquo;s follow-up comment letter dated October 5, 2017 with respect to the above-referenced filing. On behalf of the Company, I provide the responses below to the Staff&rsquo;s&nbsp;follow-up comment.</font></p>

<p style="font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><u><b>Financial Statements </b></u></p>

<p style="font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><u><b>Notes to Consolidated Financial Statement</b></u><font style="font-family:Times New Roman, Times, serif;font-size:10pt;"><u><b>s</b></u></font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>&nbsp;</b></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><u><b>Note 15 <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">&ndash; Employee Benefit Plans, page 58</font></b></u></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>&nbsp;</b></p>

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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>1.</b></p>
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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>We have reviewed your response to comment 1. Please tell us your basis in U.S. GAAP, or any analogous situation in accepted pension accounting, for including the $32.2 million in your actual return on plan asset<font style="font-size:10pt;font-family:Times New Roman, Times, serif;">s and in the year-end plan asset fair value. We understand the asset treatment was done solely due to the fact that you included the indexation in the plan&rsquo;s benefit formula thus affecting the pension liability. If our understanding is not correct, please clarify. Also, explain to us in detail the impact on pension expense for the foreseeable future had this asset not been included in actual return on plan assets and year-end plan assets. Lastly, explain in detail how the inclusion in actual return on plan assets and year-end plan assets affected your expected return assumption, if at all. </font></b></p>
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<p style="font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;"><u><b>Response:</b></u></p>

<p style="font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">We address each component of the Staff<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">&rsquo;s follow-up comment below, restating the relevant question or request before our response.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">U.S. Securities and Exchange Commission</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">October 27, 2017</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Page 2</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;"><i>Summary</i></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;"><i>&nbsp;</i></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">As is common in Dutch pension plan<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">s, our Dutch defined benefit pension plan (the &ldquo;<i><b>Plan</b></i>&rdquo;) includes a provision for discretionary benefit increases termed &ldquo;indexation.&rdquo; The indexation benefit is meant to adjust pension benefits for cost-of-living increases, similar to U.S. consumer price index-based cost-of-living adjustments for U.S. retirement plans. The indexation benefit is not guaranteed, and is only provided for and paid out if sufficient assets are available due to favorable asset returns.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">To summarize our more detailed responses below, both the vested benefit amounts <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">as well as amounts related to the discretionary indexation benefits under the Plan are paid pursuant to an insurance contract with a private insurer (the &ldquo;<i><b>Contract</b></i>&rdquo;). The Plan itself is financed by investment assets held within the Contract. The Contract guarantees payment of vested amounts, regardless of whether Plan assets held through the Contract are ultimately sufficient to pay vested amounts, and also provides for payment of the indexation amount on a contingent basis if the actual return on Plan assets is sufficient to pay it. This type of insurance arrangement is common in The Netherlands, although not necessarily common in other jurisdictions.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">Because the prior actual and future projected returns on P<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">lan assets were determined to be sufficient to provide for the indexation benefit, the Company and the insurer agreed that it was appropriate to provide the indexation benefit (on a contingent basis, as explained above) under the Contract. The indexation benefit thus became an amount payable by the insurer under the Contract, and consequently was recorded as a Plan asset. The corresponding obligation to pay the indexation amount to pensioners thus became a pension liability.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>&#9679;</b></p>
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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>&ldquo;Please tell us your basis in U.S. GAAP, or any analogous situation in accepted pension accounting, for including the $32.2 million in your actual return on plan assets and in the year-end plan asset fair value. We understand the asset treatment was done solely due to the fact that you included the indexation in the plan<font style="font-size:10pt;font-family:Times New Roman, Times, serif;">&rsquo;s benefit formula thus affecting the pension liability. If our understanding is not correct, please clarify.&rdquo;</font></b></p>
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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">The asset did not arise because the Company determined to provide the indexation benefit; rather, the excess <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">return on Plan assets became sufficient to provide for the additional indexation benefit under the terms of the Contract and, upon agreement of the Company and the insurer, became an amount payable under the Contract, provided the underlying Contract assets are sufficient to pay it. The corresponding liability arose as a result of the obligation (albeit conditional) to pay the indexation benefit to pensioners, subject to the return on assets continuing to be sufficient.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">U.S. Securities and Exchange Commission</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">October 27, 2017</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Page 3</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">Amounts payable under the Contract (both vested amounts and the <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">contingent indexation benefit) are accounted for as Plan assets, and pension payment obligations are accounted for as Plan liabilities. The accounting treatment of the Plan assets and liabilities is set forth in more detail below.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;"><i>Plan Assets</i><font style="font-family:Times New Roman, Times, serif;font-size:10pt;"><i>&mdash;The Insurance Contract</i></font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">The fair value of the P<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">lan&rsquo;s assets is measured in accordance with ASC 715-30-35-60. This paragraph defines the fair value of investment contracts with insurance companies as follows: </font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&ldquo;Insurance contracts that are in substance equivalent to the purchase of annuities shall be accounted for as such. Other contracts with insurance entities shall be accounted for as investments and measured at fair value. For some contracts, the best available evidence of fair value may be contract value.</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">I<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">n accordance with this guidance, the Company began by considering the Contract&rsquo;s contract value as evidence of its fair value. Under the express terms of the Contract, contract value is the greater of (i) the value of the discounted vested benefits of the Plan (i.e., the benefit amount guaranteed by the insurance company), and (ii) the fair value of the underlying investment assets held by the insurance company under the Contract. As between those two values, the former was the greater. However, as explained above, the Contract also will pay the indexation benefit if sufficient assets are available, which Plan management found to be probable based on recent returns. Therefore, in addition to the value of the discounted vested benefits of the Plan, in determining the fair value of the Contract, Plan management determined that it was appropriate to include the value of the indexation payments that are being added to the vested benefit amounts, per ASC 715-30-35-35:</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&ldquo;<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">Automatic benefit increases specified by the plan (for example, automatic cost-of-living increases) that are expected to occur shall be included in measurements of the projected, accumulated, and vested benefit obligations, and the service cost component required by this Subtopic.&rdquo;</font><font style="font-family:Times New Roman, Times, serif;font-size:10pt;"><sup>1</sup></font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">As explained above, t<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">hese indexation benefits will be paid out of the Contract if asset returns continue to exceed expectations (asset returns were in excess of expectations by approximately &euro;3 million for each of the last two years). If the asset returns are not of an expected amount to allow for indexation, the Company and insurer can, at any time, remove this indexation benefit.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<hr style="text-align: left; height: 1px; color: rgb(0, 0, 0); background-color: rgb(0, 0, 0); width: 20%; border: medium none; margin: 3pt auto 3pt 0px;">
<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><sup>1</sup><font style="font-family:Times New Roman, Times, serif;font-size:10pt;"> The Company did consider that the quoted guidance refers to &ldquo;automatic&rdquo; benefit increases, whereas the indexation provision of the Plan is not &ldquo;automatic&rdquo; in the sense that indexation is optional and the Plan can discontinue indexation at its discretion.&nbsp; The Company however concluded this was the most analogous U.S. GAAP guidance to accounting for the indexation benefit.&nbsp; To the extent &ldquo;automatic&rdquo; refers to a cost-of-living adjustment being provided pursuant to the express terms of a retirement plan, we note that the indexation benefit is contemplated (as optional) by the express provisions of the Plan.</font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">U.S. Securities and Exchange Commission</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">October 27, 2017</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Page 4</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In future <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">applicable filings, the Company will include disclosure to clarify the nature of the assets held within the Plan as investment assets (i.e., the Contract) that include a guarantee of vested benefit obligations of the Plan as well as the contingent discretionary indexation benefit. The current disclosure shows these assets as equity assets based on the underlying nature of assets within the Contract. The Company will update the disclosure in future filings. </font></p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;"><i>Plan Liabilities</i></p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">A<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">ctuaries determined the Plan&rsquo;s projected benefit obligation (&ldquo;<i><b>PBO</b></i>&rdquo;) at the end of fiscal year 2016 as the actuarial present value of all the benefits attributed by the Plan&rsquo;s benefit formula to employee service rendered before our year end. In compliance with ASC 715-30-35-35, the benefit increases associated with the indexation have been included in the measurement of the PBO. </font></p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">P<font style="font-family:Times New Roman, Times, serif;font-size:10pt;">ension expense was based on service costs, interest costs, expected return on Plan assets, and amortization of the actuarial gains/losses out of accumulated other comprehensive income (&ldquo;<i><b>AOCI</b></i>&rdquo;). The decision to include indexation in the Plan benefits increased the PBO, but the resulting AOCI debit was offset by the credit to AOCI from the actual return on Plan assets being greater than expected return on Plan assets. Consequently, the indexation did not have any impact on expense for the current year and is not expected to have any significant effect in succeeding years. If Plan assets do not continue to perform at expected levels, Plan management anticipates that it would eliminate the discretionary indexation benefit. </font></p>

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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>&#9679;</b></p>
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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>&ldquo;<font style="font-size:10pt;font-family:Times New Roman, Times, serif;">Also, explain to us in detail the impact on pension expense for the foreseeable future had this asset not been included in actual return on plan assets and year-end plan assets.&rdquo;</font></b></p>
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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">As <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">explained in the responses above, the indexation payment obligation would not have arisen had the Plan asset not been created (due to it becoming an amount payable under the Contact). Accordingly, in such a case, there would have been neither any incremental pension expense nor any incremental Plan assets.</font></p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">U.S. Securities and Exchange Commission</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">October 27, 2017</p>

<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Page 5</p>

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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>&#9679;</b></p>
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			<p style="font-family:Times New Roman, Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>&ldquo;<font style="font-size:10pt;font-family:Times New Roman, Times, serif;">Lastly, expl</font></b><font style="font-size:10pt;font-family:Times New Roman, Times, serif;"><b>ain in detail how the inclusion </b><b>in actual return on plan assets and year-end plan assets affected your expected return assumption, if at all.&rdquo;</b></font></p>
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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:justify;">The Company complies with ASC 715-30-35-47 to determine the expected long-term rate of return on Plan assets. The expected return reflects the average rate of earnings expected on the <font style="font-family:Times New Roman, Times, serif;font-size:10pt;">Contract investment as well as funds to be invested in the Contract to provide for the benefits included in the projected benefit obligation. The historical actual return on Plan assets has been considered in establishing the future expected returns. The addition of the Plan asset related to the additional amounts payable under the Contract for the indexation benefit was considered as part of the totality in which assumptions are derived and applied. However, the expected return assumption did not change significantly in 2016.</font></p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">* * * * *</p>

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<p style="font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:31.25pt;">The Staff is requested to direct any further questions regarding this filing to the undersigned at (770) 437-6883. Thank you.</p>

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			<p style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">Sincerely,</p>

			<p style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt;">&nbsp;</p>

			<p style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">INTERFACE, INC.</p>
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			<p style="margin-top: 0; margin-bottom: 0;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&nbsp;</font></p>
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			<p style="margin-top: 0; margin-bottom: 0;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&nbsp;</font></p>
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			<p style="margin-top: 0; margin-bottom: 0;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">By: </font></p>
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			<p style="margin-top: 0; margin-bottom: 0;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">/s/&nbsp;</font><font style="font-family:Times New Roman, Times, serif; font-size:10pt">Gregory Bauer</font></p>
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			<p style="margin-top: 0; margin-bottom: 0;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&nbsp;</font></p>
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			<p style="margin-top: 0; margin-bottom: 0;"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&nbsp;</font></p>
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			<p style="margin-top: 0; margin-bottom: 0;">Gregory J. Bauer</p>
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			<p style="margin-top: 0; margin-bottom: 0;">Vice President</p>
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			<p style="margin: 0pt; text-align: justify; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">cc:<font style="font-family:Times New Roman, Times, serif;font-size:10pt;"> </font></p>
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			<p style="margin: 0pt; text-align: justify; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><font style="font-family:Times New Roman, Times, serif;font-size:10pt;">David B. Foshee, Vice President, General Counsel and Secretary</font></p>
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			<p style="margin: 0pt; text-align: justify; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">David M. Eaton, Esq., Kilpatrick Townsend &amp; Stockton LLP</p>
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