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Note 12 - Shareholders' Equity | 12 Months Ended
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Dec. 30, 2018
Notes to Financial Statements |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 1 2 – 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 cash dividends totaling $0.26 per share in 2018, $0.25 per share in 2017, and $0.22 per share in 2016, 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. 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 2016, the Company adopted a share purchase program to authorize the repurchase of up to $50 million of common stock. This program had no specific expiration date. During the first three months of 2017, the Company completed the $50 million repurchase program. In the second quarter of 2017, the Company adopted a new share repurchase program in which the Company is authorized to repurchase up to $100 million of its outstanding shares of common stock. The program has no specific expiration date. Pursuant to the above-described programs, the Company has repurchased shares in the past three years as follows. 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 2017, the Company repurchased and retired a combined total of 4,628,300 shares under these plans, at an average purchase price of $19.76 per share. During 2018, the Company repurchased and retired a combined total of 615,000 shares under these plans, at an average purchase price of $23.54 per share. As of December 30, 2018, the Company had approximately $25.1 million of availability remaining to purchase shares under the repurchase program put in place in 2017. 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 - 2018.
|  | 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 | )
|  | SHARES |  |  | AMOUNT |  |  | ADDITIONAL PAID-IN CAPITAL |  |  | RETAINED EARNINGS (DEFICIT) |  |  | PENSION LIABILITY |  |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  |  | CASH FLOW HEDGE |
|  | (in thousands) |  |  |  |  |
Balance, at January 1, 2017 |  |  | 64,238 |  |  | $ | 6,424 |  |  | $ | 359,451 |  |  | $ | 140,238 |  |  | $ | (54,862 | ) |  | $ | (110,522 | ) |  | $ | 0 |
Net income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 53,246 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Stock issuances under employee plans |  |  | 36 |  |  |  | 4 |  |  |  | 508 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other issuances of common stock |  |  | 253 |  |  |  | 25 |  |  |  | 4,507 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Unamortized stock compensation expense related to restricted stock awards |  |  | 0 |  |  |  | 0 |  |  |  | (4,532 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Cash dividends paid |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (15,487 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Forfeitures and compensation expense related to stock awards |  |  | (93 | ) |  |  | (9 | ) |  |  | 5,574 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Share Repurchases |  |  | (4,628 | ) |  |  | (463 | ) |  |  | (91,113 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Pension liability adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,692 | ) |  |  | 0 |  |  |  | 0 |
Foreign currency translation adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 31,579 |  |  |  | 0 |
Cash flow hedge unrealized gain (loss) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 904 |
Windfall tax benefit - share-based payment awards |  |  | 0 |  |  |  | 0 |  |  |  | (3,124 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Adoption of new accounting standard - share-based payment awards |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 9,435 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Balance, at December 31, 2017 |  |  | 59,806 |  |  | $ | 5,981 |  |  | $ | 271,271 |  |  | $ | 187,432 |  |  | $ | (56,554 | ) |  | $ | (78,943 | ) |  | $ | 904 |
|  | SHARES |  |  | AMOUNT |  |  | ADDITIONAL PAID-IN CAPITAL |  |  | RETAINED EARNINGS (DEFICIT) |  |  | PENSION LIABILITY |  |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  |  | CASH FLOW HEDGE |
|  | (in thousands) |  |  |  |  |
Balance, at December 31, 2017 |  |  | 59,806 |  |  | $ | 5,981 |  |  | $ | 271,271 |  |  | $ | 187,432 |  |  | $ | (56,554 | ) |  | $ | (78,943 | ) |  | $ | 904 |
Net income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 50,253 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Stock issuances under employee plans |  |  | 224 |  |  |  | 22 |  |  |  | 476 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other issuances of common stock |  |  | 182 |  |  |  | 18 |  |  |  | 4,809 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Unamortized stock compensation expense related to restricted stock awards |  |  | 0 |  |  |  | 0 |  |  |  | (4,710 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Cash dividends paid |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (15,471 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Forfeitures and compensation expense related to stock awards |  |  | (89 | ) |  |  | (9 | ) |  |  | 12,847 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Share Repurchases |  |  | (615 | ) |  |  | (61 | ) |  |  | (14,424 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Pension liability adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 12,944 |  |  |  | 0 |  |  |  | 0 |
Foreign currency translation adjustment |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (22,544 | ) |  |  | 0 |
Cash flow hedge unrealized gain |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 422 |
Balance, at December 30, 2018 |  |  | 59,508 |  |  | $ | 5,951 |  |  | $ | 270,269 |  |  | $ | 222,214 |  |  | $ | (43,610 | ) |  | $ | (101,487 | ) |  | $ | 1,326 |
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 2015 and therefore there were no stock option compensation expenses during 2018, 2017 or 2016. The following table summarizes stock options outstanding as of December 30, 2018, as well as activity during the previous fiscal year:
|  | Shares |  |  | Weighted Average Exercise Price |
Outstanding at December 31, 2017 |  |  | 82,500 |  |  | $ | 8.53 |
Granted |  |  | 0 |  |  |  | 0 |
Exercised |  |  | 40,000 |  |  |  | 7.43 |
Forfeited or cancelled |  |  | 0 |  |  |  | 0 |
Outstanding at December 30, 2018 (a) |  |  | 42,500 |  |  | $ | 9.56 |
Exercisable at December 30, 2018 (b) |  |  | 42,500 |  |  | $ | 9.56 |
(a) At December 30, 2018, the weighted-average remaining contractual life of options outstanding was 1.0 years. (b) At December 30, 2018, the weighted-average remaining contractual life of options exercisable was 1.0 years. At December 30, 2018, the aggregate intrinsic values of in-the-money options outstanding and options exercisable were $0.2 million and $0.2 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 range of exercise prices of the remaining stock options is from $4.31 to $12.43 per option. Restricted Stock Awards During fiscal years 2018, 2017 and 2016, the Company granted restricted stock awards totaling 194,000, 253,000, and 277,000 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 in the event of a change in control of the Company, or upon involuntary termination without cause. Compensation expense related to awards of restricted stock was $4.1 million, $2.8 million and $4.7 million for 2018, 2017 and 2016, respectively. These grants are made primarily to executive-level personnel at the Company and, as a result, no compensation costs have been capitalized. The Company estimates forfeitures for restricted stock and reduces 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 outstanding as of December 30, 2018, as well as activity during the previous fiscal year:
|  | Shares |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 1, 2018 |  |  | 463,000 |  |  | $ | 17.79 |
Granted |  |  | 194,000 |  |  |  | 25.57 |
Vested |  |  | 83,500 |  |  |  | 17.75 |
Forfeited or cancelled |  |  | 24,500 |  |  |  | 20.41 |
Outstanding at December 30, 2018 |  |  | 549,000 |  |  | $ | 27.65 |
As of December 30, 2018, the unrecognized total compensation cost related to unvested restricted stock was $4.2 million. That cost is expected to be recognized by the end of 2021. 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. Performance Share Awards In each of the years 2016 - 2018, 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 December 30, 2018, as well as the activity during the year:
|  | Performance Shares |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 1, 2018 |  |  | 669,500 |  |  | $ | 17.51 |
Granted |  |  | 261,000 |  |  |  | 25.69 |
Vested |  |  | 134,000 |  |  |  | 17.72 |
Forfeited or canceled |  |  | 37,000 |  |  |  | 19.93 |
Outstanding at December 30, 2018 |  |  | 759,500 |  |  | $ | 20.17 |
Compensation expense related to the performance shares for 2018, 2017, and 2016 was $10.4 million, $4.5 million and $1.2 million, respectively. Unrecognized compensation expense related to these performance shares was approximately $4.0 million as of December 30, 2018. The tax benefit recognized with respect to restricted stock and performance shares was $2.4 million, $2.6 million, and $2.0 million in 2018, 2017, and 2016, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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