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Shareholders' Equity | 12 Months Ended
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Dec. 31, 2023
Stockholders' Equity Note [Abstract] |
Shareholders' Equity | SHAREHOLDERS’ EQUITY 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 $0.04 per share, including participating securities in each of years 2023, 2022 and 2021. 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 and the indenture governing its 5.50% Senior Notes due 2028, which specify 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 appropriate in light of the factors indicated above. In the second quarter of 2022, 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. No shares of common stock were repurchased pursuant to this program during 2023. During 2022, the Company repurchased and retired an aggregate of 1,383,682 shares, at a weighted average price of $12.41 per share, pursuant to this program. 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 fiscal years 2023, 2022 and 2021:
| SHARES |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | RETAINED EARNINGS |  | PENSION LIABILITY |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  | CASH FLOW HEDGE |  | TOTAL
| (in thousands)
Balance, at January 1, 2023 | 58,106 |  |  | $ | 5,811 |  |  | $ | 244,159 |  |  | $ | 278,639 |  |  | $ | (27,548) |  |  | $ | (138,775) |  |  | $ | (749) |  |  | $ | 361,537 |
Net income | — |  |  | — |  |  | — |  |  | 44,517 |  |  | — |  |  | — |  |  | — |  |  | 44,517 |
Issuances of stock related to restricted share units and performance shares | 85 |  |  | 8 |  |  | (8) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Restricted stock issuances | 107 |  |  | 11 |  |  | 749 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 760 |
Unrecognized compensation expense related to restricted stock awards | — |  |  | — |  |  | (760) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (760) |
Cash dividends declared | — |  |  | — |  |  | — |  |  | (2,323) |  |  | — |  |  | — |  |  | — |  |  | (2,323) |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | (186) |  |  | (19) |  |  | 8,769 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,750 |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | (6,468) |  |  | — |  |  | — |  |  | (6,468) |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,185 |  |  | — |  |  | 19,185 |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 749 |  |  | 749 |
Balance, at December 31, 2023 | 58,112 |  |  | $ | 5,811 |  |  | $ | 252,909 |  |  | $ | 320,833 |  |  | $ | (34,016) |  |  | $ | (119,590) |  |  | $ | — |  |  | $ | 425,947 |
| SHARES |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | RETAINED EARNINGS |  | PENSION LIABILITY |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  | CASH FLOW HEDGE |  | TOTAL
| (in thousands)
Balance, at January 2, 2022 | 59,055 |  |  | $ | 5,905 |  |  | $ | 253,110 |  |  | $ | 261,434 |  |  | $ | (53,888) |  |  | $ | (100,441) |  |  | $ | (2,722) |  |  | $ | 363,398 |
Net income | — |  |  | — |  |  | — |  |  | 19,560 |  |  | — |  |  | — |  |  | — |  |  | 19,560 |
Restricted stock issuances | 501 |  |  | 50 |  |  | 6,499 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,549 |
Unrecognized compensation expense related to restricted stock awards | — |  |  | — |  |  | (6,549) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,549) |
Cash dividends declared | — |  |  | — |  |  | — |  |  | (2,355) |  |  | — |  |  | — |  |  | — |  |  | (2,355) |
Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings | (66) |  |  | (6) |  |  | 8,132 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,126 |
Share repurchases | (1,384) |  |  | (138) |  |  | (17,033) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (17,171) |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | 26,340 |  |  | — |  |  | — |  |  | 26,340 |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (38,334) |  |  | — |  |  | (38,334) |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,973 |  |  | 1,973 |
Balance, at January 1, 2023 | 58,106 |  |  | $ | 5,811 |  |  | $ | 244,159 |  |  | $ | 278,639 |  |  | $ | (27,548) |  |  | $ | (138,775) |  |  | $ | (749) |  |  | $ | 361,537 |
| SHARES |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | RETAINED EARNINGS |  | PENSION LIABILITY |  | FOREIGN CURRENCY TRANSLATION ADJUSTMENT |  | CASH FLOW HEDGE |  | TOTAL
| (in thousands)
Balance, at January 3, 2021 | 58,664 |  |  | $ | 5,865 |  |  | $ | 247,920 |  |  | $ | 208,562 |  |  | $ | (69,288) |  |  | $ | (60,331) |  |  | $ | (6,190) |  |  | $ | 326,538 |
Net income | — |  |  | — |  |  | — |  |  | 55,234 |  |  | — |  |  | — |  |  | — |  |  | 55,234 |
Restricted stock issuances | 429 |  |  | 43 |  |  | 6,066 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,109 |
Unrecognized compensation expense related to restricted stock awards | — |  |  | — |  |  | (6,109) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,109) |
Cash dividends declared | — |  |  | — |  |  | — |  |  | (2,362) |  |  | — |  |  | — |  |  | — |  |  | (2,362) |
Compensation expense related to share-based plans, net of forfeitures | (38) |  |  | (3) |  |  | 5,233 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,230 |
Pension liability adjustment | — |  |  | — |  |  | — |  |  | — |  |  | 15,400 |  |  | — |  |  | — |  |  | 15,400 |
Foreign currency translation adjustment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (40,110) |  |  | — |  |  | (40,110) |
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,468 |  |  | 3,468 |
Balance, at January 2, 2022 | 59,055 |  |  | $ | 5,905 |  |  | $ | 253,110 |  |  | $ | 261,434 |  |  | $ | (53,888) |  |  | $ | (100,441) |  |  | $ | (2,722) |  |  | $ | 363,398 |
Stock Incentive Plan The Company has a stock incentive plan under which a committee of independent directors is authorized to grant directors and key employees, including officers, restricted stock, incentive stock options, nonqualified stock options, stock appreciation rights, restricted share units and performance shares. In May 2020, the shareholders approved the adoption of the 2020 Omnibus Stock Incentive Plan (“2020 Omnibus Plan”). The aggregate number of shares of common stock that may be issued or transferred under the 2020 Omnibus Plan on or after the effective date of the plan is 3,700,000. No award may be granted after the tenth anniversary of the effective date of the 2020 Omnibus Plan. 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 expense will be recognized over the period that the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. For certain restricted stock and restricted share unit awards with a graded vesting schedule, the Company has elected to recognize compensation expense on a straight-line basis over the requisite service period for the entire award. Restricted Stock Awards During fiscal years 2023, 2022 and 2021, the Company granted restricted stock awards totaling 107,100, 500,800, and 428,400 shares, respectively, of Common Stock. The weighted average grant date fair value of restricted stock awards granted during 2023, 2022 and 2021 was $7.10, $13.08, and $14.26, respectively. These awards (or a portion thereof) vest with respect to each recipient over a one to three-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, certain awards (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 $4.5 million, $5.3 million and $3.8 million for 2023, 2022 and 2021, 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 has reduced its expense for any restricted stock forfeited during the period. The expense related to awards of restricted stock is captured in SG&A expenses in the consolidated statements of operations. The following table summarizes restricted stock outstanding as of December 31, 2023, as well as activity during the year:
| Restricted Shares |  | Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023 | 1,006,400 |  |  | $ | 13.91 |
Granted | 107,100 |  |  | 7.10 |
Vested | (405,100) |  |  | 14.43 |
Forfeited or canceled | (16,800) |  |  | 13.60 |
Outstanding at December 31, 2023 | 691,600 |  |  | $ | 12.55 |
As of December 31, 2023, the unrecognized total compensation cost related to unvested restricted stock was $1.8 million. That cost is expected to be recognized over a weighted-average remaining vesting period of 0.7 years. Restricted Share Unit Awards During fiscal year 2023, the Company granted awards for 596,200 restricted share units to certain employees pursuant to the Company’s 2020 Omnibus Plan. There were no restricted share unit awards granted during 2022 or 2021. The weighted average grant date fair value of the restricted share units granted during 2023 was $10.36. Each restricted share unit represents one share of the Company’s common stock to be issued to the award recipient once the vesting criteria have been satisfied. Awards of restricted share units have a graded vesting schedule over a two to three-year period from the date of grant, provided the individual remains in the employment or service of the Company as of each vesting date. Additionally, certain awards (or a portion thereof) could vest earlier in the event of a change in control of the Company, upon involuntary termination without cause, or upon retirement provided certain eligibility criteria are met. Compensation expense related to the restricted share units was $1.9 million for 2023. There was no compensation expense related to restricted share unit awards during 2022 or 2021. These grants are made primarily to executive-level personnel at the Company and, as a result, no compensation costs have been capitalized. The Company has reduced its expense for any restricted share units forfeited during the period. The expense related to awards of restricted share units is captured in SG&A expenses in the consolidated statements of operations. The following table summarizes restricted share units outstanding as of December 31, 2023, as well as activity during the year:
| Restricted Share Units |  | Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023 | — |  |  | $ | — |
Granted | 596,200 |  |  | 10.36 |
Vested | (2,100) |  |  | 10.80 |
Forfeited or canceled | (10,700) |  |  | 10.80 |
Outstanding at December 31, 2023 | 583,400 |  |  | $ | 10.35 |
As of December 31, 2023, the unrecognized total compensation cost related to unvested restricted share units was $4.1 million. That cost is expected to be recognized over a weighted-average remaining vesting period of 2.1 years. Performance Share Awards In each of the years 2023, 2022 and 2021, 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 (among other things) 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 SG&A expenses in the consolidated statements of operations. The Company evaluates the probability of achieving the performance-based goals as of the end of each reporting period and adjusts compensation expense based on this assessment. The following table summarizes the performance shares outstanding as of December 31, 2023, as well as the activity during the year:
| Performance Shares |  | Weighted Average Grant Date Fair Value
Outstanding at January 1, 2023 | 923,600 |  |  | $ | 13.91 |
Granted | 467,500 |  |  | 10.79 |
Vested | (82,300) |  |  | 15.11 |
Forfeited or canceled | (193,800) |  |  | 14.79 |
Outstanding at December 31, 2023 | 1,115,000 |  |  | $ | 12.36 |
Compensation expense related to the performance shares for 2023, 2022 and 2021 was $3.9 million, $3.2 million and $1.7 million, respectively. The Company has reduced its expense for any performance shares forfeited during the period. Unrecognized compensation expense related to these performance shares was approximately $5.9 million as of December 31, 2023. The amount and timing of future compensation expense will depend on the performance of the Company. The compensation expense related to these outstanding performance shares is expected to be recognized over a weighted-average remaining vesting period of 1.7 years. The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was $0.9 million, $0.8 million, and $0.7 million in 2023, 2022 and 2021, respectively.

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