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Shareholders' Equity
 12 Months Ended
Jan. 01, 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 in both 2022 and 2021, and $0.095 per share in 2020, to each share of Common Stock, including participating securities. 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 proper 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. 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 2022, 2021 and 2020:
 
 SHARESCOMMON STOCKADDITIONAL
PAID-IN
CAPITAL		RETAINED
EARNINGS		PENSION
LIABILITY		FOREIGN
CURRENCY
TRANSLATION
ADJUSTMENT		CASH FLOW
HEDGE
 (in thousands)
Balance, at January 2, 202259,055 $5,905 $253,110 $261,434 $(53,888)$(100,441)$(2,722)
Net income— — — 19,560 — — — 
Restricted stock issuances501 50 6,499 — — — — 
Unamortized compensation expense related to restricted stock awards— — (6,549)— — — — 
Cash dividends declared— — — (2,355)— — — 
Compensation expense related to stock awards, net of forfeitures and shares received for tax withholdings(66)(6)8,132 — — — — 
Share repurchases(1,384)(138)(17,033)— — — — 
Pension liability adjustment— — — — 26,340 — — 
Foreign currency translation adjustment— — — — — (38,334)— 
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 1,973 
Balance, at January 1, 202358,106 $5,811 $244,159 $278,639 $(27,548)$(138,775)$(749)
 SHARESCOMMON STOCKADDITIONAL
PAID-IN
CAPITAL		RETAINED
EARNINGS		PENSION
LIABILITY		FOREIGN
CURRENCY
TRANSLATION
ADJUSTMENT		CASH FLOW
HEDGE
 (in thousands)
Balance, at January 3, 202158,664 $5,865 $247,920 $208,562 $(69,288)$(60,331)$(6,190)
Net income— — — 55,234 — — — 
Restricted stock issuances429 43 6,066 — — — — 
Unamortized compensation expense related to restricted stock awards— — (6,109)— — — — 
Cash dividends declared— — — (2,362)— — — 
Compensation expense related to stock awards, net of forfeitures(38)(3)5,233 — — — — 
Pension liability adjustment— — — — 15,400 — — 
Foreign currency translation adjustment— — — — — (40,110)— 
Reclassification out of accumulated other comprehensive loss – discontinued cash flow hedge— — — — — — 3,468 
Balance, at January 2, 202259,055 $5,905 $253,110 $261,434 $(53,888)$(100,441)$(2,722)

 SHARESCOMMON STOCKADDITIONAL
PAID-IN
CAPITAL		RETAINED
EARNINGS		PENSION
LIABILITY		FOREIGN
CURRENCY
TRANSLATION
ADJUSTMENT		CASH FLOW HEDGE
 (in thousands)
Balance, at December 29, 201958,416 $5,842 $250,306 $286,056 $(56,700)$(113,139)$(4,163)
Net loss— — — (71,929)— — — 
Issuances of stock (other than restricted stock)239 24 195 — — — — 
Restricted stock issuances304 30 3,999 — — — — 
Unamortized compensation expense related to restricted stock awards— — (4,030)— — — — 
Cash dividends declared— — — (5,565)— — — 
Compensation expense related to stock awards, net of forfeitures(295)(31)(2,550)— — — — 
Pension liability adjustment— — — — (12,588)— — 
Foreign currency translation adjustment— — — — — 52,808 — 
Cash flow hedge unrealized loss— — — — — — (2,027)
Balance, at January 3, 202158,664 $5,865 $247,920 $208,562 $(69,288)$(60,331)$(6,190)
  
Stock Incentive Plans

The Company has stock incentive plans 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, deferred shares, performance shares and performance units.
 
In May 2015, the shareholders approved an amendment and restatement of the then-existing Omnibus Stock Incentive Plan. This amendment and restatement extended the term of the Omnibus Plan 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 under the 2015 plan pursuant to an award other than a stock option reduced the number of such authorized shares by 1.33 shares.

In May 2020, the shareholders approved the adoption of a new 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 (and the 1.33 multiplier discussed in the paragraph immediately above was eliminated). 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 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.

Stock Options
 
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. There was no stock option compensation expense during 2022, 2021 or 2020. There were no stock options outstanding or exercisable as of January 1, 2023 or January 2, 2022.
 
Restricted Stock Awards
 
During fiscal years 2022, 2021 and 2020, the Company granted restricted stock awards totaling 500,800, 428,400, and 308,100 shares, respectively, of Common Stock. The weighted average grant date fair value of restricted stock awards granted during 2022, 2021 and 2020 was $13.08, $14.26, and $13.08, 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 $5.3 million, $3.8 million and $1.3 million for 2022, 2021 and 2020, 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 January 1, 2023, as well as activity during the year:
 
 Restricted SharesWeighted Average
Grant Date
Fair Value
Outstanding at January 2, 2022683,800 $21.06 
Granted500,800 13.08 
Vested(141,900)16.59 
Forfeited or canceled(36,300)14.04 
Outstanding at January 1, 20231,006,400 $13.91 
 
As of January 1, 2023, the unrecognized total compensation cost related to unvested restricted stock was $5.8 million. That cost is expected to be recognized by the end of 2025.
 
Performance Share Awards
 
In each of the years 2022, 2021 and 2020, 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 January 1, 2023, as well as the activity during the year:
 
Performance SharesWeighted
Average Grant
Date Fair Value
Outstanding at January 2, 2022718,100 $14.98 
Granted366,900 13.02 
Vested(200)15.36 
Forfeited or canceled(161,200)16.62 
Outstanding at January 1, 2023923,600 $13.91 
 
Compensation expense (benefit) related to the performance shares for 2022, 2021 and 2020 was $3.2 million, $1.7 million and $(1.8) 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 $7.6 million as of January 1, 2023. Depending on the performance of the Company, any compensation expense related to these outstanding performance shares will be recognized by the end of 2025.
 
The tax benefit recognized with respect to restricted stock and performance shares was $0.8 million, $0.7 million, and $0.6 million in 2022, 2021 and 2020, respectively.