Supplemental Condensed Consolidating Guarantor Financial Statements

6 Months Ended

Jul. 03, 2011

Supplemental Condensed Consolidating Guarantor Financial Statements [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

NOTE 13 — SUPPLEMENTAL CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS

The Guarantor Subsidiaries, which consist of the Company’s principal domestic subsidiaries, are guarantors of the Company’s 11 3/8% Senior Secured Notes due 2013, its 9.5% Senior Subordinated Notes due 2014 and its 7 5/8% Senior Notes due 2018. These guarantees are full and unconditional. The Supplemental Guarantor Financial Statements are presented herein pursuant to requirements of the Commission.

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 3, 2011

			NON-		INTERFACE, INC.			CONSOLIDATION
	GUARANTOR		GUARANTOR		(PARENT			AND ELIMINATION			CONSOLIDATED
	SUBSIDIARIES		SUBSIDIARIES		CORPORATION)			ENTRIES			TOTALS
	(In thousands)
Net sales	$	172,328	$	138,845	$	—		$	(43,533	)	$	267,640
Cost of sales		126,770		89,628		—			(43,533	)		172,865
Gross profit on sales		45,558		49,217		—			—			94,775
Selling, general and administrative expenses		29,577		33,341		5,720			—			68,638
Operating income		15,981		15,876		(5,720	)		—			26,137
Interest/Other expense		12,031		3,418		(8,495	)		—			6,954
Income (loss) before taxes on income and equity in income of subsidiaries		3,950		12,458		2,775			—			19,183
Income tax expense (benefit)		1,311		4,136		922			—			6,369
Equity in income (loss) of subsidiaries		—		—		10,961			(10,961	)		—
Net income (loss)		2,639		8,322		12,814			(10,961	)		12,814
Net income (loss) attributable to Interface, Inc.	$	2,639	$	8,322	$	12,814		$	(10,961	)	$	12,814

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JULY 3, 2011

								CONSOLIDATION
			NON-		INTERFACE, INC.			AND
	GUARANTOR		GUARANTOR		(PARENT			ELIMINATION			CONSOLIDATED
	SUBSIDIARIES		SUBSIDIARIES		CORPORATION)			ENTRIES			TOTALS
	(In thousands)
Net sales	$	329,525	$	270,449	$	—		$	(86,932	)	$	513,042
Cost of sales		244,123		174,148		—			(86,932	)		331,339
Gross profit on sales		85,402		96,301		—			—			181,703
Selling, general and administrative expenses		55,900		62,839		15,299			—			134,038
Operating income (loss)		29,502		33,462		(15,299	)		—			47,665
Interest/Other expense		12,831		6,926		(6,269	)		—			13,488
Income (loss) before taxes on income and equity in income of subsidiaries		16,671		26,536		(9,030	)		—			34,177
Income tax expense (benefit)		5,697		8,990		(3,148	)		—			11,539
Equity in income (loss) of subsidiaries		—		—		28,520			(28,520	)		—
Net income (loss)		10,974		17,546		22,638			(28,520	)		22,638
Net income (loss) attributable to Interface, Inc.	$	10,974	$	17,546	$	22,638		$	(28,520	)	$	22,638

CONDENSED CONSOLIDATING BALANCE SHEET

JULY 3, 2011

				NON-			INTERFACE, INC.			CONSOLIDATION
	GUARANTOR			GUARANTOR			(PARENT			AND ELIMINATION			CONSOLIDATED
	SUBSIDIARIES			SUBSIDIARIES			CORPORATION)			ENTRIES			TOTALS
	(In thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,210		$	23,039		$	3,050		$	—		$	27,299
Accounts receivable		67,981			94,571			621			—			163,173
Inventories		92,450			78,067			—			—			170,517
Prepaids and deferred income taxes		9,745			18,576			10,813			—			39,134
Assets of business held for sale		—			1,200			—			—			1,200
Total current assets		171,386			215,453			14,484			—			401,323
Property and equipment less accumulated depreciation		83,598			99,756			4,936			—			188,290
Investment in subsidiaries		264,098			222,470			84,607			(571,175	)		—
Goodwill		6,954			74,194			—			—			81,148
Other assets		6,232			12,859			89,385			—			108,476
	$	532,268		$	624,732		$	193,412		$	(571,175	)	$	779,237
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	$	51,454		$	109,689		$	(10,268	)	$	—		$	150,875
Senior notes and senior subordinated notes		—			—			294,467			—			294,467
Deferred income taxes		1,614			11,175			(4,291	)		—			8,498
Other		1,978			5,083			28,018			—			35,079
Total liabilities		55,046			125,947			307,926			—			488,919
Common stock		94,145			102,199			6,546			(196,344	)		6,546
Additional paid-in capital		249,302			12,525			359,107			(261,827	)		359,107
Retained earnings (deficit)		135,182			417,460			(470,974	)		(111,896	)		(30,228	)
Foreign currency translation adjustment		(1,407	)		(4,510	)		(5,717	)		(1,108	)		(12,742	)
Pension liability		—			(28,889	)		(3,476	)		—			(32,365	)
	$	532,268		$	624,732		$	193,412		$	(571,175	)	$	779,237

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS
ENDED JULY 3, 2011

				NON-			INTERFACE, INC.			CONSOLIDATION AND
	GUARANTOR			GUARANTOR			(PARENT			ELIMINATION			CONSOLIDATED
	SUBSIDIARIES			SUBSIDIARIES			CORPORATION)			ENTRIES			TOTALS
	(In thousands)
Net cash provided by (used for) operating activities	$	(21,126	)	$	(152	)	$	2,804		$	(2,910	)	$	(21,384	)
Cash flows from investing activities:
Purchase of plant and equipment		(10,006	)		(8,456	)		(352	)		—			(18,814	)
Other		(79	)		(24	)		(1,892	)		—			(1,995	)
Net cash used for investing activities		(10,085	)		(8,480	)		(2,244	)		—			(20,809	)
Cash flows from financing activities:
Other		31,335			(1,724	)		(33,026	)		2,910			(505	)
Proceeds from issuance of common stock		—			—			2,579			—			2,579
Dividends paid		—			—			(2,612	)		—			(2,612	)
Net cash provided by (used for) financing activities		31,335			(1,724	)		(33,059	)		2,910			(538	)
Effect of exchange rate change on cash		—			794			—			—			794
Net increase (decrease) in cash		124			(9,562	)		(32,499	)		—			(41,937	)
Cash at beginning of period		1,086			32,601			35,549			—			69,236
Cash at end of period	$	1,210		$	23,039		$	3,050		$	—		$	27,299