Earnings (Loss) Per Share

6 Months Ended

Jul. 03, 2011

Earnings (Loss) Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 3 — EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) attributable to common shareholders by dividing income from continuing operations attributable to common shareholders, income from discontinued operations attributable to common shareholders and net income attributable to common shareholders, by the weighted average common shares outstanding, including participating securities outstanding, during the period as discussed below. Diluted EPS reflects the potential dilution beyond shares for basic EPS that could occur if securities or other contracts to issue common stock were exercised, converted into common stock or resulted in the issuance of common stock that would have shared in the Company’s earnings. Income attributable to non-controlling interest in subsidiary is included in the calculation of basic and diluted EPS from continuing operations, where applicable.

The Company includes all unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted EPS calculations when the inclusion of these shares would be dilutive. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS. Distributed earnings include common stock dividends and dividends earned on unvested share-based payment awards. Undistributed earnings represent earnings that were available for distribution but were not distributed. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. The following tables show distributed and undistributed earnings:

	Three Months Ended				Six Months Ended
	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010
Earnings Per Share
Basic Earnings Per Share Attributable to Common Shareholders:
Distributed Earnings	$	0.02	$	0.01	$	0.04	$	0.01
Undistributed Earnings		0.18		0.11		0.31		0.14
Total	$	0.20	$	0.12	$	0.35	$	0.15
Diluted Earnings Per Share Attributable to Common Shareholders:
Distributed Earnings	$	0.02	$	0.01	$	0.04	$	0.01
Undistributed Earnings		0.18		0.11		0.31		0.14
Total	$	0.20	$	0.12	$	0.35	$	0.15

The following tables present net income and net income attributable to Interface, Inc. that was attributable to participating securities:

	Three Months Ended				Six Months Ended
	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010
	(In millions)
Net Income	$	0.3	$	0.2	$	0.6	$	0.2
Net Income Attributable to Interface, Inc.	$	0.3	$	0.1	$	0.6	$	0.2

The weighted average shares outstanding for basic and diluted EPS were as follows:

	Three Months Ended				Six Months Ended
	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010
	(In thousands)
Weighted Average Shares Outstanding		63,623		62,277		63,333		62,185
Participating Securities		1,775		1,238		1,775		1,238
Shares for Basic Earnings Per Share		65,398		63,515		65,108		63,423
Dilutive Effect of Stock Options		279		603		255		494
Shares for Diluted Earnings Per Share		65,677		64,118		65,363		63,917

For the three-month periods ended July 3, 2011, and July 4, 2010, options to purchase 20,000 and 205,000 shares of common stock, respectively, were not included in the computation of diluted EPS as their impact would be anti-dilutive. For the six-month periods ended July 3, 2011, and July 4, 2010, options to purchase 20,000 and 245,000 shares of common stock, respectively, were not included in the computation of diluted EPS as their impact would be anti-dilutive.