SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 30, 2012

Condensed Consolidating Comprehensive Income

STATEMENT OF COMPREHENSIVE INCOME FOR YEAR 2012

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(in thousands)
Net Income	$	3,136		$	5,631	$	5,943		$	(8,767	)	$	5,943
Currency Translation Adjustment		(244	)		8,438		345			0			8,539
Pension Liability Adjustment		0			1,779		(1,008	)		0			771
Comprehensive Income (Loss)	$	2,892		$	15,848	$	5,280		$	(8,767	)	$	15,253

STATEMENT OF COMPREHENSIVE INCOME FOR YEAR 2011

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(in thousands)
Net Income	$	19,409		$	25,796		$	38,721		$	(45,205	)	$	38,721
Currency Translation Adjustment		(250	)		(6,782	)		(582	)		0			(7,614	)
Pension Liability Adjustment		0			(5,735	)		669			0			(5,066	)
Comprehensive Income (Loss)	$	19,159		$	13,279		$	38,808		$	(45,205	)	$	26,041

STATEMENT OF COMPREHENSIVE INCOME FOR YEAR 2010

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(in thousands)
Net Income	$	17,058	$	27,331		$	8,283		$	(43,338	)	$	9,334
Currency Translation Adjustment		31		(2,257	)		472			0			(1,754	)
Pension Liability Adjustment		0		2,442			(452	)		0			1,990
Comprehensive Income Attributable to Noncontrolling Interest		0		(1,509	)		0			0			(1,509	)
Comprehensive Income (Loss)	$	17,089	$	26,007		$	8,303		$	(43,338	)	$	8,061

Condensed Consolidating Statement of Operations

STATEMENT OF OPERATIONS FOR YEAR 2012

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES		INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
Net sales	$	589,330		$	487,947	$	0		$	(145,257	)	$	932,020
Cost of sales		433,949			326,149		0			(145,257	)		614,841
Gross profit on sales		155,381			161,798		0			0			317,179
Selling, general and administrative expenses		94,266			117,922		19,170			0			231,358
Expenses related to Australia fire		0			1,677		71			0			1,748
Restructuring and asset impairment charges		1,143			18,032		250			0			19,425
Operating income (loss)		59,972			24,167		(19,491	)		0			64,648
Interest/other expense		29,368			12,923		(15,746	)		0			26,545
Income (loss) before taxes on income and equity in income of subsidiaries		30,604			11,244		(3,745	)		0			38,103
Income tax expense (benefit)		10,512			5,613		(921	)		0			15,204
Equity in income (loss) of subsidiaries		0			0		8,767			(8,767	)		0
Income (loss) from continuing operations		20,092			5,631		5,943			(8,767	)		22,899
Income (loss) from discontinued operations, net of tax		(16,956	)		0		0			0			(16,956	)
Net income (loss)	$	3,136		$	5,631	$	5,943		$	(8,767	)	$	5,943

STATEMENT OF OPERATIONS FOR YEAR 2011

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
Net sales	$	584,294	$	538,616		$	0		$	(169,865	)	$	953,045
Cost of sales		437,063		351,105			0			(169,865	)		618,303
Gross profit on sales		147,231		187,511			0			0			334,742
Selling, general and administrative expenses		89,874		127,128			26,285			0			243,287
Restructuring and asset impairment charges		609		5,061			85			0			5,755
Operating income (loss)		56,748		55,322			(26,370	)		0			85,700
Interest/Other expense		28,453		14,754			(16,417	)		0			26,790
Income (loss) before taxes on income and equity in income of subsidiaries		28,295		40,568			(9,953	)		0			58,910
Income tax expense (benefit)		9,992		14,117			(3,469	)		0			20,640
Equity in income (loss) of subsidiaries		0		0			45,205			(45,205	)		0
Income (loss) from continuing operations		18,303		26,451			38,721			(45,205	)		38,270
Income (loss) on discontinued operations, net of tax		1,106		(655	)		0			0			451
Net income (loss)		19,409		25,796			38,721			(45,205	)		38,721
Income attributable to non-controlling interest in subsidiary		0		0			0			0			0
Net income (loss) attributable to Interface, Inc.	$	19,409	$	25,796		$	38,721		$	(45,205	)	$	38,721

STATEMENT OF OPERATIONS FOR YEAR 2010

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE, INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
Net sales	$	521,481		$	484,195		$	0		$	(143,362	)	$	862,314
Cost of sales		387,101			305,445			0			(143,362	)		549,184
Gross profit on sales		134,380			178,750			0			0			313,130
Selling, general and administrative expenses		78,393			117,173			21,514			0			217,080
Restructuring charges		230			2,713			0			0			2,943
Operating income (loss)		55,757			58,864			(21,514	)		0			93,107
Interest/Other expense		27,099			12,572			(5,856	)		0			33,815
Bond retirement expenses		0			0			44,379			0			44,379
Income (loss) before taxes on income and equity in income of subsidiaries		28,658			46,292			(60,037	)		0			14,913
Income tax expense (benefit)		11,373			18,225			(24,982	)		0			4,616
Equity in income (loss) of subsidiaries		0			0			43,338			(43,338	)		0
Income (loss) from continuing operations		17,285			28,067			8,283			(43,338	)		10,297
Income (loss) on discontinued operations, net of tax		(227	)		(736	)		0			0			(963	)
Net income (loss)		17,058			27,331			8,283			(43,338	)		9,334
Income attributable to non-controlling interest in subsidiary		0			(1,051	)		0			0			(1,051	)
Net income (loss) attributable to Interface, Inc.	$	17,058		$	26,280		$	8,283		$	(43,338	)	$	8,283

Condensed Consolidating Balance Sheet

BALANCE SHEET AS OF DECEMBER 30, 2012

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	4,072		$	36,186		$	50,275		$	0		$	90,533
Accounts receivable		59,108			77,710			495			0			137,313
Inventories		64,134			77,042			0			0			141,176
Prepaids and deferred income taxes		4,274			43,979			13,376			0			61,629
Assets of business held for sale		0			0			0			0			0
Total current assets		131,588			234,917			64,146			0			430,651
Property and equipment less accumulated depreciation		75,692			86,760			3,273			0			165,725
Investment in subsidiaries		492,576			193,625			(149,980	)		(536,221	)		0
Goodwill		6,542			69,130			0			0			75,672
Other assets		1,911			9,190			106,218			0			117,319
Total assets	$	708,309		$	593,622		$	23,657		$	(536,221	)	$	789,367
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:	$	56,766		$	82,300		$	22,760		$	0		$	161,826
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			10,815			(3,476	)		0			7,339
Other		3			2,618			46,879			0			49,500
Total liabilities		56,769			95,733			341,163			0			493,665
Shareholders’ equity
Common stock		81,844			102,199			6,606			(184,043	)		6,606
Additional paid-in capital		182,782			12,525			366,677			(195,307	)		366,677
Retained earnings (deficit)		388,857			431,341			(680,073	)		(156,871	)		(16,746	)
Foreign currency translation adjustment		(1,943	)		(16,691	)		(6,710	)		0			(25,344	)
Pension liability		0			(31,485	)		(4,006	)		0			(35,491	)
Total shareholders’ equity	$	651,540		$	497,889		$	(317,506	)	$	(536,221	)	$	295,702
	$	708,309		$	593,622		$	23,657		$	(536,221	)	$	789,367

BALANCE SHEET AS OF JANUARY 1, 2012

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,090		$	35,874		$	13,660		$	0		$	50,624
Accounts receivable		57,745			82,429			626			0			140,800
Inventories		69,947			70,538			0			0			140,485
Prepaids and deferred income taxes		5,158			16,040			9,023			0			30,221
Assets of business held for sale		60,683			0			0			0			60,683
Total current assets		194,623			204,881			23,309			0			422,813
Property and equipment less accumulated depreciation		70,109			103,741			4,075			0			177,925
Investment in subsidiaries		286,328			184,108			116,316			(586,752	)		0
Goodwill		6,954			67,603			0			0			74,557
Other assets		1,197			9,680			86,100			0			96,977
Total assets	$	559,211		$	570,013		$	229,800		$	(586,752	)	$	772,272
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:	$	55,487		$	84,455		$	11,246		$	0		$	151,188
Senior notes and senior subordinated notes		0			0			294,507			0			294,507
Deferred income taxes		11,044			1,615			(4,268	)		0			8,391
Other		7,315			1,902			27,930			0			37,147
Total liabilities		73,846			87,972			329,415			0			491,233
Shareholders’ equity
Common stock		94,145			102,199			6,548			(196,344	)		6,548
Additional paid-in capital		249,302			12,525			361,400			(261,827	)		361,400
Retained earnings (deficit)		143,617			425,710			(457,510	)		(128,581	)		(16,764	)
Foreign currency translation adjustment		(1,699	)		(25,129	)		(7,055	)		0			(33,883	)
Pension liability		0			(33,264	)		(2,998	)		0			(36,262	)
Total shareholders’ equity	$	485,365		$	482,041		$	(99,615	)	$	(586,752	)	$	281,039
	$	559,211		$	570,013		$	229,800		$	(586,752	)	$	772,272

Condensed Consolidating Statement of Cash Flows

STATEMENT OF CASH FLOWS FOR YEAR 2012

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
Net cash provided by (used for) operating activities	$	50,653		$	7,142		$	(15,498	)	$	4,591		$	46,888
Cash flows from investing activities:
Purchase of plant and equipment		(16,752	)		(25,617	)		(59	)		0			(42,428	)
Other		473			(286	)		(2,816	)		0			(2,629	)
Net proceeds from sale of Bentley Prince Street		0			0			32,174			0			32,174
Cash received from insurance company		0			20,718			0			0			20,718
Net cash used for investing activities		(16,279	)		(5,185	)		29,299			0			7,835
Cash flows from financing activities:
Repurchase of senior subordinated notes		0			0			(11,477	)		0			(11,477	)
Proceeds from issuance of common stock		0			0			1,496			0			1,496
Dividends paid		0			0			(5,925	)		0			(5,925	)
Other		(31,545	)		(2,584	)		38,720			(4,591	)		0
Net cash provided by (used for) financing activities		(31,545	)		(2,584	)		22,814			(4,591	)		(15,906	)
Effect of exchange rate change on cash		153			939			0			0			1,092
Net increase (decrease) in cash		2,982			312			36,615			0			39,909
Cash, at beginning of year		1,090			35,874			13,660			0			50,624
Cash, at end of year	$	4,072		$	36,186		$	50,275		$	0		$	90,533

STATEMENT OF CASH FLOWS FOR YEAR 2011

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
Net cash provided by (used for) operating activities	$	(7,196	)	$	27,970		$	5,113		$	(1,523	)	$	24,364
Cash flows from investing activities:
Purchase of plant and equipment		(14,987	)		(23,013	)		(50	)		0			(38,050	)
Other		51			(1,080	)		(537	)		0			(1,566	)
Net cash used for investing activities		(14,936	)		(24,093	)		(587	)		0			(39,616	)
Cash flows from financing activities:
Proceeds from issuance of common stock		0			0			2,669			0			2,669
Dividends paid		0			0			(5,227	)		0			(5,227	)
Other		22,147			(838	)		(23,857	)		1,523			(1,025	)
Net cash provided by (used for) financing activities		22,147			(838	)		(26,415	)		1,523			(3,583	)
Effect of exchange rate change on cash		0			234			0			0			234
Net increase (decrease) in cash		15			3,273			(21,889	)		0			(18,601	)
Cash, at beginning of year		1,075			32,601			35,549			0			69,225
Cash, at end of year	$	1,090		$	35,874		$	13,660		$	0		$	50,624

STATEMENT OF CASH FLOWS FOR YEAR 2010

	GUARANTOR SUBSIDIARIES			NON-GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(in thousands)
Net cash provided by (used for) operating activities	$	27,785		$	26,516		$	(9,872	)	$	2,951		$	47,380
Cash flows from investing activities:
Purchase of plant and equipment		(11,643	)		(18,163	)		(1,909	)		0			(31,715	)
Other		(682	)		84			(4,730	)		0			(5,328	)
Net cash used for investing activities		(12,325	)		(18,079	)		(6,639	)		0			(37,043	)
Cash flows from financing activities:
Issuance of Senior Notes		0			0			275,000			0			275,000
Repurchase of Senior and Senior Subordinated Notes		0			0			(279,966	)		0			(279,966	)
Purchase of non-controlling interest		0			(11,488	)		0			0			(11,488	)
Debt issuance costs		0			0			(5,930	)		0			(5,930	)
Premiums paid to repurchase Senior and Senior Subordinated Notes		0			0			(36,374	)		0			(36,374	)
Other		(14,919	)		(7,332	)		25,202			(2,951	)		0
Proceeds from issuance of common stock		0			0			3,103			0			3,103
Dividends paid		0			0			(2,721	)		0			(2,721	)
Net cash used for financing activities		(14,919	)		(18,820	)		(21,686	)		(2,951	)		(58,376	)
Effect of exchange rate change on cash		0			1,912			0			0			1,912
Net increase (decrease) in cash		541			(8,471	)		(38,197	)		0			(46,127	)
Cash, at beginning of period		534			41,072			73,746			0			115,352
Cash, at end of period	$	1,075		$	32,601		$	35,549		$	0		$	69,225