10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For Quarterly Period Ended March 31, 2013

Commission File Number 001-33994

INTERFACE, INC.

(Exact name of registrant as specified in its charter)

GEORGIA	58-1451243
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

2859 PACES FERRY ROAD, SUITE 2000, ATLANTA, GEORGIA 30339

(Address of principal executive offices and zip code)

(770) 437-6800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Shares outstanding of each of the registrant’s classes of common stock at May 3, 2013:

Class	Number of Shares
Common Stock, $.10 par value per share	66,180,032

INTERFACE, INC.

INDEX

	PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements		3
Consolidated Condensed Balance Sheets – March 31, 2013 and December 30, 2012		3
Consolidated Condensed Statements of Operations—Three Months Ended March 31, 2013 and April 1, 2012		4
Consolidated Statements of Comprehensive Income (Loss) – Three Months Ended March 31, 2013 and April 1, 2012		5
Consolidated Condensed Statements of Cash Flows – Three Months Ended March 31, 2013 and April 1, 2012		6
Notes to Consolidated Condensed Financial Statements		7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
Item 3. Quantitative and Qualitative Disclosures about Market Risk		22
Item 4. Controls and Procedures		23
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		23
Item 1A. Risk Factors		23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		23
Item 3. Defaults Upon Senior Securities		24
Item 4. Mine Safety Disclosures		24
Item 5. Other Information		24
Item 6. Exhibits		24

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(IN THOUSANDS)

	MARCH 31, 2013			DECEMBER 30, 2012
	(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents	$	65,079		$	90,533
Accounts Receivable, net		113,819			137,313
Inventories		157,519			141,176
Prepaid Expenses and Other Current Assets		61,001			51,358
Deferred Income Taxes		9,918			10,271
TOTAL CURRENT ASSETS		407,336			430,651
PROPERTY AND EQUIPMENT, less accumulated depreciation		173,939			165,725
DEFERRED TAX ASSET		62,424			62,856
GOODWILL		73,313			75,672
OTHER ASSETS		55,195			54,463
TOTAL ASSETS	$	772,207		$	789,367
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts Payable	$	54,563		$	56,292
Accrued Expenses		83,274			97,424
Current Portion of Long-Term Debt		8,120			8,110
TOTAL CURRENT LIABILITIES		145,957			161,826
SENIOR NOTES		275,000			275,000
DEFERRED INCOME TAXES		6,402			7,339
OTHER		46,360			49,500
TOTAL LIABILITIES		473,719			493,665
Commitments and Contingencies
SHAREHOLDERS’ EQUITY:
Preferred Stock		0			0
Common Stock		6,617			6,606
Additional Paid-In Capital		368,383			366,677
Accumulated Deficit		(11,403	)		(16,746	)
Accumulated Other Comprehensive Income – Foreign Currency Translation Adjustment		(31,503	)		(25,344	)
Accumulated Other Comprehensive Income – Pension Liability		(33,606	)		(35,491	)
TOTAL SHAREHOLDERS’ EQUITY		298,488			295,702
	$	772,207		$	789,367

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

	THREE MONTHS ENDED
	MARCH 31, 2013		APRIL 1, 2012
NET SALES	$	210,369	$	210,016
Cost of Sales		139,117		139,498
GROSS PROFIT ON SALES		71,252		70,518
Selling, General and Administrative Expenses		57,258		53,901
Restructuring and Asset Impairment Charge		0		16,316
OPERATING INCOME		13,994		301
Interest Expense		6,158		6,653
Other Expense		407		400
INCOME (LOSS) BEFORE INCOME TAX EXPENSE		7,429		(6,752	)
Income Tax Expense (Benefit)		432		(655	)
INCOME (LOSS) FROM CONTINUING OPERATIONS	$	6,997	$	(6,097	)
Income from Discontinued Operations, Net of Tax		0		163
NET INCOME (LOSS)	$	6,997	$	(5,934	)
Earnings (Loss) Per Share – Basic
Continuing Operations	$	0.11	$	(0.10	)
Discontinued Operations		0.00		(0.00	)
Earnings (Loss) Per Share – Basic	$	0.11	$	(0.09	)
Earnings (Loss) Per Share – Diluted
Continuing Operations	$	0.11	$	(0.10	)
Discontinued Operations		0.00		(0.00	)
Earnings (Loss) Per Share – Diluted	$	0.11	$	(0.09	)
Common Shares Outstanding – Basic		66,116		63,443
Common Shares Outstanding – Diluted		66,274		63,443

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(IN THOUSANDS)

	THREE MONTHS ENDED
	MARCH 31, 2013			APRIL 1, 2012
Net Income (Loss)	$	6,997		$	(5,934	)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment		(6,159	)		7,874
Other Comprehensive Income (Loss), Pension Liability Adjustment		1,885			(891	)
Comprehensive Income	$	2,723		$	1,049

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

	THREE MONTHS ENDED
	MARCH 31, 2013			APRIL 1, 2012
OPERATING ACTIVITIES:
Net income (loss)	$	6,997		$	(5,934	)
Income from discontinued operations, net of tax		0			163
Income (loss) from continuing operations		6,997			(6,097	)
Adjustments to reconcile income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization		6,159			6,246
Stock compensation amortization expense		554			1,298
Deferred income taxes and other		1,357			(3,113	)
Working capital changes:
Accounts receivable		21,942			31,890
Inventories		(17,088	)		(3,766	)
Prepaid expenses		(10,300	)		(4,263	)
Accounts payable and accrued expenses		(18,618	)		2,131
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(8,997	)		24,326
INVESTING ACTIVITIES:
Capital expenditures		(14,883	)		(10,354	)
Other		(485	)		(1,035	)
CASH USED IN INVESTING ACTIVITIES		(15,368	)		(11,389	)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock		868			131
Dividends paid		(1,654	)		(1,307	)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:		(786	)		(1,176	)
Net cash provided by (used in) operating, investing and financing activities		(25,151	)		11,761
Effect of exchange rate changes on cash		(303	)		687
CASH AND CASH EQUIVALENTS:
Net change during the period		(25,454	)		12,448
Balance at beginning of period		90,533			50,624
Balance at end of period	$	65,079		$	63,072

See accompanying notes to consolidated condensed financial statements.

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INTERFACE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

NOTE 1 – CONDENSED FOOTNOTES

As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 30, 2012, as filed with the Commission.

The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 30, 2012 consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States.

As described below in Note 8, the Company has sold its Bentley Prince Street business segment. The results of operations and related disposal costs, gains and losses for this business are classified as discontinued operations, where applicable.

Certain prior period amounts have been reclassified to conform to the current period presentation.

NOTE 2 – INVENTORIES

Inventories are summarized as follows:

	March 31, 2013		December 30, 2012
	(In thousands)
Finished Goods	$	99,850	$	87,094
Work in Process		9,402		7,030
Raw Materials		48,267		47,052
	$	157,519	$	141,176

NOTE 3 – EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income (loss), 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.

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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. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS when the Company is in an income position. 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. The following tables show distributed and undistributed earnings:

	Three Months Ended
	March 31, 2013		April 1, 2012
Earnings Per Share from Continuing Operations:
Basic Earnings (Loss) Per Share Attributable to Common Stockholders:
Distributed Earnings	$	0.03	$	(0.02	)
Undistributed Earnings		0.08		(0.08	)
Total	$	0.11	$	(0.10	)
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders:
Distributed Earnings	$	0.03	$	(0.02	)
Undistributed Earnings		0.08		(0.08	)
Total	$	0.11	$	(0.10	)
Earnings (Loss) Per Share from Discontinued Operations:
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00	$	0.00
Undistributed earnings		0.00		0.00
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00	$	0.00
Undistributed earnings		0.00		0.00
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders	$	0.11	$	(0.09	)
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders	$	0.11	$	(0.09	)

The following table presents net income that was attributable to participating securities.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
Net Income	$	0.2	$	0.0

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

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Weighted Average Shares Outstanding		64,406		63,443
Participating Securities		1,710		0
Shares for Basic Earnings Per Share		66,116		63,443
Dilutive Effect of Stock Options		158		0
Shares for Diluted Earnings Per Share		66,274		63,443

For the three months ended April 1, 2012, options to purchase 535,000 shares of common stock were not included in the computation of diluted EPS as their impact would be anti-dilutive. For the three months ended April 1, 2012, 2,009,000 shares of participating securities were excluded from the computation of EPS as their impact would be anti-dilutive.

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NOTE 4 – LONG-TERM DEBT

7 5/8% Senior Notes

As of both March 31, 2013, and April 1, 2012, the Company had outstanding $275 million in 7 5/8% Senior Notes due 2018 (the “7 5/8% Senior Notes”). The estimated fair value of the 7 5/8% Senior Notes as of March 31, 2013, and April 1, 2012, based on then current market prices, was $297.0 and $296.7 million, respectively.

11 3/8% Senior Secured Notes

As of March 31, 2013, and April 1, 2012, the Company had outstanding $8.1 million and $8.0 million in 11 3/8% Senior Secured Notes due 2013 (the “11 3/8% Senior Secured Notes”), respectively. The estimated fair value of the 11 3/8% Senior Secured Notes as of both March 31, 2013, and April 1, 2012, based on then current market prices, was $8.1 million.

Credit Facilities

The Company maintains a domestic revolving credit agreement (the “Facility”) that provides a maximum aggregate amount of $100 million of loans and letters of credit available to us at any one time (subject to a borrowing base) with an option for us to increase that maximum aggregate amount to $150 million (upon the satisfaction of certain conditions, and subject to a borrowing base). The Company is presently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future. As of March 31, 2013, there were zero borrowings and $3.6 million in letters of credit outstanding under the Facility. As of March 31, 2013, the Company could have incurred $57.1 million of additional borrowings under the Facility.

Interface Europe B.V. (the Company’s modular carpet subsidiary based in the Netherlands) and certain of its subsidiaries maintain a Credit Agreement with The Royal Bank of Scotland N.V. (“RBS”). Under this Credit Agreement, RBS provides a credit facility, until further notice, for borrowings and bank guarantees of €20 million. As of March 31, 2013, there were no borrowings outstanding under this facility, and the Company could have incurred €20 million (approximately $25.6 million) of additional borrowings under the facility.

Other non-U.S. subsidiaries of the Company have an aggregate of the equivalent of $18.8 million of lines of credit available. As of March 31, 2013 there were no borrowings outstanding under these lines of credit.

NOTE 5 – STOCK-BASED COMPENSATION

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. The grant date fair value for options and similar instruments will be estimated using option pricing models. Under accounting standards, the Company is required to select a valuation technique or option pricing model that meets the criteria as stated in the standard. The Company uses the Black-Scholes model. Accounting standards require that the Company estimate forfeitures for stock options and reduce compensation expense accordingly. The Company has reduced its stock compensation expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

During the first three months of 2013 and 2012, the Company recognized stock option compensation costs of $0.1 million and $0.2 million, respectively. The remaining unrecognized compensation cost related to unvested awards at March 31, 2013, approximated $0.1 million, and the weighted average period of time over which this cost will be recognized is approximately one year.

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There were no stock options granted during the first three months of fiscal year 2013 or 2012. The following table summarizes stock options outstanding as of March 31, 2013, as well as activity during the three months then ended:

	Shares		Weighted Average Exercise Price
Outstanding at December 30, 2012		393,500	$	8.49
Granted		0		0
Exercised		81,000		9.73
Forfeited or canceled		5,500		2.71
Outstanding at March 31, 2013		307,000	$	8.35
Exercisable at March 31, 2013		302,000	$	8.27

At March 31, 2013, the aggregate intrinsic value of in-the-money options outstanding and options exercisable was $3.3 million and $3.3 million, respectively (the intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option).

Cash proceeds and intrinsic value related to total stock options exercised during the first three months of 2013 and 2012 are provided in the following table:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Proceeds from stock options exercised	$	868	$	131
Intrinsic value of stock options exercised	$	581	$	179

The Company did not recognize any significant tax benefit with regard to stock options in either period presented.

Restricted Stock Awards

During the three months ended March 31, 2013 and April 1, 2012, the Company granted restricted stock awards for 584,000 and 557,500 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a two to five-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, awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $0.6 million and $1.3 million for the three months ended March 31, 2013, and April 1, 2012, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of March 31, 2013, as well as activity during the three months then ended:

	Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2012		1,973,500	$	14.79
Granted		584,000		16.06
Vested		372,000		14.63
Forfeited or canceled		475,500		14.04
Outstanding at March 31, 2013		1,710,000	$	15.45

As of March 31, 2013, the unrecognized total compensation cost related to unvested restricted stock was $16.6 million. That cost is expected to be recognized by the end of 2016.

The Company did not recognize any significant tax benefit with regard to restricted stock in either period presented.

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NOTE 6 – EMPLOYEE BENEFIT PLANS

The following tables provide the components of net periodic benefit cost for the three-month periods ended March 31, 2013, and April 1, 2012, respectively:

	Three Months Ended
Defined Benefit Retirement Plan (Europe)	March 31, 2013			April 1, 2012
	(In thousands)
Service cost	$	211		$	116
Interest cost		2,390			2,544
Expected return on assets		(2,487	)		(2,821	)
Amortization of prior service costs		22			13
Recognized net actuarial (gains)/losses		243			229
Net periodic benefit cost	$	379		$	81

	Three Months Ended
Salary Continuation Plan (SCP)	March 31, 2013		April 1, 2012
	(In thousands)
Service cost	$	134	$	113
Interest cost		249		254
Amortization of prior service cost		12		12
Amortization of (gain)/loss		110		67
Net periodic benefit cost	$	505	$	446

NOTE 7 – RESTRUCTURING CHARGES

2012 Restructuring Charge

In the first quarter of 2012, the Company committed to a restructuring plan in its continuing efforts to reduce costs across its worldwide operations and more closely align its operations with reduced demand levels in certain markets. The plan primarily consisted of ceasing manufacturing and warehousing operations at its facility in Shelf, England. In connection with this restructuring plan, the Company incurred a pre-tax restructuring and asset impairment charge in the first quarter of 2012 in an amount of $16.3 million. The charge was comprised of employee severance expenses of $5.4 million, other related exit costs of $1.6 million, and a charge for impairment of assets of approximately $9.3 million. Approximately $7 million of the charge will result in cash expenditures, primarily severance expense. In the third and fourth quarters of 2012, the Company recorded additional charges of $0.8 million and $2.3 million, respectively, of cash severance expenses related to the finalization of this plan for its European operations. As a result of these 2012 restructuring charges, a reduction of approximately 145 employees occurred.

A summary of these restructuring activities is presented below:

	Total Restructuring Charge		Costs Incurred in 2012		Costs Incurred in 2013		Balance at March 31,  2013
	((In thousands)
Workforce Reduction	$	8,465	$	5,205	$	2,566	$	694
Fixed Asset Impairment		9,364		9,364		0		0
Other Related Exit Costs		1,596		1,168		75		353

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2011 Restructuring Charge

In the fourth quarter of 2011, the Company committed to a restructuring plan intended to reduce costs across its worldwide operations and more closely align its operations with reduced demand in certain markets. As a result of this plan, the Company incurred pre-tax restructuring and asset impairment charges of $5.8 million in the fourth quarter of 2011. The majority of this charge ($5.0 million) related to the severance of approximately 90 employees in Europe, Asia and the United States. The remainder of the charge ($0.8 million) related to contract termination and fixed asset impairment costs. Approximately $5.0 million of this charge will result in cash expenditures, primarily severance expenses. Actions and expenses related to this plan were substantially completed by the end of 2011.

A summary of these restructuring activities is presented below:

	Restructuring Charge		Costs Incurred in 2011		Costs Incurred in 2012		Costs Incurred in 2013		Balance at March 31, 2013
	(In thousands)
Workforce Reduction	$	4,979	$	867	$	3,450	$	101	$	561
Fixed Asset Impairment		776		776		0		0		0

NOTE 8 – DISCONTINUED OPERATIONS

In the third quarter of 2012, the Company sold its Bentley Prince Street business segment, which is now reported in the results of operations as “discontinued operations,” where applicable.

Summary operating results for discontinued operations were as follows:

	Three Months Ended
	March 31, 2013		April 2, 2012
	(In thousands)
Net sales	$	0	$	22,744
Income (Loss) on operations before taxes on income		0		251
Tax expense (benefit)		0		88
Income (Loss) on operations, net of tax		0		163

As of March 31, 2013 and December 30, 2012, there were no assets or liabilities related to the above-described discontinued operations that were held for sale.

NOTE 9 – SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest amounted to $0.3 million and $0.8 million for the three month periods ended March 31, 2013, and April 1, 2012, respectively. Income tax payments amounted to $1.6 million and $3.0 million for the three month periods ended March 31, 2013, and April 1, 2012, respectively.

NOTE 10 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard which requires entities to present information about significant items reclassified out of accumulated other comprehensive income (loss) by component either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. The standard was effective for the Company in the first quarter of fiscal year 2013. As this standard impacts presentation only, the adoption did not have any impact on the Company’s consolidated financial statements.

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NOTE 11 – INCOME TAXES

In the first quarter of 2013, the Company executed advance pricing agreements for tax years 2006 through 2011 with the Canada Revenue Agency and the U.S. Internal Revenue Service in relation to the U.S. bilateral advanced pricing agreement filed in 2008. As a result of executing the advance pricing agreements, the Company was able to reduce its liability for unrecognized tax benefits in the first quarter of 2013 by $2.0 million. This benefit has been included in the “Income Tax Expense (Benefit)” line of the Company’s consolidated condensed statement of operations for the three months ended March 31, 2013.

Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first three months of 2013, due largely to the resolution of the bilateral advanced pricing agreement discussed above, the Company decreased its liability for unrecognized tax benefits by $2.3 million. As of March 31, 2013, the Company had accrued approximately $22.9 million for unrecognized tax benefits.

NOTE 12 – FIRE AT AUSTRALIAN MANUFACTURING FACILITY

On July 20, 2012, a fire occurred at the Company’s manufacturing facility in Picton, Australia. The facility’s carpet production line, primarily comprised of tufting and backing machinery, sustained extensive damage and was rendered inoperable. The Picton facility served the Company’s customers throughout Australia and New Zealand. It represented approximately 7% of the Company’s total annual production, 10% of its net sales, and 13% of its operating income. Since the fire, the Company has utilized adequate production capacity at its manufacturing facilities in Thailand, China and elsewhere to meet customer demand typically serviced from Picton. The Company has business interruption and property damage insurance. The Company is in the process of building a new manufacturing facility in Minto, Australia and expects it to become operational in late 2013.

Since the fire, the Company has recorded charges of approximately $24.3 million ($2.0 million in the first quarter of 2013) for impairment of fixed assets related to the fire, and has incurred approximately $23.1 million of excess production costs related to the fire, as it has utilized other facilities to service customers in the Australia and New Zealand markets. As of March 31, 2013, the Company has determined that the receipt of reimbursement of these expenses from its insurer is probable in accordance with its insurance policies and has therefore recorded a receivable for these items. As of March 31, 2013, the Company had received $20.7 million of reimbursement from the insurance company related to the fire at the Picton facility. The table below details the nature of expenses as well as insurance receivables and amounts already received related to the fire:

	(in millions)
Impairment of fixed assets at the Picton Facility	$	24.3
Incremental payroll costs		4.2
Incremental shipping costs		17.6
Other incremental costs		1.3
Total incurred costs through December 30, 2012	$	47.4
Insurance recovery receivable	$	26.7
Insurance recoveries already received	$	20.7

The Company also has made an additional claim for loss of profits related to the fire. The amount of this claim is approximately $5.2 million and relates to loss of profits from the date of the fire through the end of 2012. The Company continues to gather information related to additional insurance claims for loss of profits as a result of the fire. As of March 31, 2013, the Company had not recorded any receivables or amounts for loss of profits, but expects to do so at a later date as information and analysis become more complete and recovery becomes probable.

-13-

NOTE 13 – ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME

During the first quarter of 2013, the Company did not reclassify any significant amounts out of accumulated other comprehensive income. The reclassifications that occurred in that period were primarily comprised of $0.3 million related to the Company’s defined retirement benefit plan and salary continuation plan. These reclassifications were included in the selling, general and administrative expenses line item of the Company’s consolidated condensed statement of operations.

NOTE 14 – 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 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.

-14-

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2013

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	130,708	$	111,873	$	0		$	(32,212	)	$	210,369
Cost of sales		95,709		75,620		0			(32,212	)		139,117
Gross profit on sales		34,999		36,253		0			0			71,252
Selling, general and administrative expenses		22,697		26,092		8,469			0			57,258
Operating income (loss)		12,302		10,161		(8,469	)		0			13,994
Interest/Other expense		5,971		2,945		(2,351	)		0			6,565
Income (loss) before taxes on income and equity in income of subsidiaries		6,331		7,216		(6,118	)		0			7,429
Income tax expense (benefit)		368		419		(355	)		0			432
Equity in income (loss) of subsidiaries		0		0		12,760			(12,760	)		0
Net income (loss)	$	5,963	$	6,797	$	6,997		$	(12,760	)	$	6,997

-15-

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)		CONSOLIDATION AND  ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	5,963		$	6,797		$	6,997	$	(12,760	)	$	6,997
Currency Translation Adjustment		(7	)		(6,314	)		162		0			(6,159	)
Pension Liability Adjustment		0			1,812			73		0			1,885
Comprehensive Income (Loss)	$	5,956		$	2,295		$	7,232	$	(12,760	)	$	2,723

-16-

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,184		$	22,667		$	40,228		$	0		$	65,079
Accounts receivable		44,131			69,028			660			0			113,819
Inventories		71,301			86,218			0			0			157,519
Prepaids and deferred income taxes		6,093			50,216			14,610			0			70,919
Total current assets		123,709			228,129			55,498			0			407,336
Property and equipment less accumulated depreciation		77,972			92,817			3,150			0			173,939
Investment in subsidiaries		558,798			220,556			(151,552	)		(627,802	)		0
Goodwill		6,542			66,771			0			0			73,313
Other assets		1,275			9,057			107,287			0			117,619
	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	31,975		$	105,704		$	8,278		$	0		$	145,957
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			9,861			(3,459	)		0			6,402
Other		4			1,581			44,775			0			46,360
Total liabilities		31,979			117,146			324,594			0			473,719
Redeemable preferred stock		0			0			0			0			0
Common stock		94,145			102,199			6,617			(196,344	)		6,617
Additional paid-in capital		249,302			12,525			368,383			(261,827	)		368,383
Retained earnings (deficit)		394,820			438,138			(674,730	)		(169,631	)		(11,403	)
AOCI—Foreign currency translation adjustment		(1,950	)		(23,005	)		(6,548	)		0			(31,503	)
AOCI—Pension liability		0			(29,673	)		(3,933	)		0			(33,606	)
	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

-17-

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS

ENDED MARCH 31, 2013

	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	$	(5,666	)	$	(11,246	)	$	9,509		$	(1,594	)	$	(8,997	)
Cash flows from investing activities:
Purchase of plant and equipment		(5,624	)		(9,252	)		(7	)		0			(14,883	)
Other		9			(209	)		(285	)		0			(485	)
Net cash used for investing activities		(5,615	)		(9,461	)		(292	)		0			(15,368	)
Cash flows from financing activities:
Proceeds from issuance of common stock		0			0			868			0			868
Other		9,533			7,352			(18,479	)		1,594			0
Dividends paid		0			0			(1,654	)		0			(1,654	)
Net cash provided by (used for) financing activities		9,533			7,352			(19,265	)		1,594			(786	)
Effect of exchange rate change on cash		0			(303	)		0			0			(303	)
Net increase (decrease) in cash		(1,748	)		(13,658	)		(10,048	)		0			(25,454	)
Cash at beginning of period		3,932			36,325			50,276			0			90,533
Cash at end of period	$	2,184		$	22,667		$	40,228		$	0		$	65,079

-18-

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our discussions below in this Item 2 are based upon the more detailed discussions about our business, operations and financial condition included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, under Item 7 of that Form 10-K. Our discussions here focus on our results during the quarter ended, or as of, March 31, 2013, and the comparable period of 2012 for comparison purposes, and, to the extent applicable, any material changes from the information discussed in that Form 10-K or other important intervening developments or information since that time. These discussions should be read in conjunction with that Form 10-K for more detailed and background information.

Forward-Looking Statements

This report contains statements which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties associated with economic conditions in the commercial interiors industry as well as the risks and uncertainties discussed under the heading “Risk Factors” included in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2012, which discussion is hereby incorporated by reference. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

2012 Restructuring Charge

In the first quarter of 2012, we committed to a new restructuring plan in our continuing efforts to reduce costs across our worldwide operations and more closely align our operations with reduced demand levels in certain markets. The plan primarily consisted of ceasing manufacturing and warehousing operations at our facility in Shelf, England. In connection with this restructuring plan, we incurred a pre-tax restructuring and asset impairment charge in the first quarter of 2012 in an amount of $16.3 million, as well as additional related charges of $0.8 million in the third quarter of 2012 and $2.3 million in the fourth quarter of 2012. These charges were comprised of severance expenses of $8.5 million for a reduction of 145 employees, other related exit costs of $1.6 million, and impairment of assets of $9.4 million. Approximately $10.1 million of the charge will result in cash expenditures, primarily severance expense.

Fire at Australia Facility

In July 2012, a fire occurred at our manufacturing facility in Picton, Australia. The fire caused extensive damage to the facility, as well as disruption to business activity in the region. We have taken steps towards re-adapting our supply chain with product from our manufacturing facilities in China, Thailand, the U.S. and Europe. While this is being executed with success, there were, as expected, delays in shipments that affected sales following the fire. At this time, it is difficult to quantify the financial impacts of the fire, but we believe it negatively affected net sales by approximately $2.5-$3.0 million during the first quarter of 2013. For additional information on the fire, please see Note 12, entitled “Fire at Australian Manufacturing Facility,” in Part I, Item 1 of this Report.

Discontinued Operations

In 2012, we sold our Bentley Prince Street business segment. In accordance with applicable accounting standards, we have reported the results of operations for the former Bentley Prince Street business segment as “discontinued operations,” where applicable.

Our discontinued operations had no net sales and no net income or loss in the three-month period ended March 31, 2013. For the three-month period ended April 1, 2012, our discontinued operations had net sales of $22.7 million and net income of $0.2 million.

-19-

General

During the quarter ended March 31, 2013, we had net sales of $210.4 million, compared with net sales of $210.0 million in the first quarter last year. Fluctuations in currency exchange rates had a slightly negative impact (less than 1%) for the 2013 first quarter compared with the prior year period.

During the first quarter of 2013, we had net income of $7.0 million, or $0.11 per share, compared with a net loss of $5.9 million, or $0.09 per share, in the first quarter last year. Included in the results for the first quarter of 2013 was a one-time tax dispute resolution benefit of $2.0 million related to the execution of bilateral pricing agreements. See the discussion in Note 11 of Part I, Item 1 of this Report, entitled “Income Taxes,” for further information. As discussed above, results for the first quarter of 2012 included a restructuring and asset impairment charge of $16.3 million.

Results of Operations

The following table presents, as a percentage of net sales, certain items included in our Consolidated Condensed Statements of Operations for the three-month periods ended March 31, 2013, and April 1, 2012, respectively:

	Three Months Ended
	March 31, 2013			April 1, 2012
Net sales		100.0	%		100.0	%
Cost of sales		66.1			66.4
Gross profit on sales		33.9			33.6
Selling, general and administrative expenses		27.2			25.7
Restructuring and asset impairment charge		0.0			7.8
Operating income		6.7			0.1
Interest/Other expense		3.1			3.4
Income (loss) before tax expense		3.5			(3.2	)
Income tax expense (benefit)		0.2			(0.3	)
Income (loss) from continuing operations		3.3			(2.9	)
Income (loss) from discontinued operations		0.0			0.1
Net income (loss)		3.3			(2.8	)

Net Sales

Below we provide information regarding net sales and analyze those results for the three-month periods ended March 31, 2013, and April 1, 2012, respectively.

	Three Months Ended				Percentage
	March 31, 2013		April 1, 2012		Change
	(In thousands)
Net Sales		210,369		210,010		0.2	%

-20-

For the quarter ended March 31, 2013, net sales increased $0.3 million (0.2%) versus the comparable period in 2012. On a geographic basis, we experienced a sales increase in the Americas (up 9%) which was almost entirely offset by decreases in Europe (down 9% in U.S. dollars, or 10% in local currency) and Asia-Pacific (down 8%). In the Americas, sales growth was due to increases in the corporate office segment (up 21%), as well as smaller increases in the residential (up 24%) and hospitality (up 68%) segments. The increase in the residential segment is a direct result of the continued expansion of our FLOR store channel. As of the end of the first quarter of 2013, we had 19 FLOR stores open, compared with eight stores as of the end of the first quarter of 2012. The increase in the hospitality segment was due to the continued successful penetration of this market as we further build our sales presence in the hospitality market. These increases in the Americas were partially offset by a decrease in the retail segment (down 31%). The sales decline in Europe was driven by the continued economic uncertainty in that region that has negatively impacted buying decisions by our customers, as well as unusually bad weather in the U.K. at the end of March that delayed shipments. Aside from an increase in the hospitality segment (up 14%), all market segments in Europe showed declines compared with the first quarter of 2012. The most significant decline was in the corporate office segment (down 8%), which comprises the majority of the region’s customers and was most impacted by an economic slow down. In Asia-Pacific, the sales decline was primarily due to the continued effects of the fire that destroyed our plant in Australia in July of 2012. The absence of a plant in Australia has impacted sales in the region despite our continued imports from our other manufacturing facilities. With the commissioning of our new plant in Australia in late 2013, we believe sales will improve in the region going forward. The sales decline in Australia was partially offset by increases in other parts of the Asia-Pacific region, notably Southeast Asia. The overall decline in Asia-Pacific was led by the corporate office segment (down 11%) as well as the healthcare segment (down 38%). These declines were partially mitigated by increases in the retail (up 31%) and hospitality (up 28%) segments.

Cost and Expenses

The following table presents our overall cost of sales and selling, general and administrative expenses for the three-month periods ended March 31, 2013, and April 1, 2012, respectively:

	Three Months Ended				Percentage
Cost and Expenses	March 31, 2013		April 1, 2012		Change
	(In thousands)
Cost of sales	$	139,117	$	139,498		(0.3	%)
Selling, general and administrative expenses		57,258		53,901		6.2	%
Total	$	196,375	$	193,399		1.5	%

For the quarter ended March 31, 2013, our cost of sales decreased $0.4 million (0.3%) versus the comparable period in 2012. Currency translation did not have a significant impact on the comparison between the periods. As a percentage of sales, cost of sales decreased to 66.1% for the quarter ended March 31, 2013, versus 66.4% in the comparable period of 2012. This decrease was due to improvements in gross margin in the Americas due to increased absorption of fixed overhead costs associated with higher production volumes, offset by lower margins in Europe as a result of lesser production at our facilities in that region. Raw material prices for the first quarter of 2013 remained relatively stable versus the first quarter of 2012.

For the quarter ended March 31, 2013, our selling, general and administrative expenses increased $3.4 million (6.2%) versus the comparable period in 2012. Fluctuations in currency exchange rates did not have a significant impact on the comparison between the two periods. The primary components of this increase were additional selling costs, particularly in the Americas group where there were additional sales personnel added to better serve the growing market (approximately $1.3 million of the increase) as well as approximately $1.7 million of additional selling costs related to the additional FLOR retail stores we have opened. Due to these increased expenses, as well as the lower sales volumes discussed above, as a percentage of net sales, selling, general and administrative expenses increased to 27.2% for the first three months of 2013 versus 25.7% in the corresponding period of 2012. We believe that the expansion of our sales channels will continue to provide benefits and we expect to see selling, general and administrative costs decline as a percentage of net sales in future periods.

Interest Expense

For the three-month period ended March 31, 2013, interest expense decreased by approximately $0.5 million to $6.2 million, versus $6.7 million for three-month period ended April 1, 2012. The primary reason for this decrease was the redemption of the remaining $11.5 million of our 9.5% Senior Subordinated Notes early in the second quarter of 2012.

-21-

Liquidity and Capital Resources

General

At March 31, 2013, we had $65.1 million in cash. At that date, we had no borrowings and $3.6 million in letters of credit outstanding under our domestic revolving credit facility, and no borrowings outstanding under our European credit facility. As of March 31, 2013, we could have incurred $57.1 million of additional borrowings under our domestic revolving credit facility, and €20 million (approximately $25.6 million) of additional borrowings under our European credit facility. In addition, we could have incurred an additional $18.8 million of borrowings under our other credit facilities in place at other non-U.S. subsidiaries.

Analysis of Cash Flows

Our primary sources of cash during the three months ended March 31, 2013 were (1) $21.9 million due to reductions in accounts receivable, and (2) $0.9 million from the exercise of stock options under our employee stock plan. Our primary uses of cash during this period were (1) $18.6 million due to a decrease in accounts payable and accrued expenses, (2) $17.1 million for increased inventory levels, and (3) $14.9 million for capital expenditures.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our discussion below in this Item 3 is based upon the more detailed discussions of our market risk and related matters included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, under Item 7A of that Form 10-K. Our discussion here focuses on the quarter ended March 31, 2013, and any material changes from (or other important intervening developments since the time of) the information discussed in that Form 10-K. This discussion should be read in conjunction with that Form 10-K for more detailed and background information.

At March 31, 2013, we recognized a $6.2 million decrease in our foreign currency translation adjustment account compared to December 30, 2012, primarily because of the strengthening of the U.S. dollar against certain foreign currencies.

Sensitivity Analysis. For purposes of specific risk analysis, we use sensitivity analysis to measure the impact that market risk may have on the fair values of our market sensitive instruments.

To perform sensitivity analysis, we assess the risk of loss in fair values associated with the impact of hypothetical changes in interest rates and foreign currency exchange rates on market sensitive instruments. The market value of instruments affected by interest rate and foreign currency exchange rate risk is computed based on the present value of future cash flows as impacted by the changes in the rates attributable to the market risk being measured. The discount rates used for the present value computations were selected based on market interest and foreign currency exchange rates in effect at March 31, 2013. The values that result from these computations are compared with the market values of these financial instruments at March 31, 2013. The differences in this comparison are the hypothetical gains or losses associated with each type of risk.

As of March 31, 2013, based on a hypothetical immediate 150 basis point increase in interest rates, with all other variables held constant, the market value of our fixed rate long-term debt would experience a net decrease of approximately $10.1 million. Conversely, a 150 basis point decrease in interest rates would result in a net increase in the market value of our fixed rate long-term debt of approximately $7.1 million.

As of March 31, 2013, a 10% decrease or increase in the levels of foreign currency exchange rates against the U.S. dollar, with all other variables held constant, would result in a decrease in the fair value of our financial instruments of $6.8 million or an increase in the fair value of our financial instruments of $5.6 million, respectively. As the impact of offsetting changes in the fair market value of our net foreign investments is not included in the sensitivity model, these results are not indicative of our actual exposure to foreign currency exchange risk.

-22-

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was performed under the supervision and with the participation of our management, including our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Act”), pursuant to Rule 13a-14(c) under the Act. Based on that evaluation, our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report.

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are subject to various legal proceedings in the ordinary course of business, none of which is required to be disclosed under this Item 1.

ITEM 1A. RISK FACTORS

There are no material changes in risk factors in the first quarter of 2013. For a discussion of risk factors, see Part I, Item IA, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year 2012.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table contains information with respect to purchases made by or on behalf of the Company, or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during our first quarter ended March 31, 2013:

Period(1)	Total Number of  Shares Purchased(2)		Average Price Paid Per Share(3)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(4)		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(4)
December 31		0		N/A		0		0
January 1 – January 31, 2013		283,141	$	16.83		0		0
February 1 – February 28, 2013		58,333	$	17.16		0		0
March 1 – March 31, 2013		33,000	$	19.12		0		0
Total		374,474	$	17.09		0		0

⁽¹⁾ The monthly periods identified above correspond to the Company’s fiscal first quarter of 2013, which commenced December 31, 2012 and ended March 31, 2013.

⁽²⁾  The referenced shares were acquired by the Company from certain of our employees to satisfy income tax withholding obligations in connection with the vesting, in the first quarter of 2013, of certain previous grants of restricted stock shares.

⁽³⁾  The referenced price paid per share represents the fair market value of all shares acquired from employees on the date the shares vested, which is equal to the closing price of the Company’s common stock on the NASDAQ stock exchange on the day preceding the vesting date. The total represents the weighted average price paid per share.

⁽⁴⁾ We do not currently have a publicly announced stock repurchase program in place.

-23-

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

The following exhibits are filed with this report:

EXHIBIT NUMBER	DESCRIPTION OF EXHIBIT
31.1	Section 302 Certification of Chief Executive Officer.
31.2	Section 302 Certification of Chief Financial Officer.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.
101.INS	XBRL Instance Document (furnished electronically herewith)*
101.SCH	XBRL Taxonomy Extension Schema Document (furnished electronically herewith)*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (furnished electronically herewith)*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (furnished electronically herewith)*
101.PRE	XBRL Taxonomy Presentation Linkbase Document (furnished electronically herewith)*
101.DEF	XBRL Taxonomy Definition Linkbase Document (furnished electronically herewith)*

* In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”

-24-

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INTERFACE, INC.
Date: May 9, 2013	By:	/s/ Patrick C. Lynch
		Patrick C. Lynch
		Senior Vice President
		(Principal Financial Officer)

-25-

EXHIBIT INDEX

EXHIBIT NUMBER	DESCRIPTION OF EXHIBIT
31.1	Section 302 Certification of Chief Executive Officer.
31.2	Section 302 Certification of Chief Financial Officer.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.
101.INS	XBRL Instance Document (furnished electronically herewith)*
101.SCH	XBRL Taxonomy Extension Schema Document (furnished electronically herewith)*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (furnished electronically herewith)*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (furnished electronically herewith)*
101.PRE	XBRL Taxonomy Presentation Linkbase Document (furnished electronically herewith)*
101.DEF	XBRL Taxonomy Definition Linkbase Document (furnished electronically herewith)*

* In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”

-26-

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Daniel T. Hendrix, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Interface, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2013

/s/ Daniel T. Hendrix

Daniel T. Hendrix

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Patrick C. Lynch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Interface, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2013

/s/ Patrick C. Lynch

Patrick C. Lynch

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

I, Daniel T. Hendrix, Chief Executive Officer of Interface, Inc. (the “Company”), certify, pursuant to 18 U.S.C. § 1350 as adopted by § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 9, 2013

/s/ Daniel T. Hendrix

Daniel T. Hendrix

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

I, Patrick C. Lynch, Chief Financial Officer of Interface, Inc. (the “Company”), certify, pursuant to 18 U.S.C. § 1350 as adopted by § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 9, 2013

/s/ Patrick C. Lynch

Patrick C. Lynch

Chief Financial Officer

XML

Restructuring Charges - Additional Information (Detail) (USD $)	3 Months Ended				12 Months Ended
	Dec. 30, 2012	Sep. 30, 2012	Apr. 01, 2012	Jan. 01, 2012	Dec. 30, 2012 Employees	Jan. 01, 2012 Employees
Restructuring Reserve Disclosures [Abstract]
Total restructuring charge			$ 16,300,000	$ 5,800,000
Cost incurred on European operations	2,300,000	800,000
Employees were affected restructuring plan					145	90
Workforce Reduction [Member]
Restructuring Reserve Disclosures [Abstract]
Cost incurred			5,400,000	5,000,000
Other Related Exit Costs [Member]
Restructuring Reserve Disclosures [Abstract]
Cost incurred			1,600,000
Fixed Asset Impairment [Member]
Restructuring Reserve Disclosures [Abstract]
Cost incurred			9,300,000	800,000
Primary severance expense [Member]
Restructuring Reserve Disclosures [Abstract]
Cost incurred			$ 7,000,000	$ 5,000,000

XML

Supplemental Condensed Consolidating Guarantor Financial Statements - Condensed Consolidating Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Condensed Financial Statements, Captions [Line Items]
NET SALES	$ 210,369	$ 210,016
Cost of Sales	139,117	139,498
GROSS PROFIT ON SALES	71,252	70,518
Selling, general and administrative expenses	57,258	53,901
OPERATING INCOME	13,994	301
Interest/Other expense	6,158	6,653
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	7,429	(6,752)
Income Tax Expense (Benefit)	432	(655)
NET INCOME (LOSS)	6,997	(5,934)
GUARANTOR SUBSIDIARIES [Member]
Condensed Financial Statements, Captions [Line Items]
NET SALES	130,708
Cost of Sales	95,709
GROSS PROFIT ON SALES	34,999
Selling, general and administrative expenses	22,697
OPERATING INCOME	12,302
Interest/Other expense	5,971
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	6,331
Income Tax Expense (Benefit)	368
Equity in income (loss) of subsidiaries	0
NET INCOME (LOSS)	5,963
NON-GUARANTOR SUBSIDIARIES [Member]
Condensed Financial Statements, Captions [Line Items]
NET SALES	111,873
Cost of Sales	75,620
GROSS PROFIT ON SALES	36,253
Selling, general and administrative expenses	26,092
OPERATING INCOME	10,161
Interest/Other expense	2,945
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	7,216
Income Tax Expense (Benefit)	419
Equity in income (loss) of subsidiaries	0
NET INCOME (LOSS)	6,797
INTERFACE, INC. (PARENT CORPORATION) [Member]
Condensed Financial Statements, Captions [Line Items]
NET SALES	0
Cost of Sales	0
GROSS PROFIT ON SALES	0
Selling, general and administrative expenses	8,469
OPERATING INCOME	(8,469)
Interest/Other expense	(2,351)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	(6,118)
Income Tax Expense (Benefit)	(355)
Equity in income (loss) of subsidiaries	12,760
NET INCOME (LOSS)	6,997
CONSOLIDATION AND ELIMINATION ENTRIES [Member]
Condensed Financial Statements, Captions [Line Items]
NET SALES	(32,212)
Cost of Sales	(32,212)
GROSS PROFIT ON SALES	0
Selling, general and administrative expenses	0
OPERATING INCOME	0
Interest/Other expense	0
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	0
Income Tax Expense (Benefit)	0
Equity in income (loss) of subsidiaries	(12,760)
NET INCOME (LOSS)	(12,760)
CONSOLIDATED TOTALS [Member]
Condensed Financial Statements, Captions [Line Items]
NET SALES	210,369
Cost of Sales	139,117
GROSS PROFIT ON SALES	71,252
Selling, general and administrative expenses	57,258
OPERATING INCOME	13,994
Interest/Other expense	6,565
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	7,429
Income Tax Expense (Benefit)	432
Equity in income (loss) of subsidiaries	0
NET INCOME (LOSS)	$ 6,997

XML

Items Reclassified from Other Comprehensive Income - Additional Information (Detail) (Selling, general and administrative [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Selling, general and administrative [Member]
Accumulated Other Comprehensive Losses [Line Items]
Company's defined retirement benefit plan and salary continuation plan	$ 0.3

XML

Long-Term Debt - Additional Information (Detail) In Millions, unless otherwise specified	3 Months Ended			3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 7 5/8% Senior Notes [Member] USD ($)	Apr. 01, 2012 7 5/8% Senior Notes [Member] USD ($)	Mar. 31, 2013 11 3/8% Senior Secured Notes [Member] USD ($)	Apr. 01, 2012 11 3/8% Senior Secured Notes [Member] USD ($)	Mar. 31, 2013 RBS [Member] USD ($)	Mar. 31, 2013 RBS [Member] EUR (€)	Mar. 31, 2013 Non-U.S. subsidiaries [Member] USD ($)
Debt Instrument [Line Items]
Outstanding		$ 275.0	$ 275.0	$ 8.1	$ 8.0
Estimated fair value		297.0	296.7	8.1	8.1
Debt instrument interest rate		7.625%		11.375%
Debt instrument maturity date		2018		2013
Maximum borrowing capacity	100
Additional borrowing capacity	150.0						20.0	18.8
Amount outstanding	0						0	0
Letters of credit outstanding	3.6
Potential additional borrowings	57.1
Additional borrowings						$ 25.6	€ 20.0

XML

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Summary of Operating Results for Discontinued Operations

Summary operating results for discontinued operations were as follows:

	Three Months Ended
	March 31, 2013		April 2, 2012
	(In thousands)
Net sales	$	0	$	22,744
Income (Loss) on operations before taxes on income		0		251
Tax expense (benefit)		0		88
Income (Loss) on operations, net of tax		0		163

XML

Supplemental Condensed Consolidating Guarantor Financial Statements - Condensed Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012	Apr. 01, 2012	Jan. 01, 2012
CURRENT ASSETS:
Cash and Cash Equivalents	$ 65,079	$ 90,533	$ 63,072	$ 50,624
Accounts receivable	113,819	137,313
Inventories	157,519	141,176
TOTAL CURRENT ASSETS	407,336	430,651
Property and equipment less accumulated depreciation	173,939	165,725
Goodwill	73,313	75,672
OTHER ASSETS	55,195	54,463
TOTAL ASSETS	772,207	789,367
LIABILITIES AND SHAREHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES	145,957	161,826
SENIOR NOTES	275,000	275,000
DEFERRED INCOME TAXES	6,402	7,339
OTHER	46,360	49,500
TOTAL LIABILITIES	473,719	493,665
Common stock	6,617	6,606
Additional Paid-In Capital	368,383	366,677
Retained earnings (deficit)	(11,403)	(16,746)
AOCI-Foreign currency translation adjustment	(31,503)	(25,344)
AOCI-Pension liability	(33,606)	(35,491)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	772,207	789,367
GUARANTOR SUBSIDIARIES [Member]
CURRENT ASSETS:
Cash and Cash Equivalents	2,184	3,932
Accounts receivable	44,131
Inventories	71,301
Prepaids and deferred income taxes	6,093
TOTAL CURRENT ASSETS	123,709
Property and equipment less accumulated depreciation	77,972
Investment in subsidiaries	558,798
Goodwill	6,542
OTHER ASSETS	1,275
TOTAL ASSETS	768,296
LIABILITIES AND SHAREHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES	31,975
SENIOR NOTES	0
DEFERRED INCOME TAXES	0
OTHER	4
TOTAL LIABILITIES	31,979
Redeemable preferred stock	0
Common stock	94,145
Additional Paid-In Capital	249,302
Retained earnings (deficit)	394,820
AOCI-Foreign currency translation adjustment	(1,950)
AOCI-Pension liability	0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	768,296
NON-GUARANTOR SUBSIDIARIES [Member]
CURRENT ASSETS:
Cash and Cash Equivalents	22,667	36,325
Accounts receivable	69,028
Inventories	86,218
Prepaids and deferred income taxes	50,216
TOTAL CURRENT ASSETS	228,129
Property and equipment less accumulated depreciation	92,817
Investment in subsidiaries	220,556
Goodwill	66,771
OTHER ASSETS	9,057
TOTAL ASSETS	617,330
LIABILITIES AND SHAREHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES	105,704
SENIOR NOTES	0
DEFERRED INCOME TAXES	9,861
OTHER	1,581
TOTAL LIABILITIES	117,146
Redeemable preferred stock	0
Common stock	102,199
Additional Paid-In Capital	12,525
Retained earnings (deficit)	438,138
AOCI-Foreign currency translation adjustment	(23,005)
AOCI-Pension liability	(29,673)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	617,330
INTERFACE, INC. (PARENT CORPORATION) [Member]
CURRENT ASSETS:
Cash and Cash Equivalents	40,228	50,276
Accounts receivable	660
Inventories	0
Prepaids and deferred income taxes	14,610
TOTAL CURRENT ASSETS	55,498
Property and equipment less accumulated depreciation	3,150
Investment in subsidiaries	(151,552)
Goodwill	0
OTHER ASSETS	107,287
TOTAL ASSETS	14,383
LIABILITIES AND SHAREHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES	8,278
SENIOR NOTES	275,000
DEFERRED INCOME TAXES	(3,459)
OTHER	44,775
TOTAL LIABILITIES	324,594
Redeemable preferred stock	0
Common stock	6,617
Additional Paid-In Capital	368,383
Retained earnings (deficit)	(674,730)
AOCI-Foreign currency translation adjustment	(6,548)
AOCI-Pension liability	(3,933)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	14,383
CONSOLIDATION AND ELIMINATION ENTRIES [Member]
CURRENT ASSETS:
Cash and Cash Equivalents	0	0
Accounts receivable	0
Inventories	0
Prepaids and deferred income taxes	0
TOTAL CURRENT ASSETS	0
Property and equipment less accumulated depreciation	0
Investment in subsidiaries	(627,802)
Goodwill	0
OTHER ASSETS	0
TOTAL ASSETS	(627,802)
LIABILITIES AND SHAREHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES	0
SENIOR NOTES	0
DEFERRED INCOME TAXES	0
OTHER	0
TOTAL LIABILITIES	0
Redeemable preferred stock	0
Common stock	(196,344)
Additional Paid-In Capital	(261,827)
Retained earnings (deficit)	(169,631)
AOCI-Foreign currency translation adjustment	0
AOCI-Pension liability	0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(627,802)
CONSOLIDATED TOTALS [Member]
CURRENT ASSETS:
Cash and Cash Equivalents	65,079	90,533
Accounts receivable	113,819
Inventories	157,519
Prepaids and deferred income taxes	70,919
TOTAL CURRENT ASSETS	407,336
Property and equipment less accumulated depreciation	173,939
Investment in subsidiaries	0
Goodwill	73,313
OTHER ASSETS	117,619
TOTAL ASSETS	772,207
LIABILITIES AND SHAREHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES	145,957
SENIOR NOTES	275,000
DEFERRED INCOME TAXES	6,402
OTHER	46,360
TOTAL LIABILITIES	473,719
Redeemable preferred stock	0
Common stock	6,617
Additional Paid-In Capital	368,383
Retained earnings (deficit)	(11,403)
AOCI-Foreign currency translation adjustment	(31,503)
AOCI-Pension liability	(33,606)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 772,207

XML

Supplemental Cash Flow Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Operating Cash Flows Direct Method [Abstract]
Cash payments for interest	$ 0.3	$ 0.8
Income tax payments	$ 1.6	$ 3.0

XML

Stock-Based Compensation - Restricted Stock Outstanding (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	584,000	557,500
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Shares, Beginning Balance	1,973,500
Granted, Shares	584,000
Vested, Shares	372,000
Forfeited or canceled, Shares	475,500
Outstanding, Shares, Ending Balance	1,710,000
Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance	14.79
Granted, Weighted Average Grant Date Fair Value	16.06
Vested, Weighted Average Grant Date Fair Value	14.63
Forfeited or canceled, Weighted Average Grant Date Fair Value	14.04
Outstanding, Weighted Average Grant Date Fair Value, Ending Balance	15.45

XML

Supplemental Condensed Consolidating Guarantor Financial Statements - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2013
Debt Instrument [Line Items]
Senior notes, interest rate	7.625%
Guarantor Subsidiaries due, year	2018
11 3/8% Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior notes, interest rate	11.375%
Guarantor Subsidiaries due, year	2013

XML

Long-Term Debt

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Long-Term Debt

NOTE 4 – LONG-TERM DEBT

7 5/8% Senior Notes

As of both March 31, 2013, and April 1, 2012, the Company had outstanding $275 million in 7 5/8% Senior Notes due 2018 (the “7 5/8% Senior Notes”). The estimated fair value of the 7 5/8% Senior Notes as of March 31, 2013, and April 1, 2012, based on then current market prices, was $297.0 and $296.7 million, respectively.

11 3/8% Senior Secured Notes

As of March 31, 2013, and April 1, 2012, the Company had outstanding $8.1 million and $8.0 million in 11 3/8% Senior Secured Notes due 2013 (the “11 3/8% Senior Secured Notes”), respectively. The estimated fair value of the 11 3/8% Senior Secured Notes as of both March 31, 2013, and April 1, 2012, based on then current market prices, was $8.1 million.

Credit Facilities

The Company maintains a domestic revolving credit agreement (the “Facility”) that provides a maximum aggregate amount of $100 million of loans and letters of credit available to us at any one time (subject to a borrowing base) with an option for us to increase that maximum aggregate amount to $150 million (upon the satisfaction of certain conditions, and subject to a borrowing base). The Company is presently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future. As of March 31, 2013, there were zero borrowings and $3.6 million in letters of credit outstanding under the Facility. As of March 31, 2013, the Company could have incurred $57.1 million of additional borrowings under the Facility.

Interface Europe B.V. (the Company’s modular carpet subsidiary based in the Netherlands) and certain of its subsidiaries maintain a Credit Agreement with The Royal Bank of Scotland N.V. (“RBS”). Under this Credit Agreement, RBS provides a credit facility, until further notice, for borrowings and bank guarantees of €20 million. As of March 31, 2013, there were no borrowings outstanding under this facility, and the Company could have incurred €20 million (approximately $25.6 million) of additional borrowings under the facility.

Other non-U.S. subsidiaries of the Company have an aggregate of the equivalent of $18.8 million of lines of credit available. As of March 31, 2013 there were no borrowings outstanding under these lines of credit.

XML

Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Reduce liability for unrecognized tax benefits	$ 2.0
Decrease in liability for unrecognized tax benefits	2.3
Accrued for unrecognized tax benefits	$ 22.9

XML

Earnings Per Share - Distributed and Undistributed Earnings (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Basic Earnings (Loss) Per Share Attributable to Common Stockholders:
Basic Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.11	$ (0.10)
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders:
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.11	$ (0.10)
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Basic Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.00	$ 0.00
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.00	$ 0.00
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders	$ 0.11	$ (0.09)
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders	$ 0.11	$ (0.09)
Distributed Earnings [Member]
Basic Earnings (Loss) Per Share Attributable to Common Stockholders:
Basic Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.03	$ (0.02)
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders:
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.03	$ (0.02)
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Basic Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.00	$ 0.00
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.00	$ 0.00
Undistributed Earnings [Member]
Basic Earnings (Loss) Per Share Attributable to Common Stockholders:
Basic Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.08	$ (0.08)
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders:
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.08	$ (0.08)
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Basic Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.00	$ 0.00
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders	$ 0.00	$ 0.00

XML

Inventories - Components of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
Inventory Disclosure [Abstract]
Finished Goods	$ 99,850	$ 87,094
Work in Process	9,402	7,030
Raw Materials	48,267	47,052
Total	$ 157,519	$ 141,176

XML

Fire at Australian Manufacturing Facility - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	9 Months Ended
	Mar. 31, 2013	Jun. 30, 2012	Mar. 31, 2013
Property, Plant and Equipment [Line Items]
Non-production cost related to fire	$ 5.2
Picton Facility [Member]
Property, Plant and Equipment [Line Items]
Percentage of aggregate annual production of company		7.00%
Percentage of net sales		10.00%
Percentage of operating income		13.00%
Impairment of fixed assets at Picton Facility	2.0		24.3
Excess production costs related to the fire			23.1
Insurance recoveries already received			$ 20.7

XML

Earnings Per Share - Net Income Attributable to Participating Securities (Detail) (Participating securities [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Participating securities [Member]
Earnings Per Share [Line Items]
Net Income	$ 0.2	$ 0

XML

Earnings Per Share - Weighted Average Shares for Basic and Diluted EPS (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Earnings Per Share [Abstract]
Weighted Average Shares Outstanding	64,406	63,443
Participating Securities	1,710	0
Shares for Basic Earnings Per Share	66,116	63,443
Dilutive Effect of Stock Options	158	0
Shares for Diluted Earnings Per Share	66,274	63,443

XML

Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 3 – EARNINGS PER SHARE

The Company computes basic earnings per share (“EPS”) by dividing net income (loss), 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.

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. Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock. As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS when the Company is in an income position. 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. The following tables show distributed and undistributed earnings:

	Three Months Ended
	March 31, 2013		April 1, 2012
Earnings Per Share from Continuing Operations:
Basic Earnings (Loss) Per Share Attributable to Common Stockholders:
Distributed Earnings	$	0.03	$	(0.02	)
Undistributed Earnings		0.08		(0.08	)
Total	$	0.11	$	(0.10	)
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders:
Distributed Earnings	$	0.03	$	(0.02	)
Undistributed Earnings		0.08		(0.08	)
Total	$	0.11	$	(0.10	)
Earnings (Loss) Per Share from Discontinued Operations:
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00	$	0.00
Undistributed earnings		0.00		0.00
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00	$	0.00
Undistributed earnings		0.00		0.00
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders	$	0.11	$	(0.09	)
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders	$	0.11	$	(0.09	)

The following table presents net income that was attributable to participating securities.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
Net Income	$	0.2	$	0.0

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

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Weighted Average Shares Outstanding		64,406		63,443
Participating Securities		1,710		0
Shares for Basic Earnings Per Share		66,116		63,443
Dilutive Effect of Stock Options		158		0
Shares for Diluted Earnings Per Share		66,274		63,443

For the three months ended April 1, 2012, options to purchase 535,000 shares of common stock were not included in the computation of diluted EPS as their impact would be anti-dilutive. For the three months ended April 1, 2012, 2,009,000 shares of participating securities were excluded from the computation of EPS as their impact would be anti-dilutive.

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Earnings Per Share - Additional Information (Detail)	3 Months Ended
	Apr. 01, 2012
Participating securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of diluted EPS	2,009,000
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of diluted EPS	535,000

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Restructuring Charges - Restructuring Activities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended					12 Months Ended	3 Months Ended	12 Months Ended		3 Months Ended			12 Months Ended	3 Months Ended	12 Months Ended		3 Months Ended		12 Months Ended
	Dec. 30, 2012	Sep. 30, 2012	Apr. 01, 2012 Workforce Reduction [Member]	Jan. 01, 2012 Workforce Reduction [Member]	Mar. 31, 2013 Workforce Reduction [Member] 2012 Restructuring Charge [Member]	Dec. 30, 2012 Workforce Reduction [Member] 2012 Restructuring Charge [Member]	Mar. 31, 2013 Workforce Reduction [Member] 2011 Restructuring Charge [Member]	Dec. 30, 2012 Workforce Reduction [Member] 2011 Restructuring Charge [Member]	Jan. 01, 2012 Workforce Reduction [Member] 2011 Restructuring Charge [Member]	Apr. 01, 2012 Fixed Asset Impairment [Member]	Jan. 01, 2012 Fixed Asset Impairment [Member]	Mar. 31, 2013 Fixed Asset Impairment [Member] 2012 Restructuring Charge [Member]	Dec. 30, 2012 Fixed Asset Impairment [Member] 2012 Restructuring Charge [Member]	Mar. 31, 2013 Fixed Asset Impairment [Member] 2011 Restructuring Charge [Member]	Dec. 30, 2012 Fixed Asset Impairment [Member] 2011 Restructuring Charge [Member]	Jan. 01, 2012 Fixed Asset Impairment [Member] 2011 Restructuring Charge [Member]	Apr. 01, 2012 Other Related Exit Costs [Member]	Mar. 31, 2013 Other Related Exit Costs [Member] 2012 Restructuring Charge [Member]	Dec. 30, 2012 Other Related Exit Costs [Member] 2012 Restructuring Charge [Member]
Restructuring Cost and Reserve [Line Items]
Total Restructuring Charge	$ 2,300	$ 800				$ 8,465			$ 4,979				$ 9,364			$ 776			$ 1,596
Costs Incurred			5,400	5,000	2,566	5,205	101	3,450	867	9,300	800	0	9,364	0	0	776	1,600	75	1,168
Restructuring Reserve					$ 694		$ 561					$ 0		$ 0				$ 353

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CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 30, 2012
CURRENT ASSETS:
Cash and Cash Equivalents	$ 65,079	$ 90,533
Accounts Receivable, net	113,819	137,313
Inventories	157,519	141,176
Prepaid Expenses and Other Current Assets	61,001	51,358
Deferred Income Taxes	9,918	10,271
TOTAL CURRENT ASSETS	407,336	430,651
PROPERTY AND EQUIPMENT, less accumulated depreciation	173,939	165,725
DEFERRED TAX ASSET	62,424	62,856
Goodwill	73,313	75,672
OTHER ASSETS	55,195	54,463
TOTAL ASSETS	772,207	789,367
CURRENT LIABILITIES:
Accounts Payable	54,563	56,292
Accrued Expenses	83,274	97,424
Current Portion of Long-Term Debt	8,120	8,110
TOTAL CURRENT LIABILITIES	145,957	161,826
SENIOR NOTES	275,000	275,000
DEFERRED INCOME TAXES	6,402	7,339
OTHER	46,360	49,500
TOTAL LIABILITIES	473,719	493,665
Commitments and Contingencies
SHAREHOLDERS' EQUITY:
Preferred Stock	0	0
Common stock	6,617	6,606
Additional Paid-In Capital	368,383	366,677
Accumulated Deficit	(11,403)	(16,746)
Accumulated Other Comprehensive Income - Foreign Currency Translation Adjustment	(31,503)	(25,344)
Accumulated Other Comprehensive Income - Pension Liability	(33,606)	(35,491)
TOTAL SHAREHOLDERS' EQUITY	298,488	295,702
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 772,207	$ 789,367

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Fire at Australian Manufacturing Facility - Nature of Expenses as Well as Insurance Receivables and Amounts Already Received Related to Fire (Detail) (Picton Facility [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Mar. 31, 2013	Mar. 31, 2013
Picton Facility [Member]
Property, Plant and Equipment [Line Items]
Impairment of fixed assets at the Picton Facility	$ 2.0	$ 24.3
Incremental payroll costs		4.2
Incremental shipping costs		17.6
Other incremental costs		1.3
Total incurred costs through December 30, 2012		47.4
Insurance recovery receivable	26.7	26.7
Insurance recoveries already received		$ 20.7

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Condensed Footnotes

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Condensed Footnotes

NOTE 1 – CONDENSED FOOTNOTES

As contemplated by the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 30, 2012, as filed with the Commission.

The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The December 30, 2012 consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States.

As described below in Note 8, the Company has sold its Bentley Prince Street business segment. The results of operations and related disposal costs, gains and losses for this business are classified as discontinued operations, where applicable.

Certain prior period amounts have been reclassified to conform to the current period presentation.

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Stock-Based Compensation - Stock Options Outstanding (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding Shares, Beginning Balance	393,500
Granted, Shares	0
Exercised, Shares	81,000
Forfeited or canceled, Shares	5,500
Outstanding Shares, Ending Balance	307,000
Exercisable, Shares	302,000
Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 8.49
Granted, Weighted Average Exercise Price	$ 0
Exercised, Weighted Average Exercise Price	$ 9.73
Forfeited or canceled, Weighted Average Exercise Price	$ 2.71
Outstanding, Weighted Average Exercise Price, Ending Balance	$ 8.35
Exercisable, Weighted Average Exercise Price	$ 8.27

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Options Outstanding

The following table summarizes stock options outstanding as of March 31, 2013, as well as activity during the three months then ended:

	Shares		Weighted Average Exercise Price
Outstanding at December 30, 2012		393,500	$	8.49
Granted		0		0
Exercised		81,000		9.73
Forfeited or canceled		5,500		2.71
Outstanding at March 31, 2013		307,000	$	8.35
Exercisable at March 31, 2013		302,000	$	8.27

Cash Proceeds and Intrinsic Value Related to Total Stock Options Exercised

Cash proceeds and intrinsic value related to total stock options exercised during the first three months of 2013 and 2012 are provided in the following table:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Proceeds from stock options exercised	$	868	$	131
Intrinsic value of stock options exercised	$	581	$	179

Restricted Stock Outstanding

The following table summarizes restricted stock outstanding as of March 31, 2013, as well as activity during the three months then ended:

	Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2012		1,973,500	$	14.79
Granted		584,000		16.06
Vested		372,000		14.63
Forfeited or canceled		475,500		14.04
Outstanding at March 31, 2013		1,710,000	$	15.45

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Stock-Based Compensation - Cash Proceeds and Intrinsic Value Related to Total Stock Options Exercised (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Statement Of Partners Capital [Abstract]
Proceeds from stock options exercised	$ 868	$ 131
Intrinsic value of stock options exercised	$ 581	$ 179

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Restructuring Charges (Tables)

3 Months Ended

Mar. 31, 2013

2012 Restructuring Charge [Member]

Restructuring Activities

A summary of these restructuring activities is presented below:

	Total Restructuring Charge		Costs Incurred in 2012		Costs Incurred in 2013		Balance at March 31,  2013
	((In thousands)
Workforce Reduction	$	8,465	$	5,205	$	2,566	$	694
Fixed Asset Impairment		9,364		9,364		0		0
Other Related Exit Costs		1,596		1,168		75		353

2011 Restructuring Charge [Member]

Restructuring Activities

A summary of these restructuring activities is presented below:

	Restructuring Charge		Costs Incurred in 2011		Costs Incurred in 2012		Costs Incurred in 2013		Balance at March 31, 2013
	(In thousands)
Workforce Reduction	$	4,979	$	867	$	3,450	$	101	$	561
Fixed Asset Impairment		776		776		0		0		0

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Inventories

3 Months Ended

Mar. 31, 2013

Inventory Disclosure [Abstract]

Inventories

NOTE 2 – INVENTORIES

Inventories are summarized as follows:

	March 31, 2013		December 30, 2012
	(In thousands)
Finished Goods	$	99,850	$	87,094
Work in Process		9,402		7,030
Raw Materials		48,267		47,052
	$	157,519	$	141,176

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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Income Statement [Abstract]
NET SALES	$ 210,369	$ 210,016
Cost of Sales	139,117	139,498
GROSS PROFIT ON SALES	71,252	70,518
Selling, general and administrative expenses	57,258	53,901
Restructuring and Asset Impairment Charge	0	16,316
OPERATING INCOME	13,994	301
Interest Expense	6,158	6,653
Other Expense	407	400
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	7,429	(6,752)
Income Tax Expense (Benefit)	432	(655)
Income (loss) from continuing operations	6,997	(6,097)
Income from discontinued operations, net of tax	0	163
NET INCOME (LOSS)	$ 6,997	$ (5,934)
Earnings (Loss) Per Share - Basic
Continuing Operations	$ 0.11	$ (0.10)
Discontinued Operations	$ 0.00	$ 0.00
Earnings (Loss) Per Share - Basic	$ 0.11	$ (0.09)
Earnings (Loss) Per Share - Diluted
Continuing Operations	$ 0.11	$ (0.10)
Discontinued Operations	$ 0.00	$ 0.00
Earnings (Loss) Per Share - Diluted	$ 0.11	$ (0.09)
Common Shares Outstanding - Basic	66,116	63,443
Common Shares Outstanding - Diluted	66,274	63,443

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Fire at Australian Manufacturing Facility (Fire at Australian manufacturing facility [Member])

3 Months Ended

Mar. 31, 2013

Fire at Australian manufacturing facility [Member]

Fire at Australian Manufacturing Facility

NOTE 12 – FIRE AT AUSTRALIAN MANUFACTURING FACILITY

On July 20, 2012, a fire occurred at the Company’s manufacturing facility in Picton, Australia. The facility’s carpet production line, primarily comprised of tufting and backing machinery, sustained extensive damage and was rendered inoperable. The Picton facility served the Company’s customers throughout Australia and New Zealand. It represented approximately 7% of the Company’s total annual production, 10% of its net sales, and 13% of its operating income. Since the fire, the Company has utilized adequate production capacity at its manufacturing facilities in Thailand, China and elsewhere to meet customer demand typically serviced from Picton. The Company has business interruption and property damage insurance. The Company is in the process of building a new manufacturing facility in Minto, Australia and expects it to become operational in late 2013.

Since the fire, the Company has recorded charges of approximately $24.3 million ($2.0 million in the first quarter of 2013) for impairment of fixed assets related to the fire, and has incurred approximately $23.1 million of excess production costs related to the fire, as it has utilized other facilities to service customers in the Australia and New Zealand markets. As of March 31, 2013, the Company has determined that the receipt of reimbursement of these expenses from its insurer is probable in accordance with its insurance policies and has therefore recorded a receivable for these items. As of March 31, 2013, the Company had received $20.7 million of reimbursement from the insurance company related to the fire at the Picton facility. The table below details the nature of expenses as well as insurance receivables and amounts already received related to the fire:

	(in millions)
Impairment of fixed assets at the Picton Facility	$	24.3
Incremental payroll costs		4.2
Incremental shipping costs		17.6
Other incremental costs		1.3
Total incurred costs through December 30, 2012	$	47.4
Insurance recovery receivable	$	26.7
Insurance recoveries already received	$	20.7

The Company also has made an additional claim for loss of profits related to the fire. The amount of this claim is approximately $5.2 million and relates to loss of profits from the date of the fire through the end of 2012. The Company continues to gather information related to additional insurance claims for loss of profits as a result of the fire. As of March 31, 2013, the Company had not recorded any receivables or amounts for loss of profits, but expects to do so at a later date as information and analysis become more complete and recovery becomes probable.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 03, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Trading Symbol	TILE
Entity Registrant Name	INTERFACE INC
Entity Central Index Key	0000715787
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		66,180,032

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Items Reclassified from Other Comprehensive Income

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Items Reclassified from Other Comprehensive Income

NOTE 13 – ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME

During the first quarter of 2013, the Company did not reclassify any significant amounts out of accumulated other comprehensive income. The reclassifications that occurred in that period were primarily comprised of $0.3 million related to the Company’s defined retirement benefit plan and salary continuation plan. These reclassifications were included in the selling, general and administrative expenses line item of the Company’s consolidated condensed statement of operations.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Statement Of Partners Capital [Abstract]
Net Income (Loss)	$ 6,997	$ (5,934)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment	(6,159)	7,874
Other Comprehensive Income (Loss), Pension Liability Adjustment	1,885	(891)
Comprehensive Income	$ 2,723	$ 1,049

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Restructuring Charges

3 Months Ended

Mar. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring Charges

NOTE 7 – RESTRUCTURING CHARGES

2012 Restructuring Charge

In the first quarter of 2012, the Company committed to a restructuring plan in its continuing efforts to reduce costs across its worldwide operations and more closely align its operations with reduced demand levels in certain markets. The plan primarily consisted of ceasing manufacturing and warehousing operations at its facility in Shelf, England. In connection with this restructuring plan, the Company incurred a pre-tax restructuring and asset impairment charge in the first quarter of 2012 in an amount of $16.3 million. The charge was comprised of employee severance expenses of $5.4 million, other related exit costs of $1.6 million, and a charge for impairment of assets of approximately $9.3 million. Approximately $7 million of the charge will result in cash expenditures, primarily severance expense. In the third and fourth quarters of 2012, the Company recorded additional charges of $0.8 million and $2.3 million, respectively, of cash severance expenses related to the finalization of this plan for its European operations. As a result of these 2012 restructuring charges, a reduction of approximately 145 employees occurred.

A summary of these restructuring activities is presented below:

	Total Restructuring Charge		Costs Incurred in 2012		Costs Incurred in 2013		Balance at March 31,  2013
	((In thousands)
Workforce Reduction	$	8,465	$	5,205	$	2,566	$	694
Fixed Asset Impairment		9,364		9,364		0		0
Other Related Exit Costs		1,596		1,168		75		353

2011 Restructuring Charge

In the fourth quarter of 2011, the Company committed to a restructuring plan intended to reduce costs across its worldwide operations and more closely align its operations with reduced demand in certain markets. As a result of this plan, the Company incurred pre-tax restructuring and asset impairment charges of $5.8 million in the fourth quarter of 2011. The majority of this charge ($5.0 million) related to the severance of approximately 90 employees in Europe, Asia and the United States. The remainder of the charge ($0.8 million) related to contract termination and fixed asset impairment costs. Approximately $5.0 million of this charge will result in cash expenditures, primarily severance expenses. Actions and expenses related to this plan were substantially completed by the end of 2011.

A summary of these restructuring activities is presented below:

	Restructuring Charge		Costs Incurred in 2011		Costs Incurred in 2012		Costs Incurred in 2013		Balance at March 31, 2013
	(In thousands)
Workforce Reduction	$	4,979	$	867	$	3,450	$	101	$	561
Fixed Asset Impairment		776		776		0		0		0

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

NOTE 6 – EMPLOYEE BENEFIT PLANS

The following tables provide the components of net periodic benefit cost for the three-month periods ended March 31, 2013, and April 1, 2012, respectively:

	Three Months Ended
Defined Benefit Retirement Plan (Europe)	March 31, 2013			April 1, 2012
	(In thousands)
Service cost	$	211		$	116
Interest cost		2,390			2,544
Expected return on assets		(2,487	)		(2,821	)
Amortization of prior service costs		22			13
Recognized net actuarial (gains)/losses		243			229
Net periodic benefit cost	$	379		$	81

	Three Months Ended
Salary Continuation Plan (SCP)	March 31, 2013		April 1, 2012
	(In thousands)
Service cost	$	134	$	113
Interest cost		249		254
Amortization of prior service cost		12		12
Amortization of (gain)/loss		110		67
Net periodic benefit cost	$	505	$	446

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost for the three-month periods ended March 31, 2013, and April 1, 2012, respectively:

	Three Months Ended
Defined Benefit Retirement Plan (Europe)	March 31, 2013			April 1, 2012
	(In thousands)
Service cost	$	211		$	116
Interest cost		2,390			2,544
Expected return on assets		(2,487	)		(2,821	)
Amortization of prior service costs		22			13
Recognized net actuarial (gains)/losses		243			229
Net periodic benefit cost	$	379		$	81

	Three Months Ended
Salary Continuation Plan (SCP)	March 31, 2013		April 1, 2012
	(In thousands)
Service cost	$	134	$	113
Interest cost		249		254
Amortization of prior service cost		12		12
Amortization of (gain)/loss		110		67
Net periodic benefit cost	$	505	$	446

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Supplemental Condensed Consolidating Guarantor Financial Statements

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Supplemental Condensed Consolidating Guarantor Financial Statements

NOTE 14 – 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 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 MARCH 31, 2013

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	130,708	$	111,873	$	0		$	(32,212	)	$	210,369
Cost of sales		95,709		75,620		0			(32,212	)		139,117
Gross profit on sales		34,999		36,253		0			0			71,252
Selling, general and administrative expenses		22,697		26,092		8,469			0			57,258
Operating income (loss)		12,302		10,161		(8,469	)		0			13,994
Interest/Other expense		5,971		2,945		(2,351	)		0			6,565
Income (loss) before taxes on income and equity in income of subsidiaries		6,331		7,216		(6,118	)		0			7,429
Income tax expense (benefit)		368		419		(355	)		0			432
Equity in income (loss) of subsidiaries		0		0		12,760			(12,760	)		0
Net income (loss)	$	5,963	$	6,797	$	6,997		$	(12,760	)	$	6,997

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)		CONSOLIDATION AND  ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	5,963		$	6,797		$	6,997	$	(12,760	)	$	6,997
Currency Translation Adjustment		(7	)		(6,314	)		162		0			(6,159	)
Pension Liability Adjustment		0			1,812			73		0			1,885
Comprehensive Income (Loss)	$	5,956		$	2,295		$	7,232	$	(12,760	)	$	2,723

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,184		$	22,667		$	40,228		$	0		$	65,079
Accounts receivable		44,131			69,028			660			0			113,819
Inventories		71,301			86,218			0			0			157,519
Prepaids and deferred income taxes		6,093			50,216			14,610			0			70,919
Total current assets		123,709			228,129			55,498			0			407,336
Property and equipment less accumulated depreciation		77,972			92,817			3,150			0			173,939
Investment in subsidiaries		558,798			220,556			(151,552	)		(627,802	)		0
Goodwill		6,542			66,771			0			0			73,313
Other assets		1,275			9,057			107,287			0			117,619
	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	31,975		$	105,704		$	8,278		$	0		$	145,957
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			9,861			(3,459	)		0			6,402
Other		4			1,581			44,775			0			46,360
Total liabilities		31,979			117,146			324,594			0			473,719
Redeemable preferred stock		0			0			0			0			0
Common stock		94,145			102,199			6,617			(196,344	)		6,617
Additional paid-in capital		249,302			12,525			368,383			(261,827	)		368,383
Retained earnings (deficit)		394,820			438,138			(674,730	)		(169,631	)		(11,403	)
AOCI—Foreign currency translation adjustment		(1,950	)		(23,005	)		(6,548	)		0			(31,503	)
AOCI—Pension liability		0			(29,673	)		(3,933	)		0			(33,606	)
	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS

ENDED MARCH 31, 2013

	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	$	(5,666	)	$	(11,246	)	$	9,509		$	(1,594	)	$	(8,997	)
Cash flows from investing activities:
Purchase of plant and equipment		(5,624	)		(9,252	)		(7	)		0			(14,883	)
Other		9			(209	)		(285	)		0			(485	)
Net cash used for investing activities		(5,615	)		(9,461	)		(292	)		0			(15,368	)
Cash flows from financing activities:
Proceeds from issuance of common stock		0			0			868			0			868
Other		9,533			7,352			(18,479	)		1,594			0
Dividends paid		0			0			(1,654	)		0			(1,654	)
Net cash provided by (used for) financing activities		9,533			7,352			(19,265	)		1,594			(786	)
Effect of exchange rate change on cash		0			(303	)		0			0			(303	)
Net increase (decrease) in cash		(1,748	)		(13,658	)		(10,048	)		0			(25,454	)
Cash at beginning of period		3,932			36,325			50,276			0			90,533
Cash at end of period	$	2,184		$	22,667		$	40,228		$	0		$	65,079

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Recently Issued Accounting Pronouncements

3 Months Ended

Mar. 31, 2013

Accounting Changes And Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

NOTE 10 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard which requires entities to present information about significant items reclassified out of accumulated other comprehensive income (loss) by component either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. The standard was effective for the Company in the first quarter of fiscal year 2013. As this standard impacts presentation only, the adoption did not have any impact on the Company’s consolidated financial statements.

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Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

NOTE 8 – DISCONTINUED OPERATIONS

In the third quarter of 2012, the Company sold its Bentley Prince Street business segment, which is now reported in the results of operations as “discontinued operations,” where applicable.

Summary operating results for discontinued operations were as follows:

	Three Months Ended
	March 31, 2013		April 2, 2012
	(In thousands)
Net sales	$	0	$	22,744
Income (Loss) on operations before taxes on income		0		251
Tax expense (benefit)		0		88
Income (Loss) on operations, net of tax		0		163

As of March 31, 2013 and December 30, 2012, there were no assets or liabilities related to the above-described discontinued operations that were held for sale.

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Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

NOTE 9 – SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest amounted to $0.3 million and $0.8 million for the three month periods ended March 31, 2013, and April 1, 2012, respectively. Income tax payments amounted to $1.6 million and $3.0 million for the three month periods ended March 31, 2013, and April 1, 2012, respectively.

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11 – INCOME TAXES

In the first quarter of 2013, the Company executed advance pricing agreements for tax years 2006 through 2011 with the Canada Revenue Agency and the U.S. Internal Revenue Service in relation to the U.S. bilateral advanced pricing agreement filed in 2008. As a result of executing the advance pricing agreements, the Company was able to reduce its liability for unrecognized tax benefits in the first quarter of 2013 by $2.0 million. This benefit has been included in the “Income Tax Expense (Benefit)” line of the Company’s consolidated condensed statement of operations for the three months ended March 31, 2013.

Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first three months of 2013, due largely to the resolution of the bilateral advanced pricing agreement discussed above, the Company decreased its liability for unrecognized tax benefits by $2.3 million. As of March 31, 2013, the Company had accrued approximately $22.9 million for unrecognized tax benefits.

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option compensation costs	$ 0.1	$ 0.2
Unrecognized total compensation related to unvested stock options	0.1
Weighted average period of time over cost recognized	1 year
Aggregate intrinsic value of in-the-money options outstanding	3.3
Aggregate intrinsic value of options exercisable	3.3
Restricted stock awards	584,000	557,500
Compensation expense related to restricted stock grants	0.6	1.3
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vest with respect to each recipient	2 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vest with respect to each recipient	5 years
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards	584,000
Unrecognized total compensation cost related to unvested restricted stock	$ 16.6
Unrecognized total compensation cost related to unvested restricted stock end period	2016

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Supplemental Condensed Consolidating Guarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Condensed Financial Statements, Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$ (8,997)	$ 24,326
Cash flows from investing activities:
Purchase of plant and equipment	(14,883)	(10,354)
Other	(485)	(1,035)
CASH USED IN INVESTING ACTIVITIES	(15,368)	(11,389)
Cash flows from financing activities:
Proceeds from issuance of common stock	868	131
Dividends paid	(1,654)	(1,307)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(786)	(1,176)
Effect of exchange rate change on cash	(303)	687
Net change during the period	(25,454)	12,448
Balance at beginning of period	90,533	50,624
Balance at end of period	65,079	63,072
GUARANTOR SUBSIDIARIES [Member]
Condensed Financial Statements, Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(5,666)
Cash flows from investing activities:
Purchase of plant and equipment	(5,624)
Other	9
CASH USED IN INVESTING ACTIVITIES	(5,615)
Cash flows from financing activities:
Proceeds from issuance of common stock	0
Other	9,533
Dividends paid	0
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	9,533
Effect of exchange rate change on cash	0
Net change during the period	(1,748)
Balance at beginning of period	3,932
Balance at end of period	2,184
NON-GUARANTOR SUBSIDIARIES [Member]
Condensed Financial Statements, Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(11,246)
Cash flows from investing activities:
Purchase of plant and equipment	(9,252)
Other	(209)
CASH USED IN INVESTING ACTIVITIES	(9,461)
Cash flows from financing activities:
Proceeds from issuance of common stock	0
Other	7,352
Dividends paid	0
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	7,352
Effect of exchange rate change on cash	(303)
Net change during the period	(13,658)
Balance at beginning of period	36,325
Balance at end of period	22,667
INTERFACE, INC. (PARENT CORPORATION) [Member]
Condensed Financial Statements, Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	9,509
Cash flows from investing activities:
Purchase of plant and equipment	(7)
Other	(285)
CASH USED IN INVESTING ACTIVITIES	(292)
Cash flows from financing activities:
Proceeds from issuance of common stock	868
Other	(18,479)
Dividends paid	(1,654)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(19,265)
Effect of exchange rate change on cash	0
Net change during the period	(10,048)
Balance at beginning of period	50,276
Balance at end of period	40,228
CONSOLIDATION AND ELIMINATION ENTRIES [Member]
Condensed Financial Statements, Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(1,594)
Cash flows from investing activities:
Purchase of plant and equipment	0
Other	0
CASH USED IN INVESTING ACTIVITIES	0
Cash flows from financing activities:
Proceeds from issuance of common stock	0
Other	1,594
Dividends paid	0
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	1,594
Effect of exchange rate change on cash	0
Net change during the period	0
Balance at beginning of period	0
Balance at end of period	0
CONSOLIDATED TOTALS [Member]
Condensed Financial Statements, Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(8,997)
Cash flows from investing activities:
Purchase of plant and equipment	(14,883)
Other	(485)
CASH USED IN INVESTING ACTIVITIES	(15,368)
Cash flows from financing activities:
Proceeds from issuance of common stock	868
Other	0
Dividends paid	(1,654)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(786)
Effect of exchange rate change on cash	(303)
Net change during the period	(25,454)
Balance at beginning of period	90,533
Balance at end of period	$ 65,079

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Distributed and Undistributed Earnings

The following tables show distributed and undistributed earnings:

	Three Months Ended
	March 31, 2013		April 1, 2012
Earnings Per Share from Continuing Operations:
Basic Earnings (Loss) Per Share Attributable to Common Stockholders:
Distributed Earnings	$	0.03	$	(0.02	)
Undistributed Earnings		0.08		(0.08	)
Total	$	0.11	$	(0.10	)
Diluted Earnings (Loss) Per Share Attributable to Common Stockholders:
Distributed Earnings	$	0.03	$	(0.02	)
Undistributed Earnings		0.08		(0.08	)
Total	$	0.11	$	(0.10	)
Earnings (Loss) Per Share from Discontinued Operations:
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00	$	0.00
Undistributed earnings		0.00		0.00
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders
Distributed earnings	$	0.00	$	0.00
Undistributed earnings		0.00		0.00
Basic earnings (loss) per share attributable to Interface, Inc. common shareholders	$	0.11	$	(0.09	)
Diluted earnings (loss) per share attributable to Interface, Inc. common shareholders	$	0.11	$	(0.09	)

Net Income Attributable to Participating Securities

The following table presents net income that was attributable to participating securities.

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In millions)
Net Income	$	0.2	$	0.0

Weighted Average Shares for Basic and Diluted EPS

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

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Weighted Average Shares Outstanding		64,406		63,443
Participating Securities		1,710		0
Shares for Basic Earnings Per Share		66,116		63,443
Dilutive Effect of Stock Options		158		0
Shares for Diluted Earnings Per Share		66,274		63,443

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Fire at Australian Manufacturing Facility (Tables)

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Nature of Expenses as Well as Insurance Receivables and Amounts Already Received Related to Fire

The table below details the nature of expenses as well as insurance receivables and amounts already received related to the fire:

	(in millions)
Impairment of fixed assets at the Picton Facility	$	24.3
Incremental payroll costs		4.2
Incremental shipping costs		17.6
Other incremental costs		1.3
Total incurred costs through December 30, 2012	$	47.4
Insurance recovery receivable	$	26.7
Insurance recoveries already received	$	20.7

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Supplemental Condensed Consolidating Guarantor Financial Statements - Consolidated Statement of Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Comprehensive Income [Line Items]
Net Income (Loss)	$ 6,997	$ (5,934)
Currency Translation Adjustment	(6,159)	7,874
Pension Liability Adjustment	1,885	(891)
Comprehensive Income (Loss)	2,723	1,049
GUARANTOR SUBSIDIARIES [Member]
Comprehensive Income [Line Items]
Net Income (Loss)	5,963
Currency Translation Adjustment	(7)
Pension Liability Adjustment	0
Comprehensive Income (Loss)	5,956
NON-GUARANTOR SUBSIDIARIES [Member]
Comprehensive Income [Line Items]
Net Income (Loss)	6,797
Currency Translation Adjustment	(6,314)
Pension Liability Adjustment	1,812
Comprehensive Income (Loss)	2,295
INTERFACE, INC. (PARENT CORPORATION) [Member]
Comprehensive Income [Line Items]
Net Income (Loss)	6,997
Currency Translation Adjustment	162
Pension Liability Adjustment	73
Comprehensive Income (Loss)	7,232
CONSOLIDATION AND ELIMINATION ENTRIES [Member]
Comprehensive Income [Line Items]
Net Income (Loss)	(12,760)
Currency Translation Adjustment	0
Pension Liability Adjustment	0
Comprehensive Income (Loss)	(12,760)
CONSOLIDATED TOTALS [Member]
Comprehensive Income [Line Items]
Net Income (Loss)	6,997
Currency Translation Adjustment	(6,159)
Pension Liability Adjustment	1,885
Comprehensive Income (Loss)	$ 2,723

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Discontinued Operations - Summary of Operating Results for Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Apr. 02, 2012
Discontinued Operations And Disposal Groups [Abstract]
Net sales	$ 0		$ 22,744
Income (Loss) on operations before taxes on income	0		251
Tax expense (benefit)	0		88
Income (Loss) on operations, net of tax	$ 0	$ 163	$ 163

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
OPERATING ACTIVITIES:
Net Income (Loss)	$ 6,997	$ (5,934)
Income from discontinued operations, net of tax	0	163
Income (loss) from continuing operations	6,997	(6,097)
Adjustments to reconcile income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	6,159	6,246
Stock compensation amortization expense	554	1,298
Deferred income taxes and other	1,357	(3,113)
Working capital changes:
Accounts receivable	21,942	31,890
Inventories	(17,088)	(3,766)
Prepaid expenses	(10,300)	(4,263)
Accounts payable and accrued expenses	(18,618)	2,131
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(8,997)	24,326
INVESTING ACTIVITIES:
Capital expenditures	(14,883)	(10,354)
Other	(485)	(1,035)
CASH USED IN INVESTING ACTIVITIES	(15,368)	(11,389)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock	868	131
Dividends paid	(1,654)	(1,307)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(786)	(1,176)
Net cash provided by (used in) operating, investing and financing activities	(25,151)	11,761
Effect of exchange rate changes on cash	(303)	687
CASH AND CASH EQUIVALENTS:
Net change during the period	(25,454)	12,448
Balance at beginning of period	90,533	50,624
Balance at end of period	$ 65,079	$ 63,072

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

NOTE 5 – STOCK-BASED COMPENSATION

Stock Option Awards

In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. That cost will be recognized over the period in which the employee is required to provide the services – the requisite service period (usually the vesting period) – in exchange for the award. The grant date fair value for options and similar instruments will be estimated using option pricing models. Under accounting standards, the Company is required to select a valuation technique or option pricing model that meets the criteria as stated in the standard. The Company uses the Black-Scholes model. Accounting standards require that the Company estimate forfeitures for stock options and reduce compensation expense accordingly. The Company has reduced its stock compensation expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

During the first three months of 2013 and 2012, the Company recognized stock option compensation costs of $0.1 million and $0.2 million, respectively. The remaining unrecognized compensation cost related to unvested awards at March 31, 2013, approximated $0.1 million, and the weighted average period of time over which this cost will be recognized is approximately one year.

There were no stock options granted during the first three months of fiscal year 2013 or 2012. The following table summarizes stock options outstanding as of March 31, 2013, as well as activity during the three months then ended:

	Shares		Weighted Average Exercise Price
Outstanding at December 30, 2012		393,500	$	8.49
Granted		0		0
Exercised		81,000		9.73
Forfeited or canceled		5,500		2.71
Outstanding at March 31, 2013		307,000	$	8.35
Exercisable at March 31, 2013		302,000	$	8.27

At March 31, 2013, the aggregate intrinsic value of in-the-money options outstanding and options exercisable was $3.3 million and $3.3 million, respectively (the intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option).

Cash proceeds and intrinsic value related to total stock options exercised during the first three months of 2013 and 2012 are provided in the following table:

	Three Months Ended
	March 31, 2013		April 1, 2012
	(In thousands)
Proceeds from stock options exercised	$	868	$	131
Intrinsic value of stock options exercised	$	581	$	179

The Company did not recognize any significant tax benefit with regard to stock options in either period presented.

Restricted Stock Awards

During the three months ended March 31, 2013 and April 1, 2012, the Company granted restricted stock awards for 584,000 and 557,500 shares of common stock, respectively. Awards of restricted stock (or a portion thereof) vest with respect to each recipient over a two to five-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, awards (or a portion thereof) could vest earlier upon the attainment of certain performance criteria, in the event of a change in control of the Company, or upon involuntary termination without cause.

Compensation expense related to restricted stock grants was $0.6 million and $1.3 million for the three months ended March 31, 2013, and April 1, 2012, respectively. Accounting standards require that the Company estimate forfeitures for restricted stock and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate experience against this forfeiture rate going forward.

The following table summarizes restricted stock outstanding as of March 31, 2013, as well as activity during the three months then ended:

	Shares		Weighted Average Grant Date Fair Value
Outstanding at December 30, 2012		1,973,500	$	14.79
Granted		584,000		16.06
Vested		372,000		14.63
Forfeited or canceled		475,500		14.04
Outstanding at March 31, 2013		1,710,000	$	15.45

As of March 31, 2013, the unrecognized total compensation cost related to unvested restricted stock was $16.6 million. That cost is expected to be recognized by the end of 2016.

The Company did not recognize any significant tax benefit with regard to restricted stock in either period presented.

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Supplemental Condensed Consolidating Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Condensed Consolidating Statement of Operations

INTERFACE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2013

	GUARANTOR SUBSIDIARIES		NON- GUARANTOR SUBSIDIARIES		INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
Net sales	$	130,708	$	111,873	$	0		$	(32,212	)	$	210,369
Cost of sales		95,709		75,620		0			(32,212	)		139,117
Gross profit on sales		34,999		36,253		0			0			71,252
Selling, general and administrative expenses		22,697		26,092		8,469			0			57,258
Operating income (loss)		12,302		10,161		(8,469	)		0			13,994
Interest/Other expense		5,971		2,945		(2,351	)		0			6,565
Income (loss) before taxes on income and equity in income of subsidiaries		6,331		7,216		(6,118	)		0			7,429
Income tax expense (benefit)		368		419		(355	)		0			432
Equity in income (loss) of subsidiaries		0		0		12,760			(12,760	)		0
Net income (loss)	$	5,963	$	6,797	$	6,997		$	(12,760	)	$	6,997

Consolidated Statement of Comprehensive Income

CONSOLIDATED STATEMENT OF COMPREHENSIVE

INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)		CONSOLIDATION AND  ELIMINATION ENTRIES			CONSOLIDATED TOTAL
	(In thousands)
Net Income (loss)	$	5,963		$	6,797		$	6,997	$	(12,760	)	$	6,997
Currency Translation Adjustment		(7	)		(6,314	)		162		0			(6,159	)
Pension Liability Adjustment		0			1,812			73		0			1,885
Comprehensive Income (Loss)	$	5,956		$	2,295		$	7,232	$	(12,760	)	$	2,723

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2013

	GUARANTOR SUBSIDIARIES			NON- GUARANTOR SUBSIDIARIES			INTERFACE,  INC. (PARENT CORPORATION)			CONSOLIDATION AND ELIMINATION ENTRIES			CONSOLIDATED TOTALS
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,184		$	22,667		$	40,228		$	0		$	65,079
Accounts receivable		44,131			69,028			660			0			113,819
Inventories		71,301			86,218			0			0			157,519
Prepaids and deferred income taxes		6,093			50,216			14,610			0			70,919
Total current assets		123,709			228,129			55,498			0			407,336
Property and equipment less accumulated depreciation		77,972			92,817			3,150			0			173,939
Investment in subsidiaries		558,798			220,556			(151,552	)		(627,802	)		0
Goodwill		6,542			66,771			0			0			73,313
Other assets		1,275			9,057			107,287			0			117,619
	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	31,975		$	105,704		$	8,278		$	0		$	145,957
Senior notes		0			0			275,000			0			275,000
Deferred income taxes		0			9,861			(3,459	)		0			6,402
Other		4			1,581			44,775			0			46,360
Total liabilities		31,979			117,146			324,594			0			473,719
Redeemable preferred stock		0			0			0			0			0
Common stock		94,145			102,199			6,617			(196,344	)		6,617
Additional paid-in capital		249,302			12,525			368,383			(261,827	)		368,383
Retained earnings (deficit)		394,820			438,138			(674,730	)		(169,631	)		(11,403	)
AOCI—Foreign currency translation adjustment		(1,950	)		(23,005	)		(6,548	)		0			(31,503	)
AOCI—Pension liability		0			(29,673	)		(3,933	)		0			(33,606	)
	$	768,296		$	617,330		$	14,383		$	(627,802	)	$	772,207

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS

ENDED MARCH 31, 2013

	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	$	(5,666	)	$	(11,246	)	$	9,509		$	(1,594	)	$	(8,997	)
Cash flows from investing activities:
Purchase of plant and equipment		(5,624	)		(9,252	)		(7	)		0			(14,883	)
Other		9			(209	)		(285	)		0			(485	)
Net cash used for investing activities		(5,615	)		(9,461	)		(292	)		0			(15,368	)
Cash flows from financing activities:
Proceeds from issuance of common stock		0			0			868			0			868
Other		9,533			7,352			(18,479	)		1,594			0
Dividends paid		0			0			(1,654	)		0			(1,654	)
Net cash provided by (used for) financing activities		9,533			7,352			(19,265	)		1,594			(786	)
Effect of exchange rate change on cash		0			(303	)		0			0			(303	)
Net increase (decrease) in cash		(1,748	)		(13,658	)		(10,048	)		0			(25,454	)
Cash at beginning of period		3,932			36,325			50,276			0			90,533
Cash at end of period	$	2,184		$	22,667		$	40,228		$	0		$	65,079

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Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Defined Benefit Retirement Plan (Europe) [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 211	$ 116
Interest cost	2,390	2,544
Expected return on assets	(2,487)	(2,821)
Amortization of prior service cost	22	13
Recognized net actuarial (gains)/losses	243	229
Net periodic benefit cost	379	81
Salary Continuation Plan (SCP) [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	134	113
Interest cost	249	254
Amortization of prior service cost	12	12
Amortization of (gain)/loss	110	67
Net periodic benefit cost	$ 505	$ 446

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Inventories (Tables)

3 Months Ended

Mar. 31, 2013

Inventory Disclosure [Abstract]

Components of Inventories

Inventories are summarized as follows:

	March 31, 2013		December 30, 2012
	(In thousands)
Finished Goods	$	99,850	$	87,094
Work in Process		9,402		7,030
Raw Materials		48,267		47,052
	$	157,519	$	141,176