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 ☑ 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 ☑ 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):

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Shares outstanding of each of the registrant’s classes of common stock at ~~November 6, 2015:~~August 4, 2016:

The following tables present net income ~~(loss)~~ that was attributable to participating securities:

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

For all periods presented, there were no options or participating securities excluded from the ~~three-month period ended September 28, 2014, no stock options have been included in the calculation~~computation of diluted EPS as the Company was in a net loss position and inclusion of these stock options would have been anti-dilutive. For all other periods presented, all outstanding stock options have been included in the calculation of diluted EPSEPS.

As of ~~October 4, 2015,~~July 3, 2016, the unrecognized total compensation cost related to unvested restricted stock was ~~approximately $12.1~~$6.4 million. That cost is expected to be recognized by the end of 2019.

In 2016, the ~~nine~~Company issued awards of performance shares to certain employees. These awards vest based on the achievement of certain performance-based goals over a performance period of one to three years, subject to the employee’s continued employment through the last date of the performance period, and will be settled in shares of our common stock or in cash at the Company’s election. The number of shares that may be issued in settlement of the performance shares to the award recipients may be greater (up to 200%) or lesser than the nominal award amount depending on actual performance achieved as compared to the performance targets set forth in the awards.

The following table summarizes the performance shares outstanding as of July 3, 2016, as well as the activity during the six months then ended:

The weighted average grant date fair value of the performance shares awarded in the first six month of 2016 was $17.23 per share. Compensation expense related to the performance shares for the six months ended ~~October 4, 2015, and September 28, 2014, the Company recognized tax benefits with regard~~July 3, 2016 was $0.6 million. Unrecognized compensation expense related to ~~restricted stock~~these performance shares was approximately $6.9 million as of ~~$4.0 million and $0.6 million, respectively.~~July 3, 2016. No performance shares were granted or outstanding during 2015.

NOTE 7 – SEGMENT INFORMATION

Based on applicable accounting standards, the Company has determined that it has three operating segments – namely, the Americas, Europe and Asia-Pacific geographic regions. Pursuant to accounting standards, the Company has aggregated the three operating segments into one reporting segment because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment.

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~~NOTE 8 – 2014 RESTRUCTURING CHARGE~~While the Company operates as one reporting segment for the reasons discussed, included below is selected information on our operating segments.

In the third quarter of 2014, the Company committed to a restructuring plan in its continuing efforts to reduce costs across its worldwide operations. In connection with this restructuring plan, the Company incurred a pre-tax restructuring and asset impairment charge in the third quarter of 2014 in an amount of $12.4 million. The charge was comprised of severance expenses of $9.7 million for a reduction of 100 employees, other related exit costs of $0.1 million, and a charge for impairment of assets of $2.6 million. Approximately $10 million of the charge will result in cash expenditures, primarily severance expense.

	AMERICAS		EUROPE		ASIA- PACIFIC		TOTAL
	(in thousands)
Three Months Ended July 3, 2016:

Net Sales	$	148,761	$	61,264	$	38,182	$	248,207
Depreciation and amortization		3,611		1,297		2,169		7,077
Total assets		244,313		256,381		187,705		688,399

Three Months Ended July 5, 2015:

Net Sales	$	158,243	$	66,273	$	39,121	$	263,637
Depreciation and amortization		3,879		1,231		2,297		7,407

Six Months Ended July 3, 2016:

Net Sales	$	279,177	$	119,222	$	72,362	$	470,761
Depreciation and amortization		7,268		2,571		4,385		14,224

Six Months Ended July 5, 2015:

Net Sales	$	297,590	$	130,780	$	72,171	$	500,541
Depreciation and amortization		7,820		2,436		4,662		14,918

A ~~summary~~reconciliation of ~~these restructuring activities is presented below:~~the Company’s total operating segment depreciation and amortization, and assets to the corresponding consolidated amounts follows:

Total
Restructuring
Charge

Costs Incurred
in 2014

Costs Incurred
in 2015

Balance at
Oct. 4, 2015

(In thousands)

Workforce Reduction
$ 9,669 $ 2,732 $ 6,307 $ 630
Fixed Asset Impairment
2,584 2,584 0 0
Other Related Exit Costs
133 133 0 0

	Three Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)
Total segment depreciation and amortization	$	7,077	$	7,407
Corporate depreciation and amortization		366		343

Reported depreciation and amortization	$	7,443	$	7,750

	Six Months Ended
DEPRECIATION AND AMORTIZATION	July 3, 2016		July 5, 2015
	(In thousands)

Total segment depreciation and amortization	$	14,224	$	14,918
Corporate depreciation and amortization		736		621

Reported depreciation and amortization	$	14,960	$	15,539

ASSETS	July 3, 2016
	(In thousands)
Total segment assets	$	688,399
Corporate assets and eliminations		76,720

Reported total assets	$	765,119

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NOTE 98 – SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest amounted to ~~$4.8~~$2.5 million and ~~$10.6~~$3.3 million for the ~~nine~~six months ended ~~October 4,~~July 3, 2016 and July 5, 2015, ~~and September 28, 2014,~~ respectively. Income tax payments amounted to ~~$5.9~~$7.3 million and ~~$5.8~~$3.5 million for the ~~nine~~six months ended ~~October 4,~~July 3, 2016 and July 5, 2015, ~~and September 28, 2014,~~ respectively.

NOTE 109 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard regarding recognition of revenue from contracts with customers. In summary, the core principle of this standard is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance for this standard was initially effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in August of 2015, the FASB delayed the effective date of the standard for one full year. While ~~we are~~the Company is currently reviewing this new standard, ~~we do~~it does not believe that the adoption of this standard will have a material impact on ~~our~~its financial condition or results of operations.

In January 2015, the FASB issued an accounting standard which eliminates the concept of extraordinary items from generally accepted accounting principles. The standard does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The standard is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ~~standard allows prospective or retrospective application. Early adoption is permitted if applied from the beginning of the fiscal year of adoption. We do not believe the~~ adoption of this standard ~~will~~did not have any ~~significant effect~~impact on our ~~ongoing~~ financial ~~reporting.~~ condition or results of operations.

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In February 2015, the FASB issued an accounting standard which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The new accounting standard is effective for annual and interim periods in fiscal years beginning after December 15, 2015. ~~We are currently evaluating the impact, if any, this standard will have on our ongoing financial reporting, but we do not believe the~~The adoption of this standard ~~will~~did not have any ~~significant effect~~impact on our ~~ongoing~~ financial ~~reporting.~~condition or results of operations.

In April 2015, the FASB issued an accounting standard to simplify the presentation of debt issuance costs. This accounting standard requires debt issuance costs to be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. In August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements as an asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The guidance in these accounting standards is to be applied retrospectively and is effective for interim and annual reporting periods beginning after December 15, 2015. ~~As these standards~~The Company’s debt issuance costs relate to ~~presentation only, we do not believe~~its Syndicated Credit Facility and, as a result, these costs have been, and will continue to be, included as an asset on the balance sheet. Thus, the adoption of ~~these accounting standards will~~this standard did not have ~~a material~~any impact on our financial statements.

In July 2015, the FASB issued an accounting standard to simplify the accounting for inventory. This standard requires all inventories to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this new standard and does not expect it to have a significant impact on its consolidated financial statements.

In November 2015, the FASB issued an accounting standard which requires deferred tax assets and liabilities, as well as any related valuation allowance, to be classified as noncurrent on the balance sheet. As a result, each jurisdiction will only have one net noncurrent deferred tax asset or liability. This standard does not change the existing requirement that only permits offsetting within a jurisdiction. The amendments in the standard may be applied either prospectively or retrospectively to all prior periods presented. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. As this standard impacts only presentation, the Company does not expect it to have any significant effect on its ongoing financial reporting.

In February 2016, the FASB issued a new accounting standard regarding leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of adoption of the new standard on our consolidated financial statements

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NOTE 1110 – ~~INCOMETAXES~~INCOMETAXES

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 ~~nine~~six months of ~~2015,~~2016, the Company decreased its liability for unrecognized tax benefits by ~~$0.1~~$0.2 million. As of ~~October 4, 2015,~~July 3, 2016, the Company had accrued approximately ~~$27.3~~$28.1 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of ~~October 4, 2015~~July 3, 2016 reflects a reduction for ~~$21.9~~$14.2 million of these unrecognized tax benefits.

NOTE 1211 – ITEMS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME

During the first ~~nine~~six months of ~~2015,~~2016, 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 ~~$1.1~~$0.8 million related to the Company’s defined retirement benefit ~~retirement~~ 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 1312 – REPURCHASE OF COMMON STOCK

In the fourth quarter of 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. In the second quarter of 2016, the Company amended the share purchase program to authorize the repurchase of up to $50 million of common stock. This amended program has no specific expiration date. During the first ~~quarter~~six months of ~~2015,~~2016, the Company repurchased and retired ~~250,000~~662,500 shares of common stock at a weighted average purchase price of ~~$19.39~~$15.73 per share. During the second quarter of 2015, the Company repurchased and retired 250,000 shares of common stock at a weighted average purchase price of $22.41 per share. There were no repurchases in the third quarter of 2015.

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ITEM2. 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 28, 2014,~~January 3, 2016, under Item 7 of that Form 10-K. Our discussions here focus on our results during the quarter and ~~nine~~six months ended, or as of, ~~October 4, 2015,~~July 3, 2016, and the comparable periods of ~~2014~~2015 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 28, 2014,~~January 3, 2016, 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.

General

During the quarter ended ~~October 4, 2015,~~July 3, 2016, we had net sales of ~~$254.7~~$248.2 million, compared with net sales of ~~$252.2~~$263.6 million in the ~~third~~second quarter last year. During the first ~~nine~~six months of fiscal year ~~2015,~~2016, we had net sales of ~~$755.2~~$470.8 million, compared with net sales of ~~$731.8~~$500.5 million in the first ~~nine~~six months of last year. Fluctuations in currency exchange rates had small negative impacts on our sales and operating income in the ~~2015~~2016 reported periods, compared with the prior year periods. The following table presents the amounts (in U.S. dollars) by which the exchange rates for converting foreign currencies into U.S. dollars have negatively affected our net sales and operating income for the three months and ~~nine~~six months ended ~~October 4, 2015.~~July 3, 2016.

Three Months Ended October 4, 2015

Nine Months Ended
October 4, 2015

(In millions)

Net sales
$ (21.9 ) $ (64.1 )
Operating income
(2.0 ) (6.9 )

In the third quarter of 2014, we committed to a restructuring plan in our continuing efforts to reduce costs across our worldwide operations. In connection with this restructuring plan, we incurred a pre-tax restructuring and asset impairment charge in the third quarter of 2014 in an amount of $12.4 million. The charge was comprised of severance expenses of $9.7 million for a reduction of 100 employees, other related exit costs of $0.1 million, and impairment of assets of $2.6 million. Approximately $10 million of the charge will result in cash expenditures, primarily severance expense.

Impact ofChanges inForeignCurrency on:	Three Months Ended July 3, 2016			Six Months Ended July 3, 2016
	(In millions)
Net sales	$	(0.5	)	$	(4.3	)
Operating income		0.0			(0.3	)

During the ~~third~~second quarter of ~~2015,~~2016, we had net income of ~~$20.1~~$20.7 million, or ~~$0.31~~$0.32 per ~~share.~~diluted share, compared with net income of $21.7 million, or $0.33 per diluted share, in the second quarter of 2015. During the ~~third quarter of 2014, including the restructuring and asset impairment charge discussed above, we had a net loss of $0.4 million, or $0.01 per share. During the nine~~six months ended ~~October 4, 2015,~~July 3, 2016, we had net income of ~~$54.2~~$33.6 million, or ~~$0.82~~$0.51 per ~~share. During the nine months ended September 28, 2014, including the restructuring and asset impairment charge discussed above, we had~~diluted share, compared with net income of ~~$16.7~~$34.0 million, or ~~$0.25~~$0.51 per ~~share.~~diluted share, in the first six months of 2015.

The first ~~nine~~six months of 2016 were comprised of 26 weeks, while the first six months of 2015 were comprised of ~~40 weeks, while the first nine months of 2014 were comprised of 39~~27 weeks. (The additional week was in the first quarter of 2015.) This is a factor in certain of the comparisons discussed in this Item 2.

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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 and ~~nine-month~~six-month periods ended ~~October 4,~~July 3, 2016, and July 5, 2015, ~~and September 28, 2014,~~ respectively:

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	Oct. 4, 2015			Sept. 28, 2014			Oct. 4, 2015			Sept. 28, 2014			July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015

Net sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		61.5			66.9			62.3			66.0			60.1			61.6			60.5			62.7
Gross profit on sales		38.5			33.1			37.7			34.0			39.9			38.4			39.5			37.3
Selling, general and administrative expenses		26.2			25.4			26.3			26.3			27.1			25.8			28.2			26.4
Restructuring and asset impairment charge		0.0			4.9			0.0			1.7
Operating income		12.3			2.9			11.4			6.0			12.8			12.6			11.2			10.9
Interest/Other expenses		0.8			2.6			0.9			2.4			0.6			0.5			0.8			0.9
Income before tax expense		11.5			0.3			10.5			3.6			12.2			12.1			10.5			10.0
Income tax expense		3.6			0.4			3.3			1.3			3.9			3.9			3.4			3.2
Net income (loss)		7.9			(0.1	)		7.2			2.3
Net income														8.3			8.2			7.1			6.8

Net Sales

Below we provide information regarding net sales and analyze those results for the three-month and ~~nine-month~~six-month periods ended ~~October 4,~~July 3, 2016, and July 5, 2015, ~~and September 28, 2014,~~ respectively.

Three Months Ended

Percentage

Oct. 4, 2015

Sept. 28, 2014

Change

(In thousands)

Net Sales
$ 254,686 $ 252,191 1.0 %

	Three Months Ended				Percentage
	July 3, 2016		July 5, 2015		Change
	(In thousands)
Net Sales	$	248,207	$	263,637		(5.9	%)

Nine Months Ended

Percentage

Oct. 4, 2015

Sept. 28, 2014

Change

(In thousands)
Net Sales
$ 755,227 $ 731,807 3.2 %

	Six Months Ended				Percentage
	July 3, 2016		July 5, 2015		Change
	(In thousands)
Net Sales	$	470,761	$	500,541		(5.9	%)

For the quarter ended ~~October 4, 2015,~~July 3, 2016, net sales ~~increased $2.5~~decreased $15.4 million ~~(1.0%~~(5.9%) versus the comparable period in ~~2014. As discussed above,~~2015. Currency fluctuations did not have a significant impact on the comparison, as a strengthening of the Euro versus the U.S. dollar ~~versus certain foreign currencies (primarily,~~was offset by the ~~Euro,~~weakening of the Australian dollar ~~and Canadian dollar) had a negative impact of approximately $22 million on 2015 third quarter sales as compared with~~versus the ~~third quarter of 2014.~~U.S. dollar. On a geographic basis, we ~~increased sales 4% in the Americas, and~~ experienced flat sales in Europe (as reported in U.S. dollars) and a decline of 9% (as reported in U.S. dollars) in Asia-Pacific due to negative currency impacts. In the Americas, our sales increase was primarily in the corporate office segment (up 10%), as our growth continued to outpace the market, alongside the benefits of our enhanced presence in the hospitality segment (up 21%). These increases were partially offset by sales declines in the ~~education~~Americas (down 7%6%), Europe (down 8% as reported in U.S. dollars and 9% in local currency) and Asia-Pacific (down 2%). In the Americas, the decline was largely attributable to our InterfaceServices business, where its largest retail customer delayed many projects until the second half of 2016, alongside deferred purchases by customers in the weakened oil and gas sector. With the exception of the hospitality (up 27%) and ~~government (down 8%~~healthcare (up 15%) ~~segments. Our FLOR residential consumer business~~segments, all other market segments in the Americas region experienced ~~a 3% sales increase for the quarter, due primarily to stronger web-based sales. In Europe, the impact of the strengthening U.S. dollar was substantial, as~~declining sales in ~~local currency were up 20% versus~~ the ~~third~~second quarter last year. The increase in local currency was driven by both the corporate office segment (up 20%) and non-office segments (up 19% in the aggregate), with the education (up 36%), retail (up 36%), and government (up 9%) segments leading the non-office increases. Small declines in local currency in the hospitality (down 11%) and residential (down 23%) segments mitigated the overall increase in Europe for the quarter. In Asia-Pacific, sales in local currency were up 5% for the third quarterof 2016 compared with the prior year ~~period, with strong gains~~period. In Europe, the decline was largely due to customer uncertainty and hesitation leading up to the June 23, 2016 Brexit referendum vote. The decline in ~~Australia (up 20%~~Europe occurred in the corporate office (down 9%) and education (down 46%) market segments, partially offset by ~~declines~~increases in ~~China~~all other market segments with the retail segment (up 34%) being the most significant. In Asia-Pacific, the decline was largely a function of softer sales performance in Australia (down 9% as reported in U.S. dollars and ~~India. The sales increase~~5% in local ~~currency~~currency) due primarily to large project shipments in ~~Australia came across both~~June 2015 that did not reoccur this year. The remainder of the Asia-Pacific region experienced an increase of 5%, with India and China having the most significant growth. Within the Asia-Pacific division, sales in the corporate office market segment were up 6%, but this was more than offset by a 25% decline in non-office segments, with education (down 39%) and ~~non-corporate office market segments.~~hospitality (down 63%) representing the largest areas of decline.

For the ~~nine~~six months ended ~~October 4, 2015,~~July 3, 2016, net sales ~~increased $23.4~~decreased $29.8 million ~~(3.2%~~(5.9%) versus the comparable period in ~~2014. The strengthening of the U.S. dollar versus certain foreign currencies~~2015. Currency fluctuations had a negative impact on the comparison of approximately ~~$64~~$4.3 million, ~~on sales in the first nine months of 2015 versus the comparable prior year period.~~or just under 1%. On a geographic basis, we ~~increased sales 9%~~experienced a decline of 6% in the Americas ~~partially offset by declines of 5%~~and 9% in Europe ~~(as~~(in both U.S. dollars and local currency), while our sales in Asia-Pacific were up less than 1% in the first six months of 2016 compared with the same period last year. The decline in the Americas region was, again, largely a result of delayed projects at our InterfaceServices business until the second half of 2016, along with softer sales to oil and gas customers. With the exception of the hospitality (up 13%) and healthcare (up 7%) market segments, all other market segments in the Americas had lower sales compared with the first six months of 2015. In Europe, the uncertainty and hesitation surrounding the Brexit vote as well as other political and economic issues led to lower sales, particularly in the corporate office (down 10%) and education (down 38%) market segments. Small increases in the retail (up 32%) and hospitality (up 23%) market segments slightly mitigated the decline. In Asia-Pacific, an increase of 8% in Asia was nullified by a decline in Australia of 6% as reported in U.S. ~~dollars) and 2%~~dollars. In local currency, however, sales in ~~Asia-Pacific (as reported in U.S. dollars) due to currency impacts. The sales increase~~Australia were even in the ~~Americas was primarily~~first six months of 2016 compared with the same period in 2015. On a market segment basis within the Asia-Pacific region, an increase in the corporate office segment ~~(up 11%) alongside strong improvements in the hospitality (up 53%) and education (up 5%) segments. The increase in education sales in the Americas occurred during~~of 8% for the first six months of ~~2015, as we experienced a third quarter decline~~2016 was offset almost entirely by declines in the segment year-over-year. In Europe, sales in local currency increased 16%, primarily driven by the corporate office segment (up 21%). Local currency sales in non-corporate office segments in the aggregate were essentially flat, with a 35% increase in the education segment being offset by a 26% decrease in the government segment – although we did experience an increase in the government segment in the 2015 third quarter, perhaps suggesting that the negative impacts of government austerity programs in the region are being reduced. In Asia-Pacific, the sales decrease in U.S. dollars was experienced across non-office market segments, with the retail (down ~~46%~~54%), ~~healthcare~~education (down ~~32%~~27%) and ~~government~~hospitality (down ~~28%~~49%) segments having the largest percentage declines, tempered by a 4% increase in the corporate office segment. Negative currency impacts in the Asia-Pacific region also were substantial, as sales in local currency were up 9% versus the first nine months last year. The greatest currency impact was in Australia, where sales in local currency were up 21%, but in U.S. dollars were up less than 1%.segments.

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Cost and Expenses

The following ~~tables present,~~table presents, on a consolidated basis for our operations, our overall cost of sales and selling, general and administrative expenses for the three-month and ~~nine-month~~six-month periods ended ~~October 4,~~July 3, 2016, and July 5, 2015, ~~and September 28, 2014,~~ respectively:

	Three Months Ended				Percentage			Three Months Ended				Percentage
Cost and Expenses	Oct. 4, 2015		Sept. 28, 2014		Change			July 3, 2016		July 5, 2015		Change
	(In thousands)							(In thousands)
Cost of sales	$	156,720	$	168,596		(7.0	)%	$	149,081	$	162,385		(8.2%	)
Selling, general and administrative expenses		66,664		63,958		4.2	%		67,328		68,033		(1.0%	)
Total	$	223,384	$	232,554		(3.9	)%	$	216,409	$	230,418		(6.1%	)

	Nine Months Ended				Percentage			Six Months Ended				Percentage
Cost and Expenses	Oct. 4, 2015		Sept. 28, 2014		Change			July 3, 2016		July 5, 2015		Change
	(In thousands)							(In thousands)
Cost of sales	$	470,577	$	483,141		(2.6	)%	$	285,003	$	313,857		(9.2%	)
Selling, general and administrative expenses		198,729		192,659		3.2	%		132,933		132,065		0.7	%
Total	$	669,306	$	675,800		(1.0	)%	$	417,936	$	445,922		(6.3%	)

For the three months ended ~~October 4, 2015,~~July 3, 2016, our cost of sales decreased ~~$11.9~~$13.3 million ~~(7.0%~~(8.2%) versus the comparable period in ~~2014. Fluctuations in currency exchange rates had a favorable impact of approximately $8 million on our cost of sales for the quarter compared with the prior year period.~~2015. As a percentage of sales, our costs of sales decreased to 60.1% for the second quarter of 2016 versus 61.6% for the second quarter of 2015. This improvement in gross profit ~~expanded~~margin occurred across all three of our ~~operating~~geographic regions, with ~~Americas~~Asia-Pacific showing the ~~most improvement.~~largest percentage increase, followed by Europe and the Americas. The ~~reduction~~key factors in the gross margin improvement were (1) lower raw materials input costs (for the second quarter of 2016, our per-unit input costs are 3-5% lower on average than the comparable period in 2015 due to lower prices on petroleum-based raw materials), (2) a shift in product mix towards margin accretive products such as our skinny plank designs, and (3) better material usage and improved production efficiencies as we continue to implement and refine our lean manufacturing practices. These factors drove the decrease in cost of sales ~~was primarily~~as percentage of sales, despite a ~~function~~7% decline in production volume in the second quarter of ~~(1) lower raw materials costs (down approximately 6-8%) and usage~~2016 compared with the ~~third quarter of 2014, (2) higher production costs in the third~~second quarter last year due to disruptions in yarn supply that were not experienced in the current period, (3) a higher degree of manufacturing complexity related to new product introductions in the third quarter of 2014 that led to higher manufacturing costs at that time (and have since been rectified), (4) the benefits of our restructuring initiatives taken during the third quarter of 2014, and (5) increased absorption of fixed manufacturing costs due to higher production volumes in the current period. As a result of these factors, as a percentage of net sales, cost of sales decreased to 61.5% for the three months ended October 4, 2015, compared with 66.9% in the third quarter of 2014.year.

For the ~~nine~~six months ended ~~October 4, 2015,~~July 3, 2016, our cost of sales decreased ~~$12.6~~$28.9 million ~~(2.6%~~(9.2%) versus the comparable period in ~~2014. Fluctuations in currency exchange rates~~2015. Currency fluctuations had a favorable impact of ~~approximately $30 million~~less than 1% on the comparison; if currency rates had remained the same year over year, our cost of sales ~~for~~would have been approximately $3.0 million higher versus the first ~~nine~~six months of ~~2015 versus the prior year period.~~2015. As a percentage of sales, our cost of sales ~~decreased~~declined to ~~62.3%~~60.5% for the ~~nine~~first six months ~~ended October 4, 2015 compared with 66.0%~~of 2016, versus 62.7% for the ~~comparable~~same period last year. The improvement as a percentage of ~~2014. The primary reasons for this decline were~~sales took place across all of our geographic regions, with Asia-Pacific having the largest increase followed by Europe and the Americas. Our decrease in cost of sales in absolute dollars was due to the following factors: (1) lower raw materials costs, ~~and usage (down approximately 6-8%)~~as our per-unit input costs were down 4-6% during the first six months of 2016 compared with the ~~first nine months~~prior year period, primarily as a result of ~~2014,~~lower petroleum-based and related feedstock costs; (2) ~~continued stabilization of our supply chain~~better material usage and improved production efficiencies as we continue to implement and refine lean manufacturing ~~footprint in the Asia-Pacific region following the January 2014 start-up of our new carpet tile plant in Australia,~~practices; (3) ~~increased absorption of fixed manufacturing costs associated with~~ higher ~~production volumes, especially~~average selling prices in the Americas region; and ~~Europe regions,~~ (4) introduction of margin accretive products such as additional skinny plank designs. These factors led to decreased cost of sales as a percentage of sales, notwithstanding a 9% decline in production volume for the ~~cost savings associated~~first six months of 2016 compared with ~~our 2014 restructuring actions, and (5)~~ the ~~resolution of yarn supply and production issues during the fourth quarter of 2014 and early 2015 that were particularly acute in the third quarter of 2014.~~prior year period.

For the three months ended ~~October 4, 2015,~~July 3, 2016, our selling, general and administrative (“SG&A”) expenses ~~increased $2.7~~decreased $0.7 million ~~(4.2%~~(1.0%) versus the comparable period in ~~2014. Currency fluctuation had~~2015. The decline in SG&A expenses was primarily due to savings of approximately $3.0 million in administrative costs, primarily as a ~~favorable impact on selling, general and administrative expenses; if currency rates had remained the same for the third quarter~~result of 2015 versus that of the third quarter of 2014, our selling, general and administrative expenses would have been approximately $8.5 million higher than the third quarter last year. The majority of this currency neutral increase is additionallower performance-based incentive compensation ~~(approximately $5.0 million) and performance based share-based compensation ($1.5 million) because our projected performance is better in 2015 versus 2014. The largest component~~this year. This decrease was somewhat mitigated by (1) $0.9 million of ~~the remainder ($1.0 million) is~~ higher selling expenses, ~~due to the improved~~primarily associated with new sales ~~levels~~staff additions in the ~~third quarter~~Americas division to continue targeting growth markets, and (2) $1.5 million of ~~2015 versus~~higher marketing expenses for planned initiatives to promote growth, including global branding, market development and new product introductions. The marketing expenses were higher globally, with the ~~prior year period, particularly~~Americas region having the largest increase ($0.8 million) and Europe and Asia-Pacific each responsible for approximately $0.3 million of the increase. Despite the lower SG&A expenses in absolute dollars, the ~~Americas. As a result,~~decline in net sales led to an increase in SG&A expenses as a percentage of sales ~~our selling, general and administrative expenses increased~~ to ~~26.2%~~27.1% for the three months ended July 3, 2016, compared with 25.8% in the ~~third~~comparable period of 2015. Our SG&A expenses as a percentage of sales are down sequentially, however, as compared to 29.5% in the first quarter of ~~2015, versus 25.4% in the third quarter of 2014.~~2016.

~~-15-~~-16-

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For the ~~nine~~six months ended ~~October 4, 2015,~~July 3, 2016, our ~~selling, general and administrative~~SG&A expenses increased ~~$6.1~~$0.9 million ~~(3.2%~~(0.7%) versus the comparable period in ~~2014. Currency fluctuation~~2015. Fluctuations in currency exchange rates had a ~~favorable~~slight (less than 1%) negative impact on ~~selling, general and administrative expenses; if currency rates had remained~~ the ~~same~~comparison. As noted above, our SG&A expenses during the second quarter of 2016 declined as compared to the second quarter of 2015, so the overall increase for the ~~first nine months of 2015 versus that of~~current year six-month period related entirely to the first ~~nine months~~quarter of ~~2014,~~2016. The increase was due to $4.3 million of increased marketing expenses as we continue to roll out global marketing, branding and product introduction platforms. Marketing expenses were up across all regions, with the Americas (up $2.1 million) followed by Europe (up $1.2 million) and Asia-Pacific (up $1.0 million). We also had an increase of $1.4 million in selling expenses, almost entirely within the Americas region, for personnel additions in key markets. These increases were offset by lower administrative costs of $4.8 million, primarily as a result of lower performance-based incentive compensation this year. Due to the overall increase in SG&A expenses, as well as a decline in sales, our ~~selling, general and administrative~~SG&A expenses ~~would have been approximately $20 million higher than~~as a percentage of sales increased to 28.2% for the ~~first nine months last year. As in the three~~six months ended ~~October 4, 2015, substantially all of this increase can be attributed~~July 3, 2016, as compared to higher incentive compensation (approximately $10 million) and performance based share-based compensation (approximately $8 million), as our projected performance is better in 2015 versus 2014. The primary factor mitigating the increase was the impact of the changes in foreign currency discussed above, as other spending categories within selling, general and administrative expenses remained relatively consistent in local currencies (due partially to cost control measures from our 2014 restructuring actions), despite the increased sales26.4% for the ~~year to date period of 2015 versus 2014. As a result, selling, general, and administrative expenses remained consistent at 26.3% of net sales for both the first nine~~six months ~~of 2015 and 2014.~~ended July 5, 2015.

Interest Expense

For the three month period ended ~~October 4, 2015,~~July 3, 2016, our interest expense decreased ~~$4.3~~$0.2 million to ~~$1.3~~$1.6 million, from ~~$5.6~~$1.8 million in the ~~third~~second quarter of ~~2014.~~2015. For the ~~nine~~six month period ended ~~October 4, 2015,~~July 3, 2016, our interest expense decreased ~~$11.5~~$0.6 million to ~~$5.0~~$3.1 million, from ~~$16.5~~$3.7 million in the comparable period last year. The ~~reason for the~~ decreases ~~was the debt refinancing activities we completed in the fourth quarter of 2014, in which we redeemed all of our $247.5 million of~~were due to lower daily average outstanding ~~7.625% Senior Notes and replaced them with~~ borrowings under our Syndicated Credit ~~Facility. This facility is comprised~~Facility during the second quarter and first six months of ~~a term loan~~2016 as ~~well as a multi-currency revolving debt facility and incurs interest at a significantly lower rate than~~compared to the ~~7.625% Senior Notes.~~corresponding periods of 2015.

Liquidity and Capital Resources

General

At ~~October 4, 2015,~~July 3, 2016, we had ~~$73.7~~$88.4 million in ~~cash.~~cash and cash equivalents. At that date, we had ~~outstanding $200.0~~$192.5 million ofin term loan borrowings, ~~$32.5~~$31.8 million of revolving loan borrowings and ~~$3.1~~$4.0 million in letters of credit outstanding under ~~our~~the Syndicated Credit Facility. As of ~~October 4, 2015,~~July 3, 2016, we could have incurred ~~$214.4~~$214.2 million of additional borrowings under our Syndicated Credit ~~Facility. In~~Facility.In addition, we could have incurred an additional ~~$14.5~~$14.7 million of borrowings under our other lines of credit in place at other non-U.S. subsidiaries.

It is also important for you to consider that borrowings under our Syndicated Credit Facility comprise essentially all of our indebtedness, and that these borrowings are based on variable interest rates (as described above) that expose the Company to the risk that short-term interest rates may increase. For information regarding the current variable interest rates of these borrowings and the potential impact on our interest expense from hypothetical increases in short term interest rates, please see Note 4 in Part I, Item 1 of this report and the discussion under the heading “Interest Rate Risk” in Item 7A of our Annual Report on Form 10-K for the year ended January 3, 2016.

Analysis of Cash Flows

~~We exited the quarter ended October 4, 2015 with $73.7 million in~~Apart from cash ~~an increase~~provided by operating activities, our primary source of ~~$18.8 million~~cash during the ~~first nine~~six months ended July 3, 2016 was $20.2 million of revolving loan borrowings under our Syndicated Credit Facility. Most of the ~~year. The increase~~revolving loan borrowings were made by our Australian subsidiary in ~~cash was due~~Australian dollars and then converted into U.S. dollars, to ~~improved cash flow from operating activities~~take advantage of ~~$92.7 million~~a strong Australian dollar and lock in the first nine months of 2015, versus $34.9 million in the first nine months of 2014. The factors driving the increase in cash from operating activities were (1) higher net income in 2015, due to better operational performance, (2) a ~~$5.8 million reduction in cash paid~~favorable exchange rate into U.S. dollars, which are used by that business for interest, as a result of our 2014 debt refinancing discussed above, and (3) $17.8 million due to a decrease in accounts receivable. The increase in cash from operating activities was partially offset by a use of $28.7 million for an increase in inventory levels.certain raw material purchases. Our ~~other~~ primary uses of cash during the ~~first nine months of 2015~~period were (1) ~~$28.0~~$20.4 million for a reduction of ~~cash used to repay~~accounts payable and accrued expenses, (2) $12.8 million for capital expenditures, (3) $10.4 million for stock repurchases, and (4) $10.0 million for repayments of borrowings under our Syndicated Credit Facility, (2) $23.7 million of capital expenditures, (3) $10.5 million of cash used to repurchase and retire 500,000 shares of our outstanding common stock, and (4) $8.6 million for the payment of dividends.Facility.

~~-16-~~

~~Table Of Contents~~

ITEM3. 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 28, 2014,~~January 3, 2016 under Item 7A of that Form 10-K. Our discussion here focuses on the period ended ~~October 4, 2015,~~July 3, 2016, 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 ~~October 4, 2015,~~July 3, 2016, we recognized a ~~$28.6~~$1.1 million ~~decrease~~increase in our foreign currency translation adjustment account compared to ~~December 28, 2014,~~January 3, 2016, primarily because of the ~~strengthening~~weakening of the U.S. dollar against certain foreign currencies, particularly the Euro and Australian dollar.

-17-

Table Of Contents

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.

Because the debt outstanding under our Syndicated Credit Facility has variable interest rates based on an underlying prime lending rate or LIBOR rate, we do not believe changes in interest rates would have any significant impact on the fair value of that debt instrument. Changes in the underlying prime lending rate or LIBOR rate would, however, impact the amount of our interest expense. For a discussion of these hypothetical impacts on our interest expense, please see the discussion in Item 7A of our Annual Report on Form 10-K for the year ended ~~December 28, 2014.~~January 3, 2016.

As of ~~October 4, 2015,~~July 3, 2016, 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 ~~$11.1~~$11.7 million or an increase in the fair value of our financial instruments of ~~$9.0~~$14.3 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.

ITEM4. 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~~Chairman 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~~Chairman 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.

~~-17-~~-18-

Table Of Contents

~~PART II~~PARTII - OTHER INFORMATION

ITEM1. 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.

ITEM1A. RISK FACTORS

There are no material changes in risk factors in the ~~third~~second quarter of ~~2015.~~2016. For a discussion of risk factors, see Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended ~~December 28, 2014.~~January 3, 2016.

ITEM2. 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 the quarter ended July 3, 2016:

Period⁽¹⁾

Total
Number
of Shares
Purchased

Average
Price
Paid
Per Share

Total Number
of Shares Purchased
as Part of Publicly
Announced Plans or
Programs⁽²⁾

Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under the
Plans orPrograms⁽²⁾

April 4-30, 2016
0 N/A 0 $ 50,000,000
May 1-31, 2016⁽³⁾
329,110 $ 16.30 328,833 44,639,862
June 1-30, 2016
329,353 $ 15.15 329,353 39,651,157
July 1-3, 2016
0 N/A 0 39,651,157
Total
658,463 $ 15.72 658,186 $ 39,651,157
⁽¹⁾The monthly periods identified above correspond to the Company’s fiscal second quarter of 2016, which commenced April 4, 2016 and ended July 3, 2016.
⁽²⁾ In the fourth quarter of 2014, the Company announced a program to repurchase up to 500,000 shares of common stock per fiscal year, commencing with the 2014 fiscal year. In April 2016, the Company amended the share purchase program to authorize the repurchase of up to $50 million of common stock. This amended program has no specific expiration date.
⁽³⁾ Includes 277 shares acquired by the Company from employees to satisfy income tax withholding obligations in connection with the vesting of previous grants of restricted stock.
ITEM3. DEFAULTS UPON SENIOR SECURITIES

None

~~ITEM 3. DEFAULTS UPON SENIOR SECURITIES~~
~~None~~
ITEM4. MINE SAFETY DISCLOSURES

Not applicable

ITEM5. OTHER INFORMATION

None

-19-
Table Of Contents
ITEM6. EXHIBITS

The following exhibits are filed with this report:

EXHIBIT
NUMBER
DESCRIPTION OF EXHIBIT
~~3.1~~
Bylaws, as amended and restated October 28, 2015 (included as Exhibit 3.1 to the Company’s current report on Form 8-K filed on October 28, 2015, previously filed with the Commission and incorporated herein by reference).
~~10.1~~
Interface, Inc. Executive Bonus Plan, as amended October 28, 2015 (included as Exhibit 99.2 to the Company’s current report on Form 8-K filed on October 28, 2015, previously filed with the Commission and incorporated herein by reference).
~~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.~~
~~101.SCH~~
~~XBRL Taxonomy Extension Schema Document.~~
~~101.CAL~~
~~XBRL Taxonomy Extension Calculation Linkbase Document.~~
~~101.LAB~~
~~XBRL Taxonomy Extension Label Linkbase Document.~~
~~101.PRE~~
~~XBRL Taxonomy Presentation Linkbase Document.~~
~~101.DEF~~
~~XBRL Taxonomy Definition Linkbase Document.~~
~~-18-~~
~~Table Of Contents~~
~~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: November 12, 2015~~
~~By:~~
~~/s/ Patrick C. Lynch~~
~~Patrick C. Lynch~~
~~Senior Vice President~~
~~(Principal Financial Officer)~~
~~-19-~~
~~Table Of Contents~~
~~EXHIBITS INCLUDED HEREWTIH~~
~~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.~~Document
101.SCH
XBRL Taxonomy Extension Schema ~~Document.~~Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase ~~Document.~~Document
101.LAB
XBRL Taxonomy Extension Label Linkbase ~~Document.~~Document
101.PRE
XBRL Taxonomy Presentation Linkbase ~~Document.~~Document
101.DEF
XBRL Taxonomy Definition Linkbase ~~Document.~~Document
-20-
Table Of Contents
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: August 11, 2016
By:
/s/ Patrick C. Lynch
Patrick C. Lynch
Senior Vice President
(Principal Financial Officer)
-21-
Table Of Contents
EXHIBITS INCLUDED HEREWITH
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
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
XBRL Taxonomy Presentation Linkbase Document
101.DEF
XBRL Taxonomy Definition Linkbase Document

~~-20-~~-22-

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

Class		Number of Shares
Common Stock, $.10 par value per share		~~65,850,558~~64,807,371

			PAGE
PART I.	FINANCIAL INFORMATION

	Item 1.	Financial Statements	3

		Consolidated Condensed Balance Sheets – ~~October 4, 2015 and December 28, 2014~~July 3, 2016 andJanuary 3, 2016	3

		Consolidated Condensed Statements of Operations – Three Months and ~~Nine~~Six Months Ended ~~October 4,~~July 3, 2016 and July 5, 2015 ~~and September 28, 2014~~	4

		Consolidated Statements of Comprehensive Income – Three Months and ~~Nine~~Six Months Ended ~~October 4,~~July 3, 2016 and July 5, 2015 ~~and September 28, 2014~~	5

		Consolidated Condensed Statements of Cash Flows – ~~Nine~~Six Months Ended ~~October 4,~~July 3, 2016 and July 5, 2015 ~~and September 28, 2014~~	6

		Notes to Consolidated Condensed Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial ~~Condition and~~Conditionand Results of Operations	1314

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17

	Item 4.	Controls and Procedures	17

~~PART II.~~	~~OTHER INFORMATION~~

	~~Item 1.~~	~~Legal Proceedings~~	18

PART II.	OTHER INFORMATION
	Item 1.	Legal Proceedings	19
	Item 1A.	Risk Factors	1819

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	1819

	Item 3.	Defaults Upon Senior Securities	1819

	Item 4.	Mine Safety Disclosures	1819

	Item 5.	Other Information	1819

	Item 6.	Exhibits	1820

	Oct. 4, 2015			Dec. 28, 2014			JULY 3, 2016			JANUARY 3, 2016
	(UNAUDITED)						(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents	$	73,732		$	54,896		$	88,364		$	75,696
Accounts Receivable, net		132,748			157,093			128,479			130,322
Inventories		163,440			142,167			168,738			161,174
Prepaid Expenses and Other Current Assets		16,323			20,780			22,402			22,490
Deferred Income Taxes		8,141			9,732			8,509			8,726
TOTAL CURRENT ASSETS		394,384			384,668			416,492			398,408

PROPERTY AND EQUIPMENT, less accumulated depreciation		214,988			227,347			210,818			211,489
DEFERRED TAX ASSET		19,833			33,138			11,073			20,110
GOODWILL		65,148			70,509			64,872			63,890
OTHER ASSETS		55,542			59,252			61,864			62,652
TOTAL ASSETS	$	749,895		$	774,914		$	765,119		$	756,549

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts Payable	$	49,003		$	49,464		$	45,174		$	52,834
Current Portion of Long-Term Debt								13,750			11,250
Accrued Expenses		85,059			94,323			79,501			88,933
Current Portion of Long-Term Debt		10,000			0
TOTAL CURRENT LIABILITIES		144,062			143,787			138,425			153,017

LONG TERM DEBT		222,545			263,338
LONG-TERM DEBT								210,577			202,281
DEFERRED INCOME TAXES		10,225			11,002			9,030			10,505
OTHER		46,058			50,148			45,947			48,380
TOTAL LIABILITIES		422,890			468,275			403,979			414,183

Commitments and Contingencies

SHAREHOLDERS’ EQUITY:
Preferred Stock		0			0			0			0
Common Stock		6,586			6,597			6,481			6,570
Additional Paid-In Capital		370,607			368,603			358,320			370,327
Retained Earnings		85,316			39,737			127,274			100,270
Accumulated Other Comprehensive Loss – Foreign Currency Translation Adjustment		(87,583	)		(58,936	)		(90,443	)		(91,511	)
Accumulated Other Comprehensive Loss – Pension Liability		(47,921	)		(49,362	)		(40,492	)		(43,290	)
TOTAL SHAREHOLDERS’ EQUITY		327,005			306,639			361,140			342,366
	$	749,895		$	774,914		$	765,119		$	756,549

	THREE MONTHS ENDED					NINE MONTHS ENDED				THREE MONTHS ENDED						SIX MONTHS ENDED

	Oct. 4, 2015		Sept. 28, 2014			Oct. 4, 2015		Sept. 28, 2014		JULY 3, 2016			JULY 5, 2015			JULY 3, 2016		JULY 5, 2015

NET SALES	$	254,686	$	252,191		$	755,227	$	731,807	$	248,207		$	263,637		$	470,761	$	500,541
Cost of Sales		156,720		168,596			470,577		483,141		149,081			162,385			285,003		313,857

GROSS PROFIT ON SALES		97,966		83,595			284,650		248,666		99,126			101,252			185,758		186,684
Selling, General and Administrative Expenses		66,664		63,958			198,729		192,659		67,328			68,033			132,933		132,065
Restructuring and Asset Impairment Charge		0		12,386			0		12,386
OPERATING INCOME		31,302		7,251			85,921		43,621		31,798			33,219			52,825		54,619

Interest Expense		1,348		5,614			5,026		16,532		1,590			1,790			3,109		3,678
Other Expense		657		931			1,483		777
Other Expense (Income)											(116	)		(446	)		333		826

INCOME BEFORE INCOME TAX EXPENSE		29,297		706			79,412		26,312		30,324			31,875			49,383		50,115
Income Tax Expense		9,170		1,082			25,241		9,592		9,667			10,153			15,832		16,071

NET INCOME (LOSS)	$	20,127	$	(376	)	$	54,171	$	16,720
NET INCOME										$	20,657		$	21,722		$	33,551	$	34,044

Earnings (Loss) Per Share – Basic	$	0.31	$	(0.01	)	$	0.82	$	0.25
Earnings Per Share – Basic										$	0.32		$	0.33		$	0.51	$	0.51

Earnings (Loss) Per Share – Diluted	$	0.31	$	(0.01	)	$	0.82	$	0.25
Earnings Per Share – Diluted										$	0.32		$	0.33		$	0.51	$	0.51

Common Shares Outstanding – Basic		65,854		66,465			66,091		66,470		65,367			65,995			65,526		66,208
Common Shares Outstanding – Diluted		65,907		66,465			66,139		66,554		65,405			66,044			65,564		66,253

	THREE MONTHS ENDED						NINE MONTHS ENDED						THREE MONTHS ENDED						SIX MONTHS ENDED

	Oct. 4, 2015			Sept. 28, 2014			Oct. 4, 2015			Sept. 28, 2014			JULY 3, 2016			JULY 5, 2015			JULY 3, 2016		JULY 5, 2015

Net Income (Loss)	$	20,127		$	(376	)	$	54,171		$	16,720
Net Income													$	20,657		$	21,722		$	33,551	$	34,044
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment		(8,408	)		(15,991	)		(28,647	)		(11,809	)		(8,311	)		5,060			1,068		(20,239	)
Other Comprehensive Income (Loss), Pension Liability Adjustment		796			2,049			1,441			836			2,190			(2,557	)		2,798		645
Comprehensive Income (Loss)	$	12,515		$	(14,318	)	$	26,965		$	5,747
Comprehensive Income													$	14,536		$	24,225		$	37,417	$	14,450

							SIX MONTHS ENDED
	NINE MONTHS ENDED
	Oct. 4, 2015			Sept. 28, 2014			JULY 3, 2016			JULY 5, 2015
OPERATING ACTIVITIES:
Net Income	$	54,171		$	16,720		$	33,551		$	34,044
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Depreciation and Amortization		23,188			20,124			14,960			15,539
Stock Compensation Amortization Expense		10,928			2,989			2,349			9,100
Deferred Income Taxes and Other		15,403			1,739			4,490			9,287
Working Capital Changes:
Accounts Receivable		17,852			(7,373	)		1,668			15,209
Inventories		(28,670	)		(15,518	)		(6,169	)		(27,150	)
Prepaid Expenses and Other Current Assets		(377	)		1,799			(574	)		(2,328	)
Accounts Payable and Accrued Expenses		196			14,417			(20,360	)		(2,841	)

CASH PROVIDED BY OPERATING ACTIVITIES:		92,691			34,897			29,915			50,860

INVESTING ACTIVITIES:
Capital Expenditures		(23,734	)		(32,123	)		(12,752	)		(12,126	)
Other		(80	)		(1,950	)		1,585			(462	)

CASH USED IN INVESTING ACTIVITIES:		(23,814	)		(34,073	)		(11,167	)		(12,588	)

FINANCING ACTIVITIES:
Repayments of Long-Term Debt								(10,000	)		(3,000	)
Borrowing of Long-Term Debt		0			5,952			20,167			0
Repayment of Long-Term Debt		(28,000	)		(4,075	)
Proceeds from Issuance of Common Stock								0			359
Repurchase of Common Stock		(10,469	)		0			(10,443	)		(10,469	)
Proceeds from Issuance of Common Stock		359			159
Dividends Paid		(8,592	)		(6,647	)		(6,547	)		(5,300	)
Debt Issuance Costs		0			(106	)

CASH USED IN FINANCING ACTIVITIES:		(46,702	)		(4,717	)		(6,823	)		(18,410	)

Net Cash Provided By (Used In) Operating, Investing and
Net Cash Provided by (Used in) Operating, Investing and
Financing Activities		22,175			(3,893	)		11,925			19,862
Effect of Exchange Rate Changes on Cash		(3,339	)		(527	)		743			(2,937	)

CASH AND CASH EQUIVALENTS:
Net Change During the Period		18,836			(4,420	)		12,668			16,925
Balance at Beginning of Period		54,896			72,883			75,696			54,896

Balance at End of Period	$	73,732		$	68,463		$	88,364		$	71,821

	Oct. 4, 2015		December 28, 2014		July 3, 2016		January 3, 2016
	(In thousands)				(In thousands)
Finished Goods	$	105,328	$	89,688	$	112,304	$	101,697
Work in Process		11,102		9,898		9,710		9,865
Raw Materials		47,010		42,581		46,724		49,612
	$	163,440	$	142,167	$	168,738	$	161,174

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	Oct. 4, 2015		Sept. 28, 2014		Oct. 4, 2015		Sept. 28, 2014		July 3, 2016		July 5, 2015		July 3, 2016		July 5, 2015
			(In thousands)								(In thousands)
Weighted Average Shares Outstanding		64,359		65,045		64,596		65,050		64,779		64,497		64,938		64,710
Participating Securities		1,495		1,420		1,495		1,420		588		1,498		588		1,498
Shares for Basic Earnings (Loss) Per Share		65,854		66,465		66,091		66,470
Shares for Basic Earnings Per Share										65,367		65,995		65,526		66,208
Dilutive Effect of Stock Options		53		0		48		84		38		49		38		45
Shares for Diluted Earnings (Loss) Per Share		65,907		66,465		66,139		66,554
Shares for Diluted Earnings Per Share										65,405		66,044		65,564		66,253

	Shares		Weighted Average Exercise Price
Outstanding at December 28, 2014		126,000	$	9.23
Granted		0		0
Exercised		38,500		9.27
Forfeited or canceled		0		0
Outstanding at October 4, 2015		87,500	$	8.75

Exercisable at October 4, 2015		87,500	$	8.75

	Shares		Weighted Average Grant Date Fair Value		Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding at December 28, 2014		1,391,000	$	17.12
Outstanding at January 3, 2016						1,470,000	$	17.92
Granted		597,000		16.43		266,500		17.21
Vested		290,500		13.99		975,000		18.53
Forfeited or canceled		202,000		13.66		174,000		16.71
Outstanding at October 4, 2015		1,495,500	$	17.92
Outstanding at July 3, 2016						587,500	$	16.95

	Performance Shares
Outstanding at January 3, 2016		0
Granted		435,500
Vested		0
Forfeited or canceled		0
Outstanding at July 3, 2016		435,500

	Total Restructuring Charge		Costs Incurred in 2014		Costs Incurred in 2015		Balance at Oct. 4, 2015
	(In thousands)
Workforce Reduction	$	9,669	$	2,732	$	6,307	$	630
Fixed Asset Impairment		2,584		2,584		0		0
Other Related Exit Costs		133		133		0		0

	Three Months Ended October 4, 2015			Nine Months Ended October 4, 2015
	(In millions)
Net sales	$	(21.9	)	$	(64.1	)
Operating income		(2.0	)		(6.9	)

Period⁽¹⁾	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs⁽²⁾		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans orPrograms⁽²⁾

April 4-30, 2016		0		N/A		0	$	50,000,000
May 1-31, 2016⁽³⁾		329,110	$	16.30		328,833		44,639,862
June 1-30, 2016		329,353	$	15.15		329,353		39,651,157
July 1-3, 2016		0		N/A		0		39,651,157
Total		658,463	$	15.72		658,186	$	39,651,157

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
Defined Benefit Retirement Plan (Europe)	Oct. 4, 2015			Sept. 28, 2014			Oct. 4, 2015			Sept. 28, 2014			July 3, 2016			July 5, 2015			July 3, 2016			July 5, 2015
	(In thousands)						(In thousands)						(In thousands)						(In thousands)
Service cost	$	265		$	176		$	799		$	539		$	263		$	265		$	521		$	534
Interest cost		2,124			2,664			6,328			8,028			1,728			2,111			3,448			4,204
Expected return on assets		(2,279	)		(2,988	)		(6,791	)		(9,008	)		(2,007	)		(2,265	)		(4,004	)		(4,512	)
Amortization of prior service costs		8			10			25			38			(9	)		9			18			17
Recognized net actuarial losses		244			164			725			492			184			242			368			481
Net periodic benefit cost	$	362		$	26		$	1,086		$	89		$	159		$	362		$	351		$	724

EXHIBIT NUMBER	DESCRIPTION OF EXHIBIT

~~3.1~~	Bylaws, as amended and restated October 28, 2015 (included as Exhibit 3.1 to the Company’s current report on Form 8-K filed on October 28, 2015, previously filed with the Commission and incorporated herein by reference).
~~10.1~~	Interface, Inc. Executive Bonus Plan, as amended October 28, 2015 (included as Exhibit 99.2 to the Company’s current report on Form 8-K filed on October 28, 2015, previously filed with the Commission and incorporated herein by reference).
~~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.~~
~~101.SCH~~	~~XBRL Taxonomy Extension Schema Document.~~
~~101.CAL~~	~~XBRL Taxonomy Extension Calculation Linkbase Document.~~
~~101.LAB~~	~~XBRL Taxonomy Extension Label Linkbase Document.~~
~~101.PRE~~	~~XBRL Taxonomy Presentation Linkbase Document.~~
~~101.DEF~~	~~XBRL Taxonomy Definition Linkbase Document.~~

	~~INTERFACE, INC.~~


~~Date: November 12, 2015~~	~~By:~~	~~/s/ Patrick C. Lynch~~
		~~Patrick C. Lynch~~
		~~Senior Vice President~~
		~~(Principal Financial Officer)~~

~~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.~~Document
101.SCH	XBRL Taxonomy Extension Schema ~~Document.~~Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase ~~Document.~~Document
101.LAB	XBRL Taxonomy Extension Label Linkbase ~~Document.~~Document
101.PRE	XBRL Taxonomy Presentation Linkbase ~~Document.~~Document
101.DEF	XBRL Taxonomy Definition Linkbase ~~Document.~~Document

	INTERFACE, INC.

Date: August 11, 2016	By:	/s/ Patrick C. Lynch
		Patrick C. Lynch
		Senior Vice President
		(Principal Financial Officer)