Interface Reports Third Quarter 2025 Results

ATLANTA--( BUSINESS WIRE)--Interface, Inc. (Nasdaq: TILE), a worldwide commercial flooring company and global leader in sustainability, today announced results for the third quarter ended September 28, 2025.

"Third quarter results exceeded our expectations, as we delivered another period of strong year-over-year growth and meaningful profitability expansion." -- Laurel Hurd, CEO of Interface

Third quarter highlights (all comparisons are year-over-year):

“Third quarter results exceeded our expectations, as we delivered another period of strong year-over-year growth and meaningful profitability expansion. Currency-neutral net sales increased 4%, driven by continued share gains in the Americas and increased momentum in EAAA,” commented Laurel Hurd, CEO of Interface.

“Our One Interface strategy continues to fuel growth as we strengthen global functions, empower local selling teams, and streamline operations. Global billings grew across all regions, all product categories, and the majority of our market segments, highlighted by a 29% increase in Healthcare and a 5% increase in Corporate Office. Consistent performance is underscored by the effectiveness of our strategy and the strength of our competitive position as customers turn to Interface for our design and sustainability leadership, exceptional service, and proven product quality,” continued Hurd.

“We continue to strengthen the quality of our earnings through effective execution. Net sales grew on both price and volume, and gross profit margin expanded 233 basis points reflecting favorable mix and manufacturing efficiencies. We remain committed to maintaining a strong balance sheet, investing for growth, and expanding margins through disciplined capital allocation which will support long-term growth and drive sustained shareholder value,” added Bruce Hausmann, CFO of Interface.

Consolidated Results Summary (Unaudited)

Three Months Ended

Nine Months Ended

(in millions, except percentages and per share data)

9/28/2025

9/29/2024

Change

9/28/2025

9/29/2024

Change

GAAP

Net Sales

364.5

344.3

5.9

1,037.5

980.6

5.8

Gross Profit Margin % of Net Sales

39.4

37.1

233 bps

38.8

36.8

203 bps

SG&A Expenses

90.3

85.5

5.6

273.9

255.9

7.1

SG&A Expenses % of Net Sales

24.8

(6) bps

26.4

26.1

31 bps

Operating Income

53.4

42.2

26.5

128.6

104.8

22.8

Net Income

46.1

28.4

62.2

91.7

65.2

40.7

Earnings per Diluted Share

0.78

0.48

62.5

1.55

1.11

39.6

Non-GAAP

Currency-Neutral Net Sales

358.6

344.3

4.2

1,031.5

980.6

5.2

Adjusted Gross Profit Margin % of Net Sales

39.5

37.5

208 bps

39.1

37.2

193 bps

Adjusted SG&A Expenses

90.0

85.5

5.3

270.1

255.9

5.6

Adjusted SG&A Expenses % of Net Sales

24.7

24.8

(14) bps

26.0

26.1

(6) bps

Adjusted Operating Income

54.1

43.5

24.5

135.5

108.6

24.8

Adjusted Net Income

35.9

28.3

26.7

85.9

66.1

29.9

Adjusted Earnings per Diluted Share

0.61

0.48

27.1

1.45

1.13

28.3

Adjusted EBITDA

66.2

53.7

23.3

168.1

142.9

17.6

Currency-Neutral Orders Increase Year-Over-Year

2.4

Additional Metrics

9/28/2025

12/29/2024

Change

Cash

187.4

99.2

88.8

Total Debt

307.8

302.8

1.7

Total Debt Minus Cash ("Net Debt")

120.4

203.5

(40.8

Last 12-Months Adjusted EBITDA

214.1

Total Debt divided by Last 12-Months Net Income

2.7x

Net Debt divided by Last 12-Months Adjusted EBITDA ("Net Leverage Ratio")

0.6x

Segment Results Summary (Unaudited)

Three Months Ended

Nine Months Ended

(in millions, except percentages)

9/28/2025

9/29/2024

Change

9/28/2025

9/29/2024

Change

AMS

Net Sales

218.6

210.2

4.0

638.0

595.1

7.2

Currency-Neutral Net Sales

218.8

210.2

4.1

639.1

595.1

7.4

Operating Income

40.4

31.9

26.8

108.4

76.9

41.0

Adjusted Operating Income

40.5

32.2

25.8

109.2

77.2

41.4

Currency-Neutral Orders Increase Year-Over-Year

1.7

EAAA

Net Sales

145.9

134.1

8.8

399.5

385.6

3.6

Currency-Neutral Net Sales

139.9

134.1

4.3

392.5

385.6

1.8

Operating Income

12.9

10.3

25.5

20.2

27.9

(27.5

Adjusted Operating Income

13.7

11.3

21.0

26.3

31.4

(16.2

Currency-Neutral Orders Increase Year-Over-Year

3.5

Outlook

Interface is raising its full fiscal year outlook on the strength of its year-to-date results while acknowledging a challenging and uncertain global macro environment. With that backdrop in mind, Interface anticipates the following:

Full Fiscal Year 2025 Outlook

Previous Full Fiscal Year 2025 Outlook

Net sales

$1.375 billion to $1.390 billion

$1.370 billion to $1.390 billion

Adjusted gross profit margin

38.5% of net sales

37.7% of net sales

Adjusted SG&A expenses

$362 million

Adjusted interest & other expenses

$25 million

Adjusted effective income tax rate

26.0%

Capital expenditures

$45 million

Fully diluted weighted average share count

59.1 million shares

Note: All figures are approximate

Webcast and Conference Call Information

Interface will host a conference call on October 31, 2025, at 8:00 a.m. Eastern Time, to discuss its third quarter 2025 results. The conference call will be simultaneously broadcast live over the Internet.

Listeners may access the conference call live over the Internet at:

https://events.q4inc.com/attendee/238325033, or through the Company's website at: https://investors.interface.com.

The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends.

Non-GAAP Financial Measures

Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency- neutral sales and currency-neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, restructuring, asset impairment, severance, and other, net, and the cyber event impact. Adjusted EPS and adjusted net income also exclude the warehouse fire recovery, property casualty loss impact, and deferred taxes - rate changes and other. Adjusted gross profit and adjusted gross profit margin exclude the nora purchase accounting amortization. Adjusted SG&A expenses exclude restructuring, asset impairment, severance, and other, net and the cyber event impact. Currency-neutral sales and currency-neutral sales growth exclude the impact of foreign currency fluctuations.

Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, share-based compensation expense, cyber event impact, property casualty loss impact, restructuring, asset impairment, severance, and other, net, the nora purchase accounting amortization, warehouse fire recovery, and the loss on foreign subsidiary liquidation. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures.

About Interface

Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces.

A decades-long pioneer in sustainability, Interface remains “all in” on becoming a regenerative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040.

Learn more about Interface at interface.com and blog.interface.com, nora by Interface at nora.com, FLOR at FLOR.com, and the company’s sustainability journey at interface.com/sustainability.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “should,” “goal,” “aim," “objective,” “seek,” “project,” “estimate,” “target,” “will” and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company’s full year 2025 under “Outlook” above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024, and Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile (“LVT”) or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.’s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", "We face risks associated with litigation and claims", and “Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations”.

You should consider any additional or updated information we include under the heading “Risk Factors” in our subsequent quarterly and annual reports.

Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.

- TABLES FOLLOW -

Consolidated Condensed Statements of Operations (Unaudited)

Three Months Ended

Nine Months Ended

(In thousands, except per share data)

9/28/2025

9/29/2024

9/28/2025

9/29/2024

Net Sales

364,526

344,270

1,037,461

980,648

Cost of Sales

220,894

216,645

634,889

620,005

Gross Profit

143,632

127,625

402,572

360,643

Selling, General & Administrative Expenses

90,272

85,450

273,938

255,871

Operating Income

53,360

42,175

128,634

104,772

Interest Expense

4,211

5,721

13,069

18,317

Other Expense, net

659

381

5,773

237

Income Before Income Tax Expense

48,490

36,073

109,792

86,218

Income Tax Expense

2,344

7,630

18,083

21,038

Net Income

46,146

28,443

91,709

65,180

Earnings Per Share – Basic

0.79

0.49

1.57

1.12

Earnings Per Share – Diluted

0.78

0.48

1.55

1.11

Common Shares Outstanding – Basic

58,371

58,305

58,453

58,275

Common Shares Outstanding – Diluted

59,134

58,871

59,155

58,754

(In thousands)

9/28/2025

12/29/2024

Assets

Cash and Cash Equivalents

187,355

99,226

Accounts Receivable, net

187,122

171,135

Inventories, net

286,814

260,581

Other Current Assets

33,801

33,355

Total Current Assets

695,092

564,297

Property, Plant and Equipment, net

294,117

282,374

Operating Lease Right-of-Use Assets

77,596

76,815

Goodwill and intangibles assets, net

162,102

148,160

Other Assets

101,616

99,170

Total Assets

1,330,523

1,170,816

Liabilities

Accounts Payable

77,776

68,943

Accrued Expenses

148,365

134,996

Current Portion of Operating Lease Liabilities

13,561

12,296

Current Portion of Long-Term Debt

507

482

Total Current Liabilities

240,209

216,717

Long-Term Debt

307,280

302,275

Operating Lease Liabilities

68,692

68,092

Other Long-Term Liabilities

93,391

94,584

Total Liabilities

709,572

681,668

Shareholders’ Equity

620,951

489,148

Total Liabilities and Shareholders’ Equity

1,330,523

1,170,816

Consolidated Condensed Statements of Cash Flows (Unaudited)

Three Months Ended

Nine Months Ended

(In thousands)

9/28/2025

9/29/2024

9/28/2025

9/29/2024

OPERATING ACTIVITIES

Net Income

46,146

28,443

91,709

65,180

Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:

Depreciation and Amortization

9,936

9,902

29,166

29,246

Share-Based Compensation Expense

3,624

2,629

10,541

9,160

Deferred Taxes

(10,575

)

(121

)

(10,321

)

(1,160

)

Other

(2,620

)

1,587

(1,509

)

(2,179

)

Amortization of Acquired Intangible Assets

467

1,311

3,073

3,895

Change in Working Capital

Accounts Receivable

6,129

8,251

(8,610

)

(10,656

)

Inventories

1,189

3,266

(10,912

)

(2,395

)

Prepaid Expenses and Other Current Assets

5,151

1,749

743

(4,583

)

Accounts Payable and Accrued Expenses

17,282

19,212

14,716

23,879

Cash Provided by Operating Activities

76,729

76,229

118,596

110,387

INVESTING ACTIVITIES

Capital Expenditures

(10,656

)

(6,501

)

(25,477

)

(20,108

)

Proceeds from Sale of Property, Plant and Equipment

—

1,040

Insurance Proceeds from Property Casualty Loss

—

1,374

—

2,374

Cash Used in Investing Activities

(10,656

)

(5,127

)

(25,477

)

(16,694

)

FINANCING ACTIVITIES

Repayments of Long-term Debt

(127

)

(67,311

)

(380

)

(114,241

)

Borrowing of Long-term Debt

3,273

16,047

4,579

33,381

Repurchase of Common Stock

(857

)

—

(5,143

)

—

Tax Withholding Payments for Share-Based Compensation

(636

)

(16

)

(8,372

)

(4,770

)

Dividends Paid

(1,170

)

(582

)

(2,397

)

(1,755

)

Finance Lease Payments

(738

)

(723

)

(2,282

)

(2,160

)

Cash Used in Financing Activities

(255

)

(52,585

)

(13,995

)

(89,545

)

Net Cash Provided by Operating, Investing and Financing Activities

65,818

18,517

79,124

4,148

Effect of Exchange Rate Changes on Cash

(164

)

2,897

9,005

955

CASH AND CASH EQUIVALENTS

Net Change During the Period

65,654

21,414

88,129

5,103

Balance at Beginning of Period

121,701

94,187

99,226

110,498

Balance at End of Period

187,355

115,601

187,355

115,601

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)

(In millions, except per share amounts)

Third Quarter 2025

Third Quarter 2024

Adjustments

Gross Profit

SG&A Expenses

Operating Income (Loss)

Pre-tax

Tax Effect

Net Income (Loss)

Diluted EPS

Gross Profit

SG&A Expenses

Operating Income (Loss)

Pre-tax

Tax Effect

Net Income (Loss)

Diluted EPS

GAAP As Reported

143.6

90.3

53.4

46.1

0.78

127.6

85.5

42.2

28.4

0.48

Non-GAAP Adjustments:

Purchase Accounting Amortization

0.5

—

0.5

(0.1

)

0.3

0.01

1.3

—

1.3

(0.4

)

0.9

0.02

Restructuring, Asset Impairment, Severance, and Other, net

—

(0.3

)

0.3

(0.1

)

0.2

—

Warehouse Fire Recovery (1)

—

(0.6

)

0.1

(0.4

)

(0.01

)

—

Deferred Taxes - Rate Changes and Other (2)

—

(10.4

)

(10.4

)

(0.18

)

—

Property Casualty Loss (3)

—

(1.4

)

0.3

(1.0

)

(0.02

)

Adjustments Subtotal *

0.5

(0.3

)

0.8

0.2

(10.5

)

(10.2

)

(0.17

)

1.3

—

1.3

(0.1

)

—

(0.1

)

—

Adjusted (non-GAAP) *

144.1

90.0

54.1

35.9

0.61

128.9

85.5

43.5

28.3

0.48

(1) Represents insurance recovery of loss recognized in the second quarter of 2020.

(2) In July 2025, Germany enacted tax legislation to reduce the German corporate income tax rate by 1% annually from 2028 to 2032. This resulted in a review and remeasurement of the Company's German deferred tax assets and liabilities and a non-cash credit to income tax expense in the third quarter of 2025.

(3) Represents insurance recovery of loss recognized in the first quarter of 2023.

* Note: Sum of reconciling items may differ from total due to rounding of individual components.

First Nine Months 2025

First Nine Months 2024

Adjustments

Gross Profit

SG&A Expenses

Operating Income (Loss)

Pre-tax

Tax Effect

Net Income (Loss)

Diluted EPS

Gross Profit

SG&A Expenses

Operating Income (Loss)

Pre-tax

Tax Effect

Net Income (Loss)

Diluted EPS

GAAP As Reported

402.6

273.9

128.6

91.7

1.55

360.6

255.9

104.8

65.2

1.11

Non-GAAP Adjustments:

Purchase Accounting Amortization

3.1

—

3.1

(0.9

)

2.2

0.04

3.9

—

3.9

(1.1

)

2.8

0.05

Restructuring, Asset Impairment, Severance, and Other, net

—

(3.8

)

3.8

(1.0

)

2.8

0.05

—

(0.3

)

0.3

—

0.3

—

Warehouse Fire Recovery (1)

—

(0.6

)

0.1

(0.4

)

(0.01

)

—

Deferred Taxes - Rate Changes and Other (2)

—

(10.4

)

(10.4

)

(0.18

)

—

Cyber Event Impact

—

0.4

(0.4

)

(0.4

)

0.1

(0.3

)

—

Property Casualty Loss (3)

—

(2.3

)

0.6

(1.8

)

(0.03

)

Adjustments Subtotal *

3.1

(3.8

)

6.9

6.3

(12.1

)

(5.8

)

(0.10

)

3.9

0.1

3.8

1.5

(0.5

)

1.0

0.02

Adjusted (non-GAAP) *

405.6

270.1

135.5

85.9

1.45

364.5

255.9

108.6

66.1

1.13

(1) Represents insurance recovery of loss recognized in the second quarter of 2020.

(3) Represents property insurance (recovery) / loss.

* Note: Sum of reconciling items may differ from total due to rounding of individual components.

Reconciliation of Segment GAAP Financial Measures to Non-GAAP Financial Measures ("Currency-Neutral Net Sales", and "AOI")

(In millions)

Third Quarter 2025

Third Quarter 2024

AMS Segment

EAAA Segment

Consolidated *

AMS Segment

EAAA Segment

Consolidated *

Net Sales as Reported (GAAP)

218.6

145.9

364.5

210.2

134.1

344.3

Impact of Changes in Currency

0.1

(6.0

)

(5.9

)

—

Currency-Neutral Net Sales *

218.8

139.9

358.6

210.2

134.1

344.3

* Note: Sum of reconciling items may differ from total due to rounding of individual components

First Nine Months 2025

First Nine Months 2024

AMS Segment

EAAA Segment

Consolidated *

AMS Segment

EAAA Segment

Consolidated *

Net Sales as Reported (GAAP)

638.0

399.5

1,037.5

595.1

385.6

980.6

Impact of Changes in Currency

1.1

(7.0

)

(6.0

)

—

Currency-Neutral Net Sales *

639.1

392.5

1031.5

595.1

385.6

980.6

* Note: Sum of reconciling items may differ from total due to rounding of individual components

Third Quarter 2025

Third Quarter 2024

AMS Segment

EAAA Segment

Consolidated *

AMS Segment

EAAA Segment

Consolidated *

GAAP Operating Income (Loss)

40.4

12.9

53.4

31.9

10.3

42.2

Non-GAAP Adjustments:

Purchase Accounting Amortization

—

0.5

—

1.3

Restructuring, Asset Impairment, Severance, and Other, net

—

0.3

(0.3

)

—

Adjustments Subtotal *

—

0.7

0.8

0.3

1.0

1.3

AOI *

40.5

13.7

54.1

32.2

11.3

43.5

* Note: Sum of reconciling items may differ from total due to rounding of individual components

First Nine Months 2025

First Nine Months 2024

AMS Segment

EAAA Segment

Consolidated *

AMS Segment

EAAA Segment

Consolidated *

GAAP Operating Income (Loss)

108.4

20.2

128.6

76.9

27.9

104.8

Non-GAAP Adjustments:

Purchase Accounting Amortization

—

3.1

—

3.9

Cyber Event Impact

—

(0.2

)

(0.2

)

(0.4

)

Restructuring, Asset Impairment, Severance, and Other, net

0.8

3.0

3.8

0.6

(0.2

)

0.3

Adjustments Subtotal *

0.8

6.1

6.9

0.3

3.5

3.8

AOI *

109.2

26.3

135.5

77.2

31.4

108.6

* Note: Sum of reconciling items may differ from total due to rounding of individual components

(in millions)

Third Quarter 2025

Third Quarter 2024

First Nine Months 2025

First Nine Months 2024

Last Twelve Months (LTM) Ended 9/28/2025

Fiscal Year 2024

Net Income as Reported (GAAP)

46.1

28.4

91.7

65.2

113.5

86.9

Income Tax Expense

2.3

7.6

18.1

21.0

23.7

26.6

Interest Expense (including debt issuance cost amortization)

4.2

5.7

13.1

18.3

18.0

23.2

Depreciation and Amortization (excluding debt issuance cost amortization)

9.7

9.3

28.3

27.7

37.9

37.3

Share-based Compensation Expense

3.6

2.6

10.5

9.2

14.3

12.9

Purchase Accounting Amortization

0.5

1.3

3.1

3.9

4.4

5.2

Restructuring, Asset Impairment, Severance, and Other, net

0.3

—

3.8

0.3

6.0

2.5

Warehouse Fire Recovery (1)

(0.6

)

—

(0.6

)

—

(0.6

)

—

Cyber Event Impact

—

(0.4

)

(5.1

)

(5.5

)

Property Casualty Loss (2)

—

(1.4

)

—

(2.3

)

—

(2.3

)

Loss on Foreign Subsidiary Liquidation (3)

—

2.2

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (AEBITDA)*

66.2

53.7

168.1

142.9

214.1

189.0

(1) Represents insurance recovery of loss recognized in the second quarter of 2020.

(2) Represents insurance recovery of loss recognized in the first quarter of 2023.

(3) In 2024, our Thailand subsidiary was substantially liquidated and the related cumulative translation adjustment was recognized in other expense.

* Note: Sum of reconciling items may differ from total due to rounding of individual components

The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period.

The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company’s business, may provide users of the Company’s financial information with additional meaningful basis for comparing the Company’s current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Tax effects identified above (when applicable) are calculated using the statutory tax rate for the jurisdictions in which the charge or income occurred.