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PropertyGuru

Group, a Southeast Asian real estate technology company, opened on Friday after completing its $1.61 billion merger with a blank check company backed by billionaires Richard Li and Peter Thiel.

The listing isn’t the first time PropertyGuru (ticker: PGRU) has attempted to go public. In 2019, the Singaporean company attempted to float its shares on the Australian Stock Exchange. but did not go forward. “The market conditions were not optimal. We have decided to take a break,” said Hari Krishnan, CEO and Managing Director of PropertyGuru. Barrons of the New York Stock Exchange.

Instead, PropertyGuru chose to reinvest in the business. In 2020, it raised $220 million in a funding round led by TPG (TPG) and

KKR

(KKR). “Our business is stronger than it has ever been. We felt the company was well positioned to monetize the post-Covid recovery period,” Krishnan said.

On Friday, shares of PropertyGuru (ticker: PGRU) closed at $8.60, down 14% on its first day as a merged company. PropertyGuru closed its merger on Friday with Bridgetown 2 Holdings Limited, which went public in January 2021 at $10 per share.

Founded in 2007, PropertyGuru is an online property search company that consumers use to find a home to buy, rent or invest in Singapore, Malaysia, Thailand, Indonesia and Vietnam. The company had connected more than 52 million property seekers with more than 57,000 agents as of June 30, according to regulatory filings.

Bridgetown 2 is the special purpose acquisition company, or SPAC, which is backed by Li’s investment unit, Pacific Century Group, and Thiel’s Thiel Capital. The merger, announced in July, gives PropertyGuru an enterprise value of $1.36 billion and a net worth of $1.61 billion.

SPACs raise funds through an initial public offering with the goal of finding a private company and merging with it. The money raised from the IPO is placed in a trust that earns interest until there is a merger. SPACs also have a deadline. They must complete a business combination within a certain time frame or risk having to return the money to the investors. Most SPACs that went public in 2021 have 18-24 months to find and complete a merger.

Bridgetown 2 is part of the SPAC class of 2021, the 613 blank check companies that went public that year, raising $162.5 billion, according to data from SPAC Research. More than 50 SPACs as of 2021, including Bridgetown 2, have completed a business combination, Renaissance Capital said. This means that around 560 companies with this year’s blank check have not yet reached an agreement.

SPACs were once one of their hottest sectors in the IPO market. Their fortunes reversed after several poorly executed trades. SPACs typically list their stocks at $10, but many of those stocks haven’t traded well. The majority of SPACs that have closed deals are below $10, Renaissance Capital said.

pristine orbit

(VORB), Richard Branson’s satellite launch company, is down 35%, while BuzzFeed (BZFD), a digital media company, is down 52%.

Vacasa

(VCSA), a vacation rental management platform, fell 20%.

Asked about the drop in SPAC shares, Krishnan pointed to the companies. SPACs are a “proven business model”. There’s nothing exotic about it,” he said. Companies wishing to list their shares must have “a good unit economy, a well-run company. Good novelty. All of these fundamentals remain the same whether you do a traditional IPO or a SPAC,” he said. Krishnan did not comment on PropertyGuru’s stock performance on Friday.

Some investors said Barrons that the delay in reaching an agreement is due to the fact that some private companies are not ready to go public. Krishnan said there are several things a company must meet to trade publicly, including having the right governance and structure.

“The journey to becoming a publicly traded company takes effort,” he said.

Write to Luisa Beltran at luisa.beltran@dowjones.com

A first-time home buyer (FTB) could save tens of thousands of dollars in the first ten years of their mortgage by locking in a fixed-rate mortgage before any interest rate hikes, according to figures from mortgage brokers, Dowling Financial. Savings could even be made if interest rates do not rise.

Repair to save

Let’s say you’re an FTB borrowing $300,000 over 30 years to buy a house worth $350,000. Some of the cheapest mortgages available to you are ICS Mortgages’ variable rate of 2.7% (if you get a variable rate) or Avant Money’s ten-year rate of 2.4% (if you get a variable rate). ten-year fixed rate).

Your monthly repayments currently stand at around €1,170 under the ten-year fixed rate of 2.4pc and €1,216 under the variable rate of 2.7pc, according to Dowling Financial. Thus, even if interest rates remain unchanged for the next ten years, you would save around €5,500 over the first ten years of your mortgage by opting for the ten-year fixed rate of 2.4 pc at the start, rather than the variable rate of 2.7 pc, according to Dowling Financial.

If rates go up half a percent

The savings to be gained with the ten-year fixed rate would be even greater if the ECB rate – and therefore the variable mortgage interest rate – increased during the first ten years of your mortgage.

Let’s say you took out your mortgage on February 28, 2022. On that date, the cheapest variable mortgage available to you was the ICS Mortgage rate of 2.7%, while the ten-year fixed rate mortgage the cheapest was Avant Money’s ten-year rate of 2.4. pc. Let’s say the ECB rate and in turn your variable mortgage rate increases by 0.5 percentage point six months after your mortgage starts (bringing your variable rate to 3.2pc) – then stays at that rate for the next nine and a half years of your mortgage.

If you had locked in the ten-year fixed rate on February 28, 2022 instead of opting for the variable rate of 2.7pc initially, you would have saved around €14,750 in interest over the first ten years of your mortgage. 30 years, according to Dowling Financial.

If rates go up one percent

Let’s say you took out your mortgage on February 28, 2022, and the variable interest rate increases by one percentage point (from 2.7 to 3.7 percent) per year in your mortgage – then stays at that rate for the next nine years. If you had initially locked in the ten-year fixed rate of 2.4% instead of opting for the variable rate, you would have saved around €23,200 in the first ten years of your 30-year mortgage, according to Dowling Financial.

Indeed, the interest savings in the first ten years could be even greater than those numbers, because you typically pay more interest in the early years of a mortgage than in the later years, according to Dowling. This is because the outstanding balance of your mortgage decreases over time and therefore the amount of interest you pay also decreases. “In a 20-year mortgage, it would usually take you the first 12 years to pay off half the principal [the original amount borrowed] and the following eight years to repay the other half of the capital”, shelp Dowling.

How to limit the blows that higher interest rates could bring

TOP TIPS: INTEREST RATES ARE HITTED BE CAREFUL OF BONDS AND COMMERCIAL PROPERTY
“People should assess the amount of bonds they hold in their portfolios,” said Brian O’Reilly of Mediolanum Asset Management. “If interest rates rise, bond yields generally rise as well, causing bond prices to fall. Thus, even “safe haven” government bonds could be negatively affected by rising interest rates. »
In the case of stocks, bond proxies (stocks likely to offer safe and predictable returns) tend to be most affected by
rising interest rates, O’Reilly added.
Commercial real estate investments and utility stocks could be hit by rising interest rates, according to O’Reilly. “Real estate will likely be more difficult if interest rates rise, as real estate transactions could become more expensive,” O’Reilly said.

GET A FINANCIAL CUSHION
“Given rising interest rates, it’s worth sitting down and looking at your finances, especially your discretionary spending,” said AIMA’s Trevor Grant. “See if there are areas where you could cut costs if you needed to. You might find that there’s an extra $50-200 a month you could save if you tightened your belt. Put that money aside now, as it will reassure you in case rates rise.

SORTING OUT PROBLEM DEBTS
Wipe out or reduce any expensive or large debt you have (such as credit cards, overdrafts, car financing, or personal loans) before any interest rate hikes if you can – because that debt could become more expensive if interest rates rise. For the same reason, try to pay off any mortgage arrears you accumulated before or during the pandemic.
“Now is an opportunity for people who have expensive short-term debt to see if they can renegotiate that debt into a cheaper form – or if they have money on deposit, to use some of it to settle credit card bills or other costly debts. said Michael Dowling of Dowling Financial.
CHECK YOUR PENSION
Annuities generally offer better value when interest rates rise, but don’t expect your pension to increase dramatically as a result. “Although your purchasing power increases if interest rates rise and you buy an annuity, your retirement portfolio may lose value, depending on the type of bonds you hold. [in it] – so the gain outweighs the loss,” said Peter Griffin, director of APT Workplace Pension. “Higher interest rates could potentially put pressure on defined benefit plans.”

BRANFORD, Conn., March 03, 2022 (GLOBE NEWSWIRE) — Sachem Capital Corp. (NYSE American: SACH) Announces the Pricing of a Registered Public Offering of $50.0 Million Aggregate Principal Amount of 6.00% Unsecured and Unsubordinated Notes Due Five Years from the Date issue (“Notes”). The net proceeds of the offering to Sachem Capital Corp. is expected to be approximately $48.2 million after payment of underwriting discounts and commissions and estimated offering costs payable by Sachem Capital Corp.

The offering is expected to close on March 9, 2022, subject to customary closing conditions. Sachem Capital Corp. granted the underwriters a 30-day option to purchase up to an additional aggregate principal amount of $7.5 million of notes to cover over-allotments, if any.

Notes will be graded past bet with all unsecured and unsubordinated debt of the company, whether currently outstanding or issued in the future. The Notes are expected to list on the NYSE American under the symbol “SCCE” and begin trading on or about March 10, 2022.

The Notes will mature on March 30, 2027 and may be redeemed, in whole or in part, at any time or from time to time, at the Company’s option beginning on March 9, 2024. Interest on the Notes will accrue at the rate annual rate of 6.00% and will be payable quarterly, in arrears, on March 30, June 30, September 30 and December 30 during which the Notes are outstanding, commencing on June 30, 2022.

The Notes have a private credit rating of BBB+ assigned by Egan-Jones Ratings Company, an independent, unaffiliated rating agency. Egan-Jones is a nationally recognized statistical rating organization and is recognized by the National Association of Insurance Commissioners as a credit rating provider. Egan-Jones is also certified by the European Securities and Markets Authority. A security rating is not a recommendation to buy, sell or hold any security and may be subject to revision or withdrawal at any time.

Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC, InspereX LLC and William Blair & Company, LLC are acting as joint bookrunners for the offering. Colliers Securities LLC is acting as co-manager of the offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities of this offer or any other securities, nor will there be any sale of the Notes or any other securities. mentioned in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

A registration statement relating to, among other things, the Notes has been filed with and declared effective by the Securities and Exchange Commission. The offering is being made only by means of a related prospectus supplement and an accompanying base prospectus forming part of the effective registration statement, copies of which may be obtained, when available, from from: Ladenburg Thalmann & Co. Inc. upon written request to Syndicate Department, 640 5th Avenue, 4th Floor, New York, NY 10019 (telephone number 1-800-573-2541) or by sending e-mail to prospectus @ladenburg.com; Janney Montgomery Scott LLC, by written request to 1717 Arch Street Philadelphia, PA 19103 (phone number 1-800-526-6397) or by emailing prospectus@janney.com; or InspereX LLC, Attn: Syndicate Department, 200 S. Wacker Drive, Suite 3400, Chicago, IL 60606 (phone number 1-800-327-1546) or by emailing prospectus_requests@insperex.com; or William Blair & Company, LLC upon written request to 150 North Riverside Plaza, Chicago, Illinois 60606 (phone number 1-800-621-0687) or by emailing prospectus@williamblair.com. Copies may also be obtained free of charge by visiting EDGAR on the SEC’s website at http://www.sec.gov.

Sachem Capital Corp. has filed a preliminary prospectus supplement, dated March 3, 2022, with the Securities and Exchange Commission which contains a more detailed description of the Notes and the terms of the offering. The preliminary prospectus supplement, dated March 3, 2022, and the accompanying base prospectus, dated February 25, 2022, which contain other important information about Sachem Capital Corp., should be read carefully before investing in the tickets. Investors are urged to carefully consider their personal investment objectives, the risks relating to Sachem Capital Corp., generally, and the Notes in particular, and other matters relating to Sachem Capital Corp., its business, operations and its financial situation, before investing in the notes.

About Sachem Capital Corp.

Sachem Capital Corp. specializes in the origination, underwriting, financing, servicing and management of a portfolio of first mortgage loans. It offers short-term (i.e. three years or less) secured non-bank loans (sometimes referred to as “hard money” loans) to property investors to finance the acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut. . The company does not lend to owner occupiers. The company’s primary underwriting criteria is a conservative loan-to-value ratio. The properties securing the Company’s loans are generally classified as residential or commercial real estate and are generally held for the purpose of resale or investment. Each loan is secured by a first ranking mortgage on real estate. Each loan is also personally guaranteed by the principal(s) of the borrower, which security may be secured as security by a pledge of the guarantor’s interest in the borrower. The company also makes opportunistic real estate purchases outside of its lending business. The company believes that it qualifies as a real estate investment trust (REIT) for federal income tax purposes and has elected to be taxed as a REIT beginning with its 2017 tax year.

Forward-looking statements

This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future operating results and financial condition, our strategy and plans, and our expectations for future operations, are statements prospective. The words “anticipate”, “estimate”, “expect”, “project”, “plan”, “seek”, “intend”, “believe”, “may”, “might”, ” will”, “should”, “could”, “likely”, “continue”, “design” and the negative form of these terms and other similar words and phrases are intended to identify forward-looking statements.

We have based these forward-looking statements largely on our current expectations and projections regarding future events and trends that we believe may affect our financial condition, results of operations, strategy, operations and business objectives in the near and future. long term and our financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions, as described in our 2020 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on March 31, 2021. Due to these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results may differ materially and adversely from those anticipated or implied by the forward-looking statements.

You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Further, neither we nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. We disclaim any obligation to update any of these forward-looking statements.

All forward-looking statements attributable to us are expressly qualified in their entirety by these and other cautionary statements made in this press release. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties.

Investor and media contact:
Crescendo Communications, LLC
Email: sach@crescendo-ir.com
Tel: (212) 671-1021

Impact of the COVID-19 pandemic

On March 1, 2020, the World Health Organization declared the COVID-19 outbreak a
pandemic, and the virus continues to spread in areas where we operate and sell
our products and services. The COVID-19 pandemic has had material adverse
effects on our business, results of operations, and financial condition, and it
is anticipated that this will continue for an indefinite period of time. The
duration of the pandemic will ultimately determine the extent to which our
operations are impacted. We continue to monitor our operations and have
implemented various programs to mitigate the effects on our business including
reductions in employees, labor costs, marketing expenses, consulting expenses,
travel costs, various other costs, and capital expenditures, as well as reducing
the amount of the cash dividend that we pay on our common stock. We continue to
focus on the impact COVID-19 has on our employees in accordance with the
Company's ongoing safety measures, as well as any local government orders and
"shelter in place" directives in place from time to time.

During fiscal year 2021, the COVID-19 pandemic had less of an impact on our
overall financial results as consolidated net sales increased 8.8% compared to
fiscal year 2020. Government stimulus programs, increased COVID-19 vaccination
rates, and fewer COVID-19 related restrictions in some places contributed to a
rebound in economic activity in certain countries driving higher revenues
globally compared to fiscal year 2020. The sales increase in fiscal year 2021
compared to fiscal year 2020 was primarily in non-corporate office market
segments, including healthcare, education, retail, residential / living and
transportation. Our global supply chain and manufacturing operations, however,
experienced increased adverse impacts and disruptions in 2021 from COVID-19.
These impacts included raw material shortages, raw material cost increases,
higher freight costs, shipping delays, and labor shortages - particularly in the
United States. These impacts to our supply chain and manufacturing operations
increased our costs, decreased our ability to achieve manufacturing targets,
increased lead times to our customers, and adversely affected our gross profit
margin as a percentage of net sales. Management believes it is reasonably likely
these impacts will continue and affect our future operations and results to some
degree, particularly during the first half of 2022.

During fiscal year 2020, the COVID-19 pandemic resulted in 17.9% lower
consolidated net sales compared to fiscal year 2019. We temporarily suspended
production in certain manufacturing facilities in 2020 due to government
lockdowns, shelter in place orders and reduced demand. Our sales mix shifted
towards more non-corporate office market segments as the COVID-19 pandemic
reduced corporate spending, which impacted sales in the corporate office market.
During 2020, the Company recorded $12.9 million of voluntary and involuntary
severance costs, which were included in selling, general and administrative
expenses in the consolidated statements of operations.

In fiscal year 2020, government grants and payroll protection programs were
available in various countries globally to provide assistance to companies
impacted by the pandemic. The CARES Act enacted in the United States (see Note
17 entitled "Income Taxes" included in Item 8 of this Annual Report on Form 10-K
for additional information) and a payroll protection program enacted in the
Netherlands (the "NOW Program") provided benefits related to payroll costs
either as reimbursements, lower payroll tax rates or deferral of payroll tax
payments. The NOW Program provided eligible companies with reimbursement of
labor costs as an incentive to retain employees and continue paying them in
accordance with the Company's customary compensation practices. During fiscal
year 2020, the Company qualified for benefits under several payroll protection
programs and recognized a reduction in payroll costs of approximately $7.3
million, which were recorded as a $6.1 million reduction of selling, general and
administrative expenses and a $1.2 million reduction of cost of sales in the
consolidated statements of operations, as the Company believes it is probable
that the benefits received will not be repaid.

During the first quarter of 2020, as a result of changes in macroeconomic
conditions related to the COVID-19 pandemic, we recognized a charge of $121.3
million for the impairment of goodwill and certain intangible assets. See Note
12 entitled "Goodwill and Intangible Assets" of Part II, Item 8 of this Annual
Report for additional information.

Executive Overview

Our revenues are derived from sales of floorcovering products, primarily modular
carpet, luxury vinyl tile ("LVT") and rubber flooring products. Our business, as
well as the commercial interiors industry in general, is cyclical in nature and
is impacted by economic conditions and trends that affect the markets for
commercial and institutional business space. The commercial interiors industry,
including the market for floorcovering products, is largely driven by
reinvestment by corporations into their existing businesses in the form of new
fixtures and furnishings for their workplaces. In significant part, the timing
and amount of such reinvestments are impacted by the profitability of those
corporations. As a result, macroeconomic factors such as employment rates,
office vacancy rates, capital spending, productivity and efficiency gains that
impact corporate profitability in general, also affect our business.
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During fiscal year 2021, the Company largely completed its integration of the
nora acquisition, and integration of its European and Asia-Pacific commercial
areas and determined that it has two operating and reportable segments - namely
Americas ("AMS") and Europe, Africa, Asia and Australia (collectively "EAAA").
The AMS operating segment is unchanged from prior year and continues to include
the United States, Canada and Latin America geographic areas. See Note 20
entitled "Segment Information" included in Item 8 of this Annual Report on Form
10-K for additional information. The results of operations discussion below also
includes segment information.

We focus our marketing and sales efforts on both corporate office and
non-corporate office market segments, to reduce somewhat our exposure to
economic cycles that affect the corporate office market segment more adversely,
as well as to capture additional market share. More than half of our
consolidated net sales were in non-corporate office markets in fiscal year 2021
and fiscal year 2020, primarily in education, healthcare, government, retail,
and residential/living market segments. See Item 1, "Business" of this Annual
Report on Form 10-K for additional information regarding our mix of modular
carpet and resilient flooring sales in corporate office verses non-corporate
office market segments for the last three fiscal years by reportable segment.

During 2021, we had consolidated net sales of $1,200.4 million, up 8.8% compared
to $1,103.3 million in 2020, primarily due to the rebound in economic activity
in certain countries following the impacts of COVID-19. Consolidated operating
income for 2021 was $104.8 million compared to consolidated operating loss of
$39.3 million in 2020 primarily due to higher sales in 2021 and a $121.3 million
impairment of goodwill and certain intangible assets in 2020. Fiscal year 2021
also included $3.9 million of restructuring charges in connection with the
planned closure of our Thailand manufacturing operations anticipated to occur in
2022. Consolidated net income for 2021 was $55.2 million or $0.94 per share,
compared to consolidated net loss of $71.9 million, or $1.23 per share, in 2020.

During 2020, we had consolidated net sales of $1,103.3 million, down 17.9%
compared to $1,343.0 million in 2019, primarily due to the impacts of COVID-19.
The consolidated operating loss for 2020 was $39.3 million compared to
consolidated operating income of $130.9 million in 2019, due primarily to a
$121.3 million goodwill and intangible asset impairment charge recorded in
fiscal 2020 due to the impacts of COVID-19. The consolidated net loss for 2020
was $71.9 million, or $1.23 per share, compared to consolidated net income of
$79.2 million, or $1.34 per share, in 2019.

A detailed analysis of our consolidated and segment performance for 2021 and 2020 is set out below under the heading “Analysis of operating results”.

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Analysis of Results of Operations

Consolidated results

The following discussion and analyzes reflect the factors and trends discussed in previous sections.

Consolidated net sales denominated in currencies other than the U.S. dollar were
approximately 50% in 2021, 51% in 2020, and 49% in 2019. Because we have
substantial international operations, we are impacted, from time to time, by
international developments that affect foreign currency transactions. In 2021,
the strengthening of the Euro, Australian dollar, Chinese Renminbi and British
Pound sterling against the U.S. dollar had a positive impact on our net sales
and operating income. In 2020, the strengthening of the Euro, British Pound
sterling, and Chinese Renminbi against the U.S. dollar had a positive impact on
our net sales and operating income. In 2019, the weakening of the Euro, British
Pound sterling, Australian dollar, Canadian dollar and Chinese Renminbi against
the U.S. dollar had a negative impact on our net sales and operating income.

The following table shows the amounts (in we dollars) by which the exchange rates for converting Euros, British Pounds Sterling, Australian Dollars, Chinese Renminbi and Canadian Dollars into we dollars have affected our consolidated net sales and operating profit or loss over the past three years:

                                                      2021                   2020                   2019
                                                                        (in 

millions)

Impact of changes in foreign currency on
consolidated net sales                          $        23.9          $         7.1          $       (26.2)
Impact of changes in foreign currency on
consolidated operating income (loss)                      3.2                    0.9                   (3.9)



The following table presents, as a percentage of net sales, certain items
included in our consolidated statements of operations during the past three
years:

                                                                 Fiscal Year
                                                       2021          2020         2019
Net sales                                              100.0  %     100.0  %     100.0  %
Cost of sales                                           64.0         62.8         60.3
Gross profit on sales                                   36.0         37.2         39.7
Selling, general and administrative expenses            27.0         30.2   

29.0

Restructuring, impairment of assets and other charges 0.3 (0.4)

1.0

Goodwill and intangible asset impairment charge            -         11.0            -
Operating income (loss)                                  8.7         (3.6)         9.7
Interest/Other expense                                   2.7          3.6          2.2
Income (loss) before income tax expense                  6.0         (7.2)         7.5
Income tax expense (benefit)                             1.4         (0.7)         1.7
Net income (loss)                                        4.6  %      (6.5) %       5.8  %



Consolidated Net Sales

Below we provide information regarding our consolidated net sales and analyze
those results for each of the last three fiscal years. Fiscal year 2021 included
52 weeks, fiscal year 2020 included 53 weeks, and fiscal year 2019 included 52
weeks.

                                                          Fiscal Year                                            Percentage Change
                                         2021                 2020                 2019             2021 compared with        2020 compared with
                                                         (in thousands)                                    2020                      2019
Consolidated net sales              $ 1,200,398          $ 1,103,262          $ 1,343,029                        8.8  %                  (17.9) %



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Consolidated net sales for 2021 compared with 2020

For 2021, our consolidated net sales increased $97.1 million (8.8%) compared to
2020, comprised of higher sales volumes (approximately 5.1%) and higher prices
(approximately 3.7%). Fluctuations in currency exchange rates had a positive
impact on our year-over-year consolidated sales comparison of approximately
$23.9 million, meaning that if currency levels had remained constant year over
year our 2021 sales would have been lower by this amount. On a market segment
basis, the sales increase was most significant in non-corporate office market
segments including retail, education and healthcare. See the segment results
discussion below for additional information on market segments.

Consolidated turnover 2020 compared to 2019

For 2020, our consolidated net sales decreased $239.8 million (17.9%) compared
to 2019, primarily due to the impacts of COVID-19 resulting in lower sales
volumes globally. Fluctuations in currency exchange rates had a positive impact
on our year-over-year sales comparison of approximately $7.1 million, meaning
that if currency levels had remained constant year over year, our 2020 sales
would have been lower by this amount. On a market segment basis, the decrease in
consolidated net sales was primarily in the corporate office, retail,
hospitality and healthcare market segments. See the segment results discussion
below for additional information on market segments.

Consolidated costs and expenses

The following table shows our consolidated cost of sales and selling, general and administrative (“SG&A”) expenses over the past three years:

                                                         Fiscal Year                                            Percentage Change
                                          2021               2020               2019              2021 compared                2020 compared
                                                        (in thousands)                              with 2020                    with 2019
Consolidated cost of sales            $ 767,665          $ 692,688          $ 810,062                       10.8  %                       (14.5) %
Consolidated selling, general and
administrative expenses                 324,315            333,229            389,117                       (2.7) %                       (14.4) %



For 2021, our consolidated costs of sales increased $75.0 million (10.8%)
compared to 2020, primarily due to higher net sales and the continued adverse
impacts of COVID-19. Currency translation had a $16.2 million (2.3%) negative
impact on the year-over-year comparison. In 2021, the impact of COVID-19
continued to challenge our global supply chain which contributed to higher cost
of sales and lower gross profit margins - particularly in the United States. As
a percentage of net sales, our consolidated costs of sales increased to 64.0% in
2021 versus 62.8% in 2020, primarily due to inflationary pressures on raw
materials, freight and labor costs driving an approximately 3.4% increase in
cost of sales as a percentage of net sales compared to the prior year. The
increase in our consolidated cost of sales as a percentage of net sales was
partially offset by productivity efficiencies during the year. Management
believes it is reasonably likely the inflationary pressures experienced in 2021
will continue to some degree in 2022, particularly in the first half of 2022.

For 2020, our consolidated costs of sales decreased $117.4 million (14.5%)
compared with 2019, primarily due to lower net sales. Currency translation had a
$4.7 million (0.6%) negative impact on the year-over-year comparison. As a
percentage of net sales, our consolidated costs of sales increased to 62.8% in
2020 versus 60.3% in 2019, primarily due to changes in fixed cost absorption
driven by lower production volumes due to the impacts of COVID-19.

For 2021, our consolidated SG&A expenses decreased $8.9 million (2.7%) versus
2020. Currency translation had a $5.3 million (1.6%) negative impact on the
year-over-year comparison. Consolidated SG&A expenses were lower in 2021
primarily due to (1) lower legal fees and other related costs of $12.6 million
primarily due to the settlement of the SEC matter in the prior year period, and
(2) lower severance costs of $9.1 million as the prior year included additional
cost reduction initiatives implemented in response to COVID-19 as discussed
above. These decreases were partially offset by higher labor costs of
approximately $11.0 million due to higher performance-based compensation as
target performance measures were achieved in 2021, partially offset by cost
savings from prior year headcount reduction initiatives. As a percentage of net
sales, SG&A expenses decreased to 27.0% in 2021 versus 30.2% in 2020.




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For 2020, our consolidated SG&A expenses decreased $55.9 million (14.4%) versus
2019. Currency translation had a $1.5 million (0.4%) negative impact on the
year-over-year comparison. Consolidated SG&A expenses were lower in 2020
primarily due to (1) lower selling expenses of $54.8 million due to lower net
sales, (2) $7.3 million of payroll expense credits related to COVID-19 wage
support government assistance programs, and (3) $9.2 million lower
performance-based compensation due to stock compensation forfeitures and target
performance measures not being met due to COVID-19. These reductions were
partially offset by $12.9 million of severance expenses due to voluntary and
involuntary separations, and a $5.0 million fine to settle the SEC matter as
referenced in Item 8 Note 18 - "Commitments and Contingencies". As a percentage
of sales, SG&A expenses increased to 30.2% in 2020 versus 29.0% in 2019,
primarily due to lower net sales.

Restructuring plans

On September 8, 2021, the Company committed to a new restructuring plan that
continues to focus on efforts to improve efficiencies and decrease costs across
its worldwide operations. The plan involves a reduction of approximately 188
employees and the closure of the Company's carpet tile manufacturing facility in
Thailand, anticipated to occur at the end of the first quarter of 2022. As a
result of this plan, the Company expects to incur pre-tax restructuring charges
between the third quarter of 2021 and the fourth quarter of 2022 of
approximately $4 million to $5 million. The expected charges are comprised of
severance expenses ($2.2 million), retention bonuses ($0.5 million), and asset
impairment and other charges ($2.0 million). The costs of retention bonuses of
approximately $0.5 million will be recognized through the end of fiscal year
2022 as earned over the requisite service periods. Restructuring charges of
$3.9 million comprised of severance and asset impairment charges were recognized
during the third quarter of 2021.

The Thailand plant closure is expected to result in future cash expenditures of
approximately $3 million to $4 million for payment of the employee severance and
employee retention bonuses and other costs of the shutdown of the Thailand
manufacturing facility, as described above. The Company expects to complete the
restructuring plan in fiscal year 2022 and expects the plan to yield annualized
savings of approximately $1.7 million. A portion of the annualized savings is
expected to be realized on the consolidated statement of operations in fiscal
year 2022, with the remaining portion of the annualized savings expected to be
realized in fiscal year 2023.

On December 23, 2019, the Company committed to a new restructuring plan to
improve efficiencies and decrease costs across its worldwide operations, and
more closely align its operating structure with its business strategy. The plan
involved a reduction of approximately 105 employees and early termination of two
office leases. As a result of this plan, the Company recorded a pre-tax
restructuring charge in the fourth quarter of 2019 of approximately $9.0
million. The charge was comprised of severance expenses ($8.8 million) and lease
exit costs ($0.2 million). The restructuring charge was expected to result in
future cash expenditures of approximately $9.0 million for payment of these
employee severance and lease exit costs. The Company expected the plan to yield
annualized savings of approximately $6.0 million. A portion of the annualized
savings was realized on the consolidated statement of operations in fiscal year
2020, with the remaining portion of the annualized savings realized in fiscal
year 2021.

On December 29, 2018, the Company committed to a new restructuring plan in its
continuing efforts to improve efficiencies and decrease costs across its
worldwide operations, and more closely align its operating structure with its
business strategy. The plan involved (i) a restructuring of its sales and
administrative operations in the United Kingdom, (ii) a reduction of
approximately 200 employees, primarily in the Europe and Asia-Pacific geographic
regions, and (iii) the write-down of certain underutilized and impaired assets
that included information technology assets and obsolete manufacturing
equipment. The restructuring plan was completed at the end of fiscal year 2020.

Good willImpairment of intangible assets and fixed assets

During 2021, we recognized a fixed asset impairment charge of $4.4 million for
projects that were abandoned. During 2020, we recognized a charge of $121.3
million for the impairment of goodwill and certain intangible assets. See Note
12 entitled "Goodwill and Intangible Assets" of Part II, Item 8 of this Annual
Report for additional information. During 2020, we also recognized fixed asset
impairment charges of $5.0 million primarily related to certain FLOR design
center closures and other projects that were abandoned or indefinitely delayed.
These charges are included in selling, general and administrative expenses in
the consolidated statements of operations.


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Interest charges

For 2021, our interest expense increased $0.5 million to $29.7 million, versus
$29.2 million in 2020, primarily due to (1) higher fixed-rate interest expense
on the Senior Notes debt, which replaced variable-rate debt under the Syndicated
Credit Facility, and (2) $4.9 million of deferred losses recognized on
terminated interest rate swaps that were reclassified from accumulated other
comprehensive loss into interest expense during the year. These increases were
partially offset by $60 million of lower outstanding borrowings under the
Syndicated Credit Facility compared to 2020. Our average borrowing rate under
the Syndicated Credit Facility was 1.91% for 2021 compared to 1.89% in 2020.

 For 2020, our interest expense increased $3.6 million to $29.2 million, versus
$25.6 million in 2019, primarily due to (1) a $3.6 million loss on
extinguishment of debt to amend the Syndicated Credit Facility and repay a
portion of outstanding indebtedness thereunder, and (2) a $3.9 million
reclassification from accumulated other comprehensive loss for deferred interest
rate swap losses due to the termination of interest rate swap contracts. These
increases were partially offset by lower average interest rates on our
borrowings under the Syndicated Credit Facility (our average borrowing rate for
2020 was 1.89% compared to 3.27% in 2019) and lower outstanding borrowings under
the Syndicated Credit Facility compared to 2019.

Other expenses

Other expenses decreased $8.4 million during fiscal year 2021 compared to 2020,
primarily due to a $4.2 million write-down of damaged raw material inventory in
2020, which resulted from a fire at a leased storage facility.

Tax

For the year ended January 2, 2022, the Company recorded income tax expense of
$17.4 million on pre-tax income of $72.6 million resulting in an effective tax
rate of 24.0%, as compared to an income tax benefit of $7.5 million on pre-tax
loss of $79.4 million resulting in an effective tax rate of 9.4% for the year
ended January 3, 2021. The effective tax rate for the year ended January 3, 2021
was significantly impacted by a non-deductible goodwill impairment charge and
recognition of income tax benefits related to uncertain tax positions taken in
prior years on discontinued operations. Excluding the impact of the
non-deductible goodwill impairment charge and recognition of income tax benefits
related to uncertain tax positions on discontinued operations, the effective tax
rate was 14.1% for the year ended January 3, 2021. The increase in the effective
tax rate for the year ended January 2, 2022 as compared to the year ended
January 3, 2021 was primarily due to the one-time favorable impacts of amending
prior year tax returns during the period ended January 3, 2021, an increase in
non-deductible employee compensation and an increase in the valuation allowance
on net operating loss and interest carryforwards. This increase was partially
offset by a decrease in non-deductible business expenses.

For the year ended January 3, 2021, the Company recorded an income tax benefit
of $7.5 million on pre-tax loss of $79.4 million resulting in an effective tax
rate of 9.4%. The effective tax rate for this period was significantly impacted
by a non-deductible goodwill impairment charge and recognition of income tax
benefits related to uncertain tax positions taken in prior years on discontinued
operations. Excluding the impact of the non-deductible goodwill impairment
charge and recognition of income tax benefits related to uncertain tax positions
on discontinued operations, the effective tax rate was 14.1% for 2020 compared
to 22.2% in 2019. The decrease in the effective tax rate, excluding the goodwill
impairment charge and recognition of income tax benefits related to uncertain
tax positions on discontinued operations, was primarily due to the favorable
impacts of amending prior year tax returns, retroactive election of the GILTI
High-tax Exclusion in the 2019 tax return and reduction in non-deductible
employee compensation. This decrease was partially offset by the non-deductible
SEC fine.

Segment Results

As discussed above, in fiscal year 2021 the Company determined that it has two
operating and reportable segments - AMS and EAAA. Segment information presented
below for fiscal years 2020 and 2019 have been restated to conform to the new
reportable segment structure. See Note 20 entitled "Segment Information"
included in Item 8 of this Annual Report on Form 10-K for additional
information.


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SMA segment – Net sales and adjusted operating income (“AOI”)

The following table presents AMS segment net sales and AOI for the last three
fiscal years:

                                                        Fiscal Year                                         Percentage Change
                                         2021               2020               2019            2021 compared with        2020 compared with
                                                       (in thousands)                                 2020                      2019

AMS segment net sales                $ 651,216          $ 593,418          $ 757,112                        9.7  %                  (21.6) %
AMS segment AOI(1)                      85,014             89,097            120,921                       (4.6) %                  (26.3) %


(1) Includes allocation of corporate SG&A expenses. Excludes non-recurring items
related to intangible asset impairment charges, restructuring, asset impairment,
severance and other costs. See Note 20 entitled "Segment Information" included
in Item 8 of this Annual Report on Form 10-K for additional information.

AMS segment revenue in 2021 vs. 2020

During 2021, net sales in AMS increased 9.7% versus 2020, comprised of higher
sales volumes and higher prices. On a market segment basis, the AMS sales
increase was most significant in non-corporate office market segments including
healthcare (up 19.1%), retail (up 19.1%) and education (up 18.3%). Sales in the
corporate office market increased 6.8% in 2021 compared to 2020. These increases
were partially offset by decreases in the hospitality (down 38.3%) and public
buildings (down 20%) market segments.

AMS segment revenue in 2020 compared to 2019

During 2020, net sales in AMS decreased 21.6% versus the comparable period in
2019. The AMS sales decrease in 2020 was due primarily to the impacts of
COVID-19 and lower carpet tile sales volumes. On a market segment basis, the
sales decrease in the Americas was most significant in the corporate office
(down 33.8%), retail (down 34.8%), healthcare (down 15.2%) and education (down
8.3%) market segments, partially offset by increases in the residential living
(up 23.8%) and public buildings (up 8.2%) market segments.

AMS AOI for 2021 vs. 2020

AOI in AMS decreased 4.6% during 2021 compared to 2020 primarily due to higher
cost of sales as a result of inflationary pressures on raw materials, freight
and labor costs driving an approximately 3.0% increase in cost of sales as a
percentage of net sales compared to the prior year. The increase in cost of
sales as a percentage of net sales was partially offset by productivity
efficiencies during the year. AOI as a percentage of net sales for fiscal 2021
decreased to 13.1% compared to 15.0% in 2020 due to the global supply chain
pressures discussed above.

AMS AOI for 2020 vs. 2019

AOI in AMS decreased 26.3% during 2020 compared to 2019 primarily due to the
impacts of COVID-19 which resulted in lower sales volumes in 2020. The decrease
in AOI was also partially due to costs related to the closure of the FLOR stores
in 2020.

EAAA segment – Net sales and area of ​​interest

The following table presents EAAA segment net sales and AOI for the last three
fiscal years:

                                                          Fiscal Year                                         Percentage Change
                                           2021               2020               2019            2021 compared with        2020 compared with
                                                         (in thousands)                                 2020                      2019

EAAA segment net sales                 $ 549,182          $ 509,844          $ 585,917                        7.7  %                  (13.0) %
EAAA segment AOI(1)                       37,268             21,403             28,832                       74.1  %                  (25.8) %


(1) Includes allocation of corporate SG&A expenses. Excludes non-recurring items
related to goodwill and intangible asset impairment charges, purchase accounting
amortization, restructuring, asset impairment, severance and other costs. See
Note 20 entitled "Segment Information" included in Item 8 of this Annual Report
on Form 10-K for additional information.


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EAAA segment revenue in 2021 compared to 2020

During 2021, net sales in EAAA increased 7.7% versus 2020, comprised of higher
sales volumes and higher prices. Currency fluctuations had an approximately
$21.5 million (4.2%) positive impact on EAAA's 2021 sales compared to 2020 due
to the strengthening of the Euro, British Pound sterling, Australian dollar and
the Chinese Renminbi against the U.S. dollar. On a market segment basis, the
EAAA sales increase was most significant in non-corporate office market segments
including retail (up 53.8%), public buildings (up 30.2%) and healthcare (up
19.0%). Sales in the corporate office market increased 2.4% in 2021 compared to
2020. These increases were partially offset by a decrease in the education (down
2.6%) market segment.

EAAA segment revenue in 2020 compared to 2019

During 2020, net sales in EAAA decreased 13.0% versus 2019, due primarily to the
impacts of COVID-19 and lower carpet tile sales volumes. Currency fluctuations
had an approximately $7.3 million (1.3%) positive impact on EAAA's fiscal year
2020 sales compared with 2019, due primarily to the strengthening of the Euro
and British Pound sterling against the U.S. dollar. On a market segment basis,
the EAAA sales decrease was most significant in the hospitality (down 40.3%),
corporate office (down 19.1%), public buildings (down 16.0%) and retail (down
12.9%) market segments.

AOI EAAA for 2021 vs. 2020

AOI in EAAA increased 74.1% during 2021 versus 2020. Currency fluctuations had
an approximately $3.1 million (6.4%) positive impact on AOI for 2021. SG&A
expenses as a percentage of net sales decreased to 23.0% in 2021 compared to
24.6% in 2020 due to savings from cost reduction initiatives implemented in the
prior year. AOI as a percentage of net sales increased to 6.8% in 2021 compared
to 4.2% in 2020, due primarily to higher sales as discussed above.

AOI EAAA for 2020 vs. 2019

AOI in EAAA decreased by 25.8% in 2020 compared to 2019, mainly due to the impacts of COVID-19 which led to lower sales volumes in 2020. Currency fluctuations impacted of about $0.9 million (1.4%) positive impact on AOI for 2020.

Cash and capital resources

General

In our business, we require cash and other liquid assets primarily to purchase
raw materials and to pay other manufacturing costs, in addition to funding
normal course SG&A expenses, anticipated capital expenditures, interest expense
and potential special projects. We generate our cash and other liquidity
requirements primarily from our operations and from borrowings or letters of
credit under our Syndicated Credit Facility and Senior Notes discussed below. We
anticipate that our liquidity is sufficient to meet our obligations for the next
12 months and we expect to generate sufficient cash to meet our long-term
obligations.

Below is a summary of our significant cash requirements for future periods:

                                                                                       Payments Due by Period
                                         Total Payments          Less than                                                More than
                                              Due                  1 year           1-3 years          3-5 years           5 years
                                                                               (in thousands)
Long-term debt obligations             $       525,131          $  15,002   

$30,004 $180,125 $300,000
Operating lease obligations and financing

                                    130,820             19,802             28,625             21,726             60,667
Expected interest payments                     132,949             21,941             42,756             35,252             33,000
Purchase obligations                            17,787             16,531              1,193                 63                  -
Pension cash obligations                        33,917              5,970              5,973              6,211             15,763
Total                                  $       840,604          $  79,246          $ 108,551          $ 243,377          $ 409,430




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Historically, we use more cash in the first half of the fiscal year, as we pay
insurance premiums, taxes and incentive compensation and build up inventory in
preparation for the holiday/vacation season of our international operations. As
outlined in the table above, we have approximately $79.2 million in material
contractual cash obligations due by the end of fiscal year 2022, which includes,
among other things, scheduled debt repayments under the Syndicated Credit
Facility, pension contributions, interest payments on our debt and lease
commitments. Our long-term debt obligations include the contractually scheduled
principal repayment of our term loan borrowings under the Syndicated Credit
Facility, which matures in 2025, and $300 million on our Senior Notes due in
2028. Operating and finance lease obligations consist of undiscounted lease
payments due over the term of the lease. Expected interest payments are those
associated with borrowings under the Syndicated Credit Facility and Senior Notes
consistent with our contractually scheduled principal repayments. Our purchase
obligations are for non-cancellable agreements primarily for raw material
purchases and capital expenditures. Our current and long-term pension
obligations include contributions and expected benefit payments to be paid by
the Company related to certain defined benefit pension plans and excludes the
expected benefit payments for two of our funded foreign defined benefit plans as
these obligations will be paid by the plans over the next ten years.

Based on current interest rates and debt levels, we expect our aggregate
interest expense for 2022 to be between $27 million and $28 million. We estimate
aggregate capital expenditures in 2022 to be approximately $30 million, although
we are not committed to these amounts.

Liquidity

At January 2, 2022, we had $97.3 million in cash. Approximately $1.7 million of
this cash was located in the U.S., and the remaining $95.6 million was located
outside of the U.S. The cash located outside of the U.S. is indefinitely
reinvested in the respective jurisdictions (except as identified below). We
believe that our strategic plans and business needs, particularly for working
capital needs and capital expenditure requirements in Europe, Asia, and
Australia, support our assertion that a portion of our cash in foreign locations
will be reinvested and remittance will be postponed indefinitely. Of the $95.6
million of cash in foreign jurisdictions, approximately $12.9 million represents
earnings which we have determined are not permanently reinvested, and as such we
have provided for foreign withholding and U.S. state income taxes on these
amounts in accordance with applicable accounting standards.

As of January 2, 2022, we had $225.1 million of borrowings outstanding under our
Syndicated Credit Facility, of which $217.6 million were term loan borrowings
and $7.5 million were revolving loan borrowings. Additionally, $1.6 million in
letters of credit were outstanding under the Syndicated Credit Facility at the
end of fiscal year 2021. As of January 2, 2022, we had additional borrowing
capacity of $290.9 million under the Syndicated Credit Facility and $6.0 million
of additional borrowing capacity under our other credit facilities in place at
other non-U.S. subsidiaries.

On November 17, 2020, we issued $300 million aggregate principal amount of 5.50%
Senior Notes due 2028 (the "Senior Notes"), which are discussed further below.
As of January 2, 2022, we had $300.0 million of Senior Notes outstanding.

 It is important for you to consider that we have a significant amount of
indebtedness. Our Syndicated Credit Facility matures in November of 2025 and the
Senior Notes, as discussed below, mature in December 2028. We cannot assure you
that we will be able to renegotiate or refinance any of our debt on commercially
reasonable terms, or at all. If we are unable to refinance our debt or obtain
new financing, we would have to consider other options, such as selling assets
to meet our debt service obligations and other liquidity needs, or using cash,
if available, that would have been used for other business purposes.

It is also important for you to consider that borrowings under our Syndicated
Credit Facility comprise a substantial portion of our indebtedness, and that
these borrowings are based on variable interest rates (as described below) that
expose the Company to the risk that short-term interest rates may increase.
During 2020, we entered into fixed rate Senior Notes (as described below) which
reduced the amount of indebtedness subject to interest rate risk. In the fourth
quarter of 2020, we terminated our interest rate swaps that were previously
being used to fix a portion of our variable rate debt. For information regarding
the current variable interest rates of these borrowings, the potential impact on
our interest expense from hypothetical increases in short term interest rates,
and the interest rate swap transaction, please see the discussion in Item 7A of
this Report.

We are not party to any material off-balance sheet arrangements.

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Analysis of Cash Flows

The following table presents a summary of cash flows for fiscal years 2021, 2020
and 2019:

                                                                 Fiscal Year
                                                      2021          2020           2019
                                                                (in thousands)
Net cash provided by (used in):
Operating activities                               $ 86,689      $ 119,070      $ 141,768
Investing activities                                (28,071)       (61,689)       (74,222)
Financing activities                                (60,858)       (42,715)       (66,677)
Effect of exchange rate changes on cash              (3,561)         7,086  

(557)

Net change in cash and cash equivalents              (5,801)        21,752  

312

Cash and cash equivalents at beginning of period 103,053 81,301

80,989

Cash and cash equivalents at the end of the period $97,252 $103,053

$81,301

We ended 2021 with $97.3 million in cash, a decrease of $5.8 million during the year. The decrease is mainly explained by the following items:

•Cash provided by operating activities was $86.7 million for 2021, which
represents a decrease of $32.4 million compared to 2020. The decrease was
primarily due to a greater use of cash for working capital during 2021.
Specifically, higher accounts receivable and inventories primarily attributable
to increased customer demand in 2021 were partially offset by increases in
accounts payable and accrued expenses that contributed positively to the change
in working capital. Lower variable compensation payouts in 2021 related to 2020
performance had a positive impact on cash provided by operating activities,
partially offsetting the decrease from changes in working capital.

•Cash used in investing activities was $28.1 million for 2021, which represents
a decrease of $33.6 million from 2020. The decrease was primarily due to lower
capital expenditures compared to 2020 as two major capital projects were
substantially completed in the prior year.

•Cash used in financing activities was $60.9 million for 2021, which represents
an increase of $18.1 million compared to 2020. In 2021, we repaid approximately
$60 million in term loan borrowings which contributed to the increase in cash
used in financing activities (compared with 2020, when repayments on term loan
borrowings were largely funded with the proceeds from the issuance of the $300
million Senior Notes).

We ended 2020 with $103.1 million in cash, an increase of $21.8 million during the year. The increase is mainly explained by the following items:

•Cash provided by operating activities was $119.1 million for 2020, which
represents a decrease of $22.7 million compared to 2019. The decrease was
primarily due to lower net income due to the impacts of COVID-19, offset by
working capital sources of cash, specifically a decrease in accounts receivable
of $40.1 million, lower inventories of $38.7 million and lower prepaid and other
expenses of $13.0 million. These sources of cash were offset by a $60.9 million
use of cash in accounts payable and accrued expenses to fund normal operations.

•Cash used in investing activities was $61.7 million for 2020, which represents
a decrease of $12.5 million from 2019. The decrease was primarily due to lower
capital expenditures compared to 2019 due to fewer project demands and lower
capital investment as a result of the impacts of COVID-19.

•Cash used in financing activities was $42.7 million for 2020, which represents
a decrease of $24.0 million compared to 2019. Financing activities for 2020
include higher loan borrowings of $320.0 million primarily due to the issuance
of $300 million of Senior Notes, offset by (1) higher repayments of revolving
and term loan borrowings as the proceeds from the issuance of the Senior Notes
were used to repay $290.7 million of outstanding term and revolving loan
borrowings under the Syndicated Credit Facility, and (2) a decrease in dividends
paid of $9.8 million.


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We ended 2019 with $81.3 million in cash, an increase of $0.3 million during the
year. The most significant uses of cash in 2019 were (1) repayments on our
Syndicated Credit Facility of $111.7 million offset by borrowings of $90
million, (2) capital expenditures of $74.6 million, (3) $25.2 million to
repurchase 1.6 million shares of the Company's outstanding common stock, and (3)
dividend payments of $15.4 million. These uses were offset by cash flow from
operations of $141.8 million, primarily generated from (1) net income of $79.2
million, (2) $19.4 million for increases in accounts payable and accrued
expenses, and (3) $2.6 million due to a decrease in inventories. These sources
of cash were reduced by working capital uses of (1) $9.7 million due to
increases in prepaid expenses, and (2) $0.9 million due to increases in accounts
receivable.

We believe that our liquidity position will provide sufficient funds to meet our current commitments and our other cash requirements for the foreseeable future.

Syndicated credit facility

In the normal course of business, in addition to using our available cash, we
fund our operations by borrowing under our Syndicated Credit Facility (the
"Facility"). At January 2, 2022, the Facility provided the Company and certain
of its subsidiaries with a multicurrency revolving loan facility up to $300
million, as well as other U.S. denominated and multicurrency term
loans. Material terms under the Facility are discussed below. For additional
information please see Note 9 entitled "Long-Term Debt" in Item 8 of this
Report.

Interest Rates and Fees

Under the Facility, interest on base rate loans is charged at varying rates
computed by applying a margin ranging from 0.25% to 2.00%, depending on the
Company's consolidated net leverage ratio (as defined in the Facility agreement)
as of the most recently completed fiscal quarter. Interest on Eurocurrency-based
loans and fees for letters of credit are charged at varying rates computed by
applying a margin ranging from 1.25% to 3.00% over the applicable Eurocurrency
rate, depending on the Company's consolidated net leverage ratio as of the most
recently completed fiscal quarter. In addition, the Company pays a commitment
fee ranging from 0.20% to 0.40% per annum (depending on the Company's
consolidated net leverage ratio as of the most recently completed fiscal
quarter) on the unused portion of the Facility.

LIBOR Transition

The U.K. Financial Conduct Authority (the "FCA"), which regulates the London
interbank offered rate ("LIBOR"), announced that the FCA will no longer persuade
or compel banks to submit rates for the calculation of LIBOR after 2021. This
announcement indicated that the continuation of LIBOR on the current basis was
not guaranteed after 2021, and LIBOR may be discontinued or modified.
Additionally, certain U.S. dollar LIBOR rates will be discontinued by June 2023.
The Federal Reserve Bank of New York began publishing the Secured Overnight
Financing Rate ("SOFR") in April 2018 as an alternative for LIBOR. SOFR is a
broad measure of the cost of borrowing cash overnight collateralized by U.S.
Treasury securities. We have exposure to LIBOR-based financial instruments under
the Facility, which has variable (or floating) interest rates based on LIBOR.
The Facility allows for the use of an alternative benchmark rate if LIBOR is no
longer available.

On December 9, 2021, we entered into the fourth amendment to the Facility to
replace the LIBOR interest rate benchmark applicable to loans and other
extensions of credit under the Facility denominated in British Pounds sterling
and Euros with specified successor benchmark rates, to amend certain provisions
related to the implementation, use and administration of successor benchmark
rates, and to set forth certain borrowing requirements in the event LIBOR and
other successor rates become unavailable.

pacts

The Facility contains standard and customary covenants for agreements of this
type, including various reporting, affirmative and negative covenants. Among
other things, these covenants limit our ability to:

•create or incur liens on assets;
•make acquisitions of or investments in businesses (in excess of certain
specified amounts);
•engage in any material line of business substantially different from the
Company's current lines of business;
•incur indebtedness or contingent obligations;
•sell or dispose of assets (in excess of certain specified amounts);
•pay dividends or repurchase our stock (in excess of certain specified amounts);
•repay other indebtedness prior to maturity unless we meet certain conditions;
and
•enter into sale and leaseback transactions.
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Table of Contents The facility also requires us to comply with the following financial covenants at the end of each fiscal quarter, based on our consolidated results for the year then ended:

• Consolidated net secured leverage ratio: must not exceed 3.00:1.00. • Consolidated interest coverage ratio: must not be less than 2.25:1.00.

Event of default

If we breach or fail to perform any of the affirmative or negative covenants
under the Facility, or if other specified events occur (such as a bankruptcy or
similar event or a change of control of Interface, Inc. or certain subsidiaries,
or if we breach or fail to perform any covenant or agreement contained in any
instrument relating to any of our other indebtedness exceeding $20 million),
after giving effect to any applicable notice and right to cure provisions, an
event of default will exist. If an event of default exists and is continuing,
the lenders' Administrative Agent may, and upon the written request of a
specified percentage of the lender group shall:

•declare all commitments of the lenders under the facility terminated;
•declare all amounts outstanding or accrued thereunder immediately due and
payable; and
•exercise other rights and remedies available to them under the agreement and
applicable law.

Collateral

Pursuant to a Second Amended and Restated Security and Pledge Agreement, the
Facility is secured by substantially all of the assets of Interface, Inc. and
our domestic subsidiaries (subject to exceptions for certain immaterial
subsidiaries), including all of the stock of our domestic subsidiaries and up to
65% of the stock of our first-tier material foreign subsidiaries. If an event of
default occurs under the Facility, the lenders' Administrative Agent may, upon
the request of a specified percentage of lenders, exercise remedies with respect
to the collateral, including, in some instances, foreclosing mortgages on real
estate assets, taking possession of or selling personal property assets,
collecting accounts receivables, or exercising proxies to take control of the
pledged stock of domestic and first-tier material foreign subsidiaries.

 As of January 2, 2022, we had outstanding $217.6 million of term loan borrowing
and $7.5 million of revolving loan borrowings under the Facility, and had $1.6
million in letters of credit outstanding under the Facility. As of January 2,
2022, the weighted average interest rate on borrowings outstanding under the
Facility was 1.91%.

Under the Facility, we are required to make quarterly amortization payments of
the term loan borrowings. The amortization payments are due on the last day of
the calendar quarter.

We are currently in compliance with all of the covenants under the facility and expect that we will continue to be in compliance with the covenants for the foreseeable future.

In the fourth quarter of 2020, we terminated our interest rate swaps and paid
approximately $13 million to terminate the swap agreements. For additional
information on interest rates, please see Item 7A and Note 9 entitled "Long-Term
Debt" in Item 8 of this Report.

Senior Notes

On November 17, 2020, the Company issued $300 million aggregate principal amount
of 5.50% Senior Notes due 2028. The Senior Notes bear an interest rate at 5.50%
per annum and mature on December 1, 2028. Interest is paid semi-annually on June
1 and December 1 of each year, beginning on June 1, 2021. The Company used the
net proceeds to repay $269.7 million of outstanding term loan borrowings and
$21.0 million of outstanding revolving loan borrowings under the Facility. In
connection with the issuance of the Senior Notes, the Company recorded $5.7
million of debt issuance costs. These debt issuance costs were recorded as a
reduction of long-term debt in the consolidated balance sheets and will be
amortized over the life of the outstanding debt.


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The Senior Notes are unsecured and are guaranteed, jointly and severally, by
each of the Company's material domestic subsidiaries, all of which also
guarantee the obligations of the Company under its existing Facility. The
Company's foreign subsidiaries and certain non-material domestic subsidiaries
are considered non-guarantors. Net sales for the non-guarantor subsidiaries were
approximately $594 million for fiscal year 2021 and $548 million for fiscal year
2020. Total indebtedness of the non-guarantor subsidiaries was approximately $45
million as of January 2, 2022, and $88 million as of January 3, 2021. The Senior
Notes can be redeemed on or after December 1, 2023, at specified redemption
prices. See Note 9 entitled "Long-Term Debt" in Item 8 of this report for
additional information.

Forward-looking statement on the impact of COVID-19

While we are aggressively managing our response to the COVID-19 pandemic, its
impacts on our full fiscal year 2022 results and beyond are uncertain. We
believe the most significant elements of uncertainty are (1) the intensity and
duration of the impact on construction, renovation, and remodeling; (2)
corporate, government, and consumer spending levels and sentiment; (3) the
ability of our sales channels, supply chain, manufacturing, and distribution
partners to continue operating through disruptions; and (4) the severity of
global supply chain disruptions and their effects on inflation, labor shortages,
raw material shortages, and other factors that disrupt our supply chain and
manufacturing facilities. Any or all of these factors could negatively impact
our financial position, results of operations, cash flows, and outlook. As the
impact of the COVID-19 pandemic continues to affect companies with global
operations, specifically as it relates to the global supply chain, we anticipate
that, at a minimum, our business and results in the first half of 2022 will
continue to be affected, and the timeline and pace of recovery is uncertain.

Cash flows from operations, cash and cash equivalents, and other sources of
liquidity are expected to be available and sufficient to meet foreseeable cash
requirements. However, the Company's cash flows from operations can be affected
by numerous factors including the uncertainty of COVID-19 and its impact on
global operations, raw material availability and cost, demand for our products,
and other factors described in "Risk Factors" included in Part I, Item 1A of
this Annual Report on Form 10-K.


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Critical Accounting Policies and Estimates

The policies and estimates discussed below are considered by management to be
critical to an understanding of our consolidated financial statements because
their application places the most significant demands on management's judgment,
with financial reporting results relying on estimations about the effects of
matters that are inherently uncertain. Specific risks for these critical
accounting policies are described in the following paragraphs. For all of these
policies, management cautions that future events may not develop as forecasted,
and the best estimates routinely require adjustment.

Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment
at the asset group level whenever events or changes in circumstances indicate
that the carrying value may not be recoverable. If the sum of the expected
future undiscounted cash flow is less than the carrying amount of the asset, an
impairment is indicated. A loss is then recognized for the difference, if any,
between the fair value of the asset (as estimated by management using its best
judgment) and the carrying value of the asset. Management's judgement in
estimating the undiscounted cash flows based on market conditions and trends,
and other industry specific metrics used in determining the fair value is
subject to uncertainty. If actual market value is less favorable than that
estimated by management, additional write-downs may be required.

Deferred Income Tax Assets and Liabilities. The carrying values of deferred
income tax assets and liabilities reflect the application of our income tax
accounting policies in accordance with applicable accounting standards and are
based on management's assumptions and estimates regarding future operating
results and levels of taxable income, as well as management's judgment regarding
the interpretation of the provisions of applicable accounting standards. The
carrying values of liabilities for income taxes currently payable are based on
management's interpretations of applicable tax laws and incorporate management's
assumptions and judgments regarding the use of tax planning strategies in
various taxing jurisdictions. The use of different estimates, assumptions and
judgments in connection with accounting for income taxes may result in
materially different carrying values of income tax assets and liabilities and
results of operations.

We evaluate the recoverability of these deferred tax assets by assessing the
adequacy of future expected taxable income from all sources, including reversal
of taxable temporary differences, forecasted operating earnings and available
tax planning strategies. These sources of income inherently rely heavily on
estimates. We use our historical experience and our short and long-term business
forecasts to provide insight. Further, our global business portfolio gives us
the opportunity to employ various prudent and feasible tax planning strategies
to facilitate the recoverability of future deductions. To the extent we do not
consider it more likely than not that a deferred tax asset will be recovered, a
valuation allowance is established. As of January 2, 2022, and January 3, 2021,
we had state net operating loss carryforwards of $153.0 million and $142.7
million, respectively. Certain of these state net operating loss carryforwards
are reserved with a valuation allowance because, based on the available
evidence, we believe it is more likely than not that we would not be able to
utilize those deferred tax assets in the future. The remaining year-end 2021
amounts are expected to be fully recoverable within the applicable statutory
expiration periods. If the actual amounts of taxable income differ from our
estimates, the amount of our valuation allowance could be materially impacted.

Goodwill. Prior to the adoption of Accounting Standards Update ("ASU") 2017-04
"Intangibles-Goodwill and Other", we tested goodwill for impairment at least
annually using a two-step approach. In the first step of this approach, we
prepared valuations of reporting units, using both a market comparable approach
and an income approach, and those valuations were compared with the respective
book values of the reporting units to determine whether any goodwill impairment
existed. In preparing the valuations, past, present and expected future
performance was considered. If impairment was indicated in this first step of
the test, a step two valuation approach was performed. The step two valuation
approach compared the implied fair value of goodwill to the book value of
goodwill. The implied fair value of goodwill was determined by allocating the
estimated fair value of the reporting unit to the assets and liabilities of the
reporting unit, including both recognized and unrecognized intangible assets, in
the same manner as goodwill is determined in a business combination under
applicable accounting standards. After completion of this step two test, a loss
was recognized for the difference, if any, between the fair value of the
goodwill associated with the reporting unit and the book value of that goodwill.

 On December 30, 2019, the Company adopted ASU 2017-04, "Intangibles - Goodwill
and Other," that provides for the elimination of Step 2 from the goodwill
impairment test described above. Under the new guidance, impairment charges are
recognized to the extent the carrying amount of a reporting unit exceeds its
fair value with certain limitations.


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In accordance with applicable accounting standards, the Company tests goodwill
for impairment annually and between annual tests if an event occurs or
circumstances change that would more likely than not reduce the fair value of a
reporting unit below its carrying amount. Management's assessment of whether a
triggering event has occurred and the development of any forecasts to be used in
the fair value determination are subject to judgement. During the fourth
quarters of 2021, 2020 and 2019, we performed the annual goodwill impairment
test. We perform this test at the reporting unit level. For our reporting units
which carried a goodwill balance as of January 2, 2022, no impairment of
goodwill was indicated. As of January 2, 2022, if our estimates of the fair
value of our reporting units were 10% lower, we believe no additional goodwill
impairment would have existed. However, the full extent of the future impact of
COVID-19 on the Company's operations is uncertain, and a prolonged COVID-19
pandemic could result in additional impairment of goodwill. If the actual fair
value of the goodwill is determined to be less than that estimated, an
additional write-down may be required.

Inventories. We determine the value of inventories using the lower of cost or
net realizable value. We write down inventories for the difference between the
carrying value of the inventories and their net realizable value. If actual
market conditions are less favorable than those projected by management,
additional write-downs may be required.

Management's judgement in estimating our reserves for inventory obsolescence is
based on continuous examination of our inventories to determine if there are
indicators that carrying values exceed net realizable values. Experience has
shown that significant indicators that could require the need for additional
inventory write-downs are the age of the inventory, the length of its product
life cycles, anticipated demand for our products and current economic
conditions. While we believe that adequate write-downs for inventory
obsolescence have been made in the consolidated financial statements, consumer
tastes and preferences will continue to change and we could experience
additional inventory write-downs in the future. Our inventory reserve on
January 2, 2022 and January 3, 2021, was $27.1 million and $35.0 million,
respectively. To the extent that actual obsolescence of our inventory differs
from our estimate by 10%, our 2021 net income would be higher or lower by
approximately $2.1 million, on an after-tax basis.

Pension Benefits. Net pension expense recorded is based on, among other things,
assumptions about the discount rate, estimated return on plan assets and salary
increases. While management believes these assumptions are reasonable, changes
in these and other factors and differences between actual and assumed changes in
the present value of liabilities or assets of our plans above certain thresholds
could cause net annual expense to increase or decrease materially from year to
year. The actuarial assumptions used in our salary continuation plan and our
foreign defined benefit plans reporting are reviewed periodically and compared
with external benchmarks to ensure that they appropriately account for our
future pension benefit obligation. The expected long-term rate of return on plan
assets assumption is based on weighted average expected returns for each asset
class. Expected returns reflect a combination of historical performance analysis
and the forward-looking views of the financial markets, and include input from
actuaries, investment service firms and investment managers. The table below
represents the changes to the projected benefit obligation as a result of
changes in discount rate assumptions:

                                                                       Increase (Decrease) in
                                                                         Projected Benefit
Foreign Defined Benefit Plans                                                Obligation
                                                                           (in millions)
1% increase in actuarial assumption for discount rate                  $    

(47.1)

1% decrease in actuarial assumption for discount rate                                 60.2



                                                                        Increase (Decrease) in
                                                                           Projected Benefit
Domestic Salary Continuation Plan                                           

Obligation

                                                                             (in millions)
1% increase in actuarial assumption for discount rate                   $               (3.0)
1% decrease in actuarial assumption for discount rate                                    3.6




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Allowances for Expected Credit Losses. We maintain allowances for expected
credit losses resulting from the inability of customers to make required
payments. Estimating the amount of future expected losses requires us to
consider historical losses from our customers, as well as current market
conditions and future forecasts of our customers' ability to make payments for
goods and services. By its nature, such an estimate is highly subjective, and it
is possible that the amount of accounts receivable that we are unable to collect
may be different than the amount initially estimated. Our allowance for expected
credit losses on January 2, 2022 and January 3, 2021, was $5.0 million and $6.6
million, respectively. To the extent the actual collectability of our accounts
receivable differs from our estimates by 10%, our 2021 net income would be
higher or lower by approximately $0.4 million, on an after-tax basis, depending
on whether the actual collectability was better or worse, respectively, than the
estimated allowance.

Product Warranties. We typically provide limited warranties with respect to
certain attributes of our carpet products (for example, warranties regarding
excessive surface wear, edge ravel and static electricity) for periods ranging
from ten to twenty years, depending on the particular carpet product and the
environment in which the product is to be installed. Similar limited warranties
are provided on certain attributes of our rubber and LVT products, typically for
a period of 5 to 15 years. We typically warrant that any services performed will
be free from defects in workmanship for a period of one year following
completion. In the event of a breach of warranty, the remedy typically is
limited to repair of the problem or replacement of the affected product. We
record a provision related to warranty costs based on historical experience and
future expectations and periodically adjust these provisions to reflect changes
in actual experience. Our warranty and sales allowance reserve on January 2,
2022 and January 3, 2021, was $2.7 million and $3.2 million, respectively.
Actual warranty expense incurred could vary significantly from amounts that we
estimate. To the extent the actual warranty expense differs from our estimates
by 10%, our 2021 net income would be higher or lower by approximately $0.2
million, on an after-tax basis, depending on whether the actual expense is lower
or higher, respectively, than the estimated provision.

Recent accounting pronouncements

Please see Note 2 “Recent Accounting Pronouncements” in Section 8 of this report for a discussion of these sections.

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Contents

© Edgar Online, source Previews

As countries begin to lift their pandemic restrictions and business leaders look to post-COVID-19 business models, it’s important to ask yourself if the investments you made in 2020 (or before) still have one direction. Repricing these investments can free up cash and enable investments in areas that generate long-term value.

Return on investment (ROIC) is a metric that brings clarity to these conversations. ROIC measures the amount of gain realized on the capital invested relative to the cost of the investment. The metric gives an organization the ability to track how well it is using its money to generate returns. Return on investment can be calculated by dividing an organization’s after-tax net operating income by the amount of capital invested and should be expressed as a percentage.

APQC finds that the top performers on this measure (those in the 75th percentile) see a return of 12.8% or more on their invested capital. That’s nearly double the return of underperformers (those in the 25th percentile), who see a 7% return on their invested capital.

These numbers represent a cross-industry view of APQC benchmarking data for ROI. It’s important to compare this metric within your industry, as ROI can vary significantly from industry to industry. Healthcare organizations such as hospitals have much lower profit margins and may not see as much return on invested capital compared to a software company. Regardless of the industry, a higher percentage is always better for this metric.

Increase return on investment

The primary way to improve ROI is to ensure that investments are aligned with the organization’s strategy. While this alignment should occur at least once a year during strategic planning, many organizations may need to revisit these conversations more frequently to account for the changing COVID-19 landscape.

For example, now is the time to rethink real estate footprints. If you have real estate-related investments but are moving towards a hybrid workforce model, you may be able to reduce those investments.

Performing well on ROIC means investing more efficiently. In some cases, this may mean spending more money up front on new software or equipment, rather than continuing to maintain older equipment that is rapidly becoming obsolete.

Investing more efficiently also means reducing certain investments. Plan thoroughly, thoughtfully, and collaboratively with your team to understand the investments you really need to generate a return, because every investment has a point of diminishing return. If your $10 million expansion can be an $8 million expansion and still get the same returns, you’ve just freed up money to invest elsewhere.

Once you’ve made investments, it can be difficult to isolate the returns. Some investments don’t pay off or don’t pay off right away. Investments in capital assets such as new equipment ultimately generate cost savings as these investments help prevent machine downtime and other problems. Customers won’t necessarily choose you over your competitor because you’ve just installed new self-service payment terminals. But they might choose your competitor over you if your self-checkout kiosks are down and customers have to wait in long lines. These investments are just as important as those that generate more visible returns.

An emerging post-pandemic business environment may require new investments or scale back older investments that no longer make sense. Review your investments with your team to ensure invested capital aligns with business strategy in 2022 and beyond.

Perry D. Wiggins, CPA, is chief financial officer, secretary, and treasurer of APQC, a nonprofit benchmarking and best practices research organization based in Houston, Texas.

NEW YORK, February 17, 2022 /PRNewswire/ — Blue Owl Capital Inc. (“Blue Owl”) (NYSE: OWL), a leading alternative asset manager, has hired Pak Seng Lai as Managing Director and Head of Private Wealth Distribution in APAC. Lai joined in January. In this role, Lai will spearhead the expansion of Blue Owl’s private banking business into APAC markets. Lai will be located in the cabinet hong kong office and will report to the CEO of Blue Owl Securities Derek O’Leary.

“Pak-Seng brings more than two decades of fundraising and portfolio building experience in global private markets,” O’Leary said. “Asia has a growing demographic of high net worth investors seeking access to alternative investments, and Pak-Seng’s deep expertise in the region will be invaluable in helping our private wealth business meet this demand.”

Blue Owl’s private banking business is focused on providing high net worth individuals access to the same market-leading products it offers to institutional clients. The firm has well-established relationships with over 85 private wealth management platforms, positioning the business to accelerate business growth with its push into Asia.

“I am thrilled to join Blue Owl and help bring its private wealth management business to APAC,” said Lai. “Blue Owl has established itself in the rapidly growing alternatives market and has a reputation for providing innovative capital solutions to sophisticated investors. Recently, the demand for alternative products globally has increased significantly and I believe Blue Owl is well positioned to provide access to these solutions for private wealth investors and advisors.”

Previously, Lai was responsible for private markets for Asia Pacific at UBS AG where he advised on private equity investments and portfolio construction for the company in the region. Prior to UBS, Lai held various senior positions at global alternative asset managers including HQ Capital and Schroder Adveq. He has also held positions at private equity firms 3W Partners Capital, Vision Knight Capital and Transpac Capital.

In December 2021Blue Owl Acquired hong kong-based in Ascentium to further establish its presence in Asia-Pacific. The company plans to expand its team to around 20 people by the end of the second quarter.

About Blue Owl Capital Inc.

Blue Owl is a global alternative asset manager with $94.5 billion of assets under management at December 31, 2021. Anchored by a strong permanent capital base, the firm deploys private capital across direct lending, GP solutions and real estate strategies on behalf of institutional and private management clients. Blue Owl’s flexible and consultative approach helps position the company as a partner of choice for businesses seeking capital solutions to support their sustained growth. The firm’s management team is comprised of seasoned investment professionals with over 25 years of experience building alternative investment businesses. Blue Owl employs over 350 people in nine offices around the world. For more information, visit us at www.blueowl.com.

Contact Investor

Ann Dai

Head of Investor Relations

Blueowlir@blueowl.com

Media Contact

Prosek Partners

David Wells / Nick Theccanat

Pro-blueowl@prosek.com

See original content to download multimedia: https://www.prnewswire.com/news-releases/blue-owl-capital-hires-pak-seng-lai-as-head-of-private-wealth-distribution-in -apac-301485291.html

SOURCE Blue Owl Capital

The central square

(The Center Square) – Dave Clark, the global CEO of Amazon, moved from the Seattle area to Dallas last fall, according to multiple news outlets.

The move came months before a new capital gains tax took effect in Washington state. The new law, which is fought in court, began on January 1. If maintained, the measure would levy a 7% capital gains tax on income over $250,000 a year from the sale of stocks and bonds.

Clark and his wife sold their 8,500 square foot home in Medina, a Seattle suburb, for $14.5 million last September, according to Business Intern. This is more than double the amount they paid four years ago.

Clark has about $42 million worth of Amazon stock.

Joan Eleazer, a Dallas real estate agent, told Business Insider that Clark and his wife looked at several expensive homes she listed before buying one in the Highland Park neighborhood of Dallas. Realtor.com reports that the median home price in Highland Park is $2.3 million. This is not the first such action by a wealthy ruler.

Amazon founder and executive chairman Jeff Bezos sold nearly $8.6 billion of the company’s stock last year in multiple deals. He also owns a 30,000-acre home and ranch in Van Horn, Texas, southeast of El Paso, near his space company Blue Origin.

In 2020, Tesla Founder and CEO Elon Musk moved from California to Texas, which reportedly saved him billions of dollars in California capital gains tax.

Satya Nadella, CEO of Microsoft sold just over half his stock in the company, worth nearly $285 million, late last November, a month before Washington’s capital gains tax kicked in. He still owns some 830,000 shares worth about $280 million.

A Microsoft spokesperson told the Wall Street Journal at the time that Nadella made the sale “for reasons of personal financial planning and diversification.”

A decision on the Washington tax lawsuit is expected late next week, according to Douglas County Superior Court Judge Brian Huber.

Opponents say the tax is unconstitutional because it does not tax income at a flat, uniform rate, and is essentially a progressive income tax since it charges a group of people high income while exempting others.

Washington State Attorney General Bob Ferguson, arguing in defense of the law, says it is an excise tax. Regardless of Huber’s decision, the lawsuit is expected to be appealed to the Washington State Supreme Court.

1

While Bitcoiners often advertise the cryptocurrency as anti-inflationary “digital gold,” Bank of America says it trades like nothing like it.

A recent report from the company indicates that the crypto asset is moving much more similarly to risky assets such as stocks and reached unprecedented high correlations with the S&P 500 at the end of January.

High correlation with risky assets

According to the research note – titled “Global Cryptocurrencies and Digital Assets” –Bitcoin has been trading as a risk asset since July last year. This was around the same time that the price of BTC was showing signs of significant recovery after a 50% price crash in May 2021.

Risky assets are characterized by high volatility. Stocks, real estate, and currencies all fall into this category.

“Correlations as of January 31 between bitcoin and the S&P 500 (SPX) and between bitcoin and the Nasdaq 100 (QQQ) hit all-time highs and the 99.73 percentile respectively,” reads the report. Meanwhile, the asset has maintained a close to zero correlation with gold during this period. Bitcoin is often compared to gold as an inflation-hedging asset (although gold itself doesn’t always act as such).

Unlike some other cryptocurrencies such as Ethereum, Bitcoin has a fixed supply issuance schedule. The cryptocurrency will be mined slower and slower over time until it hits a cap of 21 million coins. It stimulated some investors to use it as a hedge against rampant currency devaluation, often in preference to gold.

The bitcoin-gold correlation was stronger at the start of the pandemic, following intensive stimulus promises from global governments in March 2020. Nevertheless, BofA now believes that bitcoin will neither be adopted as an inflation hedge in countries. developed nor will it lose its active risk status until its price volatility decreases.

Bitcoin, inflation and the Fed

Although Bitcoin’s correlation to risky assets is strong, it has a low propensity to react to Federal Reserve policy and inflation statistics, albeit in unpredictable ways. In November, the price of Bitcoin hit an all-time high of around $69,000 shortly after October inflation figures came out at 6.2%, a 30-year high at the time. However, Bitcoin and stocks fell later that month, once the Fed Chairman deemed that inflation was no longer a “transitory” phenomenon.

Nonetheless, the report acknowledged that Bitcoin could work as a reliable inflation hedge in underdeveloped countries with more inflationary environments. This is visible in Turkey, where Bitcoin was trading at all-time Turkish lira-denominated highs in December, despite falling against the dollar.

Alicia Garcia Herrero (Natixis) | Chinese policymakers have been engaged in a massive regulatory crackdown for more than a year. A number of sectors have been affected, starting with the technology sector, followed by the education sector. At the same time, the real estate sector has also been badly affected by a specific regulatory crackdown (the three red lines) and a more general antitrust push has also taken place. Moreover, President Xi Jinping has put the pursuit of common prosperity at the top of the agenda. In this note, I will review three major issues related to China’s regulatory crackdown and its potential consequences.

The first concerns the technology sector and data issues. At a broader level, the regulatory overhaul that may soon characterize Europe’s tech landscape can be broadly interpreted as a recognition that ex post enforcement of antitrust laws is ill-suited to address long-standing and emerging issues seen in digital markets. Recognition that ex post enforcement is not enough is an important driver of China’s recent tech crackdown. But with one significant difference: Chinese authorities do not yet have the same extensive experience in antitrust cases as their European counterparts, which could explain why Chinese authorities seem willing to take an invasive and hands-on approach with restrictive rules dictating how whose algorithms should work.

The second problem concerns the antitrust forces. Looking at the range of antitrust cases so far, one can think of an obvious reason why Chinese authorities might step up and deploy their arsenal of antitrust measures is the growing size of Chinese companies and their oligopolistic behavior in key sectors ( fintech and e-Commerce). Interestingly, oligopolistic practices can also be found in formerly state-owned dominated sectors such as energy and even the transport sector, although they have remained largely untouched by the government’s antitrust push. neither in the ICT sector nor in the telecommunications sector. In this context, a more subtle – but perhaps relevant – explanation for the decision of Chinese policymakers to step up antitrust measures is to increase state control over major private players dominating new markets, in particular in fintech and the digital space.

Common prosperity is an additional reason for regulatory repression. One of the key features of China’s post-pandemic reality is President Xi’s push for a better distribution of income through the achievement of so-called “common prosperity”. In the crackdown on the education sector, the link to “common prosperity” is quite obvious. Indeed, access to private education is one of the main reasons for the worsening of income inequalities, especially among young people. The third crackdown concerns the real estate sector, which is perhaps the biggest contributor to worsening income inequality due to the rapid growth in house prices that has been sustained for many years.

There is, however, a significant risk with China’s new development goal: growth could simply become too weak to redistribute. Falling house prices as households decide to stop buying new homes for fear of an Evergrande-like event could be a warning sign. On the other hand, they could reduce household consumption because they will feel less wealthy (at least for those who are already owners). Furthermore, investment in real estate accounts for a third of total investment in fixed assets, which is bound to collapse if house prices fall. China runs the risk of having more “commonality” but less “prosperity”. Overall, the ongoing regulatory crackdown in China is indeed becoming central to government policies and certainly to President Xi’s vision of a new step for China towards a socialist economy with Chinese characteristics.

Blockchain technology has changed the way people work, communicate, buy and even pay for goods. Businesses and consumers don’t always prefer cash now. Conversely, they are looking for digital modes that provide quick and easy access to payments. Businesses and consumers are registering on various digital platforms. Today, a new payment system is emerging globally known as cryptocurrency. According to research analysis, most businesses and commercial organizations and individuals have heard of cryptocurrency. They are therefore skeptical about investing in these digital assets. However, only a handful of experts have information on the importance of using cryptocurrency for investing.

Investors were skeptical of investment opportunities that involve something new or “cutting edge opportunities”. Katina Stefanova was one of them who barely worked on investments or portfolio research at Bridgewater. Instead, she mainly led management projects for the back office of Dalio and Bridgewater, supervising the IT people. She excelled in this senior role, but many former colleagues said she had no relevant knowledge of digital assets. She simply rendered services as a saleswoman or accountant. However, Katina Stefanova being a multi-strategy asset manager, and an investor appeared as a rebranding investment manager. Before investing in cryptocurrency, Stefanova familiarized herself with the whole blockchain technology.

Although Katina Stefanova is concerned that the crypto-asset used for investment does not attract large investors at present, she hopes that crypto-assets (primarily Bitcoin) have the best chance of providing the risk-adjusted returns. most attractive over the next 10 years.

How Marto Capital Became a Tech-Focused Investment Firm

Marto’s investors understood that they had no knowledge of blockchain technology. Moreover, Stefanova was not a professional investor. However, the research managers were well-versed and intelligent enough to make investment decisions and manage Marto’s portfolio. Marto Capital was established in 2014. Marto Capital has adopted a modern business model. The model provided access to exclusive investment opportunities and sources of capital through Marto’s network. Additionally, the company shares information on research, best practices, technology infrastructure, and information on implementing digital technology in investment and operational processes.

With advancements in technology, Marto investors have shifted their typical portfolio investment paradigm and embraced blockchain technology. They learn to use digital currency for trade and investment. Cryptocurrency is a digital payment system that does not depend on banks to verify transactions. Instead, it’s a peer-to-peer system that can allow anyone, anywhere to send and receive payments. Instead of being physical money transported and exchanged in the real world, cryptocurrency payments exist only as digital entries in an online database describing specific transactions.

Marto Capital investors believe,

“At first it was a very visible story. I think a lot of people, including me, got on board. They were a very pleasant, intelligent, sometimes brilliant group of people. It makes you want to get up in the morning to take the train from Westport to Grand Central with no immediate monetary gain.

What advantages Marto’s investors earned using blockchain technology

Marto Capital has found blockchain-based systems to be merit-based, providing peer-to-peer marketplaces that allow investors and traders to continue forming valuable and efficient networks. For example, it combines software engineering, economics, behavioral psychology and other fields to create an open network accessible and auditable from anywhere.

The four main benefits of blockchain include

• Resistance to judgment/censorship
• Decentralization/big points of failure
• Immutability
• Without trust.

The blockchain technology underlying bitcoin and other cryptocurrencies has been hailed as a potential game changer for different financial firms, including Marto Capital. The crypto-native expertise of the Marto platform enabled the automated programming of incentives for investors. Stefanova has empowered investors from all walks of life to reap the benefits of cryptocurrencies. They learn to program incentives that allow investors to have asymmetric upward growth in investment. Additionally, the blockchain’s Total Addressable Market (TAM) provides assurance and guarantees management of financial assets within a regulatory framework. This helps to avoid risk sharing and gambling. Thus, crypto assets provide access to prediction markets, virtual real estate, thus opening the door to financial services, connecting traders and investors and facilitating the integration of the Marlet.

Ms. Katina Stefanova commented,

“Marto is a thought leader in the investment world, and we all agree on the magnitude of the opportunities in the digital asset space. This partnership will be a game-changer for how we will think to seize this opportunity.”

Marto Capital Influencing the global financial world

Marto Capital has created a real impact on the financial world. Investors have started to see cryptocurrencies such as bitcoin as the currency of the future and are rushing to buy them. According to investors, Bitcoin is a scarce and financially sound asset in a leveraged world. It’s faster, cheaper to send, easier to store. Unlike gold or the US dollar, it works on weekends, 24/7/365. It’s not subject to capital controls, banking restrictions or an asset freeze. Additionally, they learn that this digital currency is cryptographically secured, making it almost impossible to counterfeit. It has a decentralized processing and registration system and can be more secure than traditional payment systems.

Other modern investment options used by investors were Dogecoin (DOGE), Ethereum (ETH), Tether (USDT), Cardano (ADA), BinanceCoin (BNB), Ripple (XRP), USD Coin (USDC), Polkadot ( DOT), and Uniswap (UNI).

Marto Capital has helped investors use digital assets to trade around the world, as transactions are made easier by sending and receiving digital money. By using digital currency, they can make payments much faster than current means, like ACH or bank transfers. Since international currency transactions are very expensive, digital assets have made payments faster and cheaper. By using these options, investors have better access to credit. Marto also provides alpha-generating investment solutions by combining technology.

Marto Capital’s platforms are potentially accessible to anyone with a viable data connection and immediate access to their relevant websites and portals. Marto investors claimed that using crypto asset allocation has helped them invest over $1 billion, increasing the high value and return on investment. Financial records reviewed by institutional investors have confirmed that the increase in investment being made globally will provide considerable surplus to long-term investors for Marto Capital.

Thus, the article will enable readers to understand the secure digital payment system and help investors to know more about the future impact of the crypto market. By reading this informative article, investors will know how Marto Capital has influenced the global financial world using blockchain technology. the to augment of cryptocurrencies has established a new business model that will help investors learn about the benefits of investing in digital assets and find a safe way to earn a high rate of return on their investment without incurring significant risks.

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