united states – Angil http://angil.org/ Tue, 12 Apr 2022 21:01:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://angil.org/wp-content/uploads/2021/06/icon-2021-06-29T195041.460-150x150.png united states – Angil http://angil.org/ 32 32 One River Digital Asset Management and MVIS Index Solutions Announce the Creation of the One River Digital Indices https://angil.org/one-river-digital-asset-management-and-mvis-index-solutions-announce-the-creation-of-the-one-river-digital-indices/ Wed, 16 Mar 2022 13:30:00 +0000 https://angil.org/one-river-digital-asset-management-and-mvis-index-solutions-announce-the-creation-of-the-one-river-digital-indices/ GREENWICH, Conn., March 16, 2022 /PRNewswire/ — The number of digital assets surpassed 18,000 in March, trading on 460 exchanges, with a market capitalization of $1.75 trillion. President Biden’s executive order was a statement to the world that United States plans to be a strategic leader in integrating digital asset technologies into the mainstream economy. […]]]>

GREENWICH, Conn., March 16, 2022 /PRNewswire/ — The number of digital assets surpassed 18,000 in March, trading on 460 exchanges, with a market capitalization of $1.75 trillion. President Biden’s executive order was a statement to the world that United States plans to be a strategic leader in integrating digital asset technologies into the mainstream economy. Investors are alert to the opportunity; however, investors are also challenged to bring order to the chaos of the rapidly growing ecosystem. Of the more than 18,000 workers, how many will survive? Who can choose winners and losers? Will smaller projects take market share from traditional markets and native digital asset pioneers? Our conversations with investors made it clear that there was a gap in the market. Investors craved a dynamic, institutional digital benchmark that did not exist.

So we built it.

One River Digital Asset Management and MVIS Index Solutions are pleased to announce the creation of One River Digital Asset Management Heart Index (ticker: ORDCI) and One River Digital Waist inclination Index (symbol: ORDST). These indices respond to the basic wants and needs of investors: a dynamic benchmark where assets adapt fluidly to the ecosystem; a systematic, rules-based approach that meets the highest regulatory standards; indices that give investors the opportunity to direct exposure to promising assets; and indexes constructed at the institutional scale.

the Heart and Waist inclination the indices are underpinned by One River Digital’s disciplined, institutional approach to asset management, developed over decades of collective experience. To be eligible for the index, digital assets must meet both specific fundamental and market-based criteria. As the industry matures and more workers meet qualifications, the Heart and Waist inclination the indices will grow to continuously represent the highest quality evolving segment of the digital asset markets.

A digital river Heart and One River digital Waist inclination are both currently available to institutions through an SMA at Coinbase Prime and will soon also be available in blended institutional funds.

“Investors are overwhelmed with choice and the speed of change in the digital ecosystem. Building dynamic indices gives our clients a benchmark that didn’t exist before,” said Eric PetersCEO and CIO of One River.

One River digital Heart The index allows investors to access and track this dynamic market with market capitalization weightings familiar to traditional indices. Investors preferring a more diversified set of holdings will be attracted to the One River Waist inclination Index, where the ranking methodology skews the weight away from the most important assets. Today, Bitcoin represents 64% in the Heart Index against 36% in the Waist inclination.

“Institutional investors are used to separating alpha from beta. Our indices allow investors to better hone their exposures. Clients can now build better portfolios, exposures that represent their needs for return, risk, liquidity, security, transparency and fees Our Digital Waist inclination Index is the first of its kind, utilizing techniques and insights gained from decades of experience managing institutional equities,” said Sebastien BeaPresident of One River Digital.

One River Digital has partnered with MVIS Index Solutions GmbH (MVIS), an industry-leading regulated index provider, to design and implement its indices. As the third-party index administrator, MVIS reviewed and approved the index methodology. MVIS will provide ongoing, independent index monitoring using CCCAGG pricing provided by CryptoCompare.

“MVIS was a great partner for us as we researched and designed the One River Digital Heart and One River Digital Waist inclination Clues. Their robust processes and experienced team ensure that the highest level of care and integrity will be taken in maintaining the indices in the future,” said Paul Ebnerportfolio manager and researcher in systematic digital strategies.

“The unique digital river Heart and One River Digital Waist inclination The indices are the start of a wide range of investment solutions that will be provided through the ONE Digital SMA platform, powered by Coinbase Prime,” said Jasmine Burgess, Chief Operating Officer and Chief Risk Officer of One River Digital. “Mixed institutional fund versions of both indices will also be available in the near future.”

One River digital Heart and One River Digital Waist inclination The indices are rules-based indices calculated in USD. Both indices are revised on a quarterly basis. Index details, including methodology details and data sources, are available on the MV Index Solutions website:

https://mvis-indices.com/indices/customised/One-River-Digital-Core
https://mvis-indices.com/indices/customised/One-River-Digital-Size-Tilt

About One River Digital Asset Management:

One River Digital Asset Management is a leading institutional digital asset manager, providing investment strategies and infrastructure to bridge digital and traditional markets. One River Digital completed the first major institutional asset allocation to digital in November 2020*. The company is backed by its strategic investors, leaders in digital, finance and asset management, including Coinbase, Goldman Sachs, Liberty Mutual and others. The firm is a subsidiary of One River Asset Management, an innovative investment manager dedicated to delivering high-conviction absolute return strategies that seeks to help its clients build superior portfolios. He sees the world in a time of major economic, political and political transition, with an investment landscape changing in ways that will make the next decade look profoundly different from the decade before. Its strategies are designed to take advantage of this dynamic environment while providing strong diversification benefits to traditional investment portfolios. Each is developed and managed by its diverse team of investment professionals with deep expertise in volatility, macro, inflation, digital assets and systematic trading/investing. One River manages approximately $2.5 billion in institutional assets. The company is headquartered in Greenwich, CT and was founded in 2013.

*For more details on our digital allocation in November 2020see here: https://blog.coinbase.com/hedge-fundscontinue-to-look-to-coinbase-for-innovativeportfolio-solutions-d3a35bc16874

About MVIS:

MV Index Solutions (MVIS®) develops, monitors and licenses MVIS Indices and BlueStar Indices, a selection of targeted, investable and diversified benchmark indices. Indices are specially designed to underpin financial products. MVIS indices cover multiple asset classes including equities, fixed income markets and digital assets and are licensed to serve as the underlying indices for financial products. About USD $34.64 billion of assets under management (at March 4, 2022) are currently invested in financial products based on the MVIS/BlueStar indices. MVIS is a VanEck company.

SOURCE One River Digital Asset Management

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Austin venture capital firm seeks to back Texas-based startups with $250 million in hand https://angil.org/austin-venture-capital-firm-seeks-to-back-texas-based-startups-with-250-million-in-hand/ Wed, 09 Mar 2022 14:02:22 +0000 https://angil.org/austin-venture-capital-firm-seeks-to-back-texas-based-startups-with-250-million-in-hand/ An Austin-based venture capital firm has raised $250 million from investors for its seventh growth capital fund targeting Texas startups. S3 Ventures has focused on early-stage business technologies, digital experiences and health technology companies in Dallas, Austin, Houston and San Antonio since its inception in 2005. The company’s founder is also its managing partner – […]]]>

An Austin-based venture capital firm has raised $250 million from investors for its seventh growth capital fund targeting Texas startups.

S3 Ventures has focused on early-stage business technologies, digital experiences and health technology companies in Dallas, Austin, Houston and San Antonio since its inception in 2005. The company’s founder is also its managing partner – Brian Smith, who founded Austin. Crossroads Systems in 1994 and led it through five investment rounds and an initial public offering.

In Dallas, the firm’s previous investments included fast-growing digital banking company Alkami Technology. Charlie Plauche, general partner of S3 Ventures, said Alkami was the company’s most successful holding company. In 2021, Alkami went public with a valuation of over $3 billion.

S3 Ventures has also backed NoiseAware, an automated noise monitoring provider, and IFM Restoration, an online marketplace that connects contractors with owners of single-family rental homes.

Smith said he likes what he sees in Texas.

“(Texas has people) who live and work here and entrepreneurs who come here and build great businesses here,” Smith said. “We see the attractiveness of this growing.”

S3 Ventures has made over 50 investments to date, with over 25 active portfolio companies and over 20 exits. The company’s portfolio companies have raised nearly $2 billion in total funding.

The company invests between $500,000 and $10 million in early growth cycles, with the ability to invest over $20 million over the life cycle of a business. Its assets under management total over $900 million.

“We believe that by 2030, Texas could be the nation’s second-largest tech ecosystem,” Smith said in a statement. “This growth is being driven by long-term demographic shifts and widespread economic strength.”

Siemens Group USA generated $17 billion in revenue in fiscal 2020 as a key...
Local companies

Siemens Invests $10 Million in Grand Prairie Hub as Semiconductor Manufacturing Sets to Boom

Siemens will invest $10 million to expand its Grand Prairie manufacturing center as part of a broader campaign to capitalize on semiconductor fabs being built in the United States. The German company’s investment in Texas, along with additional spending at its California production hub, will help fuel projects like Intel Corp.’s announcement of new chip factories. for Arizona and Ohio. In total, Siemens plans to invest $54 million in its US facilities and create 300 new jobs.

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– Should Portland city councilors be paid more? https://angil.org/should-portland-city-councilors-be-paid-more/ Mon, 07 Mar 2022 09:00:22 +0000 https://angil.org/should-portland-city-councilors-be-paid-more/ Pat Washburn has thought about running for Portland City Council, but when she considers the time she’d have to sacrifice from her day job, it doesn’t seem feasible. “I should be taking too long out of my career to do a good job of listening to constituents, studying issues that come before the board and […]]]>

Pat Washburn has thought about running for Portland City Council, but when she considers the time she’d have to sacrifice from her day job, it doesn’t seem feasible.

“I should be taking too long out of my career to do a good job of listening to constituents, studying issues that come before the board and attending meetings,” said Washburn, who works as a technical writer for a cybersecurity. business. “You can’t just walk into meetings with general knowledge. You have to know what you are doing. »

The responsibilities of the position and the desire to attract applicants from all walks of life — including those who might not find the required work affordable — are why Washburn, who serves on the city’s Charter Commission, offered to increase the salaries of municipal councillors.

Councilors currently earn a stipend of $6,947 per year, plus benefits including health insurance, and have the ability to set their own salary as long as raises do not occur in the same municipal year. They are also eligible for annual increases in the cost of living, and a 2% or 3% increase is often considered during the year. budget process, said city spokeswoman Jessica Grondin.

Washburn’s Proposal would set a new minimum for the allowance, raising it dramatically to a rate of 1.35 times the state or city minimum hourly wage, whichever is lower, multiplied by 20 hours per week for each week of mandate. At the current minimum wage of $12.75, this would translate to an annual allowance of approximately $17,900. Councilors could also refuse payment or set a higher allowance.

The proposal was approved 3-1 by the committee’s procedures committee on Feb. 8 and is currently being considered by the full committee. Any changes to city government that the commission ultimately recommends will need to be approved by voters to be enacted.

“The proposals presented to the city deal with major issues, complex issues involving finance, development and government – and I would like this to be recognized as work worth paying for, just like being a cook in a restaurant or run a store,” Washburn said.

Proponents of the wage increase say a higher annual allowance would better reflect the reality of the job – which can add up to 20 to 40 hours of work per week – and make it easier to access a longer roster. diversity of candidates for public office. Critics say serving as a councilor has always been a matter of civic duty, not pay, and the city has more pressing spending priorities.

WHAT ARE OTHER CITIES DOING?

Approaches to elected official compensation vary widely across the country. The National League of Cities, an advocacy group made up of municipal leaders, analyzed the pay of elected officials in 15 communities across seven states last summer in response to a debate in Broken Arrow, Oklahoma, similar to that in Portland.

“We often get a question like this,” said league infrastructure manager James Brooks when asked how Portland’s board salaries compare to those in other cities. “Cities like to know where they are in terms of remuneration of their elected officials. There is no regular survey that tracks this, so most of them don’t have the data themselves.

The size of cities surveyed by the league ranged from DeSoto, Texas, with a population of 53,000, to Oklahoma City, with 643,900. Brockton, Massachusetts, with a population of 95,594, was the only New England town included in the league analysis.

The average salary of council members, aldermen and commissioners in the communities studied was $14,136. The maximum was $34,005 in Las Cruces, New Mexico (population 102,102), and the minimum was $2,700 in Victoria, Texas (population 67,670).

“There’s definitely no consistency,” Brooks said. “There’s very localized decision-making about what political office holders should do and how they should earn it, whether it’s a salary or a participation allowance etc. It doesn’t there is no uniformity, even within a state.”

Washburn said she also looked at other cities and found a wide range of pay rates and approaches.

She said she hasn’t looked at other communities in Maine since Portland stands out given its size. “I think in a smaller place it’s a lot easier to do it as volunteer work or semi-volunteer work that’s added to a full-time career,” Washburn said.

In Bangor, councilors earn $2,000 a year and the council president earns an additional $500. In Lewiston, counselors earn a $4,000 stipend.

THINK ABOUT EQUITY

While the Portland council already has the option of increasing its own salary, Washburn said there is a stigma attached to doing so. She said her proposal – coming from someone who is not on the board and does not plan to run – would make it easier for those who might be hesitant to run for financial reasons.

“I don’t want to create a princely salary that would attract people who just want money,” she said. “I just want to recognize that it’s work and it’s work worth paying for.”

When the Charter Commission’s procedures committee met last month to discuss the proposal, Commission President Michael Kebede, who voted in favour, agreed with Washburn that a larger allocation would facilitate the race of workers.

“I think the notion of unpaid civic duty is very noble – but when you work three jobs to feed multiple children, say, the nobility behind unpaid civic duty goes away,” Kebede said. “I think it’s a good way around the problem.”

He said elected officials in Maine in general are often paid less than in other states. Governor Janet Mills, for example, earns $70,000, which in 2020 was the lowest salary of any governor in the United States.

Brooks, of the National League of Cities, said he personally hasn’t done research on whether raising elected officials’ salaries increases diversity or makes it easier for workers to run for office. , but he pointed to a 2016 study by the American Political Scientific Review. The studywho examined state legislatures in the United States, found that working-class representation was the same or worse in states that paid higher salaries to lawmakers.

The study indicated that increasing legislative wages beyond $0 may make it easier for low-income people and workers to fill positions, but further increasing wages eventually makes the position more attractive to white-collar professionals.

“Higher wages do not seem to make political office more attractive to workers; they seem to make it more attractive to professionals who already earn high salaries,” the study authors wrote. “According to our data, paying politicians more does not appear to promote economic diversity.”

WHAT DO ADVISORS THINK?

Portland councilors had a wide range of opinions on the salary increase proposal. But they all agreed on one thing: they put in far more hours than the public probably realizes or imagined before they were elected.

Councilor April Fournier, an early childhood support specialist at Maine Medical Center’s pediatric clinic, said she spends 30 to 40 hours a week on council work between answering constituent emails, attending council meetings and workshops. committee and council and look for problems. She said she hadn’t seen the wording of the charter commission’s proposal but supported the spirit of the idea.

“When you say it’s a privilege (to be on the board) and you don’t need to be paid, you automatically exclude people who earn less than the median income,” Fournier said. “It’s not just about the council making more money, it’s about creating equity in this position so we can have greater representation of the people we serve.”

Councilor Pious Ali, who works for the nonprofit Portland Empowered, did not support the charter commission’s proposal, but said he trusted the commissioners to make a good decision and that he saw how increased compensation could be a benefit. “Across the country there is a movement trying to diversify the number of people from different backgrounds who will have the opportunity to serve,” Ali said. “One of the things that hinders them is their ability to support themselves while serving. Public service should not be the privilege of those who can afford it”.

“It’s too much money,” said Councilman Mark Dion, a lawyer and former sheriff, when asked about the commission’s proposal. He said he viewed the post as a civic duty and not a primary source of income. “I don’t know what to say other than going from $6,000 to $18,000, I couldn’t in good conscience argue for that,” Dion said. “We have people who don’t have a place to sleep tonight, but am I going to plead for my salary to be tripled? »

Councilor Tae Chong also said he thinks the money could be better spent on other things, such as the needs of the large number of homeless people the city is currently home to. “I just think it’s dishonest to say we care about the community and take money out of the most vulnerable, when there are people willing to volunteer,” said Chong, who works in as Director of Multicultural Markets and Strategies for Maine. State Chamber of Commerce.

Chong said the council, along with the school board and charter commission, is already diverse and includes people under 40, people of color and people who have never held office before. “To say that these barriers are so difficult when in reality it’s just the opposite, asking for more money or more layers of government, that’s just dishonest and wrong,” Chong said.

But Andrew Zarro, who is 33 and among the council’s youngest members, said balancing his roles as small business owner and elected official has not been easy. “How are we going to attract people even younger than me? Or a student? Or people who want to get involved and can contribute but ultimately need to be financially compensated for that hard work? Zaro said. “It’s not a part-time position. It couldn’t be further from that.


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Sachem Capital Corp. Price Listed Public Offer of https://angil.org/sachem-capital-corp-price-listed-public-offer-of/ Thu, 03 Mar 2022 23:31:39 +0000 https://angil.org/sachem-capital-corp-price-listed-public-offer-of/ 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 […]]]>

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

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With Wolf’s encouragement, Pennsylvania teachers’ pension fund drops Russian investments https://angil.org/with-wolfs-encouragement-pennsylvania-teachers-pension-fund-drops-russian-investments/ Thu, 03 Mar 2022 21:58:53 +0000 https://angil.org/with-wolfs-encouragement-pennsylvania-teachers-pension-fund-drops-russian-investments/ In an emergency session on Thursday, Pennsylvania’s teachers’ pension fund voted to withdraw between $270 million and $300 million in assets from Russia and Belarus. The Board of Directors of the Public School Employees Retirement System unanimously approved the surrender resolution. He is asking the fund to sell all of its investments in both countries. […]]]>

In an emergency session on Thursday, Pennsylvania’s teachers’ pension fund voted to withdraw between $270 million and $300 million in assets from Russia and Belarus.

The Board of Directors of the Public School Employees Retirement System unanimously approved the surrender resolution. He is asking the fund to sell all of its investments in both countries.

The resolution will also prevent the fund from investing in either country in the future until the board takes further action. Russia invaded Ukraine last week. Belarus, a Russian ally that borders Ukraine to the north, was a base for the invasion.

The assets are only a fraction of a fraction of the system’s $72 billion in assets, which pay for the current and future retirement of 500,000 teachers and other education workers.

But “any amount of investment in these two countries now poses an unacceptable risk,” PSERS board chairman Chris Santa Maria said at the start of the meeting, reading a prepared statement.

Pennsylvania lawmakers seek to withdraw state funds from Russia amid war in Ukraine

The action comes amid widespread action by Western governments to divest from Russia.

Pennsylvania was not immune to the surge. Over the weekend, the state Liquor Control Board, one of the biggest buyers of alcohol in the United States, dropped two brands of Russian-made vodka after pressure from lawmakers and Democratic Governor Tom Wolf.

In a Thursday letter, Wolf also called on the PSERS and its sister fund, the State Employees’ Retirement System, to get rid of Russian investments.

In an accompanying statement, Wolf said he would sign legislation banning state agencies from investing in Russia, as proposed by Republican and Democratic lawmakers. Such legislation would add Russia to a list of countries the systems can no longer do business with. The list also includes Sudan and Iran.

But in the meantime, Wolf said the PSERS and SERS should “act now where we can.”

“We must do what we can to end the suffering of the Ukrainian people,” Wolf added.

Earlier this week, SERS spokeswoman Pam Hile said the fund’s exposure to Russia-related investments amounted to a fraction of one percent. The fund planned todiscuss Russian-related investments” during a regular board meeting on Friday, Hile added.

In all, the system has nearly $40 million in assets to cover the retirements of 239,000 current and former public sector workers.

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Last war in Ukraine: Putin sets terms for talks in call with Macron https://angil.org/last-war-in-ukraine-putin-sets-terms-for-talks-in-call-with-macron/ Thu, 03 Mar 2022 13:46:19 +0000 https://angil.org/last-war-in-ukraine-putin-sets-terms-for-talks-in-call-with-macron/ The biggest US buyers of Russian oil are ExxonMobil © Adrian Dennis/AFP via Getty Images Democrats in Congress are urging US oil refineries to stop importing oil from Russia in a bid to increase pressure on the Kremlin a week after the Russian invasion of Ukraine. Bobby Rush, the Democratic chairman of the House energy […]]]>
The biggest US buyers of Russian oil are ExxonMobil © Adrian Dennis/AFP via Getty Images

Democrats in Congress are urging US oil refineries to stop importing oil from Russia in a bid to increase pressure on the Kremlin a week after the Russian invasion of Ukraine.

Bobby Rush, the Democratic chairman of the House energy subcommittee, and Jerry McNerney, another Democrat on the subcommittee, wrote to the refiners industry group asking its members to stop buying crude oil Russian and partially refined products.

In the letter to US fuel and petrochemical manufacturers, seen by the Financial Times, the two lawmakers wrote: “Because any purchase of Russian barrels would now fund its war with Ukraine, continuing this activity has become impermissible.

Separately, Jack Reed, the Democratic chairman of the Senate Armed Services Committee, tweeted Wednesday: “Russian oil imports must be stopped. Our domestic supply is sufficient.

The United States imported about 209,000 barrels a day of crude oil from Russia last year, or about 3% of total imports, according to AFPM. But it also imported an additional 500,000 barrels a day of other petroleum products, accounting for nearly two-thirds of all unfinished oil imported by U.S. refineries, according to Rapidan Energy Group, a consultancy.

The most recent figures from the US Energy Information Administration show that the biggest buyers of Russian oil in the country are ExxonMobil.

Joe Biden, the American president, has said he is ready to impose an oil embargo on Russia. But while its officials debate the wisdom of doing so, many oil buyers are already cutting off sourcing from Russia.

Valero Energy, a Texas-based refining company that imports heavily from Russia, reportedly suspended all future purchases of Russian oil. Russian Urals crude is now trading at a record discount of more than $18 a barrel as the country’s producers struggle to find buyers.

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INTERFACE INC MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-K) https://angil.org/interface-inc-management-report-and-analysis-of-financial-position-and-results-of-operations-form-10-k/ Wed, 02 Mar 2022 21:26:10 +0000 https://angil.org/interface-inc-management-report-and-analysis-of-financial-position-and-results-of-operations-form-10-k/ 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 […]]]>

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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SUMMARY 11-Russia Raises Rates and Introduces Capital Controls as Sanctions Bite https://angil.org/summary-11-russia-raises-rates-and-introduces-capital-controls-as-sanctions-bite/ Mon, 28 Feb 2022 21:50:53 +0000 https://angil.org/summary-11-russia-raises-rates-and-introduces-capital-controls-as-sanctions-bite/ Russia’s central bank more than doubled its key rate on Monday and introduced capital controls as the country faced growing economic isolation, but its governor said the sanctions had prevented it from selling foreign currency to support the ruble. The admission that the restrictions had effectively tied the Bank of Russia’s hands highlights the ferocity […]]]>

Russia’s central bank more than doubled its key rate on Monday and introduced capital controls as the country faced growing economic isolation, but its governor said the sanctions had prevented it from selling foreign currency to support the ruble.

The admission that the restrictions had effectively tied the Bank of Russia’s hands highlights the ferocity of the backlash from Moscow’s invasion of Ukraine and the success of Western allies in restricting its ability to deploy some $640 billion in reserves exchange and gold. “The central bank today raised its policy rate to 20% as further sanctions triggered a significant deviation in the ruble rate and limited the central bank’s options to use its gold and foreign currency reserves,” he said. said Governor Elvira Nabiullina at a press conference.

“We had to raise rates to compensate citizens for the increased inflationary risks.” Western sanctions had previously sent the ruble down nearly 30% to record lows. It recovered some ground after the central bank raised its main interest rate to 20%, the highest level this century, from 9.5%.

The Bank of Russia sold $1 billion in foreign exchange markets on Thursday, Nabiullina said, but did not intervene on Monday. This suggests that the ruble was supported by other anonymous market participants.

Russia’s central bank also said stocks and derivatives traded on the Moscow exchange will remain closed for a second day on Tuesday. Russian stock markets and derivatives markets were closed on Monday to hedge against further losses. On Monday, the central bank and the Ministry of Finance ordered exporting companies, including some of the world’s largest energy producers, from Gazprom to Rosneft, to sell 80% of their foreign exchange earnings on the market, because the own The central bank’s ability to intervene in currency markets has been curbed.

Dmitry Polevoy, head of investments at Locko Invest, estimated that Russian exporters could offer $44 billion to $48 billion a month to prop up the ruble provided oil prices stay around current levels and there are no no sanctions on energy exports. “That seems enough to stabilize the market in the next couple of weeks,” he said.

Sanctions targeting Russia’s energy sector remain on the table, White House press secretary Jen Psaki said Monday. The central bank has temporarily banned Russian brokers from selling securities held by foreigners, although it did not specify which assets the ban applies to. He also said he would start buying gold on the domestic market again.

Russian President Vladimir Putin has ordered a ban on foreign currency loans and bank transfers by Russian residents outside Russia from March 1, the Kremlin announced on Monday, in retaliation for economic sanctions imposed on Moscow by the ‘West. The United States and Great Britain have prohibited their citizens or entities from carrying out transactions with the central bank, the National Wealth Fund of Russia or the Russian Ministry of Finance.

Switzerland said it would adopt European Union sanctions against Russians involved in the invasion of Ukraine and freeze their assets, breaking with the traditions of the neutral country. “If Russia continues on its current path, it is quite easy to see how the latest sanctions could be just the first steps in a severe and lasting severance of Russia’s financial and economic ties with the rest of the world,” wrote Oliver Allen of Capital The Economy in a report.

DEMAND FOR CASH Major Russian banks have also been locked out of the SWIFT messaging network that facilitates billions of dollars in financial transactions around the world, making it difficult for lenders and businesses to make and receive payments.

Nabiullina said Russia had an internal replacement for SWIFT that foreign counterparties could connect to, but did not give details. She said the banking sector faces “a structural liquidity shortfall” due to high demand for cash, and the central bank stands ready to support it.

“The central bank will be flexible to use all the necessary tools…banks have sufficient coverage to raise funds from the central bank,” Nabiullina said. Russians had lined up at ATMs on Sunday, fearing the sanctions could cause cash shortages and disrupt payments.

All banks would fulfill their obligations and the funds in their accounts would be safe, Nabiullina said, although the central bank has recommended that banks restructure some customers’ loans. The European branch of Sberbank, Russia’s biggest lender, was on the verge of bankruptcy, the European Central Bank warned on Monday, after a run on its deposits sparked by the backlash from Russia’s invasion of Ukraine.

Nabiullina said new monetary policy decisions would be driven by central banks’ assessment of external risks, adding that she would be flexible in her decisions given the “non-standard situation” facing the financial system and the economy. The ruble ended down around 14% against the US dollar.

DEBT DEFAULT? The Institute of International Finance (IIF), a trade group representing major banks, warned on Monday that Russia was extremely likely to default on its external debts and its economy would suffer a double-digit contraction this year after the new measures. retaliation from the West.

The central bank and finance ministry did not immediately respond to a Reuters request for comment on the IIF’s assessment. An order that Russian brokerages reject orders to sell Russian securities from foreign clients could complicate plans by sovereign wealth funds in Norway and Australia to reduce exposure to Russian-listed companies.

It was also unclear how energy giant BP Plc, Russia’s biggest foreign investor, would follow through on a decision to dump its stake in state oil company Rosneft at a cost of up to $25 billion. dollars. JPMorgan Asset Management on Monday suspended its JPM Emerging Europe Equity fund, a source familiar with the matter said, and Denmark’s Danske Invest said it had suspended trading in equity funds with high exposure to Russian stocks.

World bank HSBC and the world’s largest aircraft leasing company, AerCap, are among other Western firms seeking to exit Russia over its actions in Ukraine, which Moscow calls a “special operation”. UK-listed depositary shares of Russian companies fell, including those of gas giant Gazprom and Sberbank.

“We are seeing prices for Russian ADRs that we haven’t seen in decades,” said Michael Kart, partner at investment firm VLG Capital. “This is certainly the most devastating blow ever suffered by the Russian securities market.”

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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Record Sales and Capital, Strategic Advancements Drive MassMutual’s Outstanding Growth and Performance in 2021 https://angil.org/record-sales-and-capital-strategic-advancements-drive-massmutuals-outstanding-growth-and-performance-in-2021/ Mon, 28 Feb 2022 13:30:00 +0000 https://angil.org/record-sales-and-capital-strategic-advancements-drive-massmutuals-outstanding-growth-and-performance-in-2021/ SPRINGFIELD, Mass.–(BUSINESS WIRE)–Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong financial results1 for 2021 – including record sales and capital levels that have reached an all-time high and strong operating income – while making significant progress on its long-term strategy and providing financial security to more Americans . With the pandemic prompting more people […]]]>

SPRINGFIELD, Mass.–(BUSINESS WIRE)–Massachusetts Mutual Life Insurance Company (MassMutual) today announced strong financial results1 for 2021 – including record sales and capital levels that have reached an all-time high and strong operating income – while making significant progress on its long-term strategy and providing financial security to more Americans .

With the pandemic prompting more people to seek financial security for themselves and their loved ones, MassMutual has seen increased demand for its protection and planning solutions, strengthening the company’s position as a leading insurance provider. life. For the year ended December 31, 2021, sales of its core protection product, whole life insurance2, rose 25% to a record $767 million. Total individual life insurance sales rose 23% to $851 million, also an all-time high, bringing the total amount of insurance protection provided by the company to $895 billion.

These results, together with strong sales contributions from the company’s expanded product and business portfolio, strong market performance and sound business and expense management, helped drive operating profit at $2.1 billion. MassMutual also maintained its excellent financial strength and flexibility, with statutory surplus increasing 11% to $27 billion and total adjusted capital increasing 15% to $32.8 billion – both record highs. year-end – as the company continued to hold some of the highest ratings. any business in any industry.3

This enduring financial strength has enabled MassMutual to continue to deliver long-term value, paying out $7 billion in insurance and annuity benefits to its policyholders and customers. The company also approved an estimated record dividend payout of nearly $1.85 billion to eligible participating policyowners in 2022. This payout reflects a dividend interest rate of 6.00% and is the 16and consecutive year, MassMutual has paid a leading rate among its peer mutual companies.4

« 170 from MassMutualand It was one of the best years in our history as we delivered outstanding financial performance and made significant progress on our long-term growth strategy through another challenging year while helping more Americans achieve financial stability and security,” said Roger Crandall, Chairman of the Board. and CEO, MassMutual. “Our 2021 results reflect our financial strength and flexibility, our broad portfolio of holistic solutions, our ability to meet the needs and expectations of our customers, and most importantly, the hard work, dedication and resilience of our employees and professionals. of finance who are committed to helping more people secure their future and protect those they love.

Alongside strong 2021 results, MassMutual continued to take steps to grow and strengthen its key businesses and investments, one of the company’s most distinct competitive advantages that contributes to its goal of paying a competitive dividend. Especially, MassMutual acquired Great American Life Insurance Company to help expand its banking relationships and grow its range of lifetime income solutions. In 2021, Great American Life’s record annuity sales helped bring MassMutual’s total annuity sales to over $13 billion,5 position MassMutual to become one of the leading providers of individual annuities in the United States

MassMutual also continued to invest in solutions to improve the overall experience for customers and financial professionals, while evolving its culture with a focus on sustainability, inclusion and flexibility:

  • MassMutual continued to enhance its overall digital experience with the launch of Advisor360°, providing its finance professionals and their clients with instant, integrated access to client portfolios to aid in their financial planning. The company has also enhanced its end-to-end digital platform that allows it to introduce new products and issue insurance protection faster.

  • To create a stronger and more sustainable world for future generations, MassMutual net zero commitments established for its operations and its investment portfolio, while announcing a strategic investment in Low Carbona UK-based renewable energy investor and asset manager, to leverage proven technologies that are advancing renewable energy at scale.

  • Demonstrating its unwavering commitment to building a diverse, equitable, and inclusive organization and community, MassMutual began publicly sharing employee demographics and launched the MM Catalyst Funda $50 million fund to invest in various neglected Massachusetts entrepreneurs.

  • MassMutual continued to provide employees with additional time off and wellness programs to help manage COVID-19, and also introduced a new approach to day-to-day work that balances personal flexibility with in-person teamwork . And to provide employees with spaces that embrace the future of collaborative working, MassMutual has opened a new office building in Boston’s thriving Seaport district, allowing the company to tap into the best talent and resources from both ends. of the Commonwealth.

“Our outstanding performance in 2021 underscores MassMutual’s enduring financial strength and strong operating fundamentals, as well as the successful and continued execution of our strategy,” said Betsy Ward, Chief Financial Officer of MassMutual. “As we look to 2022, we remain focused on ensuring the business is well positioned to deliver long-term value to our policyholders – guided by our financial flexibility and stability, our term, our wide range of products and our commitment to mutuality.”

Capping MassMutual’s strong financial results in 2021, the company received several accolades for its strong reputation and continued commitment to fostering an inclusive and innovative workplace. MassMutual scored a perfect 100% on the Human Rights Campaign’s Business Equality Index as well as the Disability Equality Index,® earned the company the honor of being a Best Workplaces for LGBTQ+ Equality for the ninth consecutive year and Best Workplaces for Disability Inclusion for the fifth year. The company also ranked #123 on FORTUNE® 500 in 2021 and most recently was named FORTUNE’s Most Admired Company for the 21st weather in 2022,6 at the forefront of innovation in the life and health insurance industry.

For more information on MassMutual’s consolidated statutory financial results, visit: MassMutual Financial Summary Page.

1 These are the consolidated statutory results of Massachusetts Mutual Life Insurance Company and its US-domiciled life insurance subsidiaries: CM Life Insurance Company, MML Bay State Life Insurance Company and Great American Life Insurance Company.

2 Sales are classified as weighted sales, which are based on a weighted annualized new premium, with single premium payments weighted at 10%.

3 The financial strength ratings of MassMutual and its subsidiaries, CM Life Insurance Company and MML Bay State Life Insurance Company, are as follows: AM Best Company, A++ (Superior); Fitch Ratings, AA+ (very strong); Moody’s Investors Service, Aa3 (high quality); and S&P Global Ratings, AA+ (very strong). Ratings are current as of February 1, 2022 and are subject to change.

4 The dividend and dividend interest rate (DIR) are determined annually, subject to change and are not guaranteed. Dividends paid on qualifying participating life insurance policies consist primarily of investment, mortality and expense components. The DIR is used to determine the investment component of the dividend. It is not the rate of return of the policy and should not be the sole basis for comparison of insurers or policy performance.

5Annuity sales include Great American Life Insurance Company’s annuity sales of $2.4 billion in the first 5 months of 2021, before MassMutual acquired it.

6 Of Fortune. ©2021 FORTUNE Media IP Limited. All rights reserved. FORTUNE 500 (June 2021) and FORTUNE World’s Most Admired Company (February 2022) are trademarks of FORTUNE Media IP Limited and are used under license. FORTUNE and FORTUNE Media IP Limited are not affiliated with and do not endorse MassMutual’s products or services.

About MassMutual

MassMutual is a leading mutual life insurance company that is managed for the benefit of its members and participating policyholders. Founded in 1851, the company has always been driven by one constant goal: we help people secure their future and protect those they love. With a focus on long-term value creation, MassMutual offers a wide range of protection, accumulation, wealth management and retirement products and services. For more information, visit www.massmutual.com

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Four of the five Democratic gubernatorial candidates make their first joint appearance https://angil.org/four-of-the-five-democratic-gubernatorial-candidates-make-their-first-joint-appearance/ Mon, 28 Feb 2022 02:15:00 +0000 https://angil.org/four-of-the-five-democratic-gubernatorial-candidates-make-their-first-joint-appearance/ PROVIDENCE – Four of the five Democratic candidates for governor of Rhode Island took turns answering questions about public funding for abortions, higher taxes for the wealthy and a rapid move to a $ 19 minimum wage. time Sunday night, when they first appeared together. They weren’t standing on the same stage. But one after […]]]>

PROVIDENCE – Four of the five Democratic candidates for governor of Rhode Island took turns answering questions about public funding for abortions, higher taxes for the wealthy and a rapid move to a $ 19 minimum wage. time Sunday night, when they first appeared together.

They weren’t standing on the same stage.

But one after another, the four Democrats defying outgoing Governor Dan McKee answered questions posed to them at an online forum hosted by the RI Democratic Women’s Caucus.

The four included: Secretary of State Nellie Gorbeaformer secretary of state Matte Brownold CVS framework Helena Foulkes and Luis Daniel Munozwho described himself as a full-time entrepreneur working in the medical technology field.

On some issues there was no disagreement. In response to this question, for example – “As governor, would your budget include [state dollars for] abortion coverage for Medicaid recipients and state employees?” – they each said yes, an unqualified yes.

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