As we previously disclosed, we received subpoenas from the Department of and the Securities and Exchange Commission related to allegations in a class action lawsuit filed against us.
With the assistance of outside legal counsel, our Audit Committee completed a thorough internal investigation into these allegations of wrongdoing and concluded that they are without merit.
We are cooperating fully with the ongoing governmental investigations and will continue to vigorously defend against the lawsuit, which we do not believe has merit.
Fluctuations in worldwide exchange rates negatively impacted our EBIT by about $7 million, with declines in most currencies offsetting the strengthening euro.
During the period, demand for our products exceeded our productions, and inventory declined by about $80 million as we ramped up plants across the world.
In the second quarter, we took advantage of the favorable rate environment to pay off $1.1 billion of short-term debt and prefund our future long-term maturities.
In the third quarter, we generated about $530 million of cash, bringing our cash balance to $1.2 billion at the end of the period.
We believe our stock represents an attractive investment, and our Board of Directors recently approved a plan to repurchase $500 million of the company's stock.
Sales for the quarter were $2.575 billion or up 2% as reported and on a constant basis, with the Rest of World segment performing best.
Our gross margin was 27.4% as reported or 28.3% excluding charges, increasing from 27.8% last year.
Our SG&A as reported was $443 million or 17.2% of sales or 16.9% versus 17.8% in the prior year, both excluding charges.
This was primarily impacted by favorable productivity of $21 million.
Our restructuring charges were $32 million for the quarter, of which $6 million was cash.
Our operating margin excluding charges was 11.5%, improving from 9.9% last year.
Interest expense was $15 million, and we expect interest next quarter to be approximately $16 million.
Our income tax rate was at 17% this year compared to 18% last year.
We expect the fourth quarter to be approximately 5% and then returning to historical levels, ranging from 20% to 21% next year.
Our earnings per share excluding charges was $3.26, up 18% from last year.
In the Global Ceramic segment, sales were $911 million, down 1% as reported, with business up almost 2% on a constant basis.
Our operating margin excluding charges was 10.3%, up 110 basis points compared to the 9.2% last year.
In the Flooring North American segment, sales were $982 million, down 2% as reported, with growth in all major categories, except the more profitable commercial end market, which remains challenging with postponed projects and slower office and hospitality.
Our operating margin excluding charges was 8.2% compared to 8.7% last year.
In the Flooring Rest of World segment, sales were $681 million, up 13% as reported and increased by almost 10% on a constant basis.
Our operating margin excluding charges was 19.3%.
That's up 480 basis points from 14.5% last year.
In the Corporate and Eliminations segment, the operating loss excluding charges was $10 million.
We expect the total year to come in at a loss of about $40 million.
Our receivables ended the quarter at $1.711 billion.
Our days sales outstanding improved to 56 from 61 days last year.
Our inventories ended the quarter to $1.842 billion and dropped almost $500 million or 21% from last year as all businesses saw significant reductions in inventory with production lagging sales.
Our inventory days were at 100 versus 127 days last year.
Fixed assets at the end of the quarter were $4.405 billion and included capital expenditures during the quarter of $69 million and depreciation and amortization of $151 million.
We estimate the annual capital expenditures to be about $420 million, with D&A estimated at $595 million.
And finally, the balance sheet and cash flow remains strong with total debt of $2.6 billion, total cash and short-term investments of almost $1.2 billion and leverage at 1.1 times to adjusted EBITDA.
For the quarter, our Global Ceramic segment sales increased 2% on a constant days and currency basis.
Our operating income grew 11% with a margin of 10% excluding restructuring costs compared to last year.
During the quarter, our Flooring North America segment sales decreased approximately 2% as reported, with operating income margin exceeding 8% excluding restructuring charges.
For the quarter, our Flooring Rest of World segment sales increased approximately 13% as reported.
The segment's operating income grew 56% with a margin of 19% as reported.
Assuming the current economic trends continue, we anticipate our fourth quarter earnings per share to be $2.75 to $2.87 with a nonrecurring tax rate of approximately 5% for the period.

Summary:
As we previously disclosed, we received subpoenas from the Department of and the Securities and Exchange Commission related to allegations in a class action lawsuit filed against us.
With the assistance of outside legal counsel, our Audit Committee completed a thorough internal investigation into these allegations of wrongdoing and concluded that they are without merit.
We are cooperating fully with the ongoing governmental investigations and will continue to vigorously defend against the lawsuit, which we do not believe has merit.
Our earnings per share excluding charges was $3.26, up 18% from last year.
And finally, the balance sheet and cash flow remains strong with total debt of $2.6 billion, total cash and short-term investments of almost $1.2 billion and leverage at 1.1 times to adjusted EBITDA.
Assuming the current economic trends continue, we anticipate our fourth quarter earnings per share to be $2.75 to $2.87 with a nonrecurring tax rate of approximately 5% for the period.