Our third quarter results exceeded our expectations as net sales rose 9% over the prior year to approximately $2.8 billion.
Our adjusted earnings per share was $3.95 per share.
Due to supply shortages, government regulations and political issues, natural gas costs in Europe are presently about 4 times as high than they were earlier in the year.
Our results have improved significantly during 2021 and we generated over $1.9 billion of EBITDA for the trailing 12 months.
Given this in our current valuations, our Board increased our stock purchase program by an additional $500 million.
Since the end of the second quarter, we bought approximately $250 million of our stock at an average price of $193 per share.
Sales for the quarter exceeded $2.8 billion and 9.4% increase as reported and 8.7% on a constant basis.
Gross margin, as reported, was 29.7% or 29.8% excluding charges, increasing from 28.3% last year.
SG&A as reported was 16.9% and flat versus prior year, excluding charges.
Operating margin as reported was 12.8%.
Restructuring charges were approximately $1 million, and we have reached our original savings goal exceeding $100 million in annual savings.
Operating margins, excluding charges, were also 12.8%, improving from 11.5% in the prior year or 130 basis points.
Interest expense was $15 million in the quarter, flat versus prior year.
Our non-GAAP tax rate was 21.4% versus 16.9% in the prior year, and we still expect the full year rate to be between 21.5% and 22.5%.
Earnings per share as reported were $3.93, and excluding charges were 3.95% -- $3.95, excuse me, increasing by 21% versus prior year.
Global ceramic sales came in just under $1 billion, a 9.6% increase as reported or approximately 9.1% on a constant basis, led by strengthening price and mix across our geographic regions.
Operating margin excluding charges was 11.9%, up 160 basis points versus prior year due to the favorable price/mix offsetting increasing inflation, which improved -- with improved productivity and limited year-over-year shutdowns strengthening our results, partially offset by increased costs in new product development.
Flooring North America sales just exceeded $1 billion, a 6.9% increase as reported.
Operating margin excluding charges was 11.4%.
That's an increase of 320 basis points versus prior year.
In Flooring Rest of the World, sales exceeded $760 million, a 12.7% as reported increase or 10.5% on a constant basis, driven again by price and mix actions while volumes here were constrained by material disruptions, especially in LVT, a return to a normal summer seasonality and COVID restrictions, which caused lockdowns in Australia, New Zealand and Malaysia.
Operating margin, excluding charges, was 17.4%.
Corporate and eliminations were $11 million, and I would expect that to be $45 million for the full year.
Cash for the quarter exceeded $1.1 billion with free cash flow of $351 million in the quarter and over $720 million in third quarter year-to-date.
Receivables were just shy of $1.9 billion with a DSO of just under 57 days.
Inventories were just over $2.2 billion, an increase of approximately $374 million or 20% from the prior year.
That's an increase of about 16% if you compare to the year-end balance.
Inventory days just under 107 days compared to our low point last year at just under 100 days and 103 days at the year-end.
Property, plant and equipment exceeded $4.4 billion with capex for the quarter at $148 million, in line with our D&A.
Full year capex is currently projected to be $650 million, with D&A projected at $586 million.
One note on October 19, the company redeemed at par their January 2022 EUR500 million 2% senior notes plus unpaid interest, utilizing cash on hand.
The balance sheet overall and cash flow remained very strong with gross debt as of the end of Q3 of $2.3 billion and leverage at 0.6 times to adjusted EBITDA.
For the period, our Flooring Rest of World segment sales increased 12.7% as reported and 10.5% on a constant basis.
Operating margins were 17.4% as a result of pricing and mix improvements, offset by inflation and a return to more normal seasonality in the period.
Our wood plant in Malaysia resumed full operations in September after 12 weeks of government lockdowns due to COVID.
In the third quarter period, our Flooring North America segment sales increased 6.9% and operating margins were 11.3% as reported as a result of productivity, pricing and mix improvements, partially offset by inflation.
To support future growth, we are expanding our LVT operations adding approximately $160 million of production, with the initial phase beginning at the end of this year.
In the quarter, our Global Ceramic segment sales increased 9.6% as reported and 9.1% on a constant basis.
Operating margins were 11.9% as a result of higher volume, productivity, pricing and mix improvements, partially offset by inflation.
In Ceramic Europe, record gas prices are increasing the net cost by approximately $25 million in the fourth quarter, and it will take some time for the industry to adjust to the higher cost.
In addition, our fourth quarter calendar has 6% fewer days than the prior year.
Given these factors, we anticipate our fourth quarter adjusted earnings per share to be $2.80 to $2.90, excluding any restructuring charges.

Summary:
Our adjusted earnings per share was $3.95 per share.
Sales for the quarter exceeded $2.8 billion and 9.4% increase as reported and 8.7% on a constant basis.
Earnings per share as reported were $3.93, and excluding charges were 3.95% -- $3.95, excuse me, increasing by 21% versus prior year.
Given these factors, we anticipate our fourth quarter adjusted earnings per share to be $2.80 to $2.90, excluding any restructuring charges.