Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 04, 2015 | 6-May-15 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MOHAWK INDUSTRIES INC | |
Entity Central Index Key | 851968 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 4-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 73,090,554 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $107,041 | $97,877 |
Receivables, net | 1,158,858 | 1,081,963 |
Inventories | 1,505,632 | 1,543,313 |
Prepaid expenses | 247,494 | 225,759 |
Deferred income taxes | 147,027 | 151,784 |
Other current assets | 37,767 | 31,574 |
Total current assets | 3,203,819 | 3,132,270 |
Property, plant and equipment | 5,057,081 | 5,130,213 |
Less: accumulated depreciation | 2,438,448 | 2,427,003 |
Property, plant and equipment, net | 2,618,633 | 2,703,210 |
Goodwill | 1,553,155 | 1,604,352 |
Tradenames | 592,038 | 622,691 |
Other intangible assets subject to amortization, net | 69,808 | 79,318 |
Deferred income taxes and other non-current assets | 247,169 | 143,703 |
Total assets | 8,284,622 | 8,285,544 |
Current liabilities: | ||
Current portion of long-term debt and commercial paper | 1,806,175 | 851,305 |
Accounts payable and accrued expenses | 1,085,805 | 1,104,509 |
Total current liabilities | 2,891,980 | 1,955,814 |
Deferred income taxes | 394,312 | 401,674 |
Long-term debt, less current portion | 606,080 | 1,402,135 |
Other long-term liabilities | 168,455 | 103,108 |
Total liabilities | 4,060,827 | 3,862,731 |
Commitments and contingencies (Notes 7 and 13) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; 60 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 150,000 shares authorized; 81,247 and 81,070 shares issued in 2015 and 2014, respectively | 812 | 811 |
Additional paid-in capital | 1,604,149 | 1,598,887 |
Retained earnings | 3,509,814 | 3,487,079 |
Accumulated other comprehensive (loss) | -655,394 | -429,321 |
Stockholders' Equity before Treasury Stock | 4,459,381 | 4,657,456 |
Less treasury stock at cost; 8,157 shares in 2015 and 2014 | 239,450 | 239,450 |
Total Mohawk Industries, Inc. stockholders' equity | 4,219,931 | 4,418,006 |
Noncontrolling interest | 3,864 | 4,807 |
Total stockholders' equity | 4,223,795 | 4,422,813 |
Total liabilities and shareholders' equity | $8,284,622 | $8,285,544 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value (in usd per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 60,000 | 60,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 81,247,000 | 81,070,000 |
Treasury stock, shares (in shares) | 8,157,000 | 8,157,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Net sales | $1,881,177 | $1,813,095 |
Cost of sales | 1,369,234 | 1,331,740 |
Gross profit | 511,943 | 481,355 |
Selling, general and administrative expenses | 468,169 | 350,620 |
Operating income | 43,774 | 130,735 |
Interest expense | 16,449 | 22,096 |
Other (income) expense, net | -1,083 | 4,890 |
Earnings from continuing operations before income taxes | 28,408 | 103,749 |
Income tax expense | 5,904 | 22,696 |
Net earnings including noncontrolling interest | 22,504 | 81,053 |
Net income (loss) attributable to noncontrolling interest | 158 | -28 |
Net earnings attributable to Mohawk Industries, Inc. | $22,346 | $81,081 |
Basic earnings per share attributable to Mohawk Industries, Inc. (in usd per share) | $0.31 | $1.11 |
Weighted-average common shares outstanding-basic (in shares) | 72,988 | 72,742 |
Diluted earnings per share attributable to Mohawk Industries, Inc. (in usd per share) | $0.30 | $1.11 |
Weighted-average common shares outstanding-diluted (in shares) | 73,530 | 73,282 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings including noncontrolling interest | $22,504 | $81,053 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | -226,159 | -63,082 |
Pension prior service cost and actuarial gain | 86 | 2 |
Other comprehensive income (loss) | -226,073 | -63,080 |
Comprehensive income (loss) | -203,569 | 17,973 |
Comprehensive income (loss) attributable to the noncontrolling interest | 158 | -28 |
Comprehensive income (loss) attributable to Mohawk Industries, Inc. | ($203,727) | $18,001 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Cash flows from operating activities: | ||
Net earnings | $22,504 | $81,053 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Restructuring | 6,657 | 4,661 |
Depreciation and amortization | 85,656 | 80,984 |
Deferred income taxes | 308 | -9,814 |
(Gain)/Loss on disposal of property, plant and equipment | -466 | 406 |
Stock-based compensation expense | 8,436 | 7,614 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Receivables, net | -114,966 | -114,755 |
Inventories | 7,758 | -65,645 |
Accounts payable and accrued expenses | 8,551 | -36,365 |
Other assets and prepaid expenses | -132,668 | 1,858 |
Other liabilities | 58,584 | -21,003 |
Net cash used in operating activities | -49,646 | -71,006 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | -105,794 | -122,081 |
Acquisitions, net of cash acquired | -3,328 | 19 |
Net cash used in investing activities | -109,122 | -122,062 |
Cash flows from financing activities: | ||
Payments on Senior Credit Facilities | -205,302 | -1,010,654 |
Proceeds from Senior Credit Facilities | 16,780 | 682,101 |
Payments on Commercial Paper | -4,841,700 | -287,485 |
Proceeds from Commercial Paper | 5,197,200 | 878,626 |
Payments of acquired debt and other financings | 0 | -12,417 |
Change in asset securitization borrowings, net | -7,100 | 0 |
Payments on other debt | 0 | -52,460 |
Debt issuance costs | -2,528 | 0 |
Change in outstanding checks in excess of cash | 9,729 | 9,056 |
Proceeds and net tax benefit from stock transactions | 8,225 | 6,276 |
Net cash provided by financing activities | 175,304 | 213,043 |
Effect of exchange rate changes on cash and cash equivalents | -7,372 | -1,396 |
Net change in cash and cash equivalents | 9,164 | 18,579 |
Cash and cash equivalents, beginning of period | 97,877 | 54,066 |
Cash and cash equivalents, end of period | $107,041 | $72,645 |
General
General | 3 Months Ended |
Apr. 04, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
General | General |
Interim Reporting | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto, and the Company’s description of critical accounting policies, included in the Company’s 2014 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Results for interim periods are not necessarily indicative of the results for the year. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014. Accordingly, the Company has adopted the provisions of this new accounting standard at the beginning of fiscal year 2015, and has assessed the impact on its consolidated financial statements to be immaterial. | |
In May 2014, the FASB issued Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers. This topic converges the guidance within U.S. GAAP and International Financial Reporting Standards ("IFRS") and supersedes ASC 605, Revenue Recognition. The new standard requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period and early application is not permitted. Accordingly, the Company plans to adopt the provisions of this new accounting standard at the beginning of fiscal year 2017, and is currently assessing the impact on its consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40). This is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year from the date financial statements are issued. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect that the adoption of this standard will have a material effect on its financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. This topic converges the guidance within U.S. GAAP and IFRS. The new standard intends to simplify the presentation of debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The new standard will more closely align the presentation of debt issuance costs under U.S. GAAP with the presentation under comparable IFRS. The new guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within that reporting period and early application is permitted. Accordingly, the Company plans to adopt the provisions of this new accounting standard at the beginning of fiscal year 2016, and is currently assessing the impact on its consolidated financial statements. |
Restructuring_acquisition_and_
Restructuring, acquisition and integration-related costs | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring, acquisition and integration-related costs | Restructuring, acquisition and integration-related costs | |||||||||||||||
The Company incurs costs in connection with acquiring, integrating and restructuring acquisitions and in connection with its global cost-reduction/productivity initiatives. For example: | ||||||||||||||||
• | In connection with acquisition activity, the Company typically incurs costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and | |||||||||||||||
• | In connection with the Company's cost-reduction/productivity initiatives, it typically incurs costs and charges associated with site closings and other facility rationalization actions and workforce reductions. | |||||||||||||||
Restructuring, acquisition transaction and integration-related costs consisted of the following during the three months ended April 4, 2015 and March 29, 2014: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, 2015 | March 29, 2014 | |||||||||||||||
Cost of sales | ||||||||||||||||
Restructuring costs | $ | 9,844 | (a) | 2,059 | ||||||||||||
Acquisition integration-related costs | 132 | 3,578 | ||||||||||||||
Restructuring and integration-related costs | $ | 9,976 | 5,637 | |||||||||||||
Selling, general and administrative expenses | ||||||||||||||||
Restructuring costs | $ | 1,173 | (a) | 2,602 | ||||||||||||
Acquisition integration-related costs | 1,380 | 3,486 | ||||||||||||||
Restructuring, acquisition and integration-related costs | $ | 2,553 | 6,088 | |||||||||||||
(a) The restructuring costs for 2015 and 2014 primarily relate to the Company's actions taken to lower its cost structure and improve efficiencies of manufacturing and distribution operations as the Company adjusted to changing economic conditions as well as actions related to the Company's acquisition of Marazzi and Spano. In 2015 restructuring costs included accelerated depreciation of $4,360. | ||||||||||||||||
The restructuring activity for the three months ended April 4, 2015 is as follows: | ||||||||||||||||
Lease | Asset write-downs | Severance | Other | Total | ||||||||||||
impairments | restructuring | |||||||||||||||
costs | ||||||||||||||||
Balance as of December 31, 2014 | $ | 1,741 | — | 3,037 | 100 | 4,878 | ||||||||||
Provision - Carpet segment | 1,877 | 2,556 | — | — | 4,433 | |||||||||||
Provision - Ceramic segment | — | 869 | — | (194 | ) | 675 | ||||||||||
Provision - Laminate and Wood segment | — | 4,360 | 1,331 | 218 | 5,909 | |||||||||||
Cash payments | (1,358 | ) | — | (1,256 | ) | (570 | ) | (3,184 | ) | |||||||
Non-cash items | — | (7,785 | ) | — | 595 | (7,190 | ) | |||||||||
Balance as of April 4, 2015 | $ | 2,260 | — | 3,112 | 149 | 5,521 | ||||||||||
The Company expects the remaining lease impairments, severance and other restructuring costs to be paid over the next four years. |
Receivables_net
Receivables, net | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Receivables [Abstract] | |||||||
Receivables, net | Receivables, net | ||||||
Receivables, net are as follows: | |||||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Customers, trade | $ | 1,164,732 | 1,081,493 | ||||
Income tax receivable | 9,993 | 12,301 | |||||
Other | 56,239 | 60,772 | |||||
1,230,964 | 1,154,566 | ||||||
Less: allowance for discounts, returns, claims and doubtful accounts | 72,106 | 72,603 | |||||
Receivables, net | $ | 1,158,858 | 1,081,963 | ||||
Inventories
Inventories | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Inventories | Inventories | ||||||
The components of inventories are as follows: | |||||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Finished goods | $ | 1,004,525 | 1,021,188 | ||||
Work in process | 129,823 | 129,471 | |||||
Raw materials | 371,284 | 392,654 | |||||
Total inventories | $ | 1,505,632 | 1,543,313 | ||||
Goodwill_and_intangible_assets
Goodwill and intangible assets | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets | ||||||||||||
The components of goodwill and other intangible assets are as follows: | |||||||||||||
Goodwill: | |||||||||||||
Carpet segment | Ceramic segment | Laminate and Wood segment | Total | ||||||||||
Balance as of December 31, 2014 | |||||||||||||
Goodwill | $ | 199,132 | 1,395,132 | 1,337,513 | 2,931,777 | ||||||||
Accumulated impairment losses | (199,132 | ) | (531,930 | ) | (596,363 | ) | (1,327,425 | ) | |||||
$ | — | 863,202 | 741,150 | 1,604,352 | |||||||||
Goodwill recognized or adjusted during the period | $ | — | — | 2,659 | 2,659 | ||||||||
Currency translation during the period | — | (1,185 | ) | (52,671 | ) | (53,856 | ) | ||||||
Balance as of April 4, 2015 | |||||||||||||
Goodwill | 199,132 | 1,393,947 | 1,287,501 | 2,880,580 | |||||||||
Accumulated impairment losses | (199,132 | ) | (531,930 | ) | (596,363 | ) | (1,327,425 | ) | |||||
$ | — | 862,017 | 691,138 | 1,553,155 | |||||||||
During the first quarter of 2015, the Company acquired certain assets of a distribution business in the Laminate and Wood segment for $2,822, resulting in a preliminary goodwill allocation of $2,659. | |||||||||||||
Intangible assets not subject to amortization: | |||||||||||||
Tradenames | |||||||||||||
Balance as of December 31, 2014 | $ | 622,691 | |||||||||||
Currency translation during the period | (30,653 | ) | |||||||||||
Balance as of April 4, 2015 | $ | 592,038 | |||||||||||
Intangible assets subject to amortization: | |||||||||||||
Gross carrying amounts: | Customer | Patents | Other | Total | |||||||||
relationships | |||||||||||||
Balance as of December 31, 2014 | $ | 354,768 | 270,466 | 1,479 | 626,713 | ||||||||
Currency translation during the period | (20,157 | ) | (26,351 | ) | (15 | ) | (46,523 | ) | |||||
Balance as of April 4, 2015 | $ | 334,611 | 244,115 | 1,464 | 580,190 | ||||||||
Accumulated amortization: | Customer | Patents | Other | Total | |||||||||
relationships | |||||||||||||
Balance as of December 31, 2014 | $ | 320,851 | 225,875 | 669 | 547,395 | ||||||||
Amortization during the period | 1,671 | 3,405 | 30 | 5,106 | |||||||||
Currency translation during the period | (20,014 | ) | (22,095 | ) | (10 | ) | (42,119 | ) | |||||
Balance as of April 4, 2015 | $ | 302,508 | 207,185 | 689 | 510,382 | ||||||||
Intangible assets subject to amortization, net | $ | 32,103 | 36,930 | 775 | 69,808 | ||||||||
Three Months Ended | |||||||||||||
April 4, | March 29, | ||||||||||||
2015 | 2014 | ||||||||||||
Amortization expense | $ | 5,106 | 6,038 | ||||||||||
Accounts_payable_and_accrued_e
Accounts payable and accrued expenses | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Payables and Accruals [Abstract] | |||||||
Accounts payable and accrued expenses | Accounts payable and accrued expenses | ||||||
Accounts payable and accrued expenses are as follows: | |||||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Outstanding checks in excess of cash | $ | 25,812 | 16,083 | ||||
Accounts payable, trade | 634,264 | 622,360 | |||||
Accrued expenses | 262,121 | 269,668 | |||||
Product warranties | 32,415 | 29,350 | |||||
Accrued interest | 12,180 | 28,365 | |||||
Accrued compensation and benefits | 119,013 | 138,683 | |||||
Total accounts payable and accrued expenses | $ | 1,085,805 | 1,104,509 | ||||
Product_warranties
Product warranties | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Product Warranties Disclosures [Abstract] | |||||||
Product warranties | Product warranties | ||||||
The Company warrants certain qualitative attributes of its products for up to 50 years. The Company records a provision for estimated warranty and related costs in accrued expenses, based on historical experience, and periodically adjusts these provisions to reflect actual experience. | |||||||
The activity related to warranty obligations is as follows: | |||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Balance at beginning of period | $ | 29,350 | 35,818 | ||||
Warranty claims paid during the period | (8,475 | ) | (14,024 | ) | |||
Warranty expense during the period | 11,540 | 11,466 | |||||
Balance at end of period | $ | 32,415 | 33,260 | ||||
Accumulated_other_comprehensiv
Accumulated other comprehensive income (loss) | 3 Months Ended | |||||||||
Apr. 04, 2015 | ||||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | |||||||||
The changes in accumulated other comprehensive income by component, net of tax, for the three months ended April 4, 2015 are as follows: | ||||||||||
Foreign currency translation adjustments | Pensions (1) | Total | ||||||||
Balance as of December 31, 2014 | $ | (428,505 | ) | (816 | ) | (429,321 | ) | |||
Current period other comprehensive income (loss) before reclassifications | (226,159 | ) | 86 | (226,073 | ) | |||||
Balance as of April 4, 2015 | $ | (654,664 | ) | (730 | ) | (655,394 | ) | |||
(1) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 13 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014). |
Stockbased_compensation
Stock-based compensation | 3 Months Ended |
Apr. 04, 2015 | |
Share-based Compensation [Abstract] | |
Stock-based compensation | Stock-based compensation |
The Company recognizes compensation expense for all share-based payments granted based on the grant-date fair value estimated in accordance with the provisions of the FASB ASC 718-10. Compensation expense is recognized on a straight-line basis over the options’ or other awards’ estimated lives for fixed awards with ratable vesting provisions. | |
Under the Company’s 2012 Incentive Plan (“2012 Plan”), the Company's principal stock compensation plan as of May 9, 2012, the Company reserved up to a maximum of 3,200 shares of common stock for issuance upon the grant or exercise of stock options, restricted stock, restricted stock units (“RSUs”) and other types of awards, to directors and key employees through 2022. Option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of the grant and generally vest between three and five years with a 10-year contractual term. Restricted stock and RSUs are granted with a price equal to the market price of the Company’s common stock on the date of the grant and generally vest between three and five years. | |
The Company did not grant any options for the three months ended April 4, 2015 and March 29, 2014. The Company recognized stock-based compensation costs related to stock options of $155 ($98 net of taxes) and $283 ($179 net of taxes) for the three months ended April 4, 2015 and March 29, 2014, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for stock options granted to employees and outside directors, net of estimated forfeitures, was $90 as of April 4, 2015, and will be recognized as expense over a weighted-average period of approximately 1.39 years. | |
The fair value of the option award is estimated on the date of grant using the Black-Scholes-Merton valuation model. Expected volatility is based on the historical volatility of the Company’s common stock. The Company uses historical data to estimate option exercise and forfeiture rates within the valuation model. | |
The Company granted 158 RSUs at a weighted-average grant-date fair value of $182.99 per unit for the three months ended April 4, 2015. The Company granted 189 RSUs at a weighted-average grant-date fair value per unit of $144.75 for the three months ended March 29, 2014. The Company recognized stock-based compensation costs related to the issuance of RSUs of $8,281 ($5,246 net of taxes) and $7,331 ($4,644 net of taxes) for the three months ended April 4, 2015 and March 29, 2014, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $47,047 as of April 4, 2015, and will be recognized as expense over a weighted-average period of approximately 2.31 years. |
Other_income_expense_net
Other (income) expense, net | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Other Nonoperating Income (Expense) [Abstract] | |||||||
Other (income) expense, net | Other (income) expense, net | ||||||
Other (income) expense is as follows: | |||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Foreign currency (gains) losses, net | $ | (457 | ) | 5,889 | |||
All other, net | (626 | ) | (999 | ) | |||
Total other (income) expense, net | $ | (1,083 | ) | 4,890 | |||
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings per share | Earnings per share | ||||||
Basic earnings per common share is computed by dividing earnings from continuing operations attributable to Mohawk Industries, Inc. by the weighted average number of common shares outstanding during each period. Diluted earnings per common share assumes the exercise of outstanding stock options and the vesting of RSUs using the treasury stock method when the effects of such assumptions are dilutive. A reconciliation of earnings from continuing operations attributable to Mohawk Industries, Inc. and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share is as follows: | |||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Earnings from continuing operations attributable to Mohawk Industries, Inc. | $ | 22,346 | 81,081 | ||||
Weighted-average common shares outstanding-basic and diluted: | |||||||
Weighted-average common shares outstanding—basic | 72,988 | 72,742 | |||||
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net | 542 | 540 | |||||
Weighted-average common shares outstanding-diluted | 73,530 | 73,282 | |||||
Earnings per share from continuing operations attributable to Mohawk Industries, Inc. | |||||||
Basic | $ | 0.31 | 1.11 | ||||
Diluted | $ | 0.3 | 1.11 | ||||
Segment_reporting
Segment reporting | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Segment reporting | Segment reporting | ||||||
The Company has three reporting segments: the Carpet segment, the Ceramic segment and the Laminate and Wood segment. The Carpet segment designs, manufactures, sources and markets its floor covering product lines, including carpets, ceramic tile, laminate, rugs, carpet pad, hardwood and resilient, which it distributes primarily in North America through its network of regional distribution centers and satellite warehouses using company-operated trucks, common carrier or rail transportation. The segment’s product lines are sold through various selling channels, which include independent floor covering retailers, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial dealers and commercial end users. The Ceramic segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone and other products, which it distributes primarily in North America, Europe and Russia through its network of regional distribution centers and Company-operated service centers using company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through Company-operated service centers, independent distributors, home center retailers, tile and flooring retailers and contractors. The Laminate and Wood segment designs, manufactures, sources, licenses and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard ("MDF"), chipboards and other wood products, which it distributes primarily in North America and Europe through various selling channels, which include retailers, independent distributors and home centers. | |||||||
The accounting policies for each operating segment are consistent with the Company’s policies for the consolidated financial statements. Amounts disclosed for each segment are prior to any elimination or consolidation entries. Corporate general and administrative expenses attributable to each segment are estimated and allocated accordingly. Segment performance is evaluated based on operating income. | |||||||
Segment information is as follows: | |||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Net sales: | |||||||
Carpet segment | $ | 739,264 | 674,926 | ||||
Ceramic segment | 719,828 | 695,094 | |||||
Laminate and Wood segment | 448,398 | 468,008 | |||||
Intersegment sales | (26,313 | ) | (24,933 | ) | |||
$ | 1,881,177 | 1,813,095 | |||||
Operating income (loss): | |||||||
Carpet segment | $ | (89,994 | ) | 34,271 | |||
Ceramic segment | 85,327 | 60,659 | |||||
Laminate and Wood segment | 58,901 | 44,119 | |||||
Corporate and intersegment eliminations | (10,460 | ) | (8,314 | ) | |||
$ | 43,774 | 130,735 | |||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Assets: | |||||||
Carpet segment | $ | 2,015,550 | 1,986,081 | ||||
Ceramic segment | 3,584,471 | 3,542,594 | |||||
Laminate and Wood segment | 2,406,286 | 2,542,566 | |||||
Corporate and intersegment eliminations | 278,315 | 214,303 | |||||
$ | 8,284,622 | 8,285,544 | |||||
Commitments_and_contingencies
Commitments and contingencies | 3 Months Ended |
Apr. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies |
The Company is involved in litigation from time to time in the regular course of its business. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject. | |
Beginning in August 2010, a series of civil lawsuits were initiated in several U.S. federal courts alleging that certain manufacturers of polyurethane foam products and competitors of the Company’s carpet underlay division had engaged in price fixing in violation of U.S. antitrust laws. The Company has been named as a defendant in a number of individual cases (the first filed on August 26, 2010), as well as in two consolidated amended class action complaints the first filed on February 28, 2011, on behalf of a class of all direct purchasers of polyurethane foam products, and the second filed on March 21, 2011, on behalf of a class of indirect purchasers. All pending cases in which the Company has been named as a defendant have been filed in or transferred to the U.S. District Court for the Northern District of Ohio for consolidated pre-trial proceedings under the name In re: Polyurethane Foam Antitrust Litigation, Case No. 1:10-MDL-02196. | |
In these actions, the plaintiffs, on behalf of themselves and/or a class of purchasers, seek damages allegedly suffered as a result of alleged overcharges in the price of polyurethane foam products from at least 1999 to the present. The direct purchaser class claimed damages from all of the defendants named in the lawsuit of up to approximately $867,400. Any damages actually awarded at trial are subject to being tripled under US antitrust laws. The amount of damages in the remaining cases varies or has not yet been specified by the plaintiffs. Each plaintiff also seeks attorney fees, pre-judgment and post-judgment interest, court costs and injunctive relief against future violations. | |
In April 2011, the Company filed a motion to dismiss the class action claims brought by the direct purchasers, and in May 2011, the Company moved to dismiss the claims brought by the indirect purchasers. On July 19, 2011, the Court denied all defendants’ motions to dismiss. On April 9, 2014, the Court certified the direct and indirect purchaser classes. The Company sought permission to appeal the certification order on April 24, 2014, and the petition was denied by the U.S. Court of Appeals | |
for the Sixth Circuit on September 29, 2014. The Company appealed the Sixth Circuit's order to the United States Supreme Court, which entered an order declining the review on March 2, 2015. Fact discovery in almost all cases is now complete and, in August 2014, the Company and other defendants filed motions for summary judgment against the direct purchaser class. In February 2015, the Court denied all summary judgment motions. | |
On April 23, 2015, the Court consolidated nine lawsuits involving non-class claims filed against the Company by direct purchasers of polyurethane foam. These consolidated cases have been scheduled for trial to begin August 18, 2015. The Company has agreements in principle to settle two of these cases and is preparing to file motions for summary judgment with respect to the remaining seven cases. | |
On March 23, 2015, the Company entered into an agreement to settle all claims brought by the class of direct purchasers, and on April 30, 2015, the Company entered into an agreement to settle all claims brought by the class of indirect purchasers. Both settlement agreements are subject to court approval, which the Company expects to receive. The Company continues to deny all allegations of wrongdoing but is settling to avoid the uncertainty, risk, expense and distraction of protracted litigation. The Company remains a defendant in a number of cases involving other purchasers of polyurethane foam products not sold by the Company. The amount of the damages in the remaining cases varies or has not yet been specified by the plaintiffs. Each plaintiff also seeks attorney fees, pre-judgment and post-judgment interest, court costs and injunctive relief against future violations. | |
In December 2011, the Company was named as a defendant in a Canadian Class action, Hi! Neighbor Floor Covering Co. Limited v. Hickory Springs Manufacturing Company, et al., filed in the Superior Court of Justice of Ontario, Canada and Options Consommateures v. Vitafoam, Inc. et.al., filed in the Superior Court of Justice of Quebec, Montreal, Canada, both of which allege similar claims against the Company as raised in the U.S. actions and seek unspecified damages and punitive damages. The Company denies all of the allegations in these actions and will vigorously defend itself. The Company has reached an agreement in principle to settle the Canadian actions, but the settlement has not yet been finalized. | |
During the three months ended April 4, 2015 the Company has recorded a $125,000 charge within selling, general and administrative expenses for the settlement and defense of the U.S. cases. The Company believes that adequate provisions for resolution of all of these cases have been made. These cases are subject to significant contingencies and uncertainties, and the Company is unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that the ultimate outcome of the remaining cases will have a material adverse effect on its financial condition, but the resolution of such cases could have a material adverse effect on the Company’s results of operations, cash flows or liquidity in a given quarter or year. | |
In January 2012, the Company received a €23,789 assessment from the Belgian tax authority related to its year ended December 31, 2008, asserting that the Company had understated its Belgian taxable income for that year. The Company filed a formal protest in the first quarter of 2012 refuting the Belgian tax authority's position. The Belgian tax authority set aside the assessment in the third quarter of 2012 and refunded all related deposits, including interest income of €1,583 earned on such deposits. However, on October 23, 2012, the Belgian tax authority notified the Company of its intent to increase the Company's taxable income for the year ended December 31, 2008 under a revised theory. | |
However on December 28, 2012, the Belgian tax authority issued assessments for the years ended December 31, 2005 and December 31, 2009, in the amounts of €46,135 and €35,567, respectively, including penalties, but excluding interest. The Company filed a formal protest during the first quarter of 2013 relating to the new assessments. In September 2013, the Belgian tax authority denied the Company's protests, and the Company has brought these two years before the Court of First Instance in Bruges. | |
In December 2013, the Belgian tax authority issued additional assessments related to the years ended December 31, 2006, 2007, and 2010, in the amounts of €38,817, €39,635, and €43,117, respectively, including penalties, but excluding interest. The Company filed formal protests during the first quarter of 2014, refuting the Belgian tax authority's position for each of the years assessed. In the quarter ended June 28, 2014, the Company received a formal assessment for the year ended December 31, 2008, totaling €30,131, against which the Company also submitted its formal protest. All 4 additional years were brought before the Court of First Appeal in November 2014. | |
In January of 2015, the Company met with the Court of First Appeal in Bruges and agreed with the Belgium tax authorities to consolidate and argue the issues regarding the years 2005 and 2009, and apply the ruling to all of the open years (to the extent there are no additional facts/procedural arguments in the other years). | |
The Company continues to disagree with the views of the Belgian tax authority on this matter and will persist in its vigorous defense. Although there can be no assurances, the Company believes the ultimate outcome of these actions will not have a material adverse effect on its financial condition but could have a material adverse effect on its results of operations, liquidity or cash flows in a given quarter or year. | |
The Company believes that adequate provisions for resolution of all contingencies, claims and pending litigation have been made for probable losses that are reasonably estimable. These contingencies are subject to significant uncertainties and we are unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that the ultimate outcome of these actions will have a material adverse effect on its financial condition but could have a material adverse effect on its results of operations, cash flows or liquidity in a given quarter or year. |
Debt
Debt | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Debt | Debt | ||||||||||||
Senior Credit Facility | |||||||||||||
On September 25, 2013, the Company entered into a $1,000,000, 5-year, senior revolving credit facility (the "2013 Senior Credit Facility"). The 2013 Senior Credit Facility provided for a maximum of $1,000,000 of revolving credit, including limited amounts of credit in the form of letters of credit and swingline loans. The Company paid financing costs of $1,836 in connection with its 2013 Senior Credit Facility. These costs were deferred and, along with unamortized costs of $11,440 related to the Company’s previous Credit Facility, were amortized over the term of the 2013 Senior Credit Facility. | |||||||||||||
On March 26, 2015, the Company amended and restated the 2013 Senior Credit Facility increasing its size from $1,000,000 to $1,800,000 and extending the maturity from September 25, 2018 to March 26, 2020 (the "2015 Senior Credit Facility"). The 2015 Senior Credit Facility eliminates certain provisions in the 2013 Senior Credit Facility, including those that: (a) accelerated the maturity date to 90 days prior to the maturity of senior notes due in January 2016 if certain specified liquidity levels were not met; and (b) required that certain subsidiaries guarantee the Company's obligations if the Company’s credit ratings fell below investment grade. The 2015 Senior Credit Facility also modified certain negative covenants to provide the Company with additional flexibility, including that to make acquisitions and incur indebtedness. | |||||||||||||
At the Company's election, revolving loans under the 2015 Senior Credit Facility bear interest at annual rates equal to either (a) LIBOR for 1, 2, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 1.00% and 1.75%, or (b) the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds rate plus 0.5%, and a monthly LIBOR rate plus 1.0%, plus an applicable margin ranging between 0.00% and 0.75%. The Company also pays a commitment fee to the Lenders under the 2015 Senior Credit Facility on the average amount by which the aggregate commitments of the Lenders' exceed utilization of the 2015 Senior Credit Facility ranging from 0.10% to 0.225% per annum. The applicable margins and the commitment fee are determined based on whichever of the Company's Consolidated Net Leverage Ratio or its senior unsecured debt rating (or if not available, corporate family rating) results in the lower applicable margins and commitment fee (with applicable margins and the commitment fee increasing as that ratio increases or those ratings decline, as applicable). | |||||||||||||
The obligations of the Company and its subsidiaries in respect of the 2015 Senior Credit Facility are unsecured. | |||||||||||||
The 2015 Senior Credit Facility includes certain affirmative and negative covenants that impose restrictions on the Company's financial and business operations, including limitations on liens, subsidiary indebtedness, fundamental changes, asset dispositions, dividends and other similar restricted payments, transactions with affiliates, future negative pledges, and changes in the nature of the Company's business. These limitations are subject to exceptions. The Company is also required to maintain a Consolidated Interest Coverage Ratio of at least 3.0 to 1.0 and a Consolidated Net Leverage Ratio of no more than 3.75 to 1.0, each as of the last day of any fiscal quarter. | |||||||||||||
The 2015 Senior Credit Facility also contains customary representations and warranties and events of default, subject to customary grace periods. | |||||||||||||
The Company paid financing costs of $2,528 in connection with its 2015 Senior Credit Facility. These costs were deferred and, along with unamortized costs of $8,654 related to the Company’s 2013 Senior Credit Facility, are being amortized over the term of the 2015 Senior Credit Facility. | |||||||||||||
As of April 4, 2015, amounts utilized under the 2015 Senior Credit Facility included $6,640 of borrowings and $1,381 of standby letters of credit related to various insurance contracts and foreign vendor commitments. The outstanding borrowings of $657,100 under its commercial paper program as of April 4, 2015 are a reduction of the availability of the 2015 Senior Credit Facility. The Company has utilized $665,121 under the 2015 Senior Credit Facility resulting in a total of $1,134,879 available under the 2015 Senior Credit Facility. | |||||||||||||
Commercial Paper | |||||||||||||
On February 28, 2014, the Company established a commercial paper program for the issuance of unsecured commercial paper in the United States capital markets. Under the commercial paper program, the Company issues commercial paper notes from time to time in an aggregate amount not to exceed $1,000,000 outstanding at any time, subject to availability under the 2015 Senior Credit Facility, which the Company uses as a liquidity backstop. The commercial paper notes will have maturities ranging from one day to 397 days and will not be subject to voluntary prepayment by the Company or redemption prior to maturity. The commercial paper notes will rank pari passu with all of the Company's other unsecured and unsubordinated indebtedness. | |||||||||||||
The proceeds from the sale of commercial paper notes will be available for general corporate purposes. The Company used the initial proceeds from the sale of commercial paper notes to repay borrowings under its 2013 Senior Credit Facility and certain of its industrial revenue bonds. As of April 4, 2015, the amount utilized under the commercial paper program was $657,100 with a weighted-average interest rate and maturity period of 0.60% and 27 days, respectively. | |||||||||||||
Senior Notes | |||||||||||||
On January 31, 2013, the Company issued $600,000 aggregate principal amount of 3.85% Senior Notes due February 1, 2023. The Company paid financing costs of $6,000 in connection with the 3.85% Senior Notes. These costs were deferred and are being amortized over the term of the 3.85% Senior Notes. | |||||||||||||
On January 17, 2006, the Company issued $900,000 aggregate principal amount of 6.125% notes due January 15, 2016. Interest payable on these notes is subject to adjustment if either Moody’s or S&P, or both, upgrades or downgrades the rating assigned to the Company. Each rating agency downgrade results in a 0.25% increase in the interest rate, subject to a maximum increase of 1% per rating agency. If later the rating of these notes improves, then the interest rates would be reduced accordingly. Each 0.25% increase in the interest rate of these notes would increase the Company’s interest expense by approximately $63 per quarter per $100,000 of outstanding notes. The current rate in effect is 6.125%. Any future downgrades in the Company’s credit ratings could increase the cost of its existing credit and adversely affect the cost of and ability to obtain additional credit in the future. | |||||||||||||
On August 15, 2014, the Company purchased for cash approximately $200,000 aggregate principal amount of its outstanding 6.125% senior notes due January 15, 2016 at a price equal to 107.73% of the principal amount, resulting in a premium to redeeming noteholders of approximately $15,450 and fees of $1,080 associated with the redemption. The premium as well as the fees are included in interest expense on the condensed consolidated statement of operations for the three months ended April 4, 2015. | |||||||||||||
On November 3, 2014, the Company purchased for cash approximately $54,400 aggregate principal amount of its outstanding 6.125% senior notes due January 15, 2016 at a price equal to 106.38% of the principal amount, resulting in a premium to redeeming noteholders of approximately $3,500. The premium is included in interest expense on the condensed consolidated statement of operations as at April 4, 2015. | |||||||||||||
Accounts Receivable Securitization | |||||||||||||
On December 19, 2012, the Company entered into a three-year on-balance sheet trade accounts receivable securitization agreement (the "Securitization Facility"). On September 11, 2014, the Company made certain modifications to its Securitization Facility, which modifications, among other things, increased the aggregate borrowings available under the facility from $300,000 to $500,000 and decreased the interest margins on certain borrowings. Under the terms of the Securitization Facility, certain subsidiaries of the Company sell at a discount certain of their trade accounts receivable (the “Receivables”) to Mohawk Factoring, LLC (“Factoring”) on a revolving basis. Factoring is a wholly owned, bankruptcy remote subsidiary of the Company, meaning that Factoring is a separate legal entity whose assets are available to satisfy the claims of the creditors of Factoring only, not the creditors of the Company or the Company’s other subsidiaries. To fund such purchases, Factoring may borrow up to $500,000 based on the amount of eligible Receivables owned by Factoring, and Factoring has granted a security interest in all of such Receivables to the third-party lending group as collateral for such borrowings. Amounts loaned to Factoring under the Securitization Facility bear interest at commercial paper interest rates, in the case of lenders that are commercial paper conduits, or LIBOR, in the case of lenders that are not commercial paper conduits, in each case, plus an applicable margin of 0.70% per annum. Factoring also pays a commitment fee at a per annum rate of 0.35% on the unused amount of each lender’s commitment. | |||||||||||||
At April 4, 2015, the amount utilized under the Securitization Facility was $492,900, which was secured by $747,879 of Receivables. | |||||||||||||
The fair values and carrying values of our debt instruments are detailed as follows: | |||||||||||||
April 4, 2015 | December 31, 2014 | ||||||||||||
Fair Value | Carrying | Fair Value | Carrying | ||||||||||
Value | Value | ||||||||||||
3.85% senior notes, payable February 1, 2023; interest payable semiannually | $ | 603,804 | 600,000 | 603,180 | 600,000 | ||||||||
6.125% notes, payable January 15, 2016; interest payable semiannually | 670,738 | 645,555 | 677,833 | 645,555 | |||||||||
Commercial paper | 657,100 | 657,100 | 301,600 | 301,600 | |||||||||
Five-year senior secured credit facility, due March 26, 2020 | 6,640 | 6,640 | 195,665 | 195,665 | |||||||||
Securitization facility | 492,900 | 492,900 | 500,000 | 500,000 | |||||||||
Capital leases and other | 10,060 | 10,060 | 10,620 | 10,620 | |||||||||
Total debt | 2,441,242 | 2,412,255 | 2,288,898 | 2,253,440 | |||||||||
Less current portion of long term debt and commercial paper | 1,806,175 | 1,806,175 | 851,305 | 851,305 | |||||||||
Long-term debt, less current portion | $ | 635,067 | 606,080 | 1,437,593 | 1,402,135 | ||||||||
The fair values of the Company’s debt instruments were estimated using market observable inputs, including quoted prices in active markets, market indices and interest rate measurements. Within the hierarchy of fair value measurements, these are Level 2 fair values. |
Restructuring_acquisition_and_1
Restructuring, acquisition and integration-related costs (Tables) | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Schedule of restructuring reserve by type of cost | Restructuring, acquisition transaction and integration-related costs consisted of the following during the three months ended April 4, 2015 and March 29, 2014: | |||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, 2015 | March 29, 2014 | |||||||||||||||
Cost of sales | ||||||||||||||||
Restructuring costs | $ | 9,844 | (a) | 2,059 | ||||||||||||
Acquisition integration-related costs | 132 | 3,578 | ||||||||||||||
Restructuring and integration-related costs | $ | 9,976 | 5,637 | |||||||||||||
Selling, general and administrative expenses | ||||||||||||||||
Restructuring costs | $ | 1,173 | (a) | 2,602 | ||||||||||||
Acquisition integration-related costs | 1,380 | 3,486 | ||||||||||||||
Restructuring, acquisition and integration-related costs | $ | 2,553 | 6,088 | |||||||||||||
(a) The restructuring costs for 2015 and 2014 primarily relate to the Company's actions taken to lower its cost structure and improve efficiencies of manufacturing and distribution operations as the Company adjusted to changing economic conditions as well as actions related to the Company's acquisition of Marazzi and Spano. In 2015 restructuring costs included accelerated depreciation of $4,360. | ||||||||||||||||
Schedule of restructuring and related costs | The restructuring activity for the three months ended April 4, 2015 is as follows: | |||||||||||||||
Lease | Asset write-downs | Severance | Other | Total | ||||||||||||
impairments | restructuring | |||||||||||||||
costs | ||||||||||||||||
Balance as of December 31, 2014 | $ | 1,741 | — | 3,037 | 100 | 4,878 | ||||||||||
Provision - Carpet segment | 1,877 | 2,556 | — | — | 4,433 | |||||||||||
Provision - Ceramic segment | — | 869 | — | (194 | ) | 675 | ||||||||||
Provision - Laminate and Wood segment | — | 4,360 | 1,331 | 218 | 5,909 | |||||||||||
Cash payments | (1,358 | ) | — | (1,256 | ) | (570 | ) | (3,184 | ) | |||||||
Non-cash items | — | (7,785 | ) | — | 595 | (7,190 | ) | |||||||||
Balance as of April 4, 2015 | $ | 2,260 | — | 3,112 | 149 | 5,521 | ||||||||||
Receivables_net_Tables
Receivables, net (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Receivables [Abstract] | |||||||
Net components of receivables | Receivables, net are as follows: | ||||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Customers, trade | $ | 1,164,732 | 1,081,493 | ||||
Income tax receivable | 9,993 | 12,301 | |||||
Other | 56,239 | 60,772 | |||||
1,230,964 | 1,154,566 | ||||||
Less: allowance for discounts, returns, claims and doubtful accounts | 72,106 | 72,603 | |||||
Receivables, net | $ | 1,158,858 | 1,081,963 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Net components of inventories | The components of inventories are as follows: | ||||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Finished goods | $ | 1,004,525 | 1,021,188 | ||||
Work in process | 129,823 | 129,471 | |||||
Raw materials | 371,284 | 392,654 | |||||
Total inventories | $ | 1,505,632 | 1,543,313 | ||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of goodwill | Goodwill: | ||||||||||||
Carpet segment | Ceramic segment | Laminate and Wood segment | Total | ||||||||||
Balance as of December 31, 2014 | |||||||||||||
Goodwill | $ | 199,132 | 1,395,132 | 1,337,513 | 2,931,777 | ||||||||
Accumulated impairment losses | (199,132 | ) | (531,930 | ) | (596,363 | ) | (1,327,425 | ) | |||||
$ | — | 863,202 | 741,150 | 1,604,352 | |||||||||
Goodwill recognized or adjusted during the period | $ | — | — | 2,659 | 2,659 | ||||||||
Currency translation during the period | — | (1,185 | ) | (52,671 | ) | (53,856 | ) | ||||||
Balance as of April 4, 2015 | |||||||||||||
Goodwill | 199,132 | 1,393,947 | 1,287,501 | 2,880,580 | |||||||||
Accumulated impairment losses | (199,132 | ) | (531,930 | ) | (596,363 | ) | (1,327,425 | ) | |||||
$ | — | 862,017 | 691,138 | 1,553,155 | |||||||||
Schedule of indefinite life assets not subject to amortization | Intangible assets not subject to amortization: | ||||||||||||
Tradenames | |||||||||||||
Balance as of December 31, 2014 | $ | 622,691 | |||||||||||
Currency translation during the period | (30,653 | ) | |||||||||||
Balance as of April 4, 2015 | $ | 592,038 | |||||||||||
Schedule of intangible assets subject to amortization | Intangible assets subject to amortization: | ||||||||||||
Gross carrying amounts: | Customer | Patents | Other | Total | |||||||||
relationships | |||||||||||||
Balance as of December 31, 2014 | $ | 354,768 | 270,466 | 1,479 | 626,713 | ||||||||
Currency translation during the period | (20,157 | ) | (26,351 | ) | (15 | ) | (46,523 | ) | |||||
Balance as of April 4, 2015 | $ | 334,611 | 244,115 | 1,464 | 580,190 | ||||||||
Accumulated amortization: | Customer | Patents | Other | Total | |||||||||
relationships | |||||||||||||
Balance as of December 31, 2014 | $ | 320,851 | 225,875 | 669 | 547,395 | ||||||||
Amortization during the period | 1,671 | 3,405 | 30 | 5,106 | |||||||||
Currency translation during the period | (20,014 | ) | (22,095 | ) | (10 | ) | (42,119 | ) | |||||
Balance as of April 4, 2015 | $ | 302,508 | 207,185 | 689 | 510,382 | ||||||||
Intangible assets subject to amortization, net | $ | 32,103 | 36,930 | 775 | 69,808 | ||||||||
Schedule of intangible assets amortization expense | |||||||||||||
Three Months Ended | |||||||||||||
April 4, | March 29, | ||||||||||||
2015 | 2014 | ||||||||||||
Amortization expense | $ | 5,106 | 6,038 | ||||||||||
Accounts_payable_and_accrued_e1
Accounts payable and accrued expenses (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Payables and Accruals [Abstract] | |||||||
Components of accounts payable and accrued expenses | Accounts payable and accrued expenses are as follows: | ||||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Outstanding checks in excess of cash | $ | 25,812 | 16,083 | ||||
Accounts payable, trade | 634,264 | 622,360 | |||||
Accrued expenses | 262,121 | 269,668 | |||||
Product warranties | 32,415 | 29,350 | |||||
Accrued interest | 12,180 | 28,365 | |||||
Accrued compensation and benefits | 119,013 | 138,683 | |||||
Total accounts payable and accrued expenses | $ | 1,085,805 | 1,104,509 | ||||
Product_warranties_Tables
Product warranties (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Product Warranties Disclosures [Abstract] | |||||||
Provision for warranty obligations | The activity related to warranty obligations is as follows: | ||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Balance at beginning of period | $ | 29,350 | 35,818 | ||||
Warranty claims paid during the period | (8,475 | ) | (14,024 | ) | |||
Warranty expense during the period | 11,540 | 11,466 | |||||
Balance at end of period | $ | 32,415 | 33,260 | ||||
Accumulated_other_comprehensiv1
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended | |||||||||
Apr. 04, 2015 | ||||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Schedule of accumulated other comprehensive income | The changes in accumulated other comprehensive income by component, net of tax, for the three months ended April 4, 2015 are as follows: | |||||||||
Foreign currency translation adjustments | Pensions (1) | Total | ||||||||
Balance as of December 31, 2014 | $ | (428,505 | ) | (816 | ) | (429,321 | ) | |||
Current period other comprehensive income (loss) before reclassifications | (226,159 | ) | 86 | (226,073 | ) | |||||
Balance as of April 4, 2015 | $ | (654,664 | ) | (730 | ) | (655,394 | ) | |||
(1) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 13 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014). |
Other_income_expense_net_Table
Other (income) expense, net (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Other Nonoperating Income (Expense) [Abstract] | |||||||
Summary of other (income) expense, net | Other (income) expense is as follows: | ||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Foreign currency (gains) losses, net | $ | (457 | ) | 5,889 | |||
All other, net | (626 | ) | (999 | ) | |||
Total other (income) expense, net | $ | (1,083 | ) | 4,890 | |||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings per share | |||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Earnings from continuing operations attributable to Mohawk Industries, Inc. | $ | 22,346 | 81,081 | ||||
Weighted-average common shares outstanding-basic and diluted: | |||||||
Weighted-average common shares outstanding—basic | 72,988 | 72,742 | |||||
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net | 542 | 540 | |||||
Weighted-average common shares outstanding-diluted | 73,530 | 73,282 | |||||
Earnings per share from continuing operations attributable to Mohawk Industries, Inc. | |||||||
Basic | $ | 0.31 | 1.11 | ||||
Diluted | $ | 0.3 | 1.11 | ||||
Segment_reporting_Tables
Segment reporting (Tables) | 3 Months Ended | ||||||
Apr. 04, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Summary of segment information | Segment information is as follows: | ||||||
Three Months Ended | |||||||
April 4, | March 29, | ||||||
2015 | 2014 | ||||||
Net sales: | |||||||
Carpet segment | $ | 739,264 | 674,926 | ||||
Ceramic segment | 719,828 | 695,094 | |||||
Laminate and Wood segment | 448,398 | 468,008 | |||||
Intersegment sales | (26,313 | ) | (24,933 | ) | |||
$ | 1,881,177 | 1,813,095 | |||||
Operating income (loss): | |||||||
Carpet segment | $ | (89,994 | ) | 34,271 | |||
Ceramic segment | 85,327 | 60,659 | |||||
Laminate and Wood segment | 58,901 | 44,119 | |||||
Corporate and intersegment eliminations | (10,460 | ) | (8,314 | ) | |||
$ | 43,774 | 130,735 | |||||
April 4, | December 31, | ||||||
2015 | 2014 | ||||||
Assets: | |||||||
Carpet segment | $ | 2,015,550 | 1,986,081 | ||||
Ceramic segment | 3,584,471 | 3,542,594 | |||||
Laminate and Wood segment | 2,406,286 | 2,542,566 | |||||
Corporate and intersegment eliminations | 278,315 | 214,303 | |||||
$ | 8,284,622 | 8,285,544 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Schedule of carrying values and estimated fair values of debt instruments | The fair values and carrying values of our debt instruments are detailed as follows: | ||||||||||||
April 4, 2015 | December 31, 2014 | ||||||||||||
Fair Value | Carrying | Fair Value | Carrying | ||||||||||
Value | Value | ||||||||||||
3.85% senior notes, payable February 1, 2023; interest payable semiannually | $ | 603,804 | 600,000 | 603,180 | 600,000 | ||||||||
6.125% notes, payable January 15, 2016; interest payable semiannually | 670,738 | 645,555 | 677,833 | 645,555 | |||||||||
Commercial paper | 657,100 | 657,100 | 301,600 | 301,600 | |||||||||
Five-year senior secured credit facility, due March 26, 2020 | 6,640 | 6,640 | 195,665 | 195,665 | |||||||||
Securitization facility | 492,900 | 492,900 | 500,000 | 500,000 | |||||||||
Capital leases and other | 10,060 | 10,060 | 10,620 | 10,620 | |||||||||
Total debt | 2,441,242 | 2,412,255 | 2,288,898 | 2,253,440 | |||||||||
Less current portion of long term debt and commercial paper | 1,806,175 | 1,806,175 | 851,305 | 851,305 | |||||||||
Long-term debt, less current portion | $ | 635,067 | 606,080 | 1,437,593 | 1,402,135 | ||||||||
Restructuring_acquisition_and_2
Restructuring, acquisition and integration-related costs (Restructuring and Related Costs by Type of Cost) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring, acquisition and integration-related costs | $6,657 | $4,661 |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 9,844 | 2,059 |
Acquisition integration-related costs | 132 | 3,578 |
Restructuring, acquisition and integration-related costs | 9,976 | 5,637 |
Accelerated depreciation included in restructuring costs | 4,360 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1,173 | 2,602 |
Acquisition integration-related costs | 1,380 | 3,486 |
Restructuring, acquisition and integration-related costs | $2,553 | $6,088 |
Restructuring_acquisition_and_3
Restructuring, acquisition and integration-related costs (Restructuring Reserve) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2014 | $4,878 | |
Provision | 6,657 | 4,661 |
Cash payments | -3,184 | |
Non-cash items | -7,190 | |
Balance as of April 4, 2015 | 5,521 | |
Period in which lease impairments, severance and other restructuring costs are expected to be paid | 4 years | |
Lease Impairments [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2014 | 1,741 | |
Cash payments | -1,358 | |
Non-cash items | 0 | |
Balance as of April 4, 2015 | 2,260 | |
Asset Write-Down [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2014 | 0 | |
Cash payments | 0 | |
Non-cash items | -7,785 | |
Balance as of April 4, 2015 | 0 | |
Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2014 | 3,037 | |
Cash payments | -1,256 | |
Non-cash items | 0 | |
Balance as of April 4, 2015 | 3,112 | |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2014 | 100 | |
Cash payments | -570 | |
Non-cash items | 595 | |
Balance as of April 4, 2015 | 149 | |
Ceramic Segment [Member] | Lease Impairments [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0 | |
Operating Segments [Member] | Carpet Segment [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 4,433 | |
Operating Segments [Member] | Carpet Segment [Member] | Lease Impairments [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 1,877 | |
Operating Segments [Member] | Carpet Segment [Member] | Asset Write-Down [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 2,556 | |
Operating Segments [Member] | Carpet Segment [Member] | Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0 | |
Operating Segments [Member] | Carpet Segment [Member] | Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0 | |
Operating Segments [Member] | Ceramic Segment [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 675 | |
Operating Segments [Member] | Ceramic Segment [Member] | Asset Write-Down [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 869 | |
Operating Segments [Member] | Ceramic Segment [Member] | Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0 | |
Operating Segments [Member] | Ceramic Segment [Member] | Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | -194 | |
Operating Segments [Member] | Laminate and Wood Segment [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 5,909 | |
Operating Segments [Member] | Laminate and Wood Segment [Member] | Lease Impairments [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 0 | |
Operating Segments [Member] | Laminate and Wood Segment [Member] | Asset Write-Down [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 4,360 | |
Operating Segments [Member] | Laminate and Wood Segment [Member] | Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | 1,331 | |
Operating Segments [Member] | Laminate and Wood Segment [Member] | Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Provision | $218 |
Receivables_net_Net_components
Receivables, net (Net components of receivables) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Customers, trade | $1,164,732 | $1,081,493 |
Income tax receivable | 9,993 | 12,301 |
Other | 56,239 | 60,772 |
Receivables, gross | 1,230,964 | 1,154,566 |
Less: allowance for discounts, returns, claims and doubtful accounts | 72,106 | 72,603 |
Receivables, net | $1,158,858 | $1,081,963 |
Inventories_Net_components_of_
Inventories (Net components of inventories) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $1,004,525 | $1,021,188 |
Work in process | 129,823 | 129,471 |
Raw materials | 371,284 | 392,654 |
Total inventories | $1,505,632 | $1,543,313 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets (Schedule of goodwill) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | $2,931,777 |
Accumulated impairment losses | -1,327,425 |
Goodwill, net, beginning balance | 1,604,352 |
Goodwill recognized or adjusted during the period | 2,659 |
Currency translation during the year | -53,856 |
Goodwill, gross, ending balance | 2,880,580 |
Accumulated impairment losses | -1,327,425 |
Goodwill, net, ending balance | 1,553,155 |
Carpet Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 199,132 |
Accumulated impairment losses | -199,132 |
Goodwill, net, beginning balance | 0 |
Goodwill recognized or adjusted during the period | 0 |
Currency translation during the year | 0 |
Goodwill, gross, ending balance | 199,132 |
Accumulated impairment losses | -199,132 |
Goodwill, net, ending balance | 0 |
Ceramic Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 1,395,132 |
Accumulated impairment losses | -531,930 |
Goodwill, net, beginning balance | 863,202 |
Goodwill recognized or adjusted during the period | 0 |
Currency translation during the year | -1,185 |
Goodwill, gross, ending balance | 1,393,947 |
Accumulated impairment losses | -531,930 |
Goodwill, net, ending balance | 862,017 |
Laminate and Wood Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 1,337,513 |
Accumulated impairment losses | -596,363 |
Goodwill, net, beginning balance | 741,150 |
Goodwill recognized or adjusted during the period | 2,659 |
Currency translation during the year | -52,671 |
Goodwill, gross, ending balance | 1,287,501 |
Accumulated impairment losses | -596,363 |
Goodwill, net, ending balance | $691,138 |
Goodwill_and_intangible_assets3
Goodwill and intangible assets (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $1,553,155 | $1,604,352 |
Laminate and Wood Segment [Member] | ||
Goodwill [Line Items] | ||
Enterprise value | 2,822 | |
Goodwill | 691,138 | 741,150 |
Unidentified Wood Business [Member] | Laminate and Wood Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $2,659 |
Goodwill_and_intangible_assets4
Goodwill and intangible assets (Schedule of indefinite life assets not subject to amortization) (Details) (Tradenames [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Tradenames [Member] | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Indefinite life assets not subject to amortization, beginning balance | $622,691 |
Currency translation during the year | -30,653 |
Indefinite life assets not subject to amortization, ending balance | $592,038 |
Goodwill_and_intangible_assets5
Goodwill and intangible assets (Schedule of intangible assets subject to amortization) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | $626,713 | ||
Currency translation during the period | -46,523 | ||
Intangible assets subject to amortization, ending balance | 580,190 | ||
Accumulated amortization, beginning balance | 547,395 | ||
Amortization during the period | 5,106 | 6,038 | |
Currency translation during the period | -42,119 | ||
Accumulated amortization, ending balance | 510,382 | ||
Intangible assets subject to amortization, net | 69,808 | 79,318 | |
Customer Relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 354,768 | ||
Currency translation during the period | -20,157 | ||
Intangible assets subject to amortization, ending balance | 334,611 | ||
Accumulated amortization, beginning balance | 320,851 | ||
Amortization during the period | 1,671 | ||
Currency translation during the period | -20,014 | ||
Accumulated amortization, ending balance | 302,508 | ||
Intangible assets subject to amortization, net | 32,103 | ||
Patents [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 270,466 | ||
Currency translation during the period | -26,351 | ||
Intangible assets subject to amortization, ending balance | 244,115 | ||
Accumulated amortization, beginning balance | 225,875 | ||
Amortization during the period | 3,405 | ||
Currency translation during the period | -22,095 | ||
Accumulated amortization, ending balance | 207,185 | ||
Intangible assets subject to amortization, net | 36,930 | ||
Other [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 1,479 | ||
Currency translation during the period | -15 | ||
Intangible assets subject to amortization, ending balance | 1,464 | ||
Accumulated amortization, beginning balance | 669 | ||
Amortization during the period | 30 | ||
Currency translation during the period | -10 | ||
Accumulated amortization, ending balance | 689 | ||
Intangible assets subject to amortization, net | $775 |
Goodwill_and_intangible_assets6
Goodwill and intangible assets (Schedule of intangible assets amortization expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $5,106 | $6,038 |
Accounts_payable_and_accrued_e2
Accounts payable and accrued expenses (Components of accounts payable and accrued expenses) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Outstanding checks in excess of cash | $25,812 | $16,083 |
Accounts payable, trade | 634,264 | 622,360 |
Accrued expenses | 262,121 | 269,668 |
Product warranties | 32,415 | 29,350 |
Accrued interest | 12,180 | 28,365 |
Accrued compensation and benefits | 119,013 | 138,683 |
Total accounts payable and accrued expenses | $1,085,805 | $1,104,509 |
Product_warranties_Provision_f
Product warranties (Provision for warranty obligations) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Product Warranties Disclosures [Abstract] | ||
Product warranty period, maximum | 50 years | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $29,350 | $35,818 |
Warranty claims paid during the period | -8,475 | -14,024 |
Warranty expense during the period | 11,540 | 11,466 |
Balance at end of period | $32,415 | $33,260 |
Accumulated_other_comprehensiv2
Accumulated other comprehensive income (loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | |
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||
Balance as of December 31, 2014 | ($429,321) | |
Current period other comprehensive income (loss) before reclassifications | -226,073 | |
Balance as of April 4, 2015 | -655,394 | |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||
Balance as of December 31, 2014 | -428,505 | |
Current period other comprehensive income (loss) before reclassifications | -226,159 | |
Balance as of April 4, 2015 | -654,664 | |
Pensions | ||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||
Balance as of December 31, 2014 | -816 | [1] |
Current period other comprehensive income (loss) before reclassifications | 86 | [1] |
Balance as of April 4, 2015 | ($730) | [1] |
[1] | This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 13 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014). |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | 9-May-12 |
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Number of options granted in period | 0 | 0 | |
Stock Options [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Recognized stock-based compensation costs | 155 | 283 | |
Recognized stock-based compensation costs, net of tax | 98 | 179 | |
Pre-tax unrecognized compensation expense | 90 | ||
Weighted-average remaining period to recognize compensation expense | 1 year 4 months 21 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Recognized stock-based compensation costs | 8,281 | 7,331 | |
Recognized stock-based compensation costs, net of tax | 5,246 | 4,644 | |
Pre-tax unrecognized compensation expense | 47,047 | ||
Number of restricted stock units granted | 158,000 | 189,000 | |
Weighted-average grant-date fair value (in usd per share) | 182.99 | 144.75 | |
Recognized expense over a weighted-average period (years) | 2 years 3 months 22 days | ||
2012 Long-term Incentive Plan [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Expiration year of 2012 Plan | 31-Dec-22 | ||
2012 Long-term Incentive Plan [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Option awards contractual term (years) | 10 years | ||
2012 Long-term Incentive Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Number of common stock reserved for issuance (shares) | 3,200,000 | ||
2012 Long-term Incentive Plan [Member] | Maximum [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2012 Long-term Incentive Plan [Member] | Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2012 Long-term Incentive Plan [Member] | Minimum [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2012 Long-term Incentive Plan [Member] | Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||
Vesting period | 3 years |
Other_income_expense_net_Summa
Other (income) expense, net (Summary of other expense (income)) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Other Nonoperating Income (Expense) [Abstract] | ||
Foreign currency (gains) losses, net | ($457) | $5,889 |
All other, net | -626 | -999 |
Total other (income) expense, net | ($1,083) | $4,890 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Earnings from continuing operations attributable to Mohawk Industries, Inc. | $22,346 | $81,081 |
Weighted-average common shares outstanding-basic (in shares) | 72,988 | 72,742 |
Add weighted-average dilutive potential common shares-options and RSU's to purchase common shares, net (in shares) | 542 | 540 |
Weighted-average common shares outstanding-diluted (in shares) | 73,530 | 73,282 |
Basic earnings per share from continuing operations attributable to Mohawk Industries, Inc, (in usd per share) | $0.31 | $1.11 |
Diluted earnings per share from continuing operations attributable to Mohawk Industries, Inc. (in usd per share) | $0.30 | $1.11 |
Segment_reporting_Summary_of_s
Segment reporting (Summary of segment information) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 |
segment | |||
Segment Reporting [Abstract] | |||
Number of reporting segments | 3 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $1,881,177 | $1,813,095 | |
Operating income (loss) | 43,774 | 130,735 | |
Assets | 8,284,622 | 8,285,544 | |
Operating Segments [Member] | Carpet Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 739,264 | 674,926 | |
Operating income (loss) | -89,994 | 34,271 | |
Assets | 2,015,550 | 1,986,081 | |
Operating Segments [Member] | Ceramic Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 719,828 | 695,094 | |
Operating income (loss) | 85,327 | 60,659 | |
Assets | 3,584,471 | 3,542,594 | |
Operating Segments [Member] | Laminate and Wood Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 448,398 | 468,008 | |
Operating income (loss) | 58,901 | 44,119 | |
Assets | 2,406,286 | 2,542,566 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Intersegment sales | -26,313 | -24,933 | |
Operating income (loss) | -10,460 | -8,314 | |
Assets | $278,315 | $214,303 |
Commitments_and_contingencies_
Commitments and contingencies (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 21, 2011 | Nov. 30, 2014 | Sep. 29, 2012 | Jan. 31, 2012 | Jun. 28, 2014 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 04, 2015 | Apr. 04, 2015 |
claim | BELGIUM | BELGIUM | BELGIUM | BELGIUM | BELGIUM | BELGIUM | BELGIUM | BELGIUM | BELGIUM | Selling, General and Administrative Expenses [Member] | Polyurethane Foam Antitrust Litigation [Member] | |
Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | USD ($) | Pending Litigation [Member] | ||
Y | EUR (€) | 2008 [Member] | 2008 [Member] | 2005 [Member] | 2009 [Member] | 2006 [Member] | 2007 [Member] | 2010 [Member] | USD ($) | |||
EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | ||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of class action complaints | 2 | |||||||||||
Damages claimed | $867,400 | |||||||||||
Amount of legal settlement paid and related expenses | 125,000 | |||||||||||
Assessment received from Belgian tax authority (in euros) | 23,789 | 30,131 | 46,135 | 35,567 | 38,817 | 39,635 | 43,117 | |||||
Interest income earned on deposits related to tax assessment | € 1,583 | |||||||||||
Number of years of assessments appealed | 4 |
Debt_Senior_Credit_Facility_De
Debt (Senior Credit Facility) (Details) (USD $) | 0 Months Ended | |||
Sep. 25, 2013 | Apr. 04, 2015 | Mar. 26, 2015 | Feb. 28, 2014 | |
2015 Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized financing costs | $2,528,000 | |||
Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | 1,000,000,000 | 1,800,000,000 | ||
Term of line of credit (years) | 5 years | |||
Payment of financing costs | 1,836,000 | |||
Unamortized financing costs | 11,440,000 | |||
Utilized borrowings under credit facility | 665,121,000 | |||
Available amount under credit facility | 1,134,879,000 | |||
Senior Secured Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.10% | |||
Consolidated interest coverage ratio | 3 | |||
Senior Secured Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.23% | |||
Consolidated net leverage ratio | 3.75 | |||
Senior Secured Credit Facility [Member] | Federal Funds [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.50% | |||
Senior Secured Credit Facility [Member] | Libor [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.00% | |||
Senior Secured Credit Facility [Member] | Libor [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.75% | |||
Senior Secured Credit Facility [Member] | Monthly Libor [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.00% | |||
Senior Secured Credit Facility [Member] | Monthly Libor [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.00% | |||
Senior Secured Credit Facility [Member] | Monthly Libor [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.75% | |||
Commercial Paper [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | 1,000,000,000 | |||
Utilized borrowings under credit facility | 657,100,000 | |||
2013 Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized financing costs | 8,654,000 | |||
Borrowings [Member] | Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | 6,640,000 | |||
Standby Letters Of Credit Related To Various Insurance Contracts And Foreign Vendor Commitments [Member] | Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Standby letters of credit for various insurance contracts and commitments to foreign vendors | $1,381,000 |
Debt_Commercial_Paper_Details
Debt (Commercial Paper) (Details) (Commercial Paper [Member], USD $) | 3 Months Ended | 0 Months Ended |
Apr. 04, 2015 | Feb. 28, 2014 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity under credit facility | 1,000,000,000 | |
Maturity period of debt | 27 days | |
Utilized borrowings under credit facility | $657,100,000 | |
Weighted average interest rate on debt | 0.60% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity period of debt | 1 day | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity period of debt | 397 days |
Debt_Senior_Notes_Details
Debt (Senior Notes) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Apr. 04, 2015 | Mar. 29, 2014 | Jan. 31, 2013 | Nov. 03, 2014 | Aug. 15, 2014 | Jan. 17, 2006 | |
Debt Instrument [Line Items] | ||||||
Increase in interest expense per quarter for .25% increase in notes per $100,000 of outstanding notes | $16,449,000 | $22,096,000 | ||||
3.85% Senior Notes Due February 1,2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of debts | 600,000,000 | |||||
Interest rate percentage | 3.85% | 3.85% | ||||
Payment of financing costs | 6,000,000 | |||||
6.125% Notes, Payable January 15, 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of debts | 900,000,000 | |||||
Interest rate percentage | 6.13% | 6.13% | ||||
Senior notes due date | 15-Jan-16 | |||||
Increase in interest rate from rating agency downgrade | 0.25% | |||||
Maximum increase in interest rate per agency from rating agency downgrade | 1.00% | |||||
Increase in interest expense per quarter for .25% increase in notes per $100,000 of outstanding notes | 63,000 | |||||
Incremental increase in outstanding notes | 100,000,000 | |||||
Amount of debt repurchased | 54,400,000 | 200,000,000 | ||||
Price as a percentage of the principal amount debt repurchased | 106.38% | 107.73% | ||||
6.125% Notes, Payable January 15, 2016 [Member] | Interest Expense [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Premium to tendering noteholders | 3,500,000 | 15,450,000 | ||||
Fees associated with cash tender | $1,080,000 |
Debt_Accounts_Receivable_Secur
Debt (Accounts Receivable Securitization) (Details) (USD $) | 0 Months Ended | |||
Sep. 11, 2014 | Dec. 19, 2012 | Apr. 04, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Receivables securing amount utilized on facility | $747,879,000 | |||
Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term of line of credit (years) | 3 years | |||
Securitization agreement, maximum borrowing capacity | 500,000,000 | 300,000,000 | ||
Basis spread on securitization agreement | 0.70% | |||
Commitment fee percentage on unused amount of each lender's commitment | 0.35% | |||
Carrying Value [Member] | Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Securitization facility | $492,900,000 | $500,000,000 |
Debt_Fair_Value_and_Carrying_V
Debt (Fair Value and Carrying Value of Debt Instruments) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less current portion of long term debt and commercial paper | $1,806,175 | $851,305 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 657,100 | 301,600 |
Capital leases and other | 10,060 | 10,620 |
Total debt | 2,441,242 | 2,288,898 |
Less current portion of long term debt and commercial paper | 1,806,175 | 851,305 |
Long-term debt, less current portion | 635,067 | 1,437,593 |
Fair Value [Member] | 3.85% Senior Notes Due February 1,2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 603,804 | 603,180 |
Fair Value [Member] | 6.125% Notes, Payable January 15, 2016 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 670,738 | 677,833 |
Fair Value [Member] | Five-year senior secured credit facility, due September 25, 2018 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 6,640 | 195,665 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 657,100 | 301,600 |
Capital leases and other | 10,060 | 10,620 |
Total debt | 2,412,255 | 2,253,440 |
Less current portion of long term debt and commercial paper | 1,806,175 | 851,305 |
Long-term debt, less current portion | 606,080 | 1,402,135 |
Carrying Value [Member] | 3.85% Senior Notes Due February 1,2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 600,000 | 600,000 |
Carrying Value [Member] | 6.125% Notes, Payable January 15, 2016 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 645,555 | 645,555 |
Carrying Value [Member] | Five-year senior secured credit facility, due September 25, 2018 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 6,640 | 195,665 |
Secured Credit Facility [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization facility | 492,900 | 500,000 |
Secured Credit Facility [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization facility | $492,900 | $500,000 |