Exhibit 99.1
Mohawk Industries, Inc.
Updated historical financial information based on new business segments
During the second quarter of 2015, the Company realigned its reportable segments to reflect how the company’s results will be reported by management. The Company has organized its carpet, wood, laminate and vinyl operations by geography into the Flooring North American segment and Rest of the World (“ROW”) segment with no change in the Global Ceramic segment.
The following summary describes each of the segments:
Flooring North America Segment includes North American operations in all product categories except ceramic. The new segment combines the former Carpet segment with the North American operations of the former Laminate and Wood segment as well as the North American operations of the recently acquired IVC Group.
Flooring ROW Segment includes operations outside of North America in all product categories except ceramic. The new segment combines the European and ROW operations of the former Laminate and Wood segment with the non-North American operations of the recently acquired IVC Group.
Global Ceramic Segment includes all worldwide ceramic operations, including the operations of the recently acquired KAI Group. There is no change in this segment.
As a result of the change in segment reporting, all historical financial information has been recasted to conform to the following new presentation:
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|
| MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES |
| Unaudited |
| (Amounts in thousands) |
| Recasted segments: |
|
| | | | | | | | | | | | | | | |
| | Flooring North America | Global Ceramic | Flooring ROW | Corporate/ Eliminations | Mohawk Consolidated |
| Year ended December 31, 2013 |
| Net Sales | $ | 3,423,093 |
| $ | 2,677,058 |
| $ | 1,249,279 |
| $ | (676 | ) | $ | 7,348,754 |
|
| Operating Income/(Expense) | 259,753 |
| 209,825 |
| 107,850 |
| (30,497 | ) | 546,931 |
|
| Restructuring, acquisition and integration-related costs | 19,172 |
| 73,916 |
| 48,667 |
| 1,225 |
| 142,980 |
|
| Adjusted Operating Income/(Expense) | $ | 278,925 |
| $ | 283,741 |
| $ | 156,517 |
| $ | (29,272 | ) | $ | 689,911 |
|
| Quarter ended March 29, 2014 |
| Net Sales | $ | 780,331 |
| $ | 695,094 |
| $ | 338,067 |
| $ | (397 | ) | $ | 1,813,095 |
|
| Operating Income/(Expense) | 47,353 |
| 60,659 |
| 31,465 |
| (8,742 | ) | 130,735 |
|
| Restructuring, acquisition and integration-related costs | 569 |
| 1,980 |
| 9,007 |
| 169 |
| 11,725 |
|
| Adjusted Operating Income/(Expense) | $ | 47,922 |
| $ | 62,639 |
| $ | 40,472 |
| $ | (8,573 | ) | $ | 142,460 |
|
| Quarter ended June 28, 2014 |
| Net Sales | $ | 895,912 |
| $ | 796,724 |
| $ | 357,738 |
| $ | (2,127 | ) | $ | 2,048,247 |
|
| Operating Income/(Expense) | 76,602 |
| 106,407 |
| 47,398 |
| (8,159 | ) | 222,248 |
|
| Restructuring, acquisition and integration-related costs | 869 |
| 196 |
| 9,904 |
| 200 |
| 11,169 |
|
| Adjusted Operating Income/(Expense) | $ | 77,471 |
| $ | 106,603 |
| $ | 57,302 |
| $ | (7,959 | ) | $ | 233,417 |
|
| Quarter ended September 27, 2014 |
| Net Sales | $ | 886,317 |
| $ | 779,842 |
| $ | 326,146 |
| $ | (1,647 | ) | $ | 1,990,658 |
|
| Operating Income/(Expense) | 83,623 |
| 101,254 |
| 35,046 |
| (6,230 | ) | 213,693 |
|
| Restructuring, acquisition, integration-related and legal reserve costs | 10,578 |
| 4,248 |
| 8,437 |
| 750 |
| 24,013 |
|
| Adjusted Operating Income/(Expense) | $ | 94,201 |
| $ | 105,502 |
| $ | 43,483 |
| $ | (5,480 | ) | $ | 237,706 |
|
| Quarter ended December 31, 2014 |
| Net Sales | $ | 878,458 |
| $ | 743,619 |
| $ | 332,068 |
| $ | (2,699 | ) | $ | 1,951,446 |
|
| Operating Income/(Expense) | 92,414 |
| 82,793 |
| 37,618 |
| (6,705 | ) | 206,120 |
|
| Restructuring, acquisition and integration-related costs | 2,594 |
| 2,905 |
| 8,829 |
| 367 |
| 14,695 |
|
| Adjusted Operating Income/(Expense) | $ | 95,008 |
| $ | 85,698 |
| $ | 46,447 |
| $ | (6,338 | ) | $ | 220,815 |
|
| Year ended December 31, 2014 |
| Net Sales | $ | 3,441,018 |
| $ | 3,015,279 |
| $ | 1,354,018 |
| $ | (6,869 | ) | $ | 7,803,446 |
|
| Operating Income/(Expense) | 299,992 |
| 351,113 |
| 151,528 |
| (29,837 | ) | 772,796 |
|
| Restructuring, acquisition, integration-related and legal reserve costs | 14,610 |
| 9,330 |
| 36,177 |
| 1,487 |
| 61,604 |
|
| Adjusted Operating Income/(Expense) | $ | 314,602 |
| $ | 360,443 |
| $ | 187,705 |
| $ | (28,350 | ) | $ | 834,400 |
|
| Quarter ended April 4, 2015 |
| Net Sales | $ | 846,911 |
| $ | 719,828 |
| $ | 314,742 |
| $ | (304 | ) | $ | 1,881,177 |
|
| Operating Income/(Expense) | (75,192 | ) | 85,327 |
| 44,641 |
| (11,002 | ) | 43,774 |
|
| Restructuring, acquisition and integration-related costs | 130,825 |
| 362 |
| 5,155 |
| 1,187 |
| 137,529 |
|
| Adjusted Operating Income/(Expense) | $ | 55,633 |
| $ | 85,689 |
| $ | 49,796 |
| $ | (9,815 | ) | $ | 181,303 |
|
The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of the Company's business for planning and forecasting in subsequent periods. In particular, the Company believes excluding the impact of restructuring, acquisition, integration-related and legal reserve costs is useful because it allows investors to evaluate our performance for different periods on a more comparable basis.
