Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 27, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MOHAWK INDUSTRIES INC | ||
Entity Central Index Key | 851,968 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 72,309,897 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13,276,667,592 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 119,050 | $ 84,884 |
Receivables, net | 1,606,159 | 1,558,159 |
Inventories | 2,287,615 | 1,948,663 |
Prepaid expenses | 421,553 | 376,836 |
Other current assets | 74,919 | 104,425 |
Total current assets | 4,509,296 | 4,072,967 |
Property, plant and equipment, net | 4,699,902 | 4,270,790 |
Goodwill | 2,520,966 | 2,471,459 |
Tradenames | 707,380 | 644,208 |
Other intangible assets, net | 254,430 | 247,559 |
Deferred income taxes and other non-current assets | 407,149 | 387,870 |
Total assets | 13,099,123 | 12,094,853 |
Current liabilities: | ||
Current portion of long-term debt | 1,742,373 | 1,203,683 |
Accounts payable and accrued expenses | 1,523,866 | 1,451,672 |
Total current liabilities | 3,266,239 | 2,655,355 |
Deferred income taxes | 413,740 | 328,103 |
Long-term debt, less current portion | 1,515,601 | 1,559,895 |
Other long-term liabilities | 463,484 | 455,028 |
Total liabilities | 5,659,064 | 4,998,381 |
Commitments and contingencies (Note 14) | ||
Redeemable noncontrolling interest | 0 | 29,463 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value; 60 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 150,000 shares authorized; 79,656 and 81,771 shares issued in 2018 and 2017, respectively | 797 | 818 |
Additional paid-in capital | 1,852,173 | 1,828,131 |
Retained earnings | 6,588,197 | 6,004,506 |
Accumulated other comprehensive loss | (791,608) | (558,527) |
Shareholder's equity before treasury stock | 7,649,559 | 7,274,928 |
Less: treasury stock at cost; 7,349 and 7,350 shares in 2018 and 2017, respectively | 215,745 | 215,766 |
Total Mohawk Industries, Inc. stockholders’ equity | 7,433,814 | 7,059,162 |
Noncontrolling interest | 6,245 | 7,847 |
Total stockholders’ equity | 7,440,059 | 7,067,009 |
Total liabilities and shareholders' equity | $ 13,099,123 | $ 12,094,853 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 issues (in shares) | 79,656,000 | 81,771,000 |
Treasury stock, shares (in shares) | 7,349,000 | 7,350,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 9,983,634 | $ 9,491,290 | $ 8,959,087 |
Cost of sales | 7,145,564 | 6,494,876 | 6,146,262 |
Gross profit | 2,838,070 | 2,996,414 | 2,812,825 |
Selling, general and administrative expenses | 1,742,744 | 1,642,241 | 1,532,882 |
Operating income | 1,095,326 | 1,354,173 | 1,279,943 |
Interest expense | 38,827 | 31,111 | 40,547 |
Other expense (income) | 7,298 | 5,205 | (1,729) |
Earnings before income taxes | 1,049,201 | 1,317,857 | 1,241,125 |
Income tax expense | 184,346 | 343,165 | 307,559 |
Net earnings including noncontrolling interest | 864,855 | 974,692 | 933,566 |
Net earnings attributable to noncontrolling interest | 3,151 | 3,054 | 3,204 |
Net earnings attributable to Mohawk Industries, Inc. | $ 861,704 | $ 971,638 | $ 930,362 |
Basic earnings per share attributable to Mohawk Industries, Inc. | |||
Basic earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 11.53 | $ 13.07 | $ 12.55 |
Weighted-average common shares outstanding—basic (in shares) | 74,413 | 74,357 | 74,104 |
Diluted earnings per share attributable to Mohawk Industries, Inc. | |||
Diluted earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 11.47 | $ 12.98 | $ 12.48 |
Weighted-average common shares outstanding—diluted (in shares) | 74,773 | 74,839 | 74,568 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings including noncontrolling interest | $ 864,855 | $ 974,692 | $ 933,566 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (237,339) | 281,655 | (36,702) |
Prior pension and post-retirement benefit service cost and actuarial loss | 1,094 | (2,927) | (2,757) |
Other comprehensive income (loss) | (236,245) | 278,728 | (39,459) |
Comprehensive income | 628,610 | 1,253,420 | 894,107 |
Comprehensive (loss) income attributable to the non-controlling interest | (13) | 7,282 | 3,204 |
Comprehensive income attributable to Mohawk Industries, Inc. | $ 628,623 | $ 1,246,138 | $ 890,903 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interest | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest |
Beginning balance at Dec. 31, 2015 | $ 4,860,863 | $ 21,952 | $ 813 | $ 1,760,016 | $ 4,102,707 | $ (793,568) | $ (215,795) | $ 6,690 |
Beginning balance (in shares) at Dec. 31, 2015 | 81,280,000 | (7,351,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under employee and director stock plans | (8,226) | $ 2 | (8,232) | $ 4 | ||||
Shares issued under employee and director stock plans (in shares) | 239,000 | |||||||
Stock-based compensation expense | 35,059 | 35,059 | ||||||
Tax benefit from stock-based compensation | 4,697 | 4,697 | ||||||
Accretion of redeemable noncontrolling interest | (123) | 123 | (123) | |||||
Noncontrolling earnings | 340 | 2,864 | 340 | |||||
Currency translation adjustment on noncontrolling interests | (26) | (1,243) | (26) | |||||
Acquisition of noncontrolling interest, net of taxes | 0 | (32) | 32 | |||||
Currency translation adjustment | (36,702) | (36,702) | ||||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | (2,757) | (2,757) | ||||||
Net income | 930,362 | 930,362 | ||||||
Ending balance at Dec. 31, 2016 | 5,783,487 | 23,696 | $ 815 | 1,791,540 | 5,032,914 | (833,027) | $ (215,791) | 7,036 |
Ending balance (in shares) at Dec. 31, 2016 | 81,519,000 | (7,351,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under employee and director stock plans | 297 | $ 3 | 269 | $ 25 | ||||
Shares issued under employee and director stock plans (in shares) | 252,000 | 1,000 | ||||||
Stock-based compensation expense | 36,322 | 36,322 | ||||||
Distribution to noncontrolling interest, net of adjustments | (750) | (750) | ||||||
Accretion of redeemable noncontrolling interest | (46) | 46 | (46) | |||||
Noncontrolling earnings | 510 | 2,544 | 510 | |||||
Currency translation adjustment on noncontrolling interests | 1,051 | 3,177 | 1,051 | |||||
Currency translation adjustment | 277,427 | 277,427 | ||||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | (2,927) | (2,927) | ||||||
Net income | 971,638 | 971,638 | ||||||
Ending balance at Dec. 31, 2017 | 7,067,009 | 29,463 | $ 818 | 1,828,131 | 6,004,506 | (558,527) | $ (215,766) | 7,847 |
Ending balance (in shares) at Dec. 31, 2017 | 81,771,000 | (7,350,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under employee and director stock plans | (8,377) | $ 2 | (8,400) | $ 21 | ||||
Shares issued under employee and director stock plans (in shares) | 191,000 | 1,000 | ||||||
Stock-based compensation expense | 31,382 | 31,382 | ||||||
Repurchases of common stock (in shares) | (2,306,000) | |||||||
Repurchases of common stock | (274,144) | $ (23) | (274,121) | |||||
Accretion of redeemable noncontrolling interest | (3,892) | 3,892 | (3,892) | |||||
Noncontrolling earnings | 677 | 2,474 | 677 | |||||
Currency translation adjustment on noncontrolling interests | (1,219) | (1,945) | (1,219) | |||||
Purchase of redeemable noncontrolling interest and noncontrolling interest, net of taxes | 0 | (33,884) | 1,060 | (1,060) | ||||
Currency translation adjustment | (234,175) | (234,175) | ||||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | 1,094 | 1,094 | ||||||
Net income | 861,704 | 861,704 | ||||||
Ending balance at Dec. 31, 2018 | $ 7,440,059 | $ 0 | $ 797 | $ 1,852,173 | $ 6,588,197 | $ (791,608) | $ (215,745) | $ 6,245 |
Ending balance (in shares) at Dec. 31, 2018 | 79,656,000 | (7,349,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net earnings | $ 864,855 | $ 974,692 | $ 933,566 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Restructuring | 58,991 | 37,085 | 38,463 |
Intangible asset impairment | 0 | 0 | 47,905 |
Depreciation and amortization | 521,765 | 446,672 | 409,467 |
Deferred income taxes | 88,456 | (75,591) | (34,009) |
Loss on disposal of property, plant and equipment | (205) | 4,303 | 3,932 |
Stock-based compensation expense | 31,382 | 36,322 | 35,059 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Receivables, net | 13,856 | (60,566) | (158,888) |
Inventories | (255,391) | (153,245) | (81,923) |
Accounts payable and accrued expenses | (69,847) | 25,365 | 85,572 |
Other assets and prepaid expenses | (79,482) | (52,115) | 54,267 |
Other liabilities | 6,964 | 10,673 | 11,878 |
Net cash provided by operating activities | 1,181,344 | 1,193,595 | 1,345,289 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (794,110) | (905,998) | (672,125) |
Acquisitions, net of cash acquired | (568,960) | (250,799) | 0 |
Purchases of short-term investments | (664,133) | (83,904) | 0 |
Redemption of short-term investments | 695,000 | 0 | 0 |
Net cash used in investing activities | (1,332,203) | (1,240,701) | (672,125) |
Cash flows from financing activities: | |||
Payments on Senior Credit Facilities | (813,182) | (454,637) | (707,129) |
Proceeds from Senior Credit Facilities | 809,287 | 447,884 | 631,807 |
Payments on Commercial Paper | (16,756,404) | (15,584,017) | (20,210,585) |
Proceeds from Commercial Paper | 16,988,398 | 15,761,954 | 20,301,372 |
Proceeds from Floating Rate Notes | 353,649 | 357,569 | 0 |
Repayment of senior notes | 0 | 0 | (645,555) |
Payments on asset securitization borrowings | 0 | (500,000) | 0 |
Payments on acquired debt and other financings | (69,571) | (18,811) | 0 |
Debt issuance costs | (890) | (1,478) | (1,336) |
Purchase of redeemable non-controlling and non-controlling interest | (34,944) | 0 | 0 |
Repurchases of common stock | (274,144) | 0 | 0 |
Change in outstanding checks in excess of cash | 5,753 | (3,402) | (1,754) |
Shares redeemed for taxes | (9,925) | (13,902) | (13,039) |
Proceeds and net tax benefit from stock transactions | 2 | 1,845 | 4,583 |
Net cash (used in) provided by financing activities | 198,029 | (6,995) | (641,636) |
Effect of exchange rate changes on cash and cash equivalents | (13,004) | 17,320 | 8,445 |
Net change in cash and cash equivalents | 34,166 | (36,781) | 39,973 |
Cash and cash equivalents, beginning of year | 84,884 | 121,665 | 81,692 |
Cash and cash equivalents, end of year | $ 119,050 | $ 84,884 | $ 121,665 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation Mohawk Industries, Inc. (“Mohawk” or the “Company”), a term which includes the Company and its subsidiaries, is a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The Company's vertically integrated manufacturing and distribution processes provide competitive advantages in the production of carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile (“LVT”) and vinyl flooring. The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (b) Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2018 , the Company had cash of $119,050 of which $88,100 was held outside the United States. As of December 31, 2017 , the Company had cash of $84,884 of which $70,520 was held outside the United States. (c) Accounts Receivable and Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers and all the related amendments (“ASC 606”) and applied the provisions of the standard to all contracts using the modified retrospective method. The cumulative effect of adopting the new revenue standard was immaterial and no adjustment has been recorded to the opening balance of retained earnings. Prior year information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company recognizes revenues when it satisfies performance obligations as evidenced by the transfer of control of the promised goods to customers, when the product is either shipped or received from the Company’s facilities, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The Company reviewed all of its revenue product categories under ASC 606 and the only changes identified were that an immaterial amount of revenue from intellectual property (“IP”) contracts results in earlier recognition of revenue, new controls and processes designed to meet the requirements of the standard were implemented, and the required new disclosures are presented in Note 3, Revenue from Contracts with Customers. The adoption of ASC 606 did not have a material impact on the amounts reported in the Company’s consolidated financial position, results of operations or cash flows. (d) Inventories The Company accounts for all inventories on the first-in, first-out (“FIFO”) method. Inventories are stated at the lower of cost or net realizable value. Cost has been determined using the FIFO method. Costs included in inventory include raw materials, direct and indirect labor and employee benefits, depreciation, general manufacturing overhead and various other costs of manufacturing. Inventories on hand are compared against anticipated future usage, which is a function of historical usage, anticipated future selling price, expected sales below cost, excessive quantities and an evaluation for obsolescence. (e) Property, Plant and Equipment Property, plant and equipment are stated at cost, including capitalized interest. Depreciation is calculated on a straight-line basis over the estimated remaining useful lives, which are 25 - 40 years for buildings and improvements, 5 - 15 years for machinery and equipment, the shorter of the estimated useful life or lease term for leasehold improvements and 3 - 7 years for furniture and fixtures. (f) Accounting for Business Combinations The Company accounts for business combinations under the acquisition method of accounting which requires it to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. (g) Goodwill and Other Intangible Assets In accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 350, Intangibles-Goodwill and Other, the Company tests goodwill and other intangible assets with indefinite lives for impairment on an annual basis on the first day of the fourth quarter (or on an interim basis if an event occurs that might reduce the fair value of the reporting unit below its carrying value). The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management’s judgments and assumptions using the discounted cash flows and comparable company market valuation approaches. The Company has identified Global Ceramic, Flooring NA, and Flooring ROW as its reporting units for the purposes of allocating goodwill and intangibles as well as assessing impairments. The valuation approaches are subject to key judgments and assumptions that are sensitive to change such as judgments and assumptions about appropriate sales growth rates, operating margins, weighted average cost of capital (“WACC”), and comparable company market multiples. When developing these key judgments and assumptions, the Company considers economic, operational and market conditions that could impact the fair value of the reporting unit. However, estimates are inherently uncertain and represent only management’s reasonable expectations regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Should a significant or prolonged deterioration in economic conditions occur, such as continued declines in spending for new construction, remodeling and replacement activities; the inability to pass increases in the costs of raw materials and fuel on to customers; or a decline in comparable company market multiples, then key judgments and assumptions could be impacted. The impairment evaluation for indefinite lived intangible assets, which for the Company are its trademarks, is conducted on the first day of the fourth quarter of each year, or more frequently if events or changes in circumstances indicate that an asset might be impaired. The first step of the impairment tests for our indefinite lived intangible assets is a thorough assessment of qualitative factors to determine the existence of events or circumstances that would indicate that it is not more likely than not that the fair value of these assets is less than their carrying amounts. If the qualitative test indicates it is not more likely than not that the fair value of these assets is less than their carrying amounts, a quantitative assessment is not required. If a quantitative test is necessary, the second step of our impairment test involves comparing the estimated fair value of a reporting unit to its carrying amount. The determination of fair value used in the impairment evaluation is based on discounted estimates of future sales projections attributable to ownership of the trademarks. Significant judgments inherent in this analysis include assumptions about appropriate sales growth rates, royalty rates, WACC and the amount of expected future cash flows. The judgments and assumptions used in the estimate of fair value are generally consistent with past performance and are also consistent with the projections and assumptions that are used in current operating plans. Such assumptions are subject to change as a result of changing economic and competitive conditions. The determination of fair value is highly sensitive to differences between estimated and actual cash flows and changes in the related discount rate used to evaluate the fair value of the trademarks. Estimated cash flows are sensitive to changes in the economy among other things. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Intangible assets that do not have indefinite lives are amortized based on average lives, which range from 7 - 16 years. (h) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. (i) Financial Instruments The Company’s financial instruments consist primarily of receivables, accounts payable, accrued expenses and long-term debt. The carrying amounts of receivables, accounts payable and accrued expenses approximate their fair value because of the short-term maturity of such instruments. The Company formed a wholly-owned captive insurance company during 2017 that invests in the Company’s commercial paper. These short-term commercial paper investments are classified as trading securities and carried at fair value based upon level two fair value hierarchy. The carrying amount of the Company’s floating rate debt approximates its fair value based upon level two fair value hierarchy. Interest rates that are currently available to the Company for issuance of long-term debt with similar terms and remaining maturities are used to estimate the fair value of the Company’s long-term debt. (j) Advertising Costs and Vendor Consideration Advertising and promotion expenses are charged to earnings during the period in which they are incurred. Advertising and promotion expenses included in selling, general, and administrative expenses were $116,854 in 2018 , $119,560 in 2017 and $122,148 in 2016 . Vendor consideration, generally cash, is classified as a reduction of net sales, unless specific criteria are met regarding goods or services that the Company may receive in return for this consideration. The Company makes various payments to customers, including rebates, slotting fees, advertising allowances, buy-downs and co-op advertising. All of these payments reduce gross sales with the exception of co-op advertising. Co-op advertising is classified as a selling, general and administrative expense. Co-op advertising expenses, a component of advertising and promotion expenses, were $13,332 in 2018 , $10,891 in 2017 and $11,132 in 2016 . (k) Product Warranties The Company warrants certain qualitative attributes of its flooring products. The Company has recorded a provision for estimated warranty and related costs, based on historical experience and periodically adjusts these provisions to reflect actual experience. (l) Impairment of Long-Lived Assets The Company reviews its long-lived asset groups, which include intangible assets subject to amortization, which for the Company are its patents and customer relationships, for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated by these asset groups. If such asset groups are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets held for sale are reported at the lower of the carrying amount or fair value less estimated costs of disposal and are no longer depreciated. (m) Foreign Currency Translation The Company’s subsidiaries that operate outside the United States use their local currency as the functional currency. The functional currency is translated into U.S. Dollars for balance sheet accounts using the month end rates in effect as of the balance sheet date and average exchange rate for revenue and expense accounts for each respective period. The translation adjustments are deferred as a separate component of stockholders’ equity, within accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in other income or expense, within the consolidated statements of operations. (n) Hedges of Net Investments in Non-U.S. Operations The Company has numerous investments outside the United States. The net assets of these subsidiaries are exposed to changes and volatility in currency exchange rates. The Company uses foreign currency denominated debt to hedge its non-U.S. net investments against adverse movements in exchange rates. The gains and losses on the Company's net investments in its non-U.S. operations are economically offset by losses and gains on its foreign currency borrowings. The Company designated its €500,000 2.00% Senior Notes borrowing as a net investment hedge of a portion of its European operations. For the years ended December 31, 2018 , December 31, 2017 and December 31, 2016 the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $27,948 ( $20,376 net of taxes), an increase of $74,112 ( $46,320 net of taxes) and a decrease of $20,644 ( $12,902 net of taxes), respectively, which is recorded in the foreign currency translation adjustment component of accumulated other comprehensive income (loss). The increase in the U.S. dollar value of the Company’s debt partially offsets the euro-to-dollar translation of the Company’s net investment in its European operations. (o) Earnings per Share (“EPS”) Basic net earnings per share (“EPS”) is calculated using net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year. Diluted EPS is similar to basic EPS except that the weighted-average number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Dilutive common stock options are included in the diluted EPS calculation using the treasury stock method. There were no common stock options and unvested restricted shares (units) that were excluded from the diluted EPS computation because the price was greater than the average market price of the common shares for the periods presented for 2018 , 2017 and 2016 . Computations of basic and diluted earnings per share are presented in the following table: 2018 2017 2016 Earnings attributable to Mohawk Industries, Inc. $ 861,704 971,638 930,362 Accretion of redeemable noncontrolling interest (a) (3,892 ) (46 ) (123 ) Net earnings available to common stockholders $ 857,812 971,592 930,239 Weighted-average common shares outstanding-basic and diluted: Weighted-average common shares outstanding - basic 74,413 74,357 74,104 Add weighted-average dilutive potential common shares - options and RSUs to purchase common shares, net 360 482 464 Weighted-average common shares outstanding-diluted 74,773 74,839 74,568 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 11.53 13.07 12.55 Diluted $ 11.47 12.98 12.48 (a) Represents the accretion of the Company’s redeemable noncontrolling interest to redemption value. The holder put this option to the Company on December 20, 2018 for $33,884 . (p) 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 ASC 718-10, “ Stock Compensation ”. Compensation expense is generally recognized on a straight-line basis over the awards’ estimated lives for fixed awards with ratable vesting provisions. (q) Employee Benefit Plans The Company has a 401(k) retirement savings plan (the “Mohawk Plan”) open to substantially all U.S. and Puerto Rico based employees who have completed 90 days of eligible service. The Company contributes $.50 for every $1.00 of employee contributions up to a maximum of 6% of the employee’s salary based upon each individual participants election. Employee and employer contributions to the Mohawk Plan were $55,796 and $22,689 in 2018 , $53,544 and $22,039 in 2017 and $50,542 and $21,002 in 2016 , respectively. The Company also has various pension plans covering employees in Belgium, France, and the Netherlands (the “Non-U.S. Plans”) within the Flooring ROW segment. Benefits under the Non-U.S. Plans depend on compensation and years of service. The Non-U.S. Plans are funded in accordance with local regulations. The Company uses December 31 as the measurement date for its Non-U.S. Plans. The Company’s projected benefit obligation and plan assets as of December 31, 2018 were $63,569 and $54,315 , respectively. The Company’s projected benefit obligation and plan assets as of December 31, 2017 were $65,439 and $53,404 , respectively. As of December 31, 2018 , the funded status of the Non-U.S. Plans was a liability of $9,254 of which $5,092 was recorded in accumulated other comprehensive income, for a net liability of $4,162 recorded in other long-term liabilities within the consolidated balance sheets. As of December 31, 2017 , the funded status of the Non-U.S. Plans was a liability of $12,035 of which $6,187 was recorded in accumulated other comprehensive income, for a net liability of $5,848 recorded in other long-term liabilities within the consolidated balance sheets. (r) Comprehensive Income (Loss) Comprehensive income (loss) includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and pensions. The Company does not provide income taxes on currency translation adjustments, as earnings from foreign subsidiaries are considered to be indefinitely reinvested. The Company presents currency translation adjustments on non-controlling interests separately from currency translation adjustments on controlling interests in accumulated other comprehensive income (loss) within stockholders’ equity. The changes in accumulated other comprehensive income (loss) by component, net of tax, for years ended December 31, 2018 , 2017 and 2016 are as follows: Foreign currency translation adjustments Pensions and post-retirement benefits Total Balance as of December 31, 2015 $ (788,652 ) (4,916 ) (793,568 ) Current period other comprehensive income (loss) before reclassifications (36,702 ) (2,757 ) (39,459 ) Amounts reclassified from accumulated other comprehensive loss — — — Balance as of December 31, 2016 (825,354 ) (7,673 ) (833,027 ) Current period other comprehensive income (loss) before reclassifications 277,427 (2,927 ) 274,500 Amounts reclassified from accumulated other comprehensive income — — — Balance as of December 31, 2017 (547,927 ) (10,600 ) (558,527 ) Current period other comprehensive income (loss) before reclassifications (234,175 ) 1,094 (233,081 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Balance as of December 31, 2018 $ (782,102 ) (9,506 ) (791,608 ) (s) Self-Insurance Reserves The Company is self-insured in the U.S. for various levels of general liability, auto liability, workers’ compensation and employee medical coverage. Insurance reserves are calculated on an undiscounted basis based on actual claim data and estimates of incurred but not reported claims developed utilizing historical claim trends. Projected settlements and incurred but not reported claims are estimated based on pending claims and historical trends and data. Though the Company does not expect them to do so, actual settlements and claims could differ materially from those estimated. Material differences in actual settlements and claims could have an adverse effect on the Company’s results of operations and financial condition. In the fourth quarter of 2017, the Company formed a wholly-owned captive insurance company, Mohawk Assurance Services, Inc. (“MAS”). MAS insures the retained portion of the Company’s U.S. workers’ compensation, automobile liability and general liability exposures. The Company funded MAS with an initial cash contribution of $16,876 as a contribution to equity and $67,391 as the net present value of premiums owed by the Company for the insurance provided by MAS. MAS began providing coverage to the Company as of December 22, 2017. MAS had investments of $ 53,000 and $ 83,904 in the Company’s commercial paper as of December 31, 2018 and 2017 , respectively. (t) Fiscal Year The Company ends its fiscal year on December 31. Each of the first three quarters in the fiscal year ends on the Saturday nearest the calendar quarter end with a thirteen week fiscal quarter. (u) Recent Accounting Pronouncements - Effective in Future Years In February 2016, the FASB issued ASU 2016-02, Leases . The amendments create Topic 842, Leases, and supersede the requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The guidance in this update is effective for annual reporting periods beginning after December 15, 2018 including interim periods within that reporting period. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements , which allows for a new, optional transition method where the effective date also acts as the date of initial application on transition. Under this option, the comparative periods would continue to apply the legacy guidance in ASC 840, including the disclosure requirements, and a cumulative effect adjustment would be recognized in the period of adoption rather than the earliest period presented. Under this transition option, comparative reporting would not be required and the provisions of the standard would be applied prospectively to leases in effect at the date of adoption. The Company plans to adopt the provisions of this Topic 842 at the beginning of fiscal year 2019 using a modified retrospective approach through a cumulative effect adjustment to “Retained earnings” as of the beginning of the period of adoption in line with the new transition method allowed under ASU 2018-11. Topic 842 provides a number of optional practical expedients in transition. The Company expects to elect the “package of practical expedients” which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight and will elect the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting for leases. The Company currently expects to elect the short-term lease exemption for all leases that qualify, meaning the Company will not recognize ROU assets or lease liabilities for leases with terms shorter than twelve months. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for a majority of its asset classes, including real estate and equipment. The Company expects the adoption of this guidance to have a material impact on its Consolidated Balance Sheet due to the recognition of lease liabilities and related right-of-use assets in excess of $300,000 to $350,000 . The Company does not expect adoption to materially affect its Consolidated Statement of Operations nor its Consolidated Statement of Cash Flows. The Company is working to complete the design of new controls and processes to meet both the quantitative and disclosure requirements of Topic 842 upon adoption. The Company may identify additional impacts this guidance will have on its consolidated financial statements and disclosures. The Company does not expect material changes in its leasing activities in conjunction with the adoption of Topic 842. In January 2017, the FASB also issued ASU 2017-04, Intangibles - Goodwill and other (Topic 350): Simplifying the test for goodwill impairment. The amendments remove the second step of the current goodwill impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This guidance is effective for impairment tests in fiscal years beginning after December 15, 2019. - Recently Adopted In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . This update changes the measurement principle for inventory for entities using FIFO or average cost from the lower of cost or market to lower of cost and net realizable value. Entities that measure inventory using LIFO or the retail inventory method are not affected. This update will more closely align the accounting for inventory under U.S. GAAP with IFRS. The Company currently accounts for inventory using the FIFO method. The Company adopted the provisions of this update at the beginning of fiscal year 2017. This update did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the provisions of this update at the beginning of fiscal year 2017, with the statement of cash flows classifications applied retrospectively. Accordingly, cash paid for shares redeemed for taxes of $13,039 and $11,589 was reclassed to financing activities from operating activities for the year ended December 31, 2016 and 2015, respectively. Additionally, excess tax benefits are now classified with other tax flows as an operating activity with $4,697 and $5,690 reclassified from financing activities for the year ended December 31, 2016 and 2015, respectively. The Company has also elected to continue to estimate the number of awards that are expected to vest when accounting for forfeitures. On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers and all the related amendments (“ASC 606”) and applied the provisions of the standard to all contracts using the modified retrospective method. The cumulative effect of adopting the new revenue standard was immaterial and no adjustment has been recorded to the opening balance of retained earnings. Prior year information has not been restated and continues to be reported under the accounting standards in effect for those periods. Substantially all of the Company’s revenue continues to be recognized at a point in time when the product is either shipped or received from the Company’s facilities and control of the product is transferred to the customer. The Company reviewed all of its revenue product categories under ASC 606 and the only changes identified were that an immaterial amount of revenue from intellectual property (“IP”) contracts results in earlier recognition of revenue, new controls and processes designed to meet the requirements of the standard were implemented, and the required new disclosures are presented in Note 3, Revenue from Contracts with Customers. The adoption of ASC 606 did not have a material impact on the amounts reported in the Company’s consolidated financial position, results of operations or cash flows. On January 1, 2018, the Company adopted the new accounting standard, ASU 2016-15, Statement of Cash Flows (Topic 230). The effect of adopting the new standard was not material. On January 1, 2018, the Company adopted the new accounting standard, ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The effect of adopting the new standard was not material. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2018 Acquisitions On November 16, 2018 , the Company completed its purchase of Eliane S/A Revestimentos Ceramicos (“Eliane”), one of the largest ceramic tile companies in Brazil. Pursuant to the purchase agreement, the Company (i) acquired the entire issued share capital of Eliane and (ii) acquired $99,037 of indebtedness of Eliane, with total cash consideration paid of $ 148,741 , including cash held in escrow of $5,285 . The Company’s acquisition of Eliane resulted in preliminary allocations of goodwill of $ 19,821 , indefinite-lived tradename intangible assets of $ 33,111 and intangible assets subject to amortization of $ 3,726 . The goodwill is expected to be deductible for tax purposes. The purchase price allocation is preliminary until the Company obtains final information regarding these fair values. Eliane’s results of operations have been included in the consolidated financial statements since the date of acquisition in the Global Ceramic reporting segment. The results of Eliane’s operations are not material to the Company’s condensed consolidated results of operations. On July 2, 2018 , the Company completed its acquisition of Godfrey Hirst Group, the leading flooring company in Australia and New Zealand, further extending Mohawk’s global position. The total value of the acquisition was $400,894 . The Company’s acquisition of Godfrey Hirst Group resulted in preliminary allocations of goodwill of $87,043 , indefinite-lived tradename intangible assets of $58,671 and intangible assets subject to amortization of $43,635 . The goodwill is not expected to be deductible for tax purposes. The factors contributing to the recognition of the amount of goodwill include product, sales and manufacturing synergies. The Godfrey Hirst Group’s results have been included in the condensed consolidated financial statements since the date of acquisition in the Flooring NA and Flooring ROW segments. The results of Godfrey Hirst Group’s operations are not material to the Company’s condensed consolidated results of operations. During the first quarter of 2018, the Company completed the acquisition of three businesses in the Flooring ROW segment for $24,610 , resulting in a preliminary goodwill allocation of $12,874 and intangibles subject to amortization of $7 . 2017 Acquisitions Emil On April 4, 2017, the Company completed its purchase of Emilceramica S.r.l (“Emil”), a ceramic company in Italy. The total value of the acquisition was $186,099 . The Emil acquisition enhanced the Company’s cost position and strengthen its combined brand and distribution in Europe. The acquisition’s results and purchase price allocation are included in the consolidated financial statements since the date of the acquisition. The Company’s acquisition of Emil resulted in a goodwill allocation of $59,491 , indefinite-lived tradename intangible asset of $16,196 and an intangible asset subject to amortization of $2,348 . The goodwill is not expected to be deductible for tax purposes. The factors contributing to the recognition of the amount of goodwill include product, sales and manufacturing synergies. The Emil results are reflected in the Global Ceramic segment and the results of Emil’s operations are not material to the Company’s consolidated results of operations. Other Acquisitions During the second quarter of 2017, the Company completed the acquisition of two businesses in the Global Ceramic segment for $37,250 , resulting in a goodwill allocation of $1,002 . The Company also completed the acquisition of a business in the Flooring NA segment for $26,623 . During the first quarter of 2017, the Company acquired certain assets of a distribution business in the Flooring ROW segment for $1,407 , resulting in intangible assets subject to amortization of $827 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue recognition and accounts receivable The Company recognizes revenues when it satisfies performance obligations as evidenced by the transfer of control of the promised goods to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The nature of the promised goods are ceramic, stone, carpet, resilient, laminate, wood and other flooring products. Payment is typically received 90 days or less from the invoice date. The Company adjusts the amounts of revenue for expected cash discounts, sales allowances, returns, and claims, based upon historical experience. The Company adjusts accounts receivable for doubtful account allowances based upon historical bad debt, claims experience, periodic evaluation of specific customer accounts, and the aging of accounts receivable. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Contract liabilities The Company historically records contract liabilities when it receives payment prior to fulfilling a performance obligation. Contract liabilities related to revenues are recorded in accounts payable and accrued expenses on the accompanying condensed consolidating balance sheets. The Company had contract liabilities of $34,486 and $29,124 as of December 31, 2018 and January 1, 2018 , respectively. Performance obligations Substantially all of the Company’s revenue is recognized at a point in time when the product is either shipped or received from the Company's facilities and control of the product is transferred to the customer. Accordingly, in any period, the Company does not recognize a significant amount of revenue from performance obligations satisfied or partially satisfied in prior periods and the amount of such revenue recognized during the years ended December 31, 2018 , 2017 , and 2016 was immaterial. Costs to obtain a contract The Company historically incurs certain incremental costs to obtain revenue contracts. These costs relate to marketing display structures and are capitalized when the amortization period is greater than one year, with the amount recorded in other assets on the accompanying condensed consolidated balance sheets. Capitalized costs to obtain contracts were $57,840 and $43,259 as of December 31, 2018 and January 1, 2018 , respectively. Amortization expense recognized during 2018 related to these capitalized costs was $55,588 . Practical expedients and policy elections The Company elected the following practical expedients and policy elections: • Incremental costs of obtaining a contract is recorded as an expense when incurred in selling, general and administrative expenses if the amortization period is less than one year . • Shipping and handling activities performed after control has been transferred is accounted for as a fulfillment cost in cost of sales. Revenue disaggregation The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories during the years ended December 31, 2018 , 2017 and 2016 , respectively: December 31, 2018 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,251,233 3,851,267 1,289 — 6,103,789 Europe 714,315 6,487 1,861,890 — 2,582,692 Russia 245,867 2 103,351 — 349,220 Other 341,441 171,392 435,100 — 947,933 Total $ 3,552,856 4,029,148 2,401,630 — 9,983,634 Product Categories Ceramic & Stone $ 3,552,856 68,337 — — 3,621,193 Carpet & Resilient — 3,258,029 645,669 — 3,903,698 Laminate & Wood — 702,782 850,250 — 1,553,032 Other (1) — — 905,711 — 905,711 Total $ 3,552,856 4,029,148 2,401,630 — 9,983,634 December 31, 2017 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,223,998 3,809,211 2,111 (120 ) 6,035,200 Europe 645,341 19,100 1,698,628 — 2,363,069 Russia 235,043 (1 ) 91,033 — 326,075 Other 300,718 182,548 283,680 — 766,946 Total $ 3,405,100 4,010,858 2,075,452 (120 ) 9,491,290 Product Categories Ceramic & Stone $ 3,405,100 80,145 — — 3,485,245 Carpet & Resilient — 3,219,971 435,931 — 3,655,902 Laminate & Wood — 710,742 808,675 — 1,519,417 Other (1) — — 830,846 (120 ) 830,726 Total $ 3,405,100 4,010,858 2,075,452 (120 ) 9,491,290 December 31, 2016 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,168,693 3,670,153 3,319 — 5,842,165 Europe 533,339 15,628 1,565,005 — 2,113,972 Russia 180,420 12 75,304 — 255,736 Other 292,254 179,953 275,007 — 747,214 Total $ 3,174,706 3,865,746 1,918,635 — 8,959,087 Product Categories Ceramic & Stone $ 3,174,706 83,431 — — 3,258,137 Carpet & Resilient — 3,042,729 370,117 — 3,412,846 Laminate & Wood — 739,586 754,409 — 1,493,995 Other (1) — — 794,109 — 794,109 Total $ 3,174,706 3,865,746 1,918,635 — 8,959,087 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Restructuring, Acquisition, and
Restructuring, Acquisition, and Integration-Related Costs | 12 Months Ended |
Dec. 31, 2018 | |
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 including accelerated depreciation and workforce reductions. Restructuring, acquisition transaction and integration-related costs consisted of the following during the year ended December 31, 2018 , 2017 and 2016 , respectively (in thousands): 2018 2017 2016 Cost of sales Restructuring costs $ 43,733 33,109 33,582 Acquisition integration-related costs 3,330 2,916 4,722 Restructuring and integration-related costs $ 47,063 36,025 38,304 Selling, general and administrative expenses Restructuring costs $ 15,259 3,976 4,881 Acquisition transaction-related costs 4,977 2,751 — Acquisition integration-related costs 11,351 6,188 7,438 Restructuring, acquisition and integration-related costs $ 31,587 12,915 12,319 The restructuring activity for the years ended December 31, 2018 and 2017 , respectively is as follows (in thousands): Lease impairments Asset write-downs Severance Other restructuring costs Total Balance as of December 31, 2016 $ — — 5,183 6,243 11,426 Provision - Global Ceramic segment 492 — 1,082 (32 ) 1,542 Provision - Flooring NA segment 316 6,849 2,500 22,131 31,796 Provision - Flooring ROW segment — 650 1,518 1,465 3,633 Provision - Corporate — — — 114 114 Cash payments (449 ) (190 ) (9,469 ) (29,725 ) (39,833 ) Non-cash items — (7,309 ) (230 ) (44 ) (7,583 ) Balance as of December 31, 2017 359 — 584 152 1,095 Provision - Global Ceramic segment 528 1,131 7,113 337 9,109 Provision - Flooring NA segment 236 2,940 4,985 33,807 41,968 Provision - Flooring ROW segment — — 4,741 (104 ) 4,637 Provision - Corporate — — 3,278 — 3,278 Cash payments (726 ) — (12,605 ) (30,385 ) (43,716 ) Non-cash items — (4,071 ) (230 ) (3,557 ) (7,858 ) Balance as of December 31, 2018 $ 397 — 7,866 250 8,513 The Company expects the remaining severance and other restructuring costs to be paid over the next year. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables December 31, December 31, Customers, trade $ 1,562,284 1,538,348 Income tax receivable 17,217 9,835 Other 101,376 96,079 1,680,877 1,644,262 Less allowance for discounts, returns, claims and doubtful accounts 74,718 86,103 Receivables, net $ 1,606,159 1,558,159 The following table reflects the activity of allowances for discounts, returns, claims and doubtful accounts for the years ended December 31: Balance at beginning of year Acquisitions Additions charged to net sales or costs and expenses Deductions(1) Balance at end of year 2016 $ 78,947 — 296,419 297,031 78,335 2017 78,335 6,510 308,507 307,249 86,103 2018 86,103 4,240 317,716 333,341 74,718 (1) Represents charge-offs, net of recoveries. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories are as follows: December 31, December 31, Finished goods $ 1,582,112 1,326,038 Work in process 165,616 159,921 Raw materials 539,887 462,704 Total inventories $ 2,287,615 1,948,663 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company conducted its annual impairment assessment on the first day of the fourth quarter of 2018 and determined the fair values of its reporting units and trademarks exceeded their carrying values. As a result, no impairment was indicated. The following table summarizes the components of intangible assets: Goodwill: Global Ceramic Flooring NA Flooring ROW Total Balances as of December 31, 2016 Goodwill $ 1,482,226 869,764 1,249,861 3,601,851 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) 950,296 526,710 797,420 2,274,426 Goodwill recognized during the year 60,493 — — 60,493 Currency translation during the year 25,153 — 111,387 136,540 Balances as of December 31, 2017 Goodwill 1,567,872 869,764 1,361,248 3,798,884 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) 1,035,942 526,710 908,807 2,471,459 Goodwill recognized during the year 19,821 4,434 95,483 119,738 Currency translation during the year (22,706 ) — (47,525 ) (70,231 ) Balances as of December 31, 2018 Goodwill 1,564,987 874,198 1,409,206 3,848,391 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) $ 1,033,057 531,144 956,765 2,520,966 Intangible assets: During the third quarter of 2016, the Company determined that it needed to simplify the branding strategy in the Flooring NA segment by consolidating products under the Mohawk Group brands and discontinuing the Lees brand. This resulted in the Company writing off the full value of the Lees tradename and recording an impairment charge of $47,905 in selling, general and administrative expenses in the consolidated statements of operations. Tradenames Indefinite life assets not subject to amortization: Balance as of December 31, 2016 $ 580,147 Intangible assets acquired during the year 16,196 Intangible assets impaired during the year — Currency translation during the year 47,865 Balance as of December 31, 2017 644,208 Intangible assets acquired during the year 91,782 Intangible assets impaired during the year — Currency translation during the year (28,610 ) Balance as of December 31, 2018 $ 707,380 Customer relationships Patents Other Total Intangible assets subject to amortization: Balances as of December 31, 2016 $ 235,704 13,424 5,331 254,459 Intangible assets acquired during the year 3,175 — — 3,175 Amortization during the year (26,602 ) (7,543 ) (134 ) (34,279 ) Currency translation during the year 22,558 1,180 466 24,204 Balances as of December 31, 2017 234,835 7,061 5,663 247,559 Intangible assets acquired during the year 47,361 — 7 47,368 Amortization during the year (28,389 ) (2,272 ) (84 ) (30,745 ) Currency translation during the year (9,179 ) (294 ) (279 ) (9,752 ) Balances as of December 31, 2018 $ 244,628 4,495 5,307 254,430 December 31, 2018 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 625,263 47,361 (21,610 ) 406,386 244,628 Patents 266,969 — (12,486 ) 249,988 4,495 Other 6,825 7 (298 ) 1,227 5,307 Total $ 899,057 47,368 (34,394 ) 657,601 254,430 December 31, 2017 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 569,980 3,175 52,108 390,428 234,835 Patents 234,022 — 32,947 259,908 7,061 Other 6,330 — 495 1,162 5,663 Total $ 810,332 3,175 85,550 651,498 247,559 Years Ended December 31, 2018 2017 2016 Amortization expense $ 30,745 34,279 39,545 Estimated amortization expense for the years ending December 31 are as follows: 2019 $ 28,213 2020 28,213 2021 28,021 2022 26,190 2023 24,558 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Following is a summary of property, plant and equipment: December 31, December 31, Land $ 407,780 385,027 Buildings and improvements 1,584,240 1,413,877 Machinery and equipment 5,334,060 4,603,911 Furniture and fixtures 230,644 211,730 Leasehold improvements 94,683 78,803 Construction in progress 575,667 792,936 8,227,074 7,486,284 Less accumulated depreciation and amortization 3,527,172 3,215,494 Net property, plant and equipment $ 4,699,902 4,270,790 Additions to property, plant and equipment included capitalized interest of $10,684 , $8,543 and $5,608 in 2018 , 2017 and 2016 , respectively. Depreciation expense was $487,411 , $408,646 and $366,233 for 2018 , 2017 and 2016 , respectively. Included in property, plant and equipment are capital leases with a cost of $7,106 and $5,984 and accumulated depreciation of $2,333 and $2,071 as of December 31, 2018 and 2017 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Senior Credit Facility On March 26, 2015, the Company amended and restated its 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 (as amended and restated, the “2015 Senior Credit Facility”). The 2015 Senior Credit Facility eliminated 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 flexibility to make acquisitions and incur additional indebtedness. On March 1, 2016, the Company amended the 2015 Senior Credit Facility to, among other things, carve out from the general limitation on subsidiary indebtedness the issuance of Euro-denominated commercial paper notes by subsidiaries. Additionally, at several points in 2016, the Company extended the maturity date of the 2015 Senior Credit Facility from March 26, 2020 to March 26, 2021. In the first half of 2017, the Company amended the 2015 Senior Credit Facility to extend the maturity date from March 26, 2021 to March 26, 2022. 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% ( 1.125% as of December 31, 2018 ), or (b) the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds rate plus 0.5% , or the Eurocurrency Rate (as defined in the 2015 Senior Credit Facility) rate plus 1.0% , plus an applicable margin ranging between 0.00% and 0.75% ( 0.125% as of December 31, 2018 ). 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 ( 0.125% as of December 31, 2018 ). 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. 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 limitations contain customary exceptions or, in certain cases, do not apply as long as the Company is in compliance with the financial ratio requirements and is not otherwise in default. The 2015 Senior Credit Facility also contains customary representations and warranties and events of default, subject to customary grace periods. In 2017, the Company paid financing costs of $567 in connection with the extension of its 2015 Senior Credit Facility from March 26, 2021 to March 26, 2022. These costs were deferred and, along with unamortized costs of $6,873 are being amortized over the term of the 2015 Senior Credit Facility. As of December 31, 2018 , amounts utilized under the 2015 Senior Credit Facility included $57,896 of borrowings and $54,591 of standby letters of credit related to various insurance contracts and foreign vendor commitments. The outstanding borrowings of $1,339,843 under the Company’s U.S. and European commercial paper programs as of December 31, 2018 reduce the availability of the 2015 Senior Credit Facility. Including commercial paper borrowings, the Company has utilized $1,452,330 under the 2015 Senior Credit Facility resulting in a total of $347,670 available as of December 31, 2018 . Commercial Paper On February 28, 2014 and July 31, 2015 , the Company established programs for the issuance of unsecured commercial paper in the United States and Eurozone capital markets, respectively. Commercial paper issued under the U.S. and European programs will have maturities ranging up to 397 and 183 days, respectively. None of the commercial paper notes may be voluntarily prepaid or redeemed by the Company and all rank pari passu with all of the Company’s other unsecured and unsubordinated indebtedness. To the extent that the Company issues European commercial paper notes through a subsidiary of the Company, the notes will be fully and unconditionally guaranteed by the Company. The Company uses its 2015 Senior Credit Facility as a liquidity backstop for its commercial paper programs. Accordingly, the total amount outstanding under all of the Company's commercial paper programs may not exceed $1,800,000 (less any amounts drawn on the 2015 Senior Credit Facility) at any time. The proceeds from the issuance of commercial paper notes will be available for general corporate purposes. As of December 31, 2018 there was $632,668 outstanding under the U.S. commercial paper program, and the euro equivalent of $707,175 under the European program. The weighted-average interest rate and maturity period for the U.S. program were 2.98% and 27.64 days, respectively. The weighted-average interest rate and maturity period for the European program were (0.21)% and 28.61 days, respectively. Senior Notes On May 18, 2018 , Mohawk Capital Finance S.A. (“Mohawk Finance”), an indirect wholly-owned finance subsidiary of the Company, completed the issuance and sale of €300,000 aggregate principal amount of its Floating Rate Notes due May 18, 2020 (“2020 Floating Rate Notes”). The 2020 Floating Rate Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 2020 Floating Rate Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. These notes bear interest at a rate per annum, reset quarterly, equal to three-month EURIBOR plus 0.3% (but in no event shall the interest rate be less than zero). Interest on the 2020 Floating Rate Notes is payable quarterly on August 18 , November 18 , February 18 , and May 18 of each year. Mohawk Finance paid financing costs of $890 in connection with the 2020 Floating Rate Notes. These costs were deferred and are being amortized over the term of the 2020 Floating Rate Notes. On September 11, 2017 , Mohawk Finance completed the issuance and sale of €300,000 aggregate principal amount of its Floating Rate Notes due September 11, 2019 (“2019 Floating Rate Notes”). The 2019 Floating Rate Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 2019 Floating Rate Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. These notes bear interest at a rate per annum, reset quarterly, equal to three-month EURIBOR plus 0.3% (but in no event shall the interest rate be less than zero). Interest on the 2019 Floating Rate Notes is payable quarterly on September 11 , December 11 , March 11 , and June 11 of each year. Mohawk Finance paid financing costs of $911 in connection with the 2019 Floating Rate Notes. These costs were deferred and are being amortized over the term of the Floating Rate Notes. On June 9, 2015, the Company issued €500,000 aggregate principal amount of 2.00% Senior Notes (“ 2.00% Senior Notes”) due January 14, 2022. The 2.00% Senior Notes are senior unsecured obligations of the Company and rank pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 2.00% Senior Notes is payable annually in cash on January 14 of each year, commencing on January 14, 2016. The Company paid financing costs of $4,218 in connection with the 2.00% Senior Notes. These costs were deferred and are being amortized over the term of the 2.00% Senior Notes. On January 31, 2013, the Company issued $600,000 aggregate principal amount of 3.85% Senior Notes (“ 3.85% Senior Notes”) due February 1, 2023. The 3.85% Senior Notes are senior unsecured obligations of the Company and rank pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 3.85% Senior Notes is payable semi-annually in cash on February 1 and August 1 of each year. 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% Senior Notes due January 15, 2016 . During 2014, the Company purchased for cash approximately $254,445 aggregate principal amount of its outstanding 6.125% senior notes due January 15, 2016 . On January 15, 2016, the Company paid the remaining $645,555 outstanding principal of its 6.125% Senior Notes (plus accrued but unpaid interest) utilizing cash on hand and borrowings under its U.S. commercial paper program. As defined in the related agreements, the Company’s senior notes contain covenants, representations and warranties and events of default, subject to exceptions, and restrictions on the Company’s financial and business operations, including limitations on liens, restrictions on entering into sale and leaseback transactions, fundamental changes, and a provision allowing the holder of the notes to require repayment upon a change of control triggering event. 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. Amounts borrowed under the Securitization Facility bore interest at LIBOR plus an applicable margin of 0.70% per annum and the borrower paid a commitment fee at a per annum rate of 0.30% on the unused amount of each lender’s commitment. On December 10, 2015, the Company extended the termination date to December 19, 2016, and on December 13, 2016, the Company extended the termination date to December 19, 2017. The Company paid financing costs of $250 in connection with the second extension. These costs were deferred and amortized over the term of the Securitization Facility. The Securitization Facility expired in accordance with its terms on December 19, 2017. The fair values and carrying values of the Company’s debt instruments are detailed as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value 3.85% senior notes, payable February 1, 2023; interest payable semiannually $ 599,904 600,000 622,752 600,000 Floating Rate Notes, payable May 18, 2020; interest payable quarterly 343,004 343,289 — — 2.00% senior notes, payable January 14, 2022; interest payable annually 587,487 572,148 634,193 600,096 Floating Rate Notes, payable September 11, 2019, interest payable quarterly 343,560 343,289 360,807 360,058 U.S. commercial paper 632,668 632,668 228,500 228,500 European commercial paper 707,175 707,175 912,146 912,146 Five-year senior secured credit facility, due March 26, 2022 57,896 57,896 62,104 62,104 Capital leases and other 6,664 6,664 6,934 6,934 Unamortized debt issuance costs (5,155 ) (5,155 ) (6,260 ) (6,260 ) Total debt 3,273,203 3,257,974 2,821,176 2,763,578 Less current portion of long term debt and commercial paper 1,742,373 1,742,373 1,203,683 1,203,683 Long-term debt, less current portion $ 1,530,830 1,515,601 1,617,493 1,559,895 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. The aggregate maturities of total debt as of December 31, 2018 are as follows: 2019 $ 1,742,373 2020 344,323 2021 617 2022 572,568 2023 600,420 Thereafter 2,828 $ 3,263,129 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are as follows: December 31, 2018 December 31, 2017 Outstanding checks in excess of cash $ 14,624 8,879 Accounts payable, trade 811,879 810,034 Accrued expenses 430,431 363,919 Product warranties 47,511 39,035 Accrued interest 21,908 22,363 Accrued compensation and benefits 197,513 207,442 Total accounts payable and accrued expenses $ 1,523,866 1,451,672 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted for the years ended December 31, 2018 , 2017 and 2016 based on the grant-date fair value estimated in accordance with the provisions of 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 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 December 31, 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. The grant date fair value of restricted stock and RSUs is 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. On May 19, 2017, the Company’s stockholders approved the 2017 Long-Term Incentive Plan (“2017 Plan”), which allows the Company to reserve up to a maximum of 3,000 shares of common stock for issuance upon the grant or exercise of awards under the 2017 Plan. No additional awards may be granted under the 2012 Plan after May 19, 2017. Stock Option Plans Additional information relating to the Company’s stock option plans follows: 2018 2017 2016 Options outstanding at beginning of year 63 91 169 Options exercised — (28 ) (78 ) Options forfeited and expired — — — Options outstanding at end of year 63 63 91 Options exercisable at end of year 63 63 90 Option prices per share: Options exercised during the year $ — 57.34-66.14 28.37-93.65 Options forfeited and expired during the year $ — — — Options outstanding at end of year 57.34-66.14 57.34-66.14 57.34-66.14 Options exercisable at end of year 57.34-66.14 57.34-66.14 57.34-66.14 During 2018 , 2017 and 2016 , a total of 1 shares were awarded each year to certain non-employee directors in lieu of cash for their annual retainers. A summary of the Company’s options under it’s long-term incentive plans as of December 31, 2018 , and changes during the year then ended is presented as follows: Shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Options outstanding, December 31, 2017 63 $ 62.86 Granted — — Exercised — — Forfeited and expired — — Options outstanding, December 31, 2018 63 $ 62.86 2.8 $ 3,415 Vested and expected to vest as of December 31, 2018 63 $ 62.86 2.8 $ 3,415 Exercisable as of December 31, 2018 63 $ 62.86 2.8 $ 3,415 The Company has not granted options since the year ended December 31, 2012. The total intrinsic value of options exercised during the years ended December 31, 2018 , 2017 , and 2016 was $0 , $5,005 and $10,571 , respectively. Total compensation expense recognized for the years ended December 31, 2018 , 2017 and 2016 was $0 ( $0 , net of tax), $6 ( $4 , net of tax) and $ 40 ($ 24 , net of tax), respectively, which was allocated to selling, general and administrative expenses. The remaining unamortized expense for non-vested compensation expense as of December 31, 2018 was $0 . The following table summarizes information about the Company’s stock options outstanding as of December 31, 2018 : Outstanding Exercisable Exercise price range Number of shares Average life Average price Number of shares Average price $57.34-$57.34 23 2.15 57.34 23 57.34 $66.14-$66.14 40 3.14 66.14 40 66.14 Total 63 2.77 $ 62.86 63 $ 62.86 Restricted Stock Plans A summary of the Company’s RSUs under the Company’s long-term incentive plans as of December 31, 2018 , and changes during the year then ended is presented as follows: Shares Weighted average grant date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value Restricted Stock Units outstanding, December 31, 2017 555 $ 147.28 Granted 136 231.25 Released (235 ) 156.56 Forfeited (10 ) 211.16 Restricted Stock Units outstanding, December 31, 2018 446 $ 166.56 1.1 $ 51,501 Expected to vest as of December 31, 2018 440 1.1 $ 50,746 The Company recognized stock-based compensation costs related to the issuance of RSUs of $31,382 ( $24,436 , net of taxes), $36,316 ( $22,037 , net of taxes) and $35,019 ($ 21,250 , net of taxes) for the years ended December 31, 2018 , 2017 and 2016 , respectively, which has been allocated to selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $20,834 as of December 31, 2018 , and will be recognized as expense over a weighted-average period of approximately 1.26 years. Additional information relating to the Company’s RSUs under the Company’s long-term incentive plans are as follows: 2018 2017 2016 Restricted Stock Units outstanding, January 1 555 695 750 Granted 136 154 187 Released (235 ) (284 ) (226 ) Forfeited (10 ) (10 ) (16 ) Restricted Stock Units outstanding, December 31 446 555 695 Expected to vest as of December 31 440 546 682 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Expense (Income) | Other Expense (Income) Following is a summary of other expense (income): 2018 2017 2016 Foreign currency losses $ 9,613 8,395 1,099 Release of indemnification asset 4,606 4,459 5,371 All other, net (6,921 ) (7,649 ) (8,199 ) Total other expense (income) $ 7,298 5,205 (1,729 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Following is a summary of earnings before income taxes for United States and foreign operations: 2018 2017 2016 United States $ 387,564 754,562 627,567 Foreign 661,637 563,295 613,558 Earnings before income taxes $ 1,049,201 1,317,857 1,241,125 Income tax expense (benefit) for the years ended December 31, 2018 , 2017 and 2016 consists of the following: 2018 2017 2016 Current income taxes: U.S. federal $ 22,700 327,697 247,917 State and local 14,521 17,811 31,939 Foreign 58,669 73,248 61,712 Total current 95,890 418,756 341,568 Deferred income taxes: U.S. federal 54,983 (17,419 ) (16,167 ) State and local 19,076 (3,046 ) (22,115 ) Foreign 14,397 (55,126 ) 4,273 Total deferred 88,456 (75,591 ) (34,009 ) Total $ 184,346 343,165 307,559 The geographic dispersion of earnings and losses contributes to the annual changes in the Company’s effective tax rates. Approximately 37% of the Company’s current year earnings before income taxes was generated in the United States at a combined federal and state effective tax rate that is higher than the Company’s overall effective tax rate. The Company is also subject to taxation in other jurisdictions where it has operations, including Australia, Belgium, Brazil, Bulgaria, France, Ireland, Italy, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Russia, Spain, the U.K. and the Ukraine. The effective tax rates that the Company accrues in these jurisdictions vary widely, but they are generally lower than the Company’s overall effective tax rate. The Company’s domestic effective tax rates for the years ended December 31, 2018 , 2017 and 2016 were 28.7% , 43.1% , and 38.5% , respectively, and its non-U.S. effective tax rates for the years ended December 31, 2018 , 2017 and 2016 were 11.0% , 3.2% , and 10.8% , respectively. The difference in rates applicable in foreign jurisdictions results from a number of factors, including lower statutory rates, historical loss carry-forwards, financing arrangements, and other factors. The Company’s effective tax rate has been and will continue to be impacted by the geographical dispersion of the Company’s earnings and losses. To the extent that domestic earnings increase while the foreign earnings remain flat or decrease, or increase at a lower rate, the Company’s effective tax rate will increase. Income tax expense (benefit) attributable to earnings before income taxes differs from the amounts computed by applying the U.S. statutory federal income tax rate to earnings before income taxes as follows: 2018 2017 2016 Income taxes at statutory rate $ 220,332 461,250 434,394 State and local income taxes, net of federal income tax benefit 22,315 10,133 6,298 Foreign income taxes (a) (39,915 ) (113,520 ) (111,217 ) Change in valuation allowance 2,472 10,008 (21,106 ) Manufacturing deduction — (11,911 ) (15,186 ) 2017 revaluation of deferred tax assets and liabilities (b) — (150,546 ) — Transition Tax 28,201 105,165 — Transition tax planning initiatives (18,706 ) 14,825 3,881 Tax contingencies and audit settlements, net (31,874 ) 23,097 2,496 Other, net 1,521 (5,336 ) 7,999 $ 184,346 343,165 307,559 (a) Foreign income taxes includes statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. The significant decrease in foreign income taxes for 2018 is primarily due to the impact of the U.S. statutory rate reduction from 35% to 21% as a result of the Tax Cuts and Jobs Act (“TCJA”) discussed below. (b) 2017 revaluation of deferred tax assets and liabilities includes $106,107 related to the TCJA and $44,439 related to Belgium tax reform. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 are presented below: 2018 2017 Deferred tax assets: Accounts receivable $ 8,312 18,481 Inventories 47,212 41,169 Employee benefits 37,335 42,191 Accrued expenses and other 71,621 52,635 Deductible state tax and interest benefit 2,904 2,087 Intangibles 16,134 22,119 Federal, foreign and state net operating losses and credits 575,625 530,978 Gross deferred tax assets 759,143 709,660 Valuation allowance (347,786 ) (362,963 ) Net deferred tax assets 411,357 346,697 Deferred tax liabilities: Inventories (18,332 ) (14,423 ) Plant and equipment (477,734 ) (397,668 ) Intangibles (181,436 ) (170,817 ) Other liabilities (96,134 ) (31,702 ) Gross deferred tax liabilities (773,636 ) (614,610 ) Net deferred tax liability $ (362,279 ) (267,913 ) The Company evaluates its ability to realize the tax benefits associated with deferred tax assets by analyzing its forecasted taxable income using both historic and projected future operating results, the reversal of existing temporary differences, taxable income in prior carry-back years (if permitted) and the availability of tax planning strategies. The valuation allowance as of December 31, 2018 , and 2017 is $347,786 and $362,963 , respectively. The valuation allowance as of December 31, 2018 relates to the net deferred tax assets of certain of the Company’s foreign subsidiaries as well as certain state net operating losses and tax credits. The total change in the 2018 valuation allowance was a decrease of $15,177 which includes $15,357 related to foreign currency translation. The total change in the 2017 valuation allowance was an increase of $73,885 , which includes $36,792 related to foreign currency translation. Management believes it is more likely than not that the Company will realize the benefits of its deferred tax assets, net of valuation allowances, based upon the expected reversal of deferred tax liabilities and the level of historic and forecasted taxable income over periods in which the deferred tax assets are deductible. As of December 31, 2018 , the Company has state net operating loss carry forwards and state tax credits with potential tax benefits of $68,714 , net of federal income tax benefit; these carry forwards expire over various periods based on taxing jurisdiction. A valuation allowance totaling $37,870 has been recorded against these state deferred tax assets as of December 31, 2018 . In addition, as of December 31, 2018 , the Company has net operating loss carry forwards in various foreign jurisdictions with potential tax benefits of $1,805,648 . A valuation allowance totaling $309,916 has been recorded against these deferred tax assets as of December 31, 2018 . The large increase in the foreign losses is predominantly from the Company’s redemptions of Luxembourg hybrid instruments which resulted in a tax effected loss of $1,298,737 . The Company redeemed these hybrid instruments in response to changes in global tax regimes. The changes were triggered by the EU’s Base Erosion and Profit Shifting “BEPS” and Anti-Tax Avoidance Directives “ATAD” I and II initiatives, recently adopted by various member states. The Company has recorded a ASC 740-10 liability for the full tax effected loss, as reflected in the Tax Uncertainties section below. This ASC 740-10-45 liability is recorded as a reduction to the related deferred tax asset in the financial statements as a result of management’s determination that it is not more likely than not that the benefit will be realized. Historically, the Company has not provided for U.S. federal and state income taxes on the undistributed accumulated earnings of its foreign subsidiaries because such earnings were deemed to be permanently reinvested. Due to the passage of the Tax Cuts and Jobs Act (“TCJA”) on December 22, 2017, the Company was required to recognize U.S. federal and state taxes on the higher of its accumulated earnings as of November 2, 2017, or December 31, 2017. Accordingly, as of December 31, 2018 , the Company recognized $133,366 of income tax expense on its foreign earnings . As of December 31, 2018 , the Company has recognized net income tax expense on earnings of approximately $1,936,000 as discussed further below. Should these earnings be distributed in the form of dividends in the future, the Company might be subject to withholding taxes (possibly offset by U.S. foreign tax credits) in various foreign jurisdictions, but the Company would not expect incremental U.S. federal or state taxes to be accrued on these previously taxed earnings. Despite the new territorial tax regime created by the TCJA, the Company continues to assert that earnings of its foreign subsidiaries are permanently reinvested. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the income tax effects of the TCJA. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date of the TCJA for companies to complete the accounting under ASC 740, Income Taxes (“ASC 740”). In accordance with SAB 118, a company must (1) reflect the income tax effects of those aspects of TCJA for which the accounting under ASC 740 is complete, (2) record a provisional estimate for those aspects of TCJA for which the accounting is incomplete but a reasonable estimate can be made, and/or (3) continue to apply ASC 740 on the basis of the provisions of tax laws in effect immediately before the enactment of the TCJA if no reasonable estimate can be made. At December 31, 2017, the Company has recorded a net provisional tax expense of $45,249 based on the initial impact of the TCJA and related transactions for the year ended December 31, 2017. This provisional expense primarily consisted of a tax expense of $105,165 for the Deemed Repatriation Transition Tax and $46,191 for related transactions, offset by a tax benefit of $106,107 for the corporate tax rate reduction, and the associated revaluation of the Company’s net deferred tax liability. In accordance with the SAB 118 measurement period, the Company has completed its accounting for the income tax effects of all elements of the TCJA and reduced the net provisional tax expense to $ 25,564 . The Deemed Repatriation Transition Tax (“Transition Tax”) is a tax on previously untaxed earnings of certain foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 earnings of the relevant foreign subsidiaries, as well as the amount of non-U.S. income and withholding taxes paid on such earnings. The Company has finalized its determination of the Transition Tax obligation and will elect to pay the transition tax liability of $132,236 over the 8-year deferral period, with 8% due in each of the first five years, 15% in the sixth year, 20% in the seventh year, and 25% in the eighth year. This total liability, except for the first installment, is recorded in other long-term liabilities within the consolidated balance sheet. In addition, the Company will pay $ 1,130 of state tax resulting from the transition tax with its 2018 state tax returns. Due to the fiscal year end of the company’s foreign subsidiaries, the new Global Intangible Low-Taxed Income (“GILTI”) rules, are only applicable for one-twelfth of the Company’s earnings for the calendar year ending December 31, 2018. The Company’s accounting for the effects of GILTI have been completed and an accrual for the current year has been included in current tax expense. In accordance with U.S. GAAP guidance, the Company will elect to treat tax due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”). Tax Uncertainties In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing jurisdictions. Accordingly, the Company accrues liabilities when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with ASC 740-10. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense (benefit). Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s consolidated financial position but could possibly be material to the Company’s consolidated results of operations or cash flow in any given quarter or annual period. As of December 31, 2018 , the Company’s gross amount of unrecognized tax benefits is $1,330,713 , excluding interest and penalties. If the Company were to prevail on all uncertain tax positions, $23,477 of the unrecognized tax benefits would affect the Company’s effective tax rate, exclusive of any benefits related to interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 Balance as of January 1 $ 65,631 46,434 Additions based on tax positions related to the current year (a) 1,304,447 28,663 Additions for tax positions of acquired companies 1,413 1,776 Additions for tax positions of prior years 5,098 876 Transition tax planning initiatives (27,470 ) — Reductions resulting from the lapse of the statute of limitations (8,110 ) (14,502 ) Settlements with taxing authorities (9,773 ) (655 ) Effects of foreign currency translation (523 ) 3,039 Balance as of December 31 $ 1,330,713 65,631 (a) Includes tax effected loss of $1,298,737 on Luxembourg hybrid instruments redemptions. This $1,298,737 of unrecognized benefit is presented as a reduction to the related deferred tax asset in the balance sheet. The Company will continue to recognize interest and penalties related to unrecognized tax benefits as a component of its income tax provision. As of December 31, 2018 and 2017 , the Company has $7,184 and $8,252 , respectively, accrued for the payment of interest and penalties, excluding the federal tax benefit of interest deductions where applicable. During the years ended December 31, 2018 , 2017 and 2016 , the Company accrued interest and penalties through the consolidated statements of operations of $(1,085) , $165 and $2,170 , respectively. The Company believes that its unrecognized tax benefits could decrease by $9,166 within the next twelve months. The Company is currently under examination by the Internal Revenue Service for tax years 2014 and 2015 but has effectively settled all Federal income tax matters related to years prior to 2014. Various other state and foreign income tax returns are open to examination for various years. Belgian Tax Matter Between 2012 and 2014, the Company received assessments from the Belgian tax authority for the calendar years 2005 through 2010 in the amount of € 46,135 , € 38,817 , € 39,635 , € 30,131 , € 35,567 and € 43,117 respectively, including penalties, but excluding interest. The Belgian tax authority denied the Company’s formal protests against these assessments and the Company brought all six years before the Court of First Appeal in Bruges. The Court of First Appeal in Bruges, ruled in favor of the Company on January 27, 2016, with respect to the calendar years ending December 31, 2005 and December 31, 2009; and on June 13, 2018, the Court of First Appeal in Bruges, ruled in favor of the Company with respect to the calendar years ending December 31, 2006, December 31, 2007, December 31, 2008 and December 31, 2010. The Belgian tax authority has lodged its Notification of Appeal for all six years with the Ghent Court of Appeal. In December 2018, the Belgian tax authority issued an assessment for the year ended December 31, 2011, in the amount of € 37,991 including penalties, but excluding interest. In January of 2019, the Company received a “Notice of Change” from the Belgian tax authority for tax years 2012 through 2017 in the amount of € 38,858 , € 11,108 , € 23,522 , € 30,610 , € 92,109 and € 78,174 respectively, including penalties, but excluding interest. The Company intends to respond to these notices in a timely manner and will file formal protests should the tax authority issue assessments for these years. The Notices of Change are based on largely the same facts underlying the positive rulings, which the Belgian tax authority is appealing. The Company continues to disagree with the views of the Belgian tax authority on this matter and will persist in its vigorous defense. Nevertheless, on May 24, 2016, the tax collector representing the Belgian tax authorities imposed a lien on the Company’s properties in Wielsbeke (Ooigemstraat and Breestraat), Oostrozebeke (Ingelmunstersteenweg) and Desselgem (Waregemstraat) included in the Flooring ROW segment. The purpose of the lien is to provide security for payment should the Belgian tax authority prevail on its appeal. The lien does not interfere with the Company’s operations at these properties. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is obligated under various operating leases for office and manufacturing space, machinery, and equipment. Future minimum lease payments under non-cancelable capital and operating leases (with initial or remaining lease terms in excess of one year) as of December 31 are as follows: Capital Operating Total Future Payments 2019 $ 1,494 116,110 117,604 2020 1,195 93,724 94,919 2021 766 66,129 66,895 2022 562 42,247 42,809 2023 555 22,207 22,762 Thereafter 3,215 26,097 29,312 Total payments 7,787 366,514 374,301 Less amount representing interest 1,123 Present value of capitalized lease payments $ 6,664 Rental expense under operating leases was $143,513 , $145,176 and $125,103 in 2018 , 2017 and 2016 , respectively. The Company had approximately $54,591 and $56,267 in standby letters of credit for various insurance contracts and commitments to foreign vendors as of December 31, 2018 and 2017 , respectively that expire within two years. The Company is involved in litigation from time to time in the regular course of its business. Except as noted below and in Note 13-Income Taxes Belgian Tax Matter , 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. Alabama Municipal Litigation In September 2016, the Water Works and Sewer Board of the City of Gadsden, Alabama (the “Gadsden Water Board”) filed an individual complaint in the Circuit Court of Etowah County, Alabama against certain manufacturers, suppliers, and users of chemicals containing specific perfluorinated compounds, including the Company. On October 26, 2016, the defendants removed the case to the United States District Court for the Northern District of Alabama, Middle Division, alleging diversity of citizenship and fraudulent joinder. The Gadsden Water Board filed a motion to remand the case back to the state court, and the defendants opposed the Gadsden Water Board’s motion. The federal court granted Gadsden Water Board’s motion for remand. In May, 2017, the Water Works and Sewer Board of the Town of Centre, Alabama (the “Centre Water Board”) filed a very similar complaint to the Gadsden Water Board complaint in the Circuit Court of Cherokee County. On June 19, 2017, the defendants removed this case to the United States District Court for the Northern District of Alabama, Middle Division, again alleging diversity of citizenship and fraudulent joinder. The Centre Water Board filed a motion to remand the case back to state court, and the defendants opposed the Centre Water Board’s motion. The federal court granted Centre Water Board's motion for remand. Certain defendants, including the Company, filed dispositive motions in each case arguing that the state court lacks personal jurisdiction over them. Both state courts denied those motions. In June and September 2018, certain defendants, including the Company, petitioned the Alabama Supreme Court for Writs of Mandamus directing each lower court to enter an order granting the defendants’ dispositive motions on personal jurisdiction grounds. Those petitions have been fully briefed and the Company awaits a decision from the Alabama Supreme Court. The Company has never manufactured the perfluorinated compounds at issue but purchased them for use in the manufacture of its carpets prior to 2007. The Gadsden and Centre Water Boards are not alleging that chemical levels in the Company’s wastewater discharge exceeded legal limits. Instead, the Gadsden and Centre Water Boards are seeking lost profits based on allegations that their customers decreased water purchases, as well as reimbursement for the cost of a filter and punitive damages. General 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. The Company is subject to various federal, state, local and foreign environmental health and safety laws and regulations, including those governing air emissions, wastewater discharges, the use, storage, treatment, recycling and disposal of solid and hazardous materials and finished product, and the cleanup of contamination associated therewith. Because of the nature of the Company’s business, the Company has incurred, and will continue to incur, costs relating to compliance with such laws and regulations. The Company is involved in various proceedings relating to environmental matters and is currently engaged in environmental investigation, remediation and post-closure care programs at certain sites. The Company has provided accruals for such activities that it has determined to be both probable and reasonably estimable. The Company does not expect that the ultimate liability with respect to such activities 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. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Consolidated Statements of Cash Flows Information | Consolidated Statements of Cash Flows Information Supplemental disclosures of cash flow information are as follows: 2018 2017 2016 Net cash paid (received) during the years for: Interest $ 46,186 33,952 57,269 Income taxes $ 196,193 373,900 276,789 Supplemental schedule of non-cash investing and financing activities: Additions to property, plant and equipment $ (4,672 ) 30,643 — Fair value of net assets acquired in acquisition $ 831,760 369,956 — Liabilities assumed in acquisition (257,515 ) (119,157 ) — $ 574,245 250,799 — |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has three reporting segments: the Global Ceramic segment, the Flooring NA segment and the Flooring ROW segment. The Global Ceramic segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone, quartz, porcelain slab countertops and other products, which it distributes primarily in North America, Europe, South America 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 Flooring NA segment designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, hardwood, laminate and vinyl products, including luxury vinyl tile (“LVT”), which it distributes 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, including independent floor covering retailers, distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial contractors and commercial end users. The Flooring ROW segment designs, manufactures, sources, licenses and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard (“MDF”), chipboards, other wood products, sheet vinyl and LVT, which it distributes primarily in Europe, Australia, New Zealand and Russia 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. No single customer accounted for more than 10% of net sales for the years ended December 31, 2018 , 2017 or 2016 . Segment information is as follows: 2018 2017 2016 Assets: Global Ceramic $ 5,194,030 4,838,310 4,024,859 Flooring NA 3,938,639 3,702,137 3,410,856 Flooring ROW 3,666,617 3,245,424 2,689,592 Corporate and intersegment eliminations 299,837 308,982 105,289 Total $ 13,099,123 12,094,853 10,230,596 Geographic net sales: United States $ 6,103,789 6,035,200 5,842,165 Europe 2,582,692 2,363,069 2,113,972 Russia 349,220 326,075 255,736 Other 947,933 766,946 747,214 Total $ 9,983,634 9,491,290 8,959,087 Long-lived assets: (1) United States $ 3,485,046 3,339,363 3,092,902 Belgium 1,663,470 1,705,947 1,371,397 Other 2,072,353 1,696,939 1,180,475 Total $ 7,220,869 6,742,249 5,644,774 Net sales by product categories: Ceramic & Stone $ 3,621,193 3,485,245 3,258,137 Carpet & Resilient 3,903,698 3,655,902 3,412,846 Laminate & Wood 1,553,032 1,519,417 1,493,995 Other (2) 905,711 830,726 794,109 Total $ 9,983,634 9,491,290 8,959,087 Net sales: Global Ceramic $ 3,552,856 3,405,100 3,174,706 Flooring NA 4,029,148 4,010,858 3,865,746 Flooring ROW 2,401,630 2,075,452 1,918,635 Intersegment sales — (120 ) — Total $ 9,983,634 9,491,290 8,959,087 (1) Long-lived assets are composed of property, plant and equipment - net, and goodwill. (2) Other includes roofing elements, insulation boards, chipboards and IP contracts. 2018 2017 2016 Operating income: Global Ceramic $ 442,898 525,401 478,448 Flooring NA 347,937 540,337 505,115 Flooring ROW 345,801 329,054 333,091 Corporate and intersegment eliminations (41,310 ) (40,619 ) (36,711 ) Total $ 1,095,326 1,354,173 1,279,943 Depreciation and amortization: Global Ceramic $ 189,904 161,913 135,370 Flooring NA 184,455 159,980 148,067 Flooring ROW 135,350 114,794 116,048 Corporate 12,056 9,985 9,982 Total $ 521,765 446,672 409,467 Capital expenditures (excluding acquisitions): Global Ceramic $ 281,125 310,650 263,401 Flooring NA 262,676 355,941 248,843 Flooring ROW 232,949 221,763 144,207 Corporate 17,360 17,644 15,674 Total $ 794,110 905,998 672,125 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The supplemental quarterly financial data are as follows: Quarters Ended March 31, June 30, September 29, December 31, Net sales $ 2,412,202 2,577,014 2,545,800 2,448,618 Gross profit 704,692 766,555 1,825,367 646,390 Net earnings 208,766 196,586 227,013 229,339 Basic earnings per share 2.80 2.64 3.03 3.07 Diluted earnings per share 2.78 2.62 3.02 3.05 Quarters Ended April 1, July 1, September 30, December 31, Net sales $ 2,220,645 2,453,038 2,448,510 2,369,097 Gross profit 680,353 779,136 783,301 753,624 Net earnings 200,554 260,681 270,025 240,378 Basic earnings per share 2.70 3.51 3.63 3.23 Diluted earnings per share 2.68 3.48 3.61 3.21 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On January 31, 2019, the Company completed an acquisition of a hard surface flooring distribution company based in the Netherlands for approximately €60.6 million . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation Mohawk Industries, Inc. (“Mohawk” or the “Company”), a term which includes the Company and its subsidiaries, is a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The Company's vertically integrated manufacturing and distribution processes provide competitive advantages in the production of carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile (“LVT”) and vinyl flooring. The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash And Cash Equivalents | Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less when purchased to be cash equivalents. |
Accounts Receivable and Revenue Recognition | Accounts Receivable and Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers and all the related amendments (“ASC 606”) and applied the provisions of the standard to all contracts using the modified retrospective method. The cumulative effect of adopting the new revenue standard was immaterial and no adjustment has been recorded to the opening balance of retained earnings. Prior year information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company recognizes revenues when it satisfies performance obligations as evidenced by the transfer of control of the promised goods to customers, when the product is either shipped or received from the Company’s facilities, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The Company reviewed all of its revenue product categories under ASC 606 and the only changes identified were that an immaterial amount of revenue from intellectual property (“IP”) contracts results in earlier recognition of revenue, new controls and processes designed to meet the requirements of the standard were implemented, and the required new disclosures are presented in Note 3, Revenue from Contracts with Customers. The adoption of ASC 606 did not have a material impact on the amounts reported in the Company’s consolidated financial position, results of operations or cash flows. |
Inventories | Inventories The Company accounts for all inventories on the first-in, first-out (“FIFO”) method. Inventories are stated at the lower of cost or net realizable value. Cost has been determined using the FIFO method. Costs included in inventory include raw materials, direct and indirect labor and employee benefits, depreciation, general manufacturing overhead and various other costs of manufacturing. Inventories on hand are compared against anticipated future usage, which is a function of historical usage, anticipated future selling price, expected sales below cost, excessive quantities and an evaluation for obsolescence. |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, including capitalized interest. Depreciation is calculated on a straight-line basis over the estimated remaining useful lives, which are 25 - 40 years for buildings and improvements, 5 - 15 years for machinery and equipment, the shorter of the estimated useful life or lease term for leasehold improvements and 3 - 7 years for furniture and fixtures. |
Accounting for Business Combinations | Accounting for Business Combinations The Company accounts for business combinations under the acquisition method of accounting which requires it to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 350, Intangibles-Goodwill and Other, the Company tests goodwill and other intangible assets with indefinite lives for impairment on an annual basis on the first day of the fourth quarter (or on an interim basis if an event occurs that might reduce the fair value of the reporting unit below its carrying value). The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management’s judgments and assumptions using the discounted cash flows and comparable company market valuation approaches. The Company has identified Global Ceramic, Flooring NA, and Flooring ROW as its reporting units for the purposes of allocating goodwill and intangibles as well as assessing impairments. The valuation approaches are subject to key judgments and assumptions that are sensitive to change such as judgments and assumptions about appropriate sales growth rates, operating margins, weighted average cost of capital (“WACC”), and comparable company market multiples. When developing these key judgments and assumptions, the Company considers economic, operational and market conditions that could impact the fair value of the reporting unit. However, estimates are inherently uncertain and represent only management’s reasonable expectations regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Should a significant or prolonged deterioration in economic conditions occur, such as continued declines in spending for new construction, remodeling and replacement activities; the inability to pass increases in the costs of raw materials and fuel on to customers; or a decline in comparable company market multiples, then key judgments and assumptions could be impacted. The impairment evaluation for indefinite lived intangible assets, which for the Company are its trademarks, is conducted on the first day of the fourth quarter of each year, or more frequently if events or changes in circumstances indicate that an asset might be impaired. The first step of the impairment tests for our indefinite lived intangible assets is a thorough assessment of qualitative factors to determine the existence of events or circumstances that would indicate that it is not more likely than not that the fair value of these assets is less than their carrying amounts. If the qualitative test indicates it is not more likely than not that the fair value of these assets is less than their carrying amounts, a quantitative assessment is not required. If a quantitative test is necessary, the second step of our impairment test involves comparing the estimated fair value of a reporting unit to its carrying amount. The determination of fair value used in the impairment evaluation is based on discounted estimates of future sales projections attributable to ownership of the trademarks. Significant judgments inherent in this analysis include assumptions about appropriate sales growth rates, royalty rates, WACC and the amount of expected future cash flows. The judgments and assumptions used in the estimate of fair value are generally consistent with past performance and are also consistent with the projections and assumptions that are used in current operating plans. Such assumptions are subject to change as a result of changing economic and competitive conditions. The determination of fair value is highly sensitive to differences between estimated and actual cash flows and changes in the related discount rate used to evaluate the fair value of the trademarks. Estimated cash flows are sensitive to changes in the economy among other things. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Intangible assets that do not have indefinite lives are amortized based on average lives, which range from 7 - 16 years. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
Financial Instruments | Financial Instruments The Company’s financial instruments consist primarily of receivables, accounts payable, accrued expenses and long-term debt. The carrying amounts of receivables, accounts payable and accrued expenses approximate their fair value because of the short-term maturity of such instruments. The Company formed a wholly-owned captive insurance company during 2017 that invests in the Company’s commercial paper. These short-term commercial paper investments are classified as trading securities and carried at fair value based upon level two fair value hierarchy. The carrying amount of the Company’s floating rate debt approximates its fair value based upon level two fair value hierarchy. Interest rates that are currently available to the Company for issuance of long-term debt with similar terms and remaining maturities are used to estimate the fair value of the Company’s long-term debt. |
Advertising Costs and Vendor Consideration | Advertising Costs and Vendor Consideration Advertising and promotion expenses are charged to earnings during the period in which they are incurred. Vendor consideration, generally cash, is classified as a reduction of net sales, unless specific criteria are met regarding goods or services that the Company may receive in return for this consideration. The Company makes various payments to customers, including rebates, slotting fees, advertising allowances, buy-downs and co-op advertising. All of these payments reduce gross sales with the exception of co-op advertising. Co-op advertising is classified as a selling, general and administrative expense. |
Product Warranties | Product Warranties The Company warrants certain qualitative attributes of its flooring products. The Company has recorded a provision for estimated warranty and related costs, based on historical experience and periodically adjusts these provisions to reflect actual experience. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived asset groups, which include intangible assets subject to amortization, which for the Company are its patents and customer relationships, for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated by these asset groups. If such asset groups are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets held for sale are reported at the lower of the carrying amount or fair value less estimated costs of disposal and are no longer depreciated. |
Foreign Currency Translation | Foreign Currency Translation The Company’s subsidiaries that operate outside the United States use their local currency as the functional currency. The functional currency is translated into U.S. Dollars for balance sheet accounts using the month end rates in effect as of the balance sheet date and average exchange rate for revenue and expense accounts for each respective period. The translation adjustments are deferred as a separate component of stockholders’ equity, within accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in other income or expense, within the consolidated statements of operations. |
Hedges of Net Investments in Non-U.S. Operations | Hedges of Net Investments in Non-U.S. Operations The Company has numerous investments outside the United States. The net assets of these subsidiaries are exposed to changes and volatility in currency exchange rates. The Company uses foreign currency denominated debt to hedge its non-U.S. net investments against adverse movements in exchange rates. The gains and losses on the Company's net investments in its non-U.S. operations are economically offset by losses and gains on its foreign currency borrowings. The Company designated its €500,000 2.00% Senior Notes borrowing as a net investment hedge of a portion of its European operations. For the years ended December 31, 2018 , December 31, 2017 and December 31, 2016 the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $27,948 ( $20,376 net of taxes), an increase of $74,112 ( $46,320 net of taxes) and a decrease of $20,644 ( $12,902 net of taxes), respectively, which is recorded in the foreign currency translation adjustment component of accumulated other comprehensive income (loss). The increase in the U.S. dollar value of the Company’s debt partially offsets the euro-to-dollar translation of the Company’s net investment in its European operations. |
Earnings Per Share ("EPS") | Earnings per Share (“EPS”) Basic net earnings per share (“EPS”) is calculated using net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year. Diluted EPS is similar to basic EPS except that the weighted-average number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Dilutive common stock options are included in the diluted EPS calculation using the treasury stock method. There were no common stock options and unvested restricted shares (units) that were excluded from the diluted EPS computation because the price was greater than the average market price of the common shares for the periods presented for 2018 , 2017 and 2016 . |
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 ASC 718-10, “ Stock Compensation ”. Compensation expense is generally recognized on a straight-line basis over the awards’ estimated lives for fixed awards with ratable vesting provisions. |
Employee Benefit Plans | Employee Benefit Plans The Company has a 401(k) retirement savings plan (the “Mohawk Plan”) open to substantially all U.S. and Puerto Rico based employees who have completed 90 days of eligible service. The Company contributes $.50 for every $1.00 of employee contributions up to a maximum of 6% of the employee’s salary based upon each individual participants election. Employee and employer contributions to the Mohawk Plan were $55,796 and $22,689 in 2018 , $53,544 and $22,039 in 2017 and $50,542 and $21,002 in 2016 , respectively. The Company also has various pension plans covering employees in Belgium, France, and the Netherlands (the “Non-U.S. Plans”) within the Flooring ROW segment. Benefits under the Non-U.S. Plans depend on compensation and years of service. The Non-U.S. Plans are funded in accordance with local regulations. The Company uses December 31 as the measurement date for its Non-U.S. Plans. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and pensions. The Company does not provide income taxes on currency translation adjustments, as earnings from foreign subsidiaries are considered to be indefinitely reinvested. The Company presents currency translation adjustments on non-controlling interests separately from currency translation adjustments on controlling interests in accumulated other comprehensive income (loss) within stockholders’ equity. |
Self-Insurance Reserves | Self-Insurance Reserves The Company is self-insured in the U.S. for various levels of general liability, auto liability, workers’ compensation and employee medical coverage. Insurance reserves are calculated on an undiscounted basis based on actual claim data and estimates of incurred but not reported claims developed utilizing historical claim trends. Projected settlements and incurred but not reported claims are estimated based on pending claims and historical trends and data. Though the Company does not expect them to do so, actual settlements and claims could differ materially from those estimated. Material differences in actual settlements and claims could have an adverse effect on the Company’s results of operations and financial condition. In the fourth quarter of 2017, the Company formed a wholly-owned captive insurance company, Mohawk Assurance Services, Inc. (“MAS”). MAS insures the retained portion of the Company’s U.S. workers’ compensation, automobile liability and general liability exposures. The Company funded MAS with an initial cash contribution of $16,876 as a contribution to equity and $67,391 as the net present value of premiums owed by the Company for the insurance provided by MAS. MAS began providing coverage to the Company as of December 22, 2017. MAS had investments of $ 53,000 and $ 83,904 in the Company’s commercial paper as of December 31, 2018 and 2017 , respectively. |
Fiscal Year | Fiscal Year The Company ends its fiscal year on December 31. Each of the first three quarters in the fiscal year ends on the Saturday nearest the calendar quarter end with a thirteen week fiscal quarter. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - Effective in Future Years In February 2016, the FASB issued ASU 2016-02, Leases . The amendments create Topic 842, Leases, and supersede the requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The guidance in this update is effective for annual reporting periods beginning after December 15, 2018 including interim periods within that reporting period. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements , which allows for a new, optional transition method where the effective date also acts as the date of initial application on transition. Under this option, the comparative periods would continue to apply the legacy guidance in ASC 840, including the disclosure requirements, and a cumulative effect adjustment would be recognized in the period of adoption rather than the earliest period presented. Under this transition option, comparative reporting would not be required and the provisions of the standard would be applied prospectively to leases in effect at the date of adoption. The Company plans to adopt the provisions of this Topic 842 at the beginning of fiscal year 2019 using a modified retrospective approach through a cumulative effect adjustment to “Retained earnings” as of the beginning of the period of adoption in line with the new transition method allowed under ASU 2018-11. Topic 842 provides a number of optional practical expedients in transition. The Company expects to elect the “package of practical expedients” which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight and will elect the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting for leases. The Company currently expects to elect the short-term lease exemption for all leases that qualify, meaning the Company will not recognize ROU assets or lease liabilities for leases with terms shorter than twelve months. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for a majority of its asset classes, including real estate and equipment. The Company expects the adoption of this guidance to have a material impact on its Consolidated Balance Sheet due to the recognition of lease liabilities and related right-of-use assets in excess of $300,000 to $350,000 . The Company does not expect adoption to materially affect its Consolidated Statement of Operations nor its Consolidated Statement of Cash Flows. The Company is working to complete the design of new controls and processes to meet both the quantitative and disclosure requirements of Topic 842 upon adoption. The Company may identify additional impacts this guidance will have on its consolidated financial statements and disclosures. The Company does not expect material changes in its leasing activities in conjunction with the adoption of Topic 842. In January 2017, the FASB also issued ASU 2017-04, Intangibles - Goodwill and other (Topic 350): Simplifying the test for goodwill impairment. The amendments remove the second step of the current goodwill impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This guidance is effective for impairment tests in fiscal years beginning after December 15, 2019. - Recently Adopted In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . This update changes the measurement principle for inventory for entities using FIFO or average cost from the lower of cost or market to lower of cost and net realizable value. Entities that measure inventory using LIFO or the retail inventory method are not affected. This update will more closely align the accounting for inventory under U.S. GAAP with IFRS. The Company currently accounts for inventory using the FIFO method. The Company adopted the provisions of this update at the beginning of fiscal year 2017. This update did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the provisions of this update at the beginning of fiscal year 2017, with the statement of cash flows classifications applied retrospectively. Accordingly, cash paid for shares redeemed for taxes of $13,039 and $11,589 was reclassed to financing activities from operating activities for the year ended December 31, 2016 and 2015, respectively. Additionally, excess tax benefits are now classified with other tax flows as an operating activity with $4,697 and $5,690 reclassified from financing activities for the year ended December 31, 2016 and 2015, respectively. The Company has also elected to continue to estimate the number of awards that are expected to vest when accounting for forfeitures. On January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers and all the related amendments (“ASC 606”) and applied the provisions of the standard to all contracts using the modified retrospective method. The cumulative effect of adopting the new revenue standard was immaterial and no adjustment has been recorded to the opening balance of retained earnings. Prior year information has not been restated and continues to be reported under the accounting standards in effect for those periods. Substantially all of the Company’s revenue continues to be recognized at a point in time when the product is either shipped or received from the Company’s facilities and control of the product is transferred to the customer. The Company reviewed all of its revenue product categories under ASC 606 and the only changes identified were that an immaterial amount of revenue from intellectual property (“IP”) contracts results in earlier recognition of revenue, new controls and processes designed to meet the requirements of the standard were implemented, and the required new disclosures are presented in Note 3, Revenue from Contracts with Customers. The adoption of ASC 606 did not have a material impact on the amounts reported in the Company’s consolidated financial position, results of operations or cash flows. On January 1, 2018, the Company adopted the new accounting standard, ASU 2016-15, Statement of Cash Flows (Topic 230). The effect of adopting the new standard was not material. On January 1, 2018, the Company adopted the new accounting standard, ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The effect of adopting the new standard was not material. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Computations of Basic and Diluted Earnings (Loss) Per Share | Computations of basic and diluted earnings per share are presented in the following table: 2018 2017 2016 Earnings attributable to Mohawk Industries, Inc. $ 861,704 971,638 930,362 Accretion of redeemable noncontrolling interest (a) (3,892 ) (46 ) (123 ) Net earnings available to common stockholders $ 857,812 971,592 930,239 Weighted-average common shares outstanding-basic and diluted: Weighted-average common shares outstanding - basic 74,413 74,357 74,104 Add weighted-average dilutive potential common shares - options and RSUs to purchase common shares, net 360 482 464 Weighted-average common shares outstanding-diluted 74,773 74,839 74,568 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 11.53 13.07 12.55 Diluted $ 11.47 12.98 12.48 (a) Represents the accretion of the Company’s redeemable noncontrolling interest to redemption value. The holder put this option to the Company on December 20, 2018 for $33,884 |
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) by component, net of tax, for years ended December 31, 2018 , 2017 and 2016 are as follows: Foreign currency translation adjustments Pensions and post-retirement benefits Total Balance as of December 31, 2015 $ (788,652 ) (4,916 ) (793,568 ) Current period other comprehensive income (loss) before reclassifications (36,702 ) (2,757 ) (39,459 ) Amounts reclassified from accumulated other comprehensive loss — — — Balance as of December 31, 2016 (825,354 ) (7,673 ) (833,027 ) Current period other comprehensive income (loss) before reclassifications 277,427 (2,927 ) 274,500 Amounts reclassified from accumulated other comprehensive income — — — Balance as of December 31, 2017 (547,927 ) (10,600 ) (558,527 ) Current period other comprehensive income (loss) before reclassifications (234,175 ) 1,094 (233,081 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Balance as of December 31, 2018 $ (782,102 ) (9,506 ) (791,608 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Segment Revenues Disaggregated by Geography and Product Line | The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories during the years ended December 31, 2018 , 2017 and 2016 , respectively: December 31, 2018 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,251,233 3,851,267 1,289 — 6,103,789 Europe 714,315 6,487 1,861,890 — 2,582,692 Russia 245,867 2 103,351 — 349,220 Other 341,441 171,392 435,100 — 947,933 Total $ 3,552,856 4,029,148 2,401,630 — 9,983,634 Product Categories Ceramic & Stone $ 3,552,856 68,337 — — 3,621,193 Carpet & Resilient — 3,258,029 645,669 — 3,903,698 Laminate & Wood — 702,782 850,250 — 1,553,032 Other (1) — — 905,711 — 905,711 Total $ 3,552,856 4,029,148 2,401,630 — 9,983,634 December 31, 2017 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,223,998 3,809,211 2,111 (120 ) 6,035,200 Europe 645,341 19,100 1,698,628 — 2,363,069 Russia 235,043 (1 ) 91,033 — 326,075 Other 300,718 182,548 283,680 — 766,946 Total $ 3,405,100 4,010,858 2,075,452 (120 ) 9,491,290 Product Categories Ceramic & Stone $ 3,405,100 80,145 — — 3,485,245 Carpet & Resilient — 3,219,971 435,931 — 3,655,902 Laminate & Wood — 710,742 808,675 — 1,519,417 Other (1) — — 830,846 (120 ) 830,726 Total $ 3,405,100 4,010,858 2,075,452 (120 ) 9,491,290 December 31, 2016 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,168,693 3,670,153 3,319 — 5,842,165 Europe 533,339 15,628 1,565,005 — 2,113,972 Russia 180,420 12 75,304 — 255,736 Other 292,254 179,953 275,007 — 747,214 Total $ 3,174,706 3,865,746 1,918,635 — 8,959,087 Product Categories Ceramic & Stone $ 3,174,706 83,431 — — 3,258,137 Carpet & Resilient — 3,042,729 370,117 — 3,412,846 Laminate & Wood — 739,586 754,409 — 1,493,995 Other (1) — — 794,109 — 794,109 Total $ 3,174,706 3,865,746 1,918,635 — 8,959,087 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Restructuring, Acquisition, a_2
Restructuring, Acquisition, and Integration-Related Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 year ended December 31, 2018 , 2017 and 2016 , respectively (in thousands): 2018 2017 2016 Cost of sales Restructuring costs $ 43,733 33,109 33,582 Acquisition integration-related costs 3,330 2,916 4,722 Restructuring and integration-related costs $ 47,063 36,025 38,304 Selling, general and administrative expenses Restructuring costs $ 15,259 3,976 4,881 Acquisition transaction-related costs 4,977 2,751 — Acquisition integration-related costs 11,351 6,188 7,438 Restructuring, acquisition and integration-related costs $ 31,587 12,915 12,319 |
Schedule of Restructuring and Related Costs | The restructuring activity for the years ended December 31, 2018 and 2017 , respectively is as follows (in thousands): Lease impairments Asset write-downs Severance Other restructuring costs Total Balance as of December 31, 2016 $ — — 5,183 6,243 11,426 Provision - Global Ceramic segment 492 — 1,082 (32 ) 1,542 Provision - Flooring NA segment 316 6,849 2,500 22,131 31,796 Provision - Flooring ROW segment — 650 1,518 1,465 3,633 Provision - Corporate — — — 114 114 Cash payments (449 ) (190 ) (9,469 ) (29,725 ) (39,833 ) Non-cash items — (7,309 ) (230 ) (44 ) (7,583 ) Balance as of December 31, 2017 359 — 584 152 1,095 Provision - Global Ceramic segment 528 1,131 7,113 337 9,109 Provision - Flooring NA segment 236 2,940 4,985 33,807 41,968 Provision - Flooring ROW segment — — 4,741 (104 ) 4,637 Provision - Corporate — — 3,278 — 3,278 Cash payments (726 ) — (12,605 ) (30,385 ) (43,716 ) Non-cash items — (4,071 ) (230 ) (3,557 ) (7,858 ) Balance as of December 31, 2018 $ 397 — 7,866 250 8,513 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Net Components Of Receivables | December 31, December 31, Customers, trade $ 1,562,284 1,538,348 Income tax receivable 17,217 9,835 Other 101,376 96,079 1,680,877 1,644,262 Less allowance for discounts, returns, claims and doubtful accounts 74,718 86,103 Receivables, net $ 1,606,159 1,558,159 |
Allowances For Discounts, Returns, Claims And Doubtful Accounts | The following table reflects the activity of allowances for discounts, returns, claims and doubtful accounts for the years ended December 31: Balance at beginning of year Acquisitions Additions charged to net sales or costs and expenses Deductions(1) Balance at end of year 2016 $ 78,947 — 296,419 297,031 78,335 2017 78,335 6,510 308,507 307,249 86,103 2018 86,103 4,240 317,716 333,341 74,718 (1) Represents charge-offs, net of recoveries. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Net components of inventories | The components of inventories are as follows: December 31, December 31, Finished goods $ 1,582,112 1,326,038 Work in process 165,616 159,921 Raw materials 539,887 462,704 Total inventories $ 2,287,615 1,948,663 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes the components of intangible assets: Goodwill: Global Ceramic Flooring NA Flooring ROW Total Balances as of December 31, 2016 Goodwill $ 1,482,226 869,764 1,249,861 3,601,851 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) 950,296 526,710 797,420 2,274,426 Goodwill recognized during the year 60,493 — — 60,493 Currency translation during the year 25,153 — 111,387 136,540 Balances as of December 31, 2017 Goodwill 1,567,872 869,764 1,361,248 3,798,884 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) 1,035,942 526,710 908,807 2,471,459 Goodwill recognized during the year 19,821 4,434 95,483 119,738 Currency translation during the year (22,706 ) — (47,525 ) (70,231 ) Balances as of December 31, 2018 Goodwill 1,564,987 874,198 1,409,206 3,848,391 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) $ 1,033,057 531,144 956,765 2,520,966 |
Schedule of indefinite life assets not subject to amortization | Tradenames Indefinite life assets not subject to amortization: Balance as of December 31, 2016 $ 580,147 Intangible assets acquired during the year 16,196 Intangible assets impaired during the year — Currency translation during the year 47,865 Balance as of December 31, 2017 644,208 Intangible assets acquired during the year 91,782 Intangible assets impaired during the year — Currency translation during the year (28,610 ) Balance as of December 31, 2018 $ 707,380 |
Schedule of intangible assets subject to amortization | Customer relationships Patents Other Total Intangible assets subject to amortization: Balances as of December 31, 2016 $ 235,704 13,424 5,331 254,459 Intangible assets acquired during the year 3,175 — — 3,175 Amortization during the year (26,602 ) (7,543 ) (134 ) (34,279 ) Currency translation during the year 22,558 1,180 466 24,204 Balances as of December 31, 2017 234,835 7,061 5,663 247,559 Intangible assets acquired during the year 47,361 — 7 47,368 Amortization during the year (28,389 ) (2,272 ) (84 ) (30,745 ) Currency translation during the year (9,179 ) (294 ) (279 ) (9,752 ) Balances as of December 31, 2018 $ 244,628 4,495 5,307 254,430 December 31, 2018 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 625,263 47,361 (21,610 ) 406,386 244,628 Patents 266,969 — (12,486 ) 249,988 4,495 Other 6,825 7 (298 ) 1,227 5,307 Total $ 899,057 47,368 (34,394 ) 657,601 254,430 December 31, 2017 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 569,980 3,175 52,108 390,428 234,835 Patents 234,022 — 32,947 259,908 7,061 Other 6,330 — 495 1,162 5,663 Total $ 810,332 3,175 85,550 651,498 247,559 |
Schedule of intangible assets amortization expense | Years Ended December 31, 2018 2017 2016 Amortization expense $ 30,745 34,279 39,545 |
Schedule of expected amortization expense | Estimated amortization expense for the years ending December 31 are as follows: 2019 $ 28,213 2020 28,213 2021 28,021 2022 26,190 2023 24,558 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Following is a summary of property, plant and equipment: December 31, December 31, Land $ 407,780 385,027 Buildings and improvements 1,584,240 1,413,877 Machinery and equipment 5,334,060 4,603,911 Furniture and fixtures 230,644 211,730 Leasehold improvements 94,683 78,803 Construction in progress 575,667 792,936 8,227,074 7,486,284 Less accumulated depreciation and amortization 3,527,172 3,215,494 Net property, plant and equipment $ 4,699,902 4,270,790 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of carrying values and estimated fair values of debt instruments | The fair values and carrying values of the Company’s debt instruments are detailed as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value 3.85% senior notes, payable February 1, 2023; interest payable semiannually $ 599,904 600,000 622,752 600,000 Floating Rate Notes, payable May 18, 2020; interest payable quarterly 343,004 343,289 — — 2.00% senior notes, payable January 14, 2022; interest payable annually 587,487 572,148 634,193 600,096 Floating Rate Notes, payable September 11, 2019, interest payable quarterly 343,560 343,289 360,807 360,058 U.S. commercial paper 632,668 632,668 228,500 228,500 European commercial paper 707,175 707,175 912,146 912,146 Five-year senior secured credit facility, due March 26, 2022 57,896 57,896 62,104 62,104 Capital leases and other 6,664 6,664 6,934 6,934 Unamortized debt issuance costs (5,155 ) (5,155 ) (6,260 ) (6,260 ) Total debt 3,273,203 3,257,974 2,821,176 2,763,578 Less current portion of long term debt and commercial paper 1,742,373 1,742,373 1,203,683 1,203,683 Long-term debt, less current portion $ 1,530,830 1,515,601 1,617,493 1,559,895 |
Schedule of maturities of long-term debt | The aggregate maturities of total debt as of December 31, 2018 are as follows: 2019 $ 1,742,373 2020 344,323 2021 617 2022 572,568 2023 600,420 Thereafter 2,828 $ 3,263,129 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of accounts payable and accrued expenses | Accounts payable and accrued expenses are as follows: December 31, 2018 December 31, 2017 Outstanding checks in excess of cash $ 14,624 8,879 Accounts payable, trade 811,879 810,034 Accrued expenses 430,431 363,919 Product warranties 47,511 39,035 Accrued interest 21,908 22,363 Accrued compensation and benefits 197,513 207,442 Total accounts payable and accrued expenses $ 1,523,866 1,451,672 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of stock option plans activity | Additional information relating to the Company’s stock option plans follows: 2018 2017 2016 Options outstanding at beginning of year 63 91 169 Options exercised — (28 ) (78 ) Options forfeited and expired — — — Options outstanding at end of year 63 63 91 Options exercisable at end of year 63 63 90 Option prices per share: Options exercised during the year $ — 57.34-66.14 28.37-93.65 Options forfeited and expired during the year $ — — — Options outstanding at end of year 57.34-66.14 57.34-66.14 57.34-66.14 Options exercisable at end of year 57.34-66.14 57.34-66.14 57.34-66.14 |
Summary of the stock options under the 2002, 2007 and 2012 plans | A summary of the Company’s options under it’s long-term incentive plans as of December 31, 2018 , and changes during the year then ended is presented as follows: Shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Options outstanding, December 31, 2017 63 $ 62.86 Granted — — Exercised — — Forfeited and expired — — Options outstanding, December 31, 2018 63 $ 62.86 2.8 $ 3,415 Vested and expected to vest as of December 31, 2018 63 $ 62.86 2.8 $ 3,415 Exercisable as of December 31, 2018 63 $ 62.86 2.8 $ 3,415 |
Summary of stock options outstanding | The following table summarizes information about the Company’s stock options outstanding as of December 31, 2018 : Outstanding Exercisable Exercise price range Number of shares Average life Average price Number of shares Average price $57.34-$57.34 23 2.15 57.34 23 57.34 $66.14-$66.14 40 3.14 66.14 40 66.14 Total 63 2.77 $ 62.86 63 $ 62.86 |
Summary of RSUs under the 2007 and 2012 plans | A summary of the Company’s RSUs under the Company’s long-term incentive plans as of December 31, 2018 , and changes during the year then ended is presented as follows: Shares Weighted average grant date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value Restricted Stock Units outstanding, December 31, 2017 555 $ 147.28 Granted 136 231.25 Released (235 ) 156.56 Forfeited (10 ) 211.16 Restricted Stock Units outstanding, December 31, 2018 446 $ 166.56 1.1 $ 51,501 Expected to vest as of December 31, 2018 440 1.1 $ 50,746 |
Additional information for RSUs under the 2007 and 2012 plans | Additional information relating to the Company’s RSUs under the Company’s long-term incentive plans are as follows: 2018 2017 2016 Restricted Stock Units outstanding, January 1 555 695 750 Granted 136 154 187 Released (235 ) (284 ) (226 ) Forfeited (10 ) (10 ) (16 ) Restricted Stock Units outstanding, December 31 446 555 695 Expected to vest as of December 31 440 546 682 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of other expense (income) | Following is a summary of other expense (income): 2018 2017 2016 Foreign currency losses $ 9,613 8,395 1,099 Release of indemnification asset 4,606 4,459 5,371 All other, net (6,921 ) (7,649 ) (8,199 ) Total other expense (income) $ 7,298 5,205 (1,729 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Earnings (loss) from continuing operations before income taxes | Following is a summary of earnings before income taxes for United States and foreign operations: 2018 2017 2016 United States $ 387,564 754,562 627,567 Foreign 661,637 563,295 613,558 Earnings before income taxes $ 1,049,201 1,317,857 1,241,125 |
Income tax expense (benefit) | Income tax expense (benefit) for the years ended December 31, 2018 , 2017 and 2016 consists of the following: 2018 2017 2016 Current income taxes: U.S. federal $ 22,700 327,697 247,917 State and local 14,521 17,811 31,939 Foreign 58,669 73,248 61,712 Total current 95,890 418,756 341,568 Deferred income taxes: U.S. federal 54,983 (17,419 ) (16,167 ) State and local 19,076 (3,046 ) (22,115 ) Foreign 14,397 (55,126 ) 4,273 Total deferred 88,456 (75,591 ) (34,009 ) Total $ 184,346 343,165 307,559 |
Reconciliation of income tax expense (benefit) | Income tax expense (benefit) attributable to earnings before income taxes differs from the amounts computed by applying the U.S. statutory federal income tax rate to earnings before income taxes as follows: 2018 2017 2016 Income taxes at statutory rate $ 220,332 461,250 434,394 State and local income taxes, net of federal income tax benefit 22,315 10,133 6,298 Foreign income taxes (a) (39,915 ) (113,520 ) (111,217 ) Change in valuation allowance 2,472 10,008 (21,106 ) Manufacturing deduction — (11,911 ) (15,186 ) 2017 revaluation of deferred tax assets and liabilities (b) — (150,546 ) — Transition Tax 28,201 105,165 — Transition tax planning initiatives (18,706 ) 14,825 3,881 Tax contingencies and audit settlements, net (31,874 ) 23,097 2,496 Other, net 1,521 (5,336 ) 7,999 $ 184,346 343,165 307,559 (a) Foreign income taxes includes statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. The significant decrease in foreign income taxes for 2018 is primarily due to the impact of the U.S. statutory rate reduction from 35% to 21% as a result of the Tax Cuts and Jobs Act (“TCJA”) discussed below. (b) 2017 revaluation of deferred tax assets and liabilities includes $106,107 related to the TCJA and $44,439 related to Belgium tax reform. |
Deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 are presented below: 2018 2017 Deferred tax assets: Accounts receivable $ 8,312 18,481 Inventories 47,212 41,169 Employee benefits 37,335 42,191 Accrued expenses and other 71,621 52,635 Deductible state tax and interest benefit 2,904 2,087 Intangibles 16,134 22,119 Federal, foreign and state net operating losses and credits 575,625 530,978 Gross deferred tax assets 759,143 709,660 Valuation allowance (347,786 ) (362,963 ) Net deferred tax assets 411,357 346,697 Deferred tax liabilities: Inventories (18,332 ) (14,423 ) Plant and equipment (477,734 ) (397,668 ) Intangibles (181,436 ) (170,817 ) Other liabilities (96,134 ) (31,702 ) Gross deferred tax liabilities (773,636 ) (614,610 ) Net deferred tax liability $ (362,279 ) (267,913 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 Balance as of January 1 $ 65,631 46,434 Additions based on tax positions related to the current year (a) 1,304,447 28,663 Additions for tax positions of acquired companies 1,413 1,776 Additions for tax positions of prior years 5,098 876 Transition tax planning initiatives (27,470 ) — Reductions resulting from the lapse of the statute of limitations (8,110 ) (14,502 ) Settlements with taxing authorities (9,773 ) (655 ) Effects of foreign currency translation (523 ) 3,039 Balance as of December 31 $ 1,330,713 65,631 (a) Includes tax effected loss of $1,298,737 on Luxembourg hybrid instruments redemptions. This $1,298,737 of unrecognized benefit is presented as a reduction to the related deferred tax asset in the balance sheet. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for capital and operating leases | Future minimum lease payments under non-cancelable capital and operating leases (with initial or remaining lease terms in excess of one year) as of December 31 are as follows: Capital Operating Total Future Payments 2019 $ 1,494 116,110 117,604 2020 1,195 93,724 94,919 2021 766 66,129 66,895 2022 562 42,247 42,809 2023 555 22,207 22,762 Thereafter 3,215 26,097 29,312 Total payments 7,787 366,514 374,301 Less amount representing interest 1,123 Present value of capitalized lease payments $ 6,664 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information are as follows: 2018 2017 2016 Net cash paid (received) during the years for: Interest $ 46,186 33,952 57,269 Income taxes $ 196,193 373,900 276,789 Supplemental schedule of non-cash investing and financing activities: Additions to property, plant and equipment $ (4,672 ) 30,643 — Fair value of net assets acquired in acquisition $ 831,760 369,956 — Liabilities assumed in acquisition (257,515 ) (119,157 ) — $ 574,245 250,799 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of segment information | Segment information is as follows: 2018 2017 2016 Assets: Global Ceramic $ 5,194,030 4,838,310 4,024,859 Flooring NA 3,938,639 3,702,137 3,410,856 Flooring ROW 3,666,617 3,245,424 2,689,592 Corporate and intersegment eliminations 299,837 308,982 105,289 Total $ 13,099,123 12,094,853 10,230,596 Geographic net sales: United States $ 6,103,789 6,035,200 5,842,165 Europe 2,582,692 2,363,069 2,113,972 Russia 349,220 326,075 255,736 Other 947,933 766,946 747,214 Total $ 9,983,634 9,491,290 8,959,087 Long-lived assets: (1) United States $ 3,485,046 3,339,363 3,092,902 Belgium 1,663,470 1,705,947 1,371,397 Other 2,072,353 1,696,939 1,180,475 Total $ 7,220,869 6,742,249 5,644,774 Net sales by product categories: Ceramic & Stone $ 3,621,193 3,485,245 3,258,137 Carpet & Resilient 3,903,698 3,655,902 3,412,846 Laminate & Wood 1,553,032 1,519,417 1,493,995 Other (2) 905,711 830,726 794,109 Total $ 9,983,634 9,491,290 8,959,087 Net sales: Global Ceramic $ 3,552,856 3,405,100 3,174,706 Flooring NA 4,029,148 4,010,858 3,865,746 Flooring ROW 2,401,630 2,075,452 1,918,635 Intersegment sales — (120 ) — Total $ 9,983,634 9,491,290 8,959,087 (1) Long-lived assets are composed of property, plant and equipment - net, and goodwill. (2) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of supplemental quarterly financial data | The supplemental quarterly financial data are as follows: Quarters Ended March 31, June 30, September 29, December 31, Net sales $ 2,412,202 2,577,014 2,545,800 2,448,618 Gross profit 704,692 766,555 1,825,367 646,390 Net earnings 208,766 196,586 227,013 229,339 Basic earnings per share 2.80 2.64 3.03 3.07 Diluted earnings per share 2.78 2.62 3.02 3.05 Quarters Ended April 1, July 1, September 30, December 31, Net sales $ 2,220,645 2,453,038 2,448,510 2,369,097 Gross profit 680,353 779,136 783,301 753,624 Net earnings 200,554 260,681 270,025 240,378 Basic earnings per share 2.70 3.51 3.63 3.23 Diluted earnings per share 2.68 3.48 3.61 3.21 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 01, 2019USD ($) | Jun. 09, 2015EUR (€) | |
Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 84,884 | $ 119,050 | $ 84,884 | $ 121,665 | $ 81,692 | ||
Advertising and promotion expenses | 116,854 | 119,560 | 122,148 | ||||
Co-op advertising expenses | $ 13,332 | 10,891 | 11,132 | ||||
Minimum eligible service period (days) | 90 days | ||||||
Employer matching contribution, percent of match | 50.00% | ||||||
Maximum percentage of employee salary company matches at disclosed ratio | 6.00% | ||||||
Employee contributions | $ 55,796 | 53,544 | 50,542 | ||||
Employer contributions to employee benefit plan | 22,689 | 22,039 | 21,002 | ||||
Projected benefit obligation | 65,439 | 63,569 | 65,439 | ||||
Projected plan assets | 53,404 | 54,315 | 53,404 | ||||
Funded status of plan | 12,035 | 9,254 | 12,035 | ||||
Purchases of short-term investments | 664,133 | 83,904 | 0 | ||||
Net cash provided by operating activities | 1,181,344 | 1,193,595 | 1,345,289 | ||||
Accumulated other comprehensive income (loss) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Funded status of plan | 6,187 | 5,092 | 6,187 | ||||
Other noncurrent liabilities | |||||||
Significant Accounting Policies [Line Items] | |||||||
Funded status of plan | 5,848 | 4,162 | 5,848 | ||||
2.00% senior notes, payable January 14, 2022; interest payable annually | |||||||
Significant Accounting Policies [Line Items] | |||||||
Aggregate principal amount of debts | € | € 500,000,000 | ||||||
Interest rate percentage | 2.00% | ||||||
Change in U.S. dollar value of euro denominated debt | (27,948) | 74,112 | (20,644) | ||||
Change in U.S. dollar value of euro denominated debt, net of tax | $ (20,376) | 46,320 | (12,902) | ||||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Finite intangible assets useful life, minimum (years) | 7 years | ||||||
Minimum | Buildings and improvements | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 25 years | ||||||
Minimum | Machinery and equipment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 5 years | ||||||
Minimum | Furniture and fixtures | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 3 years | ||||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Finite intangible assets useful life, minimum (years) | 16 years | ||||||
Maximum | Buildings and improvements | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 40 years | ||||||
Maximum | Machinery and equipment | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 15 years | ||||||
Maximum | Furniture and fixtures | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 7 years | ||||||
Non-US | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | 70,520 | $ 88,100 | 70,520 | ||||
Accounting Standards Update 2016-09, Statutory Tax Withholding Component | |||||||
Significant Accounting Policies [Line Items] | |||||||
Net cash provided by operating activities | 13,039 | 11,589 | |||||
Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||||||
Significant Accounting Policies [Line Items] | |||||||
Net cash provided by operating activities | $ 4,697 | $ 5,690 | |||||
MAS | |||||||
Significant Accounting Policies [Line Items] | |||||||
Purchases of short-term investments | $ 53,000 | $ 83,904 | |||||
MAS | Formation Of Wholly Owned Captive Insurance Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Initial cash contribution | 16,876 | ||||||
Contribution for net present value of insurance premiums | $ 67,391 | ||||||
Forecast | Accounting Standards Update 2016-02 | Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Lease liability | $ 300,000 | ||||||
Right-of-use asset | 300,000 | ||||||
Forecast | Accounting Standards Update 2016-02 | Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Lease liability | 350,000 | ||||||
Right-of-use asset | $ 350,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Computations Of Basic And Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 20, 2018 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||||||||||
Net earnings attributable to Mohawk Industries, Inc. | $ 229,339 | $ 227,013 | $ 196,586 | $ 208,766 | $ 240,378 | $ 270,025 | $ 260,681 | $ 200,554 | $ 861,704 | $ 971,638 | $ 930,362 | |
Accretion of redeemable noncontrolling interest | (3,892) | (46) | (123) | |||||||||
Net earnings available to common stockholders | $ 857,812 | $ 971,592 | $ 930,239 | |||||||||
Weighted-average common shares outstanding-basic (in shares) | 74,413 | 74,357 | 74,104 | |||||||||
Add weighted-average dilutive potential common shares - options and RSU’s to purchase common shares, net (in shares) | 360 | 482 | 464 | |||||||||
Weighted-average common shares outstanding-diluted (in shares) | 74,773 | 74,839 | 74,568 | |||||||||
Basic earnings per share (usd per share) | $ 3.07 | $ 3.03 | $ 2.64 | $ 2.80 | $ 3.23 | $ 3.63 | $ 3.51 | $ 2.70 | $ 11.53 | $ 13.07 | $ 12.55 | |
Diluted earnings per share (usd per share) | $ 3.05 | $ 3.02 | $ 2.62 | $ 2.78 | $ 3.21 | $ 3.61 | $ 3.48 | $ 2.68 | $ 11.47 | $ 12.98 | $ 12.48 | |
Put option of redeemable noncontrolling interest | $ 33,884 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Change in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 7,067,009 | $ 5,783,487 | $ 4,860,863 |
Ending balance | 7,440,059 | 7,067,009 | 5,783,487 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (547,927) | (825,354) | (788,652) |
Current period other comprehensive income (loss) before reclassifications | (234,175) | 277,427 | (36,702) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | (782,102) | (547,927) | (825,354) |
Pensions and post-retirement benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (10,600) | (7,673) | (4,916) |
Current period other comprehensive income (loss) before reclassifications | 1,094 | (2,927) | (2,757) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | (9,506) | (10,600) | (7,673) |
AOCI including portion attributable to noncontrolling interest | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (558,527) | (833,027) | (793,568) |
Current period other comprehensive income (loss) before reclassifications | (233,081) | 274,500 | (39,459) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | $ (791,608) | $ (558,527) | $ (833,027) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Nov. 16, 2018USD ($) | Jul. 02, 2018USD ($) | Apr. 04, 2017USD ($) | Mar. 31, 2018USD ($)business | Jul. 01, 2017USD ($)business | Apr. 01, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||
Preliminary goodwill allocation | $ 2,520,966 | $ 2,471,459 | $ 2,274,426 | ||||||
Eliane S/A Revestimentos Ceramicos | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired indebtedness | $ 99,037 | ||||||||
Purchase agreement price | 148,741 | ||||||||
Cash held in escrow | 5,285 | ||||||||
Preliminary goodwill allocation | 19,821 | ||||||||
Intangible assets subject to amortization | 3,726 | ||||||||
Godfrey Hirst Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 400,894 | ||||||||
Preliminary goodwill allocation | 87,043 | ||||||||
Intangible assets subject to amortization | 43,635 | ||||||||
Emilceramica S.r.l | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 186,099 | ||||||||
Preliminary goodwill allocation | 59,491 | ||||||||
Intangible assets subject to amortization | 2,348 | ||||||||
Tradenames | Eliane S/A Revestimentos Ceramicos | |||||||||
Business Acquisition [Line Items] | |||||||||
Indefinite-lived tradename intangible asset | $ 33,111 | ||||||||
Tradenames | Godfrey Hirst Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Indefinite-lived tradename intangible asset | $ 58,671 | ||||||||
Tradenames | Emilceramica S.r.l | |||||||||
Business Acquisition [Line Items] | |||||||||
Indefinite-lived tradename intangible asset | $ 16,196 | ||||||||
Flooring ROW | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 24,610 | ||||||||
Preliminary goodwill allocation | 12,874 | ||||||||
Intangible assets subject to amortization | $ 7 | ||||||||
Number of acquisitions | business | 3 | ||||||||
Flooring ROW | Flooring ROW Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 1,407 | ||||||||
Intangible assets subject to amortization | $ 827 | ||||||||
Global Ceramic | Global Ceramic Acquisitions | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 37,250 | ||||||||
Preliminary goodwill allocation | $ 1,002 | ||||||||
Number of acquisitions | business | 2 | ||||||||
Flooring NA | Flooring NA Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 26,623 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liability | $ 34,486 | $ 29,124 |
Capitalized contract cost | 57,840 | $ 43,259 |
Amortization of capitalized contract costs | $ 55,588 | |
Capitalized contract costs, amortization period | 1 year |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Summary of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 2,448,618 | $ 2,545,800 | $ 2,577,014 | $ 2,412,202 | $ 2,369,097 | $ 2,448,510 | $ 2,453,038 | $ 2,220,645 | $ 9,983,634 | $ 9,491,290 | $ 8,959,087 |
Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,621,193 | 3,485,245 | 3,258,137 | ||||||||
Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,903,698 | 3,655,902 | 3,412,846 | ||||||||
Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,553,032 | 1,519,417 | 1,493,995 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 905,711 | 830,726 | 794,109 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 6,103,789 | 6,035,200 | 5,842,165 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,582,692 | 2,363,069 | 2,113,972 | ||||||||
Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 349,220 | 326,075 | 255,736 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 947,933 | 766,946 | 747,214 | ||||||||
Operating segments | Global Ceramic segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,552,856 | 3,405,100 | 3,174,706 | ||||||||
Operating segments | Global Ceramic segment | Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,552,856 | 3,405,100 | 3,174,706 | ||||||||
Operating segments | Global Ceramic segment | Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Global Ceramic segment | Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Global Ceramic segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Global Ceramic segment | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,251,233 | 2,223,998 | 2,168,693 | ||||||||
Operating segments | Global Ceramic segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 714,315 | 645,341 | 533,339 | ||||||||
Operating segments | Global Ceramic segment | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 245,867 | 235,043 | 180,420 | ||||||||
Operating segments | Global Ceramic segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 341,441 | 300,718 | 292,254 | ||||||||
Operating segments | Flooring NA segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 4,029,148 | 4,010,858 | 3,865,746 | ||||||||
Operating segments | Flooring NA segment | Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 68,337 | 80,145 | 83,431 | ||||||||
Operating segments | Flooring NA segment | Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,258,029 | 3,219,971 | 3,042,729 | ||||||||
Operating segments | Flooring NA segment | Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 702,782 | 710,742 | 739,586 | ||||||||
Operating segments | Flooring NA segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Flooring NA segment | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,851,267 | 3,809,211 | 3,670,153 | ||||||||
Operating segments | Flooring NA segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 6,487 | 19,100 | 15,628 | ||||||||
Operating segments | Flooring NA segment | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2 | (1) | 12 | ||||||||
Operating segments | Flooring NA segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 171,392 | 182,548 | 179,953 | ||||||||
Operating segments | Flooring ROW segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,401,630 | 2,075,452 | 1,918,635 | ||||||||
Operating segments | Flooring ROW segment | Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Flooring ROW segment | Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 645,669 | 435,931 | 370,117 | ||||||||
Operating segments | Flooring ROW segment | Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 850,250 | 808,675 | 754,409 | ||||||||
Operating segments | Flooring ROW segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 905,711 | 830,846 | 794,109 | ||||||||
Operating segments | Flooring ROW segment | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,289 | 2,111 | 3,319 | ||||||||
Operating segments | Flooring ROW segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,861,890 | 1,698,628 | 1,565,005 | ||||||||
Operating segments | Flooring ROW segment | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 103,351 | 91,033 | 75,304 | ||||||||
Operating segments | Flooring ROW segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 435,100 | 283,680 | 275,007 | ||||||||
Intersegment sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | (120) | 0 | ||||||||
Intersegment sales | Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | (120) | 0 | ||||||||
Intersegment sales | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | (120) | 0 | ||||||||
Intersegment sales | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 0 | $ 0 | $ 0 |
Restructuring, Acquisition, a_3
Restructuring, Acquisition, and Integration-Related Costs (Related Costs by Type of Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 58,991 | $ 37,085 | $ 38,463 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 43,733 | 33,109 | 33,582 |
Acquisition integration-related costs | 3,330 | 2,916 | 4,722 |
Restructuring, acquisition and integration-related costs | 47,063 | 36,025 | 38,304 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 15,259 | 3,976 | 4,881 |
Acquisition transaction-related costs | 4,977 | 2,751 | 0 |
Acquisition integration-related costs | 11,351 | 6,188 | 7,438 |
Restructuring, acquisition and integration-related costs | $ 31,587 | $ 12,915 | $ 12,319 |
Restructuring, Acquisition, a_4
Restructuring, Acquisition, and Integration-Related Costs (Related Costs Restructuring Reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 1,095 | $ 11,426 | |
Provision | 58,991 | 37,085 | $ 38,463 |
Cash payments | (43,716) | (39,833) | |
Non-cash items | (7,858) | (7,583) | |
Ending balance | 8,513 | 1,095 | 11,426 |
Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 359 | 0 | |
Cash payments | (726) | (449) | |
Non-cash items | 0 | 0 | |
Ending balance | 397 | 359 | 0 |
Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Cash payments | 0 | (190) | |
Non-cash items | (4,071) | (7,309) | |
Ending balance | 0 | 0 | 0 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 584 | 5,183 | |
Cash payments | (12,605) | (9,469) | |
Non-cash items | (230) | (230) | |
Ending balance | 7,866 | 584 | 5,183 |
Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 152 | 6,243 | |
Cash payments | (30,385) | (29,725) | |
Non-cash items | (3,557) | (44) | |
Ending balance | 250 | 152 | $ 6,243 |
Corporate | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 3,278 | 114 | |
Corporate | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Corporate | Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Corporate | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 3,278 | 0 | |
Corporate | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 114 | |
Operating segments | Global Ceramic | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 9,109 | 1,542 | |
Operating segments | Global Ceramic | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 528 | 492 | |
Operating segments | Global Ceramic | Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1,131 | 0 | |
Operating segments | Global Ceramic | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 7,113 | 1,082 | |
Operating segments | Global Ceramic | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 337 | (32) | |
Operating segments | Flooring NA | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 41,968 | 31,796 | |
Operating segments | Flooring NA | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 236 | 316 | |
Operating segments | Flooring NA | Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 2,940 | 6,849 | |
Operating segments | Flooring NA | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 4,985 | 2,500 | |
Operating segments | Flooring NA | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 33,807 | 22,131 | |
Operating segments | Flooring ROW | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 4,637 | 3,633 | |
Operating segments | Flooring ROW | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Operating segments | Flooring ROW | Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 650 | |
Operating segments | Flooring ROW | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 4,741 | 1,518 | |
Operating segments | Flooring ROW | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | $ (104) | $ 1,465 |
Receivables (Net Components Of
Receivables (Net Components Of Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Customers, trade | $ 1,562,284 | $ 1,538,348 |
Income tax receivable | 17,217 | 9,835 |
Other | 101,376 | 96,079 |
Receivables, gross | 1,680,877 | 1,644,262 |
Less allowance for discounts, returns, claims and doubtful accounts | 74,718 | 86,103 |
Receivables, net | $ 1,606,159 | $ 1,558,159 |
Receivables (Allowances For Dis
Receivables (Allowances For Discounts, Returns, Claims And Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 86,103 | $ 78,335 | $ 78,947 |
Acquisitions | 4,240 | 6,510 | 0 |
Additions charged to net sales or costs and expenses | 317,716 | 308,507 | 296,419 |
Deductions | 333,341 | 307,249 | 297,031 |
Balance at end of year | $ 74,718 | $ 86,103 | $ 78,335 |
Inventories (Net components of
Inventories (Net components of inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,582,112 | $ 1,326,038 |
Work in process | 165,616 | 159,921 |
Raw materials | 539,887 | 462,704 |
Total inventories | $ 2,287,615 | $ 1,948,663 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of goodwill) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | |
Goodwill [Line Items] | ||||
Goodwill, impairment loss | $ 0 | |||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 3,798,884,000 | $ 3,601,851,000 | ||
Accumulated impairments losses, beginning balance | (1,327,425,000) | (1,327,425,000) | ||
Goodwill | 2,520,966,000 | 2,471,459,000 | $ 2,274,426,000 | |
Goodwill recognized during the year | 119,738,000 | 60,493,000 | ||
Currency translation during the year | (70,231,000) | 136,540,000 | ||
Goodwill, ending balance | 3,848,391,000 | 3,798,884,000 | 3,601,851,000 | |
Accumulated impairments losses, ending balance | (1,327,425,000) | (1,327,425,000) | (1,327,425,000) | |
Goodwill, net, ending balance | 2,520,966,000 | 2,471,459,000 | 2,274,426,000 | |
Global Ceramic | ||||
Goodwill [Roll Forward] | ||||
Goodwill recognized during the year | 19,821,000 | |||
Currency translation during the year | (22,706,000) | |||
Flooring NA | ||||
Goodwill [Roll Forward] | ||||
Goodwill recognized during the year | 4,434,000 | |||
Currency translation during the year | 0 | |||
Flooring ROW | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 12,874,000 | |||
Goodwill recognized during the year | 95,483,000 | |||
Currency translation during the year | (47,525,000) | |||
Goodwill, net, ending balance | $ 12,874,000 | |||
Operating segments | Global Ceramic | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 1,567,872,000 | 1,482,226,000 | ||
Accumulated impairments losses, beginning balance | (531,930,000) | (531,930,000) | ||
Goodwill | 1,033,057,000 | 1,035,942,000 | 950,296,000 | |
Goodwill recognized during the year | 60,493,000 | |||
Currency translation during the year | 25,153,000 | |||
Goodwill, ending balance | 1,564,987,000 | 1,567,872,000 | 1,482,226,000 | |
Accumulated impairments losses, ending balance | (531,930,000) | (531,930,000) | (531,930,000) | |
Goodwill, net, ending balance | 1,033,057,000 | 1,035,942,000 | 950,296,000 | |
Operating segments | Flooring NA | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 869,764,000 | 869,764,000 | ||
Accumulated impairments losses, beginning balance | (343,054,000) | (343,054,000) | ||
Goodwill | 531,144,000 | 526,710,000 | 526,710,000 | |
Goodwill recognized during the year | 0 | |||
Currency translation during the year | 0 | |||
Goodwill, ending balance | 874,198,000 | 869,764,000 | 869,764,000 | |
Accumulated impairments losses, ending balance | (343,054,000) | (343,054,000) | (343,054,000) | |
Goodwill, net, ending balance | 531,144,000 | 526,710,000 | 526,710,000 | |
Operating segments | Flooring ROW | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 1,361,248,000 | 1,249,861,000 | ||
Accumulated impairments losses, beginning balance | (452,441,000) | (452,441,000) | ||
Goodwill | 956,765,000 | 908,807,000 | 797,420,000 | |
Goodwill recognized during the year | 0 | |||
Currency translation during the year | 111,387,000 | |||
Goodwill, ending balance | 1,409,206,000 | 1,361,248,000 | 1,249,861,000 | |
Accumulated impairments losses, ending balance | (452,441,000) | (452,441,000) | (452,441,000) | |
Goodwill, net, ending balance | $ 956,765,000 | $ 908,807,000 | $ 797,420,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of indefinite life assets not subject to amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset impairment | $ 0 | $ 0 | $ 47,905 | |
Tradenames | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Indefinite life assets not subject to amortization, beginning balance | 644,208 | 580,147 | ||
Intangible assets acquired during the year | 91,782 | 16,196 | ||
Intangible asset impairment | 0 | 0 | ||
Currency translation during the year | (28,610) | 47,865 | ||
Indefinite life assets not subject to amortization, ending balance | $ 707,380 | $ 644,208 | $ 580,147 | |
Selling, general and administrative expenses | Tradenames | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset impairment | $ 47,905 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of intangible assets subject to amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | $ 247,559 | $ 254,459 | |
Intangible assets acquired during the year | 47,368 | 3,175 | |
Amortization during the year | (30,745) | (34,279) | $ (39,545) |
Currency translation during the year | (9,752) | 24,204 | |
Intangible assets subject to amortization, ending balance | 254,430 | 247,559 | 254,459 |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 234,835 | 235,704 | |
Intangible assets acquired during the year | 47,361 | 3,175 | |
Amortization during the year | (28,389) | (26,602) | |
Currency translation during the year | (9,179) | 22,558 | |
Intangible assets subject to amortization, ending balance | 244,628 | 234,835 | 235,704 |
Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 7,061 | 13,424 | |
Intangible assets acquired during the year | 0 | 0 | |
Amortization during the year | (2,272) | (7,543) | |
Currency translation during the year | (294) | 1,180 | |
Intangible assets subject to amortization, ending balance | 4,495 | 7,061 | 13,424 |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 5,663 | 5,331 | |
Intangible assets acquired during the year | 7 | 0 | |
Amortization during the year | (84) | (134) | |
Currency translation during the year | (279) | 466 | |
Intangible assets subject to amortization, ending balance | $ 5,307 | $ 5,663 | $ 5,331 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Net intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible Assets, Net: | |||
Cost | $ 899,057 | $ 810,332 | |
Acquisitions | 47,368 | 3,175 | |
Currency translation | (34,394) | 85,550 | |
Accumulated amortization | 657,601 | 651,498 | |
Net Value | 254,430 | 247,559 | $ 254,459 |
Customer relationships | |||
Intangible Assets, Net: | |||
Cost | 625,263 | 569,980 | |
Acquisitions | 47,361 | 3,175 | |
Currency translation | (21,610) | 52,108 | |
Accumulated amortization | 406,386 | 390,428 | |
Net Value | 244,628 | 234,835 | 235,704 |
Patents | |||
Intangible Assets, Net: | |||
Cost | 266,969 | 234,022 | |
Acquisitions | 0 | 0 | |
Currency translation | (12,486) | 32,947 | |
Accumulated amortization | 249,988 | 259,908 | |
Net Value | 4,495 | 7,061 | $ 13,424 |
Other | |||
Intangible Assets, Net: | |||
Cost | 6,825 | 6,330 | |
Acquisitions | 7 | 0 | |
Currency translation | (298) | 495 | |
Accumulated amortization | 1,227 | 1,162 | |
Net Value | $ 5,307 | $ 5,663 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (Schedule of intangible assets amortization expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 30,745 | $ 34,279 | $ 39,545 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets (Schedule of estimated amortization expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 28,213 |
2,020 | 28,213 |
2,021 | 28,021 |
2,022 | 26,190 |
2,023 | $ 24,558 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 8,227,074 | $ 7,486,284 |
Less accumulated depreciation and amortization | 3,527,172 | 3,215,494 |
Net property, plant and equipment | 4,699,902 | 4,270,790 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 407,780 | 385,027 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,584,240 | 1,413,877 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 5,334,060 | 4,603,911 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 230,644 | 211,730 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 94,683 | 78,803 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 575,667 | $ 792,936 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest included in property, plant and equipment | $ 10,684 | $ 8,543 | $ 5,608 |
Depreciation expense | 487,411 | 408,646 | $ 366,233 |
Capital leases included in the property, plant and equipment, cost | 7,106 | 5,984 | |
Capital leases included in the property, plant and equipment, accumulated depreciation | $ 2,333 | $ 2,071 |
Long-Term Debt (Senior Credit F
Long-Term Debt (Senior Credit Facility) (Details) | Mar. 26, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 25, 2015USD ($) |
2013 Senior Secured Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | $ 1,000,000,000 | |||
2015 Senior Secured Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | $ 1,800,000,000 | |||
Commitment fee percentage | 0.125% | |||
Unamortized financing costs | $ 6,873,000 | |||
Utilized borrowings under credit facility | $ 1,452,330,000 | |||
Available amount under credit facility | 347,670,000 | |||
2015 Senior Secured Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.10% | |||
Consolidated interest coverage ratio | 3 | |||
2015 Senior Secured Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.225% | |||
Consolidated net leverage ratio | 3.75 | |||
2015 Senior Secured Credit Facility | Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | 57,896,000 | |||
2015 Senior Secured Credit Facility | Standby letters of credit related to various insurance contracts and foreign vendor commitments | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | $ 54,591,000 | |||
2015 Senior Secured Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.125% | |||
2015 Senior Secured Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.00% | |||
2015 Senior Secured Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.75% | |||
2015 Senior Secured Credit Facility | Federal Funds Effective Swap Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.50% | |||
2015 Senior Secured Credit Facility | Monthly LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.00% | 0.125% | ||
2015 Senior Secured Credit Facility | Monthly LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.00% | |||
2015 Senior Secured Credit Facility | Monthly LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.75% | |||
2015 Senior Secured Credit Facility Amendment | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized financing costs | $ 567,000 | |||
Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | $ 1,339,843,000 |
Long-Term Debt (Commercial Pape
Long-Term Debt (Commercial Paper) (Details) - USD ($) | Jul. 31, 2015 | Feb. 28, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 26, 2015 |
United States | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 27 days 15 hours 21 minutes 36 seconds | ||||
Maximum borrowing capacity under credit facility | $ 1,800,000,000 | ||||
Weighted average interest rate on debt | 2.98% | ||||
United States | Maximum | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 397 days | ||||
Europe | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 183 days | 28 days 14 hours 38 minutes 24 seconds | |||
Weighted average interest rate on debt | (0.21%) | ||||
Carrying Value | United States | |||||
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 632,668,000 | $ 228,500,000 | |||
Carrying Value | Europe | |||||
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 707,175,000 | $ 912,146,000 |
Long-Term Debt (Senior Notes) (
Long-Term Debt (Senior Notes) (Details) | May 18, 2018USD ($) | Sep. 11, 2017USD ($) | Jan. 15, 2016USD ($) | Jun. 09, 2015USD ($) | Jan. 31, 2013USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 18, 2018EUR (€) | Sep. 11, 2017EUR (€) | Jun. 09, 2015EUR (€) | Dec. 31, 2014USD ($) | Jan. 17, 2006USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 890,000 | $ 1,478,000 | $ 1,336,000 | ||||||||||
3.85% senior notes, payable February 1, 2023; interest payable semiannually | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debts | $ 600,000,000 | ||||||||||||
Debt issuance costs | $ 6,000,000 | ||||||||||||
Interest rate percentage | 3.85% | ||||||||||||
Floating Rate Notes, payable May 18, 2020; interest payable quarterly | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debts | € | € 300,000,000 | ||||||||||||
Debt issuance costs | $ 890,000 | ||||||||||||
2.00% senior notes, payable January 14, 2022; interest payable annually | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debts | € | € 500,000,000 | ||||||||||||
Debt issuance costs | $ 4,218,000 | ||||||||||||
Interest rate percentage | 2.00% | ||||||||||||
Floating Rate Notes, payable September 11, 2019, interest payable quarterly | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debts | € | € 300,000,000 | ||||||||||||
Debt issuance costs | $ 911,000 | ||||||||||||
6.125% notes, payable January 15, 2016; interest payable semiannually | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debts | $ 900,000,000 | ||||||||||||
Interest rate percentage | 6.125% | ||||||||||||
Amount of debt repurchased | $ 254,445,000 | ||||||||||||
Remaining principal paid in period | $ 645,555,000 | ||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Floating Rate Notes, payable May 18, 2020; interest payable quarterly | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on debt instrument | 0.30% | ||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Floating Rate Notes, payable September 11, 2019, interest payable quarterly | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on debt instrument | 0.30% |
Long-Term Debt (Accounts Receiv
Long-Term Debt (Accounts Receivable Securitization) (Details) - Securitization facility - USD ($) | Dec. 10, 2015 | Sep. 11, 2014 | Dec. 19, 2012 |
Line of Credit Facility [Line Items] | |||
Maturity period of debt | 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 | 0.30% | ||
Payment of financing costs | $ 250,000 |
Long-Term Debt (Fair Value and
Long-Term Debt (Fair Value and Carrying Value of Debt Instruments) (Details) - USD ($) $ in Thousands | Sep. 25, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 09, 2015 | Jan. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Less current portion of long term debt and commercial paper | $ 1,742,373 | $ 1,203,683 | |||
Long-term debt, less current portion | 3,263,129 | ||||
Senior Secured Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Term of line of credit | 5 years | ||||
3.85% senior notes, payable February 1, 2023; interest payable semiannually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate percentage | 3.85% | ||||
2.00% senior notes, payable January 14, 2022; interest payable annually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate percentage | 2.00% | ||||
Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Capital leases and other | 6,664 | 6,934 | |||
Unamortized debt issuance costs | (5,155) | (6,260) | |||
Total debt | 3,273,203 | 2,821,176 | |||
Less current portion of long term debt and commercial paper | 1,742,373 | 1,203,683 | |||
Long-term debt, less current portion | 1,530,830 | 1,617,493 | |||
Fair Value | 3.85% senior notes, payable February 1, 2023; interest payable semiannually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 599,904 | 622,752 | |||
Fair Value | Floating Rate Notes, payable May 18, 2020; interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 343,004 | 0 | |||
Fair Value | 2.00% senior notes, payable January 14, 2022; interest payable annually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 587,487 | 634,193 | |||
Fair Value | Floating Rate Notes, payable September 11, 2019, interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 343,560 | 360,807 | |||
Fair Value | Five-year senior secured credit facility, due March 26, 2022 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 57,896 | 62,104 | |||
Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Capital leases and other | 6,664 | 6,934 | |||
Unamortized debt issuance costs | (5,155) | (6,260) | |||
Total debt | 3,257,974 | 2,763,578 | |||
Less current portion of long term debt and commercial paper | 1,742,373 | 1,203,683 | |||
Long-term debt, less current portion | 1,515,601 | 1,559,895 | |||
Carrying Value | 3.85% senior notes, payable February 1, 2023; interest payable semiannually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 600,000 | 600,000 | |||
Carrying Value | Floating Rate Notes, payable May 18, 2020; interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 343,289 | 0 | |||
Carrying Value | 2.00% senior notes, payable January 14, 2022; interest payable annually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 572,148 | 600,096 | |||
Carrying Value | Floating Rate Notes, payable September 11, 2019, interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 343,289 | 360,058 | |||
Carrying Value | Five-year senior secured credit facility, due March 26, 2022 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 57,896 | 62,104 | |||
United States | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | 632,668 | 228,500 | |||
United States | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | 632,668 | 228,500 | |||
Europe | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | 707,175 | 912,146 | |||
Europe | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | $ 707,175 | $ 912,146 |
Long-Term Debt (Aggregate Matur
Long-Term Debt (Aggregate Maturities Of Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 1,742,373 |
2,020 | 344,323 |
2,021 | 617 |
2,022 | 572,568 |
2,023 | 600,420 |
Thereafter | 2,828 |
Aggregate maturities of long-term debt | $ 3,263,129 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Outstanding checks in excess of cash | $ 14,624 | $ 8,879 |
Accounts payable, trade | 811,879 | 810,034 |
Accrued expenses | 430,431 | 363,919 |
Product warranties | 47,511 | 39,035 |
Accrued interest | 21,908 | 22,363 |
Accrued compensation and benefits | 197,513 | 207,442 |
Total accounts payable and accrued expenses | $ 1,523,866 | $ 1,451,672 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 19, 2017 | May 09, 2012 | |
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Options granted (in shares) | 0 | ||||
Total intrinsic value of options exercised | $ 0 | $ 5,005 | $ 10,571 | ||
Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation costs | 0 | 6 | 40 | ||
Recognized stock-based compensation costs, net of tax | 0 | 4 | 24 | ||
Pre-tax unrecognized compensation expense | 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation costs | 31,382 | 36,316 | 35,019 | ||
Recognized stock-based compensation costs, net of tax | 24,436 | $ 22,037 | $ 21,250 | ||
Pre-tax unrecognized compensation expense | $ 20,834 | ||||
Recognized expense over a weighted-average period, years | 1 year 3 months 4 days | ||||
2012 Long-Term Incentive Plan | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 3,200,000 | ||||
Additional awards available to be granted (in shares) | 0 | ||||
2012 Long-Term Incentive Plan | Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Option awards contractual term (years) | 10 years | ||||
2012 Long-Term Incentive Plan | Minimum | Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 3 years | ||||
2012 Long-Term Incentive Plan | Minimum | Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 3 years | ||||
2012 Long-Term Incentive Plan | Maximum | Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 5 years | ||||
2012 Long-Term Incentive Plan | Maximum | Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 5 years | ||||
2017 Long-Term Incentive Plan | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 3,000 | ||||
Non-employee director | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Options granted (in shares) | 1,000 | 1,000 | 1,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock Option Plans Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Options outstanding, beginning balance (in shares) | 63,000 | ||
Options exercised (in shares) | 0 | ||
Options forfeited and expired (in shares) | 0 | ||
Options outstanding, ending balance (in shares) | 63,000 | 63,000 | |
Options exercisable at end of year (in shares) | 63,000 | ||
Weighted average exercise price | |||
Exercised (usd per share) | $ 0 | ||
Options outstanding, ending balance (usd per share) | 62.86 | $ 62.86 | |
Options exercisable at end of year (usd per share) | $ 62.86 | ||
Stock Options Plans | |||
Shares | |||
Options outstanding, beginning balance (in shares) | 63,000 | 91,000 | 169,000 |
Options exercised (in shares) | 0 | (28,000) | (78,000) |
Options forfeited and expired (in shares) | 0 | 0 | 0 |
Options outstanding, ending balance (in shares) | 63,000 | 63,000 | 91,000 |
Options exercisable at end of year (in shares) | 63,000 | 63,000 | 90,000 |
Minimum | Stock Options Plans | |||
Weighted average exercise price | |||
Exercised (usd per share) | $ 0 | $ 57.34 | $ 28.37 |
Options forfeited and expired during the year (usd per share) | 0 | 0 | 0 |
Options outstanding, ending balance (usd per share) | 57.34 | 57.34 | 57.34 |
Options exercisable at end of year (usd per share) | 57.34 | 57.34 | 57.34 |
Maximum | Stock Options Plans | |||
Weighted average exercise price | |||
Exercised (usd per share) | 0 | 66.14 | 93.65 |
Options forfeited and expired during the year (usd per share) | 0 | 0 | 0 |
Options outstanding, ending balance (usd per share) | 66.14 | 66.14 | 66.14 |
Options exercisable at end of year (usd per share) | $ 66.14 | $ 66.14 | $ 66.14 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Options Under The 2007 Plan) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Shares | |
Options outstanding, beginning balance (in shares) | shares | 63,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited and expired (in shares) | shares | 0 |
Options outstanding, ending balance (in shares) | shares | 63,000 |
Vested and expected to vest as of December 31, 2018 (in shares) | shares | 63,000 |
Exercisable as of December 31, 2018 (in shares) | shares | 63,000 |
Weighted average exercise price | |
Options outstanding, beginning balance (usd per share) | $ / shares | $ 62.86 |
Granted (usd per share) | $ / shares | 0 |
Exercised (usd per share) | $ / shares | 0 |
Forfeited and expired (usd per share) | $ / shares | 0 |
Options outstanding, ending balance (usd per share) | $ / shares | 62.86 |
Vested and expected to vest as of December 31, 2018 (usd per share) | $ / shares | 62.86 |
Exercisable as of December 31, 2018 (usd per share) | $ / shares | $ 62.86 |
Additional Disclosures | |
Options outstanding, weighted average remaining contractual term (years) | 2 years 9 months 18 days |
Vested and expected to vest, weighted average remaining contractual term (years) | 2 years 9 months 18 days |
Exercisable, weighted average remaining contractual term (years) | 2 years 9 months 18 days |
Options outstanding, aggregate intrinsic value | $ | $ 3,415 |
Vested and expected to vest, aggregate intrinsic value | $ | 3,415 |
Exercisable, aggregate intrinsic value | $ | $ 3,415 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Stock Options By Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, number of shares (in shares) | shares | 63,000 |
Outstanding, average life | 2 years 9 months 7 days |
Outstanding, average price (usd per share) | $ 62.86 |
Exercisable, number of shares (in shares) | shares | 63,000 |
Exercisable, average price (usd per share) | $ 62.86 |
$57.34-$57.34 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 57.34 |
Exercise price range, upper limit (usd per share) | $ 57.34 |
Outstanding, number of shares (in shares) | shares | 23,000 |
Outstanding, average life | 2 years 1 month 24 days |
Outstanding, average price (usd per share) | $ 57.34 |
Exercisable, number of shares (in shares) | shares | 23,000 |
Exercisable, average price (usd per share) | $ 57.34 |
$66.14-$66.14 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 66.14 |
Exercise price range, upper limit (usd per share) | $ 66.14 |
Outstanding, number of shares (in shares) | shares | 40,000 |
Outstanding, average life | 3 years 1 month 21 days |
Outstanding, average price (usd per share) | $ 66.14 |
Exercisable, number of shares (in shares) | shares | 40,000 |
Exercisable, average price (usd per share) | $ 66.14 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of RSUs Under The 2007 Plan) (Details) - 2007 and 2012 Incentive plan - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Restricted Stock Units outstanding, beginning balance (in shares) | 555,000 | 695,000 | 750,000 |
Granted (in shares) | 136,000 | 154,000 | 187,000 |
Released (in shares) | (235,000) | (284,000) | (226,000) |
Forfeited (in shares) | (10,000) | (10,000) | (16,000) |
Restricted Stock Units outstanding, ending balance (in shares) | 446,000 | 555,000 | 695,000 |
Expected to vest as of December 31, 2018 (in shares) | 440,000 | 546,000 | 682,000 |
Weighted average grant date fair value | |||
Restricted Stock Units outstanding, beginning balance (usd per share) | $ 147.28 | ||
Granted (usd per share) | 231.25 | ||
Released (usd per share) | 156.56 | ||
Forfeited (usd per share) | 211.16 | ||
Restricted Stock Units outstanding, ending balance (usd per share) | $ 166.56 | $ 147.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Ending balance, weighted average remaining contractual term (years) | 1 year 1 month 6 days | ||
Expected to vest, weighted average remaining contractual term (years) | 1 year 1 month 6 days | ||
Ending balance, aggregate intrinsic value | $ 51,501 | ||
Expected to vest, aggregate intrinsic value | $ 50,746 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information For RSU's Under The 2007 Plan) (Details) - 2007 and 2012 Incentive plan - Restricted Stock Units (RSUs) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Restricted Stock Units outstanding, beginning balance (in shares) | 555,000 | 695,000 | 750,000 |
Granted (in shares) | 136,000 | 154,000 | 187,000 |
Released (in shares) | (235,000) | (284,000) | (226,000) |
Forfeited (in shares) | (10,000) | (10,000) | (16,000) |
Restricted Stock Units outstanding, ending balance (in shares) | 446,000 | 555,000 | 695,000 |
Expected to vest at end of year (in shares) | 440,000 | 546,000 | 682,000 |
Other Expense (Income) (Summary
Other Expense (Income) (Summary of other expense (income)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Foreign currency losses | $ 9,613 | $ 8,395 | $ 1,099 |
Release of indemnification asset | 4,606 | 4,459 | 5,371 |
All other, net | (6,921) | (7,649) | (8,199) |
Total other expense (income) | $ 7,298 | $ 5,205 | $ (1,729) |
Income Taxes (Earnings (Loss) F
Income Taxes (Earnings (Loss) From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 387,564 | $ 754,562 | $ 627,567 |
Foreign | 661,637 | 563,295 | 613,558 |
Earnings before income taxes | $ 1,049,201 | $ 1,317,857 | $ 1,241,125 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income taxes: | |||
Current income taxes: U.S. federal | $ 22,700 | $ 327,697 | $ 247,917 |
Current income taxes: State and local | 14,521 | 17,811 | 31,939 |
Current income taxes: Foreign | 58,669 | 73,248 | 61,712 |
Total current income taxes | 95,890 | 418,756 | 341,568 |
Deferred income taxes: | |||
Deferred income taxes: U.S. federal | 54,983 | (17,419) | (16,167) |
Deferred income taxes: State and local | 19,076 | (3,046) | (22,115) |
Deferred income taxes: Foreign | 14,397 | (55,126) | 4,273 |
Total deferred income taxes | 88,456 | (75,591) | (34,009) |
Income tax expense (benefit) | $ 184,346 | $ 343,165 | $ 307,559 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) € in Thousands, $ in Thousands | Dec. 28, 2012EUR (€) | Jan. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2013EUR (€) | Jan. 31, 2012EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Income Taxes [Line Items] | ||||||||
Percentage of earnings from continuing operations before income taxes attributable to the United States | 37.00% | |||||||
Valuation allowance against deferred tax asset | $ 347,786 | $ 362,963 | ||||||
Increase (decrease) in the valuation allowance | (15,177) | 73,885 | ||||||
Net operating loss carryforwards and tax credit | 575,625 | 530,978 | ||||||
Net operating loss carryforwards in various foreign jurisdictions | 1,805,648 | |||||||
Repatriation transition tax expense | 133,366 | 105,165 | ||||||
Accumulated earnings | 1,936,000 | |||||||
TCJA net provisional tax expense | 45,249 | |||||||
Related transactions for repatriation transition tax expense | 46,191 | |||||||
TCJA revaluation of deferred tax assets and liabilities | 106,107 | |||||||
Provisional income tax expense (benefit) | 25,564 | |||||||
Transition tax for accumulated foreign earnings, provisional liability | 132,236 | |||||||
Gross unrecognized tax benefits | 1,330,713 | 65,631 | $ 46,434 | |||||
Unrecognized tax benefits that would impact effective tax rate | 23,477 | |||||||
Interest and penalties | 7,184 | 8,252 | ||||||
Accrued/(reversed) interest and penalties | (1,085) | $ 165 | $ 2,170 | |||||
Expected decrease in unrecognized tax benefits within next twelve months | 9,166 | |||||||
Luxembourg | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards in various foreign jurisdictions | $ 1,298,737 | |||||||
Domestic tax authority | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate | 28.70% | 43.10% | 38.50% | |||||
Foreign tax authority | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate | 11.00% | 3.20% | 10.80% | |||||
Foreign tax authority | Tax year 2008 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 30,131 | |||||||
Foreign tax authority | Tax year 2005 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 46,135 | |||||||
Foreign tax authority | Tax year 2009 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 35,567 | |||||||
Foreign tax authority | Tax year 2006 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | 38,817 | |||||||
Foreign tax authority | Tax year 2007 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | 39,635 | |||||||
Foreign tax authority | Tax year 2010 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 43,117 | |||||||
Foreign tax authority | Tax year 2011 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 37,991 | |||||||
State | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards and tax credit | $ 68,714 | |||||||
Repatriation transition tax expense | 1,130 | |||||||
Foreign subsidiary and state net operating losses and tax credits | ||||||||
Income Taxes [Line Items] | ||||||||
Increase (decrease) in the valuation allowance | (15,357) | $ 36,792 | ||||||
State deferred tax assets | ||||||||
Income Taxes [Line Items] | ||||||||
Valuation allowance against deferred tax asset | 37,870 | |||||||
Operating loss carryforward, foreign jurisdiction | ||||||||
Income Taxes [Line Items] | ||||||||
Valuation allowance against deferred tax asset | $ 309,916 | |||||||
Subsequent Event | Foreign tax authority | Tax year 2012 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 38,858 | |||||||
Subsequent Event | Foreign tax authority | Tax year 2013 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | 11,108 | |||||||
Subsequent Event | Foreign tax authority | Tax year 2014 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | 23,522 | |||||||
Subsequent Event | Foreign tax authority | Tax year 2015 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | 30,610 | |||||||
Subsequent Event | Foreign tax authority | Tax year 2016 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | 92,109 | |||||||
Subsequent Event | Foreign tax authority | Tax year 2017 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 78,174 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $ 220,332 | $ 461,250 | $ 434,394 |
State and local income taxes, net of federal income tax benefit | 22,315 | 10,133 | 6,298 |
Foreign income taxes | (39,915) | (113,520) | (111,217) |
Change in valuation allowance | 2,472 | 10,008 | (21,106) |
Manufacturing deduction | 0 | (11,911) | (15,186) |
2017 revaluation of deferred tax assets and liabilities | 0 | (150,546) | 0 |
Transition Tax | 28,201 | 105,165 | 0 |
Transition tax planning initiatives | (18,706) | 14,825 | 3,881 |
Tax contingencies and audit settlements | (31,874) | 23,097 | 2,496 |
Other, net | 1,521 | (5,336) | 7,999 |
Income tax expense (benefit) | $ 184,346 | 343,165 | $ 307,559 |
Belgium tax reform, income tax expense (benefit) | $ (44,439) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Accounts receivable | $ 8,312 | $ 18,481 |
Inventories | 47,212 | 41,169 |
Employee benefits | 37,335 | 42,191 |
Accrued expenses and other | 71,621 | 52,635 |
Deductible state tax and interest benefit | 2,904 | 2,087 |
Intangibles | 16,134 | 22,119 |
Federal, foreign and state net operating losses and credits | 575,625 | 530,978 |
Gross deferred tax assets | 759,143 | 709,660 |
Valuation allowance | (347,786) | (362,963) |
Net deferred tax assets | 411,357 | 346,697 |
Inventories | (18,332) | (14,423) |
Plant and equipment | (477,734) | (397,668) |
Intangibles | (181,436) | (170,817) |
Other liabilities | (96,134) | (31,702) |
Gross deferred tax liabilities | (773,636) | (614,610) |
Net deferred tax liability | $ (362,279) | $ (267,913) |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance as of January 1 | $ 65,631 | $ 46,434 |
Additions based on tax positions related to the current year | 1,304,447 | 28,663 |
Additions for tax positions of acquired companies | 1,413 | 1,776 |
Additions for tax positions of prior years | 5,098 | 876 |
Transition tax planning initiatives | (27,470) | 0 |
Reductions resulting from the lapse of the statute of limitations | (8,110) | (14,502) |
Settlements with taxing authorities | (9,773) | (655) |
Effects of foreign currency translation | 3,039 | |
Effects of foreign currency translation | (523) | |
Balance as of December 31 | $ 1,330,713 | $ 65,631 |
Commitments and Contingencies_2
Commitments and Contingencies (Summary of Future Lease Payments Under Non-Cancelable Capital and Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Capital | |
2,019 | $ 1,494 |
2,020 | 1,195 |
2,021 | 766 |
2,022 | 562 |
2,023 | 555 |
Thereafter | 3,215 |
Total payments | 7,787 |
Less amount representing interest | 1,123 |
Present value of capitalized lease payments | 6,664 |
Operating | |
2,019 | 116,110 |
2,020 | 93,724 |
2,021 | 66,129 |
2,022 | 42,247 |
2,023 | 22,207 |
Thereafter | 26,097 |
Total payments | 366,514 |
Total Future Payments | |
2,019 | 117,604 |
2,020 | 94,919 |
2,021 | 66,895 |
2,022 | 42,809 |
2,023 | 22,762 |
Thereafter | 29,312 |
Total payments | $ 374,301 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Rent expense under operating leases | $ 143,513 | $ 145,176 | $ 125,103 |
Standby letters of credit related to various insurance contracts and foreign vendor commitments | Senior Secured Credit Facility | |||
Commitments And Contingencies [Line Items] | |||
Standby letters of credit for various insurance contracts and commitments to foreign vendors | $ 54,591 | $ 56,267 | |
Standby letters of credit related to various insurance contracts and foreign vendor commitments | Senior Secured Credit Facility | Maximum | |||
Commitments And Contingencies [Line Items] | |||
Expiration period for standby letters of credit | 2 years |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 46,186 | $ 33,952 | $ 57,269 |
Income taxes | 196,193 | 373,900 | 276,789 |
Supplemental schedule of non-cash investing and financing activities: | |||
Additions to property, plant and equipment | (4,672) | 30,643 | 0 |
Fair value of net assets acquired in acquisition | 831,760 | 369,956 | 0 |
Liabilities assumed in acquisition | (257,515) | (119,157) | 0 |
Noncash investing and financing activities, total | $ 574,245 | $ 250,799 | $ 0 |
Segment Reporting (Summary of s
Segment Reporting (Summary of segment information) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reporting segments | segment | 3 | ||||||||||
Assets | $ 13,099,123 | $ 12,094,853 | $ 13,099,123 | $ 12,094,853 | $ 10,230,596 | ||||||
Net sales | 2,448,618 | $ 2,545,800 | $ 2,577,014 | $ 2,412,202 | 2,369,097 | $ 2,448,510 | $ 2,453,038 | $ 2,220,645 | 9,983,634 | 9,491,290 | 8,959,087 |
Long-lived assets | 7,220,869 | 6,742,249 | 7,220,869 | 6,742,249 | 5,644,774 | ||||||
Operating income (loss) | 1,095,326 | 1,354,173 | 1,279,943 | ||||||||
Depreciation and amortization | 521,765 | 446,672 | 409,467 | ||||||||
Capital expenditures (excluding acquisitions) | 794,110 | 905,998 | 672,125 | ||||||||
Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,621,193 | 3,485,245 | 3,258,137 | ||||||||
Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,903,698 | 3,655,902 | 3,412,846 | ||||||||
Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,553,032 | 1,519,417 | 1,493,995 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 905,711 | 830,726 | 794,109 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 6,103,789 | 6,035,200 | 5,842,165 | ||||||||
Long-lived assets | 3,485,046 | 3,339,363 | 3,485,046 | 3,339,363 | 3,092,902 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,582,692 | 2,363,069 | 2,113,972 | ||||||||
Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 349,220 | 326,075 | 255,736 | ||||||||
Belgium | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 1,663,470 | 1,705,947 | 1,663,470 | 1,705,947 | 1,371,397 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 947,933 | 766,946 | 747,214 | ||||||||
Long-lived assets | 2,072,353 | 1,696,939 | 2,072,353 | 1,696,939 | 1,180,475 | ||||||
Operating segments | Global Ceramic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 5,194,030 | 4,838,310 | 5,194,030 | 4,838,310 | 4,024,859 | ||||||
Net sales | 3,552,856 | 3,405,100 | 3,174,706 | ||||||||
Operating income (loss) | 442,898 | 525,401 | 478,448 | ||||||||
Depreciation and amortization | 189,904 | 161,913 | 135,370 | ||||||||
Capital expenditures (excluding acquisitions) | 281,125 | 310,650 | 263,401 | ||||||||
Operating segments | Global Ceramic | Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,552,856 | 3,405,100 | 3,174,706 | ||||||||
Operating segments | Global Ceramic | Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Global Ceramic | Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Global Ceramic | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Global Ceramic | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 714,315 | 645,341 | 533,339 | ||||||||
Operating segments | Global Ceramic | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 245,867 | 235,043 | 180,420 | ||||||||
Operating segments | Flooring NA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 3,938,639 | 3,702,137 | 3,938,639 | 3,702,137 | 3,410,856 | ||||||
Net sales | 4,029,148 | 4,010,858 | 3,865,746 | ||||||||
Operating income (loss) | 347,937 | 540,337 | 505,115 | ||||||||
Depreciation and amortization | 184,455 | 159,980 | 148,067 | ||||||||
Capital expenditures (excluding acquisitions) | 262,676 | 355,941 | 248,843 | ||||||||
Operating segments | Flooring NA | Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 68,337 | 80,145 | 83,431 | ||||||||
Operating segments | Flooring NA | Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,258,029 | 3,219,971 | 3,042,729 | ||||||||
Operating segments | Flooring NA | Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 702,782 | 710,742 | 739,586 | ||||||||
Operating segments | Flooring NA | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Flooring NA | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 6,487 | 19,100 | 15,628 | ||||||||
Operating segments | Flooring NA | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2 | (1) | 12 | ||||||||
Operating segments | Flooring ROW | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 3,666,617 | 3,245,424 | 3,666,617 | 3,245,424 | 2,689,592 | ||||||
Net sales | 2,401,630 | 2,075,452 | 1,918,635 | ||||||||
Operating income (loss) | 345,801 | 329,054 | 333,091 | ||||||||
Depreciation and amortization | 135,350 | 114,794 | 116,048 | ||||||||
Capital expenditures (excluding acquisitions) | 232,949 | 221,763 | 144,207 | ||||||||
Operating segments | Flooring ROW | Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Operating segments | Flooring ROW | Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 645,669 | 435,931 | 370,117 | ||||||||
Operating segments | Flooring ROW | Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 850,250 | 808,675 | 754,409 | ||||||||
Operating segments | Flooring ROW | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 905,711 | 830,846 | 794,109 | ||||||||
Operating segments | Flooring ROW | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,861,890 | 1,698,628 | 1,565,005 | ||||||||
Operating segments | Flooring ROW | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 103,351 | 91,033 | 75,304 | ||||||||
Corporate and intersegment eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 299,837 | $ 308,982 | 299,837 | 308,982 | 105,289 | ||||||
Operating income (loss) | (41,310) | (40,619) | (36,711) | ||||||||
Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | (120) | 0 | ||||||||
Intersegment sales | Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | (120) | 0 | ||||||||
Intersegment sales | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Intersegment sales | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 12,056 | 9,985 | 9,982 | ||||||||
Capital expenditures (excluding acquisitions) | $ 17,360 | $ 17,644 | $ 15,674 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,448,618 | $ 2,545,800 | $ 2,577,014 | $ 2,412,202 | $ 2,369,097 | $ 2,448,510 | $ 2,453,038 | $ 2,220,645 | $ 9,983,634 | $ 9,491,290 | $ 8,959,087 |
Gross profit | 646,390 | 1,825,367 | 766,555 | 704,692 | 753,624 | 783,301 | 779,136 | 680,353 | 2,838,070 | 2,996,414 | 2,812,825 |
Net income | $ 229,339 | $ 227,013 | $ 196,586 | $ 208,766 | $ 240,378 | $ 270,025 | $ 260,681 | $ 200,554 | $ 861,704 | $ 971,638 | $ 930,362 |
Basic earnings per share (usd per share) | $ 3.07 | $ 3.03 | $ 2.64 | $ 2.80 | $ 3.23 | $ 3.63 | $ 3.51 | $ 2.70 | $ 11.53 | $ 13.07 | $ 12.55 |
Diluted earnings per share (usd per share) | $ 3.05 | $ 3.02 | $ 2.62 | $ 2.78 | $ 3.21 | $ 3.61 | $ 3.48 | $ 2.68 | $ 11.47 | $ 12.98 | $ 12.48 |
Subsequent Event (Details)
Subsequent Event (Details) € in Millions | Jan. 31, 2019EUR (€) |
Distribution Company in Netherlands | Subsequent Event | |
Subsequent Event [Line Items] | |
Purchase agreement price | € 60.6 |