COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 01-13697 | ||
Entity Registrant Name | MOHAWK INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-1604305 | ||
Entity Address, Address Line One | 160 S. Industrial Blvd. | ||
Entity Address, City or Town | Calhoun | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30701 | ||
City Area Code | 706 | ||
Local Phone Number | 629-7721 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,763,305,060 | ||
Entity Common Stock, Shares Outstanding | 71,672,772 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders-Part III. | ||
Entity Central Index Key | 0000851968 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $.01 par value | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | MHK | ||
Security Exchange Name | NYSE | ||
Floating Rate Notes due 2020 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Floating Rate Notes due 2020 | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE | ||
Floating Rate Notes due 2021 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Floating Rate Notes due 2021 | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE | ||
2.000% Senior Notes due 2022 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.000% Senior Notes due 2022 | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 134,785 | $ 119,050 |
Receivables, net | 1,526,619 | 1,606,159 |
Inventories | 2,282,328 | 2,287,615 |
Prepaid expenses | 415,546 | 421,553 |
Other current assets | 70,179 | 74,919 |
Total current assets | 4,429,457 | 4,509,296 |
Property, plant and equipment, net | 4,698,917 | 4,699,902 |
Right of use operating lease assets | 323,003 | |
Goodwill | 2,570,027 | 2,520,966 |
Tradenames | 702,732 | 707,380 |
Other intangible assets, net | 226,147 | 254,430 |
Deferred income taxes and other non-current assets | 436,397 | 407,149 |
Total assets | 13,386,680 | 13,099,123 |
Current liabilities: | ||
Current portion of long-term debt | 1,051,498 | 1,742,373 |
Accounts payable and accrued expenses | 1,559,140 | 1,523,866 |
Current operating lease liabilities | 101,945 | |
Total current liabilities | 2,712,583 | 3,266,239 |
Deferred income taxes | 473,886 | 413,740 |
Long-term debt, less current portion | 1,518,388 | 1,515,601 |
Non-current operating lease liabilities | 228,155 | |
Other long-term liabilities | 327,220 | 463,484 |
Total liabilities | 5,260,232 | 5,659,064 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value; 60 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 150,000 shares authorized; 78,980 and 79,656 shares issued in 2019 and 2018, respectively | 790 | 797 |
Additional paid-in capital | 1,868,250 | 1,852,173 |
Retained earnings | 7,232,337 | 6,588,197 |
Accumulated other comprehensive loss | (765,824) | (791,608) |
Shareholder's equity before treasury stock | 8,335,553 | 7,649,559 |
Less: treasury stock at cost; 7,348 and 7,349 shares in 2019 and 2018, respectively | 215,712 | 215,745 |
Total Mohawk Industries, Inc. stockholders’ equity | 8,119,841 | 7,433,814 |
Noncontrolling interest | 6,607 | 6,245 |
Total stockholders’ equity | 8,126,448 | 7,440,059 |
Total liabilities and shareholders' equity | $ 13,386,680 | $ 13,099,123 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 78,980,000 | 79,656,000 |
Treasury stock, shares (in shares) | 7,348,000 | 7,349,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 9,970,672 | $ 9,983,634 | $ 9,491,290 |
Cost of sales | 7,294,629 | 7,145,564 | 6,494,876 |
Gross profit | 2,676,043 | 2,838,070 | 2,996,414 |
Selling, general and administrative expenses | 1,848,819 | 1,742,744 | 1,642,241 |
Operating income | 827,224 | 1,095,326 | 1,354,173 |
Interest expense | 41,272 | 38,827 | 31,111 |
Other expense | 36,407 | 7,298 | 5,205 |
Earnings before income taxes | 749,545 | 1,049,201 | 1,317,857 |
Income tax expense | 4,974 | 184,346 | 343,165 |
Net earnings including noncontrolling interest | 744,571 | 864,855 | 974,692 |
Net earnings attributable to noncontrolling interest | 360 | 3,151 | 3,054 |
Net earnings attributable to Mohawk Industries, Inc. | $ 744,211 | $ 861,704 | $ 971,638 |
Basic earnings per share attributable to Mohawk Industries, Inc. | |||
Basic earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 10.34 | $ 11.53 | $ 13.07 |
Weighted-average common shares outstanding—basic (in shares) | 71,986 | 74,413 | 74,357 |
Diluted earnings per share attributable to Mohawk Industries, Inc. | |||
Diluted earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 10.30 | $ 11.47 | $ 12.98 |
Weighted-average common shares outstanding—diluted (in shares) | 72,264 | 74,773 | 74,839 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings including noncontrolling interest | $ 744,571 | $ 864,855 | $ 974,692 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | 28,996 | (237,339) | 281,655 |
Prior pension and post-retirement benefit service cost and actuarial loss (gain) | (3,210) | 1,094 | (2,927) |
Other comprehensive income (loss) | 25,786 | (236,245) | 278,728 |
Comprehensive income | 770,357 | 628,610 | 1,253,420 |
Comprehensive income (loss) attributable to the non-controlling interest | 360 | (13) | 7,282 |
Comprehensive income attributable to Mohawk Industries, Inc. | $ 769,997 | $ 628,623 | $ 1,246,138 |
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, 2016 | $ 5,783,487 | $ 23,696 | $ 815 | $ 1,791,540 | $ 5,032,914 | $ (833,027) | $ (215,791) | $ 7,036 |
Beginning 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 | (274,144) | $ (23) | (274,121) | |||||
Repurchases of common stock (in shares) | (2,306,000) | |||||||
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) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued under employee and director stock plans | (7,509) | $ 1 | (7,543) | $ 33 | ||||
Shares issued under employee and director stock plans (in shares) | 130,000 | 1,000 | ||||||
Stock-based compensation expense | 23,620 | 23,620 | ||||||
Repurchases of common stock | (100,079) | $ (8) | (100,071) | |||||
Repurchases of common stock (in shares) | (806,000) | |||||||
Noncontrolling earnings | 360 | 360 | ||||||
Currency translation adjustment | 28,996 | 28,994 | 2 | |||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | (3,210) | (3,210) | ||||||
Net income | 744,211 | 744,211 | ||||||
Ending balance at Dec. 31, 2019 | $ 8,126,448 | $ 0 | $ 790 | $ 1,868,250 | $ 7,232,337 | $ (765,824) | $ (215,712) | $ 6,607 |
Ending balance (in shares) at Dec. 31, 2019 | 78,980,000 | (7,348,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 744,571 | $ 864,855 | $ 974,692 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Restructuring | 90,341 | 58,991 | 37,085 |
Depreciation and amortization | 576,452 | 521,765 | 446,672 |
Deferred income taxes | (107,842) | 88,456 | (75,591) |
Loss on disposal of property, plant and equipment | 1,608 | (205) | 4,303 |
Stock-based compensation expense | 23,620 | 31,382 | 36,322 |
Impairment of net investment in a manufacturer and distributor of ceramic tile in China | 59,906 | 0 | 0 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Receivables, net | 81,953 | 13,856 | (60,566) |
Inventories | 7,212 | (255,391) | (153,245) |
Accounts payable and accrued expenses | (52,065) | (69,847) | 25,365 |
Other assets and prepaid expenses | 3,625 | (79,482) | (52,115) |
Other liabilities | (10,620) | 6,964 | 10,673 |
Net cash provided by operating activities | 1,418,761 | 1,181,344 | 1,193,595 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (545,462) | (794,110) | (905,998) |
Acquisitions, net of cash acquired | (81,082) | (568,960) | (250,799) |
Purchases of short-term investments | (581,500) | (664,133) | (83,904) |
Redemption of short-term investments | 592,000 | 695,000 | 0 |
Net cash used in investing activities | (616,044) | (1,332,203) | (1,240,701) |
Cash flows from financing activities: | |||
Payments on Senior Credit Facilities | (488,978) | (813,182) | (454,637) |
Proceeds from Senior Credit Facilities | 448,587 | 809,287 | 447,884 |
Payments on Commercial Paper | (15,168,820) | (16,756,404) | (15,584,017) |
Proceeds from Commercial Paper | 14,540,177 | 16,988,398 | 15,761,954 |
Proceeds from Floating Rate Notes | 331,325 | 353,649 | 357,569 |
Payments on asset securitization borrowings | 0 | 0 | (500,000) |
Payments on Floating Rate Notes | (331,325) | 0 | 0 |
Payments on other debt | (4,295) | 0 | 0 |
Payments on acquired debt and other financings | 0 | (69,571) | (18,811) |
Debt issuance costs | (3,028) | (890) | (1,478) |
Purchase of redeemable non-controlling and non-controlling interest | 0 | (34,944) | 0 |
Repurchases of common stock | (100,080) | (274,144) | 0 |
Change in outstanding checks in excess of cash | (4,664) | 5,753 | (3,402) |
Shares redeemed for taxes | (8,777) | (9,925) | (13,902) |
Proceeds and net tax benefit from stock transactions | 1 | 2 | 1,845 |
Net cash (used in) provided by financing activities | (789,877) | 198,029 | (6,995) |
Effect of exchange rate changes on cash and cash equivalents | 2,895 | (13,004) | 17,320 |
Net change in cash and cash equivalents | 15,735 | 34,166 | (36,781) |
Cash and cash equivalents, beginning of year | 119,050 | 84,884 | 121,665 |
Cash and cash equivalents, end of year | $ 134,785 | $ 119,050 | $ 84,884 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 sheet 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, 2019 , the Company had cash of $134,785 of which $110,033 was held outside the United States. As of December 31, 2018 , the Company had cash of $119,050 of which $88,100 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 15 - 40 years for buildings and improvements, 3 - 25 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 indefinite lived intangible assets may be completed through an 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 assessment indicates it is not more likely than not that the fair value of these assets is less than their carrying amounts, a quantitative impairment test is not required. If a quantitative test is necessary, the Company estimates the fair value of the intangible asset and compares it to its carrying amount. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company may also elect to bypass the qualitative assessment and perform a quantitative impairment test in any period. If the Company elects to perform a quantitative impairment test, it may resume the qualitative assessment in subsequent periods. 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, applicable discount rate 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. 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 $130,207 in 2019 , $116,854 in 2018 and $119,560 in 2017 . 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 $11,418 in 2019 , $13,332 in 2018 and $10,891 in 2017 . (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, 2019 , December 31, 2018 and December 31, 2017 the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $12,049 ( $9,153 net of taxes), a decrease of $27,948 ( $20,376 net of taxes) and an increase of $74,112 ( $46,320 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 2019 , 2018 and 2017 . Computations of basic and diluted earnings per share are presented in the following table: 2019 2018 2017 Earnings attributable to Mohawk Industries, Inc. $ 744,211 861,704 971,638 Accretion of redeemable noncontrolling interest (a) — (3,892 ) (46 ) Net earnings available to common stockholders $ 744,211 857,812 971,592 Weighted-average common shares outstanding-basic and diluted: Weighted-average common shares outstanding - basic 71,986 74,413 74,357 Add weighted-average dilutive potential common shares - options and RSUs to purchase common shares, net 278 360 482 Weighted-average common shares outstanding-diluted 72,264 74,773 74,839 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 10.34 11.53 13.07 Diluted $ 10.30 11.47 12.98 (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 60 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 $57,354 and $23,008 in 2019 , $55,796 and $22,689 in 2018 and $53,544 and $22,039 in 2017 , 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, 2019 were $73,510 and $60,040 , respectively. The Company’s projected benefit obligation and plan assets as of December 31, 2018 were $63,569 and $54,315 , respectively. As of December 31, 2019 , the funded status of the Non-U.S. Plans was a liability of $13,470 of which $8,303 was recorded in accumulated other comprehensive income, for a net liability of $5,167 recorded in other long-term liabilities within the consolidated balance sheets. 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. (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, 2019 , 2018 and 2017 are as follows: Foreign currency translation adjustments Pensions and post-retirement benefits Total 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 loss — — — 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 — — — Balance as of December 31, 2018 (782,102 ) (9,506 ) (791,608 ) Current period other comprehensive income (loss) before reclassifications 28,994 (3,210 ) 25,784 Amounts reclassified from accumulated other comprehensive income (loss) — — — Balance as of December 31, 2019 $ (753,108 ) (12,716 ) (765,824 ) (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 $ 42,500 and $ 53,000 in the Company’s commercial paper as of December 31, 2019 and 2018 , 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and in November 2018 issued ASU 2018-19, which amended the standard. The standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. This standard is effective for the Company on January 1, 2020. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Currently, the Company is assessing the impact of the new guidance. The Company does not expect the adoption of the guidance to have a significant impact on its financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes which simplified the accounting for income taxes in several areas by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes. The amendment is effective commencing in 2021 with early adoption permitted. The Company is currently evaluating the impact that the adoption of this accounting standards update will have on its consolidated financial statements. - Recently Adopted In January 2017, the FASB 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. The effect of adopting the new standard was not material. In February 2016, the FASB issued a new standard ASU 2016-02, Leases , and subsequently issued additional ASUs amending this ASU (collectively ASC 842, Leases ). ASC 842 was issued to increase transparency and comparability among organizations by requiring the recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted the provisions of ASC 842 on January 1, 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. ASC 842 provides a number of optional practical expedients in transition. The Company elected 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 did not elect the use-of-hindsight and elected the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting for leases. The Company elected 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 elected the practical expedient to not separate lease and non-lease components for a majority of its asset classes, including real estate and most equipment. The adoption of ASC 842 had a material impact on the Company’s condensed consolidated balance sheets, but did not have a material impact on the Company’s condensed consolidated statements of operations or cashflow. The most significant impact was the recognition of ROU assets of $328,169 and lease liabilities for operating leases of $332,286 at January 1, 2019, based on the present value of the future minimum rental payments for existing operating leases. The difference in the balances is due to deferred rent, tenant incentive allowances and prepaid amounts taken into account for adoption. The Company’s accounting for finance leases remained substantially unchanged. See Note 11, Leases. On January 1, 2019, the Company adopted the new accounting standard, ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. The effect of adopting the new standard was not material. 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. 2017 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): Classification of Certain Cash Receipts and Cash Payments. 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisitions During 2019, the Company acquired two businesses in the Flooring ROW segment for hard surface flooring distribution companies based in the Netherlands and Czech Republic for $76,237 , resulting in a preliminary goodwill allocation of $48,008 . The results have been included in the Flooring ROW segment and are not material to the Company’s consolidated results of operations. 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 $ 148,302 . The Company’s acquisition of Eliane resulted in allocations of goodwill of $ 33,019 , indefinite-lived tradename intangible assets of $ 32,238 and intangible assets subject to amortization of $ 5,818 . The majority of the goodwill is deductible for tax purposes. The factors contributing to the recognition of the amount of goodwill include product, sales and manufacturing synergies. Eliane’s results of operations have been included in the consolidated financial statements since the date of acquisition in the Global Ceramic reporting segment. 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 allocations of goodwill of $88,655 , indefinite-lived tradename intangible assets of $58,671 and intangible assets subject to amortization of $43,635 . The goodwill is 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. 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 goodwill allocation of $12,874 and intangibles subject to amortization of $7 . 2017 Acquisitions 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 will enhance the Company’s cost position and strengthen its combined brand and distribution in Europe. The acquisition’s results and purchase price allocation have been included in the condensed 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 was not directly deductible for tax purposes. 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. 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, 2019 | |
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 (includes sheet vinyl and LVT), 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 $34,959 and $34,486 as of December 31, 2019 and December 31, 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, 2019 , 2018 , and 2017 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 $69,039 and $57,840 as of December 31, 2019 and December 31, 2018 , respectively. Amortization expense recognized during 2019 related to these capitalized costs was $41,819 . 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, 2019 , 2018 and 2017 , respectively: December 31, 2019 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,131,029 3,688,691 2,873 — 5,822,593 Europe 711,762 6,922 1,813,555 — 2,532,239 Russia 269,142 66 116,187 — 385,395 Other 519,209 148,035 563,201 — 1,230,445 Total $ 3,631,142 3,843,714 2,495,816 — 9,970,672 Product Categories Ceramic & Stone $ 3,631,142 55,503 — — 3,686,645 Carpet & Resilient — 3,136,474 785,295 — 3,921,769 Laminate & Wood — 651,737 849,340 — 1,501,077 Other (1) — — 861,181 — 861,181 Total $ 3,631,142 3,843,714 2,495,816 — 9,970,672 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 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Restructuring, Acquisition Tran
Restructuring, Acquisition Transaction and Integration-Related Costs | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Acquisition Transaction and Integration-Related Costs | Restructuring, Acquisition Transaction 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, 2019 , 2018 and 2017 , respectively (in thousands): 2019 2018 2017 Cost of sales Restructuring costs $ 84,844 43,733 33,109 Acquisition integration-related costs 3,458 3,330 2,916 Restructuring and integration-related costs $ 88,302 47,063 36,025 Selling, general and administrative expenses Restructuring costs $ 5,497 15,259 3,976 Acquisition transaction-related costs 1,502 4,977 2,751 Acquisition integration-related costs 5,871 11,351 6,188 Restructuring, acquisition and integration-related costs $ 12,870 31,587 12,915 The restructuring activity for the years ended December 31, 2019 and 2018 , respectively is as follows (in thousands): Lease impairments Asset write-downs Severance Other restructuring costs Total 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 Provision - Global Ceramic segment — — 5,264 — 5,264 Provision - Flooring NA segment — 37,820 2,617 33,975 74,412 Provision - Flooring ROW segment — 3,936 4,615 2,099 10,650 Provision - Corporate — — 15 — 15 Cash payments (376 ) — (16,113 ) (19,165 ) (35,654 ) Non-cash items — (41,756 ) (142 ) (17,043 ) (58,941 ) Balance as of December 31, 2019 $ 21 — 4,122 116 4,259 The Company expects the remaining severance and other restructuring costs to be paid over the next year. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables December 31, December 31, Customers, trade $ 1,491,592 1,562,284 Income tax receivable 8,428 17,217 Other 88,520 101,376 1,588,540 1,680,877 Less allowance for discounts, returns, claims and doubtful accounts 61,921 74,718 Receivables, net $ 1,526,619 1,606,159 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 2017 $ 78,335 6,510 308,507 307,249 86,103 2018 86,103 4,240 317,716 333,341 74,718 2019 74,718 382 387,253 400,432 61,921 (1) Represents charge-offs, net of recoveries. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories are as follows: December 31, December 31, Finished goods $ 1,610,742 1,582,112 Work in process 144,639 165,616 Raw materials 526,947 539,887 Total inventories $ 2,282,328 2,287,615 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 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, 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 Goodwill recognized during the year 13,197 — 49,619 62,816 Currency translation during the year 5,392 — (19,147 ) (13,755 ) Balances as of December 31, 2019 Goodwill 1,583,576 874,198 1,439,678 3,897,452 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) $ 1,051,646 531,144 987,237 2,570,027 Intangible assets: Tradenames Indefinite life assets not subject to amortization: Balance as of December 31, 2017 $ 644,208 Intangible assets acquired during the year 91,782 Currency translation during the year (28,610 ) Balance as of December 31, 2018 707,380 Intangible assets acquired during the year (1) (874 ) Currency translation during the year (3,774 ) Balance as of December 31, 2019 $ 702,732 (1) Includes adjustments on previously acquired intangible assets. Customer relationships Patents Other Total Intangible assets subject to amortization: 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 Intangible assets acquired during the year 2,092 — — 2,092 Amortization during the year (25,527 ) (2,156 ) 70 (27,613 ) Currency translation during the year (2,752 ) (111 ) 101 (2,762 ) Balances as of December 31, 2019 $ 218,441 2,228 5,478 226,147 December 31, 2019 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 651,014 2,092 (7,900 ) 426,765 218,441 Patents 254,483 — (5,383 ) 246,872 2,228 Other 6,534 — 97 1,153 5,478 Total $ 912,031 2,092 (13,186 ) 674,790 226,147 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 Years Ended December 31, 2019 2018 2017 Amortization expense $ 27,613 30,745 34,279 Estimated amortization expense for the years ending December 31 are as follows: 2020 $ 27,847 2021 27,846 2022 25,866 2023 24,234 2024 23,511 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 469,837 407,780 Buildings and improvements 1,790,781 1,584,240 Machinery and equipment 5,602,474 5,334,060 Furniture and fixtures 163,017 230,644 Leasehold improvements 103,755 94,683 Construction in progress 366,144 575,667 8,496,008 8,227,074 Less accumulated depreciation and amortization 3,797,091 3,527,172 Net property, plant and equipment $ 4,698,917 4,699,902 Additions to property, plant and equipment included capitalized interest of $7,214 , $10,684 and $8,543 in 2019 , 2018 and 2017 , respectively. Depreciation expense was $544,733 , $487,411 and $408,646 for 2019 , 2018 and 2017 , respectively. Included in property, plant and equipment are finance leases with a cost of $35,271 and $7,106 and accumulated depreciation of $5,664 and $2,333 as of December 31, 2019 and 2018 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Senior Credit Facility On October 18, 2019, the Company amended and restated its $1,800,000 senior credit facility, extending the maturity from March 26, 2022 to October 18, 2024 (as amended and restated, the “Senior Credit Facility”). The Senior Credit Facility marginally reduced the commitment fee and modified certain negative covenants to provide the Company with additional flexibility, including flexibility to make acquisitions and incur additional indebtedness. The amendment also renewed the Company’s option to extend the maturity of the Senior Credit Facility up to two times for an additional one-year period each. At the Company’s election, revolving loans under the 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, 2019 ), 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 Senior Credit Facility) rate plus 1.0% , plus an applicable margin ranging between 0.00% and 0.75% ( 0.125% as of December 31, 2019 ). The Company also pays a commitment fee to the lenders under the Senior Credit Facility on the average amount by which the aggregate commitments of the lenders exceed utilization of the Senior Credit Facility ranging from 0.09% to 0.20% per annum ( 0.11% as of December 31, 2019 ). 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 Senior Credit Facility are unsecured. The 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. However, at the Company’s election upon the occurrence of certain material acquisitions, a step up of the maximum permitted Consolidated Net Leverage Ratio to 4.00 to 1.00 for the four (4) fiscal quarter period of the Company commencing with the fiscal quarter during which said acquisition(s) closes. The Senior Credit Facility also contains customary representations and warranties and events of default, subject to customary grace periods. In 2019, the Company paid financing costs of $2,264 in connection with the amendment and restatement of its Senior Credit Facility. These costs were deferred and, along with previously unamortized costs of $3,405 are being amortized over the term of the Senior Credit Facility. As of December 31, 2019 , amounts utilized under the Senior Credit Facility included $16,803 of borrowings and $22,787 of standby letters of credit related to various insurance contracts and foreign vendor commitments. The outstanding borrowings of $693,946 under the Company’s U.S. and European commercial paper programs as of December 31, 2019 reduce the availability of the Senior Credit Facility. Including commercial paper borrowings, the Company has utilized $733,536 under the Senior Credit Facility resulting in a total of $1,066,464 available as of December 31, 2019 . 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 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 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, 2019 , there was $317,000 outstanding under the U.S. commercial paper program, and the euro equivalent of $376,946 under the European program. The weighted-average interest rate and maturity period for the U.S. program were 2.03% and 21 days, respectively. The weighted-average interest rate and maturity period for the European program were (0.24)% and 24.5 days, respectively. Senior Notes On September 4, 2019 , Mohawk Finance completed the issuance and sale of €300,000 aggregate principal amount of its Floating Rate Notes due September 4, 2021 (“2021 Floating Rate Notes”). The 2021 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 2021 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 0.2% (but in no event shall the interest rate be less than zero). Interest on the 2021 Floating Rate Notes is payable quarterly on December 4 , March 4 , June 4 , and September 4 of each year. Mohawk Finance received an issuance premium of €744 and paid financing cost of $754 in connection with the 2021 Floating Rate Notes. The issuance premium and financing costs have been deferred and are being amortized over the term of the 2021 Floating Rate Notes. On May 18, 2018 , Mohawk Finance 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 ranked pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 2019 Floating Rate Notes were fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. These notes bore interest at a rate per annum, reset quarterly, equal to three-month EURIBOR plus 0.3% (but in no event would the interest rate be less than zero). Interest on the 2019 Floating Rate Notes was 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 amortized over the term of the 2019 Floating Rate Notes. On September 11, 2019, the Company paid the remaining €300,000 outstanding principal of the 2019 Floating Rate Notes utilizing cash on hand and borrowings under its European commercial paper program. 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. 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: At December 31, 2019 At December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value 3.85% senior notes, payable February 1, 2023; interest payable semiannually $ 627,144 600,000 599,904 600,000 2.00% senior notes, payable January 14, 2022; interest payable annually 580,235 560,099 587,487 572,148 Floating Rate Notes, payable May 18, 2020, interest payable quarterly 336,066 336,059 343,004 343,289 Floating Rate Notes, payable September 11, 2019, interest payable quarterly — — 343,560 343,289 Floating rate notes, payable September 4, 2021, interest payable quarterly 335,965 336,059 — — U.S. commercial paper 317,000 317,000 632,668 632,668 European commercial paper 376,946 376,946 707,175 707,175 Five-year senior unsecured credit facility, due October 18, 2024 16,803 16,803 57,896 57,896 Finance leases and other 30,049 30,049 6,664 6,664 Unamortized debt issuance costs (3,129 ) (3,129 ) (5,155 ) (5,155 ) Total debt 2,617,079 2,569,886 3,273,203 3,257,974 Less current portion of long-term debt and commercial paper 1,051,498 1,051,498 1,742,373 1,742,373 Long-term debt, less current portion $ 1,565,581 1,518,388 1,530,830 1,515,601 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, 2019 are as follows (1) : 2020 $ 1,051,643 2021 340,555 2022 564,339 2023 603,770 2024 2,635 Thereafter 10,073 $ 2,573,015 (1) |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are as follows: December 31, 2019 December 31, 2018 Outstanding checks in excess of cash $ 9,924 14,624 Accounts payable, trade 824,956 811,879 Accrued expenses 461,035 430,431 Product warranties 49,184 47,511 Accrued interest 21,050 21,908 Accrued compensation and benefits 192,991 197,513 Total accounts payable and accrued expenses $ 1,559,140 1,523,866 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019 the Company adopted ASC 842, which requires recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet, based on the present value of the future minimum rental payments for existing operating leases. The Company adopted the provisions of ASC 842 on January 1, 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. ASC 842 provides a number of optional practical expedients in transition. The Company elected 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 did not elect the use-of-hindsight and elected the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting for leases. The Company elected 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 elected the practical expedient to not separate lease and non-lease components for a majority of its asset classes, including real estate and most equipment. The Company measures the ROU assets and liabilities based on the present value of the future minimum lease payments over the lease term at the commencement date. Minimum lease payments include the fixed lease and non-lease components of the agreement, as well as any variable rent payments that depend on an index, initially measured using the index at the lease commencement date. The ROU assets are adjusted for any initial direct costs incurred less any lease incentives received, in addition to payments made on or before the commencement date of the lease. The Company recognizes lease expense for leases on a straight-line basis over the lease term. As the implicit rate is not readily determinable for most of the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company’s credit spread adjusted for current market factors and foreign currency rates. The Company also made a policy election to determine its incremental borrowing rate, at the initial application date, using the total lease term and the total minimum rental payments, as the Company believes this rate is more indicative of the implied financing cost. The Company determines if a contract is or contains a lease at inception. The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company enters into lease contracts ranging from 1 to 60 years with a majority of the Company’s lease terms ranging from 1 to 8 years . Some leases include one or more options to renew, with renewal terms that can extend the lease term from 3 to 10 years or more. The exercise of these lease renewal options is at the Company’s sole discretion. An insignificant number of the Company’s leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of the Company’s leases contain residual value guarantees and none of the Company’s agreements contain material restrictive covenants. Variable rent expenses consist primarily of maintenance, property taxes and charges based on usage. The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists mainly of operating leases. The components of lease costs are as follows: Twelve Months Ended December 31, 2019 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 30,002 97,988 127,990 Short-term 9,725 13,933 23,658 Variable 8,123 29,852 37,975 Sub-leases (311 ) (537 ) (848 ) $ 47,539 141,236 188,775 Twelve Months Ended December 31, 2019 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 4,015 — 4,015 Interest on lease liabilities — 491 491 $ 4,015 491 4,506 Net lease costs 193,281 Supplemental balance sheet information related to leases is as follows: Classification At December 31, 2019 Assets Operating Leases Right of use operating lease assets Right of use operating lease assets $ 323,003 Finance Leases Property, plant and equipment, gross Property, plant and equipment 35,271 Accumulated depreciation Accumulated depreciation (5,664 ) Property, plant and equipment, net Property, plant and equipment, net 29,607 Total lease assets $ 352,610 Liabilities Operating Leases Other current Current operating lease liabilities $ 101,945 Non-current Non-current operating lease liabilities 228,155 Total operating liabilities 330,100 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 4,835 Long-term debt Long-term debt, less current portion 25,214 Total finance liabilities 30,049 Total lease liabilities $ 360,149 Maturities of lease liabilities are as follows: As of December 31, 2019 Year ending December 31, Finance Leases Operating Leases Total 2020 $ 5,355 119,745 125,100 2021 4,955 94,169 99,124 2022 4,612 66,090 70,702 2023 4,077 36,965 41,042 2024 2,894 20,118 23,012 Thereafter 10,884 26,105 36,989 Total lease payments 32,777 363,192 395,969 Less imputed interest 2,728 33,092 Present value, Total $ 30,049 330,100 As of December 31, 2018 Year ending December 31, Finance Leases Operating Leases Total 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 The Company had approximately $13,932 of leases that commenced after December 31, 2019 that created rights and obligations to the Company. These leases are not included in the above maturity schedule. Lease term and discount rate are as follows: At December 31, 2019 Weighted Average Remaining Lease Term Operating Leases 4.27 Finance Leases 8.44 Weighted Average Discount Rate Operating Leases 3.3 % Finance Leases 1.4 % Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 127,213 Operating cash flows from finance leases 349 Financing cash flows from finance leases 3,975 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 133,959 Finance Leases 20,464 Amortization: Amortization of Right of use operating lease assets (1) 109,884 (1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Condensed Consolidated Statements of Cash Flows. Rental expense under fixed operating leases was $127,990 , $143,513 and $145,176 in 2019 , 2018 and 2017 |
Leases | Leases Effective January 1, 2019 the Company adopted ASC 842, which requires recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet, based on the present value of the future minimum rental payments for existing operating leases. The Company adopted the provisions of ASC 842 on January 1, 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. ASC 842 provides a number of optional practical expedients in transition. The Company elected 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 did not elect the use-of-hindsight and elected the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting for leases. The Company elected 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 elected the practical expedient to not separate lease and non-lease components for a majority of its asset classes, including real estate and most equipment. The Company measures the ROU assets and liabilities based on the present value of the future minimum lease payments over the lease term at the commencement date. Minimum lease payments include the fixed lease and non-lease components of the agreement, as well as any variable rent payments that depend on an index, initially measured using the index at the lease commencement date. The ROU assets are adjusted for any initial direct costs incurred less any lease incentives received, in addition to payments made on or before the commencement date of the lease. The Company recognizes lease expense for leases on a straight-line basis over the lease term. As the implicit rate is not readily determinable for most of the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company’s credit spread adjusted for current market factors and foreign currency rates. The Company also made a policy election to determine its incremental borrowing rate, at the initial application date, using the total lease term and the total minimum rental payments, as the Company believes this rate is more indicative of the implied financing cost. The Company determines if a contract is or contains a lease at inception. The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company enters into lease contracts ranging from 1 to 60 years with a majority of the Company’s lease terms ranging from 1 to 8 years . Some leases include one or more options to renew, with renewal terms that can extend the lease term from 3 to 10 years or more. The exercise of these lease renewal options is at the Company’s sole discretion. An insignificant number of the Company’s leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Certain of the Company’s leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of the Company’s leases contain residual value guarantees and none of the Company’s agreements contain material restrictive covenants. Variable rent expenses consist primarily of maintenance, property taxes and charges based on usage. The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists mainly of operating leases. The components of lease costs are as follows: Twelve Months Ended December 31, 2019 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 30,002 97,988 127,990 Short-term 9,725 13,933 23,658 Variable 8,123 29,852 37,975 Sub-leases (311 ) (537 ) (848 ) $ 47,539 141,236 188,775 Twelve Months Ended December 31, 2019 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 4,015 — 4,015 Interest on lease liabilities — 491 491 $ 4,015 491 4,506 Net lease costs 193,281 Supplemental balance sheet information related to leases is as follows: Classification At December 31, 2019 Assets Operating Leases Right of use operating lease assets Right of use operating lease assets $ 323,003 Finance Leases Property, plant and equipment, gross Property, plant and equipment 35,271 Accumulated depreciation Accumulated depreciation (5,664 ) Property, plant and equipment, net Property, plant and equipment, net 29,607 Total lease assets $ 352,610 Liabilities Operating Leases Other current Current operating lease liabilities $ 101,945 Non-current Non-current operating lease liabilities 228,155 Total operating liabilities 330,100 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 4,835 Long-term debt Long-term debt, less current portion 25,214 Total finance liabilities 30,049 Total lease liabilities $ 360,149 Maturities of lease liabilities are as follows: As of December 31, 2019 Year ending December 31, Finance Leases Operating Leases Total 2020 $ 5,355 119,745 125,100 2021 4,955 94,169 99,124 2022 4,612 66,090 70,702 2023 4,077 36,965 41,042 2024 2,894 20,118 23,012 Thereafter 10,884 26,105 36,989 Total lease payments 32,777 363,192 395,969 Less imputed interest 2,728 33,092 Present value, Total $ 30,049 330,100 As of December 31, 2018 Year ending December 31, Finance Leases Operating Leases Total 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 The Company had approximately $13,932 of leases that commenced after December 31, 2019 that created rights and obligations to the Company. These leases are not included in the above maturity schedule. Lease term and discount rate are as follows: At December 31, 2019 Weighted Average Remaining Lease Term Operating Leases 4.27 Finance Leases 8.44 Weighted Average Discount Rate Operating Leases 3.3 % Finance Leases 1.4 % Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 127,213 Operating cash flows from finance leases 349 Financing cash flows from finance leases 3,975 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 133,959 Finance Leases 20,464 Amortization: Amortization of Right of use operating lease assets (1) 109,884 (1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Condensed Consolidated Statements of Cash Flows. Rental expense under fixed operating leases was $127,990 , $143,513 and $145,176 in 2019 , 2018 and 2017 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted for the years ended December 31, 2019 , 2018 and 2017 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: 2019 2018 2017 Options outstanding at beginning of year 63 63 91 Options exercised — — (28 ) Options forfeited and expired — — — Options outstanding at end of year 63 63 63 Options exercisable at end of year 63 63 63 Option prices per share: Options exercised during the year $ — — 57.34-66.14 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 A summary of the Company’s options under it’s long-term incentive plans as of December 31, 2019 , 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, 2018 63 $ 62.86 Granted — — Exercised — — Forfeited and expired — — Options outstanding, December 31, 2019 63 $ 62.86 1.8 $ 4,640 Vested and expected to vest as of December 31, 2019 63 $ 62.86 1.8 $ 4,640 Exercisable as of December 31, 2019 63 $ 62.86 1.8 $ 4,640 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, 2019 , 2018 , and 2017 was $0 , $0 and $5,005 , respectively. Total compensation expense recognized for the years ended December 31, 2019 , 2018 and 2017 was $0 ( $0 , net of tax), $0 ( $0 , net of tax) and $ 6 ($ 4 , 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, 2019 was $0 . The following table summarizes information about the Company’s stock options outstanding as of December 31, 2019 : Outstanding Exercisable Exercise price range Number of shares Average life Average price Number of shares Average price $57.34-$57.34 23 1.15 57.34 23 57.34 $66.14-$66.14 40 2.14 66.14 40 66.14 Total 63 1.77 $ 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, 2019 , 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, 2018 446 $ 166.56 Granted 187 137.30 Released (230 ) 152.00 Forfeited (41 ) 189.23 Restricted Stock Units outstanding, December 31, 2019 362 $ 158.13 1.3 $ 48,914 Expected to vest as of December 31, 2019 356 1.3 $ 48,060 The Company recognized stock-based compensation costs related to the issuance of RSUs of $23,620 ( $17,479 , net of taxes), $31,382 ( $24,436 , net of taxes) and $36,316 ($ 22,037 , net of taxes) for the years ended December 31, 2019 , 2018 and 2017 , 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 $20,598 as of December 31, 2019 , and will be recognized as expense over a weighted-average period of approximately 1.67 years. Additional information relating to the Company’s RSUs under the Company’s long-term incentive plans are as follows: 2019 2018 2017 Restricted Stock Units outstanding, January 1 446 555 695 Granted 187 136 154 Released (230 ) (235 ) (284 ) Forfeited (41 ) (10 ) (10 ) Restricted Stock Units outstanding, December 31 362 446 555 Expected to vest as of December 31 356 440 546 During 2019 , 2018 and 2017 , a total of 1 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Expense (Income) | Other Expense (Income) Following is a summary of other expense (income): 2019 2018 2017 Foreign currency losses (7,190 ) 9,613 8,395 Release of indemnification asset (304 ) 4,606 4,459 Impairment of net investment in a manufacturer and distributor of Ceramic tile in China (1) 59,906 — — All other, net (16,005 ) (6,921 ) (7,649 ) Total other expense (income) $ 36,407 7,298 5,205 (1) During 2019, the Company determined that its net investment in a manufacturer and distributor of ceramic tile in China was impaired and therefore recorded a net impairment charge of $59,906 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Following is a summary of earnings before income taxes for United States and foreign operations: 2019 2018 2017 United States $ 163,764 387,564 754,562 Foreign 585,781 661,637 563,295 Earnings before income taxes $ 749,545 1,049,201 1,317,857 Income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 consists of the following: 2019 2018 2017 Current income taxes: U.S. federal $ 19,936 22,700 327,697 State and local 12,659 14,521 17,811 Foreign 80,221 58,669 73,248 Total current 112,816 95,890 418,756 Deferred income taxes: U.S. federal 11,993 54,983 (17,419 ) State and local 15,371 19,076 (3,046 ) Foreign (135,206 ) 14,397 (55,126 ) Total deferred (107,842 ) 88,456 (75,591 ) Total $ 4,974 184,346 343,165 The geographic dispersion of earnings and losses contributes to the annual changes in the Company’s effective tax rates. Approximately 22% 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, 2019 , 2018 and 2017 were 36.6% , 28.7% , and 43.1% , respectively, and its non-U.S. effective tax rates for the years ended December 31, 2019 , 2018 and 2017 were (9.4)% , 11.0% , and 3.2% , 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: 2019 2018 2017 Income taxes at statutory rate $ 157,404 220,332 461,250 State and local income taxes, net of federal income tax benefit 22,185 22,315 10,133 Foreign income taxes (a) (17,276 ) (39,915 ) (113,520 ) Change in valuation allowance (21,975 ) 2,472 10,008 European Restructuring (b) (136,194 ) — — Manufacturing deduction — — (11,911 ) 2017 revaluation of deferred tax assets and liabilities (c) — — (150,546 ) Transition Tax — 28,201 105,165 Transition tax planning initiatives — (18,706 ) 14,825 Tax contingencies and audit settlements, net 6,686 (31,874 ) 23,097 Other, net (5,856 ) 1,521 (5,336 ) $ 4,974 184,346 343,165 (a) Foreign income taxes include 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) The Company implemented select operational, administrative and financial restructurings that centralized certain business processes and intangible assets in various European jurisdictions into a new entity. The European Restructuring resulted in a current income tax liability of $148,240 , calculated in part by measuring the fair value of intangible assets transferred. The Company offset the income tax liability with the utilization of $148,240 of deferred tax assets from accumulated net operating loss carry forwards. The European Restructuring also resulted in the Company recording a $136,194 deferred tax asset, and a corresponding deferred tax benefit, related to the tax basis of the intangible assets in the new entity. (c) 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, 2019 and 2018 are presented below: 2019 2018 Deferred tax assets: Accounts receivable $ 7,063 8,312 Inventories 50,585 47,212 Employee benefits 36,068 37,335 Accrued expenses and other 67,638 71,621 Deductible state tax and interest benefit 3,665 2,904 Intangibles 146,953 16,134 Lease liabilities 86,717 — Federal, foreign and state net operating losses and credits 376,375 575,625 Gross deferred tax assets 775,064 759,143 Valuation allowance (232,196 ) (347,786 ) Net deferred tax assets 542,868 411,357 Deferred tax liabilities: Inventories (12,885 ) (18,332 ) Plant and equipment (510,952 ) (477,734 ) Intangibles (182,424 ) (181,436 ) Right of use assets (83,271 ) — Other liabilities (24,220 ) (96,134 ) Gross deferred tax liabilities (813,752 ) (773,636 ) Net deferred tax liability $ (270,884 ) (362,279 ) 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, 2019 , and 2018 is $232,196 and $347,786 , respectively. The valuation allowance as of December 31, 2019 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 2019 valuation allowance was a decrease of $115,590 which includes $148,240 related to the tax liability resulting from the European Restructuring, with remaining $32,650 related to tax rate changes, foreign currency translation, and other activities. The total change in the 2018 valuation allowance was a decrease of $15,177 , which includes $15,357 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, 2019 , the Company has state net operating loss carry forwards and state tax credits with potential tax benefits of $51,175 , net of federal income tax benefit; these carry forwards expire over various periods based on taxing jurisdiction. A valuation allowance totaling $31,349 has been recorded against these state deferred tax assets as of December 31, 2019 . In addition, as of December 31, 2019 , the Company has credits and net operating loss carry forwards in various foreign jurisdictions with potential tax benefits of $1,549,745 . A valuation allowance totaling $200,847 has been recorded against these deferred tax assets as of December 31, 2019 . In 2018 the Company redeemed 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. As a result of the redemption, the Company recorded an ASC 740-10 liability of $1,224,545 for the full tax effected loss 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. 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. The TCJA imposed U.S. tax on all post-1986 foreign unrepatriated earnings accumulated through 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 of December 31, 2019, the Company has accrued an additional $6,000 of income tax expense on additional foreign earnings of approximately $177,000 . 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, Company continues to assert that earnings of its foreign subsidiaries are permanently reinvested. 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, 2019 , the Company’s gross amount of unrecognized tax benefits is $1,260,970 , excluding interest and penalties. If the Company were to prevail on all uncertain tax positions, $29,420 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: 2019 2018 Balance as of January 1 $ 1,330,713 65,631 Additions based on tax positions related to the current year (a) 2,302 1,304,447 Additions for tax positions of acquired companies 2,094 1,413 Additions for tax positions of prior years 4,744 5,098 Transition tax planning initiatives — (27,470 ) Reductions resulting from the lapse of the statute of limitations (2,729 ) (8,110 ) Reductions due to Luxembourg tax rate change (46,841 ) — Settlements with taxing authorities (1,929 ) (9,773 ) Effects of foreign currency translation (27,384 ) (523 ) Balance as of December 31 $ 1,260,970 1,330,713 (a) 2018 includes tax effected loss of $1,298,737 on Luxembourg hybrid instruments redemptions. The tax effected loss was adjusted for tax rate and foreign currency translation changes in 2019, resulting in an updated balance of $1,224,545 as of December 31, 2019. This $1,224,545 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, 2019 and 2018 , the Company has $12,555 and $7,184 , 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, 2019 , 2018 and 2017 , the Company accrued interest and penalties through the consolidated statements of operations of $5,368 , $(1,085) and $165 , respectively. The Company believes that its unrecognized tax benefits could decrease by $6,772 within the next twelve months. The Internal Revenue Service has completed its audit of the Company’s 2014 & 2015 tax years, therefore Federal income tax matters related to years prior to 2016 has been effectively settled. 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 amounts 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. On September 17, 2019, the Company pled its case to the Ghent Court of Special (Tax) Appeals and on October 1, 2019, the Court ruled in favor of the Company, re-confirming the rulings of the Court of First Appeals in Bruges with respect to the calendar years ending December 31, 2005 and December 31, 2009. In March 2019, the Company received assessments from the Belgian tax authority for tax years 2011 through 2017 in the amount of € 40,617 , € 39,732 , € 11,358 , € 23,919 , € 30,610 , € 93,145 and € 79,933 respectively, including penalties, but excluding interest. The Company intends to file formal protests based on these assessments in a timely manner. The assessments are largely based on the same facts underlying the positive rulings, which the Belgian tax authority may appeal. In January 2020, the Belgian tax authority set aside its tax assessments for the years 2011 through 2017, inclusively. These assessments were still in the administrative phase of the audit. At this time, the Company is uncertain what the Belgian tax authority intends to do with these years, if anything. 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company had approximately $22,787 and $54,591 in standby letters of credit for various insurance contracts and commitments to foreign vendors as of December 31, 2019 and 2018 , 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 14, 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. Perfluorinated Compounds (“PFCs”) 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 PFCs, including the Company. In May 2017, the Water Works and Sewer Board of the Town of Centre, Alabama (the “Centre Water Board”) filed a similar complaint in the Circuit Court of Cherokee County, Alabama. The Gadsden Water Board and the Centre Water Board both seek monetary damages and injunctive relief claiming that their water supplies contain excessive amounts of PFCs. Certain defendants, including the Company, filed dispositive motions in each case arguing that the Alabama state courts lack personal jurisdiction over them. These motions were denied. 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. The Alabama Supreme Court denied the petitions on December 20, 2019. Certain defendants, including the Company, filed an Application for Rehearing with the Alabama Supreme Court asking the Court to reconsider its December 2019 decision. In December 2019, the City of Rome, Georgia (“Rome”) filed a complaint in the Superior Court of Floyd County, Georgia that is similar to the Gadsden Water Board and Centre Water Board complaints, again seeking monetary damages and injunctive relief related to PFCs. Also in December 2019, Jarrod Johnson filed a putative class action in the Superior Court of Floyd County, Georgia purporting to represent all water subscribers with the Rome (Georgia) Water and Sewer Division and/or the Floyd County (Georgia) Water Department and seeking to recover, among other things, damages in the form of alleged increased rates and surcharges incurred by ratepayers for the costs associated with eliminating certain PFCs from their drinking water. In January 2020, defendant 3M Company removed the class action to federal court. The Company denies all liability in these matters and intends to defend them vigorously. Putative Securities Class Action The Company and certain of its present and former executive officers were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Northern District of Georgia. The complaint alleges that defendants violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The complaint is filed on behalf of shareholders who purchased shares of the Company’s common stock between April 28, 2017 and July 25, 2019. The Company believes the claims are frivolous and intends to defend them vigorously. Delaware State Court Action The Company and certain of its present and former executive officers were named as defendants in a putative state securities class action lawsuit filed in the Superior Court of the State of Delaware on January 30, 2020. The complaint alleges that defendants violated Sections 11 and 12 of the Securities Act of 1933. The complaint is filed on behalf of shareholders who purchased shares of the Company’s common stock in Mohawk Industries Retirement Plan 1 and Mohawk Industries Retirement Plan 2 between April 27, 2017 and July 25, 2019. The Company believes the claims are frivolous and intends to defend them vigorously. 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. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Information | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 Net cash paid (received) during the years for: Interest $ 45,241 46,186 33,952 Income taxes $ 123,974 196,193 373,900 Supplemental schedule of non-cash investing and financing activities: Additions to property, plant and equipment $ 6,387 (4,672 ) 30,643 Fair value of net assets acquired in acquisition $ 107,290 831,760 369,956 Liabilities assumed in acquisition (31,053 ) (257,515 ) (119,157 ) $ 76,237 574,245 250,799 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
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 resilient (includes sheet vinyl and 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, 2019 , 2018 or 2017 . Segment information is as follows: 2019 2018 2017 Assets: Global Ceramic $ 5,419,896 5,194,030 4,838,310 Flooring NA 3,823,654 3,938,639 3,702,137 Flooring ROW 3,925,246 3,666,617 3,245,424 Corporate and intersegment eliminations 217,884 299,837 308,982 Total $ 13,386,680 13,099,123 12,094,853 Geographic net sales: United States $ 5,822,593 6,103,789 6,035,200 Europe 2,532,239 2,582,692 2,363,069 Russia 385,395 349,220 326,075 Other 1,230,445 947,933 766,946 Total $ 9,970,672 9,983,634 9,491,290 Long-lived assets: (1) United States $ 3,391,676 3,485,046 3,339,363 Belgium 1,645,104 1,663,470 1,705,947 Other 2,232,164 2,072,353 1,696,939 Total $ 7,268,944 7,220,869 6,742,249 Net sales by product categories: Ceramic & Stone $ 3,686,645 3,621,193 3,485,245 Carpet & Resilient 3,921,769 3,903,698 3,655,902 Laminate & Wood 1,501,077 1,553,032 1,519,417 Other (2) 861,181 905,711 830,726 Total $ 9,970,672 9,983,634 9,491,290 Net sales: Global Ceramic $ 3,631,142 3,552,856 3,405,100 Flooring NA 3,843,714 4,029,148 4,010,858 Flooring ROW 2,495,816 2,401,630 2,075,452 Intersegment sales — — (120 ) Total $ 9,970,672 9,983,634 9,491,290 (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. 2019 2018 2017 Operating income: Global Ceramic $ 340,058 442,898 525,401 Flooring NA 167,385 347,937 540,337 Flooring ROW 359,428 345,801 329,054 Corporate and intersegment eliminations (39,647 ) (41,310 ) (40,619 ) Total $ 827,224 1,095,326 1,354,173 Depreciation and amortization: Global Ceramic $ 211,679 189,904 161,913 Flooring NA 204,689 184,455 159,980 Flooring ROW 145,417 135,350 114,794 Corporate 14,667 12,056 9,985 Total $ 576,452 521,765 446,672 Capital expenditures (excluding acquisitions): Global Ceramic $ 244,026 281,125 310,650 Flooring NA 148,820 262,676 355,941 Flooring ROW 147,118 232,949 221,763 Corporate 5,498 17,360 17,644 Total $ 545,462 794,110 905,998 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The supplemental quarterly financial data are as follows: Quarters Ended March 30, June 29, September 28, December 31, Net sales $ 2,442,490 2,584,485 2,519,185 2,424,512 Gross profit 624,927 736,618 691,691 622,807 Net earnings 121,585 202,441 155,518 264,667 Basic earnings per share 1.68 2.80 2.16 3.69 Diluted earnings per share 1.67 2.79 2.15 3.68 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 704,692 766,555 720,433 646,390 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
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 sheet 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 15 - 40 years for buildings and improvements, 3 - 25 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 indefinite lived intangible assets may be completed through an 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 assessment indicates it is not more likely than not that the fair value of these assets is less than their carrying amounts, a quantitative impairment test is not required. If a quantitative test is necessary, the Company estimates the fair value of the intangible asset and compares it to its carrying amount. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company may also elect to bypass the qualitative assessment and perform a quantitative impairment test in any period. If the Company elects to perform a quantitative impairment test, it may resume the qualitative assessment in subsequent periods. 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, applicable discount rate 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. 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 | 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. Advertising Costs and Vendor ConsiderationAdvertising and promotion expenses are charged to earnings during the period in which they are incurred. |
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 |
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, 2019 , December 31, 2018 and December 31, 2017 the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $12,049 ( $9,153 net of taxes), a decrease of $27,948 ( $20,376 net of taxes) and an increase of $74,112 ( $46,320 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 2019 , 2018 and 2017 |
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 60 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 $57,354 and $23,008 in 2019 , $55,796 and $22,689 in 2018 and $53,544 and $22,039 in 2017 , respectively. |
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 $ 42,500 and $ 53,000 in the Company’s commercial paper as of December 31, 2019 and 2018 |
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 June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and in November 2018 issued ASU 2018-19, which amended the standard. The standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. This standard is effective for the Company on January 1, 2020. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Currently, the Company is assessing the impact of the new guidance. The Company does not expect the adoption of the guidance to have a significant impact on its financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes which simplified the accounting for income taxes in several areas by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes. The amendment is effective commencing in 2021 with early adoption permitted. The Company is currently evaluating the impact that the adoption of this accounting standards update will have on its consolidated financial statements. - Recently Adopted In January 2017, the FASB 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. The effect of adopting the new standard was not material. In February 2016, the FASB issued a new standard ASU 2016-02, Leases , and subsequently issued additional ASUs amending this ASU (collectively ASC 842, Leases ). ASC 842 was issued to increase transparency and comparability among organizations by requiring the recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted the provisions of ASC 842 on January 1, 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. ASC 842 provides a number of optional practical expedients in transition. The Company elected 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 did not elect the use-of-hindsight and elected the practical expedient pertaining to land easements. The new standard also provides practical expedients for an entity’s ongoing accounting for leases. The Company elected 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 elected the practical expedient to not separate lease and non-lease components for a majority of its asset classes, including real estate and most equipment. The adoption of ASC 842 had a material impact on the Company’s condensed consolidated balance sheets, but did not have a material impact on the Company’s condensed consolidated statements of operations or cashflow. The most significant impact was the recognition of ROU assets of $328,169 and lease liabilities for operating leases of $332,286 at January 1, 2019, based on the present value of the future minimum rental payments for existing operating leases. The difference in the balances is due to deferred rent, tenant incentive allowances and prepaid amounts taken into account for adoption. The Company’s accounting for finance leases remained substantially unchanged. See Note 11, Leases. On January 1, 2019, the Company adopted the new accounting standard, ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. The effect of adopting the new standard was not material. 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. 2017 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): Classification of Certain Cash Receipts and Cash Payments. 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, 2019 | |
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: 2019 2018 2017 Earnings attributable to Mohawk Industries, Inc. $ 744,211 861,704 971,638 Accretion of redeemable noncontrolling interest (a) — (3,892 ) (46 ) Net earnings available to common stockholders $ 744,211 857,812 971,592 Weighted-average common shares outstanding-basic and diluted: Weighted-average common shares outstanding - basic 71,986 74,413 74,357 Add weighted-average dilutive potential common shares - options and RSUs to purchase common shares, net 278 360 482 Weighted-average common shares outstanding-diluted 72,264 74,773 74,839 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 10.34 11.53 13.07 Diluted $ 10.30 11.47 12.98 (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, 2019 , 2018 and 2017 are as follows: Foreign currency translation adjustments Pensions and post-retirement benefits Total 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 loss — — — 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 — — — Balance as of December 31, 2018 (782,102 ) (9,506 ) (791,608 ) Current period other comprehensive income (loss) before reclassifications 28,994 (3,210 ) 25,784 Amounts reclassified from accumulated other comprehensive income (loss) — — — Balance as of December 31, 2019 $ (753,108 ) (12,716 ) (765,824 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 , respectively: December 31, 2019 Global Ceramic segment Flooring NA segment Flooring ROW segment Intersegment sales Total Geographical Markets United States $ 2,131,029 3,688,691 2,873 — 5,822,593 Europe 711,762 6,922 1,813,555 — 2,532,239 Russia 269,142 66 116,187 — 385,395 Other 519,209 148,035 563,201 — 1,230,445 Total $ 3,631,142 3,843,714 2,495,816 — 9,970,672 Product Categories Ceramic & Stone $ 3,631,142 55,503 — — 3,686,645 Carpet & Resilient — 3,136,474 785,295 — 3,921,769 Laminate & Wood — 651,737 849,340 — 1,501,077 Other (1) — — 861,181 — 861,181 Total $ 3,631,142 3,843,714 2,495,816 — 9,970,672 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 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Restructuring, Acquisition Tr_2
Restructuring, Acquisition Transaction and Integration-Related Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 , respectively (in thousands): 2019 2018 2017 Cost of sales Restructuring costs $ 84,844 43,733 33,109 Acquisition integration-related costs 3,458 3,330 2,916 Restructuring and integration-related costs $ 88,302 47,063 36,025 Selling, general and administrative expenses Restructuring costs $ 5,497 15,259 3,976 Acquisition transaction-related costs 1,502 4,977 2,751 Acquisition integration-related costs 5,871 11,351 6,188 Restructuring, acquisition and integration-related costs $ 12,870 31,587 12,915 |
Schedule of Restructuring and Related Costs | The restructuring activity for the years ended December 31, 2019 and 2018 , respectively is as follows (in thousands): Lease impairments Asset write-downs Severance Other restructuring costs Total 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 Provision - Global Ceramic segment — — 5,264 — 5,264 Provision - Flooring NA segment — 37,820 2,617 33,975 74,412 Provision - Flooring ROW segment — 3,936 4,615 2,099 10,650 Provision - Corporate — — 15 — 15 Cash payments (376 ) — (16,113 ) (19,165 ) (35,654 ) Non-cash items — (41,756 ) (142 ) (17,043 ) (58,941 ) Balance as of December 31, 2019 $ 21 — 4,122 116 4,259 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Net Components Of Receivables | December 31, December 31, Customers, trade $ 1,491,592 1,562,284 Income tax receivable 8,428 17,217 Other 88,520 101,376 1,588,540 1,680,877 Less allowance for discounts, returns, claims and doubtful accounts 61,921 74,718 Receivables, net $ 1,526,619 1,606,159 |
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 2017 $ 78,335 6,510 308,507 307,249 86,103 2018 86,103 4,240 317,716 333,341 74,718 2019 74,718 382 387,253 400,432 61,921 (1) Represents charge-offs, net of recoveries. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Net components of inventories | The components of inventories are as follows: December 31, December 31, Finished goods $ 1,610,742 1,582,112 Work in process 144,639 165,616 Raw materials 526,947 539,887 Total inventories $ 2,282,328 2,287,615 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 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 Goodwill recognized during the year 13,197 — 49,619 62,816 Currency translation during the year 5,392 — (19,147 ) (13,755 ) Balances as of December 31, 2019 Goodwill 1,583,576 874,198 1,439,678 3,897,452 Accumulated impairments losses (531,930 ) (343,054 ) (452,441 ) (1,327,425 ) $ 1,051,646 531,144 987,237 2,570,027 |
Schedule of indefinite life assets not subject to amortization | Tradenames Indefinite life assets not subject to amortization: Balance as of December 31, 2017 $ 644,208 Intangible assets acquired during the year 91,782 Currency translation during the year (28,610 ) Balance as of December 31, 2018 707,380 Intangible assets acquired during the year (1) (874 ) Currency translation during the year (3,774 ) Balance as of December 31, 2019 $ 702,732 (1) Includes adjustments on previously acquired intangible assets. |
Schedule of intangible assets subject to amortization | Customer relationships Patents Other Total Intangible assets subject to amortization: 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 Intangible assets acquired during the year 2,092 — — 2,092 Amortization during the year (25,527 ) (2,156 ) 70 (27,613 ) Currency translation during the year (2,752 ) (111 ) 101 (2,762 ) Balances as of December 31, 2019 $ 218,441 2,228 5,478 226,147 December 31, 2019 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 651,014 2,092 (7,900 ) 426,765 218,441 Patents 254,483 — (5,383 ) 246,872 2,228 Other 6,534 — 97 1,153 5,478 Total $ 912,031 2,092 (13,186 ) 674,790 226,147 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 |
Schedule of intangible assets amortization expense | Years Ended December 31, 2019 2018 2017 Amortization expense $ 27,613 30,745 34,279 |
Schedule of expected amortization expense | Estimated amortization expense for the years ending December 31 are as follows: 2020 $ 27,847 2021 27,846 2022 25,866 2023 24,234 2024 23,511 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 469,837 407,780 Buildings and improvements 1,790,781 1,584,240 Machinery and equipment 5,602,474 5,334,060 Furniture and fixtures 163,017 230,644 Leasehold improvements 103,755 94,683 Construction in progress 366,144 575,667 8,496,008 8,227,074 Less accumulated depreciation and amortization 3,797,091 3,527,172 Net property, plant and equipment $ 4,698,917 4,699,902 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: At December 31, 2019 At December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value 3.85% senior notes, payable February 1, 2023; interest payable semiannually $ 627,144 600,000 599,904 600,000 2.00% senior notes, payable January 14, 2022; interest payable annually 580,235 560,099 587,487 572,148 Floating Rate Notes, payable May 18, 2020, interest payable quarterly 336,066 336,059 343,004 343,289 Floating Rate Notes, payable September 11, 2019, interest payable quarterly — — 343,560 343,289 Floating rate notes, payable September 4, 2021, interest payable quarterly 335,965 336,059 — — U.S. commercial paper 317,000 317,000 632,668 632,668 European commercial paper 376,946 376,946 707,175 707,175 Five-year senior unsecured credit facility, due October 18, 2024 16,803 16,803 57,896 57,896 Finance leases and other 30,049 30,049 6,664 6,664 Unamortized debt issuance costs (3,129 ) (3,129 ) (5,155 ) (5,155 ) Total debt 2,617,079 2,569,886 3,273,203 3,257,974 Less current portion of long-term debt and commercial paper 1,051,498 1,051,498 1,742,373 1,742,373 Long-term debt, less current portion $ 1,565,581 1,518,388 1,530,830 1,515,601 |
Schedule of maturities of long-term debt | The aggregate maturities of total debt as of December 31, 2019 are as follows (1) : 2020 $ 1,051,643 2021 340,555 2022 564,339 2023 603,770 2024 2,635 Thereafter 10,073 $ 2,573,015 (1) Debt maturity table excludes deferred loan costs. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of accounts payable and accrued expenses | Accounts payable and accrued expenses are as follows: December 31, 2019 December 31, 2018 Outstanding checks in excess of cash $ 9,924 14,624 Accounts payable, trade 824,956 811,879 Accrued expenses 461,035 430,431 Product warranties 49,184 47,511 Accrued interest 21,050 21,908 Accrued compensation and benefits 192,991 197,513 Total accounts payable and accrued expenses $ 1,559,140 1,523,866 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: Classification At December 31, 2019 Assets Operating Leases Right of use operating lease assets Right of use operating lease assets $ 323,003 Finance Leases Property, plant and equipment, gross Property, plant and equipment 35,271 Accumulated depreciation Accumulated depreciation (5,664 ) Property, plant and equipment, net Property, plant and equipment, net 29,607 Total lease assets $ 352,610 Liabilities Operating Leases Other current Current operating lease liabilities $ 101,945 Non-current Non-current operating lease liabilities 228,155 Total operating liabilities 330,100 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 4,835 Long-term debt Long-term debt, less current portion 25,214 Total finance liabilities 30,049 Total lease liabilities $ 360,149 |
Maturity of Operating Lease Liabilities | Maturities of lease liabilities are as follows: As of December 31, 2019 Year ending December 31, Finance Leases Operating Leases Total 2020 $ 5,355 119,745 125,100 2021 4,955 94,169 99,124 2022 4,612 66,090 70,702 2023 4,077 36,965 41,042 2024 2,894 20,118 23,012 Thereafter 10,884 26,105 36,989 Total lease payments 32,777 363,192 395,969 Less imputed interest 2,728 33,092 Present value, Total $ 30,049 330,100 |
Maturity of Finance Lease Liabilities | Maturities of lease liabilities are as follows: As of December 31, 2019 Year ending December 31, Finance Leases Operating Leases Total 2020 $ 5,355 119,745 125,100 2021 4,955 94,169 99,124 2022 4,612 66,090 70,702 2023 4,077 36,965 41,042 2024 2,894 20,118 23,012 Thereafter 10,884 26,105 36,989 Total lease payments 32,777 363,192 395,969 Less imputed interest 2,728 33,092 Present value, Total $ 30,049 330,100 |
Maturity of Operating Leases | As of December 31, 2018 Year ending December 31, Finance Leases Operating Leases Total 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 |
Maturity of Finance Leases | As of December 31, 2018 Year ending December 31, Finance Leases Operating Leases Total 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 |
Components of Lease Expense | The components of lease costs are as follows: Twelve Months Ended December 31, 2019 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 30,002 97,988 127,990 Short-term 9,725 13,933 23,658 Variable 8,123 29,852 37,975 Sub-leases (311 ) (537 ) (848 ) $ 47,539 141,236 188,775 Twelve Months Ended December 31, 2019 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 4,015 — 4,015 Interest on lease liabilities — 491 491 $ 4,015 491 4,506 Net lease costs 193,281 Lease term and discount rate are as follows: At December 31, 2019 Weighted Average Remaining Lease Term Operating Leases 4.27 Finance Leases 8.44 Weighted Average Discount Rate Operating Leases 3.3 % Finance Leases 1.4 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 127,213 Operating cash flows from finance leases 349 Financing cash flows from finance leases 3,975 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 133,959 Finance Leases 20,464 Amortization: Amortization of Right of use operating lease assets (1) 109,884 (1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Condensed Consolidated Statements of Cash Flows. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of stock option plans activity | Additional information relating to the Company’s stock option plans follows: 2019 2018 2017 Options outstanding at beginning of year 63 63 91 Options exercised — — (28 ) Options forfeited and expired — — — Options outstanding at end of year 63 63 63 Options exercisable at end of year 63 63 63 Option prices per share: Options exercised during the year $ — — 57.34-66.14 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, 2019 , 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, 2018 63 $ 62.86 Granted — — Exercised — — Forfeited and expired — — Options outstanding, December 31, 2019 63 $ 62.86 1.8 $ 4,640 Vested and expected to vest as of December 31, 2019 63 $ 62.86 1.8 $ 4,640 Exercisable as of December 31, 2019 63 $ 62.86 1.8 $ 4,640 |
Summary of stock options outstanding | The following table summarizes information about the Company’s stock options outstanding as of December 31, 2019 : Outstanding Exercisable Exercise price range Number of shares Average life Average price Number of shares Average price $57.34-$57.34 23 1.15 57.34 23 57.34 $66.14-$66.14 40 2.14 66.14 40 66.14 Total 63 1.77 $ 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, 2019 , 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, 2018 446 $ 166.56 Granted 187 137.30 Released (230 ) 152.00 Forfeited (41 ) 189.23 Restricted Stock Units outstanding, December 31, 2019 362 $ 158.13 1.3 $ 48,914 Expected to vest as of December 31, 2019 356 1.3 $ 48,060 |
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: 2019 2018 2017 Restricted Stock Units outstanding, January 1 446 555 695 Granted 187 136 154 Released (230 ) (235 ) (284 ) Forfeited (41 ) (10 ) (10 ) Restricted Stock Units outstanding, December 31 362 446 555 Expected to vest as of December 31 356 440 546 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of other expense (income) | Following is a summary of other expense (income): 2019 2018 2017 Foreign currency losses (7,190 ) 9,613 8,395 Release of indemnification asset (304 ) 4,606 4,459 Impairment of net investment in a manufacturer and distributor of Ceramic tile in China (1) 59,906 — — All other, net (16,005 ) (6,921 ) (7,649 ) Total other expense (income) $ 36,407 7,298 5,205 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 United States $ 163,764 387,564 754,562 Foreign 585,781 661,637 563,295 Earnings before income taxes $ 749,545 1,049,201 1,317,857 |
Income tax expense (benefit) | Income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 consists of the following: 2019 2018 2017 Current income taxes: U.S. federal $ 19,936 22,700 327,697 State and local 12,659 14,521 17,811 Foreign 80,221 58,669 73,248 Total current 112,816 95,890 418,756 Deferred income taxes: U.S. federal 11,993 54,983 (17,419 ) State and local 15,371 19,076 (3,046 ) Foreign (135,206 ) 14,397 (55,126 ) Total deferred (107,842 ) 88,456 (75,591 ) Total $ 4,974 184,346 343,165 |
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: 2019 2018 2017 Income taxes at statutory rate $ 157,404 220,332 461,250 State and local income taxes, net of federal income tax benefit 22,185 22,315 10,133 Foreign income taxes (a) (17,276 ) (39,915 ) (113,520 ) Change in valuation allowance (21,975 ) 2,472 10,008 European Restructuring (b) (136,194 ) — — Manufacturing deduction — — (11,911 ) 2017 revaluation of deferred tax assets and liabilities (c) — — (150,546 ) Transition Tax — 28,201 105,165 Transition tax planning initiatives — (18,706 ) 14,825 Tax contingencies and audit settlements, net 6,686 (31,874 ) 23,097 Other, net (5,856 ) 1,521 (5,336 ) $ 4,974 184,346 343,165 (a) Foreign income taxes include 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) The Company implemented select operational, administrative and financial restructurings that centralized certain business processes and intangible assets in various European jurisdictions into a new entity. The European Restructuring resulted in a current income tax liability of $148,240 , calculated in part by measuring the fair value of intangible assets transferred. The Company offset the income tax liability with the utilization of $148,240 of deferred tax assets from accumulated net operating loss carry forwards. The European Restructuring also resulted in the Company recording a $136,194 deferred tax asset, and a corresponding deferred tax benefit, related to the tax basis of the intangible assets in the new entity. (c) 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, 2019 and 2018 are presented below: 2019 2018 Deferred tax assets: Accounts receivable $ 7,063 8,312 Inventories 50,585 47,212 Employee benefits 36,068 37,335 Accrued expenses and other 67,638 71,621 Deductible state tax and interest benefit 3,665 2,904 Intangibles 146,953 16,134 Lease liabilities 86,717 — Federal, foreign and state net operating losses and credits 376,375 575,625 Gross deferred tax assets 775,064 759,143 Valuation allowance (232,196 ) (347,786 ) Net deferred tax assets 542,868 411,357 Deferred tax liabilities: Inventories (12,885 ) (18,332 ) Plant and equipment (510,952 ) (477,734 ) Intangibles (182,424 ) (181,436 ) Right of use assets (83,271 ) — Other liabilities (24,220 ) (96,134 ) Gross deferred tax liabilities (813,752 ) (773,636 ) Net deferred tax liability $ (270,884 ) (362,279 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 Balance as of January 1 $ 1,330,713 65,631 Additions based on tax positions related to the current year (a) 2,302 1,304,447 Additions for tax positions of acquired companies 2,094 1,413 Additions for tax positions of prior years 4,744 5,098 Transition tax planning initiatives — (27,470 ) Reductions resulting from the lapse of the statute of limitations (2,729 ) (8,110 ) Reductions due to Luxembourg tax rate change (46,841 ) — Settlements with taxing authorities (1,929 ) (9,773 ) Effects of foreign currency translation (27,384 ) (523 ) Balance as of December 31 $ 1,260,970 1,330,713 (a) 2018 includes tax effected loss of $1,298,737 on Luxembourg hybrid instruments redemptions. The tax effected loss was adjusted for tax rate and foreign currency translation changes in 2019, resulting in an updated balance of $1,224,545 as of December 31, 2019. This $1,224,545 of unrecognized benefit is presented as a reduction to the related deferred tax asset in the balance sheet. |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information are as follows: 2019 2018 2017 Net cash paid (received) during the years for: Interest $ 45,241 46,186 33,952 Income taxes $ 123,974 196,193 373,900 Supplemental schedule of non-cash investing and financing activities: Additions to property, plant and equipment $ 6,387 (4,672 ) 30,643 Fair value of net assets acquired in acquisition $ 107,290 831,760 369,956 Liabilities assumed in acquisition (31,053 ) (257,515 ) (119,157 ) $ 76,237 574,245 250,799 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of segment information | Segment information is as follows: 2019 2018 2017 Assets: Global Ceramic $ 5,419,896 5,194,030 4,838,310 Flooring NA 3,823,654 3,938,639 3,702,137 Flooring ROW 3,925,246 3,666,617 3,245,424 Corporate and intersegment eliminations 217,884 299,837 308,982 Total $ 13,386,680 13,099,123 12,094,853 Geographic net sales: United States $ 5,822,593 6,103,789 6,035,200 Europe 2,532,239 2,582,692 2,363,069 Russia 385,395 349,220 326,075 Other 1,230,445 947,933 766,946 Total $ 9,970,672 9,983,634 9,491,290 Long-lived assets: (1) United States $ 3,391,676 3,485,046 3,339,363 Belgium 1,645,104 1,663,470 1,705,947 Other 2,232,164 2,072,353 1,696,939 Total $ 7,268,944 7,220,869 6,742,249 Net sales by product categories: Ceramic & Stone $ 3,686,645 3,621,193 3,485,245 Carpet & Resilient 3,921,769 3,903,698 3,655,902 Laminate & Wood 1,501,077 1,553,032 1,519,417 Other (2) 861,181 905,711 830,726 Total $ 9,970,672 9,983,634 9,491,290 Net sales: Global Ceramic $ 3,631,142 3,552,856 3,405,100 Flooring NA 3,843,714 4,029,148 4,010,858 Flooring ROW 2,495,816 2,401,630 2,075,452 Intersegment sales — — (120 ) Total $ 9,970,672 9,983,634 9,491,290 (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. 2019 2018 2017 Operating income: Global Ceramic $ 340,058 442,898 525,401 Flooring NA 167,385 347,937 540,337 Flooring ROW 359,428 345,801 329,054 Corporate and intersegment eliminations (39,647 ) (41,310 ) (40,619 ) Total $ 827,224 1,095,326 1,354,173 Depreciation and amortization: Global Ceramic $ 211,679 189,904 161,913 Flooring NA 204,689 184,455 159,980 Flooring ROW 145,417 135,350 114,794 Corporate 14,667 12,056 9,985 Total $ 576,452 521,765 446,672 Capital expenditures (excluding acquisitions): Global Ceramic $ 244,026 281,125 310,650 Flooring NA 148,820 262,676 355,941 Flooring ROW 147,118 232,949 221,763 Corporate 5,498 17,360 17,644 Total $ 545,462 794,110 905,998 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of supplemental quarterly financial data | The supplemental quarterly financial data are as follows: Quarters Ended March 30, June 29, September 28, December 31, Net sales $ 2,442,490 2,584,485 2,519,185 2,424,512 Gross profit 624,927 736,618 691,691 622,807 Net earnings 121,585 202,441 155,518 264,667 Basic earnings per share 1.68 2.80 2.16 3.69 Diluted earnings per share 1.67 2.79 2.15 3.68 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 704,692 766,555 720,433 646,390 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 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jun. 09, 2015EUR (€) | |
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 134,785 | $ 119,050 | ||||
Advertising and promotion expenses | 130,207 | 116,854 | $ 119,560 | |||
Co-op advertising expenses | $ 11,418 | 13,332 | 10,891 | |||
Minimum eligible service period (days) | 60 days | |||||
Employer matching contribution, percent of match | 50.00% | |||||
Maximum percentage of employee salary company matches at disclosed ratio | 6.00% | |||||
Employee contributions | $ 57,354 | 55,796 | 53,544 | |||
Employer contributions to employee benefit plan | 23,008 | 22,689 | 22,039 | |||
Projected benefit obligation | 73,510 | 63,569 | ||||
Projected plan assets | 60,040 | 54,315 | ||||
Funded status of plan | 13,470 | 9,254 | ||||
Purchases of short-term investments | 581,500 | 664,133 | 83,904 | |||
Right-of-use asset | 323,003 | |||||
Lease liability | 330,100 | |||||
Accumulated other comprehensive income (loss) | ||||||
Significant Accounting Policies [Line Items] | ||||||
Funded status of plan | 8,303 | 5,092 | ||||
Other noncurrent liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Funded status of plan | 5,167 | 4,162 | ||||
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 | 12,049 | 27,948 | 74,112 | |||
Change in U.S. dollar value of euro denominated debt, net of tax | $ 9,153 | 20,376 | $ 46,320 | |||
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) | 15 years | |||||
Minimum | Machinery and equipment | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of property, plant and equipment, minimum (years) | 3 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) | 25 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 | $ 110,033 | 88,100 | ||||
Accounting Standards Update 2016-02 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Right-of-use asset | $ 328,169 | |||||
Lease liability | $ 332,286 | |||||
MAS | ||||||
Significant Accounting Policies [Line Items] | ||||||
Purchases of short-term investments | $ 42,500 | $ 53,000 | ||||
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 |
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, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||||||||||
Earnings attributable to Mohawk Industries, Inc. | $ 264,667 | $ 155,518 | $ 202,441 | $ 121,585 | $ 229,339 | $ 227,013 | $ 196,586 | $ 208,766 | $ 744,211 | $ 861,704 | $ 971,638 | |
Accretion of redeemable noncontrolling interest | 0 | (3,892) | (46) | |||||||||
Net earnings available to common stockholders | $ 744,211 | $ 857,812 | $ 971,592 | |||||||||
Weighted-average common shares outstanding-basic (in shares) | 71,986 | 74,413 | 74,357 | |||||||||
Add weighted-average dilutive potential common shares - options and RSU’s to purchase common shares, net (in shares) | 278 | 360 | 482 | |||||||||
Weighted-average common shares outstanding-diluted (in shares) | 72,264 | 74,773 | 74,839 | |||||||||
Basic earnings per share (usd per share) | $ 3.69 | $ 2.16 | $ 2.80 | $ 1.68 | $ 3.07 | $ 3.03 | $ 2.64 | $ 2.80 | $ 10.34 | $ 11.53 | $ 13.07 | |
Diluted earnings per share (usd per share) | $ 3.68 | $ 2.15 | $ 2.79 | $ 1.67 | $ 3.05 | $ 3.02 | $ 2.62 | $ 2.78 | $ 10.30 | $ 11.47 | $ 12.98 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 7,440,059 | $ 7,067,009 | $ 5,783,487 |
Ending balance | 8,126,448 | 7,440,059 | 7,067,009 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (782,102) | (547,927) | (825,354) |
Current period other comprehensive income (loss) before reclassifications | 28,994 | (234,175) | 277,427 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | (753,108) | (782,102) | (547,927) |
Pensions and post-retirement benefits | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (9,506) | (10,600) | (7,673) |
Current period other comprehensive income (loss) before reclassifications | (3,210) | 1,094 | (2,927) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | (12,716) | (9,506) | (10,600) |
AOCI including portion attributable to noncontrolling interest | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (791,608) | (558,527) | (833,027) |
Current period other comprehensive income (loss) before reclassifications | 25,784 | (233,081) | 274,500 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | $ (765,824) | $ (791,608) | $ (558,527) |
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, 2019USD ($)business | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||
Preliminary goodwill allocation | $ 2,570,027 | $ 2,520,966 | $ 2,471,459 | ||||||
Distribution Companies in the Netherlands and Czech Republic | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | 76,237 | ||||||||
Preliminary goodwill allocation | $ 48,008 | ||||||||
Eliane S/A Revestimentos Ceramicos | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 148,302 | ||||||||
Preliminary goodwill allocation | 33,019 | ||||||||
Acquired indebtedness | 99,037 | ||||||||
Intangible assets subject to amortization | 5,818 | ||||||||
Godfrey Hirst Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase agreement price | $ 400,894 | ||||||||
Preliminary goodwill allocation | 88,655 | ||||||||
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 | $ 32,238 | ||||||||
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] | |||||||||
Number of acquisitions | business | 3 | 2 | |||||||
Purchase agreement price | $ 24,610 | ||||||||
Preliminary goodwill allocation | 12,874 | ||||||||
Intangible assets subject to amortization | $ 7 | ||||||||
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] | |||||||||
Number of acquisitions | business | 2 | ||||||||
Purchase agreement price | $ 37,250 | ||||||||
Preliminary goodwill allocation | 1,002 | ||||||||
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, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liability | $ 34,959 | $ 34,486 | |
Capitalized contract cost | 69,039 | $ 57,840 | |
Amortization of capitalized contract costs | $ 41,819 | ||
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, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 2,424,512 | $ 2,519,185 | $ 2,584,485 | $ 2,442,490 | $ 2,448,618 | $ 2,545,800 | $ 2,577,014 | $ 2,412,202 | $ 9,970,672 | $ 9,983,634 | $ 9,491,290 |
Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,686,645 | 3,621,193 | 3,485,245 | ||||||||
Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,921,769 | 3,903,698 | 3,655,902 | ||||||||
Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,501,077 | 1,553,032 | 1,519,417 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 861,181 | 905,711 | 830,726 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 5,822,593 | 6,103,789 | 6,035,200 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,532,239 | 2,582,692 | 2,363,069 | ||||||||
Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 385,395 | 349,220 | 326,075 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,230,445 | 947,933 | 766,946 | ||||||||
Operating segments | Global Ceramic segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,631,142 | 3,552,856 | 3,405,100 | ||||||||
Operating segments | Global Ceramic segment | Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,631,142 | 3,552,856 | 3,405,100 | ||||||||
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 | 2,131,029 | 2,251,233 | 2,223,998 | ||||||||
Operating segments | Global Ceramic segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 711,762 | 714,315 | 645,341 | ||||||||
Operating segments | Global Ceramic segment | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 269,142 | 245,867 | 235,043 | ||||||||
Operating segments | Global Ceramic segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 519,209 | 341,441 | 300,718 | ||||||||
Operating segments | Flooring NA segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,843,714 | 4,029,148 | 4,010,858 | ||||||||
Operating segments | Flooring NA segment | Ceramic & Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 55,503 | 68,337 | 80,145 | ||||||||
Operating segments | Flooring NA segment | Carpet & Resilient | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,136,474 | 3,258,029 | 3,219,971 | ||||||||
Operating segments | Flooring NA segment | Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 651,737 | 702,782 | 710,742 | ||||||||
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 | 3,688,691 | 3,851,267 | 3,809,211 | ||||||||
Operating segments | Flooring NA segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 6,922 | 6,487 | 19,100 | ||||||||
Operating segments | Flooring NA segment | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 66 | 2 | (1) | ||||||||
Operating segments | Flooring NA segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 148,035 | 171,392 | 182,548 | ||||||||
Operating segments | Flooring ROW segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,495,816 | 2,401,630 | 2,075,452 | ||||||||
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 | 785,295 | 645,669 | 435,931 | ||||||||
Operating segments | Flooring ROW segment | Laminate & Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 849,340 | 850,250 | 808,675 | ||||||||
Operating segments | Flooring ROW segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 861,181 | 905,711 | 830,846 | ||||||||
Operating segments | Flooring ROW segment | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,873 | 1,289 | 2,111 | ||||||||
Operating segments | Flooring ROW segment | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,813,555 | 1,861,890 | 1,698,628 | ||||||||
Operating segments | Flooring ROW segment | Russia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 116,187 | 103,351 | 91,033 | ||||||||
Operating segments | Flooring ROW segment | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 563,201 | 435,100 | 283,680 | ||||||||
Intersegment sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | (120) | ||||||||
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 | 0 | (120) | ||||||||
Intersegment sales | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | (120) | ||||||||
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 Tr_3
Restructuring, Acquisition Transaction and Integration-Related Costs (Related Costs by Type of Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 90,341 | $ 58,991 | $ 37,085 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 84,844 | 43,733 | 33,109 |
Acquisition integration-related costs | 3,458 | 3,330 | 2,916 |
Restructuring, acquisition and integration-related costs | 88,302 | 47,063 | 36,025 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 5,497 | 15,259 | 3,976 |
Acquisition transaction-related costs | 1,502 | 4,977 | 2,751 |
Acquisition integration-related costs | 5,871 | 11,351 | 6,188 |
Restructuring, acquisition and integration-related costs | $ 12,870 | $ 31,587 | $ 12,915 |
Restructuring, Acquisition Tr_4
Restructuring, Acquisition Transaction and Integration-Related Costs (Related Costs Restructuring Reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 8,513 | $ 1,095 | |
Provision | 90,341 | 58,991 | $ 37,085 |
Cash payments | (35,654) | (43,716) | |
Non-cash items | (58,941) | (7,858) | |
Ending balance | 4,259 | 8,513 | 1,095 |
Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 397 | 359 | |
Cash payments | (376) | (726) | |
Non-cash items | 0 | 0 | |
Ending balance | 21 | 397 | 359 |
Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Cash payments | 0 | 0 | |
Non-cash items | (41,756) | (4,071) | |
Ending balance | 0 | 0 | 0 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 7,866 | 584 | |
Cash payments | (16,113) | (12,605) | |
Non-cash items | (142) | (230) | |
Ending balance | 4,122 | 7,866 | 584 |
Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 250 | 152 | |
Cash payments | (19,165) | (30,385) | |
Non-cash items | (17,043) | (3,557) | |
Ending balance | 116 | 250 | $ 152 |
Corporate | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 15 | 3,278 | |
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 | 15 | 3,278 | |
Corporate | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Operating segments | Global Ceramic | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 5,264 | 9,109 | |
Operating segments | Global Ceramic | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 528 | |
Operating segments | Global Ceramic | Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 1,131 | |
Operating segments | Global Ceramic | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 5,264 | 7,113 | |
Operating segments | Global Ceramic | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 337 | |
Operating segments | Flooring NA | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 74,412 | 41,968 | |
Operating segments | Flooring NA | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 236 | |
Operating segments | Flooring NA | Asset write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 37,820 | 2,940 | |
Operating segments | Flooring NA | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 2,617 | 4,985 | |
Operating segments | Flooring NA | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 33,975 | 33,807 | |
Operating segments | Flooring ROW | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 10,650 | 4,637 | |
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 | 3,936 | 0 | |
Operating segments | Flooring ROW | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 4,615 | 4,741 | |
Operating segments | Flooring ROW | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | $ 2,099 | $ (104) |
Receivables (Net Components Of
Receivables (Net Components Of Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Customers, trade | $ 1,491,592 | $ 1,562,284 |
Income tax receivable | 8,428 | 17,217 |
Other | 88,520 | 101,376 |
Receivables, gross | 1,588,540 | 1,680,877 |
Less allowance for discounts, returns, claims and doubtful accounts | 61,921 | 74,718 |
Receivables, net | $ 1,526,619 | $ 1,606,159 |
Receivables (Allowances For Dis
Receivables (Allowances For Discounts, Returns, Claims And Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 74,718 | $ 86,103 | $ 78,335 |
Acquisitions | 382 | 4,240 | 6,510 |
Additions charged to net sales or costs and expenses | 387,253 | 317,716 | 308,507 |
Deductions | 400,432 | 333,341 | 307,249 |
Balance at end of year | $ 61,921 | $ 74,718 | $ 86,103 |
Inventories (Net components of
Inventories (Net components of inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,610,742 | $ 1,582,112 |
Work in process | 144,639 | 165,616 |
Raw materials | 526,947 | 539,887 |
Total inventories | $ 2,282,328 | $ 2,287,615 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of goodwill) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||||
Goodwill, impairment loss | $ 0 | |||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 3,848,391,000 | $ 3,798,884,000 | ||
Accumulated impairments losses, beginning balance | (1,327,425,000) | (1,327,425,000) | ||
Goodwill | 2,570,027,000 | 2,520,966,000 | $ 2,471,459,000 | |
Goodwill recognized during the year | 62,816,000 | 119,738,000 | ||
Currency translation during the year | (13,755,000) | (70,231,000) | ||
Goodwill, ending balance | 3,897,452,000 | 3,848,391,000 | ||
Accumulated impairments losses, ending balance | (1,327,425,000) | (1,327,425,000) | ||
Goodwill, net, ending balance | 2,570,027,000 | 2,520,966,000 | 2,471,459,000 | |
Global Ceramic | ||||
Goodwill [Roll Forward] | ||||
Goodwill recognized during the year | 13,197,000 | |||
Currency translation during the year | 5,392,000 | |||
Flooring NA | ||||
Goodwill [Roll Forward] | ||||
Goodwill recognized during the year | 0 | |||
Currency translation during the year | 0 | |||
Flooring ROW | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 12,874,000 | |||
Goodwill recognized during the year | 49,619,000 | |||
Currency translation during the year | (19,147,000) | |||
Goodwill, net, ending balance | $ 12,874,000 | |||
Operating segments | Global Ceramic | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 1,564,987,000 | 1,567,872,000 | ||
Accumulated impairments losses, beginning balance | (531,930,000) | (531,930,000) | ||
Goodwill | 1,051,646,000 | 1,033,057,000 | 1,035,942,000 | |
Goodwill recognized during the year | 19,821,000 | |||
Currency translation during the year | (22,706,000) | |||
Goodwill, ending balance | 1,583,576,000 | 1,564,987,000 | ||
Accumulated impairments losses, ending balance | (531,930,000) | (531,930,000) | ||
Goodwill, net, ending balance | 1,051,646,000 | 1,033,057,000 | 1,035,942,000 | |
Operating segments | Flooring NA | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 874,198,000 | 869,764,000 | ||
Accumulated impairments losses, beginning balance | (343,054,000) | (343,054,000) | ||
Goodwill | 531,144,000 | 531,144,000 | 526,710,000 | |
Goodwill recognized during the year | 4,434,000 | |||
Currency translation during the year | 0 | |||
Goodwill, ending balance | 874,198,000 | 874,198,000 | ||
Accumulated impairments losses, ending balance | (343,054,000) | (343,054,000) | ||
Goodwill, net, ending balance | 531,144,000 | 531,144,000 | 526,710,000 | |
Operating segments | Flooring ROW | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 1,409,206,000 | 1,361,248,000 | ||
Accumulated impairments losses, beginning balance | (452,441,000) | (452,441,000) | ||
Goodwill | 987,237,000 | 956,765,000 | 908,807,000 | |
Goodwill recognized during the year | 95,483,000 | |||
Currency translation during the year | (47,525,000) | |||
Goodwill, ending balance | 1,439,678,000 | 1,409,206,000 | ||
Accumulated impairments losses, ending balance | (452,441,000) | (452,441,000) | ||
Goodwill, net, ending balance | $ 987,237,000 | $ 956,765,000 | $ 908,807,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of indefinite life assets not subject to amortization) (Details) - Tradenames - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite life assets not subject to amortization, beginning balance | $ 707,380 | $ 644,208 |
Intangible assets acquired during the year(1) | 91,782 | |
Currency translation during the year | (3,774) | (28,610) |
Intangible assets acquired during the year | (874) | |
Indefinite life assets not subject to amortization, ending balance | $ 702,732 | $ 707,380 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | $ 254,430 | $ 247,559 | |
Intangible assets acquired during the year | 2,092 | 47,368 | |
Amortization during the year | (27,613) | (30,745) | $ (34,279) |
Currency translation during the year | (2,762) | (9,752) | |
Intangible assets subject to amortization, ending balance | 226,147 | 254,430 | 247,559 |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 244,628 | 234,835 | |
Intangible assets acquired during the year | 2,092 | 47,361 | |
Amortization during the year | (25,527) | (28,389) | |
Currency translation during the year | (2,752) | (9,179) | |
Intangible assets subject to amortization, ending balance | 218,441 | 244,628 | 234,835 |
Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 4,495 | 7,061 | |
Intangible assets acquired during the year | 0 | 0 | |
Amortization during the year | (2,156) | (2,272) | |
Currency translation during the year | (111) | (294) | |
Intangible assets subject to amortization, ending balance | 2,228 | 4,495 | 7,061 |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 5,307 | 5,663 | |
Intangible assets acquired during the year | 0 | 7 | |
Amortization during the year | 70 | (84) | |
Currency translation during the year | 101 | (279) | |
Intangible assets subject to amortization, ending balance | $ 5,478 | $ 5,307 | $ 5,663 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Net intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets, Net: | |||
Cost | $ 912,031 | $ 899,057 | |
Acquisitions | 2,092 | 47,368 | |
Currency translation | (13,186) | (34,394) | |
Accumulated amortization | 674,790 | 657,601 | |
Net Value | 226,147 | 254,430 | $ 247,559 |
Customer relationships | |||
Intangible Assets, Net: | |||
Cost | 651,014 | 625,263 | |
Acquisitions | 2,092 | 47,361 | |
Currency translation | (7,900) | (21,610) | |
Accumulated amortization | 426,765 | 406,386 | |
Net Value | 218,441 | 244,628 | 234,835 |
Patents | |||
Intangible Assets, Net: | |||
Cost | 254,483 | 266,969 | |
Acquisitions | 0 | 0 | |
Currency translation | (5,383) | (12,486) | |
Accumulated amortization | 246,872 | 249,988 | |
Net Value | 2,228 | 4,495 | $ 7,061 |
Other | |||
Intangible Assets, Net: | |||
Cost | 6,534 | 6,825 | |
Acquisitions | 0 | 7 | |
Currency translation | 97 | (298) | |
Accumulated amortization | 1,153 | 1,227 | |
Net Value | $ 5,478 | $ 5,307 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 27,613 | $ 30,745 | $ 34,279 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets (Schedule of estimated amortization expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 27,847 |
2021 | 27,846 |
2022 | 25,866 |
2023 | 24,234 |
2024 | $ 23,511 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 8,496,008 | $ 8,227,074 |
Less accumulated depreciation and amortization | 3,797,091 | 3,527,172 |
Net property, plant and equipment | 4,698,917 | 4,699,902 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 469,837 | 407,780 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,790,781 | 1,584,240 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 5,602,474 | 5,334,060 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 163,017 | 230,644 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 103,755 | 94,683 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 366,144 | $ 575,667 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest included in property, plant and equipment | $ 7,214 | $ 10,684 | $ 8,543 |
Depreciation expense | 544,733 | 487,411 | $ 408,646 |
Finance leases | 35,271 | 7,106 | |
Accumulated depreciation of finance leases | $ 5,664 | $ 2,333 |
Long-Term Debt (Senior Credit F
Long-Term Debt (Senior Credit Facility) (Details) | Oct. 18, 2019USD ($) | Sep. 11, 2014USD ($) | Dec. 31, 2019USD ($) | Dec. 19, 2012USD ($) |
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | $ 500,000 | $ 300,000 | ||
Basis spread on debt instrument | 0.70% | |||
Commitment fee percentage | 0.30% | |||
Senior Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | $ 1,800,000,000 | |||
Commitment fee percentage | 0.11% | |||
Maximum permitted consolidated net leverage ratio | 4 | |||
Unamortized financing costs | $ 3,405,000 | |||
Utilized borrowings under credit facility | $ 733,536,000 | |||
Available amount under credit facility | 1,066,464,000 | |||
Senior Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.09% | |||
Consolidated interest coverage ratio | 3 | |||
Senior Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Consolidated net leverage ratio | 3.75 | |||
Senior Credit Facility | Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | 16,803,000 | |||
Senior 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 | $ 22,787,000 | |||
Senior Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.125% | |||
Senior Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.00% | |||
Senior Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.75% | |||
Senior Credit Facility | Federal Funds Effective Swap Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.50% | |||
Senior Credit Facility | Monthly LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 1.00% | 0.125% | ||
Senior Credit Facility | Monthly LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.00% | |||
Senior Credit Facility | Monthly LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument | 0.75% | |||
2019 Senior Secured Credit Facility Amendment | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized financing costs | $ 2,264,000 | |||
Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | $ 693,946,000 |
Long-Term Debt (Commercial Pape
Long-Term Debt (Commercial Paper) (Details) - USD ($) | Jul. 31, 2015 | Feb. 28, 2014 | Dec. 19, 2012 | Sep. 28, 2019 | Dec. 31, 2019 | Oct. 18, 2019 | Dec. 31, 2018 | Sep. 11, 2014 |
Line of Credit Facility [Line Items] | ||||||||
Maturity period of debt | 3 years | |||||||
Maximum borrowing capacity under credit facility | $ 300,000 | $ 500,000 | ||||||
United States | Commercial Paper | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maturity period of debt | 21 days | |||||||
Maximum borrowing capacity under credit facility | $ 1,800,000,000 | |||||||
Weighted average interest rate on debt | 2.03% | |||||||
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 | 24 days 12 hours | ||||||
Weighted average interest rate on debt | (0.24%) | |||||||
Carrying Value | United States | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commercial paper | $ 317,000,000 | $ 632,668,000 | ||||||
Carrying Value | Europe | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commercial paper | $ 376,946,000 | $ 707,175,000 |
Long-Term Debt (Senior Notes) (
Long-Term Debt (Senior Notes) (Details) | Sep. 04, 2019USD ($) | May 18, 2018USD ($) | Sep. 11, 2017USD ($) | Jun. 09, 2015USD ($) | Sep. 11, 2014 | Jan. 31, 2013USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 04, 2019EUR (€) | May 18, 2018EUR (€) | Sep. 11, 2017EUR (€) | Jun. 09, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||||||||
Basis spread on debt instrument | 0.70% | ||||||||||||
Debt issuance costs | $ 3,028,000 | $ 890,000 | $ 1,478,000 | ||||||||||
Floating Rate Notes Due September Four Twenty Twenty One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debts | € | € 300,000,000 | ||||||||||||
Issuance premium received | € | € 744,000 | ||||||||||||
Debt issuance costs | $ 754,000 | ||||||||||||
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 | ||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Floating Rate Notes Due September Four Twenty Twenty One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on debt instrument | 0.20% | ||||||||||||
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) - USD ($) | Dec. 10, 2015 | Sep. 11, 2014 | Dec. 19, 2012 |
Debt Disclosure [Abstract] | |||
Securitization agreement, maximum borrowing capacity | $ 500,000 | $ 300,000 | |
Basis spread on securitization agreement | 0.70% | ||
Commitment fee percentage | 0.30% | ||
Payments 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, 2019 | Dec. 31, 2018 | 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 | $ 1,051,498 | $ 1,742,373 | |||
Long-term debt, less current portion | 2,573,015 | ||||
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] | |||||
Finance leases and other | 30,049 | 6,664 | |||
Unamortized debt issuance costs | (3,129) | (5,155) | |||
Total debt | 2,617,079 | 3,273,203 | |||
Less current portion of long term debt and commercial paper | 1,051,498 | 1,742,373 | |||
Long-term debt, less current portion | 1,565,581 | 1,530,830 | |||
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 | 627,144 | 599,904 | |||
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 | 580,235 | 587,487 | |||
Fair Value | Floating Rate Notes, payable May 18, 2020; interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 336,066 | 343,004 | |||
Fair Value | Floating Rate Notes, payable September 11, 2019, interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 0 | 343,560 | |||
Fair Value | Floating rate notes, payable September 4, 2021, interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 335,965 | 0 | |||
Fair Value | Five-year senior unsecured credit facility, due October 18, 2024 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 16,803 | 57,896 | |||
Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Finance leases and other | 30,049 | 6,664 | |||
Unamortized debt issuance costs | (3,129) | (5,155) | |||
Total debt | 2,569,886 | 3,257,974 | |||
Less current portion of long term debt and commercial paper | 1,051,498 | 1,742,373 | |||
Long-term debt, less current portion | 1,518,388 | 1,515,601 | |||
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 | 2.00% senior notes, payable January 14, 2022; interest payable annually | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 560,099 | 572,148 | |||
Carrying Value | Floating Rate Notes, payable May 18, 2020; interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 336,059 | 343,289 | |||
Carrying Value | Floating Rate Notes, payable September 11, 2019, interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 0 | 343,289 | |||
Carrying Value | Floating rate notes, payable September 4, 2021, interest payable quarterly | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 336,059 | 0 | |||
Carrying Value | Five-year senior unsecured credit facility, due October 18, 2024 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Notes payable | 16,803 | 57,896 | |||
United States | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | 317,000 | 632,668 | |||
United States | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | 317,000 | 632,668 | |||
Europe | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | 376,946 | 707,175 | |||
Europe | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Commercial paper | $ 376,946 | $ 707,175 |
Long-Term Debt (Aggregate Matur
Long-Term Debt (Aggregate Maturities Of Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 1,051,643 |
2021 | 340,555 |
2022 | 564,339 |
2023 | 603,770 |
2024 | 2,635 |
Thereafter | 10,073 |
Aggregate maturities of long-term debt | $ 2,573,015 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Outstanding checks in excess of cash | $ 9,924 | $ 14,624 |
Accounts payable, trade | 824,956 | 811,879 |
Accrued expenses | 461,035 | 430,431 |
Product warranties | 49,184 | 47,511 |
Accrued interest | 21,050 | 21,908 |
Accrued compensation and benefits | 192,991 | 197,513 |
Total accounts payable and accrued expenses | $ 1,559,140 | $ 1,523,866 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Amount of leases not yet commenced | $ 13,932 | ||
Rent expense under operating leases | $ 127,990 | ||
Rent expense under operating leases | $ 143,513 | $ 145,176 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease contracts (in years) | 1 year | ||
Term of lease contracts, majority (in years) | 1 year | ||
Lease extensions (in years) | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease contracts (in years) | 60 years | ||
Term of lease contracts, majority (in years) | 8 years | ||
Lease extensions (in years) | 10 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease costs | |
Fixed | $ 127,990 |
Short-term | 23,658 |
Variable | 37,975 |
Sub-leases | (848) |
Operating lease costs | 188,775 |
Finance lease costs | |
Amortization of leased assets | 4,015 |
Interest on lease liabilities | 491 |
Finance lease costs | 4,506 |
Lease, Cost | 193,281 |
Cost of Sales | |
Operating lease costs | |
Fixed | 30,002 |
Short-term | 9,725 |
Variable | 8,123 |
Sub-leases | (311) |
Operating lease costs | 47,539 |
Finance lease costs | |
Amortization of leased assets | 4,015 |
Interest on lease liabilities | 0 |
Finance lease costs | 4,015 |
Lease, Cost | |
Selling, General and Administrative Expenses | |
Operating lease costs | |
Fixed | 97,988 |
Short-term | 13,933 |
Variable | 29,852 |
Sub-leases | (537) |
Operating lease costs | 141,236 |
Finance lease costs | |
Amortization of leased assets | 0 |
Interest on lease liabilities | 491 |
Finance lease costs | 491 |
Lease, Cost |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
Right of use operating lease assets | $ 323,003 |
Finance Leases | |
Property, plant and equipment, gross | 35,271 |
Accumulated depreciation | (5,664) |
Property, plant and equipment, net | 29,607 |
Total lease assets | 352,610 |
Operating Leases | |
Other current | 101,945 |
Non-current | 228,155 |
Total operating liabilities | 330,100 |
Finance Leases | |
Short-term debt | 4,835 |
Long-term debt | 25,214 |
Total finance liabilities | 30,049 |
Total lease liabilities | $ 360,149 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Leases | |
2020 | $ 5,355 |
2021 | 4,955 |
2022 | 4,612 |
2023 | 4,077 |
2024 | 2,894 |
Thereafter | 10,884 |
Total lease payments | 32,777 |
Less imputed interest | 2,728 |
Present value, Total | 30,049 |
Operating Leases | |
2020 | 119,745 |
2021 | 94,169 |
2022 | 66,090 |
2023 | 36,965 |
2024 | 20,118 |
Thereafter | 26,105 |
Total lease payments | 363,192 |
Less imputed interest | 33,092 |
Present value, Total | 330,100 |
Total | |
2020 | 125,100 |
2021 | 99,124 |
2022 | 70,702 |
2023 | 41,042 |
2024 | 23,012 |
Thereafter | 36,989 |
Total lease payments | $ 395,969 |
Leases - Maturities of Finance
Leases - Maturities of Finance Leases and Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finance Leases [Abstract] | |
2019 | $ 1,494 |
2020 | 1,195 |
2021 | 766 |
2022 | 562 |
2023 | 555 |
Thereafter | 3,215 |
Total payments | 7,787 |
Less amount representing interest | 1,123 |
Present value of capitalized lease payments | 6,664 |
Operating Leases | |
2019 | 116,110 |
2020 | 93,724 |
2021 | 66,129 |
2022 | 42,247 |
2023 | 22,207 |
Thereafter | 26,097 |
Total payments | 366,514 |
Total | |
2019 | 117,604 |
2020 | 94,919 |
2021 | 66,895 |
2022 | 42,809 |
2023 | 22,762 |
Thereafter | 29,312 |
Total payments | $ 374,301 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Weighted Average Remaining Lease Term | |
Operating Leases | 4 years 3 months 7 days |
Finance Leases | 8 years 5 months 8 days |
Weighted Average Discount Rate | |
Operating Leases | 3.30% |
Finance Leases | 1.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 127,213 |
Operating cash flows from finance leases | 349 |
Financing cash flows from finance leases | 3,975 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating Leases | 133,959 |
Finance Leases | 20,464 |
Amortization of Right of use operating lease assets | $ 109,884 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 19, 2017 | May 09, 2012 | |
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 5,005 | ||
Options granted (in shares) | 0 | ||||
Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation costs | $ 0 | 0 | 6 | ||
Recognized stock-based compensation costs, net of tax | 0 | 0 | 4 | ||
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 | 23,620 | 31,382 | 36,316 | ||
Recognized stock-based compensation costs, net of tax | 17,479 | $ 24,436 | $ 22,037 | ||
Pre-tax unrecognized compensation expense | $ 20,598 | ||||
Recognized expense over a weighted-average period, years | 1 year 8 months 1 day | ||||
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 | 1 | 1 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock Option Plans Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 63,000 | 91,000 |
Options exercised (in shares) | 0 | 0 | (28,000) |
Options forfeited and expired (in shares) | 0 | 0 | 0 |
Options outstanding, ending balance (in shares) | 63,000 | 63,000 | 63,000 |
Options exercisable at end of year (in shares) | 63,000 | 63,000 | 63,000 |
Minimum | Stock Options Plans | |||
Weighted average exercise price | |||
Exercised (usd per share) | $ 0 | $ 0 | $ 57.34 |
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 | 0 | 66.14 |
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, 2019USD ($)$ / 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) | 1 year 9 months 18 days |
Vested and expected to vest, weighted average remaining contractual term (years) | 1 year 9 months 18 days |
Exercisable, weighted average remaining contractual term (years) | 1 year 9 months 18 days |
Options outstanding, aggregate intrinsic value | $ | $ 4,640 |
Vested and expected to vest, aggregate intrinsic value | $ | 4,640 |
Exercisable, aggregate intrinsic value | $ | $ 4,640 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Stock Options By Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding, number of shares (in shares) | shares | 63,000 |
Outstanding, average life | 1 year 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 Payment Arrangement, Option, 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 | 1 year 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 Payment Arrangement, Option, 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 | 2 years 1 month 20 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Restricted Stock Units outstanding, beginning balance (in shares) | 446,000 | 555,000 | 695,000 |
Granted (in shares) | 187,000 | 136,000 | 154,000 |
Released (in shares) | (230,000) | (235,000) | (284,000) |
Forfeited (in shares) | (41,000) | (10,000) | (10,000) |
Restricted Stock Units outstanding, ending balance (in shares) | 362,000 | 446,000 | 555,000 |
Expected to vest as of December 31, 2018 (in shares) | 356,000 | 440,000 | 546,000 |
Weighted average grant date fair value | |||
Restricted Stock Units outstanding, beginning balance (usd per share) | $ 166.56 | ||
Granted (usd per share) | 137.30 | ||
Released (usd per share) | 152 | ||
Forfeited (usd per share) | 189.23 | ||
Restricted Stock Units outstanding, ending balance (usd per share) | $ 158.13 | $ 166.56 | |
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 3 months 18 days | ||
Expected to vest, weighted average remaining contractual term (years) | 1 year 3 months 18 days | ||
Ending balance, aggregate intrinsic value | $ 48,914 | ||
Expected to vest, aggregate intrinsic value | $ 48,060 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Restricted Stock Units outstanding, beginning balance (in shares) | 446,000 | 555,000 | 695,000 |
Granted (in shares) | 187,000 | 136,000 | 154,000 |
Released (in shares) | (230,000) | (235,000) | (284,000) |
Forfeited (in shares) | (41,000) | (10,000) | (10,000) |
Restricted Stock Units outstanding, ending balance (in shares) | 362,000 | 446,000 | 555,000 |
Expected to vest at end of year (in shares) | 356,000 | 440,000 | 546,000 |
Other Expense (Income) (Summary
Other Expense (Income) (Summary of other expense (income)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Foreign currency losses | $ (7,190) | $ 9,613 | $ 8,395 |
Release of indemnification asset | (304) | 4,606 | 4,459 |
Impairment of net investment in a manufacturer and distributor of Ceramic tile in China | 59,906 | 0 | 0 |
All other, net | (16,005) | (6,921) | (7,649) |
Total other expense (income) | $ 36,407 | $ 7,298 | $ 5,205 |
Income Taxes (Earnings (Loss) F
Income Taxes (Earnings (Loss) From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 163,764 | $ 387,564 | $ 754,562 |
Foreign | 585,781 | 661,637 | 563,295 |
Earnings before income taxes | $ 749,545 | $ 1,049,201 | $ 1,317,857 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income taxes: | |||
Current income taxes: U.S. federal | $ 19,936 | $ 22,700 | $ 327,697 |
Current income taxes: State and local | 12,659 | 14,521 | 17,811 |
Current income taxes: Foreign | 80,221 | 58,669 | 73,248 |
Total current income taxes | 112,816 | 95,890 | 418,756 |
Deferred income taxes: | |||
Deferred income taxes: U.S. federal | 11,993 | 54,983 | (17,419) |
Deferred income taxes: State and local | 15,371 | 19,076 | (3,046) |
Deferred income taxes: Foreign | (135,206) | 14,397 | (55,126) |
Total deferred income taxes | (107,842) | 88,456 | (75,591) |
Income tax expense (benefit) | $ 4,974 | $ 184,346 | $ 343,165 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||
Mar. 30, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014EUR (€) | |
Income Taxes [Line Items] | |||||
Percentage of earnings from continuing operations before income taxes attributable to the United States | 22.00% | ||||
Deferred tax asset resulting from restructuring | $ 775,064 | $ 759,143 | |||
Deferred tax benefit related to tax basis of intangible assets | 107,842 | (88,456) | $ 75,591 | ||
Valuation allowance against deferred tax asset | 232,196 | 347,786 | |||
Increase (decrease) in the valuation allowance | (115,590) | (15,177) | |||
Net operating loss carryforwards and tax credit | 376,375 | 575,625 | |||
Net operating loss carryforwards in various foreign jurisdictions | 1,549,745 | ||||
Repatriation transition tax expense | 6,000 | 133,366 | |||
Accumulated earnings | 177,000 | 1,936,000 | |||
TCJA revaluation of deferred tax assets and liabilities | 106,107 | ||||
Belgium tax reform, income tax expense (benefit) | 44,439 | ||||
Gross unrecognized tax benefits | 1,260,970 | 1,330,713 | 65,631 | ||
Unrecognized tax benefits that would impact effective tax rate | 29,420 | ||||
Interest and penalties | 12,555 | 7,184 | |||
Accrued/(reversed) interest and penalties | 5,368 | (1,085) | $ 165 | ||
Expected decrease in unrecognized tax benefits within next twelve months | 6,772 | ||||
Luxembourg | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards in various foreign jurisdictions | $ 1,224,545 | $ 1,298,737 | |||
Domestic tax authority | |||||
Income Taxes [Line Items] | |||||
Effective income tax rate | 36.60% | 28.70% | 43.10% | ||
Foreign tax authority | |||||
Income Taxes [Line Items] | |||||
Effective income tax rate | (9.40%) | 11.00% | 3.20% | ||
Foreign tax authority | Tax year 2005 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | € 46,135 | ||||
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 2008 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 30,131 | ||||
Foreign tax authority | Tax year 2009 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 35,567 | ||||
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 | € | € 40,617 | ||||
Foreign tax authority | Tax year 2012 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 39,732 | ||||
Foreign tax authority | Tax year 2013 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 11,358 | ||||
Foreign tax authority | Tax year 2014 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 23,919 | ||||
Foreign tax authority | Tax year 2015 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 30,610 | ||||
Foreign tax authority | Tax year 2016 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | 93,145 | ||||
Foreign tax authority | Tax year 2017 | Belgium | |||||
Income Taxes [Line Items] | |||||
Foreign tax assessment | € | € 79,933 | ||||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards and tax credit | $ 51,175 | ||||
Tax Rate Changes, Foreign Currency Translations, and Other Activities | |||||
Income Taxes [Line Items] | |||||
Increase (decrease) in the valuation allowance | 32,650 | ||||
Restructuring Charges | |||||
Income Taxes [Line Items] | |||||
Deferred tax benefit related to tax basis of intangible assets | 136,194 | ||||
Foreign subsidiary and state net operating losses and tax credits | |||||
Income Taxes [Line Items] | |||||
Increase (decrease) in the valuation allowance | $ 15,357 | ||||
State deferred tax assets | |||||
Income Taxes [Line Items] | |||||
Valuation allowance against deferred tax asset | 31,349 | ||||
Operating loss carryforward, foreign jurisdiction | |||||
Income Taxes [Line Items] | |||||
Valuation allowance against deferred tax asset | 200,847 | ||||
Restructuring Charges | |||||
Income Taxes [Line Items] | |||||
Current tax liability | 148,240 | ||||
Deferred tax asset resulting from restructuring | 136,194 | ||||
Increase (decrease) in the valuation allowance | $ 148,240 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $ 157,404 | $ 220,332 | $ 461,250 |
State and local income taxes, net of federal income tax benefit | 22,185 | 22,315 | 10,133 |
Foreign income taxes | (17,276) | (39,915) | (113,520) |
Change in valuation allowance | (21,975) | 2,472 | 10,008 |
European Restructuring | (136,194) | 0 | 0 |
Manufacturing deduction | 0 | 0 | (11,911) |
2017 revaluation of deferred tax assets and liabilities | 0 | 0 | (150,546) |
Transition Tax | 0 | 28,201 | 105,165 |
Transition tax planning initiatives | 0 | (18,706) | 14,825 |
Tax contingencies and audit settlements | 6,686 | (31,874) | 23,097 |
Other, net | (5,856) | 1,521 | (5,336) |
Income tax expense (benefit) | $ 4,974 | $ 184,346 | $ 343,165 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Accounts receivable | $ 7,063 | $ 8,312 |
Inventories | 50,585 | 47,212 |
Employee benefits | 36,068 | 37,335 |
Accrued expenses and other | 67,638 | 71,621 |
Deductible state tax and interest benefit | 3,665 | 2,904 |
Intangibles | 146,953 | 16,134 |
Lease liabilities | 86,717 | |
Federal, foreign and state net operating losses and credits | 376,375 | 575,625 |
Gross deferred tax assets | 775,064 | 759,143 |
Valuation allowance | (232,196) | (347,786) |
Net deferred tax assets | 542,868 | 411,357 |
Inventories | (12,885) | (18,332) |
Plant and equipment | (510,952) | (477,734) |
Intangibles | (182,424) | (181,436) |
Right of use assets | (83,271) | |
Other liabilities | (24,220) | (96,134) |
Gross deferred tax liabilities | (813,752) | (773,636) |
Net deferred tax liability | $ (270,884) | $ (362,279) |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance as of January 1 | $ 1,330,713 | $ 65,631 |
Additions based on tax positions related to the current year | 2,302 | 1,304,447 |
Additions for tax positions of acquired companies | 2,094 | 1,413 |
Additions for tax positions of prior years | 4,744 | 5,098 |
Transition tax planning initiatives | 0 | (27,470) |
Reductions resulting from the lapse of the statute of limitations | (2,729) | (8,110) |
Reductions due to Luxembourg tax rate change | (46,841) | 0 |
Settlements with taxing authorities | (1,929) | (9,773) |
Effects of foreign currency translation | (27,384) | (523) |
Balance as of December 31 | $ 1,260,970 | $ 1,330,713 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - Standby letters of credit related to various insurance contracts and foreign vendor commitments - Senior Secured Credit Facility - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Standby letters of credit for various insurance contracts and commitments to foreign vendors | $ 22,787 | $ 54,591 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 45,241 | $ 46,186 | $ 33,952 |
Income taxes | 123,974 | 196,193 | 373,900 |
Supplemental schedule of non-cash investing and financing activities: | |||
Additions to property, plant and equipment | 6,387 | (4,672) | 30,643 |
Fair value of net assets acquired in acquisition | 107,290 | 831,760 | 369,956 |
Liabilities assumed in acquisition | (31,053) | (257,515) | (119,157) |
Noncash investing and financing activities, total | $ 76,237 | $ 574,245 | $ 250,799 |
Segment Reporting (Summary of s
Segment Reporting (Summary of segment information) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reporting segments | segment | 3 | ||||||||||
Assets | $ 13,386,680 | $ 13,099,123 | $ 13,386,680 | $ 13,099,123 | $ 12,094,853 | ||||||
Net sales | 2,424,512 | $ 2,519,185 | $ 2,584,485 | $ 2,442,490 | 2,448,618 | $ 2,545,800 | $ 2,577,014 | $ 2,412,202 | 9,970,672 | 9,983,634 | 9,491,290 |
Long-lived assets | 7,268,944 | 7,220,869 | 7,268,944 | 7,220,869 | 6,742,249 | ||||||
Operating income (loss) | 827,224 | 1,095,326 | 1,354,173 | ||||||||
Depreciation and amortization | 576,452 | 521,765 | 446,672 | ||||||||
Capital expenditures (excluding acquisitions) | 545,462 | 794,110 | 905,998 | ||||||||
Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,686,645 | 3,621,193 | 3,485,245 | ||||||||
Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,921,769 | 3,903,698 | 3,655,902 | ||||||||
Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,501,077 | 1,553,032 | 1,519,417 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 861,181 | 905,711 | 830,726 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,822,593 | 6,103,789 | 6,035,200 | ||||||||
Long-lived assets | 3,391,676 | 3,485,046 | 3,391,676 | 3,485,046 | 3,339,363 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,532,239 | 2,582,692 | 2,363,069 | ||||||||
Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 385,395 | 349,220 | 326,075 | ||||||||
Belgium | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 1,645,104 | 1,663,470 | 1,645,104 | 1,663,470 | 1,705,947 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,230,445 | 947,933 | 766,946 | ||||||||
Long-lived assets | 2,232,164 | 2,072,353 | 2,232,164 | 2,072,353 | 1,696,939 | ||||||
Operating segments | Global Ceramic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 5,419,896 | 5,194,030 | 5,419,896 | 5,194,030 | 4,838,310 | ||||||
Net sales | 3,631,142 | 3,552,856 | 3,405,100 | ||||||||
Operating income (loss) | 340,058 | 442,898 | 525,401 | ||||||||
Depreciation and amortization | 211,679 | 189,904 | 161,913 | ||||||||
Capital expenditures (excluding acquisitions) | 244,026 | 281,125 | 310,650 | ||||||||
Operating segments | Global Ceramic | Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,631,142 | 3,552,856 | 3,405,100 | ||||||||
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 | 711,762 | 714,315 | 645,341 | ||||||||
Operating segments | Global Ceramic | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 269,142 | 245,867 | 235,043 | ||||||||
Operating segments | Flooring NA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 3,823,654 | 3,938,639 | 3,823,654 | 3,938,639 | 3,702,137 | ||||||
Net sales | 3,843,714 | 4,029,148 | 4,010,858 | ||||||||
Operating income (loss) | 167,385 | 347,937 | 540,337 | ||||||||
Depreciation and amortization | 204,689 | 184,455 | 159,980 | ||||||||
Capital expenditures (excluding acquisitions) | 148,820 | 262,676 | 355,941 | ||||||||
Operating segments | Flooring NA | Ceramic & Stone | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 55,503 | 68,337 | 80,145 | ||||||||
Operating segments | Flooring NA | Carpet & Resilient | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,136,474 | 3,258,029 | 3,219,971 | ||||||||
Operating segments | Flooring NA | Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 651,737 | 702,782 | 710,742 | ||||||||
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 | 6,922 | 6,487 | 19,100 | ||||||||
Operating segments | Flooring NA | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 66 | 2 | (1) | ||||||||
Operating segments | Flooring ROW | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 3,925,246 | 3,666,617 | 3,925,246 | 3,666,617 | 3,245,424 | ||||||
Net sales | 2,495,816 | 2,401,630 | 2,075,452 | ||||||||
Operating income (loss) | 359,428 | 345,801 | 329,054 | ||||||||
Depreciation and amortization | 145,417 | 135,350 | 114,794 | ||||||||
Capital expenditures (excluding acquisitions) | 147,118 | 232,949 | 221,763 | ||||||||
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 | 785,295 | 645,669 | 435,931 | ||||||||
Operating segments | Flooring ROW | Laminate & Wood | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 849,340 | 850,250 | 808,675 | ||||||||
Operating segments | Flooring ROW | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 861,181 | 905,711 | 830,846 | ||||||||
Operating segments | Flooring ROW | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,813,555 | 1,861,890 | 1,698,628 | ||||||||
Operating segments | Flooring ROW | Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 116,187 | 103,351 | 91,033 | ||||||||
Corporate and intersegment eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 217,884 | $ 299,837 | 217,884 | 299,837 | 308,982 | ||||||
Operating income (loss) | (39,647) | (41,310) | (40,619) | ||||||||
Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | (120) | ||||||||
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 | 0 | (120) | ||||||||
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 | 14,667 | 12,056 | 9,985 | ||||||||
Capital expenditures (excluding acquisitions) | $ 5,498 | $ 17,360 | $ 17,644 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,424,512 | $ 2,519,185 | $ 2,584,485 | $ 2,442,490 | $ 2,448,618 | $ 2,545,800 | $ 2,577,014 | $ 2,412,202 | $ 9,970,672 | $ 9,983,634 | $ 9,491,290 |
Gross profit | 622,807 | 691,691 | 736,618 | 624,927 | 646,390 | 720,433 | 766,555 | 704,692 | 2,676,043 | 2,838,070 | 2,996,414 |
Net income | $ 264,667 | $ 155,518 | $ 202,441 | $ 121,585 | $ 229,339 | $ 227,013 | $ 196,586 | $ 208,766 | $ 744,211 | $ 861,704 | $ 971,638 |
Basic earnings per share (usd per share) | $ 3.69 | $ 2.16 | $ 2.80 | $ 1.68 | $ 3.07 | $ 3.03 | $ 2.64 | $ 2.80 | $ 10.34 | $ 11.53 | $ 13.07 |
Diluted earnings per share (usd per share) | $ 3.68 | $ 2.15 | $ 2.79 | $ 1.67 | $ 3.05 | $ 3.02 | $ 2.62 | $ 2.78 | $ 10.30 | $ 11.47 | $ 12.98 |