COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jul. 03, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | MHK | ||
Security Exchange Name | NYSE | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,870,920,591 | ||
Entity Common Stock, Shares Outstanding | 65,071,033 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the 2022 Annual Meeting of Stockholders-Part III. | ||
Entity Central Index Key | 0000851968 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 268,895 | $ 768,625 |
Short-term investments | 323,000 | 571,741 |
Receivables, net | 1,839,985 | 1,709,493 |
Inventories | 2,391,672 | 1,913,020 |
Prepaid expenses | 394,649 | 369,432 |
Other current assets | 20,156 | 31,343 |
Total current assets | 5,238,357 | 5,363,654 |
Property, plant and equipment, net | 4,636,865 | 4,591,229 |
Right of use operating lease assets | 389,967 | 323,138 |
Goodwill | 2,607,909 | 2,650,831 |
Tradenames | 694,905 | 727,268 |
Other intangible assets subject to amortization, net | 205,075 | 224,339 |
Deferred income taxes and other non-current assets | 451,439 | 447,292 |
Total assets | 14,224,517 | 14,327,751 |
Current liabilities: | ||
Short-term debt and current portion of long-term debt | 624,503 | 377,255 |
Accounts payable and accrued expenses | 2,217,418 | 1,895,951 |
Current operating lease liabilities | 104,434 | 98,042 |
Total current liabilities | 2,946,355 | 2,371,248 |
Deferred income taxes | 495,521 | 493,668 |
Long-term debt, less current portion | 1,700,282 | 2,356,887 |
Non-current operating lease liabilities | 297,390 | 234,726 |
Other long-term liabilities | 356,753 | 330,064 |
Total liabilities | 5,796,301 | 5,786,593 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value; 60 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 150,000 shares authorized; 72,952 and 77,624 shares issued and outstanding in 2021 and 2020, respectively | 729 | 776 |
Additional paid-in capital | 1,911,131 | 1,885,142 |
Retained earnings | 7,692,064 | 7,559,191 |
Accumulated other comprehensive loss | (966,952) | (695,145) |
Shareholder's equity before treasury stock | 8,636,972 | 8,749,964 |
Less: treasury stock at cost; 7,343 and 7,346 shares in 2021 and 2020, respectively | 215,547 | 215,648 |
Total Mohawk Industries, Inc. stockholders’ equity | 8,421,425 | 8,534,316 |
Nonredeemable noncontrolling interests | 6,791 | 6,842 |
Total stockholders’ equity | 8,428,216 | 8,541,158 |
Total liabilities and stockholders' equity | $ 14,224,517 | $ 14,327,751 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders’ equity: | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 60,000 | 60,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 72,952,000 | 77,624,000 |
Common stock, shares, outstanding (in shares) | 72,952,000 | 77,624,000 |
Treasury stock, shares (in shares) | 7,343,000 | 7,346,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 11,200,613 | $ 9,552,197 | $ 9,970,672 |
Cost of sales | 7,931,879 | 7,121,507 | 7,294,629 |
Gross profit | 3,268,734 | 2,430,690 | 2,676,043 |
Selling, general and administrative expenses | 1,933,723 | 1,794,688 | 1,848,819 |
Operating income | 1,335,011 | 636,002 | 827,224 |
Interest expense | 57,252 | 52,379 | 41,272 |
Other expense (income) net | (12,234) | (751) | 36,407 |
Earnings before income taxes | 1,289,993 | 584,374 | 749,545 |
Income tax expense | 256,445 | 68,647 | 4,974 |
Net earnings including noncontrolling interests | 1,033,548 | 515,727 | 744,571 |
Net earnings attributable to noncontrolling interests | 389 | 132 | 360 |
Net earnings attributable to Mohawk Industries, Inc. | $ 1,033,159 | $ 515,595 | $ 744,211 |
Basic earnings per share attributable to Mohawk Industries, Inc. | |||
Basic earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 15.01 | $ 7.24 | $ 10.34 |
Weighted-average common shares outstanding—basic (in shares) | 68,852 | 71,214 | 71,986 |
Diluted earnings per share attributable to Mohawk Industries, Inc. | |||
Diluted earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 14.94 | $ 7.22 | $ 10.30 |
Weighted-average common shares outstanding—diluted (in shares) | 69,145 | 71,401 | 72,264 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings including noncontrolling interests | $ 1,033,548 | $ 515,727 | $ 744,571 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (279,384) | 72,956 | 28,996 |
Prior pension and post-retirement benefit service cost and actuarial gain (loss), net of tax | 7,137 | (2,174) | (3,210) |
Other comprehensive income (loss) | (272,247) | 70,782 | 25,786 |
Comprehensive income | 761,301 | 586,509 | 770,357 |
Comprehensive income (loss) attributable to noncontrolling interests | (51) | 235 | 360 |
Comprehensive income attributable to Mohawk Industries, Inc. | $ 761,352 | $ 586,274 | $ 769,997 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Nonredeemable Noncontrolling Interests |
Beginning balance at Dec. 31, 2018 | $ 7,440,059 | $ 797 | $ 1,852,173 | $ 6,588,197 | $ (791,608) | $ (215,745) | $ 6,245 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 79,656 | (7,349) | |||||||
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 | 1 | |||||||
Stock-based compensation expense | 23,620 | 23,620 | |||||||
Repurchases of common stock | (100,079) | $ (8) | (100,071) | ||||||
Repurchases of common stock (in shares) | (806) | ||||||||
Net earnings attributable to noncontrolling interests | 360 | 360 | |||||||
Currency translation adjustment on noncontrolling interests | 2 | 2 | |||||||
Currency translation adjustment | 28,994 | 28,994 | |||||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | (3,210) | (3,210) | |||||||
Net earnings | 744,211 | 744,211 | |||||||
Ending balance at Dec. 31, 2019 | $ 8,126,448 | $ (131) | $ 790 | 1,868,250 | 7,232,337 | $ (131) | (765,824) | $ (215,712) | 6,607 |
Ending balance (in shares) at Dec. 31, 2019 | 78,980 | (7,348) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||
Shares issued under employee and director stock plans | $ (2,740) | $ 1 | (2,805) | $ 64 | |||||
Shares issued under employee and director stock plans (in shares) | 152 | 2 | |||||||
Stock-based compensation expense | 19,697 | 19,697 | |||||||
Repurchases of common stock | (188,625) | $ (15) | (188,610) | ||||||
Repurchases of common stock (in shares) | (1,508) | ||||||||
Net earnings attributable to noncontrolling interests | 132 | 132 | |||||||
Currency translation adjustment on noncontrolling interests | 103 | 103 | |||||||
Currency translation adjustment | 72,853 | 72,853 | |||||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | (2,174) | (2,174) | |||||||
Net earnings | 515,595 | 515,595 | |||||||
Ending balance at Dec. 31, 2020 | 8,541,158 | $ 776 | 1,885,142 | 7,559,191 | (695,145) | $ (215,648) | 6,842 | ||
Ending balance (in shares) at Dec. 31, 2020 | 77,624 | (7,346) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under employee and director stock plans | 440 | $ 1 | 338 | $ 101 | |||||
Shares issued under employee and director stock plans (in shares) | 144 | 3 | |||||||
Stock-based compensation expense | 25,651 | 25,651 | |||||||
Repurchases of common stock | (900,334) | $ (48) | (900,286) | ||||||
Repurchases of common stock (in shares) | (4,816) | ||||||||
Net earnings attributable to noncontrolling interests | 389 | 389 | |||||||
Currency translation adjustment on noncontrolling interests | (440) | (440) | |||||||
Currency translation adjustment | (278,944) | (278,944) | |||||||
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | 7,137 | 7,137 | |||||||
Net earnings | 1,033,159 | 1,033,159 | |||||||
Ending balance at Dec. 31, 2021 | $ 8,428,216 | $ 729 | $ 1,911,131 | $ 7,692,064 | $ (966,952) | $ (215,547) | $ 6,791 | ||
Ending balance (in shares) at Dec. 31, 2021 | 72,952 | (7,343) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net earnings including noncontrolling interests | $ 1,033,548 | $ 515,727 | $ 744,571 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Restructuring | 10,783 | 103,695 | 90,341 |
Depreciation and amortization | 591,711 | 607,507 | 576,452 |
Deferred income taxes | (4,929) | 22,324 | (107,842) |
Loss on disposal of property, plant and equipment | 5,462 | 6,296 | 1,608 |
Stock-based compensation expense | 25,651 | 19,697 | 23,620 |
Impairment of net investment in a manufacturer and distributor of ceramic tile in China | 0 | 0 | 59,906 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Receivables, net | (207,047) | (54,977) | 81,953 |
Inventories | (519,229) | 357,516 | 7,212 |
Accounts payable and accrued expenses | 360,791 | 255,466 | (52,065) |
Other assets and prepaid expenses | (66,844) | (55,084) | 3,625 |
Other liabilities | 79,222 | (8,328) | (10,620) |
Net cash provided by operating activities | 1,309,119 | 1,769,839 | 1,418,761 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (676,120) | (425,557) | (545,462) |
Acquisitions, net of cash acquired | (123,969) | 0 | (81,082) |
Purchases of short-term investments | (1,211,239) | (1,187,891) | (581,500) |
Redemption of short-term investments | 1,454,574 | 658,650 | 592,000 |
Net cash used in investing activities | (556,754) | (954,798) | (616,044) |
Cash flows from financing activities: | |||
Payments on Senior Credit Facilities | 0 | (633,134) | (488,978) |
Proceeds from Senior Credit Facilities | 0 | 617,883 | 448,587 |
Payments on commercial paper | (570,362) | (4,890,991) | (15,168,820) |
Proceeds from commercial paper | 1,185,020 | 4,195,353 | 14,540,177 |
Proceeds from Floating Rate Notes | 0 | 0 | 331,325 |
Payment on Floating Rate Notes | 0 | 0 | (331,325) |
Proceeds from Senior Notes issuance | 0 | 1,062,240 | 0 |
Repayments on Senior Notes | (932,252) | (326,904) | 0 |
Proceeds from Term Loan Facility | 0 | 500,000 | 0 |
Repayment on Term Loan Facility | 0 | (500,000) | 0 |
Net payments of other financing activities | (11,656) | (8,338) | (13,071) |
Debt issuance costs | 0 | (11,413) | (3,028) |
Purchase of Mohawk common stock | (900,334) | (188,625) | (100,080) |
Change in outstanding checks in excess of cash | (2,641) | (4,256) | (4,664) |
Net cash used in financing activities | (1,232,225) | (188,185) | (789,877) |
Effect of exchange rate changes on cash and cash equivalents | (19,870) | 6,984 | 2,895 |
Net change in cash and cash equivalents | (499,730) | 633,840 | 15,735 |
Cash and cash equivalents, beginning of year | 768,625 | 134,785 | 119,050 |
Cash and cash equivalents, end of year | $ 268,895 | $ 768,625 | $ 134,785 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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) The COVID-19 Pandemic During 2020 and 2021, the Company experienced certain disruptions to its business and further disruptions may occur that could materially affect the Company’s ability to obtain supplies, manufacture its products or deliver inventory in a timely manner. Future disruptions may result in lost revenue, additional costs or impairments to goodwill or other assets. Although the Company believes that it can manage its exposure to these risks, there is no guarantee that it will be able to do so in the future. The Company continues to follow the recommendations of local health authorities to minimize exposure risk for its employees, suppliers, customers and other stakeholders. The Company has implemented business continuity plans during the crisis and is attempting to minimize the pandemic’s impact, but it may be unable to adequately respond to further outbreaks in particular geographies and its operations may be materially impacted. The extent to which the COVID-19 pandemic may impact the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, including the successful implementation of vaccination programs and the continued fiscal support currently provided by governments. Accordingly, the COVID-19 pandemic and the related global reaction could have a material adverse effect on the Company’s business, results of operations and financial condition. (c) 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, 2021, the Company had cash and cash equivalents of $268,895 of which $200,501 was held outside the United States. As of December 31, 2020, the Company had cash and cash equivalents of $768,625 of which $436,948 was held outside the United States. (d) Short-term Investments The Company invests in high quality credit instruments. At December 31, 2021, short-term investments consisted solely of investments in the Company’s commercial paper by its wholly-owned captive insurance company. At December 31, 2020, amounts consisted of a short-duration bond fund and managed income fund. Such investments are not insured by the Federal Deposit Insurance Corporation. The Company’s investment in the short-duration bond fund and managed income fund at December 31, 2020 was classified as an equity security, recorded at fair value based on the closing market price of the security. The Company recognized dividends, realized and unrealized gains and losses to other expense (income), net in the statement of operations. (e) Fair Value Accounting principles generally accepted in the U.S. define fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. (f) Accounts Receivable and Revenue Recognition 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. The Company accounts for incremental costs of obtaining a contract as an expense when incurred in selling, general and administrative expenses if the amortization period is less than one year. The Company accounts for shipping and handling activities performed after control has been transferred as a fulfillment cost in cost of sales. (g) 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. (h) 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. (i) 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. (j) 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 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 7-20 years. (k) Leases The Company measures right of use (“ROU”) assets and lease 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 and expensed as incurred. 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 10 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. (l) 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. (m) Financial Instruments The Company’s financial instruments consist primarily of short-term investments, 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 has a wholly-owned captive insurance company that may periodically invest 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. (n) 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 $139,538 in 2021, $105,974 in 2020 and $130,207 in 2019. 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 expenses, classified as a selling, general and administrative expense, were $22,092 in 2021, $16,087 in 2020 and $11,418 in 2019. (o) 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. (p) Impairment of Long-Lived Assets The Company reviews its long-lived asset groups, which include intangible assets such as patents and customer relationships subject to amortization, 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. (q) Foreign Currency Translation The Company’s subsidiaries that operate outside the United States generally 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. (r) 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 has in the past and might in the future use 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. In June 2015, the Company designated its €500,000 2.00% Senior Notes borrowing as a net investment hedge of a portion of its European operations. On October 19, 2021, the Company redeemed at par the 2.00% Senior Notes, originally due on January 14, 2022, and paid the remaining €500 million outstanding principal of the 2.00% Senior Notes, plus any unpaid interest, utilizing cash on hand. In connection with this repayment, the Company dedesignated its €500,000 2.00% Senior Notes borrowing as a net investment hedge of a portion of its European operations. For the period January 1, 2021 through October 19, 2021, the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $35,363 ($26,928 net of taxes). For the years ended December 31, 2020 and December 31, 2019, the change in the U.S. dollar value of the Company’s euro denominated debt was an increase of $54,907 ($41,708 net of taxes) and a decrease of $12,049 ($9,153 net of taxes), respectively. Changes in the U.S. dollar value of the Company’s euro denominated debt are recorded in the foreign currency translation adjustment component of accumulated other comprehensive income (loss). (s) 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 and unvested restricted shares (units) 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 2021, 2020 and 2019. Computations of basic and diluted earnings per share are presented in the following table: 2021 2020 2019 Net earnings available to common stockholders $ 1,033,159 515,595 744,211 Weighted-average common shares outstanding-basic and diluted: Weighted-average common shares outstanding—basic 68,852 71,214 71,986 Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net 293 187 278 Weighted-average common shares outstanding-diluted 69,145 71,401 72,264 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 15.01 7.24 10.34 Diluted $ 14.94 7.22 10.30 (t) 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. (u) Employee Benefit Plans The Company has 401(k) retirement savings plans (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 $67,044 and $23,884 in 2021, $56,241 and $13,509 in 2020 and $57,354 and $23,008 in 2019, 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, 2021 were $80,324 and $65,118, respectively. The Company’s projected benefit obligation and plan assets as of December 31, 2020 were $86,722 and $68,413, respectively. As of December 31, 2021, the funded status of the Non-U.S. Plans was a liability of $15,206 of which $8,866 was recorded in accumulated other comprehensive income, for a net liability of $6,340 recorded in other long-term liabilities within the consolidated balance sheets. As of December 31, 2020, the funded status of the Non-U.S. Plans was a liability of $18,309 of which $11,304 was recorded in accumulated other comprehensive income, for a net liability of $7,005 recorded in other long-term liabilities within the consolidated balance sheets. (v) 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, pension and post-retirement benefit service cost. 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 noncontrolling 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, 2021, 2020 and 2019 are as follows: Foreign currency translation adjustments Prior pension and post-retirement benefit service cost and actuarial gain (loss) Total 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 Balance as of December 31, 2019 (753,108) (12,716) (765,824) Current period other comprehensive income (loss) before reclassifications 72,853 (2,174) 70,679 Balance as of December 31, 2020 (680,255) (14,890) (695,145) Current period other comprehensive income (loss) before reclassifications (278,944) 7,137 (271,807) Balance as of December 31, 2021 $ (959,199) (7,753) (966,952) (w) Self-Insurance Reserves The Company is self-insured in the U.S. for various levels of general liability, automobile 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. The Company has a wholly-owned captive insurance company, Mohawk Assurance Services, Inc. (“MAS”). MAS insures the retained portion of the Company’s U.S. general liability, automobile liability, workers’ compensation exposures, pandemic, terrorism and medical coverage to MAS. (x) 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. (y) Recent Accounting Pronouncements - Recently Adopted 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 Company adopted the new standard on January 1, 2021. The effect of adopting the new standard was not material. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was further amended by additional accounting standards updates issued by the FASB. The new standard replaced the incurred loss impairment methodology for recognizing credit losses with a new methodology that requires recognition of lifetime expected credit losses when a financial asset is originated or purchased, even if the risk of loss is remote. The new methodology (referred to as the current expected credit losses model, or "CECL") applies to most financial assets measured at amortized cost, including trade receivables, and requires consideration of a broader range of reasonable and supportable information to estimate expected credit losses. The Company adopted the new standard on January 1, 2020 using a modified retrospective transition approach, with the cumulative impact being immaterial to the financial statements. 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. The Company adopted the new standard in the fourth quarter of 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions 2021 Acquisitions During 2021, the Company made acquisitions in the Flooring ROW Segment totaling $123,969, including the acquisition of an insulation manufacturer, on September 7, 2021 for $67,285 and the acquisition of a MDF production plant on November 2, 2021 for $46,348. The Company’s acquisitions resulted in a preliminary goodwill allocation of $55,258 and intangible assets subject to amortization of $19,946. The goodwill is not expected to be deductible for tax purposes. The remaining acquisitions resulted in preliminary goodwill of $1,672 and intangible assets subject to amortization of $5,596. 2019 Acquisitions |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers 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 $65,744 and $39,466 as of December 31, 2021 and December 31, 2020, 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, 2021, 2020, and 2019 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 $49,644 and $59,847 as of December 31, 2021 and December 31, 2020, respectively. Straight-line amortization expense recognized during 2021 and 2020 related to these capitalized costs were $61,681 and $68,201, respectively. 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, 2021, 2020 and 2019, respectively: December 31, 2021 Global Ceramic Segment Flooring NA Segment Flooring ROW Segment Total Geographical Markets United States $ 2,193,234 3,978,146 10,248 6,181,628 Europe 849,247 2,731 2,265,914 3,117,892 Russia 299,621 94 150,295 450,010 Other 575,217 135,434 740,432 1,451,083 Total $ 3,917,319 4,116,405 3,166,889 11,200,613 Product Categories Ceramic & Stone $ 3,903,597 35,057 — 3,938,654 Carpet & Resilient 13,722 3,287,533 992,787 4,294,042 Laminate & Wood — 793,815 1,058,951 1,852,766 Other (1) — — 1,115,151 1,115,151 Total $ 3,917,319 4,116,405 3,166,889 11,200,613 December 31, 2020 Global Ceramic Segment Flooring NA Segment Flooring ROW Segment Total Geographical Markets United States $ 2,050,470 3,477,556 2,381 5,530,407 Europe 699,715 1,506 1,785,549 2,486,770 Russia 262,846 50 122,934 385,830 Other 419,725 114,963 614,502 1,149,190 Total $ 3,432,756 3,594,075 2,525,366 9,552,197 Product Categories Ceramic & Stone $ 3,425,672 31,531 — 3,457,203 Carpet & Resilient 7,084 2,871,050 857,754 3,735,888 Laminate & Wood — 691,494 847,473 1,538,967 Other (1) — — 820,139 820,139 Total $ 3,432,756 3,594,075 2,525,366 9,552,197 December 31, 2019 Global Ceramic Segment Flooring NA Segment Flooring ROW Segment 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 (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, 2021 | |
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 ("Asset write-downs") and workforce reductions. Restructuring, acquisition transaction and integration-related costs consisted of the following during the year ended December 31, 2021, 2020 and 2019, respectively (in thousands): 2021 2020 2019 Cost of sales Restructuring costs $ 17,899 101,230 84,844 Acquisition integration-related costs 497 1,153 3,458 Restructuring and acquisition integration-related costs $ 18,396 102,383 88,302 Selling, general and administrative expenses Restructuring costs $ 1,301 24,127 5,497 Acquisition transaction-related costs 2,372 213 1,502 Acquisition integration-related costs 1,568 2,127 5,871 Restructuring, acquisition transaction and integration-related costs $ 5,241 26,467 12,870 The restructuring activity for the years ended December 31, 2021 and 2020, respectively is as follows (in thousands): Lease Asset write-downs (gains on disposals) Severance Other Total Balance as of December 31, 2019 $ 21 — 4,122 116 4,259 Restructuring costs Global Ceramic Segment 2,239 19,963 13,987 6,927 43,116 Flooring NA Segment 227 32,902 4,660 13,809 51,598 Flooring ROW Segment — 12,913 5,746 6,391 25,050 Corporate — 3,685 1,908 — 5,593 Total restructuring costs for 2020 2,466 69,463 26,301 27,127 125,357 Cash payments (21) — (20,001) (18,425) (38,447) Non-cash items (2,466) (69,463) 1,154 (8,089) (78,864) Balance as of December 31, 2020 — — 11,576 729 12,305 Restructuring costs Global Ceramic Segment 226 1,458 134 808 2,626 Flooring NA Segment (37) 7,595 (284) 9,614 16,888 Flooring ROW Segment — (1,968) (1,096) 1,538 (1,526) Corporate — 1,017 195 — 1,212 Total restructuring costs for 2021 189 8,102 (1,051) 11,960 19,200 Cash payments — — (8,507) (10,822) (19,329) Non-cash items (189) (8,102) (384) (872) (9,547) Balance as of December 31, 2021 $ — — 1,634 995 2,629 2020 restructuring costs recorded in: Cost of sales $ — 64,415 13,949 22,866 101,230 Selling, general and administrative expenses 2,466 5,048 12,352 4,261 24,127 Total restructuring costs for 2020 $ 2,466 69,463 26,301 27,127 125,357 2021 restructuring costs recorded in: Cost of sales $ — 6,721 (370) 11,548 17,899 Selling, general and administrative expenses 189 1,381 (681) 412 1,301 Total restructuring costs for 2021 $ 189 8,102 (1,051) 11,960 19,200 The Company generally expects the remaining severance and other restructuring costs to be paid over the next year. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value For publicly-traded investment securities, which consisted of the Company’s money market, short-duration bond funds and managed income funds, fair value was determined on the basis of quoted market prices and, accordingly, such investments were classified as Level 1. The Company’s wholly-owned captive insurance company may also invest in the Company’s commercial paper. These short-term commercial paper investments are classified as trading securities and carried at fair value based upon the Level 2 fair value hierarchy. Items Measured at Fair Value The following table presents the items measured at fair value as of December 31, 2021 and December 31, 2020: Fair Value December 31, 2021 December 31, 2020 Cash and cash equivalents: Money market fund (Level 1) $ — 197,835 Short-term investments: Short-term investments (Level 1) (1) — 571,741 Commercial Paper (Level 2) 323,000 — (1) The Company’s short-term investments at December 31, 2020 consisted of short-duration bond funds and managed income funds that were designed to deliver current income consistent with the preservation of capital through investing in high- and medium grade fixed income securities. The investments were readily convertible into cash. |
Receivables, net
Receivables, net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net December 31, December 31, Customers, trade $ 1,721,584 1,591,503 Income tax receivable 73,727 112,580 Other 117,823 89,092 1,913,134 1,793,175 Less: allowance for discounts, returns, claims and doubtful accounts (1) 73,149 83,682 Receivables, net $ 1,839,985 1,709,493 (1) The Company adopted the new standard, ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020 using a modified retrospective transition approach, with the cumulative impact being immaterial to the financial statements. The following table reflects the activity of allowances for discounts, returns, claims and doubtful accounts for the years ended December 31: Balance at Acquisitions Additions Deductions (1) Balance 2019 $ 74,718 382 387,253 400,432 61,921 2020 61,921 — 384,403 362,642 83,682 2021 83,682 644 357,635 368,812 73,149 (1) Represents charge-offs, net of recoveries . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories are as follows: December 31, December 31, Finished goods $ 1,677,707 1,372,234 Work in process 144,004 126,231 Raw materials 569,961 414,555 Total inventories $ 2,391,672 1,913,020 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 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 Segment Flooring NA Segment Flooring ROW Segment Total Balances as of December 31, 2019 Goodwill $ 1,583,576 874,198 1,439,678 3,897,452 Accumulated impairment losses (531,930) (343,054) (452,441) (1,327,425) 1,051,646 531,144 987,237 2,570,027 Goodwill recognized during the period — — (9,642) (9,642) Currency translation during the period (4,085) — 94,531 90,446 Balances as of December 31, 2020 Goodwill 1,579,491 874,198 1,524,567 3,978,256 Accumulated impairment losses (531,930) (343,054) (452,441) (1,327,425) 1,047,561 531,144 1,072,126 2,650,831 Goodwill recognized during the period — — 56,930 56,930 Currency translation during the period (16,224) — (83,628) (99,852) Balances as of December 31, 2021 Goodwill 1,563,267 874,198 1,497,869 3,935,334 Accumulated impairment losses (531,930) (343,054) (452,441) (1,327,425) $ 1,031,337 531,144 1,045,428 2,607,909 Intangible assets: Tradenames Indefinite life assets not subject to amortization: Balance as of December 31, 2019 $ 702,732 Currency translation during the year 24,536 Balance as of December 31, 2020 727,268 Intangible assets acquired during the year 2,725 Currency translation during the year (35,088) Balance as of December 31, 2021 $ 694,905 Customer Patents Other Total Intangible assets subject to amortization: Balances as of December 31, 2019 $ 218,441 2,228 5,478 226,147 Intangible assets acquired during the year 12,789 — — 12,789 Amortization during the year (26,612) (2,195) (84) (28,891) Currency translation during the year 13,921 111 262 14,294 Balances as of December 31, 2020 218,539 144 5,656 224,339 Intangible assets acquired during the year 18,189 4,628 — 22,817 Amortization during the year (27,820) (639) (821) (29,280) Currency translation during the year (12,479) (211) (111) (12,801) Balances as of December 31, 2021 $ 196,429 3,922 4,724 205,075 December 31, 2021 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 699,795 18,189 (37,807) 483,748 196,429 Patents 273,570 4,628 (21,862) 252,414 3,922 Other 6,945 — (159) 2,062 4,724 Total $ 980,310 22,817 (59,828) 738,224 205,075 December 31, 2020 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 645,206 12,789 41,800 481,256 218,539 Patents 249,100 — 24,470 273,426 144 Other 6,631 — 314 1,289 5,656 Total $ 900,937 12,789 66,584 755,971 224,339 Years Ended December 31, 2021 2020 2019 Amortization expense $ 29,280 28,891 27,613 Estimated amortization expense for the years ending December 31 are as follows: 2022 $ 28,747 2023 27,113 2024 26,390 2025 26,195 2026 26,048 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 465,240 484,450 Buildings and improvements 1,862,463 1,856,859 Machinery and equipment 6,023,087 5,987,272 Furniture and fixtures 158,315 164,027 Leasehold improvements 102,766 103,172 Construction in progress 638,716 309,486 9,250,587 8,905,266 Less: accumulated depreciation 4,613,722 4,314,037 Net property, plant and equipment $ 4,636,865 4,591,229 Additions to property, plant and equipment included capitalized interest of $9,082, $6,362 and $7,214 in 2021, 2020 and 2019, respectively. Depreciation expense was $558,818, $574,095 and $544,733 for 2021, 2020 and 2019, respectively. Included in property, plant and equipment are finance leases with a cost of $67,984 and $58,170 and accumulated depreciation of $19,902 and $12,498 as of December 31, 2021 and 2020, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
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 restatement 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, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 1.00% and 1.75% (1.00% as of December 31, 2021), 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% (0.00% as of December 31, 2021). 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 (0.09% as of December 31, 2021). 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). On October 28, 2021, the Company further amended the Senior Credit Facility to replace LIBOR for euros with the EURIBOR benchmark rate. 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 limitations contain customary exceptions or, in certain cases, do not apply as long as the Company is in compliance with the financial ratio requirements and is not otherwise in default. The Senior Credit Facility originally required the Company to maintain a Consolidated Interest Coverage Ratio of at least 3.00 to 1.00 and a Consolidated Net Leverage Ratio of no more than 3.75 to 1.00, each as of the last day of any fiscal quarter. However, on May 7, 2020 the Company amended the Senior Credit Facility to temporarily increase the minimum Consolidated Net Leverage Ratio to 4.75 to 1.00 and to increase the amount of certain adjustments to Net Income that are permitted to calculate the ratio. The relief provided by the amendment is in effect for the fiscal quarters ending on September 26, 2020 through (and including) the fiscal quarter ending December 31, 2021. 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, 2021, amounts utilized under the Senior Credit Facility included zero borrowings and $1,432 of standby letters of credit related to various insurance contracts and foreign vendor commitments. Any outstanding borrowings under the Company’s U.S. and European commercial paper programs reduce the availability of the Senior Credit Facility. Including commercial paper borrowings, the Company has utilized $615,291 under the Senior Credit Facility resulting in a total of $1,184,709 available as of December 31, 2021. 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, 2021, there was $598,000 outstanding under the U.S. commercial paper program, and the euro equivalent of $15,859 under the European program. The weighted-average interest rate and maturity period for the U.S. program were 0.37% and 20.5 days, respectively. The weighted-average interest rate and maturity period for the European program were (0.43)% and 25.1 days, respectively. Senior Notes On June 12, 2020, Mohawk Capital Finance S.A. (“Mohawk Finance”), an indirect wholly-owned finance subsidiary of the Company, completed the issuance and sale of €500,000 aggregate principal amount of 1.750% Senior Notes (“1.750% Senior Notes”) due June 12, 2027. The 1.750% Senior 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 1.750% Senior Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. Interest on the 1.750% Senior Notes is payable annually in cash on June 12 of each year, commencing on June 12, 2021. The Company paid financing costs of $4,400 in connection with the 1.750% Senior Notes. These costs were deferred and are being amortized over the term of the 1.750% Senior Notes. On May 14, 2020, the Company completed the issuance and sale of $500,000 aggregate principal amount of 3.625% Senior Notes (“3.625% Senior Notes”) due May 15, 2030. The 3.625% 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 3.625% Senior Notes is payable semi-annually in cash on May 15 and November 15 of each year, commencing on November 15, 2020. The Company paid financing costs of $5,476 in connection with the 3.625% Senior Notes. These costs were deferred and are being amortized over the term of the 3.625% 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 were senior unsecured obligations of Mohawk Finance and ranked pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 2021 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 0.2% (but in no event would the interest rate be less than zero). Interest on the 2021 Floating Rate Notes was 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 were deferred and amortized over the term of the 2021 Floating Rate Notes. On September 7, 2021, the Company paid the remaining €300,000 outstanding principal of the 2021 Floating Rate Notes utilizing cash on hand. 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 were senior unsecured obligations of Mohawk Finance and ranked pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 2020 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 2020 Floating Rate Notes was 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 amortized over the term of the 2020 Floating Rate Notes. On May 18, 2020, the Company paid the remaining €300,000 outstanding principal of the 2020 Floating Rate Notes utilizing cash on hand and borrowings under its commercial paper programs. 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 were senior unsecured obligations of the Company and ranked pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 2.00% Senior Notes was 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 were being amortized over the term of the 2.00% Senior Notes. On October 19, 2021, the Company redeemed at the par the remaining €500,000 outstanding principal of the 2.00% Senior Notes plus any unpaid interest, utilizing cash on hand. 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. Term Loan On April 7, 2020, the Company entered into a credit agreement that provided for a $500,000 delayed draw term loan facility (the “Term Loan Facility”). On April 15, 2020, the Company borrowed the full amount on the Term Loan Facility, the proceeds of which could be used for funding working capital and general corporate purposes of the Company. The principal amount of the Term Loan Facility was to be repaid in a single installment on April 6, 2021. The Company could prepay all or a portion of the Term Loan Facility from time to time, plus accrued and unpaid interest. The obligations of the Company and its subsidiaries in respect of the Term Loan Facility were unsecured. The Term Loan Facility was subject to the same affirmative and negative covenants that are applicable to the Senior Credit Facility. The Company recorded financing costs of $1,088 in connection with the Term Loan Facility. On May 15, 2020, the Company prepaid the entire outstanding balance on the Term Loan Facility utilizing cash on hand and proceeds from the 3.625% Senior Notes and associated financing costs were written off in the quarter ending June 27, 2020. The fair values and carrying values of the Company’s debt instruments are detailed as follows: At December 31, 2021 At December 31, 2020 Fair Value Carrying Fair Value Carrying 1.750% Senior Notes, payable June 12, 2027; interest payable annually $ 601,037 566,380 635,664 615,006 3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually 538,545 500,000 561,890 500,000 3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually 615,630 600,000 638,844 600,000 2.00% Senior Notes, payable January 14, 2022; interest payable annually — — 624,680 615,006 2021 Floating Rate Notes, payable September 04, 2021; interest payable quarterly — — 368,738 369,004 U.S. commercial paper 598,000 598,000 — — European commercial paper 15,859 15,859 — — Finance leases and other 53,163 53,163 46,302 46,302 Unamortized debt issuance costs (8,617) (8,617) (11,176) (11,176) Total debt 2,413,617 2,324,785 2,864,942 2,734,142 Less current portion of long term-debt and commercial paper 624,503 624,503 376,989 377,255 Long-term debt, less current portion $ 1,789,114 1,700,282 2,487,953 2,356,887 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, 2021 are as follows (1) : 2022 $ 624,503 2023 609,994 2024 8,447 2025 7,062 2026 4,790 Thereafter 1,078,606 $ 2,333,402 (1) |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are as follows: December 31, 2021 December 31, 2020 Outstanding checks in excess of cash $ 3,005 5,672 Accounts payable, trade 1,228,621 1,016,897 Accrued expenses 666,209 566,052 Product warranties 45,215 54,692 Accrued interest 17,940 30,403 Accrued compensation and benefits 256,428 222,235 Total accounts payable and accrued expenses $ 2,217,418 1,895,951 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
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. 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 for the twelve months ended December 31, 2021, 2020 and 2019, respectively, are as follows: December 31, 2021 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 20,130 104,651 124,781 Short-term 13,415 18,434 31,849 Variable 7,949 30,127 38,076 Sub-leases (529) (1,113) (1,642) $ 40,965 152,099 193,064 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 9,193 — 9,193 Interest on lease liabilities — 772 772 $ 9,193 772 9,965 Net lease costs $ 203,029 December 31, 2020 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 25,067 102,504 127,571 Short-term 11,633 16,021 27,654 Variable 8,285 30,036 38,321 Sub-leases (411) (741) (1,152) $ 44,574 147,820 192,394 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 6,423 — 6,423 Interest on lease liabilities — 690 690 $ 6,423 690 7,113 Net lease costs $ 199,507 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 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, 2021 At December 31, 2020 Assets Operating Leases Right of use operating lease assets Right of use operating lease assets $ 389,967 323,138 Finance Leases Property, plant and equipment, gross Property, plant and equipment 67,984 58,170 Accumulated depreciation Accumulated depreciation (19,902) (12,498) Property, plant and equipment, net Property, plant and equipment, net 48,082 45,672 Total lease assets $ 438,049 368,810 Liabilities Operating Leases Other current Current operating lease liabilities $ 104,434 98,042 Non-current Non-current operating lease liabilities 297,390 234,726 Total operating liabilities 401,824 332,768 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 9,560 8,025 Long-term debt Long-term debt, less current portion 38,390 38,098 Total finance liabilities 47,950 46,123 Total lease liabilities $ 449,774 378,891 Maturities of lease liabilities as of December 31, 2021 are as follows: Year ending December 31, Finance Operating Total 2022 $ 10,223 120,754 130,977 2023 9,393 98,769 108,162 2024 7,696 73,884 81,580 2025 6,210 56,853 63,063 2026 4,624 40,452 45,076 Thereafter 13,112 36,489 49,601 Total lease payments 51,258 427,201 478,459 Less imputed interest 3,308 25,377 Present value, Total $ 47,950 401,824 The Company had approximately $10,969 of leases that commenced after December 31, 2021 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, 2021 At December 31, 2020 Weighted Average Remaining Lease Term Operating Leases 4.7 years 4.5 years Finance Leases 7.2 years 7.7 years Weighted Average Discount Rate Operating Leases 2.4 % 2.8 % Finance Leases 1.3 % 1.4 % Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, December 31, December 31, Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 122,886 124,708 127,213 Operating cash flows from finance leases 772 690 349 Financing cash flows from finance leases 9,289 6,386 3,975 Right of use assets obtained in exchange for lease obligations: Operating leases 186,605 110,036 133,959 Finance leases 13,395 18,248 20,464 Amortization: Amortization of right of use operating lease assets (1) 115,650 113,898 109,884 (1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows. |
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. 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 for the twelve months ended December 31, 2021, 2020 and 2019, respectively, are as follows: December 31, 2021 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 20,130 104,651 124,781 Short-term 13,415 18,434 31,849 Variable 7,949 30,127 38,076 Sub-leases (529) (1,113) (1,642) $ 40,965 152,099 193,064 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 9,193 — 9,193 Interest on lease liabilities — 772 772 $ 9,193 772 9,965 Net lease costs $ 203,029 December 31, 2020 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 25,067 102,504 127,571 Short-term 11,633 16,021 27,654 Variable 8,285 30,036 38,321 Sub-leases (411) (741) (1,152) $ 44,574 147,820 192,394 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 6,423 — 6,423 Interest on lease liabilities — 690 690 $ 6,423 690 7,113 Net lease costs $ 199,507 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 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, 2021 At December 31, 2020 Assets Operating Leases Right of use operating lease assets Right of use operating lease assets $ 389,967 323,138 Finance Leases Property, plant and equipment, gross Property, plant and equipment 67,984 58,170 Accumulated depreciation Accumulated depreciation (19,902) (12,498) Property, plant and equipment, net Property, plant and equipment, net 48,082 45,672 Total lease assets $ 438,049 368,810 Liabilities Operating Leases Other current Current operating lease liabilities $ 104,434 98,042 Non-current Non-current operating lease liabilities 297,390 234,726 Total operating liabilities 401,824 332,768 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 9,560 8,025 Long-term debt Long-term debt, less current portion 38,390 38,098 Total finance liabilities 47,950 46,123 Total lease liabilities $ 449,774 378,891 Maturities of lease liabilities as of December 31, 2021 are as follows: Year ending December 31, Finance Operating Total 2022 $ 10,223 120,754 130,977 2023 9,393 98,769 108,162 2024 7,696 73,884 81,580 2025 6,210 56,853 63,063 2026 4,624 40,452 45,076 Thereafter 13,112 36,489 49,601 Total lease payments 51,258 427,201 478,459 Less imputed interest 3,308 25,377 Present value, Total $ 47,950 401,824 The Company had approximately $10,969 of leases that commenced after December 31, 2021 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, 2021 At December 31, 2020 Weighted Average Remaining Lease Term Operating Leases 4.7 years 4.5 years Finance Leases 7.2 years 7.7 years Weighted Average Discount Rate Operating Leases 2.4 % 2.8 % Finance Leases 1.3 % 1.4 % Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, December 31, December 31, Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 122,886 124,708 127,213 Operating cash flows from finance leases 772 690 349 Financing cash flows from finance leases 9,289 6,386 3,975 Right of use assets obtained in exchange for lease obligations: Operating leases 186,605 110,036 133,959 Finance leases 13,395 18,248 20,464 Amortization: Amortization of right of use operating lease assets (1) 115,650 113,898 109,884 (1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recognized compensation expense for all share-based payments granted for the years ended December 31, 2021, 2020 and 2019 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 three 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. Restricted Stock Plans A summary of the Company’s RSUs under the Company’s long-term incentive plans as of December 31, 2021, and changes during the year then ended is presented as follows: Shares Weighted Weighted Aggregate Restricted Stock Units outstanding, December 31, 2020 375 $ 122.84 Granted 194 176.73 Released (105) 192.78 Forfeited (25) 145.76 Restricted Stock Units outstanding, December 31, 2021 439 $ 128.62 1.3 $ 79,950 Expected to vest as of December 31, 2021 418 1.3 $ 76,235 The Company recognized stock-based compensation costs related to the issuance of RSUs of $25,651 ($18,982, net of taxes), $19,697 ($14,576, net of taxes) and $23,620 ($17,479, net of taxes) for the years ended December 31, 2021, 2020 and 2019, respectively, which has been allocated to selling, general and administrative expenses and cost of goods sold. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $20,086 as of December 31, 2021, and will be recognized as expense over a weighted-average period of approximately 1.61 years. Additional information relating to the Company’s RSUs under the Company’s long-term incentive plans are as follows: 2021 2020 2019 Restricted Stock Units outstanding, January 1 375 362 446 Granted 194 192 187 Released (105) (146) (230) Forfeited (25) (33) (41) Restricted Stock Units outstanding, December 31 439 375 362 Expected to vest as of December 31 418 361 356 During 2021, 2020 and 2019, shares were awarded each year to certain non-employee directors in lieu of cash for their annual retainers. The total number of shares were 3, 2, and 1, respectively. |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Expense (Income) | Other Expense (Income) Following is a summary of other expense (income): 2021 2020 2019 Foreign currency losses (gains), net $ 6,298 7,815 (7,190) Release of indemnification asset — — (304) Impairment of joint venture in Brazil — 3,599 — Impairment of net investment in a manufacturer and distributor of Ceramic tile in China (1) — — 59,906 Resolution of foreign non-income tax contingencies (6,211) — — All other, net (12,321) (12,165) (16,005) Total other expense (income), net $ (12,234) (751) 36,407 (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, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Following is a summary of earnings before income taxes for United States and foreign operations: 2021 2020 2019 United States $ 380,632 94,829 163,764 Foreign 909,361 489,545 585,781 Earnings before income taxes $ 1,289,993 584,374 749,545 Income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 consists of the following: 2021 2020 2019 Current income taxes: U.S. federal $ 93,085 (33,821) 19,936 State and local 24,904 7,794 12,659 Foreign 143,385 72,350 80,221 Total current 261,374 46,323 112,816 Deferred income taxes: U.S. federal (2,655) 14,533 11,993 State and local 13,306 112 15,371 Foreign (15,580) 7,679 (135,206) Total deferred (4,929) 22,324 (107,842) Total income tax expense $ 256,445 68,647 4,974 The geographic dispersion of earnings and losses contributes to the annual changes in the Company’s effective tax rates. Approximately 30% of the Company’s current year earnings before income taxes was generated in the United States. 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 and the United Kingdom. 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, 2021, 2020 and 2019 were 33.8%, (12.0)%, and 36.6%, respectively, and its non-U.S. effective tax rates for the years ended December 31, 2021, 2020 and 2019 were 14.1%, 16.3%, and (9.4)%, 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: 2021 2020 2019 Income taxes at statutory rate $ 270,898 122,719 157,404 State and local income taxes, net of federal income tax benefit 25,658 8,081 22,185 Foreign income taxes (a) (34,981) (57,898) (17,276) Change in valuation allowance 5,947 35,381 (21,975) European Restructuring (b) — — (136,194) Loss on previously taxed earnings — (10,346) — Carryback rate differential (c) (15,743) (33,739) — Global intangible low-taxed income 34,400 2,500 6,000 Italy Step-up Adjustment (d) (22,163) — — Tax contingencies and audit settlements, net 12,505 6,779 6,686 Other, net (20,076) (4,830) (11,856) $ 256,445 68,647 4,974 (a) Foreign income taxes include statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. (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. (c) The CARES Act permits the Company to carry back its 2020 U.S. taxable loss to a tax year before the corporate income tax rate was lowered by the Tax Cuts and Jobs Act. (d) The company realized a one-time Italian step-up benefit allowing for the realignment of tax asset values. 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, 2021 and 2020 are presented below: 2021 2020 Deferred tax assets: Accounts receivable $ 16,550 14,384 Inventories 38,388 44,597 Employee benefits 54,865 39,526 Accrued expenses and other 73,983 103,892 Deductible state tax and interest benefit 7,206 4,042 Intangibles 135,777 152,499 Lease liabilities 106,753 91,359 Federal, foreign and state net operating losses and credits 408,434 433,822 Gross deferred tax assets 841,956 884,121 Valuation allowance (236,357) (267,838) Net deferred tax assets 605,599 616,283 Deferred tax liabilities: Inventories (23,484) (17,403) Plant and equipment (467,451) (489,240) Intangibles (188,417) (197,009) Right of use assets (101,935) (87,351) Prepaids (45,077) (56,140) Other liabilities (67,914) (46,121) Gross deferred tax liabilities (894,278) (893,264) Net deferred tax liability $ (288,679) (276,981) 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, 2021, and 2020 is $236,357 and $267,838, respectively. The valuation allowance as of December 31, 2021 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 2021 valuation allowance was a decrease of $31,481 related to tax rate changes, foreign currency translation, and other activities. The total change in the 2020 valuation allowance was an increase of $35,642 related to tax rate changes, foreign currency translation, and other activities. 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, 2021, the Company has state net operating loss carry forwards and state tax credits with potential tax benefits of $44,186, net of federal income tax benefit; these carry forwards expire over various periods based on taxing jurisdiction. A valuation allowance totaling $22,851 has been recorded against these state deferred tax assets as of December 31, 2021. In addition, as of December 31, 2021, the Company has credits and net operating loss carry forwards in the U.S. with potential tax benefits of $6,173 and in various foreign jurisdictions with potential tax benefits of $1,596,351. A valuation allowance of $5,882 and $207,624, respectively, has been recorded against these deferred tax assets as of December 31, 2021. As a result of the redemption of hybrid instruments in response to changes in global tax regimes, the Company has an ASC 740-10 liability of $1,238,277 for the full tax effected loss on the hybrid instrument 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. The Company has no intentions or plans to repatriate foreign earnings and continues to assert that historical earnings of its foreign subsidiaries as of December 31, 2021 are permanently reinvested. Should the remaining 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. 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, 2021, the Company’s gross amount of unrecognized tax benefits is $1,296,523, excluding interest and penalties. If the Company were to prevail on all uncertain tax positions, $45,147 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: 2021 2020 Balance as of January 1 $ 1,388,391 1,260,970 Additions based on tax positions related to the current year 458 1,694 Additions for tax positions of acquired companies — — Additions for tax positions of prior years 18,001 7,663 Transition tax planning initiatives — — Reductions resulting from the lapse of the statute of limitations (3,336) (1,239) Reductions due to Luxembourg tax rate change — — Settlements with taxing authorities — (497) Effects of foreign currency translation (106,991) 119,800 Balance as of December 31 $ 1,296,523 1,388,391 As a result of the redemption of hybrid instruments in response to changes in global tax regimes, the Company has an ASC 740-10 liability for the full tax effected loss on hybrid instruments. 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. The tax effected loss was adjusted for foreign currency translation changes in 2021, resulting in an updated balance of $1,238,277 as of December 31, 2021. As of December 31, 2021 and 2020, the Company has $14,494 and $11,485, 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, 2021, 2020 and 2019, the Company accrued interest and penalties through income tax expense of $3,236, $(695) and $5,368, respectively. The Company believes that its unrecognized tax benefits could decrease by $19,510 within the next twelve months. The Internal Revenue Service has initiated its audit of the Company’s 2019 and 2020 tax years. As permitted by the CARES Act, the company carried back its 2020 taxable losses to tax years before the corporate income tax rate was lowered by the Tax Cut and Jobs Act. Federal income tax matters related to years prior to 2014 have been effectively settled. Various other state and foreign income tax returns are open to examination for various years. Belgian Tax Matter The Company has been in a dispute with the Belgian Tax Authority (the “BTA”) regarding the proper tax treatment of the royalty income arising from intellectual property (“IP”) owned by a Luxembourg subsidiary, Flooring Industries Limited Sarl (“FIL”). The BTA had assessed Unilin BV for the calendar years ending December 2005 through 2010 in an amount totaling €223,321 (including penalties but excluding interest), alleging that Unilin BV inappropriately transferred valuable IP to FIL and income associated with that IP should be taxed in Belgium. Unilin BV challenged all of these assessments and prevailed both in the Court of First Appeal in Bruges and in the Ghent Court of Appeal. In 2021, the BTA indicated it will not appeal these cases to the Supreme Court and has withdrawn all of the assessments for 2005 through 2010. Consequently, all of those tax years are now closed. Having lost under its original theory, the BTA is in the process of initiating new assessments for later years against FIL rather than Unilin BV. The BTA now alleges that FIL had a taxable presence in Belgium and should be taxed on royalties received in respect of its IP. The BTA issued initial assessments in December 2020 and June 2021 that totaled €371,696 (including penalties but excluding interest) for calendar years ending December 2013 through 2018. However, in November and December of 2021, the BTA cancelled these assessments and issued a new notice of change that totals €182,594 (including penalties but excluding interest) for those years using different calculations. The Company expects an additional assessment for 2019. Under the statute of limitations, the BTA may not assess FIL for any years prior to 2013, and the Company believes that FIL’s statute of limitations is closed for 2013 through 2016, although this will be a point of contention with the BTA. These assessments would involve the same underlying facts at issue in the above referenced cases where Unilin BV prevailed at two different levels. Consequently, the Company believes that its tax position in Belgium was correct and will persist with its vigorous defense. When the BTA issues tax assessments, Belgian tax law requires assurances that the taxes can be paid even while they are being disputed. Consequently, the BTA has placed liens on various properties of Unilin BV to support the original assessments discussed above. Since those assessments have been nullified by the courts, the accompanying liens will be withdrawn. Since FIL does not have property in Belgium, the BTA may require assurances from FIL to support the new assessments for 2013 through 2019. These assurances may take the form of a bond or bank guarantees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company had approximately $1,432 and $787 in standby letters of credit for various insurance contracts and commitments to foreign vendors as of December 31, 2021 and 2020, respectively that expire within two years. The Company is involved in various lawsuits, claims, investigations and other legal matters from time to time in the regular course of its business. Except as noted below and in Note 15, 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. The Alabama Supreme Court denied the application for rehearing. On August 21, 2020, certain defendants, including the Company, petitioned the Supreme Court of the United States for review of the matter. On January 19, 2021, the Supreme Court denied the defendants’ petition for review. 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 filed motions to dismiss in both of these cases. On December 17, 2020, the Superior Court of Floyd County denied the Company’s motion to dismiss in the Rome case. On September 20, 2021, the Northern District of Georgia denied the Company’s motion to dismiss in the class action. The Company denies all liability in these matters and intends to defend them vigorously. Putative Securities Class Action On January 3, 2020, the Company and certain of its 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 “Securities Class Action”). 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 (“Class Period”). On June 29, 2020, an amended complaint was filed in the Securities Class Action against Mohawk and its CEO Jeff Lorberbaum, based on the same claims and the same Class Period. The amended complaint alleges that the Company (1) engaged in fabricating revenues by attempting delivery to customers that were closed and recognizing these attempts as sales; (2) overproduced product to report higher operating margins and maintained significant inventory that was not salable; and (3) valued certain inventory improperly or improperly delivered inventory with knowledge that it was defective and customers would return it. On October 27, 2020, defendants filed a motion to dismiss the amended complaint. On September 29, 2021, the court issued an order granting in part and denying the defendants’ motion to dismiss the amended complaint. Defendants filed an answer to the amended complaint on November 12, 2021, and fact discovery is ongoing. On January 26, 2022, Lead Plaintiff moved for class certification, to appoint itself as class representative, and for appointment of class counsel. The Company intends to vigorously defend against the claims. Government Subpoenas As previously disclosed, on June 25, 2020, the Company received subpoenas issued by the U.S. Attorney’s Office for the Northern District of Georgia (the “USAO”) and the U.S. Securities and Exchange Commission (the “SEC”) relating to matters similar to the allegations of wrongdoing raised by the Securities Class Action. The Company’s Audit Committee, with the assistance of outside legal counsel, conducted a thorough internal investigation into these allegations. The Audit Committee has completed the investigation and concluded that the allegations of wrongdoing are without merit. The USAO and SEC investigations are ongoing, and the Company is cooperating fully with those authorities. The Company will continue to vigorously defend against the allegations of wrongdoing in the Securities Class Action and does not believe they have merit. 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. On March 27, 2020, the court granted a temporary stay of the litigation. The stay may be lifted at the close of fact discovery in the related Securities Class Action pending in the United States District Court for the Northern District of Georgia according to the terms set forth in the court’s order to stay litigation. The Company intends to vigorously defend against the claims. Georgia State Court Investor Actions The Company and certain of its present and former executive officers were named as defendants in certain investor actions, filed in the State Court of Fulton County of the State of Georgia on April 22, 2021 and April 23, 2021. Four complaints brought on behalf of purported former Mohawk stockholders each allege that defendants defrauded the respective plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action pending in the United States District Court for the Northern District of Georgia. The claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the investor actions seek compensatory and punitive damages. On June 28, 2021, defendants filed motions to dismiss each of the four complaints and answers to the same. On October 5, 2021, all four investor actions were transferred by the State Court of Fulton County to the Metro Atlanta Business Case Division, where fact discovery is ongoing. On January 28, 2022, the Court granted in part and denied in part the motions to dismiss, dismissing the Georgia Securities Act claims as to all defendants, and the negligent misrepresentation claim as to the Company. The Company intends to vigorously defend against the claims. Separate Federal Action The Company and certain of its present and former executive officers were named as defendants in an additional non-class action lawsuit filed in the United States District Court for the Northern District of Georgia on June 22, 2021. The complaint is brought on behalf of a group of purported former Mohawk stockholders and alleges that defendants defrauded the plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The federal law claims alleged include violations of Sections 10(b) and 18 of 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 state law claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the lawsuit seek compensatory and punitive damages and attorneys’ fees. On December 13, 2021, defendants filed motions to dismiss the complaint, which remain pending. The Company intends to vigorously defend against the claims. Derivative Actions The Company and certain of its executive officers and directors were named as defendants in certain derivative actions filed in the United States District Court for the Northern District of Georgia on May 18, 2020 and August 6, 2020, respectively (the “NDGA Derivative Actions”), and in the Superior Court of Gordon County of the State of Georgia on March 3, 2021 and July 12, 2021 (the “Georgia Derivative Actions”). The complaints allege that defendants breached their fiduciary duties to the Company by causing the Company to issue materially false and misleading statements. The complaints are filed on behalf of the Company and seek to remedy fiduciary duty breaches occurring from April 28, 2017 – July 25, 2019. On July 20, 2020, the court in the NDGA Derivative Actions granted a temporary stay of the litigation. On October 21, 2020, the court entered an order consolidating the NDGA Derivative Actions and appointing Lead Counsel. Other shareholders of record jointly moved to intervene in the derivative actions to stay the proceedings. On September 28, 2021, the court in the NDGA Derivative Actions issued an order granting the request to intervene. On April 8, 2021, the court in the first-filed of the Georgia Derivative Actions granted a temporary stay of the litigation. On January 18, 2022, the Court in the NDGA Derivative Actions lifted the temporary stay of the litigation. On January 20, 2022, the court in the second-filed of the Georgia Derivative Actions entered an order on scheduling requiring defendants to file and serve their response to the complaint on February 21, 2022. The Company intends to vigorously defend against the claims. 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 the Company is unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that the ultimate outcome of 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, 2021 | |
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: 2021 2020 2019 Net cash paid during the years for: Interest $ 75,514 44,584 45,241 Income taxes $ 323,718 106,891 123,974 Supplemental schedule of non-cash investing and financing activities: Unpaid property plant and equipment in accounts payable and accrued expenses $ 117,084 90,767 104,823 Fair value of net assets acquired in acquisition $ 176,924 — 107,290 Liabilities assumed in acquisition (52,955) — (31,053) $ 123,969 — 76,237 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
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, porcelain slabs, quartz 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, laminate, resilient (includes sheet vinyl and LVT) and wood flooring, which it distributes through its network of regional distribution centers and satellite warehouses using company-operated trucks, common carriers 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, sheet vinyl, LVT, wood flooring, roofing elements, insulation boards, medium-density fiberboard (“MDF”), chipboards other wood products, which it distributes primarily in Europe, Australia, New Zealand and Russia through various selling channels, which include retailers, company-operated distributors, 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, 2021, 2020 or 2019. Segment information is as follows: 2021 2020 2019 Assets: Global Ceramic Segment $ 5,160,776 5,250,069 5,419,896 Flooring NA Segment 4,125,960 3,594,976 3,823,654 Flooring ROW Segment 4,361,741 4,194,447 3,925,246 Corporate and intersegment eliminations 576,040 1,288,259 217,884 Total $ 14,224,517 14,327,751 13,386,680 Geographic net sales: United States $ 6,181,628 5,530,407 5,822,593 Europe 3,117,892 2,486,770 2,532,239 Russia 450,010 385,830 385,395 Other 1,451,083 1,149,190 1,230,445 Total $ 11,200,613 9,552,197 9,970,672 Long-lived assets: (1) United States $ 3,334,256 3,303,197 3,391,676 Belgium 1,783,259 1,808,571 1,645,104 Other 2,127,259 2,130,292 2,232,164 Total $ 7,244,774 7,242,060 7,268,944 Net sales by product categories: Ceramic & Stone $ 3,938,654 3,457,203 3,686,645 Carpet & Resilient 4,294,042 3,735,888 3,921,769 Laminate & Wood 1,852,766 1,538,967 1,501,077 Other (2) 1,115,151 820,139 861,181 Total $ 11,200,613 9,552,197 9,970,672 Net sales: Global Ceramic Segment $ 3,917,319 3,432,756 3,631,142 Flooring NA Segment 4,116,405 3,594,075 3,843,714 Flooring ROW Segment 3,166,889 2,525,366 2,495,816 Total $ 11,200,613 9,552,197 9,970,672 (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. 2021 2020 2019 Operating income (loss): Global Ceramic Segment $ 403,135 167,731 335,639 Flooring NA Segment 407,577 147,442 177,566 Flooring ROW Segment 571,126 366,934 353,666 Corporate and intersegment eliminations (46,827) (46,105) (39,647) Total $ 1,335,011 636,002 827,224 Depreciation and amortization: Global Ceramic Segment $ 210,634 215,488 211,679 Flooring NA Segment 211,872 214,599 204,689 Flooring ROW Segment 156,700 164,701 145,417 Corporate 12,505 12,719 14,667 Total $ 591,711 607,507 576,452 Capital expenditures (excluding acquisitions): Global Ceramic Segment $ 167,224 121,418 244,026 Flooring NA Segment 327,691 186,179 148,820 Flooring ROW Segment 164,318 113,378 147,118 Corporate 16,887 4,582 5,498 Total $ 676,120 425,557 545,462 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventOn February 10, 2022, the Company's Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the "2022 Share Repurchase Program"). As of February 10, 2022, there remained zero authorized under the 2021 Share Repurchase Program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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. |
Short-term Investments | Short-term Investments The Company invests in high quality credit instruments. At December 31, 2021, short-term investments consisted solely of investments in the Company’s commercial paper by its wholly-owned captive insurance company. At December 31, 2020, amounts consisted of a short-duration bond fund and managed income fund. Such investments are not insured by the Federal Deposit Insurance Corporation. The Company’s investment in the short-duration bond fund and managed income fund at December 31, 2020 was classified as an equity security, recorded at fair value based on the closing market price of the security. The Company recognized dividends, realized and unrealized gains and losses to other expense (income), net in the statement of operations. |
Fair Value | Fair Value Accounting principles generally accepted in the U.S. define fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
Accounts Receivable and Revenue Recognition | Accounts Receivable and Revenue Recognition 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. The Company accounts for incremental costs of obtaining a contract as an expense when incurred in selling, general and administrative expenses if the amortization period is less than one year. The Company accounts for shipping and handling activities performed after control has been transferred as a fulfillment cost in cost of sales. |
Inventories | InventoriesThe 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 EquipmentProperty, 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 CombinationsThe 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 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 7-20 years. |
Leases | Leases The Company measures right of use (“ROU”) assets and lease 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 and expensed as incurred. 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 10 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. |
Income Taxes | Income TaxesIncome 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 InstrumentsThe Company’s financial instruments consist primarily of short-term investments, 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 has a wholly-owned captive insurance company that may periodically invest in the Company’s commercial paper. These short-term commercial paper investments are classified as trading securities and carried at fair value based upon level two fair value hierarchy. The carrying amount of the Company’s floating rate debt approximates its fair value based upon level two fair value hierarchy. Interest rates that are currently available to the Company for issuance of long-term debt with similar terms and remaining maturities are used to estimate the fair value of the Company’s long-term debt. |
Advertising Costs and Vendor Consideration | Advertising Costs and Vendor ConsiderationAdvertising and promotion expenses are charged to earnings during the period in which they are incurred.Vendor consideration, generally cash, is classified as a reduction of net sales, unless specific criteria are met regarding goods or services that the Company may receive in return for this consideration. The Company makes various payments to customers, including rebates, slotting fees, advertising allowances, buy-downs and co-op advertising. All of these payments reduce gross sales with the exception of co-op advertising. |
Product Warranties | Product WarrantiesThe 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 AssetsThe Company reviews its long-lived asset groups, which include intangible assets such as patents and customer relationships subject to amortization, 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 TranslationThe Company’s subsidiaries that operate outside the United States generally use their local currency as the functional currency. The functional currency is translated into U.S. Dollars for balance sheet accounts using the month end rates in effect as of the balance sheet date and average exchange rate for revenue and expense accounts for each respective period. The translation adjustments are deferred as a separate component of stockholders’ equity, within accumulated other comprehensive income (loss). Gains or losses resulting from transactions denominated in foreign currencies are included in other income or expense, within the consolidated statements of operations. |
Hedges of Net Investments in Non-U.S. Operations | Hedges of Net Investments in Non-U.S. OperationsThe 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 has in the past and might in the future use 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. In June 2015, the Company designated its €500,000 2.00% Senior Notes borrowing as a net investment hedge of a portion of its European operations. On October 19, 2021, the Company redeemed at par the 2.00% Senior Notes, originally due on January 14, 2022, and paid the remaining €500 million outstanding principal of the 2.00% Senior Notes, plus any unpaid interest, utilizing cash on hand. In connection with this repayment, the Company dedesignated its €500,000 2.00% Senior Notes borrowing as a net investment hedge of a portion of its European operations. For the period January 1, 2021 through October 19, 2021, the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $35,363 ($26,928 net of taxes). For the years ended December 31, 2020 and December 31, 2019, the change in the U.S. dollar value of the Company’s euro denominated debt was an increase of $54,907 ($41,708 net of taxes) and a decrease of $12,049 ($9,153 net of taxes), respectively. Changes in the U.S. dollar value of the Company’s euro denominated debt are recorded in the foreign currency translation adjustment component of accumulated other comprehensive income (loss). |
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 and unvested restricted shares (units) 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 2021, 2020 and 2019. |
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 PlansThe Company has 401(k) retirement savings plans (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 $67,044 and $23,884 in 2021, $56,241 and $13,509 in 2020 and $57,354 and $23,008 in 2019, respectively. The Company also has various pension plans covering employees in Belgium, France, and the Netherlands (the “Non-U.S. Plans”) within the Flooring ROW Segment. Benefits under the Non-U.S. Plans depend on compensation and years of service. The Non-U.S. Plans are funded in accordance with local regulations. The Company uses December 31 as the measurement date for its Non-U.S. Plans. |
Comprehensive Income (Loss) | Comprehensive Income (Loss)Comprehensive income (loss) includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature, pension and post-retirement benefit service cost. 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 noncontrolling interests separately from currency translation adjustments on controlling interests in accumulated other comprehensive income (loss) within stockholders’ equity. |
Self-Insurance Reserves | Self-Insurance ReservesThe Company is self-insured in the U.S. for various levels of general liability, automobile 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. The Company has a wholly-owned captive insurance company, Mohawk Assurance Services, Inc. (“MAS”). MAS insures the retained portion of the Company’s U.S. general liability, automobile liability, workers’ compensation exposures, pandemic, terrorism and medical coverage to MAS. |
Fiscal Year | Fiscal YearThe 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 - Recently Adopted 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 Company adopted the new standard on January 1, 2021. The effect of adopting the new standard was not material. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was further amended by additional accounting standards updates issued by the FASB. The new standard replaced the incurred loss impairment methodology for recognizing credit losses with a new methodology that requires recognition of lifetime expected credit losses when a financial asset is originated or purchased, even if the risk of loss is remote. The new methodology (referred to as the current expected credit losses model, or "CECL") applies to most financial assets measured at amortized cost, including trade receivables, and requires consideration of a broader range of reasonable and supportable information to estimate expected credit losses. The Company adopted the new standard on January 1, 2020 using a modified retrospective transition approach, with the cumulative impact being immaterial to the financial statements. 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. The Company adopted the new standard in the fourth quarter of 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 12, 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Computations of Basic and Diluted Earnings Per Share | Computations of basic and diluted earnings per share are presented in the following table: 2021 2020 2019 Net earnings available to common stockholders $ 1,033,159 515,595 744,211 Weighted-average common shares outstanding-basic and diluted: Weighted-average common shares outstanding—basic 68,852 71,214 71,986 Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net 293 187 278 Weighted-average common shares outstanding-diluted 69,145 71,401 72,264 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 15.01 7.24 10.34 Diluted $ 14.94 7.22 10.30 |
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, 2021, 2020 and 2019 are as follows: Foreign currency translation adjustments Prior pension and post-retirement benefit service cost and actuarial gain (loss) Total 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 Balance as of December 31, 2019 (753,108) (12,716) (765,824) Current period other comprehensive income (loss) before reclassifications 72,853 (2,174) 70,679 Balance as of December 31, 2020 (680,255) (14,890) (695,145) Current period other comprehensive income (loss) before reclassifications (278,944) 7,137 (271,807) Balance as of December 31, 2021 $ (959,199) (7,753) (966,952) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue | 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, 2021, 2020 and 2019, respectively: December 31, 2021 Global Ceramic Segment Flooring NA Segment Flooring ROW Segment Total Geographical Markets United States $ 2,193,234 3,978,146 10,248 6,181,628 Europe 849,247 2,731 2,265,914 3,117,892 Russia 299,621 94 150,295 450,010 Other 575,217 135,434 740,432 1,451,083 Total $ 3,917,319 4,116,405 3,166,889 11,200,613 Product Categories Ceramic & Stone $ 3,903,597 35,057 — 3,938,654 Carpet & Resilient 13,722 3,287,533 992,787 4,294,042 Laminate & Wood — 793,815 1,058,951 1,852,766 Other (1) — — 1,115,151 1,115,151 Total $ 3,917,319 4,116,405 3,166,889 11,200,613 December 31, 2020 Global Ceramic Segment Flooring NA Segment Flooring ROW Segment Total Geographical Markets United States $ 2,050,470 3,477,556 2,381 5,530,407 Europe 699,715 1,506 1,785,549 2,486,770 Russia 262,846 50 122,934 385,830 Other 419,725 114,963 614,502 1,149,190 Total $ 3,432,756 3,594,075 2,525,366 9,552,197 Product Categories Ceramic & Stone $ 3,425,672 31,531 — 3,457,203 Carpet & Resilient 7,084 2,871,050 857,754 3,735,888 Laminate & Wood — 691,494 847,473 1,538,967 Other (1) — — 820,139 820,139 Total $ 3,432,756 3,594,075 2,525,366 9,552,197 December 31, 2019 Global Ceramic Segment Flooring NA Segment Flooring ROW Segment 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 (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, 2021 | |
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, 2021, 2020 and 2019, respectively (in thousands): 2021 2020 2019 Cost of sales Restructuring costs $ 17,899 101,230 84,844 Acquisition integration-related costs 497 1,153 3,458 Restructuring and acquisition integration-related costs $ 18,396 102,383 88,302 Selling, general and administrative expenses Restructuring costs $ 1,301 24,127 5,497 Acquisition transaction-related costs 2,372 213 1,502 Acquisition integration-related costs 1,568 2,127 5,871 Restructuring, acquisition transaction and integration-related costs $ 5,241 26,467 12,870 |
Schedule of Restructuring and Related Costs | The restructuring activity for the years ended December 31, 2021 and 2020, respectively is as follows (in thousands): Lease Asset write-downs (gains on disposals) Severance Other Total Balance as of December 31, 2019 $ 21 — 4,122 116 4,259 Restructuring costs Global Ceramic Segment 2,239 19,963 13,987 6,927 43,116 Flooring NA Segment 227 32,902 4,660 13,809 51,598 Flooring ROW Segment — 12,913 5,746 6,391 25,050 Corporate — 3,685 1,908 — 5,593 Total restructuring costs for 2020 2,466 69,463 26,301 27,127 125,357 Cash payments (21) — (20,001) (18,425) (38,447) Non-cash items (2,466) (69,463) 1,154 (8,089) (78,864) Balance as of December 31, 2020 — — 11,576 729 12,305 Restructuring costs Global Ceramic Segment 226 1,458 134 808 2,626 Flooring NA Segment (37) 7,595 (284) 9,614 16,888 Flooring ROW Segment — (1,968) (1,096) 1,538 (1,526) Corporate — 1,017 195 — 1,212 Total restructuring costs for 2021 189 8,102 (1,051) 11,960 19,200 Cash payments — — (8,507) (10,822) (19,329) Non-cash items (189) (8,102) (384) (872) (9,547) Balance as of December 31, 2021 $ — — 1,634 995 2,629 2020 restructuring costs recorded in: Cost of sales $ — 64,415 13,949 22,866 101,230 Selling, general and administrative expenses 2,466 5,048 12,352 4,261 24,127 Total restructuring costs for 2020 $ 2,466 69,463 26,301 27,127 125,357 2021 restructuring costs recorded in: Cost of sales $ — 6,721 (370) 11,548 17,899 Selling, general and administrative expenses 189 1,381 (681) 412 1,301 Total restructuring costs for 2021 $ 189 8,102 (1,051) 11,960 19,200 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents the items measured at fair value as of December 31, 2021 and December 31, 2020: Fair Value December 31, 2021 December 31, 2020 Cash and cash equivalents: Money market fund (Level 1) $ — 197,835 Short-term investments: Short-term investments (Level 1) (1) — 571,741 Commercial Paper (Level 2) 323,000 — (1) |
Receivables, net (Tables)
Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Net Components Of Receivables | December 31, December 31, Customers, trade $ 1,721,584 1,591,503 Income tax receivable 73,727 112,580 Other 117,823 89,092 1,913,134 1,793,175 Less: allowance for discounts, returns, claims and doubtful accounts (1) 73,149 83,682 Receivables, net $ 1,839,985 1,709,493 (1) The Company adopted the new standard, ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020 using a modified retrospective transition approach, with the cumulative impact being immaterial to the financial statements. |
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 Acquisitions Additions Deductions (1) Balance 2019 $ 74,718 382 387,253 400,432 61,921 2020 61,921 — 384,403 362,642 83,682 2021 83,682 644 357,635 368,812 73,149 (1) Represents charge-offs, net of recoveries . |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Net Components of Inventories | The components of inventories are as follows: December 31, December 31, Finished goods $ 1,677,707 1,372,234 Work in process 144,004 126,231 Raw materials 569,961 414,555 Total inventories $ 2,391,672 1,913,020 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the components of intangible assets: Goodwill: Global Ceramic Segment Flooring NA Segment Flooring ROW Segment Total Balances as of December 31, 2019 Goodwill $ 1,583,576 874,198 1,439,678 3,897,452 Accumulated impairment losses (531,930) (343,054) (452,441) (1,327,425) 1,051,646 531,144 987,237 2,570,027 Goodwill recognized during the period — — (9,642) (9,642) Currency translation during the period (4,085) — 94,531 90,446 Balances as of December 31, 2020 Goodwill 1,579,491 874,198 1,524,567 3,978,256 Accumulated impairment losses (531,930) (343,054) (452,441) (1,327,425) 1,047,561 531,144 1,072,126 2,650,831 Goodwill recognized during the period — — 56,930 56,930 Currency translation during the period (16,224) — (83,628) (99,852) Balances as of December 31, 2021 Goodwill 1,563,267 874,198 1,497,869 3,935,334 Accumulated impairment losses (531,930) (343,054) (452,441) (1,327,425) $ 1,031,337 531,144 1,045,428 2,607,909 |
Schedule of Indefinite Life Assets Not Subject to Amortization | Tradenames Indefinite life assets not subject to amortization: Balance as of December 31, 2019 $ 702,732 Currency translation during the year 24,536 Balance as of December 31, 2020 727,268 Intangible assets acquired during the year 2,725 Currency translation during the year (35,088) Balance as of December 31, 2021 $ 694,905 |
Schedule of Intangible Assets Subject to Amortization | Customer Patents Other Total Intangible assets subject to amortization: Balances as of December 31, 2019 $ 218,441 2,228 5,478 226,147 Intangible assets acquired during the year 12,789 — — 12,789 Amortization during the year (26,612) (2,195) (84) (28,891) Currency translation during the year 13,921 111 262 14,294 Balances as of December 31, 2020 218,539 144 5,656 224,339 Intangible assets acquired during the year 18,189 4,628 — 22,817 Amortization during the year (27,820) (639) (821) (29,280) Currency translation during the year (12,479) (211) (111) (12,801) Balances as of December 31, 2021 $ 196,429 3,922 4,724 205,075 December 31, 2021 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 699,795 18,189 (37,807) 483,748 196,429 Patents 273,570 4,628 (21,862) 252,414 3,922 Other 6,945 — (159) 2,062 4,724 Total $ 980,310 22,817 (59,828) 738,224 205,075 December 31, 2020 Cost Acquisitions Currency translation Accumulated amortization Net Value Customer Relationships $ 645,206 12,789 41,800 481,256 218,539 Patents 249,100 — 24,470 273,426 144 Other 6,631 — 314 1,289 5,656 Total $ 900,937 12,789 66,584 755,971 224,339 |
Amortization Expense | Years Ended December 31, 2021 2020 2019 Amortization expense $ 29,280 28,891 27,613 |
Schedule of Expected Amortization Expense | Estimated amortization expense for the years ending December 31 are as follows: 2022 $ 28,747 2023 27,113 2024 26,390 2025 26,195 2026 26,048 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 465,240 484,450 Buildings and improvements 1,862,463 1,856,859 Machinery and equipment 6,023,087 5,987,272 Furniture and fixtures 158,315 164,027 Leasehold improvements 102,766 103,172 Construction in progress 638,716 309,486 9,250,587 8,905,266 Less: accumulated depreciation 4,613,722 4,314,037 Net property, plant and equipment $ 4,636,865 4,591,229 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 At December 31, 2020 Fair Value Carrying Fair Value Carrying 1.750% Senior Notes, payable June 12, 2027; interest payable annually $ 601,037 566,380 635,664 615,006 3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually 538,545 500,000 561,890 500,000 3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually 615,630 600,000 638,844 600,000 2.00% Senior Notes, payable January 14, 2022; interest payable annually — — 624,680 615,006 2021 Floating Rate Notes, payable September 04, 2021; interest payable quarterly — — 368,738 369,004 U.S. commercial paper 598,000 598,000 — — European commercial paper 15,859 15,859 — — Finance leases and other 53,163 53,163 46,302 46,302 Unamortized debt issuance costs (8,617) (8,617) (11,176) (11,176) Total debt 2,413,617 2,324,785 2,864,942 2,734,142 Less current portion of long term-debt and commercial paper 624,503 624,503 376,989 377,255 Long-term debt, less current portion $ 1,789,114 1,700,282 2,487,953 2,356,887 |
Schedule of Maturities of Long-Term Debt | The aggregate maturities of total debt as of December 31, 2021 are as follows (1) : 2022 $ 624,503 2023 609,994 2024 8,447 2025 7,062 2026 4,790 Thereafter 1,078,606 $ 2,333,402 (1) |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Components of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses are as follows: December 31, 2021 December 31, 2020 Outstanding checks in excess of cash $ 3,005 5,672 Accounts payable, trade 1,228,621 1,016,897 Accrued expenses 666,209 566,052 Product warranties 45,215 54,692 Accrued interest 17,940 30,403 Accrued compensation and benefits 256,428 222,235 Total accounts payable and accrued expenses $ 2,217,418 1,895,951 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease costs for the twelve months ended December 31, 2021, 2020 and 2019, respectively, are as follows: December 31, 2021 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 20,130 104,651 124,781 Short-term 13,415 18,434 31,849 Variable 7,949 30,127 38,076 Sub-leases (529) (1,113) (1,642) $ 40,965 152,099 193,064 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 9,193 — 9,193 Interest on lease liabilities — 772 772 $ 9,193 772 9,965 Net lease costs $ 203,029 December 31, 2020 Cost of Goods Sold Selling, General and Administrative Total Operating lease costs Fixed $ 25,067 102,504 127,571 Short-term 11,633 16,021 27,654 Variable 8,285 30,036 38,321 Sub-leases (411) (741) (1,152) $ 44,574 147,820 192,394 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 6,423 — 6,423 Interest on lease liabilities — 690 690 $ 6,423 690 7,113 Net lease costs $ 199,507 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 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, 2021 At December 31, 2020 Weighted Average Remaining Lease Term Operating Leases 4.7 years 4.5 years Finance Leases 7.2 years 7.7 years Weighted Average Discount Rate Operating Leases 2.4 % 2.8 % Finance Leases 1.3 % 1.4 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: Classification At December 31, 2021 At December 31, 2020 Assets Operating Leases Right of use operating lease assets Right of use operating lease assets $ 389,967 323,138 Finance Leases Property, plant and equipment, gross Property, plant and equipment 67,984 58,170 Accumulated depreciation Accumulated depreciation (19,902) (12,498) Property, plant and equipment, net Property, plant and equipment, net 48,082 45,672 Total lease assets $ 438,049 368,810 Liabilities Operating Leases Other current Current operating lease liabilities $ 104,434 98,042 Non-current Non-current operating lease liabilities 297,390 234,726 Total operating liabilities 401,824 332,768 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 9,560 8,025 Long-term debt Long-term debt, less current portion 38,390 38,098 Total finance liabilities 47,950 46,123 Total lease liabilities $ 449,774 378,891 |
Maturity of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2021 are as follows: Year ending December 31, Finance Operating Total 2022 $ 10,223 120,754 130,977 2023 9,393 98,769 108,162 2024 7,696 73,884 81,580 2025 6,210 56,853 63,063 2026 4,624 40,452 45,076 Thereafter 13,112 36,489 49,601 Total lease payments 51,258 427,201 478,459 Less imputed interest 3,308 25,377 Present value, Total $ 47,950 401,824 |
Maturity of Finance Lease Liabilities | Maturities of lease liabilities as of December 31, 2021 are as follows: Year ending December 31, Finance Operating Total 2022 $ 10,223 120,754 130,977 2023 9,393 98,769 108,162 2024 7,696 73,884 81,580 2025 6,210 56,853 63,063 2026 4,624 40,452 45,076 Thereafter 13,112 36,489 49,601 Total lease payments 51,258 427,201 478,459 Less imputed interest 3,308 25,377 Present value, Total $ 47,950 401,824 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, December 31, December 31, Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 122,886 124,708 127,213 Operating cash flows from finance leases 772 690 349 Financing cash flows from finance leases 9,289 6,386 3,975 Right of use assets obtained in exchange for lease obligations: Operating leases 186,605 110,036 133,959 Finance leases 13,395 18,248 20,464 Amortization: Amortization of right of use operating lease assets (1) 115,650 113,898 109,884 (1) Amortization of Right of use operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of RSUs Under the Long-Term Incentive Plans | A summary of the Company’s RSUs under the Company’s long-term incentive plans as of December 31, 2021, and changes during the year then ended is presented as follows: Shares Weighted Weighted Aggregate Restricted Stock Units outstanding, December 31, 2020 375 $ 122.84 Granted 194 176.73 Released (105) 192.78 Forfeited (25) 145.76 Restricted Stock Units outstanding, December 31, 2021 439 $ 128.62 1.3 $ 79,950 Expected to vest as of December 31, 2021 418 1.3 $ 76,235 |
Additional Information for RSUs Under the Long-Term Incentive Plans | Additional information relating to the Company’s RSUs under the Company’s long-term incentive plans are as follows: 2021 2020 2019 Restricted Stock Units outstanding, January 1 375 362 446 Granted 194 192 187 Released (105) (146) (230) Forfeited (25) (33) (41) Restricted Stock Units outstanding, December 31 439 375 362 Expected to vest as of December 31 418 361 356 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of Other Expense (Income) | Following is a summary of other expense (income): 2021 2020 2019 Foreign currency losses (gains), net $ 6,298 7,815 (7,190) Release of indemnification asset — — (304) Impairment of joint venture in Brazil — 3,599 — Impairment of net investment in a manufacturer and distributor of Ceramic tile in China (1) — — 59,906 Resolution of foreign non-income tax contingencies (6,211) — — All other, net (12,321) (12,165) (16,005) Total other expense (income), net $ (12,234) (751) 36,407 (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 (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: 2021 2020 2019 United States $ 380,632 94,829 163,764 Foreign 909,361 489,545 585,781 Earnings before income taxes $ 1,289,993 584,374 749,545 |
Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 consists of the following: 2021 2020 2019 Current income taxes: U.S. federal $ 93,085 (33,821) 19,936 State and local 24,904 7,794 12,659 Foreign 143,385 72,350 80,221 Total current 261,374 46,323 112,816 Deferred income taxes: U.S. federal (2,655) 14,533 11,993 State and local 13,306 112 15,371 Foreign (15,580) 7,679 (135,206) Total deferred (4,929) 22,324 (107,842) Total income tax expense $ 256,445 68,647 4,974 |
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: 2021 2020 2019 Income taxes at statutory rate $ 270,898 122,719 157,404 State and local income taxes, net of federal income tax benefit 25,658 8,081 22,185 Foreign income taxes (a) (34,981) (57,898) (17,276) Change in valuation allowance 5,947 35,381 (21,975) European Restructuring (b) — — (136,194) Loss on previously taxed earnings — (10,346) — Carryback rate differential (c) (15,743) (33,739) — Global intangible low-taxed income 34,400 2,500 6,000 Italy Step-up Adjustment (d) (22,163) — — Tax contingencies and audit settlements, net 12,505 6,779 6,686 Other, net (20,076) (4,830) (11,856) $ 256,445 68,647 4,974 (a) Foreign income taxes include statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. (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. (c) The CARES Act permits the Company to carry back its 2020 U.S. taxable loss to a tax year before the corporate income tax rate was lowered by the Tax Cuts and Jobs Act. (d) The company realized a one-time Italian step-up benefit allowing for the realignment of tax asset values. |
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, 2021 and 2020 are presented below: 2021 2020 Deferred tax assets: Accounts receivable $ 16,550 14,384 Inventories 38,388 44,597 Employee benefits 54,865 39,526 Accrued expenses and other 73,983 103,892 Deductible state tax and interest benefit 7,206 4,042 Intangibles 135,777 152,499 Lease liabilities 106,753 91,359 Federal, foreign and state net operating losses and credits 408,434 433,822 Gross deferred tax assets 841,956 884,121 Valuation allowance (236,357) (267,838) Net deferred tax assets 605,599 616,283 Deferred tax liabilities: Inventories (23,484) (17,403) Plant and equipment (467,451) (489,240) Intangibles (188,417) (197,009) Right of use assets (101,935) (87,351) Prepaids (45,077) (56,140) Other liabilities (67,914) (46,121) Gross deferred tax liabilities (894,278) (893,264) Net deferred tax liability $ (288,679) (276,981) |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2021 2020 Balance as of January 1 $ 1,388,391 1,260,970 Additions based on tax positions related to the current year 458 1,694 Additions for tax positions of acquired companies — — Additions for tax positions of prior years 18,001 7,663 Transition tax planning initiatives — — Reductions resulting from the lapse of the statute of limitations (3,336) (1,239) Reductions due to Luxembourg tax rate change — — Settlements with taxing authorities — (497) Effects of foreign currency translation (106,991) 119,800 Balance as of December 31 $ 1,296,523 1,388,391 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Disclosures of Cash Flow Information | Supplemental disclosures of cash flow information are as follows: 2021 2020 2019 Net cash paid during the years for: Interest $ 75,514 44,584 45,241 Income taxes $ 323,718 106,891 123,974 Supplemental schedule of non-cash investing and financing activities: Unpaid property plant and equipment in accounts payable and accrued expenses $ 117,084 90,767 104,823 Fair value of net assets acquired in acquisition $ 176,924 — 107,290 Liabilities assumed in acquisition (52,955) — (31,053) $ 123,969 — 76,237 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information is as follows: 2021 2020 2019 Assets: Global Ceramic Segment $ 5,160,776 5,250,069 5,419,896 Flooring NA Segment 4,125,960 3,594,976 3,823,654 Flooring ROW Segment 4,361,741 4,194,447 3,925,246 Corporate and intersegment eliminations 576,040 1,288,259 217,884 Total $ 14,224,517 14,327,751 13,386,680 Geographic net sales: United States $ 6,181,628 5,530,407 5,822,593 Europe 3,117,892 2,486,770 2,532,239 Russia 450,010 385,830 385,395 Other 1,451,083 1,149,190 1,230,445 Total $ 11,200,613 9,552,197 9,970,672 Long-lived assets: (1) United States $ 3,334,256 3,303,197 3,391,676 Belgium 1,783,259 1,808,571 1,645,104 Other 2,127,259 2,130,292 2,232,164 Total $ 7,244,774 7,242,060 7,268,944 Net sales by product categories: Ceramic & Stone $ 3,938,654 3,457,203 3,686,645 Carpet & Resilient 4,294,042 3,735,888 3,921,769 Laminate & Wood 1,852,766 1,538,967 1,501,077 Other (2) 1,115,151 820,139 861,181 Total $ 11,200,613 9,552,197 9,970,672 Net sales: Global Ceramic Segment $ 3,917,319 3,432,756 3,631,142 Flooring NA Segment 4,116,405 3,594,075 3,843,714 Flooring ROW Segment 3,166,889 2,525,366 2,495,816 Total $ 11,200,613 9,552,197 9,970,672 (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. 2021 2020 2019 Operating income (loss): Global Ceramic Segment $ 403,135 167,731 335,639 Flooring NA Segment 407,577 147,442 177,566 Flooring ROW Segment 571,126 366,934 353,666 Corporate and intersegment eliminations (46,827) (46,105) (39,647) Total $ 1,335,011 636,002 827,224 Depreciation and amortization: Global Ceramic Segment $ 210,634 215,488 211,679 Flooring NA Segment 211,872 214,599 204,689 Flooring ROW Segment 156,700 164,701 145,417 Corporate 12,505 12,719 14,667 Total $ 591,711 607,507 576,452 Capital expenditures (excluding acquisitions): Global Ceramic Segment $ 167,224 121,418 244,026 Flooring NA Segment 327,691 186,179 148,820 Flooring ROW Segment 164,318 113,378 147,118 Corporate 16,887 4,582 5,498 Total $ 676,120 425,557 545,462 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | Oct. 19, 2021USD ($) | Oct. 19, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Jun. 09, 2015EUR (€) |
Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 268,895 | $ 768,625 | |||||
Advertising and promotion expenses | 139,538 | 105,974 | $ 130,207 | ||||
Co-op advertising expenses | 22,092 | 16,087 | 11,418 | ||||
Repayments of senior debt | $ 932,252 | 326,904 | 0 | ||||
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 | $ 67,044 | 56,241 | 57,354 | ||||
Employer contributions to employee benefit plan | 23,884 | 13,509 | 23,008 | ||||
Projected benefit obligation | 80,324 | 86,722 | |||||
Projected plan assets | 65,118 | 68,413 | |||||
Funded status of plan | 15,206 | 18,309 | |||||
Right-of-use asset | 389,967 | 323,138 | |||||
Lease liability | 401,824 | 332,768 | |||||
2.00% senior notes due January 14, 2022 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Aggregate principal amount of debts | € | € 500,000 | € 500,000,000 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | |||||
Change in U.S. dollar value of euro denominated debt | $ (35,363) | 54,907 | (12,049) | ||||
Change in U.S. dollar value of euro denominated debt, net of tax | $ (26,928) | 41,708 | $ (9,153) | ||||
Repayments of senior debt | € | € 500,000,000 | ||||||
Accounting Standards Update 2016-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Right-of-use asset | $ 328,169 | ||||||
Lease liability | $ 332,286 | ||||||
Accumulated other comprehensive income (loss) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Funded status of plan | 8,866 | 11,304 | |||||
Other noncurrent liabilities | |||||||
Significant Accounting Policies [Line Items] | |||||||
Funded status of plan | $ 6,340 | 7,005 | |||||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Finite intangible assets useful life (years) | 7 years | ||||||
Term of lease contracts (in years) | 1 year | ||||||
Term of lease contracts, majority (in years) | 1 year | ||||||
Lease extensions (in years) | 3 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 (years) | 20 years | ||||||
Term of lease contracts (in years) | 60 years | ||||||
Term of lease contracts, majority (in years) | 10 years | ||||||
Lease extensions (in years) | 10 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 | $ 200,501 | $ 436,948 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Computations Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Net earnings available to common stockholders | $ 1,033,159 | $ 515,595 | $ 744,211 |
Weighted-average common shares outstanding-basic and diluted: | |||
Weighted-average common shares outstanding-basic (in shares) | 68,852 | 71,214 | 71,986 |
Add weighted-average dilutive potential common shares - options and RSU’s to purchase common shares, net (in shares) | 293 | 187 | 278 |
Weighted-average common shares outstanding-diluted (in shares) | 69,145 | 71,401 | 72,264 |
Earnings per share attributable to Mohawk Industries, Inc. | |||
Basic earnings per share (usd per share) | $ 15.01 | $ 7.24 | $ 10.34 |
Diluted earnings per share (usd per share) | $ 14.94 | $ 7.22 | $ 10.30 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 8,541,158 | $ 8,126,448 | $ 7,440,059 |
Ending balance | 8,428,216 | 8,541,158 | 8,126,448 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (680,255) | (753,108) | (782,102) |
Current period other comprehensive income (loss) before reclassifications | (278,944) | 72,853 | 28,994 |
Ending balance | (959,199) | (680,255) | (753,108) |
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (14,890) | (12,716) | (9,506) |
Current period other comprehensive income (loss) before reclassifications | 7,137 | (2,174) | (3,210) |
Ending balance | (7,753) | (14,890) | (12,716) |
AOCI including portion attributable to noncontrolling interest | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (695,145) | (765,824) | (791,608) |
Current period other comprehensive income (loss) before reclassifications | (271,807) | 70,679 | 25,784 |
Ending balance | $ (966,952) | $ (695,145) | $ (765,824) |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Nov. 02, 2021USD ($) | Sep. 07, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($)business | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||||
Preliminary goodwill allocation | $ 2,607,909 | $ 2,570,027 | $ 2,650,831 | ||
Distribution Companies in the Netherlands and Czech Republic | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | 76,237 | ||||
Preliminary goodwill allocation | 38,366 | ||||
Intangible assets subject to amortization | $ 12,789 | ||||
Flooring ROW Segment | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | 123,969 | ||||
Preliminary goodwill allocation | 55,258 | ||||
Intangible assets subject to amortization | 19,946 | ||||
Number of acquisitions | business | 2 | ||||
Flooring ROW Segment | Insulation Manufacturer | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | $ 67,285 | ||||
Flooring ROW Segment | MDF Production Plant | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | $ 46,348 | ||||
Flooring ROW Segment | Other 2021 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Preliminary goodwill allocation | 1,672 | ||||
Intangible assets subject to amortization | $ 5,596 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liability | $ 65,744,000 | $ 39,466,000 | |
Revenue recognized related to contract liabilities | 0 | 0 | $ 0 |
Capitalized contract cost | 49,644,000 | 59,847,000 | |
Amortization of capitalized contract costs | $ 61,681,000 | $ 68,201,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 11,200,613 | $ 9,552,197 | $ 9,970,672 |
Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,938,654 | 3,457,203 | 3,686,645 |
Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,294,042 | 3,735,888 | 3,921,769 |
Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,852,766 | 1,538,967 | 1,501,077 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,115,151 | 820,139 | 861,181 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,181,628 | 5,530,407 | 5,822,593 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,117,892 | 2,486,770 | 2,532,239 |
Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 450,010 | 385,830 | 385,395 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,451,083 | 1,149,190 | 1,230,445 |
Operating segments | Global Ceramic Segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,917,319 | 3,432,756 | 3,631,142 |
Operating segments | Global Ceramic Segment | Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,903,597 | 3,425,672 | 3,631,142 |
Operating segments | Global Ceramic Segment | Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 13,722 | 7,084 | 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 | 2,193,234 | 2,050,470 | 2,131,029 |
Operating segments | Global Ceramic Segment | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 849,247 | 699,715 | 711,762 |
Operating segments | Global Ceramic Segment | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 299,621 | 262,846 | 269,142 |
Operating segments | Global Ceramic Segment | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 575,217 | 419,725 | 519,209 |
Operating segments | Flooring NA Segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,116,405 | 3,594,075 | 3,843,714 |
Operating segments | Flooring NA Segment | Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 35,057 | 31,531 | 55,503 |
Operating segments | Flooring NA Segment | Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,287,533 | 2,871,050 | 3,136,474 |
Operating segments | Flooring NA Segment | Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 793,815 | 691,494 | 651,737 |
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 | 3,978,146 | 3,477,556 | 3,688,691 |
Operating segments | Flooring NA Segment | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,731 | 1,506 | 6,922 |
Operating segments | Flooring NA Segment | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 94 | 50 | 66 |
Operating segments | Flooring NA Segment | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 135,434 | 114,963 | 148,035 |
Operating segments | Flooring ROW Segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,166,889 | 2,525,366 | 2,495,816 |
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 | 992,787 | 857,754 | 785,295 |
Operating segments | Flooring ROW Segment | Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,058,951 | 847,473 | 849,340 |
Operating segments | Flooring ROW Segment | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,115,151 | 820,139 | 861,181 |
Operating segments | Flooring ROW Segment | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 10,248 | 2,381 | 2,873 |
Operating segments | Flooring ROW Segment | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,265,914 | 1,785,549 | 1,813,555 |
Operating segments | Flooring ROW Segment | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 150,295 | 122,934 | 116,187 |
Operating segments | Flooring ROW Segment | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 740,432 | $ 614,502 | $ 563,201 |
Restructuring, Acquisition Tr_3
Restructuring, Acquisition Transaction and Integration-Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 19,200 | $ 125,357 | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 17,899 | 101,230 | $ 84,844 |
Acquisition integration-related costs | 497 | 1,153 | 3,458 |
Restructuring and acquisition integration-related costs | 18,396 | 102,383 | 88,302 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 1,301 | 24,127 | 5,497 |
Acquisition transaction-related costs | 2,372 | 213 | 1,502 |
Acquisition integration-related costs | 1,568 | 2,127 | 5,871 |
Restructuring and acquisition integration-related costs | $ 5,241 | $ 26,467 | $ 12,870 |
Restructuring, Acquisition Tr_4
Restructuring, Acquisition Transaction and Integration-Related Costs - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 12,305 | $ 4,259 | |
Provision | 19,200 | 125,357 | |
Cash payments | (19,329) | (38,447) | |
Non-cash items | (9,547) | (78,864) | |
Ending balance | 2,629 | 12,305 | $ 4,259 |
Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 17,899 | 101,230 | 84,844 |
Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1,301 | 24,127 | 5,497 |
Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 21 | |
Provision | 189 | 2,466 | |
Cash payments | 0 | (21) | |
Non-cash items | (189) | (2,466) | |
Ending balance | 0 | 0 | 21 |
Lease impairments | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Lease impairments | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 189 | 2,466 | |
Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Provision | 8,102 | 69,463 | |
Cash payments | 0 | 0 | |
Non-cash items | (8,102) | (69,463) | |
Ending balance | 0 | 0 | 0 |
Asset write-downs (gains on disposals) | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 6,721 | 64,415 | |
Asset write-downs (gains on disposals) | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1,381 | 5,048 | |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 11,576 | 4,122 | |
Provision | (1,051) | 26,301 | |
Cash payments | (8,507) | (20,001) | |
Non-cash items | (384) | 1,154 | |
Ending balance | 1,634 | 11,576 | 4,122 |
Severance | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (370) | 13,949 | |
Severance | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (681) | 12,352 | |
Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 729 | 116 | |
Provision | 11,960 | 27,127 | |
Cash payments | (10,822) | (18,425) | |
Non-cash items | (872) | (8,089) | |
Ending balance | 995 | 729 | $ 116 |
Other restructuring costs | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 11,548 | 22,866 | |
Other restructuring costs | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 412 | 4,261 | |
Corporate | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1,212 | 5,593 | |
Corporate | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Corporate | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1,017 | 3,685 | |
Corporate | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 195 | 1,908 | |
Corporate | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Operating segments | Global Ceramic Segment | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 2,626 | 43,116 | |
Operating segments | Global Ceramic Segment | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 226 | 2,239 | |
Operating segments | Global Ceramic Segment | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 1,458 | 19,963 | |
Operating segments | Global Ceramic Segment | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 134 | 13,987 | |
Operating segments | Global Ceramic Segment | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 808 | 6,927 | |
Operating segments | Flooring NA Segment | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 16,888 | 51,598 | |
Operating segments | Flooring NA Segment | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (37) | 227 | |
Operating segments | Flooring NA Segment | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 7,595 | 32,902 | |
Operating segments | Flooring NA Segment | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (284) | 4,660 | |
Operating segments | Flooring NA Segment | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 9,614 | 13,809 | |
Operating segments | Flooring ROW Segment | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (1,526) | 25,050 | |
Operating segments | Flooring ROW Segment | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Operating segments | Flooring ROW Segment | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (1,968) | 12,913 | |
Operating segments | Flooring ROW Segment | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | (1,096) | 5,746 | |
Operating segments | Flooring ROW Segment | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | $ 1,538 | $ 6,391 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements (Details) - Fair value, recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | $ 571,741 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | 197,835 |
Level 2 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | $ 323,000 | $ 0 |
Receivables, net - Net Componen
Receivables, net - Net Components Of Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Customers, trade | $ 1,721,584 | $ 1,591,503 |
Income tax receivable | 73,727 | 112,580 |
Other | 117,823 | 89,092 |
Receivables, gross | 1,913,134 | 1,793,175 |
Less: allowance for discounts, returns, claims and doubtful accounts | 73,149 | 83,682 |
Receivables, net | $ 1,839,985 | $ 1,709,493 |
Receivables, net - Allowances F
Receivables, net - Allowances For Discounts, Returns, Claims And Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 83,682 | $ 61,921 | $ 74,718 |
Acquisitions | 644 | 0 | 382 |
Additions charged to net sales or costs and expenses | 357,635 | 384,403 | 387,253 |
Deductions | 368,812 | 362,642 | 400,432 |
Balance at end of year | $ 73,149 | $ 83,682 | $ 61,921 |
Inventories - Net Components of
Inventories - Net Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,677,707 | $ 1,372,234 |
Work in process | 144,004 | 126,231 |
Raw materials | 569,961 | 414,555 |
Total inventories | $ 2,391,672 | $ 1,913,020 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill, impairment loss | $ 0 | ||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 3,978,256,000 | $ 3,897,452,000 | |
Accumulated impairments losses, beginning balance | (1,327,425,000) | (1,327,425,000) | |
Goodwill | 2,607,909,000 | 2,650,831,000 | $ 2,570,027,000 |
Goodwill recognized during the period | 56,930,000 | (9,642,000) | |
Currency translation during the period | (99,852,000) | 90,446,000 | |
Goodwill, ending balance | 3,935,334,000 | 3,978,256,000 | |
Accumulated impairments losses, ending balance | (1,327,425,000) | (1,327,425,000) | |
Goodwill, net, ending balance | 2,607,909,000 | 2,650,831,000 | 2,570,027,000 |
Flooring ROW Segment | |||
Goodwill [Roll Forward] | |||
Goodwill | 55,258,000 | ||
Goodwill, net, ending balance | 55,258,000 | ||
Operating segments | Global Ceramic Segment | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,579,491,000 | 1,583,576,000 | |
Accumulated impairments losses, beginning balance | (531,930,000) | (531,930,000) | |
Goodwill | 1,031,337,000 | 1,047,561,000 | 1,051,646,000 |
Goodwill recognized during the period | 0 | 0 | |
Currency translation during the period | (16,224,000) | (4,085,000) | |
Goodwill, ending balance | 1,563,267,000 | 1,579,491,000 | |
Accumulated impairments losses, ending balance | (531,930,000) | (531,930,000) | |
Goodwill, net, ending balance | 1,031,337,000 | 1,047,561,000 | 1,051,646,000 |
Operating segments | Flooring NA Segment | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 874,198,000 | 874,198,000 | |
Accumulated impairments losses, beginning balance | (343,054,000) | (343,054,000) | |
Goodwill | 531,144,000 | 531,144,000 | 531,144,000 |
Goodwill recognized during the period | 0 | 0 | |
Currency translation during the period | 0 | 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 | 531,144,000 |
Operating segments | Flooring ROW Segment | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,524,567,000 | 1,439,678,000 | |
Accumulated impairments losses, beginning balance | (452,441,000) | (452,441,000) | |
Goodwill | 1,045,428,000 | 1,072,126,000 | 987,237,000 |
Goodwill recognized during the period | 56,930,000 | (9,642,000) | |
Currency translation during the period | (83,628,000) | 94,531,000 | |
Goodwill, ending balance | 1,497,869,000 | 1,524,567,000 | |
Accumulated impairments losses, ending balance | (452,441,000) | (452,441,000) | |
Goodwill, net, ending balance | $ 1,045,428,000 | $ 1,072,126,000 | $ 987,237,000 |
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, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite life assets not subject to amortization, beginning balance | $ 727,268 | $ 702,732 |
Currency translation during the year | (35,088) | 24,536 |
Intangible assets acquired during the year | 2,725 | |
Indefinite life assets not subject to amortization, ending balance | $ 694,905 | $ 727,268 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | $ 224,339 | $ 226,147 | |
Intangible assets acquired during the year | 22,817 | 12,789 | |
Amortization during the year | (29,280) | (28,891) | $ (27,613) |
Currency translation during the year | (12,801) | 14,294 | |
Intangible assets subject to amortization, ending balance | 205,075 | 224,339 | 226,147 |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 218,539 | 218,441 | |
Intangible assets acquired during the year | 18,189 | 12,789 | |
Amortization during the year | (27,820) | (26,612) | |
Currency translation during the year | (12,479) | 13,921 | |
Intangible assets subject to amortization, ending balance | 196,429 | 218,539 | 218,441 |
Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 144 | 2,228 | |
Intangible assets acquired during the year | 4,628 | 0 | |
Amortization during the year | (639) | (2,195) | |
Currency translation during the year | (211) | 111 | |
Intangible assets subject to amortization, ending balance | 3,922 | 144 | 2,228 |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets subject to amortization, beginning balance | 5,656 | 5,478 | |
Intangible assets acquired during the year | 0 | 0 | |
Amortization during the year | (821) | (84) | |
Currency translation during the year | (111) | 262 | |
Intangible assets subject to amortization, ending balance | $ 4,724 | $ 5,656 | $ 5,478 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Net Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets, Net: | |||
Cost | $ 980,310 | $ 900,937 | |
Acquisitions | 22,817 | 12,789 | |
Currency translation | (59,828) | 66,584 | |
Accumulated amortization | 738,224 | 755,971 | |
Net Value | 205,075 | 224,339 | $ 226,147 |
Customer relationships | |||
Intangible Assets, Net: | |||
Cost | 699,795 | 645,206 | |
Acquisitions | 18,189 | 12,789 | |
Currency translation | (37,807) | 41,800 | |
Accumulated amortization | 483,748 | 481,256 | |
Net Value | 196,429 | 218,539 | 218,441 |
Patents | |||
Intangible Assets, Net: | |||
Cost | 273,570 | 249,100 | |
Acquisitions | 4,628 | 0 | |
Currency translation | (21,862) | 24,470 | |
Accumulated amortization | 252,414 | 273,426 | |
Net Value | 3,922 | 144 | $ 2,228 |
Other | |||
Intangible Assets, Net: | |||
Cost | 6,945 | 6,631 | |
Acquisitions | 0 | 0 | |
Currency translation | (159) | 314 | |
Accumulated amortization | 2,062 | 1,289 | |
Net Value | $ 4,724 | $ 5,656 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 29,280 | $ 28,891 | $ 27,613 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 28,747 |
2023 | 27,113 |
2024 | 26,390 |
2025 | 26,195 |
2026 | $ 26,048 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 9,250,587 | $ 8,905,266 |
Less: accumulated depreciation | 4,613,722 | 4,314,037 |
Net property, plant and equipment | 4,636,865 | 4,591,229 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 465,240 | 484,450 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,862,463 | 1,856,859 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 6,023,087 | 5,987,272 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 158,315 | 164,027 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 102,766 | 103,172 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 638,716 | $ 309,486 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest included in property, plant and equipment | $ 9,082 | $ 6,362 | $ 7,214 |
Depreciation expense | 558,818 | 574,095 | $ 544,733 |
Finance leases | 67,984 | 58,170 | |
Finance leases, accumulated depreciation | $ 19,902 | $ 12,498 |
Long-Term Debt - Senior Credit
Long-Term Debt - Senior Credit Facility (Details) | Oct. 18, 2019USD ($) | Dec. 31, 2021USD ($) | May 07, 2020 | Dec. 31, 2019USD ($) |
Senior Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | $ 1,800,000,000 | |||
Additional maturity period extended | 1 year | |||
Commitment fee (as a percent) | 0.09% | |||
Unamortized financing costs | $ 3,405,000 | |||
Utilized borrowings under credit facility | $ 615,291,000 | |||
Available amount under credit facility | 1,184,709,000 | |||
Senior Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee (as a percent) | 0.09% | |||
Consolidated interest coverage ratio | 3 | |||
Senior Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee (as a percent) | 0.20% | |||
Consolidated net leverage ratio | 3.75 | 4.75 | ||
Senior Credit Facility | Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Utilized borrowings under credit facility | 0 | |||
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 | $ 1,432,000 | |||
Senior Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 1.00% | |||
Senior Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 1.00% | |||
Senior Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 1.75% | |||
Senior Credit Facility | Federal Funds Effective Swap Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 0.50% | |||
Senior Credit Facility | Monthly LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 1.00% | 0.00% | ||
Senior Credit Facility | Monthly LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 0.00% | |||
Senior Credit Facility | Monthly LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on debt instrument (as a percent) | 0.75% | |||
2019 Senior Secured Credit Facility Amendment | ||||
Line of Credit Facility [Line Items] | ||||
Unamortized financing costs | $ 2,264,000 |
Long-Term Debt - Commercial Pap
Long-Term Debt - Commercial Paper (Details) - USD ($) | Jul. 31, 2015 | Feb. 28, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 18, 2019 |
United States | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 20 days 11 hours 2 minutes | ||||
Maximum borrowing capacity under credit facility | $ 1,800,000,000 | ||||
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 | 25 days 3 hours 25 minutes 55 seconds | |||
Carrying Value | United States | |||||
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 598,000,000 | $ 0 | |||
Carrying Value | United States | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate on debt | 0.37% | ||||
Carrying Value | Europe | |||||
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 15,859,000 | $ 0 | |||
Carrying Value | Europe | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate on debt | (0.43%) |
Long-Term Debt - Senior Notes a
Long-Term Debt - Senior Notes and Term Loan (Details) | Oct. 19, 2021EUR (€) | Sep. 07, 2021EUR (€) | Jun. 12, 2020USD ($) | May 18, 2020EUR (€) | May 14, 2020USD ($) | Apr. 07, 2020USD ($) | Sep. 04, 2019USD ($) | May 18, 2018USD ($) | Jun. 09, 2015USD ($) | Jan. 31, 2013USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 12, 2020EUR (€) | Sep. 04, 2019EUR (€) | May 18, 2018EUR (€) | Jun. 09, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||||||||||||
Debt issuance costs | $ 0 | $ 11,413,000 | $ 3,028,000 | ||||||||||||||
Repayments of senior debt | $ 932,252,000 | $ 326,904,000 | $ 0 | ||||||||||||||
1.750% senior notes due June 12, 2027 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of debts | € | € 500,000,000 | ||||||||||||||||
Interest rate (as a percent) | 1.75% | ||||||||||||||||
Debt issuance costs | $ 4,400,000 | ||||||||||||||||
3.625% senior notes, payable May 15, 2030; interest payable semi-annually | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of debts | $ 500,000,000 | ||||||||||||||||
Interest rate (as a percent) | 3.625% | ||||||||||||||||
Debt issuance costs | $ 5,476,000 | ||||||||||||||||
Floating rate notes due September 04, 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of debts | € | € 300,000,000 | ||||||||||||||||
Debt issuance costs | $ 754,000 | ||||||||||||||||
Issuance premium received | € | € 744,000 | ||||||||||||||||
Repayments of senior debt | € | € 300,000,000 | ||||||||||||||||
Floating rate notes due May 18, 2020 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of debts | € | € 300,000,000 | ||||||||||||||||
Debt issuance costs | $ 890,000 | ||||||||||||||||
Repayments of senior debt | € | € 300,000,000 | ||||||||||||||||
2.00% senior notes due January 14, 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of debts | € | € 500,000 | € 500,000,000 | |||||||||||||||
Interest rate (as a percent) | 2.00% | 2.00% | |||||||||||||||
Debt issuance costs | $ 4,218,000 | ||||||||||||||||
Repayments of senior debt | € | € 500,000,000 | ||||||||||||||||
3.85% senior notes due February 1, 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of debts | $ 600,000,000 | ||||||||||||||||
Interest rate (as a percent) | 3.85% | ||||||||||||||||
Debt issuance costs | $ 6,000,000 | ||||||||||||||||
Secured Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt issuance costs | $ 1,088,000 | ||||||||||||||||
Securitization agreement, maximum borrowing capacity | $ 500,000,000 | ||||||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Floating rate notes due September 04, 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on debt instrument (as a percent) | 0.20% | ||||||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Floating rate notes due May 18, 2020 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on debt instrument (as a percent) | 0.30% |
Long-Term Debt - Fair Value and
Long-Term Debt - Fair Value and Carrying Value of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less current portion of long term debt and commercial paper | $ 624,503 | $ 377,255 |
Long-term debt, less current portion | $ 2,333,402 | |
1.750% senior notes due June 12, 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate (as a percent) | 1.75% | |
3.625% senior notes, payable May 15, 2030; interest payable semi-annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate (as a percent) | 3.625% | |
3.85% senior notes due February 1, 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate (as a percent) | 3.85% | |
2.00% senior notes due January 14, 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate (as a percent) | 2.00% | |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases and other | $ 53,163 | 46,302 |
Unamortized debt issuance costs | (8,617) | (11,176) |
Total debt | 2,413,617 | 2,864,942 |
Less current portion of long term debt and commercial paper | 624,503 | 376,989 |
Long-term debt, less current portion | 1,789,114 | 2,487,953 |
Fair Value | 1.750% senior notes due June 12, 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 601,037 | 635,664 |
Fair Value | 3.625% senior notes, payable May 15, 2030; interest payable semi-annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 538,545 | 561,890 |
Fair Value | 3.85% senior notes due February 1, 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 615,630 | 638,844 |
Fair Value | 2.00% senior notes due January 14, 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 624,680 |
Fair Value | Floating rate notes due September 04, 2021 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 368,738 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases and other | 53,163 | 46,302 |
Unamortized debt issuance costs | (8,617) | (11,176) |
Total debt | 2,324,785 | 2,734,142 |
Less current portion of long term debt and commercial paper | 624,503 | 377,255 |
Long-term debt, less current portion | 1,700,282 | 2,356,887 |
Carrying Value | 1.750% senior notes due June 12, 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 566,380 | 615,006 |
Carrying Value | 3.625% senior notes, payable May 15, 2030; interest payable semi-annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 500,000 | 500,000 |
Carrying Value | 3.85% senior notes due February 1, 2023 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 600,000 | 600,000 |
Carrying Value | 2.00% senior notes due January 14, 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 615,006 |
Carrying Value | Floating rate notes due September 04, 2021 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 369,004 |
United States | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 598,000 | 0 |
United States | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 598,000 | 0 |
Europe | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 15,859 | 0 |
Europe | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | $ 15,859 | $ 0 |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities Of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 624,503 |
2023 | 609,994 |
2024 | 8,447 |
2025 | 7,062 |
2026 | 4,790 |
Thereafter | 1,078,606 |
Aggregate maturities of long-term debt | $ 2,333,402 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Components of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Outstanding checks in excess of cash | $ 3,005 | $ 5,672 |
Accounts payable, trade | 1,228,621 | 1,016,897 |
Accrued expenses | 666,209 | 566,052 |
Product warranties | 45,215 | 54,692 |
Accrued interest | 17,940 | 30,403 |
Accrued compensation and benefits | 256,428 | 222,235 |
Total accounts payable and accrued expenses | $ 2,217,418 | $ 1,895,951 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Amount of leases not yet commenced | $ 10,969 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease costs | |||
Fixed | $ 124,781 | $ 127,571 | $ 127,990 |
Short-term | 31,849 | 27,654 | 23,658 |
Variable | 38,076 | 38,321 | 37,975 |
Sub-leases | (1,642) | (1,152) | (848) |
Operating lease costs | 193,064 | 192,394 | 188,775 |
Finance lease costs | |||
Amortization of leased assets | 9,193 | 6,423 | 4,015 |
Interest on lease liabilities | 772 | 690 | 491 |
Finance lease costs | 9,965 | 7,113 | 4,506 |
Net lease costs | 203,029 | 199,507 | 193,281 |
Cost of Sales | |||
Operating lease costs | |||
Fixed | 20,130 | 25,067 | 30,002 |
Short-term | 13,415 | 11,633 | 9,725 |
Variable | 7,949 | 8,285 | 8,123 |
Sub-leases | (529) | (411) | (311) |
Operating lease costs | 40,965 | 44,574 | 47,539 |
Selling, general and administrative expenses | |||
Operating lease costs | |||
Fixed | 104,651 | 102,504 | 97,988 |
Short-term | 18,434 | 16,021 | 13,933 |
Variable | 30,127 | 30,036 | 29,852 |
Sub-leases | (1,113) | (741) | (537) |
Operating lease costs | 152,099 | 147,820 | 141,236 |
Depreciation and Amortization | |||
Finance lease costs | |||
Amortization of leased assets | 9,193 | 6,423 | 4,015 |
Interest on lease liabilities | 0 | 0 | 0 |
Finance lease costs | 9,193 | 6,423 | 4,015 |
Interest | |||
Finance lease costs | |||
Amortization of leased assets | 0 | 0 | 0 |
Interest on lease liabilities | 772 | 690 | 491 |
Finance lease costs | $ 772 | $ 690 | $ 491 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Right of use operating lease assets | $ 389,967 | $ 323,138 |
Finance Leases | ||
Property, plant and equipment, gross | 67,984 | 58,170 |
Accumulated depreciation | (19,902) | (12,498) |
Property, plant and equipment, net | 48,082 | 45,672 |
Total lease assets | $ 438,049 | $ 368,810 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating Leases | ||
Other current | $ 104,434 | $ 98,042 |
Non-current | 297,390 | 234,726 |
Total operating liabilities | 401,824 | 332,768 |
Finance Leases | ||
Short-term debt | 9,560 | 8,025 |
Long-term debt | 38,390 | 38,098 |
Total finance liabilities | 47,950 | 46,123 |
Total lease liabilities | $ 449,774 | $ 378,891 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Less current portion of long term debt and commercial paper | Less current portion of long term debt and commercial paper |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, less current portion | Long-term debt, less current portion |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Leases | ||
2022 | $ 10,223 | |
2023 | 9,393 | |
2024 | 7,696 | |
2025 | 6,210 | |
2026 | 4,624 | |
Thereafter | 13,112 | |
Total lease payments | 51,258 | |
Less imputed interest | 3,308 | |
Present value, Total | 47,950 | $ 46,123 |
Operating Leases | ||
2022 | 120,754 | |
2023 | 98,769 | |
2024 | 73,884 | |
2025 | 56,853 | |
2026 | 40,452 | |
Thereafter | 36,489 | |
Total lease payments | 427,201 | |
Less imputed interest | 25,377 | |
Present value, Total | 401,824 | $ 332,768 |
Total | ||
2022 | 130,977 | |
2023 | 108,162 | |
2024 | 81,580 | |
2025 | 63,063 | |
2026 | 45,076 | |
Thereafter | 49,601 | |
Total lease payments | $ 478,459 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted Average Remaining Lease Term | ||
Operating Leases | 4 years 8 months 12 days | 4 years 6 months |
Finance Leases | 7 years 2 months 12 days | 7 years 8 months 12 days |
Weighted Average Discount Rate | ||
Operating Leases | 2.40% | 2.80% |
Finance Leases | 1.30% | 1.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 122,886 | $ 124,708 | $ 127,213 |
Operating cash flows from finance leases | 772 | 690 | 349 |
Financing cash flows from finance leases | 9,289 | 6,386 | 3,975 |
Right of use assets obtained in exchange for lease obligations: | |||
Operating leases | 186,605 | 110,036 | 133,959 |
Finance leases | 13,395 | 18,248 | 20,464 |
Amortization of right of use operating lease assets | $ 115,650 | $ 113,898 | $ 109,884 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 19, 2017 | May 09, 2012 | |
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Fully vested options (in shares) | 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation costs | $ 25,651 | $ 19,697 | $ 23,620 | ||
Recognized stock-based compensation costs, net of tax | 18,982 | $ 14,576 | $ 17,479 | ||
Pre-tax unrecognized compensation expense | $ 20,086 | ||||
Recognized expense over a weighted-average period, years | 1 year 7 months 9 days | ||||
2012 Long-Term Incentive Plan | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 3,200,000 | ||||
Additional awards available to be granted (in shares) | 0 | ||||
2012 Long-Term Incentive Plan | Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Option awards contractual term (years) | 10 years | ||||
2012 Long-Term Incentive Plan | Minimum | Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 3 years | ||||
2012 Long-Term Incentive Plan | Minimum | Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 3 years | ||||
2012 Long-Term Incentive Plan | Maximum | Stock Options Plans | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 5 years | ||||
2012 Long-Term Incentive Plan | Maximum | Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Vesting period (years) | 5 years | ||||
2017 Long-Term Incentive Plan | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 3,000 | ||||
Non-employee director | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Options granted (in shares) | 3,000 | 2,000 | 1,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSUs Under the Long-Term Incentive Plans (Details) - 2007 and 2012 Incentive plan - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Restricted Stock Units outstanding, beginning balance (in shares) | 375 | 362 | 446 |
Granted (in shares) | 194 | 192 | 187 |
Released (in shares) | (105) | (146) | (230) |
Forfeited (in shares) | (25) | (33) | (41) |
Restricted Stock Units outstanding, ending balance (in shares) | 439 | 375 | 362 |
Expected to vest as of December 31, 2021 (in shares) | 418 | 361 | 356 |
Weighted average grant date fair value | |||
Restricted Stock Units outstanding, beginning balance (usd per share) | $ 122.84 | ||
Granted (usd per share) | 176.73 | ||
Released (usd per share) | 192.78 | ||
Forfeited (usd per share) | 145.76 | ||
Restricted Stock Units outstanding, ending balance (usd per share) | $ 128.62 | $ 122.84 | |
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 | $ 79,950 | ||
Expected to vest, aggregate intrinsic value | $ 76,235 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information for RSU's Under The Long-Term Incentive Plans (Details) - 2007 and 2012 Incentive plan - Restricted Stock Units (RSUs) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Restricted Stock Units outstanding, beginning balance (in shares) | 375 | 362 | 446 |
Granted (in shares) | 194 | 192 | 187 |
Released (in shares) | (105) | (146) | (230) |
Forfeited (in shares) | (25) | (33) | (41) |
Restricted Stock Units outstanding, ending balance (in shares) | 439 | 375 | 362 |
Expected to vest at end of year (in shares) | 418 | 361 | 356 |
Other Expense (Income) - Summar
Other Expense (Income) - Summary of Other Expense (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Foreign currency losses (gains), net | $ 6,298 | $ 7,815 | $ (7,190) |
Release of indemnification asset | 0 | 0 | (304) |
Impairment of joint venture in Brazil | 0 | 3,599 | 0 |
Impairment of net investment in a manufacturer and distributor of Ceramic tile in China | 0 | 0 | 59,906 |
Resolution of foreign non-income tax contingencies | (6,211) | 0 | 0 |
All other, net | (12,321) | (12,165) | (16,005) |
Total other expense (income), net | $ (12,234) | $ (751) | $ 36,407 |
Income Taxes - Earnings (Loss)
Income Taxes - Earnings (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 380,632 | $ 94,829 | $ 163,764 |
Foreign | 909,361 | 489,545 | 585,781 |
Earnings before income taxes | $ 1,289,993 | $ 584,374 | $ 749,545 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income taxes: | |||
U.S. federal | $ 93,085 | $ (33,821) | $ 19,936 |
State and local | 24,904 | 7,794 | 12,659 |
Foreign | 143,385 | 72,350 | 80,221 |
Total current | 261,374 | 46,323 | 112,816 |
Deferred income taxes: | |||
U.S. federal | (2,655) | 14,533 | 11,993 |
State and local | 13,306 | 112 | 15,371 |
Foreign | (15,580) | 7,679 | (135,206) |
Total deferred | (4,929) | 22,324 | (107,842) |
Total income tax expense | $ 256,445 | $ 68,647 | $ 4,974 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 72 Months Ended | |||
Dec. 31, 2021EUR (€) | Jun. 30, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2010EUR (€) | |
Income Taxes [Line Items] | ||||||
Percentage of earnings from continuing operations before income taxes attributable to the United States (as a percent) | 30.00% | |||||
Valuation allowance against deferred tax asset | $ 236,357 | $ 267,838 | ||||
Increase (decrease) in the valuation allowance | (31,481) | 35,642 | ||||
Net operating loss carryforwards and tax credit | 408,434 | 433,822 | ||||
Net operating loss carryforwards in the U.S. | 6,173 | |||||
Net operating loss carryforwards in various foreign jurisdictions | 1,596,351 | |||||
Gross unrecognized tax benefits | 1,296,523 | 1,388,391 | $ 1,260,970 | |||
Unrecognized tax benefits that would impact effective tax rate | 45,147 | |||||
Interest and penalties | 14,494 | 11,485 | ||||
Accrued/(reversed) interest and penalties | 3,236 | $ (695) | 5,368 | |||
Expected decrease in unrecognized tax benefits within next twelve months | $ 19,510 | |||||
Luxembourg | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carryforwards in various foreign jurisdictions | $ 1,238,277 | |||||
Domestic tax authority | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate (as a percent) | 33.80% | (12.00%) | 36.60% | |||
Foreign tax authority | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate (as a percent) | 14.10% | 16.30% | (9.40%) | |||
Foreign tax authority | Tax Years 2005 to 2010 | Belgium | ||||||
Income Taxes [Line Items] | ||||||
Foreign tax assessment | € | € 223,321 | |||||
Foreign tax authority | Tax Year 2018 | Luxembourg | ||||||
Income Taxes [Line Items] | ||||||
Foreign tax assessment | € | € 182,594 | € 371,696 | ||||
State | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carryforwards and tax credit | $ 44,186 | |||||
State deferred tax assets | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance against deferred tax asset | 22,851 | |||||
Operating Loss Carryforward, Domestic | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance against deferred tax asset | 5,882 | |||||
Operating Loss Carryforward, Foreign Jurisdiction | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance against deferred tax asset | $ 207,624 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $ 270,898 | $ 122,719 | $ 157,404 |
State and local income taxes, net of federal income tax benefit | 25,658 | 8,081 | 22,185 |
Foreign income taxes | (34,981) | (57,898) | (17,276) |
Change in valuation allowance | 5,947 | 35,381 | (21,975) |
European Restructuring | 0 | 0 | (136,194) |
Loss on previously taxed earnings | 0 | (10,346) | 0 |
Carryback rate differential | (15,743) | (33,739) | 0 |
Global intangible low-taxed income | 34,400 | 2,500 | 6,000 |
Italy Step-up Adjustment | (22,163) | 0 | 0 |
Tax contingencies and audit settlements, net | 12,505 | 6,779 | 6,686 |
Other, net | (20,076) | (4,830) | (11,856) |
Total income tax expense | $ 256,445 | $ 68,647 | $ 4,974 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accounts receivable | $ 16,550 | $ 14,384 |
Inventories | 38,388 | 44,597 |
Employee benefits | 54,865 | 39,526 |
Accrued expenses and other | 73,983 | 103,892 |
Deductible state tax and interest benefit | 7,206 | 4,042 |
Intangibles | 135,777 | 152,499 |
Lease liabilities | 106,753 | 91,359 |
Federal, foreign and state net operating losses and credits | 408,434 | 433,822 |
Gross deferred tax assets | 841,956 | 884,121 |
Valuation allowance | (236,357) | (267,838) |
Net deferred tax assets | 605,599 | 616,283 |
Deferred tax liabilities: | ||
Inventories | (23,484) | (17,403) |
Plant and equipment | (467,451) | (489,240) |
Intangibles | (188,417) | (197,009) |
Right of use assets | (101,935) | (87,351) |
Prepaids | (45,077) | (56,140) |
Other liabilities | (67,914) | (46,121) |
Gross deferred tax liabilities | (894,278) | (893,264) |
Net deferred tax liability | $ (288,679) | $ (276,981) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance as of January 1 | $ 1,388,391 | $ 1,260,970 |
Additions based on tax positions related to the current year | 458 | 1,694 |
Additions for tax positions of acquired companies | 0 | 0 |
Additions for tax positions of prior years | 18,001 | 7,663 |
Transition tax planning initiatives | 0 | 0 |
Reductions resulting from the lapse of the statute of limitations | (3,336) | (1,239) |
Reductions due to Luxembourg tax rate change | 0 | 0 |
Settlements with taxing authorities | 0 | (497) |
Effects of foreign currency translation | (106,991) | |
Effects of foreign currency translation | 119,800 | |
Balance as of December 31 | $ 1,296,523 | $ 1,388,391 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Oct. 05, 2021complaint | Apr. 23, 2021complaint | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Georgia State Court Investor Actions | ||||
Commitments And Contingencies [Line Items] | ||||
Number of complaints | 4 | |||
Georgia State Court Investor Actions | Pending Litigation | ||||
Commitments And Contingencies [Line Items] | ||||
Number of complaints | 4 | |||
Standby letters of credit related to various insurance contracts and foreign vendor commitments | Senior Secured Credit Facility | ||||
Commitments And Contingencies [Line Items] | ||||
Standby letters of credit for various insurance contracts and commitments to foreign vendors | $ | $ 1,432 | $ 787 | ||
Standby letters of credit related to various insurance contracts and foreign vendor commitments | Senior Secured Credit Facility | Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Expiration period for standby letters of credit | 2 years |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows Information - Schedule of Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net cash paid during the years for: | |||
Interest | $ 75,514 | $ 44,584 | $ 45,241 |
Income taxes | 323,718 | 106,891 | 123,974 |
Supplemental schedule of non-cash investing and financing activities: | |||
Unpaid property plant and equipment in accounts payable and accrued expenses | 117,084 | 90,767 | 104,823 |
Fair value of net assets acquired in acquisition | 176,924 | 0 | 107,290 |
Liabilities assumed in acquisition | (52,955) | 0 | (31,053) |
Noncash investing and financing activities, total | $ 123,969 | $ 0 | $ 76,237 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reporting segments | segment | 3 | ||
Assets | $ 14,224,517 | $ 14,327,751 | $ 13,386,680 |
Net sales | 11,200,613 | 9,552,197 | 9,970,672 |
Long-lived assets | 7,244,774 | 7,242,060 | 7,268,944 |
Operating income (loss) | 1,335,011 | 636,002 | 827,224 |
Depreciation and amortization | 591,711 | 607,507 | 576,452 |
Capital expenditures (excluding acquisitions) | 676,120 | 425,557 | 545,462 |
Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,938,654 | 3,457,203 | 3,686,645 |
Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,294,042 | 3,735,888 | 3,921,769 |
Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,852,766 | 1,538,967 | 1,501,077 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,115,151 | 820,139 | 861,181 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,181,628 | 5,530,407 | 5,822,593 |
Long-lived assets | 3,334,256 | 3,303,197 | 3,391,676 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,117,892 | 2,486,770 | 2,532,239 |
Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 450,010 | 385,830 | 385,395 |
Belgium | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,783,259 | 1,808,571 | 1,645,104 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,451,083 | 1,149,190 | 1,230,445 |
Long-lived assets | 2,127,259 | 2,130,292 | 2,232,164 |
Operating segments | Global Ceramic Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,160,776 | 5,250,069 | 5,419,896 |
Net sales | 3,917,319 | 3,432,756 | 3,631,142 |
Operating income (loss) | 403,135 | 167,731 | 335,639 |
Depreciation and amortization | 210,634 | 215,488 | 211,679 |
Capital expenditures (excluding acquisitions) | 167,224 | 121,418 | 244,026 |
Operating segments | Global Ceramic Segment | Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,903,597 | 3,425,672 | 3,631,142 |
Operating segments | Global Ceramic Segment | Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 13,722 | 7,084 | 0 |
Operating segments | Global Ceramic Segment | Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Global Ceramic Segment | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Global Ceramic Segment | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 849,247 | 699,715 | 711,762 |
Operating segments | Global Ceramic Segment | Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 299,621 | 262,846 | 269,142 |
Operating segments | Flooring NA Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,125,960 | 3,594,976 | 3,823,654 |
Net sales | 4,116,405 | 3,594,075 | 3,843,714 |
Operating income (loss) | 407,577 | 147,442 | 177,566 |
Depreciation and amortization | 211,872 | 214,599 | 204,689 |
Capital expenditures (excluding acquisitions) | 327,691 | 186,179 | 148,820 |
Operating segments | Flooring NA Segment | Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 35,057 | 31,531 | 55,503 |
Operating segments | Flooring NA Segment | Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,287,533 | 2,871,050 | 3,136,474 |
Operating segments | Flooring NA Segment | Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 793,815 | 691,494 | 651,737 |
Operating segments | Flooring NA Segment | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Flooring NA Segment | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,731 | 1,506 | 6,922 |
Operating segments | Flooring NA Segment | Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 94 | 50 | 66 |
Operating segments | Flooring ROW Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,361,741 | 4,194,447 | 3,925,246 |
Net sales | 3,166,889 | 2,525,366 | 2,495,816 |
Operating income (loss) | 571,126 | 366,934 | 353,666 |
Depreciation and amortization | 156,700 | 164,701 | 145,417 |
Capital expenditures (excluding acquisitions) | 164,318 | 113,378 | 147,118 |
Operating segments | Flooring ROW Segment | Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Flooring ROW Segment | Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 992,787 | 857,754 | 785,295 |
Operating segments | Flooring ROW Segment | Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,058,951 | 847,473 | 849,340 |
Operating segments | Flooring ROW Segment | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,115,151 | 820,139 | 861,181 |
Operating segments | Flooring ROW Segment | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,265,914 | 1,785,549 | 1,813,555 |
Operating segments | Flooring ROW Segment | Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 150,295 | 122,934 | 116,187 |
Corporate and intersegment eliminations | |||
Segment Reporting Information [Line Items] | |||
Assets | 576,040 | 1,288,259 | 217,884 |
Operating income (loss) | (46,827) | (46,105) | (39,647) |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 12,505 | 12,719 | 14,667 |
Capital expenditures (excluding acquisitions) | $ 16,887 | $ 4,582 | $ 5,498 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Feb. 10, 2022USD ($) |
2022 Share Repurchase Program | |
Subsequent Event [Line Items] | |
Share repurchase program, authorized amount | $ 500,000,000 |
2021 Share Repurchase Program | |
Subsequent Event [Line Items] | |
Share repurchase program, authorized amount | $ 0 |