COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jul. 02, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | MOHAWK INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 01-13697 | ||
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 | $ 6,768,139,635 | ||
Entity Common Stock, Shares Outstanding | 63,540,310 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders-Part III. | ||
Entity Central Index Key | 0000851968 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 509,623 | $ 268,895 |
Short-term investments | 158,000 | 323,000 |
Receivables, net | 1,904,786 | 1,839,985 |
Inventories | 2,793,765 | 2,391,672 |
Prepaid expenses | 498,222 | 394,649 |
Other current assets | 30,703 | 20,156 |
Total current assets | 5,895,099 | 5,238,357 |
Property, plant and equipment, net | 4,661,178 | 4,636,865 |
Right of use operating lease assets | 387,816 | 389,967 |
Goodwill | 1,927,759 | 2,607,909 |
Tradenames | 668,328 | 694,905 |
Other intangible assets subject to amortization, net | 189,620 | 205,075 |
Deferred income taxes and other non-current assets | 390,632 | 451,439 |
Total assets | 14,120,432 | 14,224,517 |
Current liabilities: | ||
Short-term debt and current portion of long-term debt | 840,571 | 624,503 |
Accounts payable and accrued expenses | 2,124,448 | 2,217,418 |
Current operating lease liabilities | 105,266 | 104,434 |
Total current liabilities | 3,070,285 | 2,946,355 |
Deferred income taxes | 444,660 | 495,521 |
Long-term debt, less current portion | 1,978,563 | 1,700,282 |
Non-current operating lease liabilities | 296,136 | 297,390 |
Other long-term liabilities | 312,874 | 356,753 |
Total liabilities | 6,102,518 | 5,796,301 |
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; 70,875 and 72,952 shares issued and outstanding in 2022 and 2021, respectively | 709 | 729 |
Additional paid-in capital | 1,930,789 | 1,911,131 |
Retained earnings | 7,409,760 | 7,692,064 |
Accumulated other comprehensive loss | (1,114,258) | (966,952) |
Shareholder's equity before treasury stock | 8,227,000 | 8,636,972 |
Less: treasury stock at cost; 7,341 and 7,343 shares in 2022 and 2021, respectively | 215,491 | 215,547 |
Total Mohawk Industries, Inc. stockholders’ equity | 8,011,509 | 8,421,425 |
Nonredeemable noncontrolling interests | 6,405 | 6,791 |
Total stockholders’ equity | 8,017,914 | 8,428,216 |
Total liabilities and stockholders' equity | $ 14,120,432 | $ 14,224,517 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 70,875,000 | 72,952,000 |
Common stock, shares, outstanding (in shares) | 70,875,000 | 72,952,000 |
Treasury stock, common shares (in shares) | 7,341,000 | 7,343,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 11,737,065 | $ 11,200,613 | $ 9,552,197 |
Cost of sales | 8,793,639 | 7,931,879 | 7,121,507 |
Gross profit | 2,943,426 | 3,268,734 | 2,430,690 |
Selling, general and administrative expenses | 2,003,438 | 1,933,723 | 1,794,688 |
Impairment of goodwill and indefinite-lived intangibles | 695,771 | 0 | 0 |
Operating income | 244,217 | 1,335,011 | 636,002 |
Interest expense | 51,938 | 57,252 | 52,379 |
Other expense (income), net | 8,386 | (12,234) | (751) |
Earnings before income taxes | 183,893 | 1,289,993 | 584,374 |
Income tax expense | 158,110 | 256,445 | 68,647 |
Net earnings including noncontrolling interests | 25,783 | 1,033,548 | 515,727 |
Net earnings attributable to noncontrolling interests | 536 | 389 | 132 |
Net earnings attributable to Mohawk Industries, Inc. | $ 25,247 | $ 1,033,159 | $ 515,595 |
Basic earnings per share attributable to Mohawk Industries, Inc. | |||
Basic earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 0.40 | $ 15.01 | $ 7.24 |
Weighted-average common shares outstanding—basic (in shares) | 63,826 | 68,852 | 71,214 |
Diluted earnings per share attributable to Mohawk Industries, Inc. | |||
Diluted earnings per share attributable to Mohawk Industries, Inc. (usd per share) | $ 0.39 | $ 14.94 | $ 7.22 |
Weighted-average common shares outstanding—diluted (in shares) | 64,062 | 69,145 | 71,401 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings including noncontrolling interests | $ 25,783 | $ 1,033,548 | $ 515,727 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (155,424) | (279,384) | 72,956 |
Prior pension and post-retirement benefit service cost and actuarial gain, net of tax | 8,124 | 7,137 | (2,174) |
Other comprehensive (loss) income | (147,300) | (272,247) | 70,782 |
Comprehensive (loss) income | (121,517) | 761,301 | 586,509 |
Comprehensive income (loss) attributable to noncontrolling interests | 541 | (51) | 235 |
Comprehensive (loss) income attributable to Mohawk Industries, Inc. | $ (122,058) | $ 761,352 | $ 586,274 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Nonredeemable Noncontrolling Interests |
Beginning balance at Dec. 31, 2019 | $ 8,126,448 | $ (131) | $ 790 | $ 1,868,250 | $ 7,232,337 | $ (131) | $ (765,824) | $ (215,712) | $ 6,607 |
Beginning balance (in shares) at Dec. 31, 2019 | 78,980 | ||||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2019 | (7,348) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards | (2,740) | $ 1 | (2,805) | $ 64 | |||||
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees' equity awards (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 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 | ||||||||
Ending balance, treasury stock (in shares) at Dec. 31, 2020 | (7,346) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards | 440 | $ 1 | 338 | $ 101 | |||||
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees' equity awards (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 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 | 72,952 | |||||||
Ending balance, treasury stock (in shares) at Dec. 31, 2021 | (7,343) | (7,343) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards | $ (3,266) | $ 1 | (3,323) | $ 56 | |||||
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees' equity awards (in shares) | 107 | 2 | |||||||
Stock-based compensation expense | 22,409 | 22,409 | |||||||
Repurchases of common stock | (307,572) | $ (21) | (307,551) | ||||||
Repurchases of common stock (in shares) | (2,184) | ||||||||
Net earnings attributable to noncontrolling interests | 536 | 536 | |||||||
Currency translation adjustment on noncontrolling interests | 5 | 5 | |||||||
Currency translation adjustment | (155,430) | (155,430) | |||||||
Prior pension and post-retirement benefit service cost and actuarial loss | 8,124 | 8,124 | |||||||
Net earnings | 25,247 | 25,247 | |||||||
Purchase of redeemable noncontrolling interest and noncontrolling interest, net of taxes | (355) | 572 | (927) | ||||||
Ending balance at Dec. 31, 2022 | $ 8,017,914 | $ 709 | $ 1,930,789 | $ 7,409,760 | $ (1,114,258) | $ (215,491) | $ 6,405 | ||
Ending balance (in shares) at Dec. 31, 2022 | 70,875 | 70,875 | |||||||
Ending balance, treasury stock (in shares) at Dec. 31, 2022 | (7,341) | (7,341) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net earnings including noncontrolling interests | $ 25,783 | $ 1,033,548 | $ 515,727 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Restructuring | 47,716 | 10,783 | 103,695 |
Impairment of goodwill and indefinite-lived intangibles | 695,771 | 0 | 0 |
Depreciation and amortization | 595,464 | 591,711 | 607,507 |
Deferred income taxes | (51,098) | (4,929) | 22,324 |
Loss on disposal of property, plant and equipment | 697 | 5,462 | 6,296 |
Stock-based compensation expense | 22,409 | 25,651 | 19,697 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Receivables, net | (84,381) | (207,047) | (54,977) |
Inventories | (409,601) | (519,229) | 357,516 |
Accounts payable and accrued expenses | (94,137) | 360,791 | 255,466 |
Other assets and prepaid expenses | (49,552) | (66,844) | (55,084) |
Other liabilities | (29,918) | 79,222 | (8,328) |
Net cash provided by operating activities | 669,153 | 1,309,119 | 1,769,839 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (580,742) | (676,120) | (425,557) |
Acquisitions, net of cash acquired | (209,602) | (123,969) | 0 |
Purchases of short-term investments | (2,481,000) | (1,211,239) | (1,187,891) |
Redemption of short-term investments | 2,646,000 | 1,454,574 | 658,650 |
Net cash used in investing activities | (625,344) | (556,754) | (954,798) |
Cash flows from financing activities: | |||
Payments on Senior Credit Facilities | (5,000) | 0 | (633,134) |
Proceeds from Senior Credit Facilities | 5,000 | 0 | 617,883 |
Payments on commercial paper | (19,412,925) | (570,362) | (4,890,991) |
Proceeds from commercial paper | 19,633,142 | 1,185,020 | 4,195,353 |
Proceeds from Senior Notes issuance | 0 | 0 | 1,062,240 |
Repayments on Senior Notes | (600,000) | (932,252) | (326,904) |
Proceeds from Term Loan Facility | 907,952 | 0 | 500,000 |
Payments on Term Loan Facility | 0 | 0 | (500,000) |
Net payments of other financing activities | (23,455) | (11,656) | (8,338) |
Debt issuance costs | (2,543) | 0 | (11,413) |
Purchase of Mohawk common stock | (307,572) | (900,334) | (188,625) |
Change in outstanding checks in excess of cash | (251) | (2,641) | (4,256) |
Net cash provided by (used in) financing activities | 194,348 | (1,232,225) | (188,185) |
Effect of exchange rate changes on cash and cash equivalents | 2,571 | (19,870) | 6,984 |
Net change in cash and cash equivalents | 240,728 | (499,730) | 633,840 |
Cash and cash equivalents, beginning of year | 268,895 | 768,625 | 134,785 |
Cash and cash equivalents, end of year | $ 509,623 | $ 268,895 | $ 768,625 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 The Company considers investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2022, the Company had cash and cash equivalents of $509,623, of which $210,368 was held outside the United States. 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. Short-term Investments The Company invests in high quality credit instruments. At December 31, 2022 and December 31, 2021, short-term investments consisted solely of investments in the Company’s commercial paper by its wholly-owned captive insurance company. 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 The Company recognizes revenue 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 a change in 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 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, employee benefits, depreciation, general manufacturing overhead and various other costs of manufacturing. Inventories on hand are compared against anticipated future usage, which is a function of historical usage, anticipated future selling price, expected sales below cost, excessive quantities and an evaluation for obsolescence. Property, Plant and Equipment Property, plant and equipment 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, 3-7 years for furniture and fixtures and the shorter of the estimated useful life or lease term for leasehold improvements. Accounting for Business Combinations The Company accounts for business combinations under the acquisition method of accounting which requires it to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Goodwill and Other Intangible Assets In accordance with the provisions of the FASB ASC Topic 350, Intangibles-Goodwill and Other, the Company tests goodwill and other intangible assets with indefinite lives, which for the Company are tradenames, 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’s annual impairment tests of goodwill and tradenames may be completed through qualitative assessments. The Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test, for any reporting unit or tradename, in any period. The Company can resume the qualitative assessment for any reporting unit or tradename in any subsequent period. The Company has identified Global Ceramic, Flooring North America (“Flooring NA”) and Flooring Rest of the World (“Flooring ROW”) as its reporting units for the purposes of allocating goodwill as well as assessing impairments. The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. Under a qualitative approach, the Company’s impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. If the Company elects to bypass the qualitative assessment for any reporting units, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its fair value, the Company performs a quantitative goodwill impairment test that requires it to estimate the fair value of the reporting unit. The quantitative goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgments and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy approaches. If the carrying value of a reporting unit exceeds its fair value, the Company will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. 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 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. Under a qualitative approach, the Company’s impairment review for tradenames consists of an assessment of whether it is more-likely-than-not that a tradename’s fair value is less than its carrying value. If the Company elects to bypass the qualitative assessment for any tradename, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a tradename exceeds its fair value, the Company performs a quantitative tradename impairment test of the tradename. The quantitative impairment evaluation for tradenames involves a comparison of the estimated fair value of the tradename to its carrying amount. If the carrying value of the tradename exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The determination of fair value used in the impairment evaluation is based on discounted estimates of future sales projections attributable to ownership of the tradenames. 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 tradenames. Estimated cash flows are sensitive to changes in the economy among other things. Intangible assets with finite lives are amortized based on average lives, which range from 5-20 years. 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. Variable rent expenses consist primarily of maintenance, property taxes and charges based on usage. 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 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 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 variable-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 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 $126,898 in 2022, $139,538 in 2021 and $105,974 in 2020. 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 $15,231 in 2022, $22,092 in 2021 and $16,087 in 2020. Product Warranties The Company warrants certain qualitative attributes of its flooring products. The Company has recorded a provision for estimated warranty and related costs, based on historical experience and periodically adjusts these provisions to reflect actual experience. Impairment of Long-Lived Assets 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. 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. 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 €500,000 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 years ended December 31, 2021 and December 31, 2020, 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) and an increase of $54,907 ($41,708 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”) Basic earnings per share 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 2022, 2021 and 2020. Computations of basic and diluted earnings per share are presented for the years ended December 31, 2022, 2021 and 2020, respectively, in the following table: 2022 2021 2020 Net earnings available to common stockholders $ 25,247 1,033,159 515,595 Weighted-average common shares outstanding—basic and diluted: Weighted-average common shares outstanding—basic 63,826 68,852 71,214 Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net 236 293 187 Weighted-average common shares outstanding-diluted 64,062 69,145 71,401 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 0.40 15.01 7.24 Diluted $ 0.39 14.94 7.22 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 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 $63,648 and $24,483 in 2022, $61,082 and $23,884 in 2021 and $56,241 and $13,509 in 2020, respectively. The Company also has various pension plans covering employees in Belgium, France, and the Netherlands (the “Non-U.S. Plans”) within Flooring ROW. 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, 2022 were $55,236 and $50,702, respectively. The Company’s projected benefit obligation and plan assets as of December 31, 2021 were $80,324 and $65,118, respectively. As of December 31, 2022, the funded status of the Non-U.S. Plans was a liability of $4,534 of which $82 was recorded in accumulated other comprehensive income (loss), for a net liability of $4,452 recorded in other long-term liabilities within the consolidated balance sheets. 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 (loss), for a net liability of $6,340 recorded in other long-term liabilities within the consolidated balance sheets. Comprehensive Income (Loss) Comprehensive income (loss) includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and 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 the years ended December 31, 2022, 2021 and 2020 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, 2019 $ (753,108) (12,716) (765,824) Current period other comprehensive income (loss) 72,853 (2,174) 70,679 Balance as of December 31, 2020 (680,255) (14,890) (695,145) Current period other comprehensive (loss) income (278,944) 7,137 (271,807) Balance as of December 31, 2021 (959,199) (7,753) (966,952) Current period other comprehensive (loss) income (155,430) 8,124 (147,306) Balance as of December 31, 2022 $ (1,114,629) 371 (1,114,258) 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. Fiscal Year The Company ends its fiscal year on December 31. Each of the first three quarters in the fiscal year ends on the Saturday nearest the calendar quarter end with a thirteen week fiscal quarter. Recent Accounting Pronouncements — Recently Adopted In December 2019, the FASB issued Accounting Standards Update (“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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions 2022 Acquisitions During 2022, the Company completed acquisitions in Flooring NA for $164,579. The Company’s acquisitions resulted in a preliminary goodwill allocation of $60,842, pending working capital adjustments, and intangible assets subject to amortization of $19,900. Approximately half of the goodwill is expected to be deductible for tax purposes. The Company also completed acquisitions in Flooring ROW for $47,964, which resulted in a preliminary goodwill allocation of $11,542, pending working capital adjustments, and intangible assets subject to amortization of $3,376. Some of t he goodwill is expected to be deductible for tax purposes. 2021 Acquisitions During 2021, the Company completed acquisitions in Flooring ROW totaling $121,027, including the acquisition of an insulation manufacturer, on September 7, 2021 for $66,334 and the acquisition of a MDF production plant on November 2, 2021 for $44,357. The Company’s acquisitions resulted in a goodwill allocation of $52,536 and intangible assets subject to amortization of $19,910. The goodwill was not deductible for tax purposes. The remaining acquisitions resulted in goodwill of $1,672 and intangible assets subject to amortization of $5,596 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Contract Liabilities The Company 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 consolidated balance sheets. The Company had contract liabilities of $72,572 and $65,744 as of December 31, 2022 and December 31, 2021, 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, 2022, 2021, and 2020 was immaterial. Costs to Obtain a Contract The Company 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 $59,015 and $49,644 as of December 31, 2022 and December 31, 2021, respectively. Straight-line amortization expense recognized during 2022, 2021 and 2020 related to these capitalized costs were $55,520, $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, 2022, 2021 and 2020, respectively: December 31, 2022 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets United States $ 2,403,292 4,072,952 13,835 6,490,079 Europe 875,414 6,322 2,270,315 3,152,051 Russia 374,539 23 175,035 549,597 Other 654,436 127,744 763,158 1,545,338 Total $ 4,307,681 4,207,041 3,222,343 11,737,065 Product Categories Ceramic & Stone $ 4,282,887 37,536 — 4,320,423 Carpet & Resilient 24,794 3,296,152 914,869 4,235,815 Laminate & Wood — 873,353 1,091,133 1,964,486 Other (1) — — 1,216,341 1,216,341 Total $ 4,307,681 4,207,041 3,222,343 11,737,065 December 31, 2021 Global Ceramic Flooring NA Flooring ROW 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 Flooring NA Flooring ROW 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 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Restructuring, Acquisition and
Restructuring, Acquisition and Integration-Related Costs | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Acquisition and Integration-Related Costs | Restructuring, Acquisition and Integration-Related Costs The Company incurs costs in connection with acquiring, integrating and restructuring acquisitions and in connection with its global cost-reduction/productivity initiatives. For example: • In connection with acquisition activity, the Company typically incurs costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and • In connection with the Company’s cost-reduction/productivity initiatives, it typically incurs costs and charges associated with site closings and other facility rationalization actions, including accelerated depreciation ("asset write-downs") and workforce reductions. Restructuring, acquisition and integration-related costs consisted of the following during the year ended December 31, 2022, 2021 and 2020, respectively (in thousands): 2022 2021 2020 Cost of sales Restructuring costs $ 67,621 17,899 101,230 Acquisition integration-related costs 396 497 1,153 Restructuring and acquisition integration-related costs $ 68,017 18,396 102,383 Selling, general and administrative expenses Restructuring costs $ 9,094 1,301 24,127 Acquisition transaction-related costs 1,654 2,372 213 Acquisition integration-related costs 2,992 1,568 2,127 Restructuring, acquisition transaction and integration-related costs $ 13,740 5,241 26,467 The restructuring activity for the years ended December 31, 2022 and 2021, respectively is as follows (in thousands): Lease impairments Asset write-downs Severance Other restructuring costs Total Balance as of December 31, 2020 $ — — 11,576 729 12,305 Restructuring costs Global Ceramic 226 1,458 134 808 2,626 Flooring NA (37) 7,595 (284) 9,614 16,888 Flooring ROW — (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 Restructuring costs Global Ceramic — — 3,365 — 3,365 Flooring NA — 29,327 741 14,406 44,474 Flooring ROW — 9,371 12,677 6,828 28,876 Corporate — — — — — Total restructuring costs for 2022 — 38,698 16,783 21,234 76,715 Cash payments — — (8,557) (21,241) (29,798) Non-cash items — (38,698) 177 (988) (39,509) Balance as of December 31, 2022 $ — — 10,037 — 10,037 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 2022 restructuring costs recorded in: Cost of sales $ — 38,698 7,915 21,008 67,621 Selling, general and administrative expenses — — 8,868 226 9,094 Total restructuring costs for 2022 $ — 38,698 16,783 21,234 76,715 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, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company’s wholly-owned captive insurance company may 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, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Short-term investments: Commercial paper (Level 2) $ 158,000 323,000 The fair values and carrying values of the Company’s debt are disclosed in Note 10, Long-Term Debt |
Receivables, net
Receivables, net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net December 31, 2022 December 31, 2021 Customers, trade $ 1,699,130 1,721,584 Income tax receivable 60,080 73,727 Other 219,355 117,823 1,978,565 1,913,134 Less: allowance for discounts, returns, claims and doubtful accounts 73,779 73,149 Receivables, net $ 1,904,786 1,839,985 The following table reflects the activity of allowances for discounts, returns, claims and doubtful accounts for the years ended December 31: Balance at beginning of year Acquisitions Additions charged to net sales or Deductions (1) Balance at end of year 2020 $ 61,921 — 384,403 362,642 83,682 2021 83,682 644 357,635 368,812 73,149 2022 73,149 584 382,027 381,981 73,779 (1) Represents charge-offs, net of recoveries . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories are as follows: December 31, 2022 December 31, 2021 Finished goods $ 1,986,005 1,677,707 Work in process 160,757 144,004 Raw materials 647,003 569,961 Total inventories $ 2,793,765 2,391,672 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company performs its annual testing of goodwill and indefinite-lived intangibles in the fourth quarter of each year. Between annual testing dates, the Company monitors factors such as its market capitalization, comparable company market multiples and macroeconomic conditions to identify conditions that could impact the Company’s assumptions utilized in the determination of the estimated fair values of the Company’s reporting units and indefinite-lived intangible assets significantly enough to trigger an impairment. The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgements and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy 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 judgements and assumptions about appropriate sales growth rates, operating margins, WACC and comparable company market multiples. As a result of a decrease in the Company’s market capitalization, comparable company market multiples, projected future cash flows and an increase in the WACC due to increases in the risk free rate and applicable risk premiums, the Company determined that a triggering event occurred requiring goodwill impairment testing for each of its reporting units as of October 1, 2022. The impairment test indicated a pre-tax, non-cash goodwill impairment charge related to the Global Ceramic reporting unit of $688,514 ($679,664 net of tax), which the Company recorded during the third quarter of 2022. The Company concluded the goodwill of its other reporting units was not impaired on October 1, 2022. In addition, the Company compared the estimated fair values of its indefinite-lived intangibles to their carrying values and determined that there were impairments The excess of fair value over carrying value for the Flooring ROW reporting unit was approximately 20% and the excess of fair value over carrying value for the Flooring NA reporting unit was less than 5%, as of October 1, 2022. The Company’s annual testing date for goodwill and tradenames is the first day of its fourth quarter and due to the fact that there were no significant changes in facts or circumstances in the one calendar day, the Company determined there was no additional impairment of goodwill or tradenames. The Company conducted a qualitative analysis as of December 31, 2022 and determined there was no indication of an impairment. A significant or prolonged deterioration in economic conditions, continued increases in the costs of raw materials and energy combined with an inability to pass these costs on to customers, a further decline in the Company’s market capitalization or comparable company market multiples, a reduction in projected future cash flows, or increases in the WACC, could impact the Company’s assumptions and require a reassessment of goodwill or indefinite-lived intangible assets for impairment in future periods. The following tables summarize the components of goodwill and intangible assets: Goodwill: Global Ceramic Flooring NA Flooring ROW Total Balances as of December 31, 2020 (1) $ 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 (1) 1,031,337 531,144 1,045,428 2,607,909 Goodwill adjustments related to acquisitions — — (2,722) (2,722) Goodwill recognized during the period — 60,841 11,542 72,383 Impairment charge during the period (688,514) — — (688,514) Currency translation during the period (2,989) — (58,308) (61,297) Balances as of December 31, 2022 $ 339,834 591,985 995,940 1,927,759 (1) Net of accumulated impairment losses of $1,327,425 ($531,930 in Global Ceramic, $343,054 in Flooring NA and $452,441 in Flooring ROW). Intangible assets: Tradenames Indefinite life assets not subject to amortization: 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 Intangible assets acquired during the year 335 Intangible assets impaired during the year (7,257) Currency translation during the year (19,655) Balance as of December 31, 2022 $ 668,328 Customer Patents Other Total Intangible assets subject to amortization: Balances as of December 31, 2020 Gross carrying amount $ 699,795 273,570 6,945 980,310 Accumulated amortization (481,256) (273,426) (1,289) (755,971) Net intangible assets subject to amortization 218,539 144 5,656 224,339 Balances as of December 31, 2021 Gross carrying amount 680,177 256,336 6,786 943,299 Accumulated amortization (483,748) (252,414) (2,062) (738,224) Net intangible assets subject to amortization 196,429 3,922 4,724 205,075 Balances as of December 31, 2022 Gross carrying amount 673,586 242,089 8,511 924,186 Accumulated amortization (493,361) (239,010) (2,195) (734,566) Net intangible assets subject to amortization $ 180,225 3,079 6,316 189,620 Years Ended December 31, 2022 2021 2020 Amortization expense $ 28,086 29,280 28,891 Estimated amortization expense for the years ending December 31 are as follows: 2023 $ 28,049 2024 27,334 2025 27,117 2026 26,896 2027 19,972 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Following is a summary of property, plant and equipment: December 31, 2022 December 31, 2021 Land $ 466,820 465,240 Buildings and improvements 1,851,390 1,862,463 Machinery and equipment 6,310,442 6,023,087 Furniture and fixtures 162,864 158,315 Leasehold improvements 107,079 102,766 Construction in progress 749,184 638,716 9,647,779 9,250,587 Less: accumulated depreciation 4,986,601 4,613,722 Net property, plant and equipment $ 4,661,178 4,636,865 Additions to property, plant and equipment included capitalized interest of $16,895, $9,082 and $6,362 in 2022, 2021 and 2020, respectively. Depreciation expense was $564,255, $558,818 and $574,095 for 2022, 2021 and 2020, respectively. Included in property, plant and equipment are finance leases with a cost of $82,653 and $67,984 and accumulated depreciation of $30,218 and $19,902 as of December 31, 2022 and 2021, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Senior Credit Facility On August 12, 2022, the Company entered into a fourth amendment (the “Amendment”) to its existing senior revolving credit facility (the “Senior Credit Facility”). The Amendment, among other things, (i) extended the maturity of the Senior Credit Facility from October 18, 2024 to August 12, 2027, (ii) 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, (iii) increased the Consolidated Interest Coverage Ratio financial maintenance covenant from 3.00:1.00 to 3.50:1.00, (iv) eliminated certain covenants applicable to the Company and its subsidiaries, including, but not limited to, restrictions on dispositions, restricted payments, and transactions with affiliates, and the Consolidated Net Leverage Ratio financial covenant, and (v) increased the amount available under the Senior Credit Facility to $1,950,000 until October 18, 2024, after which the amount available under the Senior Credit Facility will decrease to $1,485,000. The Amendment also permits the Company to increase the commitments under the Senior Credit Facility by an aggregate amount not to exceed $600,000. At the Company’s election, U.S.-dollar denominated revolving loans under the Senior Credit Facility bear interest at annual rates equal to either (a) SOFR (plus a 0.10% SOFR adjustment) 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, 2022), or (b) the Base Rate (defined as the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds Effective Rate plus 0.5%, or SOFR (plus a 0.10% SOFR adjustment) for a 1 month period rate plus 1.0%), plus an applicable margin ranging between 0.00% and 0.75% (0.00% as of December 31, 2022). At the Company’s election, revolving loans under the Senior Credit Facility denominated in Canadian dollars, Australian dollars, Hong Kong dollars or euros bear interest at annual rates equal to either (a) the applicable benchmark for such currency plus an applicable margin ranging between 1.00% and 1.75% (1.00% as of December 31, 2022), or (b) the Base Rate plus an applicable margin ranging between 0.00% and 0.75% (0.00% as of December 31, 2022). 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, 2022). 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 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, 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 requirement 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 was in effect for the fiscal quarters ending on September 26, 2020 through (and including) the fiscal quarter ending December 31, 2021. As described above, the Consolidated Net Leverage Ratio financial covenant was eliminated on August 12, 2022. The Senior Credit Facility also contains customary representations and warranties and events of default, subject to customary grace periods. In 2022, the Company paid financing costs of $1,879 in connection with the Amendment of its Senior Credit Facility. These costs were deferred and, along with previously unamortized costs of $2,663, are being amortized over the term of the Senior Credit Facility. As of December 31, 2022, amounts utilized under the Senior Credit Facility included zero borrowings and $19,614 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 $848,420 under the Senior Credit Facility, resulting in a total of $1,101,580 available as of December 31, 2022. 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 rank pari passu with 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 the Company’s commercial paper programs may not exceed $1,950,000 (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, 2022, there was $785,998 outstanding under the U.S. commercial paper program, and the euro equivalent of $42,808 under the European program. The weighted-average interest rate and maturity period for the U.S. program were 4.85% and 27.0 days, respectively. The weighted-average interest rate and maturity period for the European program were 1.98% and 11.8 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 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 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 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 were senior unsecured obligations of the Company and ranked pari passu with the Company’s existing and future unsecured indebtedness. Interest on the 3.85% Senior Notes was 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 were amortized over the term of the 3.85% Senior Notes. On November 1, 2022, the Company redeemed at par all 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 August 12, 2022, the Company and its indirect wholly-owned subsidiary, Mohawk International Holdings S.à r.l. (“Mohawk International”), entered into an agreement that provides for a delayed draw term loan facility (the “Term Loan Facility”), consisting of borrowings of up to $575,000 and €220,000. On October 3,2022, an additional $100,000 of borrowing capacity was added to the Term Loan Facility. The Term Loan Facility could be drawn upon in up to two advances on any business day on or before December 31, 2022, with the proceeds being used for funding working capital and general corporate purposes. On October 31, 2022 and December 6, 2022, the Company made draws of $675,000 and €220,000, respectively. The Company must pay the outstanding principal amount of the Term Loan Facility, plus accrued and unpaid interest, not later than the maturity date of August 12, 2024. The Company may prepay all or a portion of the Term Loan Facility, plus accrued and unpaid interest, from time to time, without premium or penalty. At the Company’s election, U.S. dollar-denominated loans under the Term Loan Facility bear interest at an annual rate equal to either (a) SOFR (plus a 0.10% SOFR adjustment) for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 0.825% and 1.50% (0.825% as of December 31, 2022), determined based upon the Company’s consolidated net leverage ratio, or (b) the base rate (defined as the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds Effective Rate plus 0.5%, and SOFR (plus a 0.10% SOFR adjustment) for a 1 month period plus 1.0%) plus an applicable margin ranging between 0.00% and 0.50% (0.00% as of December 31, 2022), determined based upon the Company’s consolidated net leverage ratio. Euro-denominated loans under the Term Loan Facility bear interest at an annual rate equal to EURIBOR for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 0.825% and 1.50% (0.825% as of December 31, 2022), determined based upon the Company’s consolidated net leverage ratio. In 2022, the Company paid financing costs of $664 in connection with the Term Loan Facility. These costs were deferred and are being amortized over the term of the Term Loan Facility. The obligations of the Company and its subsidiaries in respect of the Term Loan Facility are unsecured. The Term Loan Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, indebtedness, fundamental changes, and changes in the nature of the Company’s business. Many of these limitations are subject to numerous exceptions. The Company is also required to maintain a Consolidated Interest Coverage Ratio of at least 3.5 to 1.0 as of the last day of any fiscal quarter. The Term Loan Facility also contains customary representations and warranties. The Term Loan Facility contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company. Upon the occurrence of an event of default, the outstanding obligations under the Term Loan Facility may be accelerated and become due and payable immediately. In addition, if certain change of control events occur with respect to the Company, the Company is required to repay the loans outstanding under the Term Loan Facility. 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: December 31, 2022 December 31, 2021 Fair Value Carrying Fair Value Carrying 1.750% Senior Notes, payable June 12, 2027; interest payable annually $ 482,139 535,103 601,037 566,380 3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually 431,605 500,000 538,545 500,000 3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually — — 615,630 600,000 U.S. commercial paper 785,998 785,998 598,000 598,000 European commercial paper 42,808 42,808 15,859 15,859 U.S. Term Loan Facility 675,000 675,000 — — European Term Loan Facility 235,445 235,445 — — Finance leases and other 52,050 52,050 53,163 53,163 Unamortized debt issuance costs (7,270) (7,270) (8,617) (8,617) Total debt 2,697,775 2,819,134 2,413,617 2,324,785 Less current portion of long term-debt and commercial paper 840,571 840,571 624,503 624,503 Long-term debt, less current portion $ 1,857,204 1,978,563 1,789,114 1,700,282 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, 2022 are as follows (1) : 2023 $ 840,571 2024 920,725 2025 9,012 2026 6,990 2027 539,284 Thereafter 509,822 $ 2,826,404 (1) |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are as follows: December 31, 2022 December 31, 2021 Outstanding checks in excess of cash $ 2,791 3,005 Accounts payable, trade 1,094,038 1,228,621 Accrued expenses 742,099 666,209 Product warranties 38,425 45,215 Accrued interest 8,748 17,940 Accrued compensation and benefits 238,347 256,428 Total accounts payable and accrued expenses $ 2,124,448 2,217,418 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. 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. 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, 2022, 2021 and 2020, respectively, are as follows: December 31, 2022 Cost of Goods Sold Selling, General and Administrative Expenses Total Operating lease costs Fixed $ 21,321 110,716 132,037 Short-term 17,005 19,154 36,159 Variable 7,689 35,985 43,674 Sub-leases (691) (1,652) (2,343) $ 45,324 164,203 209,527 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 11,108 — 11,108 Interest on lease liabilities — 816 816 $ 11,108 816 11,924 Net lease costs $ 221,451 December 31, 2021 Cost of Goods Sold Selling, General and Administrative Expenses 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 Expenses 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 Supplemental balance sheet information related to leases is as follows: Classification December 31, 2022 December 31, 2021 Assets Operating Leases ROU operating lease assets ROU operating lease assets $ 387,816 389,967 Finance Leases Property, plant and equipment, gross Property, plant and equipment 82,653 67,984 Accumulated depreciation Accumulated depreciation (30,218) (19,902) Property, plant and equipment, net Property, plant and equipment, net 52,435 48,082 Total lease assets $ 440,251 438,049 Liabilities Operating Leases Other current Current operating lease liabilities $ 105,266 104,434 Non-current Non-current operating lease liabilities 296,136 297,390 Total operating liabilities 401,402 401,824 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 11,765 9,560 Long-term debt Long-term debt, less current portion 40,285 38,390 Total finance liabilities 52,050 47,950 Total lease liabilities $ 453,452 449,774 Maturities of lease liabilities as of December 31, 2022 are as follows: Year ending December 31, Finance Leases Operating Leases Total 2023 $ 12,574 125,068 137,642 2024 10,939 103,229 114,168 2025 9,498 82,839 92,337 2026 7,344 61,815 69,159 2027 4,433 34,829 39,262 Thereafter 10,509 27,414 37,923 Total lease payments 55,297 435,194 490,491 Less imputed interest 3,247 33,792 Present value, Total $ 52,050 401,402 The Company had approximately $6,516 of leases that commenced after December 31, 2022 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: December 31, 2022 December 31, 2021 Weighted Average Remaining Lease Term Operating Leases 4.5 years 4.7 years Finance Leases 6.2 years 7.2 years Weighted Average Discount Rate Operating Leases 3.8 % 2.4 % Finance Leases 1.5 % 1.3 % Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 129,895 122,886 124,708 Operating cash flows from finance leases 816 772 690 Financing cash flows from finance leases 10,770 9,289 6,386 ROU assets obtained in exchange for lease obligations: Operating leases 119,115 186,605 110,036 Finance leases 16,160 13,395 18,248 Amortization: Amortization of ROU operating lease assets (1) 120,666 115,650 113,898 (1) Amortization of ROU operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows. |
Leases | Leases The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. 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. 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, 2022, 2021 and 2020, respectively, are as follows: December 31, 2022 Cost of Goods Sold Selling, General and Administrative Expenses Total Operating lease costs Fixed $ 21,321 110,716 132,037 Short-term 17,005 19,154 36,159 Variable 7,689 35,985 43,674 Sub-leases (691) (1,652) (2,343) $ 45,324 164,203 209,527 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 11,108 — 11,108 Interest on lease liabilities — 816 816 $ 11,108 816 11,924 Net lease costs $ 221,451 December 31, 2021 Cost of Goods Sold Selling, General and Administrative Expenses 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 Expenses 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 Supplemental balance sheet information related to leases is as follows: Classification December 31, 2022 December 31, 2021 Assets Operating Leases ROU operating lease assets ROU operating lease assets $ 387,816 389,967 Finance Leases Property, plant and equipment, gross Property, plant and equipment 82,653 67,984 Accumulated depreciation Accumulated depreciation (30,218) (19,902) Property, plant and equipment, net Property, plant and equipment, net 52,435 48,082 Total lease assets $ 440,251 438,049 Liabilities Operating Leases Other current Current operating lease liabilities $ 105,266 104,434 Non-current Non-current operating lease liabilities 296,136 297,390 Total operating liabilities 401,402 401,824 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 11,765 9,560 Long-term debt Long-term debt, less current portion 40,285 38,390 Total finance liabilities 52,050 47,950 Total lease liabilities $ 453,452 449,774 Maturities of lease liabilities as of December 31, 2022 are as follows: Year ending December 31, Finance Leases Operating Leases Total 2023 $ 12,574 125,068 137,642 2024 10,939 103,229 114,168 2025 9,498 82,839 92,337 2026 7,344 61,815 69,159 2027 4,433 34,829 39,262 Thereafter 10,509 27,414 37,923 Total lease payments 55,297 435,194 490,491 Less imputed interest 3,247 33,792 Present value, Total $ 52,050 401,402 The Company had approximately $6,516 of leases that commenced after December 31, 2022 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: December 31, 2022 December 31, 2021 Weighted Average Remaining Lease Term Operating Leases 4.5 years 4.7 years Finance Leases 6.2 years 7.2 years Weighted Average Discount Rate Operating Leases 3.8 % 2.4 % Finance Leases 1.5 % 1.3 % Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 129,895 122,886 124,708 Operating cash flows from finance leases 816 772 690 Financing cash flows from finance leases 10,770 9,289 6,386 ROU assets obtained in exchange for lease obligations: Operating leases 119,115 186,605 110,036 Finance leases 16,160 13,395 18,248 Amortization: Amortization of ROU operating lease assets (1) 120,666 115,650 113,898 (1) Amortization of ROU 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, 2022 | |
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, 2022, 2021 and 2020 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, 2022, and changes during the year then ended is presented as follows: Shares Weighted average Weighted average remaining Aggregate RSUs outstanding, December 31, 2021 439 $ 128.62 Granted 192 137.30 Released (134) 143.41 Forfeited (43) 140.66 RSUs outstanding, December 31, 2022 454 $ 126.79 1.0 $ 46,378 Expected to vest as of December 31, 2022 437 1.0 $ 44,668 The Company recognized stock-based compensation costs related to the issuance of RSUs of $22,409 ($16,582, net of taxes), $25,651 ($18,982, net of taxes) and $19,697 ($14,576, net of taxes) for the years ended December 31, 2022, 2021 and 2020, 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 $19,321 as of December 31, 2022, and will be recognized as expense over a weighted-average period of approximately 1.45 years. Additional information relating to the Company’s RSUs under the Company’s long-term incentive plans are as follows: 2022 2021 2020 RSUs outstanding, January 1 439 375 362 Granted 192 194 192 Released (134) (105) (146) Forfeited (43) (25) (33) RSUs outstanding, December 31 454 439 375 Expected to vest as of December 31 437 418 361 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Expense (Income) | Other Expense (Income) Following is a summary of other expense (income): 2022 2021 2020 Foreign currency losses (gains), net $ 15,429 6,298 7,815 Release of indemnification asset 7,324 — — Impairment of joint venture in Brazil — — 3,599 Resolution of foreign non-income tax contingencies — (6,211) — All other, net (14,367) (12,321) (12,165) Total other expense (income), net $ 8,386 (12,234) (751) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Following is a summary of (loss) earnings before income taxes for United States and foreign operations: 2022 2021 2020 United States $ (233,208) 380,632 94,829 Foreign 417,101 909,361 489,545 Earnings before income taxes $ 183,893 1,289,993 584,374 Income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 consists of the following: 2022 2021 2020 Current income taxes: U.S. federal $ 91,948 93,085 (33,821) State and local 11,230 24,904 7,794 Foreign 106,032 143,385 72,350 Total current 209,210 261,374 46,323 Deferred income taxes: U.S. federal (27,756) (2,655) 14,533 State and local 9,586 13,306 112 Foreign (32,930) (15,580) 7,679 Total deferred (51,100) (4,929) 22,324 Total income tax expense $ 158,110 256,445 68,647 The geographic dispersion of earnings and losses contributes to the annual changes in the Company’s effective tax rates. A substantial portion of the Company’s business activities are conducted in the United States, which gave rise to a loss in the current year. 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, 2022, 2021 and 2020 were (36.5)%, 33.8%, and (12.0)%, respectively, and its non-U.S. effective tax rates for the years ended December 31, 2022, 2021 and 2020 were 17.5%, 14.1%, and 16.3%, respectively. The difference in rates applicable in foreign jurisdictions results from many 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: 2022 2021 2020 Income taxes at statutory rate $ 38,618 270,898 122,719 State and local income taxes, net of federal income tax benefit 4,858 25,658 8,081 Foreign income taxes (1) (50,483) (34,981) (57,898) Change in valuation allowance 44,814 5,947 35,381 Impairment of non-deductible goodwill 132,497 — — Loss on previously taxed earnings — — (10,346) Carryback rate differential (2) — (15,743) (33,739) Fixed asset adjustments (7,289) (7,113) (8,630) Non-deductible expenses 11,250 8,128 8,424 General business credits and incentives (21,833) (3,958) (4,004) Global intangible low-taxed income 7,200 34,400 2,500 Italy step-up adjustment (3) — (22,163) — Tax contingencies and audit settlements, net (96) 12,505 6,779 Other, net (1,426) (17,133) (620) $ 158,110 256,445 68,647 (1) Foreign income taxes include statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. (2) 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. (3) 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, 2022 and 2021 are presented below: 2022 2021 Deferred tax assets: Accounts receivable $ 15,783 16,550 Inventories 53,088 38,388 Employee benefits 47,089 54,865 Accrued expenses and other 95,682 73,983 Deductible state tax and interest benefit 7,584 7,206 Intangibles 122,710 135,777 Lease liabilities 108,596 106,753 Interest expense 10,749 — Federal, foreign and state net operating losses and credits 448,759 408,434 Gross deferred tax assets 910,040 841,956 Valuation allowance (284,347) (236,357) Net deferred tax assets 625,693 605,599 Deferred tax liabilities: Inventories (17,415) (23,484) Plant and equipment (463,810) (467,451) Intangibles (175,788) (188,417) Right of use operating lease assets (102,959) (101,935) Prepaids (47,079) (45,077) Other liabilities (58,799) (67,914) Gross deferred tax liabilities (865,850) (894,278) Net deferred tax liability $ (240,157) (288,679) 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, 2022, and 2021 is $284,347 and $236,357, respectively. The valuation allowance as of December 31, 2022 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 2022 valuation allowance was an increase of $47,990 related to increased losses, foreign currency translation, and other activities. 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. 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, 2022, the Company has state net operating loss carry forwards and state tax credits with potential tax benefits of $46,388, net of federal income tax benefit; these carry forwards expire over various periods based on taxing jurisdiction. A valuation allowance totaling $31,760 has been recorded against these state deferred tax assets as of December 31, 2022. In addition, as of December 31, 2022, the Company has credits and net operating loss carry forwards in the U.S. with potential tax benefits of $6,753 and in various foreign jurisdictions with potential tax benefits of $1,565,514. A valuation allowance of $6,242 and $246,345, respectively, has been recorded against these deferred tax assets as of December 31, 2022. 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 $1,169,896 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, 2022 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, 2022, the Company’s gross amount of unrecognized tax benefits is $1,230,632, excluding interest and penalties. If the Company were to prevail on all uncertain tax positions, $47,881 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: 2022 2021 Balance as of January 1 $ 1,296,523 1,388,391 Additions based on tax positions related to the current year 1,439 458 Additions for tax positions of prior years 4,678 18,001 Reductions resulting from the lapse of the statute of limitations (3,419) (3,336) Effects of foreign currency translation (68,589) (106,991) Balance as of December 31 $ 1,230,632 1,296,523 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 2022, resulting in an updated balance of $1,169,896 as of December 31, 2022. As of December 31, 2022 and 2021, the Company has $14,801 and $14,494, 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, 2022, 2021 and 2020, the Company accrued interest and penalties through income tax expense of $437, $3,236 and $(695), respectively. The Company believes that its unrecognized tax benefits could decrease by $9,152 within the next twelve months. The Company’s 2018, 2019 and 2020 federal tax returns are currently under audit by the Internal Revenue Service. 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 S.à r.l. (“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 initiated new assessments for later years against FIL rather than Unilin BV. In that connection, the BTA alleged that FIL had a taxable presence in Belgium and should have been 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 in April 2022 issued new assessments that total €186,734 (including penalties but excluding interest) for those years using different calculations. The Company was expecting 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. These assessments would involve the same underlying facts at issue in the above referenced cases where Unilin BV prevailed at two different levels. Although Mohawk believes its tax position in Belgium was correct, FIL entered into an agreement with the BTA on November 23, 2022, to settle the dispute for a one-time payment of €3,000. No fines were upheld due to the good faith of the company. This settlement covers calendar years ending December 31, 2013, through 2020. Consequently, FIL will not be liable for additional taxes, penalties, or interest related to all calendar years through the year ending December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company had approximately $19,614 and $1,432 in standby letters of credit for various insurance contracts and commitments to foreign vendors as of December 31, 2022 and 2021, respectively that expire within two years. From time to time in the regular course of its business, the Company is involved in various lawsuits, claims, investigations and other legal matters. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject. 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 sought 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. On October 14, 2022, the Gadsden Water Board settled its claims against Mohawk Industries, Inc. and Mohawk Carpet, LLC. The case filed by the Centre Water Board remains pending. 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 all pending matters 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 alleged 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 was 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 commenced. On January 26, 2022, Lead Plaintiff moved for class certification, to appoint itself as class representative, and for appointment of class counsel. The court granted plaintiff’s motion for class certification on November 28, 2022. On December 13, 2022, the parties reached an agreement in principle to settle the Securities Class Action for $60,000, of which a significant portion is covered by insurance, in exchange for the dismissal and a release of all claims against the defendants (the “Agreement”). The Agreement, which is subject to court approval, is without admission of fault or wrongdoing by defendants. On February 6, 2023, the court issued an order granting Lead Plaintiff’s motion to preliminarily approve the settlement and setting May 31, 2023 as the date of the final settlement hearing. The Company believes the allegations in the Securities Class Action are without merit. 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 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 alleged that defendants violated Sections 11 and 12 of the Securities Act of 1933. The complaint was 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 according to the terms set forth in the court’s order to stay litigation. The parties reached an agreement in principle to settle the lawsuit, which will be funded in full by Mohawk’s insurers, in exchange for the dismissal and a release of all claims against the defendants (the “Settlement Agreement”). The Settlement Agreement, which is subject to court approval, is without admission of fault or wrongdoing by defendants. The Company believes the allegations in the lawsuit are without merit. 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, April 23, 2021, and May 11, 2022. Five 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. 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 filed in April 2021 and answers to the same. On October 5, 2021, all four investor actions filed in April 2021 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 the four actions filed in April 2021, dismissing the Georgia Securities Act claims as to all defendants, and the negligent misrepresentation claim as to the Company. On May 19, 2022, the parties in the last-filed action filed a joint motion to transfer the investor action initiated on May 11, 2022 to the Metro Atlanta Business Case Division where the other four actions were and are pending. On August 2, 2022, this motion was granted and the last-filed investor action initiated on May 11, 2022 was transferred to the Metro Atlanta Business Case Division. On September 1, 2022, defendants in the last-filed investor action filed motions to dismiss the complaint filed on May 2022 and answers to the same. On November 16, 2022, plaintiffs in the last-filed investor action voluntarily dismissed the suit. The Company intends to vigorously defend against the claims in these actions. Federal Investor Actions The Company and certain of its present and former executive officers were named as defendants in three additional non-class action lawsuits filed in the United States District Court for the Northern District of Georgia on June 22, 2021, March 25, 2022, and April 26, 2022 (collectively, “Federal Investor Actions”), respectively. Each complaint is brought on behalf of one or more 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 lawsuits seek compensatory and punitive damages and attorneys’ fees. On December 13, 2021, defendants filed motions to dismiss the June 22, 2021 complaint, which motions are fully briefed and remain pending. On July 6, 2022, defendants filed motions to dismiss the March 25, 2022 complaint, which motions are fully briefed and remain pending. On July 27, 2022, defendants filed motions to dismiss the April 26, 2022 complaint, which motions are fully briefed as of November 4, 2022 and remain pending. On August 9, 2022, defendants filed a motion to consolidate all three Federal Investor Actions for pre-trial purposes, which motion is fully briefed and remains pending. The Company intends to vigorously defend against the claims asserted in the Federal Investor Actions. 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”), in the Superior Court of Gordon County of the State of Georgia on March 3, 2021 and July 12, 2021 (the “Georgia Derivative Actions”), and in the Delaware Court of Chancery on March 10, 2022 (the “Delaware Derivative Action”). 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 to 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. On February 28, 2022, the court granted a stay of the Georgia Derivative Actions until the entry of a final judgment in the NDGA Derivative Actions and stipulating that the prevailing party in the NDGA Derivative Actions would be the prevailing party in the Georgia Derivative Actions. On April 6, 2022, the court granted a stay of the Delaware Derivative Action until the entry of a final judgment in the NDGA Derivative Actions and stipulating that the prevailing party in the NDGA Derivative Actions would be the prevailing party in the Delaware Derivative Action. 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, 2022 | |
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: 2022 2021 2020 Net cash paid during the years for: Interest $ 75,199 75,514 44,584 Income taxes $ 248,693 323,718 106,891 Supplemental schedule of non-cash investing and financing activities: Unpaid property plant and equipment in accounts payable and accrued expenses $ 118,701 117,084 90,767 Fair value of net assets acquired in acquisition $ 243,934 176,924 — Liabilities assumed in acquisition (34,332) (52,955) — $ 209,602 123,969 — |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has three reporting segments: Global Ceramic, Flooring NA and Flooring ROW. Global Ceramic 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. Flooring NA 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. Flooring ROW designs, manufactures, sources, licenses and markets laminate, sheet vinyl, LVT, wood flooring, roofing elements, insulation boards, medium-density fiberboard (“MDF”), chipboards and 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, 2022, 2021 or 2020. Segment information is as follows: 2022 2021 2020 Assets: Global Ceramic $ 4,841,310 5,160,776 5,250,069 Flooring NA 4,299,360 4,125,960 3,594,976 Flooring ROW 4,275,519 4,361,741 4,194,447 Corporate and intersegment eliminations 704,243 576,040 1,288,259 Total $ 14,120,432 14,224,517 14,327,751 Geographic net sales: United States $ 6,490,079 6,181,628 5,530,407 Europe 3,152,051 3,117,892 2,486,770 Russia 549,597 450,010 385,830 Other 1,545,338 1,451,083 1,149,190 Total $ 11,737,065 11,200,613 9,552,197 Long-lived assets: (1) United States $ 2,317,409 2,309,575 2,230,971 Belgium 961,086 976,311 983,627 Other 1,770,499 1,740,946 1,699,768 Total $ 5,048,994 5,026,832 4,914,366 Net sales by product categories: Ceramic & Stone $ 4,320,423 3,938,654 3,457,203 Carpet & Resilient 4,235,815 4,294,042 3,735,888 Laminate & Wood 1,964,486 1,852,766 1,538,967 Other (2) 1,216,341 1,115,151 820,139 Total $ 11,737,065 11,200,613 9,552,197 Net sales: Global Ceramic $ 4,307,681 3,917,319 3,432,756 Flooring NA 4,207,041 4,116,405 3,594,075 Flooring ROW 3,222,343 3,166,889 2,525,366 Total $ 11,737,065 11,200,613 9,552,197 (1) Long-lived assets are composed of property, plant and equipment - net, and ROU operating lease assets. (2) Other includes roofing elements, insulation boards, chipboards and IP contracts. 2022 2021 2020 Operating (loss) income: Global Ceramic $ (236,066) 403,135 167,731 Flooring NA 231,076 407,577 147,442 Flooring ROW 340,167 571,126 366,934 Corporate and intersegment eliminations (90,960) (46,827) (46,105) Total $ 244,217 1,335,011 636,002 Depreciation and amortization: Global Ceramic $ 198,866 210,634 215,488 Flooring NA 231,279 211,872 214,599 Flooring ROW 156,041 156,700 164,701 Corporate 9,278 12,505 12,719 Total $ 595,464 591,711 607,507 Capital expenditures (excluding acquisitions): Global Ceramic $ 154,266 167,224 121,418 Flooring NA 231,068 327,691 186,179 Flooring ROW 178,313 164,318 113,378 Corporate 17,095 16,887 4,582 Total $ 580,742 676,120 425,557 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 InvestmentsThe Company invests in high quality credit instruments. At December 31, 2022 and December 31, 2021, short-term investments consisted solely of investments in the Company’s commercial paper by its wholly-owned captive insurance company. |
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 revenue 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 a change in 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, employee benefits, depreciation, general manufacturing overhead and various other costs of manufacturing. Inventories on hand are compared against anticipated future usage, which is a function of historical usage, anticipated future selling price, expected sales below cost, excessive quantities and an evaluation for obsolescence. |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, including capitalized interest. Depreciation is calculated on a straight-line basis over the estimated remaining useful lives, which are 15-40 years for buildings and improvements, 3-25 years for machinery and equipment, 3-7 years for furniture and fixtures and the shorter of the estimated useful life or lease term for leasehold improvements. |
Accounting for Business Combinations | Accounting for Business Combinations The Company accounts for business combinations under the acquisition method of accounting which requires it to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In accordance with the provisions of the FASB ASC Topic 350, Intangibles-Goodwill and Other, the Company tests goodwill and other intangible assets with indefinite lives, which for the Company are tradenames, 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’s annual impairment tests of goodwill and tradenames may be completed through qualitative assessments. The Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test, for any reporting unit or tradename, in any period. The Company can resume the qualitative assessment for any reporting unit or tradename in any subsequent period. The Company has identified Global Ceramic, Flooring North America (“Flooring NA”) and Flooring Rest of the World (“Flooring ROW”) as its reporting units for the purposes of allocating goodwill as well as assessing impairments. The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. Under a qualitative approach, the Company’s impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. If the Company elects to bypass the qualitative assessment for any reporting units, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its fair value, the Company performs a quantitative goodwill impairment test that requires it to estimate the fair value of the reporting unit. The quantitative goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgments and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy approaches. If the carrying value of a reporting unit exceeds its fair value, the Company will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. 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 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. Under a qualitative approach, the Company’s impairment review for tradenames consists of an assessment of whether it is more-likely-than-not that a tradename’s fair value is less than its carrying value. If the Company elects to bypass the qualitative assessment for any tradename, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a tradename exceeds its fair value, the Company performs a quantitative tradename impairment test of the tradename. The quantitative impairment evaluation for tradenames involves a comparison of the estimated fair value of the tradename to its carrying amount. If the carrying value of the tradename exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The determination of fair value used in the impairment evaluation is based on discounted estimates of future sales projections attributable to ownership of the tradenames. 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 tradenames. Estimated cash flows are sensitive to changes in the economy among other things. Intangible assets with finite lives are amortized based on average lives, which range from 5-20 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. Variable rent expenses consist primarily of maintenance, property taxes and charges based on usage. 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 Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
Financial Instruments | Financial Instruments The Company’s financial instruments consist primarily of 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 variable-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 Warranties The Company warrants certain qualitative attributes of its flooring products. The Company has recorded a provision for estimated warranty and related costs, based on historical experience and periodically adjusts these provisions to reflect actual experience. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived asset groups, which include intangible assets 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. |
Earnings per Share ("EPS") | Earnings per Share (“EPS”) Basic earnings per share 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. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted based on the grant-date fair value estimated in accordance with ASC 718-10, Stock Compensation . Compensation expense is generally recognized on a straight-line basis over the awards’ estimated lives for fixed awards with ratable vesting provisions. |
Employee Benefit Plans | Employee Benefit Plans The Company has 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 $63,648 and $24,483 in 2022, $61,082 and $23,884 in 2021 and $56,241 and $13,509 in 2020, respectively. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and 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 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. |
Fiscal Year | Fiscal Year The Company ends its fiscal year on December 31. Each of the first three quarters in the fiscal year ends on the Saturday nearest the calendar quarter end with a thirteen week fiscal quarter. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — Recently Adopted In December 2019, the FASB issued Accounting Standards Update (“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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Computations of Basic and Diluted Earnings Per Share | Computations of basic and diluted earnings per share are presented for the years ended December 31, 2022, 2021 and 2020, respectively, in the following table: 2022 2021 2020 Net earnings available to common stockholders $ 25,247 1,033,159 515,595 Weighted-average common shares outstanding—basic and diluted: Weighted-average common shares outstanding—basic 63,826 68,852 71,214 Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net 236 293 187 Weighted-average common shares outstanding-diluted 64,062 69,145 71,401 Earnings per share attributable to Mohawk Industries, Inc. Basic $ 0.40 15.01 7.24 Diluted $ 0.39 14.94 7.22 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2022, 2021 and 2020 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, 2019 $ (753,108) (12,716) (765,824) Current period other comprehensive income (loss) 72,853 (2,174) 70,679 Balance as of December 31, 2020 (680,255) (14,890) (695,145) Current period other comprehensive (loss) income (278,944) 7,137 (271,807) Balance as of December 31, 2021 (959,199) (7,753) (966,952) Current period other comprehensive (loss) income (155,430) 8,124 (147,306) Balance as of December 31, 2022 $ (1,114,629) 371 (1,114,258) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020, respectively: December 31, 2022 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets United States $ 2,403,292 4,072,952 13,835 6,490,079 Europe 875,414 6,322 2,270,315 3,152,051 Russia 374,539 23 175,035 549,597 Other 654,436 127,744 763,158 1,545,338 Total $ 4,307,681 4,207,041 3,222,343 11,737,065 Product Categories Ceramic & Stone $ 4,282,887 37,536 — 4,320,423 Carpet & Resilient 24,794 3,296,152 914,869 4,235,815 Laminate & Wood — 873,353 1,091,133 1,964,486 Other (1) — — 1,216,341 1,216,341 Total $ 4,307,681 4,207,041 3,222,343 11,737,065 December 31, 2021 Global Ceramic Flooring NA Flooring ROW 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 Flooring NA Flooring ROW 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 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. |
Restructuring, Acquisition an_2
Restructuring, Acquisition and Integration-Related Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Restructuring, acquisition and integration-related costs consisted of the following during the year ended December 31, 2022, 2021 and 2020, respectively (in thousands): 2022 2021 2020 Cost of sales Restructuring costs $ 67,621 17,899 101,230 Acquisition integration-related costs 396 497 1,153 Restructuring and acquisition integration-related costs $ 68,017 18,396 102,383 Selling, general and administrative expenses Restructuring costs $ 9,094 1,301 24,127 Acquisition transaction-related costs 1,654 2,372 213 Acquisition integration-related costs 2,992 1,568 2,127 Restructuring, acquisition transaction and integration-related costs $ 13,740 5,241 26,467 |
Schedule of Restructuring and Related Costs | The restructuring activity for the years ended December 31, 2022 and 2021, respectively is as follows (in thousands): Lease impairments Asset write-downs Severance Other restructuring costs Total Balance as of December 31, 2020 $ — — 11,576 729 12,305 Restructuring costs Global Ceramic 226 1,458 134 808 2,626 Flooring NA (37) 7,595 (284) 9,614 16,888 Flooring ROW — (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 Restructuring costs Global Ceramic — — 3,365 — 3,365 Flooring NA — 29,327 741 14,406 44,474 Flooring ROW — 9,371 12,677 6,828 28,876 Corporate — — — — — Total restructuring costs for 2022 — 38,698 16,783 21,234 76,715 Cash payments — — (8,557) (21,241) (29,798) Non-cash items — (38,698) 177 (988) (39,509) Balance as of December 31, 2022 $ — — 10,037 — 10,037 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 2022 restructuring costs recorded in: Cost of sales $ — 38,698 7,915 21,008 67,621 Selling, general and administrative expenses — — 8,868 226 9,094 Total restructuring costs for 2022 $ — 38,698 16,783 21,234 76,715 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents the items measured at fair value as of December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Short-term investments: Commercial paper (Level 2) $ 158,000 323,000 The fair values and carrying values of the Company’s debt are disclosed in Note 10, Long-Term Debt |
Receivables, net (Tables)
Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Net Components of Receivables | December 31, 2022 December 31, 2021 Customers, trade $ 1,699,130 1,721,584 Income tax receivable 60,080 73,727 Other 219,355 117,823 1,978,565 1,913,134 Less: allowance for discounts, returns, claims and doubtful accounts 73,779 73,149 Receivables, net $ 1,904,786 1,839,985 |
Schedule of Allowances For Discounts, Returns, Claims And Doubtful Accounts | The following table reflects the activity of allowances for discounts, returns, claims and doubtful accounts for the years ended December 31: Balance at beginning of year Acquisitions Additions charged to net sales or Deductions (1) Balance at end of year 2020 $ 61,921 — 384,403 362,642 83,682 2021 83,682 644 357,635 368,812 73,149 2022 73,149 584 382,027 381,981 73,779 (1) Represents charge-offs, net of recoveries . |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Net Components of Inventories | The components of inventories are as follows: December 31, 2022 December 31, 2021 Finished goods $ 1,986,005 1,677,707 Work in process 160,757 144,004 Raw materials 647,003 569,961 Total inventories $ 2,793,765 2,391,672 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The following tables summarize the components of goodwill and intangible assets: Goodwill: Global Ceramic Flooring NA Flooring ROW Total Balances as of December 31, 2020 (1) $ 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 (1) 1,031,337 531,144 1,045,428 2,607,909 Goodwill adjustments related to acquisitions — — (2,722) (2,722) Goodwill recognized during the period — 60,841 11,542 72,383 Impairment charge during the period (688,514) — — (688,514) Currency translation during the period (2,989) — (58,308) (61,297) Balances as of December 31, 2022 $ 339,834 591,985 995,940 1,927,759 (1) Net of accumulated impairment losses of $1,327,425 ($531,930 in Global Ceramic, $343,054 in Flooring NA and $452,441 in Flooring ROW). |
Schedule of Indefinite Life Assets Not Subject to Amortization | Tradenames Indefinite life assets not subject to amortization: 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 Intangible assets acquired during the year 335 Intangible assets impaired during the year (7,257) Currency translation during the year (19,655) Balance as of December 31, 2022 $ 668,328 |
Schedule of Intangible Assets Subject to Amortization | Customer Patents Other Total Intangible assets subject to amortization: Balances as of December 31, 2020 Gross carrying amount $ 699,795 273,570 6,945 980,310 Accumulated amortization (481,256) (273,426) (1,289) (755,971) Net intangible assets subject to amortization 218,539 144 5,656 224,339 Balances as of December 31, 2021 Gross carrying amount 680,177 256,336 6,786 943,299 Accumulated amortization (483,748) (252,414) (2,062) (738,224) Net intangible assets subject to amortization 196,429 3,922 4,724 205,075 Balances as of December 31, 2022 Gross carrying amount 673,586 242,089 8,511 924,186 Accumulated amortization (493,361) (239,010) (2,195) (734,566) Net intangible assets subject to amortization $ 180,225 3,079 6,316 189,620 |
Schedule of Amortization Expense | Years Ended December 31, 2022 2021 2020 Amortization expense $ 28,086 29,280 28,891 |
Schedule of Expected Amortization Expense | Estimated amortization expense for the years ending December 31 are as follows: 2023 $ 28,049 2024 27,334 2025 27,117 2026 26,896 2027 19,972 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Following is a summary of property, plant and equipment: December 31, 2022 December 31, 2021 Land $ 466,820 465,240 Buildings and improvements 1,851,390 1,862,463 Machinery and equipment 6,310,442 6,023,087 Furniture and fixtures 162,864 158,315 Leasehold improvements 107,079 102,766 Construction in progress 749,184 638,716 9,647,779 9,250,587 Less: accumulated depreciation 4,986,601 4,613,722 Net property, plant and equipment $ 4,661,178 4,636,865 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair values and carrying values of the Company’s debt instruments are detailed as follows: December 31, 2022 December 31, 2021 Fair Value Carrying Fair Value Carrying 1.750% Senior Notes, payable June 12, 2027; interest payable annually $ 482,139 535,103 601,037 566,380 3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually 431,605 500,000 538,545 500,000 3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually — — 615,630 600,000 U.S. commercial paper 785,998 785,998 598,000 598,000 European commercial paper 42,808 42,808 15,859 15,859 U.S. Term Loan Facility 675,000 675,000 — — European Term Loan Facility 235,445 235,445 — — Finance leases and other 52,050 52,050 53,163 53,163 Unamortized debt issuance costs (7,270) (7,270) (8,617) (8,617) Total debt 2,697,775 2,819,134 2,413,617 2,324,785 Less current portion of long term-debt and commercial paper 840,571 840,571 624,503 624,503 Long-term debt, less current portion $ 1,857,204 1,978,563 1,789,114 1,700,282 |
Schedule of Maturities of Long-Term Debt | The aggregate maturities of total debt as of December 31, 2022 are as follows (1) : 2023 $ 840,571 2024 920,725 2025 9,012 2026 6,990 2027 539,284 Thereafter 509,822 $ 2,826,404 (1) |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses are as follows: December 31, 2022 December 31, 2021 Outstanding checks in excess of cash $ 2,791 3,005 Accounts payable, trade 1,094,038 1,228,621 Accrued expenses 742,099 666,209 Product warranties 38,425 45,215 Accrued interest 8,748 17,940 Accrued compensation and benefits 238,347 256,428 Total accounts payable and accrued expenses $ 2,124,448 2,217,418 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease costs for the twelve months ended December 31, 2022, 2021 and 2020, respectively, are as follows: December 31, 2022 Cost of Goods Sold Selling, General and Administrative Expenses Total Operating lease costs Fixed $ 21,321 110,716 132,037 Short-term 17,005 19,154 36,159 Variable 7,689 35,985 43,674 Sub-leases (691) (1,652) (2,343) $ 45,324 164,203 209,527 Depreciation and Amortization Interest Total Finance lease costs Amortization of leased assets $ 11,108 — 11,108 Interest on lease liabilities — 816 816 $ 11,108 816 11,924 Net lease costs $ 221,451 December 31, 2021 Cost of Goods Sold Selling, General and Administrative Expenses 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 Expenses 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 Lease term and discount rate are as follows: December 31, 2022 December 31, 2021 Weighted Average Remaining Lease Term Operating Leases 4.5 years 4.7 years Finance Leases 6.2 years 7.2 years Weighted Average Discount Rate Operating Leases 3.8 % 2.4 % Finance Leases 1.5 % 1.3 % |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: Classification December 31, 2022 December 31, 2021 Assets Operating Leases ROU operating lease assets ROU operating lease assets $ 387,816 389,967 Finance Leases Property, plant and equipment, gross Property, plant and equipment 82,653 67,984 Accumulated depreciation Accumulated depreciation (30,218) (19,902) Property, plant and equipment, net Property, plant and equipment, net 52,435 48,082 Total lease assets $ 440,251 438,049 Liabilities Operating Leases Other current Current operating lease liabilities $ 105,266 104,434 Non-current Non-current operating lease liabilities 296,136 297,390 Total operating liabilities 401,402 401,824 Finance Leases Short-term debt Short-term debt and current portion of long-term debt 11,765 9,560 Long-term debt Long-term debt, less current portion 40,285 38,390 Total finance liabilities 52,050 47,950 Total lease liabilities $ 453,452 449,774 |
Schedule of Maturity of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 are as follows: Year ending December 31, Finance Leases Operating Leases Total 2023 $ 12,574 125,068 137,642 2024 10,939 103,229 114,168 2025 9,498 82,839 92,337 2026 7,344 61,815 69,159 2027 4,433 34,829 39,262 Thereafter 10,509 27,414 37,923 Total lease payments 55,297 435,194 490,491 Less imputed interest 3,247 33,792 Present value, Total $ 52,050 401,402 |
Schedule of Maturity of Finance Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 are as follows: Year ending December 31, Finance Leases Operating Leases Total 2023 $ 12,574 125,068 137,642 2024 10,939 103,229 114,168 2025 9,498 82,839 92,337 2026 7,344 61,815 69,159 2027 4,433 34,829 39,262 Thereafter 10,509 27,414 37,923 Total lease payments 55,297 435,194 490,491 Less imputed interest 3,247 33,792 Present value, Total $ 52,050 401,402 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 129,895 122,886 124,708 Operating cash flows from finance leases 816 772 690 Financing cash flows from finance leases 10,770 9,289 6,386 ROU assets obtained in exchange for lease obligations: Operating leases 119,115 186,605 110,036 Finance leases 16,160 13,395 18,248 Amortization: Amortization of ROU operating lease assets (1) 120,666 115,650 113,898 (1) Amortization of ROU 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, 2022 | |
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, 2022, and changes during the year then ended is presented as follows: Shares Weighted average Weighted average remaining Aggregate RSUs outstanding, December 31, 2021 439 $ 128.62 Granted 192 137.30 Released (134) 143.41 Forfeited (43) 140.66 RSUs outstanding, December 31, 2022 454 $ 126.79 1.0 $ 46,378 Expected to vest as of December 31, 2022 437 1.0 $ 44,668 |
Summary of 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: 2022 2021 2020 RSUs outstanding, January 1 439 375 362 Granted 192 194 192 Released (134) (105) (146) Forfeited (43) (25) (33) RSUs outstanding, December 31 454 439 375 Expected to vest as of December 31 437 418 361 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of Other Expense (Income) | Following is a summary of other expense (income): 2022 2021 2020 Foreign currency losses (gains), net $ 15,429 6,298 7,815 Release of indemnification asset 7,324 — — Impairment of joint venture in Brazil — — 3,599 Resolution of foreign non-income tax contingencies — (6,211) — All other, net (14,367) (12,321) (12,165) Total other expense (income), net $ 8,386 (12,234) (751) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings (Loss) From Continuing Operations Before Income Taxes | Following is a summary of (loss) earnings before income taxes for United States and foreign operations: 2022 2021 2020 United States $ (233,208) 380,632 94,829 Foreign 417,101 909,361 489,545 Earnings before income taxes $ 183,893 1,289,993 584,374 |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 consists of the following: 2022 2021 2020 Current income taxes: U.S. federal $ 91,948 93,085 (33,821) State and local 11,230 24,904 7,794 Foreign 106,032 143,385 72,350 Total current 209,210 261,374 46,323 Deferred income taxes: U.S. federal (27,756) (2,655) 14,533 State and local 9,586 13,306 112 Foreign (32,930) (15,580) 7,679 Total deferred (51,100) (4,929) 22,324 Total income tax expense $ 158,110 256,445 68,647 |
Schedule of 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: 2022 2021 2020 Income taxes at statutory rate $ 38,618 270,898 122,719 State and local income taxes, net of federal income tax benefit 4,858 25,658 8,081 Foreign income taxes (1) (50,483) (34,981) (57,898) Change in valuation allowance 44,814 5,947 35,381 Impairment of non-deductible goodwill 132,497 — — Loss on previously taxed earnings — — (10,346) Carryback rate differential (2) — (15,743) (33,739) Fixed asset adjustments (7,289) (7,113) (8,630) Non-deductible expenses 11,250 8,128 8,424 General business credits and incentives (21,833) (3,958) (4,004) Global intangible low-taxed income 7,200 34,400 2,500 Italy step-up adjustment (3) — (22,163) — Tax contingencies and audit settlements, net (96) 12,505 6,779 Other, net (1,426) (17,133) (620) $ 158,110 256,445 68,647 (1) Foreign income taxes include statutory rate differences, financing arrangements, withholding taxes, local income taxes, notional deductions, and other miscellaneous items. (2) 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. (3) The company realized a one-time Italian step-up benefit allowing for the realignment of tax asset values. |
Schedule of 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, 2022 and 2021 are presented below: 2022 2021 Deferred tax assets: Accounts receivable $ 15,783 16,550 Inventories 53,088 38,388 Employee benefits 47,089 54,865 Accrued expenses and other 95,682 73,983 Deductible state tax and interest benefit 7,584 7,206 Intangibles 122,710 135,777 Lease liabilities 108,596 106,753 Interest expense 10,749 — Federal, foreign and state net operating losses and credits 448,759 408,434 Gross deferred tax assets 910,040 841,956 Valuation allowance (284,347) (236,357) Net deferred tax assets 625,693 605,599 Deferred tax liabilities: Inventories (17,415) (23,484) Plant and equipment (463,810) (467,451) Intangibles (175,788) (188,417) Right of use operating lease assets (102,959) (101,935) Prepaids (47,079) (45,077) Other liabilities (58,799) (67,914) Gross deferred tax liabilities (865,850) (894,278) Net deferred tax liability $ (240,157) (288,679) |
Schedule of Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 Balance as of January 1 $ 1,296,523 1,388,391 Additions based on tax positions related to the current year 1,439 458 Additions for tax positions of prior years 4,678 18,001 Reductions resulting from the lapse of the statute of limitations (3,419) (3,336) Effects of foreign currency translation (68,589) (106,991) Balance as of December 31 $ 1,230,632 1,296,523 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Disclosures of Cash Flow Information | Supplemental disclosures of cash flow information are as follows: 2022 2021 2020 Net cash paid during the years for: Interest $ 75,199 75,514 44,584 Income taxes $ 248,693 323,718 106,891 Supplemental schedule of non-cash investing and financing activities: Unpaid property plant and equipment in accounts payable and accrued expenses $ 118,701 117,084 90,767 Fair value of net assets acquired in acquisition $ 243,934 176,924 — Liabilities assumed in acquisition (34,332) (52,955) — $ 209,602 123,969 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information is as follows: 2022 2021 2020 Assets: Global Ceramic $ 4,841,310 5,160,776 5,250,069 Flooring NA 4,299,360 4,125,960 3,594,976 Flooring ROW 4,275,519 4,361,741 4,194,447 Corporate and intersegment eliminations 704,243 576,040 1,288,259 Total $ 14,120,432 14,224,517 14,327,751 Geographic net sales: United States $ 6,490,079 6,181,628 5,530,407 Europe 3,152,051 3,117,892 2,486,770 Russia 549,597 450,010 385,830 Other 1,545,338 1,451,083 1,149,190 Total $ 11,737,065 11,200,613 9,552,197 Long-lived assets: (1) United States $ 2,317,409 2,309,575 2,230,971 Belgium 961,086 976,311 983,627 Other 1,770,499 1,740,946 1,699,768 Total $ 5,048,994 5,026,832 4,914,366 Net sales by product categories: Ceramic & Stone $ 4,320,423 3,938,654 3,457,203 Carpet & Resilient 4,235,815 4,294,042 3,735,888 Laminate & Wood 1,964,486 1,852,766 1,538,967 Other (2) 1,216,341 1,115,151 820,139 Total $ 11,737,065 11,200,613 9,552,197 Net sales: Global Ceramic $ 4,307,681 3,917,319 3,432,756 Flooring NA 4,207,041 4,116,405 3,594,075 Flooring ROW 3,222,343 3,166,889 2,525,366 Total $ 11,737,065 11,200,613 9,552,197 (1) Long-lived assets are composed of property, plant and equipment - net, and ROU operating lease assets. (2) Other includes roofing elements, insulation boards, chipboards and IP contracts. 2022 2021 2020 Operating (loss) income: Global Ceramic $ (236,066) 403,135 167,731 Flooring NA 231,076 407,577 147,442 Flooring ROW 340,167 571,126 366,934 Corporate and intersegment eliminations (90,960) (46,827) (46,105) Total $ 244,217 1,335,011 636,002 Depreciation and amortization: Global Ceramic $ 198,866 210,634 215,488 Flooring NA 231,279 211,872 214,599 Flooring ROW 156,041 156,700 164,701 Corporate 9,278 12,505 12,719 Total $ 595,464 591,711 607,507 Capital expenditures (excluding acquisitions): Global Ceramic $ 154,266 167,224 121,418 Flooring NA 231,068 327,691 186,179 Flooring ROW 178,313 164,318 113,378 Corporate 17,095 16,887 4,582 Total $ 580,742 676,120 425,557 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Oct. 19, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2015 EUR (€) | |
Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents | $ 509,623 | $ 268,895 | |||
Advertising and promotion expenses | 126,898 | 139,538 | $ 105,974 | ||
Co-op advertising expenses | 15,231 | 22,092 | 16,087 | ||
Repayments of senior debt | $ 600,000 | 932,252 | 326,904 | ||
Minimum eligible service period (days) | 60 days | ||||
Employer matching contribution, percent of match | 50% | ||||
Maximum percentage of employee salary company matches at disclosed ratio | 6% | ||||
Employee contributions | $ 63,648 | 61,082 | 56,241 | ||
Employer contributions to employee benefit plan | 24,483 | 23,884 | 13,509 | ||
Projected benefit obligation | 55,236 | 80,324 | |||
Projected plan assets | 50,702 | 65,118 | |||
Funded status of plan | 4,534 | 15,206 | |||
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% | 2% | |||
Repayments of senior debt | € | € 500,000,000 | ||||
Increase (decrease) in U.S. dollar value of euro denominated debt | (35,363) | 54,907 | |||
Increase (decrease) in U.S. dollar value of euro denominated debt, net of tax | (26,928) | $ 41,708 | |||
Accumulated other comprehensive income (loss) | |||||
Significant Accounting Policies [Line Items] | |||||
Funded status of plan | 82 | 8,866 | |||
Other noncurrent liabilities | |||||
Significant Accounting Policies [Line Items] | |||||
Funded status of plan | $ 4,452 | 6,340 | |||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Finite intangible assets useful life (years) | 5 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 | $ 210,368 | $ 200,501 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Computations Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net earnings available to common stockholders | $ 25,247 | $ 1,033,159 | $ 515,595 |
Weighted-average common shares outstanding—basic and diluted: | |||
Weighted-average common shares outstanding-basic (in shares) | 63,826 | 68,852 | 71,214 |
Add weighted-average dilutive potential common shares - options and to purchase common shares and RSUs, net (in shares) | 236 | 293 | 187 |
Weighted-average common shares outstanding-diluted (in shares) | 64,062 | 69,145 | 71,401 |
Earnings per share attributable to Mohawk Industries, Inc. | |||
Basic (in dollars per share) | $ 0.40 | $ 15.01 | $ 7.24 |
Diluted (in dollars per share) | $ 0.39 | $ 14.94 | $ 7.22 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 8,428,216 | $ 8,541,158 | $ 8,126,448 |
Ending balance | 8,017,914 | 8,428,216 | 8,541,158 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (959,199) | (680,255) | (753,108) |
Current period other comprehensive income (loss) | (155,430) | (278,944) | 72,853 |
Ending balance | (1,114,629) | (959,199) | (680,255) |
Prior pension and post-retirement benefit service cost and actuarial gain (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (7,753) | (14,890) | (12,716) |
Current period other comprehensive income (loss) | 8,124 | 7,137 | (2,174) |
Ending balance | 371 | (7,753) | (14,890) |
Total | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (966,952) | (695,145) | (765,824) |
Current period other comprehensive income (loss) | (147,306) | (271,807) | 70,679 |
Ending balance | $ (1,114,258) | $ (966,952) | $ (695,145) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 02, 2021 | Sep. 07, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,927,759 | $ 2,607,909 | $ 2,650,831 | ||
Flooring North America Segment | 2022 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | 164,579 | ||||
Goodwill | 60,842 | ||||
Intangible assets subject to amortization | 19,900 | ||||
Flooring ROW | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | 121,027 | ||||
Goodwill | 52,536 | ||||
Intangible assets subject to amortization | 19,910 | ||||
Flooring ROW | 2022 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | 47,964 | ||||
Goodwill | 11,542 | ||||
Intangible assets subject to amortization | $ 3,376 | ||||
Flooring ROW | Insulation Manufacturer | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | $ 66,334 | ||||
Flooring ROW | MDF Production Plant | |||||
Business Acquisition [Line Items] | |||||
Purchase agreement price | $ 44,357 | ||||
Flooring ROW | Other 2021 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liability | $ 72,572,000 | $ 65,744,000 | |
Revenue recognized related to contract liabilities | 0 | 0 | $ 0 |
Capitalized contract cost | 59,015,000 | 49,644,000 | |
Amortization of capitalized contract costs | $ 55,520,000 | $ 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 11,737,065 | $ 11,200,613 | $ 9,552,197 |
Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,320,423 | 3,938,654 | 3,457,203 |
Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,235,815 | 4,294,042 | 3,735,888 |
Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,964,486 | 1,852,766 | 1,538,967 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,216,341 | 1,115,151 | 820,139 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,490,079 | 6,181,628 | 5,530,407 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,152,051 | 3,117,892 | 2,486,770 |
Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 549,597 | 450,010 | 385,830 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,545,338 | 1,451,083 | 1,149,190 |
Operating segments | Global Ceramic | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,307,681 | 3,917,319 | 3,432,756 |
Operating segments | Global Ceramic | Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,282,887 | 3,903,597 | 3,425,672 |
Operating segments | Global Ceramic | Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24,794 | 13,722 | 7,084 |
Operating segments | Global Ceramic | Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Global Ceramic | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Global Ceramic | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,403,292 | 2,193,234 | 2,050,470 |
Operating segments | Global Ceramic | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 875,414 | 849,247 | 699,715 |
Operating segments | Global Ceramic | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 374,539 | 299,621 | 262,846 |
Operating segments | Global Ceramic | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 654,436 | 575,217 | 419,725 |
Operating segments | Flooring NA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,207,041 | 4,116,405 | 3,594,075 |
Operating segments | Flooring NA | Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 37,536 | 35,057 | 31,531 |
Operating segments | Flooring NA | Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,296,152 | 3,287,533 | 2,871,050 |
Operating segments | Flooring NA | Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 873,353 | 793,815 | 691,494 |
Operating segments | Flooring NA | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Flooring NA | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,072,952 | 3,978,146 | 3,477,556 |
Operating segments | Flooring NA | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,322 | 2,731 | 1,506 |
Operating segments | Flooring NA | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 23 | 94 | 50 |
Operating segments | Flooring NA | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 127,744 | 135,434 | 114,963 |
Operating segments | Flooring ROW | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,222,343 | 3,166,889 | 2,525,366 |
Operating segments | Flooring ROW | Ceramic & Stone | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Flooring ROW | Carpet & Resilient | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 914,869 | 992,787 | 857,754 |
Operating segments | Flooring ROW | Laminate & Wood | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,091,133 | 1,058,951 | 847,473 |
Operating segments | Flooring ROW | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,216,341 | 1,115,151 | 820,139 |
Operating segments | Flooring ROW | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 13,835 | 10,248 | 2,381 |
Operating segments | Flooring ROW | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,270,315 | 2,265,914 | 1,785,549 |
Operating segments | Flooring ROW | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 175,035 | 150,295 | 122,934 |
Operating segments | Flooring ROW | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 763,158 | $ 740,432 | $ 614,502 |
Restructuring, Acquisition an_3
Restructuring, Acquisition and Integration-Related Costs - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 76,715 | $ 19,200 | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 67,621 | 17,899 | $ 101,230 |
Acquisition integration-related costs | 396 | 497 | 1,153 |
Restructuring and acquisition integration-related costs | 68,017 | 18,396 | 102,383 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 9,094 | 1,301 | 24,127 |
Acquisition integration-related costs | 2,992 | 1,568 | 2,127 |
Acquisition transaction-related costs | 1,654 | 2,372 | 213 |
Restructuring and acquisition integration-related costs | $ 13,740 | $ 5,241 | $ 26,467 |
Restructuring, Acquisition an_4
Restructuring, Acquisition and Integration-Related Costs - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 2,629 | $ 12,305 | |
Provision | 76,715 | 19,200 | |
Cash payments | (29,798) | (19,329) | |
Non-cash items | (39,509) | (9,547) | |
Ending balance | 10,037 | 2,629 | $ 12,305 |
Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 67,621 | 17,899 | 101,230 |
Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 9,094 | 1,301 | 24,127 |
Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Provision | 0 | 189 | |
Cash payments | 0 | 0 | |
Non-cash items | 0 | (189) | |
Ending balance | 0 | 0 | 0 |
Lease impairments | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Lease impairments | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 189 | |
Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Provision | 38,698 | 8,102 | |
Cash payments | 0 | 0 | |
Non-cash items | (38,698) | (8,102) | |
Ending balance | 0 | 0 | 0 |
Asset write-downs (gains on disposals) | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 38,698 | 6,721 | |
Asset write-downs (gains on disposals) | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 1,381 | |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,634 | 11,576 | |
Provision | 16,783 | (1,051) | |
Cash payments | (8,557) | (8,507) | |
Non-cash items | 177 | (384) | |
Ending balance | 10,037 | 1,634 | 11,576 |
Severance | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 7,915 | (370) | |
Severance | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 8,868 | (681) | |
Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 995 | 729 | |
Provision | 21,234 | 11,960 | |
Cash payments | (21,241) | (10,822) | |
Non-cash items | (988) | (872) | |
Ending balance | 0 | 995 | $ 729 |
Other restructuring costs | Cost of sales | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 21,008 | 11,548 | |
Other restructuring costs | Selling, general and administrative expenses | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 226 | 412 | |
Corporate | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 1,212 | |
Corporate | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Corporate | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 1,017 | |
Corporate | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 195 | |
Corporate | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Operating segments | Global Ceramic | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 3,365 | 2,626 | |
Operating segments | Global Ceramic | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 226 | |
Operating segments | Global Ceramic | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 1,458 | |
Operating segments | Global Ceramic | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 3,365 | 134 | |
Operating segments | Global Ceramic | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 808 | |
Operating segments | Flooring NA | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 44,474 | 16,888 | |
Operating segments | Flooring NA | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | (37) | |
Operating segments | Flooring NA | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 29,327 | 7,595 | |
Operating segments | Flooring NA | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 741 | (284) | |
Operating segments | Flooring NA | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 14,406 | 9,614 | |
Operating segments | Flooring ROW | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 28,876 | (1,526) | |
Operating segments | Flooring ROW | Lease impairments | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 0 | 0 | |
Operating segments | Flooring ROW | Asset write-downs (gains on disposals) | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 9,371 | (1,968) | |
Operating segments | Flooring ROW | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Provision | 12,677 | (1,096) | |
Operating segments | Flooring ROW | Other restructuring costs | |||
Restructuring Reserve [Roll Forward] | |||
Provision | $ 6,828 | $ 1,538 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value, recurring | Level 2 | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 158,000 | $ 323,000 |
Receivables, net - Schedule of
Receivables, net - Schedule of Net Components Of Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Customers, trade | $ 1,699,130 | $ 1,721,584 |
Income tax receivable | 60,080 | 73,727 |
Other | 219,355 | 117,823 |
Receivables, gross | 1,978,565 | 1,913,134 |
Less: allowance for discounts, returns, claims and doubtful accounts | 73,779 | 73,149 |
Receivables, net | $ 1,904,786 | $ 1,839,985 |
Receivables, net - Schedule o_2
Receivables, net - Schedule of Allowances For Discounts, Returns, Claims And Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 73,149 | $ 83,682 | $ 61,921 |
Acquisitions | 584 | 644 | 0 |
Additions charged to net sales or costs and expenses | 382,027 | 357,635 | 384,403 |
Deductions | 381,981 | 368,812 | 362,642 |
Balance at end of year | $ 73,779 | $ 73,149 | $ 83,682 |
Inventories - Schedule of Net C
Inventories - Schedule of Net Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,986,005 | $ 1,677,707 |
Work in process | 160,757 | 144,004 |
Raw materials | 647,003 | 569,961 |
Total inventories | $ 2,793,765 | $ 2,391,672 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Oct. 01, 2022 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Impairment charge during the period | $ 688,514 | |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and indefinite-lived intangibles | |
Global Ceramic | ||
Goodwill [Line Items] | ||
Impairment charge during the period | $ 688,514 | |
Non-cash goodwill impairment charge , net of tax | 679,664 | |
Flooring ROW and Flooring NA | ||
Goodwill [Line Items] | ||
Impairment charge | 7,257 | |
Impairment of intangible assets net of tax | $ 5,939 | |
Flooring ROW | ||
Goodwill [Line Items] | ||
Excess of fair value over carrying value (as a percent) | 20% | |
Flooring NA | ||
Goodwill [Line Items] | ||
Excess of fair value over carrying value (as a percent) | 5% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 2,607,909,000 | $ 2,650,831,000 |
Goodwill recognized during the period | 72,383,000 | 56,930,000 |
Currency translation during the period | (61,297,000) | (99,852,000) |
Goodwill adjustments related to acquisitions | (2,722,000) | |
Impairment charge during the period | (688,514,000) | |
Goodwill, ending balance | 1,927,759,000 | 2,607,909,000 |
Flooring ROW | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 52,536,000 | |
Goodwill, ending balance | 52,536,000 | |
Operating segments | ||
Goodwill [Roll Forward] | ||
Accumulated impairment loss | 1,327,425 | |
Operating segments | Global Ceramic | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,031,337,000 | 1,047,561,000 |
Goodwill recognized during the period | 0 | 0 |
Currency translation during the period | (2,989,000) | (16,224,000) |
Goodwill adjustments related to acquisitions | 0 | |
Impairment charge during the period | (688,514,000) | |
Goodwill, ending balance | 339,834,000 | 1,031,337,000 |
Accumulated impairment loss | 531,930 | |
Operating segments | Flooring NA | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 531,144,000 | 531,144,000 |
Goodwill recognized during the period | 60,841,000 | 0 |
Currency translation during the period | 0 | 0 |
Goodwill adjustments related to acquisitions | 0 | |
Impairment charge during the period | 0 | |
Goodwill, ending balance | 591,985,000 | 531,144,000 |
Accumulated impairment loss | 343,054 | |
Operating segments | Flooring ROW | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,045,428,000 | 1,072,126,000 |
Goodwill recognized during the period | 11,542,000 | 56,930,000 |
Currency translation during the period | (58,308,000) | (83,628,000) |
Goodwill adjustments related to acquisitions | (2,722,000) | |
Impairment charge during the period | 0 | |
Goodwill, ending balance | 995,940,000 | $ 1,045,428,000 |
Accumulated impairment loss | $ 452,441 |
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, 2022 | Dec. 31, 2021 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite life assets not subject to amortization, beginning balance | $ 694,905 | $ 727,268 |
Intangible assets acquired during the year | 2,725 | |
Currency translation during the year | (19,655) | (35,088) |
Intangible assets acquired during the year | 335 | |
Intangible assets impaired during the year | (7,257) | |
Indefinite life assets not subject to amortization, ending balance | $ 668,328 | $ 694,905 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount | $ 924,186 | $ 943,299 | $ 980,310 |
Accumulated amortization | (734,566) | (738,224) | (755,971) |
Net Value | 189,620 | 205,075 | 224,339 |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount | 673,586 | 680,177 | 699,795 |
Accumulated amortization | (493,361) | (483,748) | (481,256) |
Net Value | 180,225 | 196,429 | 218,539 |
Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount | 242,089 | 256,336 | 273,570 |
Accumulated amortization | (239,010) | (252,414) | (273,426) |
Net Value | 3,079 | 3,922 | 144 |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount | 8,511 | 6,786 | 6,945 |
Accumulated amortization | (2,195) | (2,062) | (1,289) |
Net Value | $ 6,316 | $ 4,724 | $ 5,656 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 28,086 | $ 29,280 | $ 28,891 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 28,049 |
2024 | 27,334 |
2025 | 27,117 |
2026 | 26,896 |
2027 | $ 19,972 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 9,647,779 | $ 9,250,587 |
Less: accumulated depreciation | 4,986,601 | 4,613,722 |
Net property, plant and equipment | 4,661,178 | 4,636,865 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 466,820 | 465,240 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 1,851,390 | 1,862,463 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 6,310,442 | 6,023,087 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 162,864 | 158,315 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 107,079 | 102,766 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 749,184 | $ 638,716 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest included in property, plant and equipment | $ 16,895 | $ 9,082 | $ 6,362 |
Depreciation expense | 564,255 | 558,818 | $ 574,095 |
Finance leases | 82,653 | 67,984 | |
Finance leases, accumulated depreciation | $ 30,218 | $ 19,902 |
Long-Term Debt - Senior Credit
Long-Term Debt - Senior Credit Facility (Details) | 12 Months Ended | ||||
Aug. 12, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 18, 2024 USD ($) | May 07, 2020 | Oct. 18, 2019 | |
Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated interest coverage ratio | 3 | ||||
Commitment fee (as a percent) | 0.09% | ||||
Unamortized financing costs | $ 2,663,000 | ||||
Utilized borrowings under credit facility | 848,420,000 | ||||
Available amount under credit facility | 1,101,580,000 | ||||
Senior Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated interest coverage ratio | 3 | ||||
Senior Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.75 | 3.75 | |||
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 | 19,614,000 | ||||
2022 Amended Senior Secured Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated interest coverage ratio | 3.50 | ||||
Maximum borrowing capacity under credit facility | $ 1,950,000,000 | ||||
Line of credit facility, maximum increase In commitment amount | $ 600,000,000 | ||||
Unamortized financing costs | $ 1,879,000 | ||||
2022 Amended Senior Secured Credit Facility | Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity under credit facility | $ 1,485,000,000 | ||||
2022 Amended Senior Secured Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee (as a percent) | 0.09% | ||||
2022 Amended Senior Secured Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee (as a percent) | 0.20% | ||||
2022 Amended Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0.10% | 1% | |||
2022 Amended Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 1% | ||||
2022 Amended Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 1.75% | ||||
2022 Amended Senior Secured Credit Facility | Federal Funds Effective Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0.50% | ||||
2022 Amended Senior Secured Credit Facility | Monthly LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 1% | 0% | |||
2022 Amended Senior Secured Credit Facility | Monthly LIBOR | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0% | ||||
2022 Amended Senior Secured Credit Facility | Monthly LIBOR | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0.75% | ||||
2022 Amended Senior Secured Credit Facility | Foreign Currencies Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 1% | ||||
2022 Amended Senior Secured Credit Facility | Foreign Currencies Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 1% | ||||
2022 Amended Senior Secured Credit Facility | Foreign Currencies Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 1.75% | ||||
2022 Amended Senior Secured Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0% | ||||
2022 Amended Senior Secured Credit Facility | Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0% | ||||
2022 Amended Senior Secured Credit Facility | Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on debt instrument (as a percent) | 0.75% |
Long-Term Debt - Commercial Pap
Long-Term Debt - Commercial Paper (Details) - USD ($) | 12 Months Ended | ||||
Jul. 31, 2015 | Feb. 28, 2014 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 18, 2019 | |
United States | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 397 days | ||||
Maximum borrowing capacity under credit facility | $ 1,950,000,000 | ||||
Europe | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 183 days | ||||
Carrying Value | United States | |||||
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 785,998,000 | $ 598,000,000 | |||
Carrying Value | United States | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 27 years | ||||
Weighted average interest rate on debt | 4.85% | ||||
Carrying Value | Europe | |||||
Line of Credit Facility [Line Items] | |||||
Commercial paper | $ 42,808,000 | $ 15,859,000 | |||
Carrying Value | Europe | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Maturity period of debt | 11 years 9 months 18 days | ||||
Weighted average interest rate on debt | 1.98% |
Long-Term Debt - Senior Notes a
Long-Term Debt - Senior Notes and Term Loan (Details) | 12 Months Ended | ||||||||||||||
Dec. 06, 2022 EUR (€) | Oct. 31, 2022 USD ($) | Aug. 12, 2022 USD ($) | Jun. 12, 2020 USD ($) | May 14, 2020 USD ($) | Apr. 07, 2020 USD ($) | Jan. 31, 2013 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 01, 2022 | Oct. 03, 2022 USD ($) | Aug. 12, 2022 EUR (€) | Jun. 12, 2020 EUR (€) | May 15, 2020 | |
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs | $ 2,543,000 | $ 0 | $ 11,413,000 | ||||||||||||
1.750% Senior Notes, payable June 12, 2027; interest payable annually | |||||||||||||||
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% | 3.625% | |||||||||||||
Debt issuance costs | $ 5,476,000 | ||||||||||||||
3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount of debts | $ 600,000,000 | ||||||||||||||
Interest rate (as a percent) | 3.85% | 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 | ||||||||||||||
Secured Debt | Term Loan One | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Securitization agreement, maximum borrowing capacity | $ 575,000,000 | ||||||||||||||
Line of credit facility, maximum amount outstanding during period | $ 675,000,000 | ||||||||||||||
Payments of financing costs | $ 664,000 | ||||||||||||||
Secured Debt | Term Loan Two | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Securitization agreement, maximum borrowing capacity | € | € 220,000,000 | ||||||||||||||
Line of credit facility, maximum amount outstanding during period | € | € 220,000,000 | ||||||||||||||
Secured Debt | Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility maximum borrowing capacity | $ 100,000,000 | ||||||||||||||
Consolidated interest coverage ratio | 3.5 | 3.5 | |||||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt | Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 0.10% | ||||||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt | Term Loan | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 0.825% | 0.825% | |||||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt | Term Loan | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 1.50% | ||||||||||||||
Federal Funds Effective Swap Rate | Secured Debt | Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 0.50% | ||||||||||||||
Monthly Sofr | Secured Debt | Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 1% | ||||||||||||||
Base Rate | Secured Debt | Term Loan | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 0% | 0% | |||||||||||||
Base Rate | Secured Debt | Term Loan | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 0.50% | ||||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Secured Debt | Term Loan | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 0.825% | ||||||||||||||
Euro Interbank Offered Rate (EURIBOR) | Secured Debt | Term Loan | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on debt instrument (as a percent) | 1.50% |
Long-Term Debt - Fair Value and
Long-Term Debt - Fair Value and Carrying Value of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less current portion of long term-debt and commercial paper | $ 840,571 | $ 624,503 |
Long-term debt, less current portion | $ 2,826,404 | |
1.750% Senior Notes, payable June 12, 2027; interest payable annually | ||
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, payable February 1, 2023; interest payable semi-annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate (as a percent) | 3.85% | |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases and other | $ 52,050 | 53,163 |
Unamortized debt issuance costs | (7,270) | (8,617) |
Total debt | 2,697,775 | 2,413,617 |
Less current portion of long term-debt and commercial paper | 840,571 | 624,503 |
Long-term debt, less current portion | 1,857,204 | 1,789,114 |
Fair Value | 1.750% Senior Notes, payable June 12, 2027; interest payable annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 482,139 | 601,037 |
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 | 431,605 | 538,545 |
Fair Value | 3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 615,630 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases and other | 52,050 | 53,163 |
Unamortized debt issuance costs | (7,270) | (8,617) |
Total debt | 2,819,134 | 2,324,785 |
Less current portion of long term-debt and commercial paper | 840,571 | 624,503 |
Long-term debt, less current portion | 1,978,563 | 1,700,282 |
Carrying Value | 1.750% Senior Notes, payable June 12, 2027; interest payable annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 535,103 | 566,380 |
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, payable February 1, 2023; interest payable semi-annually | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 600,000 |
United States | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 785,998 | 598,000 |
Term loan facility | 675,000 | 0 |
United States | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 785,998 | 598,000 |
Term loan facility | 675,000 | 0 |
Europe | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 42,808 | 15,859 |
Term loan facility | 235,445 | 0 |
Europe | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial paper | 42,808 | 15,859 |
Term loan facility | $ 235,445 | $ 0 |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities Of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 840,571 |
2024 | 920,725 |
2025 | 9,012 |
2026 | 6,990 |
2027 | 539,284 |
Thereafter | 509,822 |
Long-term debt, less current portion | $ 2,826,404 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Schedule of Components of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Outstanding checks in excess of cash | $ 2,791 | $ 3,005 |
Accounts payable, trade | 1,094,038 | 1,228,621 |
Accrued expenses | 742,099 | 666,209 |
Product warranties | 38,425 | 45,215 |
Accrued interest | 8,748 | 17,940 |
Accrued compensation and benefits | 238,347 | 256,428 |
Total accounts payable and accrued expenses | $ 2,124,448 | $ 2,217,418 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating lease costs | |||
Fixed | $ 132,037 | $ 124,781 | $ 127,571 |
Short-term | 36,159 | 31,849 | 27,654 |
Variable | 43,674 | 38,076 | 38,321 |
Sub-leases | (2,343) | (1,642) | (1,152) |
Operating lease costs | 209,527 | 193,064 | 192,394 |
Finance lease costs | |||
Amortization of leased assets | 11,108 | 9,193 | 6,423 |
Interest on lease liabilities | 816 | 772 | 690 |
Finance lease costs | 11,924 | 9,965 | 7,113 |
Net lease costs | 221,451 | 203,029 | 199,507 |
Cost of Sales | |||
Operating lease costs | |||
Fixed | 21,321 | 20,130 | 25,067 |
Short-term | 17,005 | 13,415 | 11,633 |
Variable | 7,689 | 7,949 | 8,285 |
Sub-leases | (691) | (529) | (411) |
Operating lease costs | 45,324 | 40,965 | 44,574 |
Selling, general and administrative expenses | |||
Operating lease costs | |||
Fixed | 110,716 | 104,651 | 102,504 |
Short-term | 19,154 | 18,434 | 16,021 |
Variable | 35,985 | 30,127 | 30,036 |
Sub-leases | (1,652) | (1,113) | (741) |
Operating lease costs | 164,203 | 152,099 | 147,820 |
Depreciation and Amortization | |||
Finance lease costs | |||
Amortization of leased assets | 11,108 | 9,193 | 6,423 |
Interest on lease liabilities | 0 | 0 | 0 |
Finance lease costs | 11,108 | 9,193 | 6,423 |
Interest | |||
Finance lease costs | |||
Amortization of leased assets | 0 | 0 | 0 |
Interest on lease liabilities | 816 | 772 | 690 |
Finance lease costs | $ 816 | $ 772 | $ 690 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
ROU operating lease assets | $ 387,816 | $ 389,967 |
Finance Leases | ||
Property, plant and equipment, gross | 82,653 | 67,984 |
Accumulated depreciation | (30,218) | (19,902) |
Property, plant and equipment, net | 52,435 | 48,082 |
Total lease assets | $ 440,251 | $ 438,049 |
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 | $ 105,266 | $ 104,434 |
Non-current | 296,136 | 297,390 |
Total operating liabilities | 401,402 | 401,824 |
Finance Leases | ||
Short-term debt | 11,765 | 9,560 |
Long-term debt | 40,285 | 38,390 |
Total finance liabilities | 52,050 | 47,950 |
Total lease liabilities | $ 453,452 | $ 449,774 |
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 - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finance Leases | ||
2023 | $ 12,574 | |
2024 | 10,939 | |
2025 | 9,498 | |
2026 | 7,344 | |
2027 | 4,433 | |
Thereafter | 10,509 | |
Total lease payments | 55,297 | |
Less imputed interest | 3,247 | |
Present value, Total | 52,050 | $ 47,950 |
Operating Leases | ||
2023 | 125,068 | |
2024 | 103,229 | |
2025 | 82,839 | |
2026 | 61,815 | |
2027 | 34,829 | |
Thereafter | 27,414 | |
Total lease payments | 435,194 | |
Less imputed interest | 33,792 | |
Present value, Total | 401,402 | $ 401,824 |
Total | ||
2023 | 137,642 | |
2024 | 114,168 | |
2025 | 92,337 | |
2026 | 69,159 | |
2027 | 39,262 | |
Thereafter | 37,923 | |
Total lease payments | $ 490,491 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Amount of leases not yet commenced | $ 6,516 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average Remaining Lease Term | ||
Operating Leases | 4 years 6 months | 4 years 8 months 12 days |
Finance Leases | 6 years 2 months 12 days | 7 years 2 months 12 days |
Weighted Average Discount Rate | ||
Operating Leases | 3.80% | 2.40% |
Finance Leases | 1.50% | 1.30% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 129,895 | $ 122,886 | $ 124,708 |
Operating cash flows from finance leases | 816 | 772 | 690 |
Financing cash flows from finance leases | 10,770 | 9,289 | 6,386 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | 119,115 | 186,605 | 110,036 |
Finance leases | 16,160 | 13,395 | 18,248 |
Amortization of right of use operating lease assets | $ 120,666 | $ 115,650 | $ 113,898 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 19, 2017 | May 09, 2012 | |
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation costs | $ 22,409 | $ 25,651 | $ 19,697 | ||
Recognized stock-based compensation costs, net of tax | 16,582 | $ 18,982 | $ 14,576 | ||
Pre-tax unrecognized compensation expense | $ 19,321 | ||||
Recognized expense over a weighted-average period, years | 1 year 5 months 12 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) | 2,000 | 3,000 | 2,000 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
RSUs outstanding, beginning balance (in shares) | 439 | 375 | 362 |
Granted (in shares) | 192 | 194 | 192 |
Released (in shares) | (134) | (105) | (146) |
Forfeited (in shares) | (43) | (25) | (33) |
RSUs outstanding, ending balance (in shares) | 454 | 439 | 375 |
Expected to vest as of December 31, 2021 (in shares) | 437 | 418 | 361 |
Weighted average grant date fair value | |||
RSUs outstanding, beginning balance (usd per share) | $ 128.62 | ||
Granted (usd per share) | 137.30 | ||
Released (usd per share) | 143.41 | ||
Forfeited (usd per share) | 140.66 | ||
RSUs outstanding, ending balance (usd per share) | $ 126.79 | $ 128.62 | |
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 | ||
Expected to vest, weighted average remaining contractual term (years) | 1 year | ||
Ending balance, aggregate intrinsic value | $ 46,378 | ||
Expected to vest, aggregate intrinsic value | $ 44,668 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
RSUs outstanding, beginning balance (in shares) | 439 | 375 | 362 |
Granted (in shares) | 192 | 194 | 192 |
Released (in shares) | (134) | (105) | (146) |
Forfeited (in shares) | (43) | (25) | (33) |
RSUs outstanding, ending balance (in shares) | 454 | 439 | 375 |
Expected to vest at end of year (in shares) | 437 | 418 | 361 |
Other Expense (Income) - Summar
Other Expense (Income) - Summary of Other Expense (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Foreign currency losses (gains), net | $ 15,429 | $ 6,298 | $ 7,815 |
Release of indemnification asset | 7,324 | 0 | 0 |
Impairment of joint venture in Brazil | 0 | 0 | 3,599 |
Resolution of foreign non-income tax contingencies | 0 | (6,211) | 0 |
All other, net | (14,367) | (12,321) | (12,165) |
Total other expense (income), net | $ 8,386 | $ (12,234) | $ (751) |
Income Taxes - Schedule of Earn
Income Taxes - Schedule of Earnings (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (233,208) | $ 380,632 | $ 94,829 |
Foreign | 417,101 | 909,361 | 489,545 |
Earnings before income taxes | $ 183,893 | $ 1,289,993 | $ 584,374 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income taxes: | |||
U.S. federal | $ 91,948 | $ 93,085 | $ (33,821) |
State and local | 11,230 | 24,904 | 7,794 |
Foreign | 106,032 | 143,385 | 72,350 |
Total current | 209,210 | 261,374 | 46,323 |
Deferred income taxes: | |||
U.S. federal | (27,756) | (2,655) | 14,533 |
State and local | 9,586 | 13,306 | 112 |
Foreign | (32,930) | (15,580) | 7,679 |
Total deferred | (51,100) | (4,929) | 22,324 |
Total income tax expense | $ 158,110 | $ 256,445 | $ 68,647 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 72 Months Ended | |||||
Nov. 23, 2022 EUR (€) | Apr. 30, 2022 EUR (€) | Jun. 30, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2010 EUR (€) | |
Income Taxes [Line Items] | ||||||||
Valuation allowance against deferred tax asset | $ 284,347 | $ 236,357 | ||||||
Increase (decrease) in the valuation allowance | 47,990 | (31,481) | ||||||
Net operating loss carryforwards and tax credit | 448,759 | 408,434 | ||||||
Net operating loss carryforwards in the U.S. | 6,753 | |||||||
Net operating loss carryforwards in various foreign jurisdictions | 1,565,514 | |||||||
Gross unrecognized tax benefits | 1,230,632 | 1,296,523 | $ 1,388,391 | |||||
Unrecognized tax benefits that would impact effective tax rate | 47,881 | |||||||
Interest and penalties | 14,801 | 14,494 | ||||||
Accrued/(reversed) interest and penalties | 437 | $ 3,236 | $ (695) | |||||
Expected decrease in unrecognized tax benefits within next twelve months | 9,152 | |||||||
Luxembourg | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards in various foreign jurisdictions | $ 1,169,896 | |||||||
Domestic tax authority | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate (as a percent) | (36.50%) | 33.80% | (12.00%) | |||||
Foreign tax authority | ||||||||
Income Taxes [Line Items] | ||||||||
Effective income tax rate (as a percent) | 17.50% | 14.10% | 16.30% | |||||
Foreign tax authority | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 3,000 | |||||||
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 | € | € 371,696 | € 371,696 | ||||||
Foreign tax authority | Tax Year 2018 | Belgium | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign tax assessment | € | € 186,734 | |||||||
State | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards and tax credit | $ 46,388 | |||||||
State deferred tax assets | ||||||||
Income Taxes [Line Items] | ||||||||
Valuation allowance against deferred tax asset | 31,760 | |||||||
Operating Loss Carryforward, Domestic | ||||||||
Income Taxes [Line Items] | ||||||||
Valuation allowance against deferred tax asset | 6,242 | |||||||
Operating Loss Carryforward, Foreign Jurisdiction | ||||||||
Income Taxes [Line Items] | ||||||||
Valuation allowance against deferred tax asset | $ 246,345 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $ 38,618 | $ 270,898 | $ 122,719 |
State and local income taxes, net of federal income tax benefit | 4,858 | 25,658 | 8,081 |
Foreign income taxes | (50,483) | (34,981) | (57,898) |
Change in valuation allowance | 44,814 | 5,947 | 35,381 |
Impairment of non-deductible goodwill | 132,497 | 0 | 0 |
Loss on previously taxed earnings | 0 | 0 | (10,346) |
Carryback rate differential | 0 | (15,743) | (33,739) |
Fixed asset adjustments | (7,289) | (7,113) | (8,630) |
Non-deductible expenses | 11,250 | 8,128 | 8,424 |
General business credits and incentives | (21,833) | (3,958) | (4,004) |
Global intangible low-taxed income | 7,200 | 34,400 | 2,500 |
Italy step-up adjustment | 0 | (22,163) | 0 |
Tax contingencies and audit settlements, net | (96) | 12,505 | 6,779 |
Other, net | (1,426) | (17,133) | (620) |
Total income tax expense | $ 158,110 | $ 256,445 | $ 68,647 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets And Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accounts receivable | $ 15,783 | $ 16,550 |
Inventories | 53,088 | 38,388 |
Employee benefits | 47,089 | 54,865 |
Accrued expenses and other | 95,682 | 73,983 |
Deductible state tax and interest benefit | 7,584 | 7,206 |
Intangibles | 122,710 | 135,777 |
Lease liabilities | 108,596 | 106,753 |
Interest expense | 10,749 | 0 |
Federal, foreign and state net operating losses and credits | 448,759 | 408,434 |
Gross deferred tax assets | 910,040 | 841,956 |
Valuation allowance | (284,347) | (236,357) |
Net deferred tax assets | 625,693 | 605,599 |
Deferred tax liabilities: | ||
Inventories | (17,415) | (23,484) |
Plant and equipment | (463,810) | (467,451) |
Intangibles | (175,788) | (188,417) |
Right of use operating lease assets | (102,959) | (101,935) |
Prepaids | (47,079) | (45,077) |
Other liabilities | (58,799) | (67,914) |
Gross deferred tax liabilities | (865,850) | (894,278) |
Net deferred tax liability | $ (240,157) | $ (288,679) |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance as of January 1 | $ 1,296,523 | $ 1,388,391 |
Additions based on tax positions related to the current year | 1,439 | 458 |
Additions for tax positions of prior years | 4,678 | 18,001 |
Reductions resulting from the lapse of the statute of limitations | (3,419) | (3,336) |
Effects of foreign currency translation | (68,589) | (106,991) |
Balance as of December 31 | $ 1,230,632 | $ 1,296,523 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 10 Months Ended | 12 Months Ended | 13 Months Ended | ||||||
Dec. 13, 2022 USD ($) | May 19, 2022 complaint | Jan. 28, 2022 complaint | Oct. 05, 2021 complaint | Apr. 23, 2021 complaint | Apr. 26, 2022 complaint | Dec. 31, 2022 USD ($) | May 11, 2022 complaint | Dec. 31, 2021 USD ($) | |
Commitments And Contingencies [Line Items] | |||||||||
Settlement amount | $ | $ 60,000 | ||||||||
Pending Litigation | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Number of class action lawsuits (in lawsuits) | 3 | ||||||||
Georgia State Court Investor Actions | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Number of complaints (in complaints) | 4 | 5 | |||||||
Georgia State Court Investor Actions | Pending Litigation | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Number of complaints (in complaints) | 4 | 4 | |||||||
Georgia State Court Investor Actions | Partially Granted And Denied Litigation | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Number of complaints (in 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 | $ | $ 19,614 | $ 1,432 | |||||||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net cash paid during the years for: | |||
Interest | $ 75,199 | $ 75,514 | $ 44,584 |
Income taxes | 248,693 | 323,718 | 106,891 |
Supplemental schedule of non-cash investing and financing activities: | |||
Unpaid property plant and equipment in accounts payable and accrued expenses | 118,701 | 117,084 | 90,767 |
Fair value of net assets acquired in acquisition | 243,934 | 176,924 | 0 |
Liabilities assumed in acquisition | (34,332) | (52,955) | 0 |
Noncash investing and financing activities, total | $ 209,602 | $ 123,969 | $ 0 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reporting segments (in segments) | segment | 3 | ||
Assets | $ 14,120,432 | $ 14,224,517 | $ 14,327,751 |
Net sales | 11,737,065 | 11,200,613 | 9,552,197 |
Long-lived assets | 5,048,994 | 5,026,832 | 4,914,366 |
Operating income (loss) | 244,217 | 1,335,011 | 636,002 |
Depreciation and amortization | 595,464 | 591,711 | 607,507 |
Capital expenditures (excluding acquisitions) | 580,742 | 676,120 | 425,557 |
Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,320,423 | 3,938,654 | 3,457,203 |
Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,235,815 | 4,294,042 | 3,735,888 |
Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,964,486 | 1,852,766 | 1,538,967 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,216,341 | 1,115,151 | 820,139 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,490,079 | 6,181,628 | 5,530,407 |
Long-lived assets | 2,317,409 | 2,309,575 | 2,230,971 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,152,051 | 3,117,892 | 2,486,770 |
Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 549,597 | 450,010 | 385,830 |
Belgium | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 961,086 | 976,311 | 983,627 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,545,338 | 1,451,083 | 1,149,190 |
Long-lived assets | 1,770,499 | 1,740,946 | 1,699,768 |
Operating segments | Global Ceramic | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,841,310 | 5,160,776 | 5,250,069 |
Net sales | 4,307,681 | 3,917,319 | 3,432,756 |
Operating income (loss) | (236,066) | 403,135 | 167,731 |
Depreciation and amortization | 198,866 | 210,634 | 215,488 |
Capital expenditures (excluding acquisitions) | 154,266 | 167,224 | 121,418 |
Operating segments | Global Ceramic | Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,282,887 | 3,903,597 | 3,425,672 |
Operating segments | Global Ceramic | Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 24,794 | 13,722 | 7,084 |
Operating segments | Global Ceramic | Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Global Ceramic | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Global Ceramic | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 875,414 | 849,247 | 699,715 |
Operating segments | Global Ceramic | Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 374,539 | 299,621 | 262,846 |
Operating segments | Flooring NA | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,299,360 | 4,125,960 | 3,594,976 |
Net sales | 4,207,041 | 4,116,405 | 3,594,075 |
Operating income (loss) | 231,076 | 407,577 | 147,442 |
Depreciation and amortization | 231,279 | 211,872 | 214,599 |
Capital expenditures (excluding acquisitions) | 231,068 | 327,691 | 186,179 |
Operating segments | Flooring NA | Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 37,536 | 35,057 | 31,531 |
Operating segments | Flooring NA | Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,296,152 | 3,287,533 | 2,871,050 |
Operating segments | Flooring NA | Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 873,353 | 793,815 | 691,494 |
Operating segments | Flooring NA | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Flooring NA | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,322 | 2,731 | 1,506 |
Operating segments | Flooring NA | Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 23 | 94 | 50 |
Operating segments | Flooring ROW | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,275,519 | 4,361,741 | 4,194,447 |
Net sales | 3,222,343 | 3,166,889 | 2,525,366 |
Operating income (loss) | 340,167 | 571,126 | 366,934 |
Depreciation and amortization | 156,041 | 156,700 | 164,701 |
Capital expenditures (excluding acquisitions) | 178,313 | 164,318 | 113,378 |
Operating segments | Flooring ROW | Ceramic & Stone | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating segments | Flooring ROW | Carpet & Resilient | |||
Segment Reporting Information [Line Items] | |||
Net sales | 914,869 | 992,787 | 857,754 |
Operating segments | Flooring ROW | Laminate & Wood | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,091,133 | 1,058,951 | 847,473 |
Operating segments | Flooring ROW | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,216,341 | 1,115,151 | 820,139 |
Operating segments | Flooring ROW | Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,270,315 | 2,265,914 | 1,785,549 |
Operating segments | Flooring ROW | Russia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 175,035 | 150,295 | 122,934 |
Corporate and intersegment eliminations | |||
Segment Reporting Information [Line Items] | |||
Assets | 704,243 | 576,040 | 1,288,259 |
Operating income (loss) | (90,960) | (46,827) | (46,105) |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 9,278 | 12,505 | 12,719 |
Capital expenditures (excluding acquisitions) | $ 17,095 | $ 16,887 | $ 4,582 |