10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[Mark One]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2022

OR 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to      

Commission File Number 01-13697

 __________________________________________

MOHAWK INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware			52-1604305
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
160 S. Industrial Blvd.	Calhoun	Georgia	30701
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (706) 629-7721

Former name, former address and former fiscal year, if changed since last report:

__________________________________________ 

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $.01 par value	MHK	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  x

The number of shares outstanding of the issuer’s common stock as of April 27, 2022, the latest practicable date, is as follows: 63,539,428 shares of common stock, $.01 par value.

MOHAWK INDUSTRIES, INC.

INDEX

		Page No
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of April 2, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations for the three months ended April 2, 2022 and April 3, 2021	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended April 2, 2022 and April 3, 2021	5
	Condensed Consolidated Statements of Cash Flows for the three months ended April 2, 2022 and April 3, 2021	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) 

	April 2, 2022		December 31, 2021
	(In thousands, except per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	230,559	268,895
Short-term investments	310,000		323,000
Receivables, net	2,044,698		1,839,985
Inventories	2,513,244		2,391,672
Prepaid expenses	447,358		394,649
Other current assets	18,880		20,156
Total current assets	5,564,739		5,238,357
Property, plant and equipment	9,240,329		9,250,587
Less: accumulated depreciation	4,687,717		4,613,722
Property, plant and equipment, net	4,552,612		4,636,865
Right of use operating lease assets	384,740		389,967
Goodwill	2,579,385		2,607,909
Tradenames	687,734		694,905
Other intangible assets subject to amortization, net	195,793		205,075
Deferred income taxes and other non-current assets	421,716		451,439
Total assets	$	14,386,719	14,224,517

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	1,546,463	624,503
Accounts payable and accrued expenses	2,220,347		2,217,418
Current operating lease liabilities	104,823		104,434
Total current liabilities	3,871,633		2,946,355
Deferred income taxes	498,273		495,521
Long-term debt, less current portion	1,088,401		1,700,282
Non-current operating lease liabilities	293,239		297,390
Other long-term liabilities	347,570		356,753
Total liabilities	6,099,116		5,796,301
Commitments and contingencies (Note 17)
Stockholders’ equity:
Preferred stock, $.01 par value; 60 shares authorized; no shares issued	—		—
Common stock, $.01 par value; 150,000 shares authorized; 70,880 and 72,952 shares issued and outstanding in 2022 and 2021, respectively	709		729
Additional paid-in capital	1,913,518		1,911,131
Retained earnings	7,630,837		7,692,064
Accumulated other comprehensive loss	(1,048,599)		(966,952)
	8,496,465		8,636,972
Less: treasury stock at cost; 7,341 and 7,343 shares in 2022 and 2021, respectively	215,495		215,547
Total Mohawk Industries, Inc. stockholders’ equity	8,280,970		8,421,425
Nonredeemable noncontrolling interests	6,633		6,791
Total stockholders’ equity	8,287,603		8,428,216
Total liabilities and stockholders’ equity	$	14,386,719	14,224,517

See accompanying notes to condensed consolidated financial statements

3

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021
	(In thousands, except per share data)
Net sales	$	3,015,663	2,669,026
Cost of sales	2,213,535		1,877,257
Gross profit	802,128		791,769
Selling, general and administrative expenses	481,327		474,254
Operating income	320,801		317,515
Interest expense	11,481		15,241
Other expense (income) net	2,438		(2,227)
Earnings before income taxes	306,882		304,501
Income tax expense	61,448		67,690
Net earnings including noncontrolling interests	245,434		236,811
Net earnings attributable to noncontrolling interests	105		4
Net earnings attributable to Mohawk Industries, Inc.	$	245,329	236,807
Basic earnings per share attributable to Mohawk Industries, Inc.
Basic earnings per share attributable to Mohawk Industries, Inc.	$	3.79	3.37
Weighted-average common shares outstanding—basic	64,686		70,179
Diluted earnings per share attributable to Mohawk Industries, Inc.
Diluted earnings per share attributable to Mohawk Industries, Inc.	$	3.78	3.36
Weighted-average common shares outstanding—diluted	64,970		70,474

See accompanying notes to condensed consolidated financial statements.

4

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021
	(In thousands)
Net earnings including noncontrolling interests	$	245,434	236,811
Other comprehensive income (loss):
Foreign currency translation adjustments	(82,447)		(160,654)
Prior pension and post-retirement benefit service cost and actuarial gain, net of tax	537		97
Other comprehensive loss	(81,910)		(160,557)
Comprehensive income	163,524		76,254
Comprehensive loss attributable to noncontrolling interests	(158)		(244)
Comprehensive income attributable to Mohawk Industries, Inc.	$	163,682	76,498

See accompanying notes to condensed consolidated financial statements.

5

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) 

	Three Months Ended
	April 2, 2022		April 3, 2021
	(In thousands)
Cash flows from operating activities:
Net earnings including noncontrolling interests	$	245,434	236,811
Adjustments to reconcile net earnings to net cash provided by operating activities:
Restructuring	898		4,256
Depreciation and amortization	141,415		151,216
Deferred income taxes	13,989		3,740
(Gain) loss on disposal of property, plant and equipment	(365)		2,522
Stock-based compensation expense	5,655		5,968
Changes in operating assets and liabilities, net of effects of acquisitions:
Receivables, net	(225,922)		(138,764)
Inventories	(141,344)		(109,550)
Accounts payable and accrued expenses	39,908		122,748
Other assets and prepaid expenses	(23,259)		(34,432)
Other liabilities	(1,455)		15,090
Net cash provided by operating activities	54,954		259,605
Cash flows from investing activities:
Additions to property, plant and equipment	(129,470)		(114,735)
Acquisitions, net of cash acquired	951		(6,338)
Purchases of short-term investments	(933,000)		(698,698)
Redemption of short-term investments	946,000		486,489
Net cash used in investing activities	(115,519)		(333,282)
Cash flows from financing activities:
Payments on commercial paper	(2,667,668)		(32,633)
Proceeds from commercial paper	2,990,240		35,600
Net (payments) proceeds of other financing activities	(6,516)		852
Purchase of Mohawk common stock	(306,577)		(122,876)
Change in outstanding checks in excess of cash	(522)		(1,126)
Net cash provided by (used in) financing activities	8,957		(120,183)
Effect of exchange rate changes on cash and cash equivalents	13,272		(17,503)
Net change in cash and cash equivalents	(38,336)		(211,363)
Cash and cash equivalents, beginning of period	268,895		768,625
Cash and cash equivalents, end of period	$	230,559	557,262

See accompanying notes to condensed consolidated financial statements.

6

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except per share amounts)

(Unaudited)

1. General

Unless this Form 10-Q indicates otherwise or the context otherwise requires, the terms “we,” “our,” “us,” “Mohawk,” or “the Company” as used in this Form 10-Q refer to Mohawk Industries, Inc.

Interim Reporting

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto, and the Company’s description of critical accounting policies, included in the Company’s 2021 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Results for interim periods are not necessarily indicative of the results for the year.

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. In periods when the Company uses foreign currency denominated debt to hedge its non-U.S. net investments, 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. 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 or (loss). 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 three months ended April 3, 2021, the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $27,047 ($20,694 net of taxes).

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes which simplified the accounting for income taxes in several areas by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes. The Company adopted the new standard on January 1, 2021. The effect of adopting the new standard was not material.

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

2. Acquisitions

2021 Acquisitions

During 2021, the Company made acquisitions in the Flooring Rest of the World (“Flooring ROW”) Segment totaling $123,018, including the acquisition of an insulation manufacturer, on September 7, 2021 for $66,334 and the acquisition of an MDF production plant on November 2, 2021 for $46,348. The Company’s acquisition resulted in a goodwill allocation of $54,527 and an intangible asset subject to amortization of $19,910. The goodwill is not expected to be deductible for tax purposes. The remaining acquisitions resulted in goodwill of $1,672 and intangible assets subject to amortization of $5,596.

3. 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 consolidating balance sheets. The Company had contract liabilities of $74,165 and $65,744 as of April 2, 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 three months ended April 2, 2022 and April 3, 2021 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 $49,042 and $49,644 as of April 2, 2022 and December 31, 2021, respectively. Straight-line amortization expense recognized during the three months ended April 2, 2022 and April 3, 2021 related to these capitalized costs were $12,340 and $15,581, respectively.

8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Revenue Disaggregation

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the three months ended April 2, 2022 and April 3, 2021:

April 2, 2022	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Geographical Markets
United States	$	585,231	1,035,880	2,786	1,623,897
Europe	245,236		2,132	637,363	884,731
Russia	66,518		23	39,736	106,277
Other	167,772		33,875	199,111	400,758
	$	1,064,757	1,071,910	878,996	3,015,663
Product Categories
Ceramic & Stone	$	1,059,711	8,988	—	1,068,699
Carpet & Resilient	5,046		843,082	244,128	1,092,256
Laminate & Wood	—		219,840	297,137	516,977
Other(1)	—		—	337,731	337,731
	$	1,064,757	1,071,910	878,996	3,015,663

April 3, 2021	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Geographical Markets
United States	$	534,547	936,098	2,419	1,473,064
Europe	207,500		330	558,138	765,968
Russia	62,018		30	27,657	89,705
Other	125,806		32,792	181,691	340,289
	$	929,871	969,250	769,905	2,669,026
Product Categories
Ceramic & Stone	$	927,459	8,322	—	935,781
Carpet & Resilient	2,412		772,079	247,724	1,022,215
Laminate & Wood	—		188,849	253,213	442,062
Other(1)	—		—	268,968	268,968
	$	929,871	969,250	769,905	2,669,026

(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. 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 transaction and integration-related costs consisted of the following during the three months ended April 2, 2022 and April 3, 2021:

	Three Months Ended
	April 2 2022		April 3 2021
Cost of sales
Restructuring costs	$	898	10,165
Acquisition integration-related costs	40		17
Restructuring and acquisition integration-related costs	$	938	10,182
Selling, general and administrative expenses
Restructuring costs	$	—	(90)
Acquisition transaction-related costs	696		849
Acquisition integration-related costs	284		243
Restructuring, acquisition transaction and integration-related costs	$	980	1,002

10

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The restructuring activity for the three months ended April 2, 2022 is as follows:

	Severance		Other restructuring costs	Total
Balances as of December 31, 2021	$	1,634	995	2,629
Restructuring costs
Flooring NA Segment	—		105	105
Flooring ROW Segment	—		793	793
Total restructuring costs	—		898	898
Cash payments	(875)		(970)	(1,845)
Non-cash items	(15)		(904)	(919)
Balances as of April 2, 2022	$	744	19	763
Restructuring costs recorded in:
Cost of sales	$	—	898	898
Total restructuring costs	$	—	898	898

The Company expects the remaining severance and other restructuring costs to be paid over the next 12 months.

5. 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 April 2, 2022 and December 31, 2021:

	Fair Value
	April 2, 2022		December 31, 2021
Short-term investments:
Commercial paper (Level 2)	$	310,000	323,000

The fair values and carrying values of the Company’s debt are disclosed in Note 18 - Debt.

6. Receivables, net

Receivables, net are as follows:

	At April 2, 2022		At December 31, 2021
Customers, trade	$	1,947,020	1,721,584
Income tax receivable	59,365		73,727
Other	111,527		117,823
	2,117,912		1,913,134
Less: allowance for discounts, claims and doubtful accounts	73,214		73,149
Receivables, net	$	2,044,698	1,839,985

11

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Inventories

The components of inventories are as follows:

	At April 2, 2022		At December 31, 2021
Finished goods	$	1,738,910	1,677,707
Work in process	164,442		144,004
Raw materials	609,892		569,961
Total inventories	$	2,513,244	2,391,672

8. Goodwill and Intangible Assets

The components of goodwill and other intangible assets are as follows:

Goodwill:

	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Balance as of December 31, 2021
Goodwill	$	1,563,267	874,198	1,497,869	3,935,334
Accumulated impairment losses	(531,930)		(343,054)	(452,441)	(1,327,425)
	1,031,337		531,144	1,045,428	2,607,909
Goodwill adjustments related to acquisitions	—		—	(731)	(731)
Currency translation during the period	(6,765)		—	(21,028)	(27,793)
Balance as of April 2, 2022
Goodwill	1,556,502		874,198	1,476,110	3,906,810
Accumulated impairment losses	(531,930)		(343,054)	(452,441)	(1,327,425)
Balance as of April 2, 2022, net	$	1,024,572	531,144	1,023,669	2,579,385

12

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Intangible assets not subject to amortization:

	Tradenames
Balance as of December 31, 2021	$	694,905
Currency translation during the period	(7,171)
Balance as of April 2, 2022	$	687,734

Intangible assets subject to amortization:

Gross carrying amounts:	Customer relationships		Patents	Other	Total
Balance as of December 31, 2021	$	680,177	256,336	6,786	943,299
Adjustments related to acquisitions	(36)		—	—	(36)
Currency translation during the period	(8,985)		(6,378)	(143)	(15,506)
Balance as of April 2, 2022	$	671,156	249,958	6,643	927,757
Accumulated amortization:	Customer relationships		Patents	Other	Total
Balance as of December 31, 2021	$	483,748	252,414	2,062	738,224
Amortization during the period	6,961		165	47	7,173
Currency translation during the period	(7,135)		(6,282)	(16)	(13,433)
Balance as of April 2, 2022	$	483,574	246,297	2,093	731,964
Intangible assets subject to amortization, net as of April 2, 2022	$	187,582	3,661	4,550	195,793

	Three Months Ended
	April 2, 2022		April 3, 2021
Amortization expense	$	7,173	7,498

9. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses are as follows:

	At April 2, 2022		At December 31, 2021
Outstanding checks in excess of cash	$	2,483	3,005
Accounts payable, trade	1,296,066		1,228,621
Accrued expenses	644,161		666,209
Product warranties	41,693		45,215
Accrued interest	19,143		17,940
Accrued compensation and benefits	216,801		256,428
Total accounts payable and accrued expenses	$	2,220,347	2,217,418

13

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

10. Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 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, 2021	$	(959,199)	(7,753)	(966,952)
Current period other comprehensive income (loss)	(82,184)		537	(81,647)
Balance as of April 2, 2022	$	(1,041,383)	(7,216)	(1,048,599)

11. 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 the provisions of ASC 718-10. Compensation expense is recognized on a straight-line basis over the awards’ estimated lives for fixed awards with ratable vesting provisions.

The Company granted 189 restricted stock units (“RSUs”) at a weighted average grant-date fair value of $137.99 per unit for the three months ended April 2, 2022. The Company granted 173 RSUs at a weighted average grant-date fair value of $175.12 per unit for the three months ended April 3, 2021. The Company recognized stock-based compensation costs related to the issuance of RSUs of $5,655 ($4,184 net of taxes) and $5,968 ($4,416 net of taxes) for the three months ended April 2, 2022 and April 3, 2021, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $35,901 as of April 2, 2022, and will be recognized as expense over a weighted-average period of approximately 2.15 years.

12. Other Expense (Income), net

Other expense (income), net is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Foreign currency losses (gains), net	$	736	(1,186)
Release of indemnification asset	7,212		—
All other, net	(5,510)		(1,041)
Total other expense (income), net	$	2,438	(2,227)

13. Income Taxes

For the three months ended April 2, 2022, the Company recorded income tax expense of $61,448 on earnings before income taxes of $306,882 for an effective tax rate of 20.0%, as compared to an income tax expense of $67,690 on earnings before income taxes of $304,501, for an effective tax rate of 22.2% for the three months ended April 3, 2021. The difference in the effective tax rates for the comparative periods was impacted by the Company’s geographic dispersion of profits and losses for the respective periods, lower U.S. tax on foreign earnings, and an Italian benefit associated with a release of an uncertain tax liability in the first quarter of 2022.

14

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

14. Stockholders’ Equity

The following tables reflect the changes in stockholders’ equity for the three months ended April 2, 2022 and April 3, 2021 (in thousands).

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2021	72,952	$729	$1,911,131	$7,692,064	($966,952)	(7,343)	($215,547)	$6,791	$8,428,216
Shares issued under employee and director stock plans	105	1	(3,268)	—	—	2	52	—	(3,215)
Stock-based compensation expense	—	—	5,655	—	—	—	—	—	5,655
Repurchases of common stock	(2,177)	(21)	—	(306,556)	—	—	—	—	(306,577)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	105	105
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(263)	(263)
Currency translation adjustment	—	—	—	—	(82,184)	—	—	—	(82,184)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	537	—	—	—	537
Net earnings	—	—	—	245,329	—	—	—	—	245,329
April 2, 2022	70,880	$709	$1,913,518	$7,630,837	($1,048,599)	(7,341)	($215,495)	$6,633	$8,287,603

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2020	77,624	$776	$1,885,142	$7,559,191	($695,145)	(7,346)	($215,648)	$6,842	$8,541,158
Shares issued under employee and director stock plans	113	1	(1,570)	—	—	3	97	—	(1,472)
Stock-based compensation expense	—	—	5,968	—	—	—	—	—	5,968
Repurchases of common stock	(687)	(7)	—	(122,869)	—	—	—	—	(122,876)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	4	4
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(247)	(247)
Currency translation adjustment	—	—	—	—	(160,407)	—	—	—	(160,407)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	97	—	—	—	97
Net earnings	—	—	—	236,807	—	—	—	—	236,807
April 3, 2021	77,050	$770	$1,889,540	$7,673,129	($855,455)	(7,343)	($215,551)	$6,599	$8,499,032

15

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. Earnings Per Share

Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per common share assumes the exercise of outstanding stock options and the vesting of RSUs using the treasury stock method when the effects of such assumptions are dilutive. A reconciliation of net earnings attributable to Mohawk Industries, Inc. and weighted-average common shares outstanding for purposes of calculating basic and diluted earnings per share is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net earnings attributable to Mohawk Industries, Inc.	$	245,329	236,807
Weighted-average common shares outstanding-basic and diluted:
Weighted-average common shares outstanding—basic	64,686		70,179
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net	284		295
Weighted-average common shares outstanding-diluted	64,970		70,474
Earnings per share attributable to Mohawk Industries, Inc.
Basic	$	3.79	3.37
Diluted	$	3.78	3.36

16

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

16. Segment Reporting

The Company has three reporting segments: the Global Ceramic Segment, the Flooring North America (“Flooring NA”) Segment and the Flooring Rest of the World (“Flooring ROW”) Segment. The Global Ceramic Segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone, porcelain slabs, quartz countertops and other products, which it distributes primarily in North America, Europe, South America and Russia through its network of regional distribution centers and Company-operated service centers using Company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through Company-operated service centers, independent distributors, home center retailers, tile and flooring retailers and contractors. The Flooring NA Segment designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, laminate, resilient (includes sheet vinyl and luxury vinyl tile (“LVT”)) and wood flooring, which it distributes through its network of regional distribution centers and satellite warehouses using Company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through various selling channels, including independent floor covering retailers, distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial contractors and commercial end users. The Flooring ROW Segment designs, manufactures, sources, licenses and markets laminate, sheet vinyl, LVT, wood flooring, roofing panels, 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.

Segment information is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net sales:
Global Ceramic Segment	$	1,064,757	929,871
Flooring NA Segment	1,071,910		969,250
Flooring ROW Segment	878,996		769,905
Total	$	3,015,663	2,669,026
Operating income (loss):
Global Ceramic Segment	$	100,338	87,804
Flooring NA Segment	95,324		81,298
Flooring ROW Segment	134,650		159,306
Corporate and intersegment eliminations	(9,511)		(10,893)
Total	$	320,801	317,515

	At April 2, 2022		At December 31, 2021
Assets:
Global Ceramic Segment	$	5,240,214	5,160,776
Flooring NA Segment	4,220,757		4,125,960
Flooring ROW Segment	4,413,013		4,361,741
Corporate and intersegment eliminations	512,735		576,040
Total	$	14,386,719	14,224,517

17

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

17. Commitments and Contingencies

The Company is involved in various lawsuits, claims, investigations and other legal matters from time to time in the regular course of its business. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject.

Perfluorinated Compounds (“PFCs”) Litigation

In September 2016, the Water Works and Sewer Board of the City of Gadsden, Alabama (the “Gadsden Water Board”) filed an individual complaint in the Circuit Court of Etowah County, Alabama against certain manufacturers, suppliers, and users of chemicals containing specific PFCs, including the Company. In May 2017, the Water Works and Sewer Board of the Town of Centre, Alabama (the “Centre Water Board”) filed a similar complaint in the Circuit Court of Cherokee County, Alabama. The Gadsden Water Board and the Centre Water Board both seek monetary damages and injunctive relief claiming that their water supplies contain excessive amounts of PFCs. Certain defendants, including the Company, filed dispositive motions in each case arguing that the Alabama state courts lack personal jurisdiction over them. These motions were denied. In June and September 2018, certain defendants, including the Company, petitioned the Alabama Supreme Court for Writs of Mandamus directing each lower court to enter an order granting the defendants’ dispositive motions on personal jurisdiction grounds. The Alabama Supreme Court denied the petitions on December 20, 2019. Certain defendants, including the Company, filed an Application for Rehearing with the Alabama Supreme Court asking the court to reconsider its December 2019 decision. The Alabama Supreme Court denied the application for rehearing. On August 21, 2020, certain defendants, including the Company, petitioned the Supreme Court of the United States for review of the matter. On January 19, 2021, the Supreme Court denied the defendants’ petition for review.

In December 2019, the City of Rome, Georgia (“Rome”) filed a complaint in the Superior Court of Floyd County, Georgia that is similar to the Gadsden Water Board and Centre Water Board complaints, again seeking monetary damages and injunctive relief related to PFCs. Also in December 2019, Jarrod Johnson filed a putative class action in the Superior Court of Floyd County, Georgia purporting to represent all water subscribers with the Rome (Georgia) Water and Sewer Division and/or the Floyd County (Georgia) Water Department and seeking to recover, among other things, damages in the form of alleged increased rates and surcharges incurred by ratepayers for the costs associated with eliminating certain PFCs from their drinking water. In January 2020, defendant 3M Company removed the class action to federal court. The Company filed motions to dismiss in both of these cases. On December 17, 2020, the Superior Court of Floyd County denied the Company’s motion to dismiss in the Rome case. On September 20, 2021, the Northern District of Georgia denied the Company’s motion to dismiss in the class action.

The Company denies all liability in these matters and intends to defend them vigorously.

Putative Securities Class Action

On January 3, 2020, the Company and certain of its executive officers were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Northern District of Georgia (the “Securities Class Action”). The complaint alleges that defendants violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The complaint is filed on behalf of shareholders who purchased shares of the Company’s common stock between April 28, 2017 and July 25, 2019 (“Class Period”). On June 29, 2020, an amended complaint was filed in the Securities Class Action against Mohawk and its CEO Jeff Lorberbaum, based on the same claims and the same Class Period. The amended complaint alleges that the Company (1) engaged in fabricating revenues by attempting delivery to customers that were closed and recognizing these attempts as sales; (2) overproduced product to report higher operating margins and maintained significant inventory that was not salable; and (3) valued certain inventory improperly or improperly delivered inventory with knowledge that it was defective and customers would return it. On October 27, 2020, defendants filed a motion to dismiss the amended complaint. On September 29, 2021, the court issued an order granting in part and denying the defendants’ motion to dismiss the amended complaint. Defendants filed an answer to the amended complaint on November 12, 2021, and fact discovery is ongoing. On January 26, 2022, Lead Plaintiff moved for class certification, to appoint itself as class representative, and for appointment of class counsel. The Company intends to vigorously defend against the claims.

18

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Government Subpoenas

As previously disclosed, on June 25, 2020, the Company received subpoenas issued by the U.S. Attorney’s Office for the Northern District of Georgia (the “USAO”) and the U.S. Securities and Exchange Commission (the “SEC”) relating to matters similar to the allegations of wrongdoing raised by the Securities Class Action. The Company’s Audit Committee, with the assistance of outside legal counsel, conducted a thorough internal investigation into these allegations. The Audit Committee has completed the investigation and concluded that the allegations of wrongdoing are without merit. The USAO and SEC investigations are ongoing, and the Company is cooperating fully with those authorities. The Company will continue to vigorously defend against the allegations of wrongdoing in the Securities Class Action and does not believe they have merit.

Delaware State Court Action

The Company and certain of its present and former executive officers were named as defendants in a putative state securities class action lawsuit filed in the Superior Court of the State of Delaware on January 30, 2020. The complaint alleges that defendants violated Sections 11 and 12 of the Securities Act of 1933. The complaint is filed on behalf of shareholders who purchased shares of the Company’s common stock in Mohawk Industries Retirement Plan 1 and Mohawk Industries Retirement Plan 2 between April 27, 2017 and July 25, 2019. On March 27, 2020, the court granted a temporary stay of the litigation. The stay may be lifted at the close of fact discovery in the related Securities Class Action pending in the United States District Court for the Northern District of Georgia according to the terms set forth in the court’s order to stay litigation. The Company intends to vigorously defend against the claims.

Georgia State Court Investor Actions

The Company and certain of its present and former executive officers were named as defendants in certain investor actions, filed in the State Court of Fulton County of the State of Georgia on April 22, 2021 and April 23, 2021. Four complaints brought on behalf of purported former Mohawk stockholders each allege that defendants defrauded the respective plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action pending in the United States District Court for the Northern District of Georgia. The claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the investor actions seek compensatory and punitive damages. On June 28, 2021, defendants filed motions to dismiss each of the four complaints and answers to the same. On October 5, 2021, all four investor actions were transferred by the State Court of Fulton County to the Metro Atlanta Business Case Division, where fact discovery is ongoing. On January 28, 2022, the Court granted in part and denied in part the motions to dismiss, dismissing the Georgia Securities Act claims as to all defendants, and the negligent misrepresentation claim as to the Company. The Company intends to vigorously defend against the claims.

Separate Federal Actions

The Company and certain of its present and former executive officers were named as defendants in two additional non-class action lawsuits filed in the United States District Court for the Northern District of Georgia on June 22, 2021 and March 25, 2022, respectively. Each complaint is brought on behalf of a group of purported former Mohawk stockholders and alleges that defendants defrauded the plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The federal law claims alleged include violations of Sections 10(b) and 18 of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The state law claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the lawsuit seek compensatory and punitive damages and attorneys’ fees. On December 13, 2021, defendants filed motions to dismiss the June 22, 2021 complaint, which remain pending. The Company intends to vigorously defend against the claims.

19

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

Belgian Tax Matter

The Company has been in a dispute with the Belgian Tax Authority (the “BTA”) regarding the proper tax treatment of the royalty income arising from intellectual property (“IP”) owned by a Luxembourg subsidiary, Flooring Industries Limited Sarl (“FIL”). The BTA had assessed Unilin BV for the calendar years ending December 2005 through 2010 in an amount totaling €223,321 (including penalties but excluding interest), alleging that Unilin BV inappropriately transferred valuable IP to FIL and income associated with that IP should be taxed in Belgium. Unilin BV challenged all of these assessments and prevailed both in the Court of First Appeal in Bruges and in the Ghent Court of Appeal. In 2021, the BTA indicated it will not appeal these cases to the Supreme Court and has withdrawn all of the assessments for 2005 through 2010. Consequently, all of those tax years are now closed.

Having lost under its original theory, the BTA is in the process of initiating new assessments for later years against FIL rather than Unilin BV. The BTA now alleges that FIL had a taxable presence in Belgium and should be taxed on royalties received in respect of its IP. The BTA issued initial assessments in December 2020 and June 2021 that totaled €371,696 (including penalties but excluding interest) for calendar years ending December 2013 through 2018. However, in November and December of 2021, the BTA cancelled these assessments and in April 2022 issued new assessments that total €186,734 (including penalties but excluding interest) for those years using different calculations. The Company expects an additional assessment for 2019. Under the statute of limitations, the BTA may not assess FIL for any years prior to 2013, and the Company believes that FIL’s statute of limitations is closed for 2013 through 2016, although this will be a point of contention with the BTA. These assessments involve the same underlying facts at issue in the above referenced cases where Unilin BV prevailed at two different levels. Consequently, the Company believes that its tax position in Belgium was correct and will persist with its vigorous defense.

When the BTA issues tax assessments, Belgian tax law requires assurances that the taxes can be paid even while they are being disputed. Consequently, the BTA has placed liens on various properties of Unilin BV to support the original assessments discussed above. Since those assessments have been nullified by the courts, the accompanying liens have been withdrawn. Since FIL does not have property in Belgium, the BTA may require assurances from FIL to support the new assessments for 2013 through 2019. These assurances may take the form of a bond or bank guarantees.

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.

20

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company is subject to various federal, state, local and foreign environmental health and safety laws and regulations, including those governing air emissions, wastewater discharges, the use, storage, treatment, recycling and disposal of solid and hazardous materials and finished product, and the cleanup of contamination associated therewith. Because of the nature of the Company’s business, the Company has incurred, and will continue to incur, costs relating to compliance with such laws and regulations. The Company is involved in various proceedings relating to environmental matters and is currently engaged in environmental investigation, remediation and post-closure care programs at certain sites. The Company has provided accruals for such activities that it has determined to be both probable and reasonably estimable. The Company does not expect that the ultimate liability with respect to such activities will have a material adverse effect on its financial condition but acknowledges that it could have a material adverse effect on its results of operations, cash flows or liquidity in a given quarter or year.

21

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Debt

Senior Credit Facility

On October 18, 2019, the Company amended and restated its $1,800,000 senior credit facility, extending the maturity from March 26, 2022 to October 18, 2024 (as amended and restated, the “Senior Credit Facility”). The Senior Credit Facility marginally reduced the commitment fee and modified certain negative covenants to provide the Company with additional flexibility, including flexibility to make acquisitions and incur additional indebtedness. The restatement also renewed the Company’s option to extend the maturity of the Senior Credit Facility up to two times for an additional one-year period each.

At the Company’s election, revolving loans under the Senior Credit Facility bear interest at annual rates equal to either (a) LIBOR for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 1.00% and 1.75% (1.00% as of April 2, 2022), or (b) the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds rate plus 0.5%, or the Eurocurrency Rate (as defined in the Senior Credit Facility) rate plus 1.0%, plus an applicable margin ranging between 0.00% and 0.75% (0.00% as of April 2, 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 April 2, 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 further amended the Senior Credit Facility to replace LIBOR for euros with the EURIBOR benchmark rate.

The obligations of the Company and its subsidiaries in respect of the Senior Credit Facility are unsecured.

The Senior Credit Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, subsidiary indebtedness, fundamental changes, asset dispositions, dividends and other similar restricted payments, transactions with affiliates, future negative pledges, and changes in the nature of the Company’s business. The limitations contain customary exceptions or, in certain cases, do not apply as long as the Company is in compliance with the financial ratio requirements and is not otherwise in default. The Senior Credit Facility originally required the Company to maintain a Consolidated Interest Coverage Ratio of at least 3.00 to 1.00 and a Consolidated Net Leverage Ratio of no more than 3.75 to 1.00, each as of the last day of any fiscal quarter. However, on May 7, 2020 the Company amended the Senior Credit Facility to temporarily increase the minimum Consolidated Net Leverage Ratio to 4.75 to 1.00 and to increase the amount of certain adjustments to Net Income that are permitted to calculate the ratio. The relief provided by the amendment was in effect for the fiscal quarters ending on September 26, 2020 through (and including) the fiscal quarter ending December 31, 2021.

The Senior Credit Facility also contains customary representations and warranties and events of default, subject to customary grace periods.

In 2019, the Company paid financing costs of $2,264 in connection with the amendment and restatement of its Senior Credit Facility. These costs were deferred and, along with previously unamortized costs of $3,405 are being amortized over the term of the Senior Credit Facility.

As of April 2, 2022, amounts utilized under the Senior Credit Facility included zero borrowings and $19,790 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 $955,644 under the Senior Credit Facility resulting in a total of $844,356 available as of April 2, 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 all rank pari passu with all of the Company’s other unsecured and unsubordinated indebtedness. To the extent that the Company issues European commercial paper notes through a subsidiary of the Company, the notes will be fully and unconditionally guaranteed by the Company.

22

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company uses its Senior Credit Facility as a liquidity backstop for its commercial paper programs. Accordingly, the total amount outstanding under all of the Company’s commercial paper programs may not exceed $1,800,000 (less any amounts drawn on the Senior Credit Facility) at any time.

The proceeds from the issuance of commercial paper notes will be available for general corporate purposes. As of April 2, 2022, there were $911,000 outstanding under the U.S. commercial paper program, and the euro equivalent of $24,854 under the European program. The weighted-average interest rate and maturity period for the U.S. program were 0.96% and 30.0 days, respectively. The weighted-average interest rate and maturity period for the European program were (0.24)% and 19.7 days, respectively.

Senior Notes

On June 12, 2020, Mohawk Capital Finance S.A. (“Mohawk Finance”), an indirect wholly-owned finance subsidiary of the Company, completed the issuance and sale of €500,000 aggregate principal amount of 1.750% Senior Notes (“1.750% Senior Notes”) due June 12, 2027. The 1.750% Senior Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 1.750% Senior Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. Interest on the 1.750% Senior Notes is payable annually in cash on June 12 of each year, commencing on June 12, 2021. The Company paid financing costs of $4,400 in connection with the 1.750% Senior Notes. These costs were deferred and are being amortized over the term of the 1.750% Senior Notes.

On May 14, 2020, the Company completed the issuance and sale of $500,000 aggregate principal amount of 3.625% Senior Notes (“3.625% Senior Notes”) due May 15, 2030. The 3.625% Senior Notes are senior unsecured obligations of the Company and rank pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 3.625% Senior Notes is payable semi-annually in cash on May 15 and November 15 of each year, commencing on November 15, 2020. The Company paid financing costs of $5,476 in connection with the 3.625% Senior Notes. These costs were deferred and are being amortized over the term of the 3.625% Senior Notes.     

On January 31, 2013, the Company issued $600,000 aggregate principal amount of 3.85% Senior Notes (“3.85% Senior Notes”) due February 1, 2023. The 3.85% Senior Notes are senior unsecured obligations of the Company and rank pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 3.85% Senior Notes is payable semi-annually in cash on February 1 and August 1 of each year. The Company paid financing costs of $6,000 in connection with the 3.85% Senior Notes. These costs were deferred and are being amortized over the term of the 3.85% Senior Notes.

As defined in the related agreements, the Company’s senior notes contain covenants, representations and warranties and events of default, subject to exceptions, and restrictions on the Company’s financial and business operations, including limitations on liens, restrictions on entering into sale and leaseback transactions, fundamental changes, and a provision allowing the holder of the notes to require repayment upon a change of control triggering event.

23

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The fair values and carrying values of the Company’s debt instruments are detailed as follows:

	At April 2, 2022			At December 31, 2021
	Fair Value		Carrying Value	Fair Value	Carrying Value
1.750% Senior Notes, payable June 12, 2027; interest payable annually	$	553,286	552,303	601,037	566,380
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually	490,125		500,000	538,545	500,000
3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually	606,060		600,000	615,630	600,000
U.S. commercial paper	911,000		911,000	598,000	598,000
European commercial paper	24,854		24,854	15,859	15,859
Finance leases and other	54,825		54,825	53,163	53,163
Unamortized debt issuance costs	(8,118)		(8,118)	(8,617)	(8,617)
Total debt	2,632,032		2,634,864	2,413,617	2,324,785
Less current portion of long term-debt and commercial paper	1,546,463		1,546,463	624,503	624,503
Long-term debt, less current portion	$	1,085,569	1,088,401	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.

24

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

19. Consolidated Statements of Cash Flows Information

Supplemental cash flow information were as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net cash paid during the periods for:
Interest	$	12,737	24,286
Income taxes	$	52,469	17,994
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses	$	81,633	64,531
Fair value of assets acquired/adjusted in acquisitions	$	(777)	12,734
Liabilities assumed/adjusted in acquisitions	(174)		(6,396)
	$	(951)	6,338

Right of use assets obtained in exchange for lease obligations:
Operating leases	$	21,769	45,569
Finance leases	$	4,710	5,241

25

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

During the past two decades, the Company has grown significantly. Its current geographic breadth and diverse product offering are reflected in three reporting segments: Global Ceramic; Flooring NA; and Flooring ROW. The Global Ceramic Segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone tile and other products including natural stone, porcelain slabs and quartz countertops, which it distributes primarily in North America, Europe, Brazil and Russia through various selling channels, which include company-owned stores, independent distributors and home centers. The Flooring NA Segment designs, manufactures, sources and markets its floor covering products, including broadloom carpet, carpet tile, carpet cushion, rugs, laminate, resilient, including luxury vinyl tile (“LVT”) and sheet vinyl, and wood flooring, all of which it distributes through its network of regional distribution centers and satellite warehouses using Company-operated trucks, common carriers or rail transportation. The Flooring NA Segment’s product lines are sold through various channels, including independent floor covering retailers, independent distributors, home centers, mass merchandisers, department stores, shop at home, online retailers, buying groups, commercial contractors and commercial end users. The Flooring ROW Segment designs, manufactures, sources, licenses and markets laminate, resilient, including LVT and sheet vinyl, wood flooring, roofing panels, insulation boards, medium-density fiberboard (“MDF”) and chipboards, which it distributes primarily in Europe, Russia, Australia and New Zealand through various channels, including independent floor covering retailers, independent distributors, company-owned distributors, home centers, commercial contractors and commercial end users.

Mohawk is a significant supplier of every major flooring category with manufacturing operations in 18 nations and sales in approximately 160 countries. Based on its annual sales, the Company believes it is the world’s largest flooring manufacturer. A majority of the Company’s long-lived assets are located in the United States and Europe, which are also the Company’s primary markets. Additionally, the Company maintains operations in the United Kingdom, Russia, Mexico, Australia, New Zealand, Brazil and other parts of the world. The Company is a leading provider of flooring for residential and commercial markets and has earned significant recognition for its innovation in design and performance as well as sustainability.

Due to its global footprint, Mohawk’s business is sensitive to macroeconomic events in the United States and abroad. In response to Russian military actions in Ukraine, the Company has suspended new investments in Russia. The broader consequences of this conflict, which may include further economic sanctions, embargoes, regional instability, and geopolitical shifts; potential retaliatory actions, including nationalization of foreign-owned businesses; increased tensions between the U.S. and countries in which the Company operates; potential supply chain disruption of raw materials sourced from Ukraine, primarily clay, and materials and spare parts needed in the Company’s operations; global increases in the cost of natural gas, oil and oil-based raw materials and chemicals; and the extent of the conflict’s effect on the Company’s business and results of operations as well as the global economy cannot be predicted. In addition, the current environment has placed demands on the Company’s operations as the COVID-19 pandemic has at times caused disruptions in some of the Company’s markets and operations. While the near-term impact of the COVID-19 pandemic is improving, the Company anticipates that new variants of the virus could have an impact on its markets and operations in ways that are difficult to predict due to the inconsistent effect the variants have had in different regions.

During the past year, rapid cost escalations in materials, energy, transportation and labor have impacted the Company’s profitability across all segments. Mohawk has, to some extent, offset the impact of inflationary pressures through multiple pricing actions across product categories and geographies; improved mix from sales of higher-value, differentiated products; and productivity gains in manufacturing and logistics. In the near future, the Company might not foresee significant changes in these external pressures, which could have an adverse impact on the Company’s results. Similarly, inflationary pressures around the globe may impact consumer and commercial investments in flooring and other large, deferrable purchases.

In 2022, the Company plans to invest an additional amount of approximately $800 million to complete existing projects and commence new initiatives. The Company plans to invest in previously initiated expansion projects, cost reduction initiatives and upgrades for recent acquisitions as well as maintenance across the businesses. The main investment areas include the Company’s LVT portfolio to upgrade its product offering and improve profitability; premium water-proof laminate in North America and Europe; ceramic capacity increases in Brazil and Italy; and countertop expansion in North America and Europe.

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For the three months ended April 2, 2022, net earnings attributable to the Company were $245.3 million, or diluted earnings per share (“EPS”) of $3.78, compared to net earnings attributable to the Company of $236.8 million, or diluted earnings per share of $3.36 for the three months ended April 3, 2021. The change in EPS was primarily attributable to the favorable net impact of price and product mix, productivity gains, reduced share count due to the repurchases of common stock and lower restructuring, acquisition and integration-related costs, partially offset by higher inflation, lower sales volume, the unfavorable net impact from foreign exchange rates, and increased short-term manufacturing disruptions. The Company believes that a number of circumstances may impact trends in 2022, including Russian military actions in Ukraine, the continuation of the COVID-19 pandemic, impacts to material availability due to disruptions in the global supply chain and inflation, but the extent and duration of such impact cannot be predicted.

For the three months ended April 2, 2022, the Company generated $55.0 million of cash from operating activities. As of April 2, 2022, the Company had cash and cash equivalents of $230.6 million, of which $15.4 million was in the United States and $215.2 million was in foreign countries.

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Results of Operations

Quarter Ended April 2, 2022, as compared with Quarter Ended April 3, 2021

Net sales

Net sales for the three months ended April 2, 2022 were $3,015.7 million, reflecting an increase of $346.7 million, or 13.0%, from the $2,669.0 million reported for the three months ended April 3, 2021. The increase was primarily attributable to the favorable net impact of price and product mix of approximately $430 million and higher sales volume of approximately $27 million, partially offset by the unfavorable net impact from foreign exchange rates of approximately $94 million and the unfavorable impact from one less shipping day in the first quarter of 2022 of approximately $21 million.

Global Ceramic Segment—Net sales increased $134.9 million, or 14.5%, to $1,064.8 million for the three months ended April 2, 2022, compared to $929.9 million for the three months ended April 3, 2021. The increase was primarily attributable to the favorable net impact of price and product mix of approximately $142 million and higher sales volume of approximately $30 million, partially offset by the unfavorable net impact from foreign exchange rates of approximately $32 million and the unfavorable impact from one less shipping day in the first quarter of 2022 of approximately $4 million.

Flooring NA Segment—Net sales increased $102.6 million, or 10.6%, to $1,071.9 million for the three months ended April 2, 2022, compared to $969.3 million for the three months ended April 3, 2021. The increase was primarily attributable to the favorable net impact of price and product mix of approximately $140 million, partially offset by lower sales volume of approximately $20 million and the unfavorable impact from one less shipping day in the first quarter of 2022 of approximately $17 million.

Flooring ROW Segment—Net sales increased $109.1 million, or 14.2%, to $879.0 million for the three months ended April 2, 2022, compared to $769.9 million for the three months ended April 3, 2021. The increase was primarily attributable to the favorable net impact of price and product mix of approximately $149 million and higher sales volume of approximately $17 million, partially offset by the unfavorable net impact from foreign exchange rates of approximately $61 million.

Gross profit

Gross profit for the three months ended April 2, 2022 was $802.1 million (26.6% of net sales), an increase of $10.3 million or 1.3%, compared to gross profit of $791.8 million (29.7% of net sales) for the three months ended April 3, 2021. As a percentage of net sales, gross profit decreased 310 basis points. The increase in gross profit dollars was primarily attributable to the favorable net impact of price and product mix of approximately $347 million, productivity gains of approximately $20 million and lower restructuring, acquisition and integration-related costs of approximately $10 million, partially offset by higher inflation of approximately $331 million, the unfavorable net impact from foreign exchange rates of approximately $23 million, increased short-term manufacturing disruptions of approximately $9 million and lower sales volume of approximately $6 million.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months ended April 2, 2022 were $481.3 million (16.0% of net sales), an increase of $7.0 million compared to $474.3 million (17.8% of net sales) for the three months ended April 3, 2021. As a percentage of net sales, selling, general and administrative expenses decreased 180 basis points. The increase in selling, general and administrative expenses in dollars was primarily attributable to the unfavorable net impact of price and product mix of approximately $16 million, higher inflation of approximately $10 million and higher sales volume of approximately $6 million, partially offset by productivity gains of approximately $13 million and the favorable net impact from foreign exchange rates of approximately $12 million.

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Operating income

Operating income for the three months ended April 2, 2022 was $320.8 million (10.6% of net sales), reflecting an increase of $3.3 million, or 1.0%, compared to operating income of $317.5 million (11.9% of net sales) for the three months ended April 3, 2021. The increase in operating income was primarily attributable to the favorable net impact of price and product mix of approximately $331 million, productivity gains of approximately $33 million and lower restructuring, acquisition and integration-related costs of approximately $10 million, partially offset by higher inflation of approximately $342 million, lower sales volume of approximately $12 million, the unfavorable net impact from foreign exchange rates of approximately $11 million and increased short-term manufacturing disruptions of approximately $9 million.

Global Ceramic Segment—Operating income was $100.3 million (9.4% of segment net sales) for the three months ended April 2, 2022, reflecting an increase of $12.5 million compared to operating income of $87.8 million (9.4% of segment net sales) for the three months ended April 3, 2021. The increase in operating income was primarily attributable to the favorable net impact of price and product mix of approximately $102 million, productivity gains of approximately $11 million and higher sales volume of approximately $9 million, partially offset by higher inflation of approximately $105 million and the unfavorable net impact from foreign exchange rates of approximately $3 million.

Flooring NA Segment—Operating income was $95.3 million (8.9% of segment net sales) for the three months ended April 2, 2022, reflecting an increase of $14.0 million compared to operating income of $81.3 million (8.4% of segment net sales) for the three months ended April 3, 2021. The increase in operating income was primarily attributable to the favorable net impact of price and product mix of approximately $102 million, productivity gains of approximately $30 million and lower restructuring, acquisition and integration-related costs of approximately $9 million, partially offset by higher inflation of approximately $104 million and lower sales volume of approximately $21 million.

Flooring ROW Segment—Operating income was $134.7 million (15.3% of segment net sales) for the three months ended April 2, 2022, reflecting a decrease of $24.6 million compared to operating income of $159.3 million (20.7% of segment net sales) for the three months ended April 3, 2021. The decrease in operating income was primarily attributable to higher inflation of approximately $133 million, productivity losses of approximately $9 million, the unfavorable net impact of foreign exchange rates of approximately $8 million and increased short-term manufacturing disruptions of approximately $4 million, partially offset by the favorable net impact of price and product mix of approximately $128 million.

Interest expense

Interest expense was $11.5 million for the three months ended April 2, 2022, reflecting a decrease of $3.7 million compared to interest expense of $15.2 million for the three months ended April 3, 2021. Approximately $3.0 million of the decrease in interest expense was due to the Company’s redemption of the 2.00% Senior Notes on October 19, 2021.

Other expense (income), net

Other expense, net was $2.4 million for the three months ended April 2, 2022, reflecting an unfavorable change of $4.6 million compared to other income, net of $2.2 million for the three months ended April 3, 2021. The change was primarily driven by the release of an indemnification receivable related to the reversal of uncertain tax positions recorded with the Emil acquisition of approximately $7 million and the unfavorable net impact of foreign exchange rates of approximately $2 million, partially offset by other miscellaneous items of approximately $4 million.

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Income tax expense

For the three months ended April 2, 2022, the Company recorded income tax expense of $61.4 million on earnings before income taxes of $306.9 million, for an effective tax rate of 20.0%, as compared to an income tax expense of $67.7 million on earnings before income taxes of $304.5 million, for an effective tax rate of 22.2% for the three months ended April 3, 2021. The difference in the effective tax rates for the comparative periods was impacted by the Company’s geographic dispersion of profits and losses for the respective periods, lower U.S. tax on foreign earnings, and an Italian benefit associated with a release of an uncertain tax liability in the first quarter of 2022.

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Liquidity and Capital Resources

The Company’s primary capital requirements are for working capital, capital expenditures and acquisitions. The Company’s capital needs are met primarily through a combination of internally generated funds, commercial paper, bank credit lines, term and senior notes and credit terms from suppliers.

Net cash provided by operating activities in the first three months of 2022 was $55.0 million, compared to net cash provided by operating activities of $259.6 million in the first three months of 2021. The decrease of $204.7 million in 2022 was primarily attributable to the change in working capital, partially offset by higher net earnings.

Net cash used in investing activities in the first three months of 2022 was $115.5 million compared to net cash used in investing activities of $333.3 million in the first three months of 2021. The decrease was primarily due to the increase in the redemptions of short-term investments of $225.2 million (net of purchases of short-term investments).

Net cash provided by financing activities in the first three months of 2022 was $9.0 million compared to net cash used in financing activities of $120.2 million in the three months of 2021. The cash provided by financing activities is primarily attributable to the higher net proceeds from commercial paper of $319.6 million, partially offset by higher share repurchases of $183.7 million.

As of April 2, 2022, the Company had cash of $230.6 million, of which $215.2 million was held outside the United States. The Company plans to permanently reinvest the cash held outside the United States. The Company believes that its cash and cash equivalents on hand, cash generated from operations and availability under its existing credit facilities will be sufficient to meet its capital expenditure, working capital and debt servicing requirements over at least the next twelve months. The Company continually evaluates its projected needs and may conduct additional debt financings, subject to market conditions, to increase its liquidity and to take advantage of attractive financing opportunities.

On February 10, 2022, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the “2022 Share Repurchase Program”). For the three months ended April 2, 2022, the Company purchased $306.6 million of its common stock, exhausting the $36.8 million remaining under the 2021 Share Repurchase Program, and utilizing $269.8 million under the 2022 Share Repurchase Program. As of April 2, 2022, there remains $230.2 million authorized under the 2022 Share Repurchase Program.

See Note 18. Debt, of the notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for further discussion of the Company’s long-term debt. The Company may continue, from time to time, to retire its outstanding debt through cash purchases in the open market, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors. The amount involved may be material.

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Contractual Obligations

There have been no significant changes to the Company’s contractual obligations as disclosed in the Company’s 2021 Annual Report filed on Form 10-K except as described herein.

Critical Accounting Policies and Estimates

The Company’s critical accounting policies and estimates are described in its 2021 Annual Report filed on Form 10-K.

Recent Accounting Pronouncements

See Note 1 in the Notes to Condensed Consolidated Financial Statements of this Form 10-Q under the heading “Recent Accounting Pronouncements” for a discussion of new accounting pronouncements which is incorporated herein by reference.

Impact of Inflation

Inflation affects the Company’s manufacturing costs, distribution costs and operating expenses. The Company expects raw material prices, many of which are petroleum-based, to fluctuate based upon worldwide supply and demand of commodities utilized in the Company’s production process. Although the Company attempts to pass on increases in raw material, labor, energy and fuel-related costs to its customers, the Company’s ability to do so is dependent upon the rate and magnitude of any increase, competitive pressures and market conditions for the Company’s products. There have been in the past, and may be in the future, periods of time during which increases in these costs cannot be fully recovered. In the past, the Company has often been able to enhance productivity, reduce costs and develop new product innovations to help offset increases in costs resulting from inflation in its operations.

Off-Balance Sheet Arrangements

The Company did not have any off-balance sheet arrangements as of April 2, 2022.

Seasonality

The Company is a calendar year-end company. With respect to its Global Ceramic Segment, the second quarter typically sees higher net sales, followed by the third and first quarters, while the fourth quarter shows weaker net sales. For the Global Ceramic Segment’s operating income, generally, the second quarter shows stronger earnings, followed by third and first quarters, and the fourth quarter shows weaker earnings. The Flooring NA Segment’s second quarter typically produces higher net sales followed by moderate third and fourth quarters, and a weaker first quarter. For the Flooring NA Segment’s operating income, historically, the third quarter shows stronger earnings, followed by second and fourth quarters, and a weaker first quarter. The Flooring ROW Segment’s second quarter historically produces higher net sales followed by moderate fourth and third quarters, and a weaker first quarter. For the Flooring ROW Segment’s operating income, generally, the second quarter shows stronger earnings, followed by first and third quarters, and the fourth quarter shows weaker earnings.

During 2020 and 2021, the COVID-19 pandemic created volatility in the global economy, led to unpredictable economic activity and impacted the supply chain for raw materials and sourced finished goods. The COVID-19 pandemic might impact normal seasonality trends in 2022, but the extent and duration of such impact cannot be predicted.

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Forward-Looking Information

Certain of the statements in this Form 10-Q, particularly those anticipating future performance, business prospects, growth and operating strategies, and similar matters, and those that include the words “could,” “should,” “believes,” “anticipates,” “expects” and “estimates” or similar expressions constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. The following important factors could cause future results to differ: changes in economic or industry conditions; competition; inflation and deflation in raw material prices, freight and other input costs; inflation and deflation in consumer markets; currency fluctuations; energy costs and supply; timing and level of capital expenditures; timing and implementation of price increases for the Company’s products; impairment charges; integration of acquisitions; international operations; introduction of new products; rationalization of operations; tax and tax reform, product and other claims; litigation; Russian military actions in Ukraine or other geopolitical events and the risks and uncertainty related to the COVID-19 pandemic; regulatory and political changes in the jurisdictions in which the Company does business; and other risks identified in Mohawk’s SEC reports and public announcements.

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Item 3.Quantitative and Qualitative Disclosures About Market Risk

As of April 2, 2022, approximately 65% of the Company’s debt portfolio was comprised of fixed-rate debt and 35% was floating-rate debt. A 1.0 percentage point increase in the interest rate of the floating-rate debt would have resulted in an increase in interest expense of $2.3 million for the three months ended April 2, 2022.

There have been no significant changes to the Company’s exposure to market risk as disclosed in the Company’s 2021 Annual Report filed on Form 10-K.    

Item 4.Controls and Procedures

Based on an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended), which have been designed to provide reasonable assurance that such controls and procedures will meet their objectives, as of the end of the period covered by this report, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that such controls and procedures were effective at a reasonable assurance level for the period covered by this report.

There were no changes in the Company’s internal control over financial reporting that occurred during the period covered by this report that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.Legal Proceedings

The Company is involved in various lawsuits, claims, investigations and other legal matters from time to time in the regular course of its business. Except as noted elsewhere in this report, 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.

See Note 17. Commitments and Contingencies of the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for a discussion of the Company’s legal proceedings.

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Item 1A.Risk Factors

Other than the risk factor set forth below, there have been no material changes in the Company’s risk factors from those disclosed in Part I, Item 1A to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The risk factors disclosed in these reports, in addition to the other information set forth in this report, could materially affect our business, financial condition or results.

The ongoing military conflict between Russia and Ukraine may adversely affect the Company’s business and results of operations.

In response to Russian military actions in Ukraine, the Company has suspended new investments in Russia. The broader consequences of this conflict, which may include further economic sanctions, embargoes, regional instability, and geopolitical shifts; potential retaliatory actions, including nationalization of foreign-owned businesses; increased tensions between the U.S. and countries in which the Company operates; potential supply chain disruption of raw materials sourced from Ukraine, primarily clay, and materials and spare parts needed in the Company’s operations; global increases in the cost of natural gas, oil and oil-based raw materials and chemicals; and the extent of the conflict’s effect on the Company’s business and results of operations as well as the global economy cannot be predicted.

Any future consequences of the conflict, including economic sanctions, may result in an adverse effect on the Company’s Russian operations, which represented approximately 4% of net sales for the year ended December 31, 2021. The Company continues to monitor the potential impacts on its business and the ancillary impacts that the conflict may have on its other global operations.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

On February 10, 2022, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock. In the first quarter of 2022, the Company purchased $306.6 million of its common stock, exhausting the $36.8 million remaining under the 2021 Share Repurchase Program, and utilizing $269.8 million under the 2022 Share Repurchase Program. As of April 2, 2022, there remains $230.2 million authorized under the 2022 Share Repurchase Program.

Under the share repurchase program, the Company may purchase common stock in open market transactions, block or privately negotiated transactions, and may from time to time purchase shares pursuant to trading plans in accordance with Rules 10b5-1 or 10b-18 under the Exchange Act or by any combination of such methods. The number of shares to be purchased and the timing of the purchases are based on a variety of factors, including, but not limited to, the level of cash balances, credit availability, debt covenant restrictions, general business conditions, regulatory requirements, the market price of the Company’s stock and the availability of alternative investment opportunities. No time limit was set for completion of repurchases under the share repurchase program and the share repurchase program may be suspended or discontinued at any time.

The following table provides information regarding share repurchase activity during the three months ended April 2, 2022.

Period	Total Number of Shares Purchased in Millions	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan in Millions	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan in Millions
January 1 through February 5, 2022	0.2	$	174.81	0.2	$	—
February 6 through March 5, 2022	1.9	$	141.64	1.9	$	230.2
March 6 through April 2, 2022	0.0	$	—	0.0	$	230.2
Total	2.1	$	144.94	2.1

Item 3.Defaults Upon Senior Securities

None.

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Item 4.Mine Safety Disclosures

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95.1 to this quarterly report on Form 10-Q.

Item 5.Other Information

None.

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Item 6.Exhibits

No.	Description
3.1	Restated Certificate of Incorporation of Mohawk, as amended. (Incorporated herein by reference to Exhibit 3.1 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998.)
3.2	Restated Bylaws of Mohawk. (Incorporated herein by reference to Exhibit 3.1 in the Company’s Report on Form 8-K dated February 19, 2019.)
31.1	Certification Pursuant to Rule 13a-14(a).
31.2	Certification Pursuant to Rule 13a-14(a).
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95.1	Mine Safety Disclosure pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Interactive Data File

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			MOHAWK INDUSTRIES, INC.
			(Registrant)
Dated:	April 29, 2022	By:	/s/ Jeffrey S. Lorberbaum
			JEFFREY S. LORBERBAUM
			Chairman and Chief Executive Officer
			(principal executive officer)
Dated:	April 29, 2022	By:	/s/ James F. Brunk
			JAMES F. BRUNK
			Chief Financial Officer
			(principal financial officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Jeffrey S. Lorberbaum, certify that:

1		I have reviewed this quarterly report on Form 10-Q of Mohawk Industries, Inc.;
2		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4		The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5		The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 29, 2022

/s/ Jeffrey S. Lorberbaum

Jeffrey S. Lorberbaum

Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, James F. Brunk, certify that:

1		I have reviewed this quarterly report on Form 10-Q of Mohawk Industries, Inc.;
2		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4		The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5		The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 29, 2022

/s/ James F. Brunk

James F. Brunk

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Statement of Chief Executive Officer of

MOHAWK INDUSTRIES, INC.

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

§ 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Mohawk Industries, Inc. (the “Company”) on Form 10-Q for the period ended April 2, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey S. Lorberbaum, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

1	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeffrey S. Lorberbaum

Jeffrey S. Lorberbaum

Chairman and Chief Executive Officer

April 29, 2022

EX-32.2

EXHIBIT 32.2

Statement of Chief Financial Officer of

MOHAWK INDUSTRIES, INC.

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

§ 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Mohawk Industries, Inc. (the “Company”) on Form 10-Q for the period ended April 2, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James F. Brunk, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

1	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James F. Brunk

James F. Brunk

Chief Financial Officer

April 29, 2022

EX-95.1

Exhibit 95.1

Mine Safety Disclosure

The following disclosures are provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) and Item 104 of Regulation S-K, which requires certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934, as amended, that operate mines regulated under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”).

Mine Safety Information

Whenever the Federal Mine Safety and Health Administration (“MSHA”) believes a violation of the Mine Act, any health or safety standard or any regulation has occurred, it may issue a citation which describes the alleged violation and fixes a time within which the U.S. mining operator must abate the alleged violation. In some situations, such as when MSHA believes that conditions pose a hazard to miners, MSHA may issue an order removing miners from the area of the mine affected by the condition until the alleged hazards are corrected. When MSHA issues a citation or order, it generally proposes a civil penalty, or fine, as a result of the alleged violation, that the operator is ordered to pay. Citations and orders can be contested and appealed, and as part of that process, may be reduced in severity and amount, and are sometimes dismissed. The number of citations, orders and proposed assessments vary depending on the size and type (underground or surface) of the mine as well as by the MSHA inspector(s) assigned.

The following table includes information required by the Act for the three months ended April 2, 2022.

Mine (Federal Mine Safety and Health Administration (MSHA) ID)	Total # of Significant & Substantial violations under §104(a)	Total # of orders under §104(b)	Total # of unwarrantable failure citations and orders under §104(d)	Total # of violations under §110(b)(2)	Total # of orders under §107(a)	Total dollar value of proposed assessments from MSHA ($ in thousands)	Total # of mining related fatalities	Received Notice of Pattern of Violations under §104(e) (yes/no)?	Received Notice of Potential to have Pattern under §104(e) (yes/no)?	Total # of Legal Actions Pending with the Mine Safety and Health Review Commission as of the Last Day of Period	Legal Actions Initiated or Resolved During Period
TP Claims 1&2/Rosa Blanca (4100867)	—	—	—	—	—	—	—	No	No	—	—
Allamore Mill (4100869)	—	—	—	—	—	—	—	No	No	—	—
Wild Horse Plant (4101527)	—	—	—	—	—	—	—	No	No	—	—

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COVER PAGE - shares	3 Months Ended
	Apr. 02, 2022	Apr. 27, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2022
Document Transition Report	false
Entity File Number	01-13697
Entity Registrant Name	MOHAWK INDUSTRIES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1604305
Entity Address, Address Line One	160 S. Industrial Blvd.
Entity Address, City or Town	Calhoun
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30701
City Area Code	706
Local Phone Number	629-7721
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	MHK
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,539,428
Entity Central Index Key	0000851968
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 02, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 230,559	$ 268,895
Short-term investments	310,000	323,000
Receivables, net	2,044,698	1,839,985
Inventories	2,513,244	2,391,672
Prepaid expenses	447,358	394,649
Other current assets	18,880	20,156
Total current assets	5,564,739	5,238,357
Property, plant and equipment	9,240,329	9,250,587
Less: accumulated depreciation	4,687,717	4,613,722
Property, plant and equipment, net	4,552,612	4,636,865
Right of use operating lease assets	384,740	389,967
Goodwill	2,579,385	2,607,909
Tradenames	687,734	694,905
Other intangible assets subject to amortization, net	195,793	205,075
Deferred income taxes and other non-current assets	421,716	451,439
Total assets	14,386,719	14,224,517
Current liabilities:
Short-term debt and current portion of long-term debt	1,546,463	624,503
Accounts payable and accrued expenses	2,220,347	2,217,418
Current operating lease liabilities	104,823	104,434
Total current liabilities	3,871,633	2,946,355
Deferred income taxes	498,273	495,521
Long-term debt, less current portion	1,088,401	1,700,282
Non-current operating lease liabilities	293,239	297,390
Other long-term liabilities	347,570	356,753
Total liabilities	6,099,116	5,796,301
Commitments and contingencies (Note 17)
Stockholders’ equity:
Preferred stock, $.01 par value; 60 shares authorized; no shares issued	0	0
Common stock, $.01 par value; 150,000 shares authorized; 70,880 and 72,952 shares issued and outstanding in 2022 and 2021, respectively	709	729
Additional paid-in capital	1,913,518	1,911,131
Retained earnings	7,630,837	7,692,064
Accumulated other comprehensive loss	(1,048,599)	(966,952)
Stockholders' equity before treasury stock	8,496,465	8,636,972
Less: treasury stock at cost; 7,341 and 7,343 shares in 2022 and 2021, respectively	215,495	215,547
Total Mohawk Industries, Inc. stockholders’ equity	8,280,970	8,421,425
Nonredeemable noncontrolling interests	6,633	6,791
Total stockholders’ equity	8,287,603	8,428,216
Total liabilities and stockholders' equity	$ 14,386,719	$ 14,224,517

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 02, 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)	70,880,000	72,952,000
Common stock, shares outstanding (in shares)	70,880,000	72,952,000
Treasury stock, shares (in shares)	7,341,000	7,343,000

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Income Statement [Abstract]
Net sales	$ 3,015,663	$ 2,669,026
Cost of sales	2,213,535	1,877,257
Gross profit	802,128	791,769
Selling, general and administrative expenses	481,327	474,254
Operating income	320,801	317,515
Interest expense	11,481	15,241
Other expense (income) net	2,438	(2,227)
Earnings before income taxes	306,882	304,501
Income tax expense	61,448	67,690
Net earnings including noncontrolling interests	245,434	236,811
Net earnings attributable to noncontrolling interests	105	4
Net earnings attributable to Mohawk Industries, Inc.	$ 245,329	$ 236,807
Basic earnings per share attributable to Mohawk Industries, Inc.
Basic earnings per share attributable to Mohawk Industries, Inc. (in usd per share)	$ 3.79	$ 3.37
Weighted-average common shares outstanding-basic (in shares)	64,686	70,179
Diluted earnings per share attributable to Mohawk Industries, Inc.
Diluted earnings per share attributable to Mohawk Industries, Inc. (in usd per share)	$ 3.78	$ 3.36
Weighted-average common shares outstanding-diluted (in shares)	64,970	70,474

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Statement of Comprehensive Income [Abstract]
Net earnings including noncontrolling interests	$ 245,434	$ 236,811
Other comprehensive income (loss):
Foreign currency translation adjustments	(82,447)	(160,654)
Prior pension and post-retirement benefit service cost and actuarial gain, net of tax	537	97
Other comprehensive loss	(81,910)	(160,557)
Comprehensive income	163,524	76,254
Comprehensive loss attributable to noncontrolling interests	(158)	(244)
Comprehensive income attributable to Mohawk Industries, Inc.	$ 163,682	$ 76,498

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Cash flows from operating activities:
Net earnings including noncontrolling interests	$ 245,434	$ 236,811
Adjustments to reconcile net earnings to net cash provided by operating activities:
Restructuring	898	4,256
Depreciation and amortization	141,415	151,216
Deferred income taxes	13,989	3,740
(Gain) loss on disposal of property, plant and equipment	(365)	2,522
Stock-based compensation expense	5,655	5,968
Changes in operating assets and liabilities, net of effects of acquisitions:
Receivables, net	(225,922)	(138,764)
Inventories	(141,344)	(109,550)
Other assets and prepaid expenses	(23,259)	(34,432)
Accounts payable and accrued expenses	39,908	122,748
Other liabilities	(1,455)	15,090
Net cash provided by operating activities	54,954	259,605
Cash flows from investing activities:
Additions to property, plant and equipment	(129,470)	(114,735)
Acquisitions, net of cash acquired	951	(6,338)
Purchases of short-term investments	(933,000)	(698,698)
Redemption of short-term investments	946,000	486,489
Net cash used in investing activities	(115,519)	(333,282)
Cash flows from financing activities:
Payments on commercial paper	(2,667,668)	(32,633)
Proceeds from commercial paper	2,990,240	35,600
Net (payments) proceeds of other financing activities	(6,516)	852
Purchase of Mohawk common stock	(306,577)	(122,876)
Change in outstanding checks in excess of cash	(522)	(1,126)
Net cash provided by (used in) financing activities	8,957	(120,183)
Effect of exchange rate changes on cash and cash equivalents	13,272	(17,503)
Net change in cash and cash equivalents	(38,336)	(211,363)
Cash and cash equivalents, beginning of period	268,895	768,625
Cash and cash equivalents, end of period	$ 230,559	$ 557,262

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General

3 Months Ended

Apr. 02, 2022

Accounting Policies [Abstract]

General

General

Unless this Form 10-Q indicates otherwise or the context otherwise requires, the terms “we,” “our,” “us,” “Mohawk,” or “the Company” as used in this Form 10-Q refer to Mohawk Industries, Inc.

Interim Reporting

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto, and the Company’s description of critical accounting policies, included in the Company’s 2021 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Results for interim periods are not necessarily indicative of the results for the year.

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. In periods when the Company uses foreign currency denominated debt to hedge its non-U.S. net investments, 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. 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 or (loss). 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 three months ended April 3, 2021, the change in the U.S. dollar value of the Company’s euro denominated debt was a decrease of $27,047 ($20,694 net of taxes).

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes which simplified the accounting for income taxes in several areas by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes. The Company adopted the new standard on January 1, 2021. The effect of adopting the new standard was not material.

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Acquisitions	3 Months Ended
	Apr. 02, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions2021 AcquisitionsDuring 2021, the Company made acquisitions in the Flooring Rest of the World (“Flooring ROW”) Segment totaling $123,018, including the acquisition of an insulation manufacturer, on September 7, 2021 for $66,334 and the acquisition of an MDF production plant on November 2, 2021 for $46,348. The Company’s acquisition resulted in a goodwill allocation of $54,527 and an intangible asset subject to amortization of $19,910. The goodwill is not expected to be deductible for tax purposes. The remaining acquisitions resulted in goodwill of $1,672 and intangible assets subject to amortization of $5,596.

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Revenue from Contracts with Customers

3 Months Ended

Apr. 02, 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 consolidating balance sheets. The Company had contract liabilities of $74,165 and $65,744 as of April 2, 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 three months ended April 2, 2022 and April 3, 2021 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 $49,042 and $49,644 as of April 2, 2022 and December 31, 2021, respectively. Straight-line amortization expense recognized during the three months ended April 2, 2022 and April 3, 2021 related to these capitalized costs were $12,340 and $15,581, respectively.

Revenue Disaggregation

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the three months ended April 2, 2022 and April 3, 2021:

April 2, 2022	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Geographical Markets
United States	$	585,231	1,035,880	2,786	1,623,897
Europe	245,236		2,132	637,363	884,731
Russia	66,518		23	39,736	106,277
Other	167,772		33,875	199,111	400,758
	$	1,064,757	1,071,910	878,996	3,015,663
Product Categories
Ceramic & Stone	$	1,059,711	8,988	—	1,068,699
Carpet & Resilient	5,046		843,082	244,128	1,092,256
Laminate & Wood	—		219,840	297,137	516,977
Other(1)	—		—	337,731	337,731
	$	1,064,757	1,071,910	878,996	3,015,663

April 3, 2021	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Geographical Markets
United States	$	534,547	936,098	2,419	1,473,064
Europe	207,500		330	558,138	765,968
Russia	62,018		30	27,657	89,705
Other	125,806		32,792	181,691	340,289
	$	929,871	969,250	769,905	2,669,026
Product Categories
Ceramic & Stone	$	927,459	8,322	—	935,781
Carpet & Resilient	2,412		772,079	247,724	1,022,215
Laminate & Wood	—		188,849	253,213	442,062
Other(1)	—		—	268,968	268,968
	$	929,871	969,250	769,905	2,669,026

(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.

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Restructuring, Acquisition and Integration-Related Costs

3 Months Ended

Apr. 02, 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 transaction and integration-related costs consisted of the following during the three months ended April 2, 2022 and April 3, 2021:

	Three Months Ended
	April 2 2022		April 3 2021
Cost of sales
Restructuring costs	$	898	10,165
Acquisition integration-related costs	40		17
Restructuring and acquisition integration-related costs	$	938	10,182
Selling, general and administrative expenses
Restructuring costs	$	—	(90)
Acquisition transaction-related costs	696		849
Acquisition integration-related costs	284		243
Restructuring, acquisition transaction and integration-related costs	$	980	1,002

The restructuring activity for the three months ended April 2, 2022 is as follows:

	Severance		Other restructuring costs	Total
Balances as of December 31, 2021	$	1,634	995	2,629
Restructuring costs
Flooring NA Segment	—		105	105
Flooring ROW Segment	—		793	793
Total restructuring costs	—		898	898
Cash payments	(875)		(970)	(1,845)
Non-cash items	(15)		(904)	(919)
Balances as of April 2, 2022	$	744	19	763
Restructuring costs recorded in:
Cost of sales	$	—	898	898
Total restructuring costs	$	—	898	898

The Company expects the remaining severance and other restructuring costs to be paid over the next 12 months.

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Fair Value

3 Months Ended

Apr. 02, 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 April 2, 2022 and December 31, 2021:

	Fair Value
	April 2, 2022		December 31, 2021
Short-term investments:
Commercial paper (Level 2)	$	310,000	323,000

The fair values and carrying values of the Company’s debt are disclosed in Note 18 - Debt.

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Receivables, net

3 Months Ended

Apr. 02, 2022

Receivables [Abstract]

Receivables, net

Receivables, net

Receivables, net are as follows:

	At April 2, 2022		At December 31, 2021
Customers, trade	$	1,947,020	1,721,584
Income tax receivable	59,365		73,727
Other	111,527		117,823
	2,117,912		1,913,134
Less: allowance for discounts, claims and doubtful accounts	73,214		73,149
Receivables, net	$	2,044,698	1,839,985

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Inventories

3 Months Ended

Apr. 02, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories

The components of inventories are as follows:

	At April 2, 2022		At December 31, 2021
Finished goods	$	1,738,910	1,677,707
Work in process	164,442		144,004
Raw materials	609,892		569,961
Total inventories	$	2,513,244	2,391,672

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Goodwill and Intangible Assets

3 Months Ended

Apr. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The components of goodwill and other intangible assets are as follows:

Goodwill:

	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Balance as of December 31, 2021
Goodwill	$	1,563,267	874,198	1,497,869	3,935,334
Accumulated impairment losses	(531,930)		(343,054)	(452,441)	(1,327,425)
	1,031,337		531,144	1,045,428	2,607,909
Goodwill adjustments related to acquisitions	—		—	(731)	(731)
Currency translation during the period	(6,765)		—	(21,028)	(27,793)
Balance as of April 2, 2022
Goodwill	1,556,502		874,198	1,476,110	3,906,810
Accumulated impairment losses	(531,930)		(343,054)	(452,441)	(1,327,425)
Balance as of April 2, 2022, net	$	1,024,572	531,144	1,023,669	2,579,385

Intangible assets not subject to amortization:

	Tradenames
Balance as of December 31, 2021	$	694,905
Currency translation during the period	(7,171)
Balance as of April 2, 2022	$	687,734

Intangible assets subject to amortization:

Gross carrying amounts:	Customer relationships		Patents	Other	Total
Balance as of December 31, 2021	$	680,177	256,336	6,786	943,299
Adjustments related to acquisitions	(36)		—	—	(36)
Currency translation during the period	(8,985)		(6,378)	(143)	(15,506)
Balance as of April 2, 2022	$	671,156	249,958	6,643	927,757
Accumulated amortization:	Customer relationships		Patents	Other	Total
Balance as of December 31, 2021	$	483,748	252,414	2,062	738,224
Amortization during the period	6,961		165	47	7,173
Currency translation during the period	(7,135)		(6,282)	(16)	(13,433)
Balance as of April 2, 2022	$	483,574	246,297	2,093	731,964
Intangible assets subject to amortization, net as of April 2, 2022	$	187,582	3,661	4,550	195,793

	Three Months Ended
	April 2, 2022		April 3, 2021
Amortization expense	$	7,173	7,498

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Accounts Payable and Accrued Expenses

3 Months Ended

Apr. 02, 2022

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses are as follows:

	At April 2, 2022		At December 31, 2021
Outstanding checks in excess of cash	$	2,483	3,005
Accounts payable, trade	1,296,066		1,228,621
Accrued expenses	644,161		666,209
Product warranties	41,693		45,215
Accrued interest	19,143		17,940
Accrued compensation and benefits	216,801		256,428
Total accounts payable and accrued expenses	$	2,220,347	2,217,418

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Apr. 02, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 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, 2021	$	(959,199)	(7,753)	(966,952)
Current period other comprehensive income (loss)	(82,184)		537	(81,647)
Balance as of April 2, 2022	$	(1,041,383)	(7,216)	(1,048,599)

Stockholders’ Equity

The following tables reflect the changes in stockholders’ equity for the three months ended April 2, 2022 and April 3, 2021 (in thousands).

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2021	72,952	$729	$1,911,131	$7,692,064	($966,952)	(7,343)	($215,547)	$6,791	$8,428,216
Shares issued under employee and director stock plans	105	1	(3,268)	—	—	2	52	—	(3,215)
Stock-based compensation expense	—	—	5,655	—	—	—	—	—	5,655
Repurchases of common stock	(2,177)	(21)	—	(306,556)	—	—	—	—	(306,577)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	105	105
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(263)	(263)
Currency translation adjustment	—	—	—	—	(82,184)	—	—	—	(82,184)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	537	—	—	—	537
Net earnings	—	—	—	245,329	—	—	—	—	245,329
April 2, 2022	70,880	$709	$1,913,518	$7,630,837	($1,048,599)	(7,341)	($215,495)	$6,633	$8,287,603

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2020	77,624	$776	$1,885,142	$7,559,191	($695,145)	(7,346)	($215,648)	$6,842	$8,541,158
Shares issued under employee and director stock plans	113	1	(1,570)	—	—	3	97	—	(1,472)
Stock-based compensation expense	—	—	5,968	—	—	—	—	—	5,968
Repurchases of common stock	(687)	(7)	—	(122,869)	—	—	—	—	(122,876)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	4	4
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(247)	(247)
Currency translation adjustment	—	—	—	—	(160,407)	—	—	—	(160,407)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	97	—	—	—	97
Net earnings	—	—	—	236,807	—	—	—	—	236,807
April 3, 2021	77,050	$770	$1,889,540	$7,673,129	($855,455)	(7,343)	($215,551)	$6,599	$8,499,032

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Stock-Based Compensation	3 Months Ended
	Apr. 02, 2022
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock-Based Compensation	Stock-Based CompensationThe Company recognizes compensation expense for all share-based payments granted 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 awards’ estimated lives for fixed awards with ratable vesting provisions.The Company granted 189 restricted stock units (“RSUs”) at a weighted average grant-date fair value of $137.99 per unit for the three months ended April 2, 2022. The Company granted 173 RSUs at a weighted average grant-date fair value of $175.12 per unit for the three months ended April 3, 2021. The Company recognized stock-based compensation costs related to the issuance of RSUs of $5,655 ($4,184 net of taxes) and $5,968 ($4,416 net of taxes) for the three months ended April 2, 2022 and April 3, 2021, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $35,901 as of April 2, 2022, and will be recognized as expense over a weighted-average period of approximately 2.15 years.

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Other Expense (Income), net

3 Months Ended

Apr. 02, 2022

Other Nonoperating Income (Expense) [Abstract]

Other Expense (Income), net

Other Expense (Income), net

Other expense (income), net is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Foreign currency losses (gains), net	$	736	(1,186)
Release of indemnification asset	7,212		—
All other, net	(5,510)		(1,041)
Total other expense (income), net	$	2,438	(2,227)

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Income Taxes	3 Months Ended
	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesFor the three months ended April 2, 2022, the Company recorded income tax expense of $61,448 on earnings before income taxes of $306,882 for an effective tax rate of 20.0%, as compared to an income tax expense of $67,690 on earnings before income taxes of $304,501, for an effective tax rate of 22.2% for the three months ended April 3, 2021. The difference in the effective tax rates for the comparative periods was impacted by the Company’s geographic dispersion of profits and losses for the respective periods, lower U.S. tax on foreign earnings, and an Italian benefit associated with a release of an uncertain tax liability in the first quarter of 2022.

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Stockholders' Equity

3 Months Ended

Apr. 02, 2022

Equity [Abstract]

Stockholders' Equity

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 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, 2021	$	(959,199)	(7,753)	(966,952)
Current period other comprehensive income (loss)	(82,184)		537	(81,647)
Balance as of April 2, 2022	$	(1,041,383)	(7,216)	(1,048,599)

Stockholders’ Equity

The following tables reflect the changes in stockholders’ equity for the three months ended April 2, 2022 and April 3, 2021 (in thousands).

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2021	72,952	$729	$1,911,131	$7,692,064	($966,952)	(7,343)	($215,547)	$6,791	$8,428,216
Shares issued under employee and director stock plans	105	1	(3,268)	—	—	2	52	—	(3,215)
Stock-based compensation expense	—	—	5,655	—	—	—	—	—	5,655
Repurchases of common stock	(2,177)	(21)	—	(306,556)	—	—	—	—	(306,577)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	105	105
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(263)	(263)
Currency translation adjustment	—	—	—	—	(82,184)	—	—	—	(82,184)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	537	—	—	—	537
Net earnings	—	—	—	245,329	—	—	—	—	245,329
April 2, 2022	70,880	$709	$1,913,518	$7,630,837	($1,048,599)	(7,341)	($215,495)	$6,633	$8,287,603

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2020	77,624	$776	$1,885,142	$7,559,191	($695,145)	(7,346)	($215,648)	$6,842	$8,541,158
Shares issued under employee and director stock plans	113	1	(1,570)	—	—	3	97	—	(1,472)
Stock-based compensation expense	—	—	5,968	—	—	—	—	—	5,968
Repurchases of common stock	(687)	(7)	—	(122,869)	—	—	—	—	(122,876)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	4	4
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(247)	(247)
Currency translation adjustment	—	—	—	—	(160,407)	—	—	—	(160,407)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	97	—	—	—	97
Net earnings	—	—	—	236,807	—	—	—	—	236,807
April 3, 2021	77,050	$770	$1,889,540	$7,673,129	($855,455)	(7,343)	($215,551)	$6,599	$8,499,032

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Earnings Per Share

3 Months Ended

Apr. 02, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per common share assumes the exercise of outstanding stock options and the vesting of RSUs using the treasury stock method when the effects of such assumptions are dilutive. A reconciliation of net earnings attributable to Mohawk Industries, Inc. and weighted-average common shares outstanding for purposes of calculating basic and diluted earnings per share is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net earnings attributable to Mohawk Industries, Inc.	$	245,329	236,807
Weighted-average common shares outstanding-basic and diluted:
Weighted-average common shares outstanding—basic	64,686		70,179
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net	284		295
Weighted-average common shares outstanding-diluted	64,970		70,474
Earnings per share attributable to Mohawk Industries, Inc.
Basic	$	3.79	3.37
Diluted	$	3.78	3.36

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Segment Reporting

3 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has three reporting segments: the Global Ceramic Segment, the Flooring North America (“Flooring NA”) Segment and the Flooring Rest of the World (“Flooring ROW”) Segment. The Global Ceramic Segment designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone, porcelain slabs, quartz countertops and other products, which it distributes primarily in North America, Europe, South America and Russia through its network of regional distribution centers and Company-operated service centers using Company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through Company-operated service centers, independent distributors, home center retailers, tile and flooring retailers and contractors. The Flooring NA Segment designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, laminate, resilient (includes sheet vinyl and luxury vinyl tile (“LVT”)) and wood flooring, which it distributes through its network of regional distribution centers and satellite warehouses using Company-operated trucks, common carriers or rail transportation. The segment’s product lines are sold through various selling channels, including independent floor covering retailers, distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial contractors and commercial end users. The Flooring ROW Segment designs, manufactures, sources, licenses and markets laminate, sheet vinyl, LVT, wood flooring, roofing panels, 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.

Segment information is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net sales:
Global Ceramic Segment	$	1,064,757	929,871
Flooring NA Segment	1,071,910		969,250
Flooring ROW Segment	878,996		769,905
Total	$	3,015,663	2,669,026
Operating income (loss):
Global Ceramic Segment	$	100,338	87,804
Flooring NA Segment	95,324		81,298
Flooring ROW Segment	134,650		159,306
Corporate and intersegment eliminations	(9,511)		(10,893)
Total	$	320,801	317,515

	At April 2, 2022		At December 31, 2021
Assets:
Global Ceramic Segment	$	5,240,214	5,160,776
Flooring NA Segment	4,220,757		4,125,960
Flooring ROW Segment	4,413,013		4,361,741
Corporate and intersegment eliminations	512,735		576,040
Total	$	14,386,719	14,224,517

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Commitments and Contingencies

3 Months Ended

Apr. 02, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company is involved in various lawsuits, claims, investigations and other legal matters from time to time in the regular course of its business. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject.

Perfluorinated Compounds (“PFCs”) Litigation

In September 2016, the Water Works and Sewer Board of the City of Gadsden, Alabama (the “Gadsden Water Board”) filed an individual complaint in the Circuit Court of Etowah County, Alabama against certain manufacturers, suppliers, and users of chemicals containing specific PFCs, including the Company. In May 2017, the Water Works and Sewer Board of the Town of Centre, Alabama (the “Centre Water Board”) filed a similar complaint in the Circuit Court of Cherokee County, Alabama. The Gadsden Water Board and the Centre Water Board both seek monetary damages and injunctive relief claiming that their water supplies contain excessive amounts of PFCs. Certain defendants, including the Company, filed dispositive motions in each case arguing that the Alabama state courts lack personal jurisdiction over them. These motions were denied. In June and September 2018, certain defendants, including the Company, petitioned the Alabama Supreme Court for Writs of Mandamus directing each lower court to enter an order granting the defendants’ dispositive motions on personal jurisdiction grounds. The Alabama Supreme Court denied the petitions on December 20, 2019. Certain defendants, including the Company, filed an Application for Rehearing with the Alabama Supreme Court asking the court to reconsider its December 2019 decision. The Alabama Supreme Court denied the application for rehearing. On August 21, 2020, certain defendants, including the Company, petitioned the Supreme Court of the United States for review of the matter. On January 19, 2021, the Supreme Court denied the defendants’ petition for review.

In December 2019, the City of Rome, Georgia (“Rome”) filed a complaint in the Superior Court of Floyd County, Georgia that is similar to the Gadsden Water Board and Centre Water Board complaints, again seeking monetary damages and injunctive relief related to PFCs. Also in December 2019, Jarrod Johnson filed a putative class action in the Superior Court of Floyd County, Georgia purporting to represent all water subscribers with the Rome (Georgia) Water and Sewer Division and/or the Floyd County (Georgia) Water Department and seeking to recover, among other things, damages in the form of alleged increased rates and surcharges incurred by ratepayers for the costs associated with eliminating certain PFCs from their drinking water. In January 2020, defendant 3M Company removed the class action to federal court. The Company filed motions to dismiss in both of these cases. On December 17, 2020, the Superior Court of Floyd County denied the Company’s motion to dismiss in the Rome case. On September 20, 2021, the Northern District of Georgia denied the Company’s motion to dismiss in the class action.

The Company denies all liability in these matters and intends to defend them vigorously.

Putative Securities Class Action

On January 3, 2020, the Company and certain of its executive officers were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Northern District of Georgia (the “Securities Class Action”). The complaint alleges that defendants violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The complaint is filed on behalf of shareholders who purchased shares of the Company’s common stock between April 28, 2017 and July 25, 2019 (“Class Period”). On June 29, 2020, an amended complaint was filed in the Securities Class Action against Mohawk and its CEO Jeff Lorberbaum, based on the same claims and the same Class Period. The amended complaint alleges that the Company (1) engaged in fabricating revenues by attempting delivery to customers that were closed and recognizing these attempts as sales; (2) overproduced product to report higher operating margins and maintained significant inventory that was not salable; and (3) valued certain inventory improperly or improperly delivered inventory with knowledge that it was defective and customers would return it. On October 27, 2020, defendants filed a motion to dismiss the amended complaint. On September 29, 2021, the court issued an order granting in part and denying the defendants’ motion to dismiss the amended complaint. Defendants filed an answer to the amended complaint on November 12, 2021, and fact discovery is ongoing. On January 26, 2022, Lead Plaintiff moved for class certification, to appoint itself as class representative, and for appointment of class counsel. The Company intends to vigorously defend against the claims.

Government Subpoenas

As previously disclosed, on June 25, 2020, the Company received subpoenas issued by the U.S. Attorney’s Office for the Northern District of Georgia (the “USAO”) and the U.S. Securities and Exchange Commission (the “SEC”) relating to matters similar to the allegations of wrongdoing raised by the Securities Class Action. The Company’s Audit Committee, with the assistance of outside legal counsel, conducted a thorough internal investigation into these allegations. The Audit Committee has completed the investigation and concluded that the allegations of wrongdoing are without merit. The USAO and SEC investigations are ongoing, and the Company is cooperating fully with those authorities. The Company will continue to vigorously defend against the allegations of wrongdoing in the Securities Class Action and does not believe they have merit.

Delaware State Court Action

The Company and certain of its present and former executive officers were named as defendants in a putative state securities class action lawsuit filed in the Superior Court of the State of Delaware on January 30, 2020. The complaint alleges that defendants violated Sections 11 and 12 of the Securities Act of 1933. The complaint is filed on behalf of shareholders who purchased shares of the Company’s common stock in Mohawk Industries Retirement Plan 1 and Mohawk Industries Retirement Plan 2 between April 27, 2017 and July 25, 2019. On March 27, 2020, the court granted a temporary stay of the litigation. The stay may be lifted at the close of fact discovery in the related Securities Class Action pending in the United States District Court for the Northern District of Georgia according to the terms set forth in the court’s order to stay litigation. The Company intends to vigorously defend against the claims.

Georgia State Court Investor Actions

The Company and certain of its present and former executive officers were named as defendants in certain investor actions, filed in the State Court of Fulton County of the State of Georgia on April 22, 2021 and April 23, 2021. Four complaints brought on behalf of purported former Mohawk stockholders each allege that defendants defrauded the respective plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action pending in the United States District Court for the Northern District of Georgia. The claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the investor actions seek compensatory and punitive damages. On June 28, 2021, defendants filed motions to dismiss each of the four complaints and answers to the same. On October 5, 2021, all four investor actions were transferred by the State Court of Fulton County to the Metro Atlanta Business Case Division, where fact discovery is ongoing. On January 28, 2022, the Court granted in part and denied in part the motions to dismiss, dismissing the Georgia Securities Act claims as to all defendants, and the negligent misrepresentation claim as to the Company. The Company intends to vigorously defend against the claims.

Separate Federal Actions

The Company and certain of its present and former executive officers were named as defendants in two additional non-class action lawsuits filed in the United States District Court for the Northern District of Georgia on June 22, 2021 and March 25, 2022, respectively. Each complaint is brought on behalf of a group of purported former Mohawk stockholders and alleges that defendants defrauded the plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The federal law claims alleged include violations of Sections 10(b) and 18 of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The state law claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the lawsuit seek compensatory and punitive damages and attorneys’ fees. On December 13, 2021, defendants filed motions to dismiss the June 22, 2021 complaint, which remain pending. The Company intends to vigorously defend against the claims.

Derivative Actions

The Company and certain of its executive officers and directors were named as defendants in certain derivative actions filed in the United States District Court for the Northern District of Georgia on May 18, 2020 and August 6, 2020, respectively (the “NDGA Derivative Actions”), 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.

Belgian Tax Matter

The Company has been in a dispute with the Belgian Tax Authority (the “BTA”) regarding the proper tax treatment of the royalty income arising from intellectual property (“IP”) owned by a Luxembourg subsidiary, Flooring Industries Limited Sarl (“FIL”). The BTA had assessed Unilin BV for the calendar years ending December 2005 through 2010 in an amount totaling €223,321 (including penalties but excluding interest), alleging that Unilin BV inappropriately transferred valuable IP to FIL and income associated with that IP should be taxed in Belgium. Unilin BV challenged all of these assessments and prevailed both in the Court of First Appeal in Bruges and in the Ghent Court of Appeal. In 2021, the BTA indicated it will not appeal these cases to the Supreme Court and has withdrawn all of the assessments for 2005 through 2010. Consequently, all of those tax years are now closed.

Having lost under its original theory, the BTA is in the process of initiating new assessments for later years against FIL rather than Unilin BV. The BTA now alleges that FIL had a taxable presence in Belgium and should be taxed on royalties received in respect of its IP. The BTA issued initial assessments in December 2020 and June 2021 that totaled €371,696 (including penalties but excluding interest) for calendar years ending December 2013 through 2018. However, in November and December of 2021, the BTA cancelled these assessments and in April 2022 issued new assessments that total €186,734 (including penalties but excluding interest) for those years using different calculations. The Company expects an additional assessment for 2019. Under the statute of limitations, the BTA may not assess FIL for any years prior to 2013, and the Company believes that FIL’s statute of limitations is closed for 2013 through 2016, although this will be a point of contention with the BTA. These assessments involve the same underlying facts at issue in the above referenced cases where Unilin BV prevailed at two different levels. Consequently, the Company believes that its tax position in Belgium was correct and will persist with its vigorous defense.

When the BTA issues tax assessments, Belgian tax law requires assurances that the taxes can be paid even while they are being disputed. Consequently, the BTA has placed liens on various properties of Unilin BV to support the original assessments discussed above. Since those assessments have been nullified by the courts, the accompanying liens have been withdrawn. Since FIL does not have property in Belgium, the BTA may require assurances from FIL to support the new assessments for 2013 through 2019. These assurances may take the form of a bond or bank guarantees.

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.

The Company is subject to various federal, state, local and foreign environmental health and safety laws and regulations, including those governing air emissions, wastewater discharges, the use, storage, treatment, recycling and disposal of solid and hazardous materials and finished product, and the cleanup of contamination associated therewith. Because of the nature of the Company’s business, the Company has incurred, and will continue to incur, costs relating to compliance with such laws and regulations. The Company is involved in various proceedings relating to environmental matters and is currently engaged in environmental investigation, remediation and post-closure care programs at certain sites. The Company has provided accruals for such activities that it has determined to be both probable and reasonably estimable. The Company does not expect that the ultimate liability with respect to such activities will have a material adverse effect on its financial condition but acknowledges that it could have a material adverse effect on its results of operations, cash flows or liquidity in a given quarter or year.

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Debt

3 Months Ended

Apr. 02, 2022

Debt Disclosure [Abstract]

Debt

Debt

Senior Credit Facility

On October 18, 2019, the Company amended and restated its $1,800,000 senior credit facility, extending the maturity from March 26, 2022 to October 18, 2024 (as amended and restated, the “Senior Credit Facility”). The Senior Credit Facility marginally reduced the commitment fee and modified certain negative covenants to provide the Company with additional flexibility, including flexibility to make acquisitions and incur additional indebtedness. The restatement also renewed the Company’s option to extend the maturity of the Senior Credit Facility up to two times for an additional one-year period each.

At the Company’s election, revolving loans under the Senior Credit Facility bear interest at annual rates equal to either (a) LIBOR for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 1.00% and 1.75% (1.00% as of April 2, 2022), or (b) the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds rate plus 0.5%, or the Eurocurrency Rate (as defined in the Senior Credit Facility) rate plus 1.0%, plus an applicable margin ranging between 0.00% and 0.75% (0.00% as of April 2, 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 April 2, 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 further amended the Senior Credit Facility to replace LIBOR for euros with the EURIBOR benchmark rate.

The obligations of the Company and its subsidiaries in respect of the Senior Credit Facility are unsecured.

The Senior Credit Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, subsidiary indebtedness, fundamental changes, asset dispositions, dividends and other similar restricted payments, transactions with affiliates, future negative pledges, and changes in the nature of the Company’s business. The limitations contain customary exceptions or, in certain cases, do not apply as long as the Company is in compliance with the financial ratio requirements and is not otherwise in default. The Senior Credit Facility originally required the Company to maintain a Consolidated Interest Coverage Ratio of at least 3.00 to 1.00 and a Consolidated Net Leverage Ratio of no more than 3.75 to 1.00, each as of the last day of any fiscal quarter. However, on May 7, 2020 the Company amended the Senior Credit Facility to temporarily increase the minimum Consolidated Net Leverage Ratio to 4.75 to 1.00 and to increase the amount of certain adjustments to Net Income that are permitted to calculate the ratio. The relief provided by the amendment was in effect for the fiscal quarters ending on September 26, 2020 through (and including) the fiscal quarter ending December 31, 2021.

The Senior Credit Facility also contains customary representations and warranties and events of default, subject to customary grace periods.

In 2019, the Company paid financing costs of $2,264 in connection with the amendment and restatement of its Senior Credit Facility. These costs were deferred and, along with previously unamortized costs of $3,405 are being amortized over the term of the Senior Credit Facility.

As of April 2, 2022, amounts utilized under the Senior Credit Facility included zero borrowings and $19,790 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 $955,644 under the Senior Credit Facility resulting in a total of $844,356 available as of April 2, 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 all rank pari passu with all of the Company’s other unsecured and unsubordinated indebtedness. To the extent that the Company issues European commercial paper notes through a subsidiary of the Company, the notes will be fully and unconditionally guaranteed by the Company.

The Company uses its Senior Credit Facility as a liquidity backstop for its commercial paper programs. Accordingly, the total amount outstanding under all of the Company’s commercial paper programs may not exceed $1,800,000 (less any amounts drawn on the Senior Credit Facility) at any time.

The proceeds from the issuance of commercial paper notes will be available for general corporate purposes. As of April 2, 2022, there were $911,000 outstanding under the U.S. commercial paper program, and the euro equivalent of $24,854 under the European program. The weighted-average interest rate and maturity period for the U.S. program were 0.96% and 30.0 days, respectively. The weighted-average interest rate and maturity period for the European program were (0.24)% and 19.7 days, respectively.

Senior Notes

On June 12, 2020, Mohawk Capital Finance S.A. (“Mohawk Finance”), an indirect wholly-owned finance subsidiary of the Company, completed the issuance and sale of €500,000 aggregate principal amount of 1.750% Senior Notes (“1.750% Senior Notes”) due June 12, 2027. The 1.750% Senior Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with all of Mohawk Finance’s other existing and future senior unsecured indebtedness. The 1.750% Senior Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. Interest on the 1.750% Senior Notes is payable annually in cash on June 12 of each year, commencing on June 12, 2021. The Company paid financing costs of $4,400 in connection with the 1.750% Senior Notes. These costs were deferred and are being amortized over the term of the 1.750% Senior Notes.

On May 14, 2020, the Company completed the issuance and sale of $500,000 aggregate principal amount of 3.625% Senior Notes (“3.625% Senior Notes”) due May 15, 2030. The 3.625% Senior Notes are senior unsecured obligations of the Company and rank pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 3.625% Senior Notes is payable semi-annually in cash on May 15 and November 15 of each year, commencing on November 15, 2020. The Company paid financing costs of $5,476 in connection with the 3.625% Senior Notes. These costs were deferred and are being amortized over the term of the 3.625% Senior Notes.     

On January 31, 2013, the Company issued $600,000 aggregate principal amount of 3.85% Senior Notes (“3.85% Senior Notes”) due February 1, 2023. The 3.85% Senior Notes are senior unsecured obligations of the Company and rank pari passu with all of the Company’s existing and future unsecured indebtedness. Interest on the 3.85% Senior Notes is payable semi-annually in cash on February 1 and August 1 of each year. The Company paid financing costs of $6,000 in connection with the 3.85% Senior Notes. These costs were deferred and are being amortized over the term of the 3.85% Senior Notes.

As defined in the related agreements, the Company’s senior notes contain covenants, representations and warranties and events of default, subject to exceptions, and restrictions on the Company’s financial and business operations, including limitations on liens, restrictions on entering into sale and leaseback transactions, fundamental changes, and a provision allowing the holder of the notes to require repayment upon a change of control triggering event.

The fair values and carrying values of the Company’s debt instruments are detailed as follows:

	At April 2, 2022			At December 31, 2021
	Fair Value		Carrying Value	Fair Value	Carrying Value
1.750% Senior Notes, payable June 12, 2027; interest payable annually	$	553,286	552,303	601,037	566,380
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually	490,125		500,000	538,545	500,000
3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually	606,060		600,000	615,630	600,000
U.S. commercial paper	911,000		911,000	598,000	598,000
European commercial paper	24,854		24,854	15,859	15,859
Finance leases and other	54,825		54,825	53,163	53,163
Unamortized debt issuance costs	(8,118)		(8,118)	(8,617)	(8,617)
Total debt	2,632,032		2,634,864	2,413,617	2,324,785
Less current portion of long term-debt and commercial paper	1,546,463		1,546,463	624,503	624,503
Long-term debt, less current portion	$	1,085,569	1,088,401	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.

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Consolidated Statements of Cash Flows Information

3 Months Ended

Apr. 02, 2022

Supplemental Cash Flow Information [Abstract]

Consolidated Statements of Cash Flows Information

Consolidated Statements of Cash Flows Information

Supplemental cash flow information were as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net cash paid during the periods for:
Interest	$	12,737	24,286
Income taxes	$	52,469	17,994
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses	$	81,633	64,531
Fair value of assets acquired/adjusted in acquisitions	$	(777)	12,734
Liabilities assumed/adjusted in acquisitions	(174)		(6,396)
	$	(951)	6,338

Right of use assets obtained in exchange for lease obligations:
Operating leases	$	21,769	45,569
Finance leases	$	4,710	5,241

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General (Policies)

3 Months Ended

Apr. 02, 2022

Accounting Policies [Abstract]

Interim Reporting

Interim ReportingThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the consolidated financial statements and notes thereto, and the Company’s description of critical accounting policies, included in the Company’s 2021 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Results for interim periods are not necessarily indicative of the results for the year.

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. In periods when the Company uses foreign currency denominated debt to hedge its non-U.S. net investments, 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.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes which simplified the accounting for income taxes in several areas by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes. The Company adopted the new standard on January 1, 2021. The effect of adopting the new standard was not material.

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Revenue from Contracts with Customers (Tables)

3 Months Ended

Apr. 02, 2022

Revenue from Contract with Customer [Abstract]

Summary of segment revenues disaggregated by geography and product line

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the three months ended April 2, 2022 and April 3, 2021:

April 2, 2022	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Geographical Markets
United States	$	585,231	1,035,880	2,786	1,623,897
Europe	245,236		2,132	637,363	884,731
Russia	66,518		23	39,736	106,277
Other	167,772		33,875	199,111	400,758
	$	1,064,757	1,071,910	878,996	3,015,663
Product Categories
Ceramic & Stone	$	1,059,711	8,988	—	1,068,699
Carpet & Resilient	5,046		843,082	244,128	1,092,256
Laminate & Wood	—		219,840	297,137	516,977
Other(1)	—		—	337,731	337,731
	$	1,064,757	1,071,910	878,996	3,015,663

April 3, 2021	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Geographical Markets
United States	$	534,547	936,098	2,419	1,473,064
Europe	207,500		330	558,138	765,968
Russia	62,018		30	27,657	89,705
Other	125,806		32,792	181,691	340,289
	$	929,871	969,250	769,905	2,669,026
Product Categories
Ceramic & Stone	$	927,459	8,322	—	935,781
Carpet & Resilient	2,412		772,079	247,724	1,022,215
Laminate & Wood	—		188,849	253,213	442,062
Other(1)	—		—	268,968	268,968
	$	929,871	969,250	769,905	2,669,026

(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.

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Restructuring, Acquisition and Integration-Related Costs (Tables)

3 Months Ended

Apr. 02, 2022

Restructuring and Related Activities [Abstract]

Schedule of restructuring, acquisition transaction and integration-related costs

Restructuring, acquisition transaction and integration-related costs consisted of the following during the three months ended April 2, 2022 and April 3, 2021:

	Three Months Ended
	April 2 2022		April 3 2021
Cost of sales
Restructuring costs	$	898	10,165
Acquisition integration-related costs	40		17
Restructuring and acquisition integration-related costs	$	938	10,182
Selling, general and administrative expenses
Restructuring costs	$	—	(90)
Acquisition transaction-related costs	696		849
Acquisition integration-related costs	284		243
Restructuring, acquisition transaction and integration-related costs	$	980	1,002

Schedule of restructuring activity

The restructuring activity for the three months ended April 2, 2022 is as follows:

	Severance		Other restructuring costs	Total
Balances as of December 31, 2021	$	1,634	995	2,629
Restructuring costs
Flooring NA Segment	—		105	105
Flooring ROW Segment	—		793	793
Total restructuring costs	—		898	898
Cash payments	(875)		(970)	(1,845)
Non-cash items	(15)		(904)	(919)
Balances as of April 2, 2022	$	744	19	763
Restructuring costs recorded in:
Cost of sales	$	—	898	898
Total restructuring costs	$	—	898	898

The Company expects the remaining severance and other restructuring costs to be paid over the next 12 months.

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Fair Value (Tables)

3 Months Ended

Apr. 02, 2022

Fair Value Disclosures [Abstract]

Schedule of fair value measurements

The following table presents the items measured at fair value as of April 2, 2022 and December 31, 2021:

	Fair Value
	April 2, 2022		December 31, 2021
Short-term investments:
Commercial paper (Level 2)	$	310,000	323,000

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Receivables, net (Tables)

3 Months Ended

Apr. 02, 2022

Receivables [Abstract]

Schedule of net components of receivables

Receivables, net are as follows:

	At April 2, 2022		At December 31, 2021
Customers, trade	$	1,947,020	1,721,584
Income tax receivable	59,365		73,727
Other	111,527		117,823
	2,117,912		1,913,134
Less: allowance for discounts, claims and doubtful accounts	73,214		73,149
Receivables, net	$	2,044,698	1,839,985

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Inventories (Tables)

3 Months Ended

Apr. 02, 2022

Inventory Disclosure [Abstract]

Schedule of net components of inventories

The components of inventories are as follows:

	At April 2, 2022		At December 31, 2021
Finished goods	$	1,738,910	1,677,707
Work in process	164,442		144,004
Raw materials	609,892		569,961
Total inventories	$	2,513,244	2,391,672

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Apr. 02, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The components of goodwill and other intangible assets are as follows:

Goodwill:

	Global Ceramic Segment		Flooring NA Segment	Flooring ROW Segment	Total
Balance as of December 31, 2021
Goodwill	$	1,563,267	874,198	1,497,869	3,935,334
Accumulated impairment losses	(531,930)		(343,054)	(452,441)	(1,327,425)
	1,031,337		531,144	1,045,428	2,607,909
Goodwill adjustments related to acquisitions	—		—	(731)	(731)
Currency translation during the period	(6,765)		—	(21,028)	(27,793)
Balance as of April 2, 2022
Goodwill	1,556,502		874,198	1,476,110	3,906,810
Accumulated impairment losses	(531,930)		(343,054)	(452,441)	(1,327,425)
Balance as of April 2, 2022, net	$	1,024,572	531,144	1,023,669	2,579,385

Schedule of indefinite life assets not subject to amortization

Intangible assets not subject to amortization:

	Tradenames
Balance as of December 31, 2021	$	694,905
Currency translation during the period	(7,171)
Balance as of April 2, 2022	$	687,734

Schedule of intangible assets subject to amortization

Intangible assets subject to amortization:

Gross carrying amounts:	Customer relationships		Patents	Other	Total
Balance as of December 31, 2021	$	680,177	256,336	6,786	943,299
Adjustments related to acquisitions	(36)		—	—	(36)
Currency translation during the period	(8,985)		(6,378)	(143)	(15,506)
Balance as of April 2, 2022	$	671,156	249,958	6,643	927,757
Accumulated amortization:	Customer relationships		Patents	Other	Total
Balance as of December 31, 2021	$	483,748	252,414	2,062	738,224
Amortization during the period	6,961		165	47	7,173
Currency translation during the period	(7,135)		(6,282)	(16)	(13,433)
Balance as of April 2, 2022	$	483,574	246,297	2,093	731,964
Intangible assets subject to amortization, net as of April 2, 2022	$	187,582	3,661	4,550	195,793

Schedule of intangible assets amortization expense

	Three Months Ended
	April 2, 2022		April 3, 2021
Amortization expense	$	7,173	7,498

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Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Apr. 02, 2022

Payables and Accruals [Abstract]

Components of accounts payable and accrued expenses

Accounts payable and accrued expenses are as follows:

	At April 2, 2022		At December 31, 2021
Outstanding checks in excess of cash	$	2,483	3,005
Accounts payable, trade	1,296,066		1,228,621
Accrued expenses	644,161		666,209
Product warranties	41,693		45,215
Accrued interest	19,143		17,940
Accrued compensation and benefits	216,801		256,428
Total accounts payable and accrued expenses	$	2,220,347	2,217,418

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Apr. 02, 2022

Equity [Abstract]

Schedule of accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 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, 2021	$	(959,199)	(7,753)	(966,952)
Current period other comprehensive income (loss)	(82,184)		537	(81,647)
Balance as of April 2, 2022	$	(1,041,383)	(7,216)	(1,048,599)

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Other Expense (Income), net (Tables)

3 Months Ended

Apr. 02, 2022

Other Nonoperating Income (Expense) [Abstract]

Summary of other expense (income), net

Other expense (income), net is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Foreign currency losses (gains), net	$	736	(1,186)
Release of indemnification asset	7,212		—
All other, net	(5,510)		(1,041)
Total other expense (income), net	$	2,438	(2,227)

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Stockholders' Equity (Tables)

3 Months Ended

Apr. 02, 2022

Equity [Abstract]

Schedule of changes in stockholders' equity

The following tables reflect the changes in stockholders’ equity for the three months ended April 2, 2022 and April 3, 2021 (in thousands).

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2021	72,952	$729	$1,911,131	$7,692,064	($966,952)	(7,343)	($215,547)	$6,791	$8,428,216
Shares issued under employee and director stock plans	105	1	(3,268)	—	—	2	52	—	(3,215)
Stock-based compensation expense	—	—	5,655	—	—	—	—	—	5,655
Repurchases of common stock	(2,177)	(21)	—	(306,556)	—	—	—	—	(306,577)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	105	105
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(263)	(263)
Currency translation adjustment	—	—	—	—	(82,184)	—	—	—	(82,184)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	537	—	—	—	537
Net earnings	—	—	—	245,329	—	—	—	—	245,329
April 2, 2022	70,880	$709	$1,913,518	$7,630,837	($1,048,599)	(7,341)	($215,495)	$6,633	$8,287,603

	Total Stockholders’ Equity
	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock		Nonredeemable Noncontrolling Interests	Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
December 31, 2020	77,624	$776	$1,885,142	$7,559,191	($695,145)	(7,346)	($215,648)	$6,842	$8,541,158
Shares issued under employee and director stock plans	113	1	(1,570)	—	—	3	97	—	(1,472)
Stock-based compensation expense	—	—	5,968	—	—	—	—	—	5,968
Repurchases of common stock	(687)	(7)	—	(122,869)	—	—	—	—	(122,876)
Net earnings attributable to noncontrolling interests	—	—	—	—	—	—	—	4	4
Currency translation adjustment on noncontrolling interests	—	—	—	—	—	—	—	(247)	(247)
Currency translation adjustment	—	—	—	—	(160,407)	—	—	—	(160,407)
Prior pension and post-retirement benefit service cost and actuarial gain	—	—	—	—	97	—	—	—	97
Net earnings	—	—	—	236,807	—	—	—	—	236,807
April 3, 2021	77,050	$770	$1,889,540	$7,673,129	($855,455)	(7,343)	($215,551)	$6,599	$8,499,032

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Earnings Per Share (Tables)

3 Months Ended

Apr. 02, 2022

Earnings Per Share [Abstract]

Schedule of earnings per share

A reconciliation of net earnings attributable to Mohawk Industries, Inc. and weighted-average common shares outstanding for purposes of calculating basic and diluted earnings per share is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net earnings attributable to Mohawk Industries, Inc.	$	245,329	236,807
Weighted-average common shares outstanding-basic and diluted:
Weighted-average common shares outstanding—basic	64,686		70,179
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net	284		295
Weighted-average common shares outstanding-diluted	64,970		70,474
Earnings per share attributable to Mohawk Industries, Inc.
Basic	$	3.79	3.37
Diluted	$	3.78	3.36

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Segment Reporting (Tables)

3 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

Summary of segment information

Segment information is as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net sales:
Global Ceramic Segment	$	1,064,757	929,871
Flooring NA Segment	1,071,910		969,250
Flooring ROW Segment	878,996		769,905
Total	$	3,015,663	2,669,026
Operating income (loss):
Global Ceramic Segment	$	100,338	87,804
Flooring NA Segment	95,324		81,298
Flooring ROW Segment	134,650		159,306
Corporate and intersegment eliminations	(9,511)		(10,893)
Total	$	320,801	317,515

	At April 2, 2022		At December 31, 2021
Assets:
Global Ceramic Segment	$	5,240,214	5,160,776
Flooring NA Segment	4,220,757		4,125,960
Flooring ROW Segment	4,413,013		4,361,741
Corporate and intersegment eliminations	512,735		576,040
Total	$	14,386,719	14,224,517

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Debt (Tables)

3 Months Ended

Apr. 02, 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:

	At April 2, 2022			At December 31, 2021
	Fair Value		Carrying Value	Fair Value	Carrying Value
1.750% Senior Notes, payable June 12, 2027; interest payable annually	$	553,286	552,303	601,037	566,380
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually	490,125		500,000	538,545	500,000
3.85% Senior Notes, payable February 1, 2023; interest payable semi-annually	606,060		600,000	615,630	600,000
U.S. commercial paper	911,000		911,000	598,000	598,000
European commercial paper	24,854		24,854	15,859	15,859
Finance leases and other	54,825		54,825	53,163	53,163
Unamortized debt issuance costs	(8,118)		(8,118)	(8,617)	(8,617)
Total debt	2,632,032		2,634,864	2,413,617	2,324,785
Less current portion of long term-debt and commercial paper	1,546,463		1,546,463	624,503	624,503
Long-term debt, less current portion	$	1,085,569	1,088,401	1,789,114	1,700,282

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Consolidated Statements of Cash Flows Information (Tables)

3 Months Ended

Apr. 02, 2022

Supplemental Cash Flow Information [Abstract]

Supplemental cash flow information

Supplemental cash flow information were as follows:

	Three Months Ended
	April 2, 2022		April 3, 2021
Net cash paid during the periods for:
Interest	$	12,737	24,286
Income taxes	$	52,469	17,994
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses	$	81,633	64,531
Fair value of assets acquired/adjusted in acquisitions	$	(777)	12,734
Liabilities assumed/adjusted in acquisitions	(174)		(6,396)
	$	(951)	6,338

Right of use assets obtained in exchange for lease obligations:
Operating leases	$	21,769	45,569
Finance leases	$	4,710	5,241

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General (Details) - 2.00% senior notes due January 14, 2022 $ in Thousands		3 Months Ended
	Oct. 19, 2021 EUR (€)	Apr. 03, 2021 USD ($)	Jun. 09, 2015 EUR (€)
Debt Instrument [Line Items]
Aggregate principal amount of debts | €	€ 500,000,000		€ 500,000,000
Interest rate (as a percent)	2.00%		2.00%
Repayments of senior debt | €	€ 500,000,000
Increase (decrease) in debt value | $		$ 27,047
Increase (decrease) in debt value, net of taxes | $		$ 20,694

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Acquisitions (Details) - USD ($) $ in Thousands			12 Months Ended
	Nov. 02, 2021	Sep. 07, 2021	Dec. 31, 2021	Apr. 02, 2022
Business Acquisition [Line Items]
Goodwill			$ 2,607,909	$ 2,579,385
Flooring ROW Segment
Business Acquisition [Line Items]
Goodwill			1,045,428	$ 1,023,669
Flooring ROW Segment | Flooring ROW Acquisitions
Business Acquisition [Line Items]
Purchase agreement price	$ 46,348	$ 66,334	123,018
Goodwill			54,527
Intangible assets subject to amortization			19,910
Flooring ROW Segment | Other 2021 Acquisitions
Business Acquisition [Line Items]
Goodwill			1,672
Intangible assets subject to amortization			$ 5,596

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Revenue from Contracts with Customers - Narrative (Details) - USD ($)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract liability	$ 74,165,000		$ 65,744,000
Revenue recognized related to contract liabilities	0
Capitalized contract cost	49,042,000		$ 49,644,000
Amortization of capitalized contract costs	$ 12,340,000	$ 15,581,000

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Revenue from Contracts with Customers - Summary of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 3,015,663	$ 2,669,026
Ceramic & Stone
Disaggregation of Revenue [Line Items]
Net sales	1,068,699	935,781
Carpet & Resilient
Disaggregation of Revenue [Line Items]
Net sales	1,092,256	1,022,215
Laminate & Wood
Disaggregation of Revenue [Line Items]
Net sales	516,977	442,062
Other
Disaggregation of Revenue [Line Items]
Net sales	337,731	268,968
United States
Disaggregation of Revenue [Line Items]
Net sales	1,623,897	1,473,064
Europe
Disaggregation of Revenue [Line Items]
Net sales	884,731	765,968
Russia
Disaggregation of Revenue [Line Items]
Net sales	106,277	89,705
Other
Disaggregation of Revenue [Line Items]
Net sales	400,758	340,289
Global Ceramic Segment
Disaggregation of Revenue [Line Items]
Net sales		929,871
Flooring NA Segment
Disaggregation of Revenue [Line Items]
Net sales		969,250
Flooring ROW Segment
Disaggregation of Revenue [Line Items]
Net sales		769,905
Operating segments | Global Ceramic Segment
Disaggregation of Revenue [Line Items]
Net sales	1,064,757	929,871
Operating segments | Global Ceramic Segment | Ceramic & Stone
Disaggregation of Revenue [Line Items]
Net sales	1,059,711	927,459
Operating segments | Global Ceramic Segment | Carpet & Resilient
Disaggregation of Revenue [Line Items]
Net sales	5,046	2,412
Operating segments | Global Ceramic Segment | Laminate & Wood
Disaggregation of Revenue [Line Items]
Net sales	0	0
Operating segments | Global Ceramic Segment | Other
Disaggregation of Revenue [Line Items]
Net sales	0	0
Operating segments | Global Ceramic Segment | United States
Disaggregation of Revenue [Line Items]
Net sales	585,231	534,547
Operating segments | Global Ceramic Segment | Europe
Disaggregation of Revenue [Line Items]
Net sales	245,236	207,500
Operating segments | Global Ceramic Segment | Russia
Disaggregation of Revenue [Line Items]
Net sales	66,518	62,018
Operating segments | Global Ceramic Segment | Other
Disaggregation of Revenue [Line Items]
Net sales	167,772	125,806
Operating segments | Flooring NA Segment
Disaggregation of Revenue [Line Items]
Net sales	1,071,910	969,250
Operating segments | Flooring NA Segment | Ceramic & Stone
Disaggregation of Revenue [Line Items]
Net sales	8,988	8,322
Operating segments | Flooring NA Segment | Carpet & Resilient
Disaggregation of Revenue [Line Items]
Net sales	843,082	772,079
Operating segments | Flooring NA Segment | Laminate & Wood
Disaggregation of Revenue [Line Items]
Net sales	219,840	188,849
Operating segments | Flooring NA Segment | Other
Disaggregation of Revenue [Line Items]
Net sales	0	0
Operating segments | Flooring NA Segment | United States
Disaggregation of Revenue [Line Items]
Net sales	1,035,880	936,098
Operating segments | Flooring NA Segment | Europe
Disaggregation of Revenue [Line Items]
Net sales	2,132	330
Operating segments | Flooring NA Segment | Russia
Disaggregation of Revenue [Line Items]
Net sales	23	30
Operating segments | Flooring NA Segment | Other
Disaggregation of Revenue [Line Items]
Net sales	33,875	32,792
Operating segments | Flooring ROW Segment
Disaggregation of Revenue [Line Items]
Net sales	878,996	769,905
Operating segments | Flooring ROW Segment | Ceramic & Stone
Disaggregation of Revenue [Line Items]
Net sales	0	0
Operating segments | Flooring ROW Segment | Carpet & Resilient
Disaggregation of Revenue [Line Items]
Net sales	244,128	247,724
Operating segments | Flooring ROW Segment | Laminate & Wood
Disaggregation of Revenue [Line Items]
Net sales	297,137	253,213
Operating segments | Flooring ROW Segment | Other
Disaggregation of Revenue [Line Items]
Net sales	337,731	268,968
Operating segments | Flooring ROW Segment | United States
Disaggregation of Revenue [Line Items]
Net sales	2,786	2,419
Operating segments | Flooring ROW Segment | Europe
Disaggregation of Revenue [Line Items]
Net sales	637,363	558,138
Operating segments | Flooring ROW Segment | Russia
Disaggregation of Revenue [Line Items]
Net sales	39,736	27,657
Operating segments | Flooring ROW Segment | Other
Disaggregation of Revenue [Line Items]
Net sales	$ 199,111	$ 181,691

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Restructuring, Acquisition and Integration-Related Costs - Schedule of Restructuring, Acquisition Transaction and Integration-Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 898
Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring costs	898	$ 10,165
Acquisition integration-related costs	40	17
Restructuring, acquisition transaction and integration-related costs	938	10,182
Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	(90)
Acquisition transaction-related costs	696	849
Acquisition integration-related costs	284	243
Restructuring, acquisition transaction and integration-related costs	$ 980	$ 1,002

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Restructuring, Acquisition and Integration-Related Costs - Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Restructuring Reserve [Roll Forward]
Beginning balance	$ 2,629
Restructuring costs	898
Cash payments	(1,845)
Non-cash items	(919)
Ending balance	763
Cost of sales
Restructuring Reserve [Roll Forward]
Restructuring costs	898	$ 10,165
Severance
Restructuring Reserve [Roll Forward]
Beginning balance	1,634
Restructuring costs	0
Cash payments	(875)
Non-cash items	(15)
Ending balance	744
Severance | Cost of sales
Restructuring Reserve [Roll Forward]
Restructuring costs	0
Other restructuring costs
Restructuring Reserve [Roll Forward]
Beginning balance	995
Restructuring costs	898
Cash payments	(970)
Non-cash items	(904)
Ending balance	19
Other restructuring costs | Cost of sales
Restructuring Reserve [Roll Forward]
Restructuring costs	898
Operating segments | Flooring NA Segment
Restructuring Reserve [Roll Forward]
Restructuring costs	105
Operating segments | Flooring ROW Segment
Restructuring Reserve [Roll Forward]
Restructuring costs	793
Operating segments | Severance | Flooring NA Segment
Restructuring Reserve [Roll Forward]
Restructuring costs	0
Operating segments | Severance | Flooring ROW Segment
Restructuring Reserve [Roll Forward]
Restructuring costs	0
Operating segments | Other restructuring costs | Flooring NA Segment
Restructuring Reserve [Roll Forward]
Restructuring costs	105
Operating segments | Other restructuring costs | Flooring ROW Segment
Restructuring Reserve [Roll Forward]
Restructuring costs	$ 793

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Fair Value - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Dec. 31, 2021
Fair value, recurring | (Level 2) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	$ 310,000	$ 323,000

XML

Receivables, net (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Dec. 31, 2021
Receivables [Abstract]
Customers, trade	$ 1,947,020	$ 1,721,584
Income tax receivable	59,365	73,727
Other	111,527	117,823
Receivables, gross	2,117,912	1,913,134
Less: allowance for discounts, claims and doubtful accounts	73,214	73,149
Receivables, net	$ 2,044,698	$ 1,839,985

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Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 1,738,910	$ 1,677,707
Work in process	164,442	144,004
Raw materials	609,892	569,961
Total inventories	$ 2,513,244	$ 2,391,672

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Goodwill and Intangible Assets - Schedule of goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 3,935,334
Accumulated impairment losses, beginning balance	(1,327,425)
Goodwill, net, beginning balance	2,607,909
Goodwill adjustments related to acquisitions	(731)
Currency translation during the period	(27,793)
Goodwill, gross, ending balance	3,906,810
Accumulated impairment losses, ending balance	(1,327,425)
Goodwill, net, ending balance	2,579,385
Global Ceramic Segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	1,563,267
Accumulated impairment losses, beginning balance	(531,930)
Goodwill, net, beginning balance	1,031,337
Goodwill adjustments related to acquisitions	0
Currency translation during the period	(6,765)
Goodwill, gross, ending balance	1,556,502
Accumulated impairment losses, ending balance	(531,930)
Goodwill, net, ending balance	1,024,572
Flooring NA Segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	874,198
Accumulated impairment losses, beginning balance	(343,054)
Goodwill, net, beginning balance	531,144
Goodwill adjustments related to acquisitions	0
Currency translation during the period	0
Goodwill, gross, ending balance	874,198
Accumulated impairment losses, ending balance	(343,054)
Goodwill, net, ending balance	531,144
Flooring ROW Segment
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	1,497,869
Accumulated impairment losses, beginning balance	(452,441)
Goodwill, net, beginning balance	1,045,428
Goodwill adjustments related to acquisitions	(731)
Currency translation during the period	(21,028)
Goodwill, gross, ending balance	1,476,110
Accumulated impairment losses, ending balance	(452,441)
Goodwill, net, ending balance	$ 1,023,669

XML

Goodwill and Intangible Assets - Schedule of indefinite life assets not subject to amortization (Details) - Tradenames $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($)
Indefinite-lived Intangible Assets [Roll Forward]
Balance as of December 31, 2021	$ 694,905
Currency translation during the period	(7,171)
Balance as of April 2, 2022	$ 687,734

XML

Goodwill and Intangible Assets - Schedule of intangible assets subject to amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Dec. 31, 2021
Finite-lived Intangible Assets [Roll Forward]
Intangible assets subject to amortization, beginning balance	$ 943,299
Adjustments related to acquisitions	(36)
Currency translation during the period	(15,506)
Intangible assets subject to amortization, ending balance	927,757
Accumulated amortization, beginning balance	738,224
Amortization during the period	7,173	$ 7,498
Currency translation during the period	(13,433)
Accumulated amortization, ending balance	731,964
Intangible assets subject to amortization, net as of April 2, 2022	195,793		$ 205,075
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Intangible assets subject to amortization, beginning balance	680,177
Adjustments related to acquisitions	(36)
Currency translation during the period	(8,985)
Intangible assets subject to amortization, ending balance	671,156
Accumulated amortization, beginning balance	483,748
Amortization during the period	6,961
Currency translation during the period	(7,135)
Accumulated amortization, ending balance	483,574
Intangible assets subject to amortization, net as of April 2, 2022	187,582
Patents
Finite-lived Intangible Assets [Roll Forward]
Intangible assets subject to amortization, beginning balance	256,336
Adjustments related to acquisitions	0
Currency translation during the period	(6,378)
Intangible assets subject to amortization, ending balance	249,958
Accumulated amortization, beginning balance	252,414
Amortization during the period	165
Currency translation during the period	(6,282)
Accumulated amortization, ending balance	246,297
Intangible assets subject to amortization, net as of April 2, 2022	3,661
Other
Finite-lived Intangible Assets [Roll Forward]
Intangible assets subject to amortization, beginning balance	6,786
Adjustments related to acquisitions	0
Currency translation during the period	(143)
Intangible assets subject to amortization, ending balance	6,643
Accumulated amortization, beginning balance	2,062
Amortization during the period	47
Currency translation during the period	(16)
Accumulated amortization, ending balance	2,093
Intangible assets subject to amortization, net as of April 2, 2022	$ 4,550

XML

Goodwill and Intangible Assets - Schedule of intangible assets amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 7,173	$ 7,498

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Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Outstanding checks in excess of cash	$ 2,483	$ 3,005
Accounts payable, trade	1,296,066	1,228,621
Accrued expenses	644,161	666,209
Product warranties	41,693	45,215
Accrued interest	19,143	17,940
Accrued compensation and benefits	216,801	256,428
Total accounts payable and accrued expenses	$ 2,220,347	$ 2,217,418

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Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($)
Accumulated Other Comprehensive Income Rollforward [Roll Forward]
Beginning balance	$ 8,428,216
Current period other comprehensive income (loss)	(81,647)
Ending balance	8,287,603
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Rollforward [Roll Forward]
Beginning balance	(959,199)
Current period other comprehensive income (loss)	(82,184)
Ending balance	(1,041,383)
Prior pension and post-retirement benefit service cost and actuarial gain (loss)
Accumulated Other Comprehensive Income Rollforward [Roll Forward]
Beginning balance	(7,753)
Current period other comprehensive income (loss)	537
Ending balance	(7,216)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Rollforward [Roll Forward]
Beginning balance	(966,952)
Ending balance	$ (1,048,599)

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Stock-Based Compensation (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]
Number of shares granted in period (in shares)	189,000	173,000
Weighted-average grant-date fair value (in usd per share)	$ 137.99	$ 175.12
Recognized stock-based compensation costs	$ 5,655	$ 5,968
Recognized stock-based compensation costs, net of tax	4,184	$ 4,416
Pre-tax unrecognized compensation expense, net of forfeitures	$ 35,901
Recognized expense over a weighted-average period (years)	2 years 1 month 24 days

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Other Expense (Income), net (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Other Nonoperating Income (Expense) [Abstract]
Foreign currency losses (gains), net	$ 736	$ (1,186)
Release of Indemnification Asset	7,212	0
All other, net	(5,510)	(1,041)
Total other expense (income), net	$ 2,438	$ (2,227)

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 61,448	$ 67,690
Earnings (loss) before income taxes	$ 306,882	$ 304,501
Effective tax rate	20.00%	22.20%

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Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 8,428,216	$ 8,541,158
Shares issued under employee and director stock plans	(3,215)	(1,472)
Stock-based compensation expense	5,655	5,968
Repurchases of common stock	(306,577)	(122,876)
Net earnings attributable to noncontrolling interests	105	4
Currency translation adjustment on non-controlling interests	(263)	(247)
Currency translation adjustment	(82,184)	(160,407)
Prior pension and post-retirement benefit service cost and actuarial gain	537	97
Net earnings	245,329	236,807
Ending balance	8,287,603	8,499,032
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 729	$ 776
Beginning balance (in shares)	72,952	77,624
Shares issued under employee and director stock plans	$ 1	$ 1
Shares issued under employee and director stock plans (in shares)	105	113
Repurchases of common stock	$ (21)	$ (7)
Repurchases of common stock (in shares)	(2,177)	(687)
Ending balance	$ 709	$ 770
Ending balance (in shares)	70,880	77,050
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1,911,131	$ 1,885,142
Shares issued under employee and director stock plans	(3,268)	(1,570)
Stock-based compensation expense	5,655	5,968
Ending balance	1,913,518	1,889,540
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	7,692,064	7,559,191
Repurchases of common stock	(306,556)	(122,869)
Net earnings	245,329	236,807
Ending balance	7,630,837	7,673,129
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(966,952)	(695,145)
Currency translation adjustment	(82,184)	(160,407)
Prior pension and post-retirement benefit service cost and actuarial gain	537	97
Ending balance	(1,048,599)	(855,455)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ (215,547)	$ (215,648)
Beginning balance (in shares)	(7,343)	(7,346)
Shares issued under employee and director stock plans	$ 52	$ 97
Shares issued under employee and director stock plans (in shares)	2	3
Ending balance	$ (215,495)	$ (215,551)
Ending balance (in shares)	(7,341)	(7,343)
Nonredeemable Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 6,791	$ 6,842
Net earnings attributable to noncontrolling interests	105	4
Currency translation adjustment on non-controlling interests	(263)	(247)
Ending balance	$ 6,633	$ 6,599

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Earnings Per Share [Abstract]
Net earnings attributable to Mohawk Industries, Inc.	$ 245,329	$ 236,807
Weighted-average common shares outstanding-basic and diluted:
Weighted-average common shares outstanding-basic (in shares)	64,686	70,179
Add weighted-average dilutive potential common shares-options to purchase common shares and RSUs, net (in shares)	284	295
Weighted-average common shares outstanding-diluted (in shares)	64,970	70,474
Earnings per share attributable to Mohawk Industries, Inc.
Basic (in usd per share)	$ 3.79	$ 3.37
Diluted (in usd per share)	$ 3.78	$ 3.36

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Segment Reporting (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($) segment	Apr. 03, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Segment Reporting Information [Line Items]
Net sales	$ 3,015,663	$ 2,669,026
Operating income (loss)	320,801	317,515
Assets	14,386,719		$ 14,224,517
Global Ceramic Segment
Segment Reporting Information [Line Items]
Net sales		929,871
Flooring NA Segment
Segment Reporting Information [Line Items]
Net sales		969,250
Flooring ROW Segment
Segment Reporting Information [Line Items]
Net sales		769,905
Operating segments | Global Ceramic Segment
Segment Reporting Information [Line Items]
Net sales	1,064,757	929,871
Operating income (loss)	100,338	87,804
Assets	5,240,214		5,160,776
Operating segments | Flooring NA Segment
Segment Reporting Information [Line Items]
Net sales	1,071,910	969,250
Operating income (loss)	95,324	81,298
Assets	4,220,757		4,125,960
Operating segments | Flooring ROW Segment
Segment Reporting Information [Line Items]
Net sales	878,996	769,905
Operating income (loss)	134,650	159,306
Assets	4,413,013		4,361,741
Corporate and intersegment eliminations
Segment Reporting Information [Line Items]
Operating income (loss)	(9,511)	$ (10,893)
Assets	$ 512,735		$ 576,040

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Commitments and Contingencies (Details) € in Thousands			1 Months Ended		9 Months Ended	72 Months Ended
	Oct. 05, 2021 complaint	Apr. 23, 2021 complaint	Dec. 31, 2021 EUR (€)	Jun. 30, 2021 EUR (€)	Mar. 25, 2022 lawsuit	Dec. 31, 2010 EUR (€)
Pending Litigation
Commitments And Contingencies [Line Items]
Number of class action lawsuits | lawsuit					2
Georgia State Court Investor Actions
Commitments And Contingencies [Line Items]
Number of complaints | complaint		4
Georgia State Court Investor Actions | Pending Litigation
Commitments And Contingencies [Line Items]
Number of complaints | complaint	4
Belgium | Foreign tax authority | Tax Years 2005 to 2010
Commitments And Contingencies [Line Items]
Assessment received from Belgian tax authority (in euros) | €						€ 223,321
LUXEMBOURG | Foreign tax authority | 2018
Commitments And Contingencies [Line Items]
Assessment received from Belgian tax authority (in euros) | €			€ 186,734	€ 371,696

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Debt - Senior Credit Facility (Details)		3 Months Ended
	Oct. 18, 2019 USD ($) extension_option	Apr. 02, 2022 USD ($)	May 07, 2020	Dec. 31, 2019 USD ($)
2019 senior secured credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity under credit facility	$ 1,800,000,000
Number of extension options | extension_option	2
Additional maturity period extended	1 year
Commitment fee percentage		0.09%
Unamortized financing costs	$ 3,405,000
Utilized borrowings under credit facility		$ 955,644,000
Available amount under credit facility		844,356,000
2019 senior secured credit facility | Borrowings
Line of Credit Facility [Line Items]
Utilized borrowings under credit facility		0
2019 senior secured credit facility | Standby letters of credit
Line of Credit Facility [Line Items]
Utilized borrowings under credit facility		$ 19,790,000
2019 senior secured credit facility | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.09%
Consolidated interest coverage ratio, at least	3.00
2019 senior secured credit facility | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.20%
Consolidated net leverage ratio, no more than	3.75		4.75
2019 senior secured credit facility | London interbank offered rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)		1.00%
2019 senior secured credit facility | London interbank offered rate (LIBOR) | Minimum
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)	1.00%
2019 senior secured credit facility | London interbank offered rate (LIBOR) | Maximum
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)	1.75%
2019 senior secured credit facility | Federal funds
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)	0.50%
2019 senior secured credit facility | Monthly LIBOR
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)	1.00%	0.00%
2019 senior secured credit facility | Monthly LIBOR | Minimum
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)	0.00%
2019 senior secured credit facility | Monthly LIBOR | Maximum
Line of Credit Facility [Line Items]
Basis spread on debt instrument (as a percent)	0.75%
2019 senior secured credit facility amendment, maturing October 18, 2024
Line of Credit Facility [Line Items]
Unamortized financing costs				$ 2,264,000

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Debt - Commercial Paper (Details) - USD ($)			3 Months Ended
	Jul. 31, 2015	Feb. 28, 2014	Apr. 02, 2022	Dec. 31, 2021	Oct. 18, 2019
Commercial paper | United States
Line of Credit Facility [Line Items]
Maturity period of debt		397 days	29 days 23 hours 45 minutes 36 seconds
Maximum borrowing capacity under credit facility					$ 1,800,000,000
Commercial paper | Europe
Line of Credit Facility [Line Items]
Maturity period of debt	183 days		19 days 16 hours 29 seconds
Carrying value | United States
Line of Credit Facility [Line Items]
Commercial paper			$ 911,000,000	$ 598,000,000
Carrying value | Europe
Line of Credit Facility [Line Items]
Commercial paper			$ 24,854,000	$ 15,859,000
Carrying value | Commercial paper | United States
Line of Credit Facility [Line Items]
Weighted average interest rate on debt (as a percent)			0.96%
Carrying value | Commercial paper | Europe
Line of Credit Facility [Line Items]
Weighted average interest rate on debt (as a percent)			(0.24%)

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Debt - Senior Notes and Term Loan (Details)	Jun. 12, 2020 USD ($)	May 14, 2020 USD ($)	Jan. 31, 2013 USD ($)	Apr. 02, 2022	Jun. 12, 2020 EUR (€)
1.750% senior notes due June 12, 2027
Debt Instrument [Line Items]
Aggregate principal amount of debts | €					€ 500,000,000
Interest rate (as a percent)				1.75%	1.75%
Payment of financing 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%
Payment of financing costs		$ 5,476,000
3.85% senior notes due February 1, 2023
Debt Instrument [Line Items]
Aggregate principal amount of debts			$ 600,000,000
Interest rate (as a percent)			3.85%	3.85%
Payment of financing costs			$ 6,000,000

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Debt - Fair Value and Carrying Value of Debt Instruments (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Dec. 31, 2021	Jun. 12, 2020	May 14, 2020	Jan. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Less current portion of long term-debt and commercial paper	$ 1,546,463	$ 624,503
1.750% senior notes due June 12, 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate (as a percent)	1.75%		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%			3.625%
3.85% senior notes due February 1, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate (as a percent)	3.85%				3.85%
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance leases and other	$ 54,825	53,163
Unamortized debt issuance costs	(8,118)	(8,617)
Total debt	2,632,032	2,413,617
Less current portion of long term-debt and commercial paper	1,546,463	624,503
Long-term debt, less current portion	1,085,569	1,789,114
Fair Value | United States
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial paper	911,000	598,000
Fair Value | Europe
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial paper	24,854	15,859
Fair Value | 1.750% senior notes due June 12, 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	553,286	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	490,125	538,545
Fair Value | 3.85% senior notes due February 1, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	606,060	615,630
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance leases and other	54,825	53,163
Unamortized debt issuance costs	(8,118)	(8,617)
Total debt	2,634,864	2,324,785
Less current portion of long term-debt and commercial paper	1,546,463	624,503
Long-term debt, less current portion	1,088,401	1,700,282
Carrying Value | United States
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial paper	911,000	598,000
Carrying Value | Europe
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial paper	24,854	15,859
Carrying Value | 1.750% senior notes due June 12, 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	552,303	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 due February 1, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	$ 600,000	$ 600,000

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Consolidated Statements of Cash Flows Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Net cash paid during the periods for:
Interest	$ 12,737	$ 24,286
Income taxes	52,469	17,994
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses	81,633	64,531
Fair value of assets acquired/adjusted in acquisitions	(777)	12,734
Liabilities assumed/adjusted in acquisitions	(174)	(6,396)
Noncash investing and financing activities, total	(951)	6,338
Right of use assets obtained in exchange for lease obligations:
Operating leases	21,769	45,569
Finance leases	$ 4,710	$ 5,241