Debt

6 Months Ended

Jul. 04, 2026

Senior Credit Facility

On May 12, 2026, the Company entered into a senior revolving credit agreement (the “Senior Credit Facility”), by and among the Company and certain of its domestic and foreign subsidiaries, as borrowers (the “Borrowers”), certain lenders party thereto from time to time (the “Lenders”), JPMorgan Chase Bank, N.A. and J.P. Morgan SE, as U.S. administrative agent and non-U.S. administrative agent (together, the “Administrative Agent”). Contemporaneously with the entry into the Senior Credit Facility, the Company terminated all outstanding commitments and repaid all outstanding obligations under its existing senior revolving credit facility. The Senior Credit Facility provides for unsecured revolving credit commitments in an initial aggregate amount of up to $1,500.0 million that includes: (i) revolving credit loans up to the maximum amount available under the Senior Credit Facility, (ii) the issuance of letters of credit up to a $125.0 million sublimit, and (iii) swingline loans in an initial aggregate amount up to $150.0 million, with an accordion feature pursuant to which the Borrowers may request to increase the revolving commitments by an additional aggregate amount of up to $600.0 million, subject to the satisfaction of certain conditions. The proceeds of any borrowings under the Senior Credit Facility will be used to (a) refinance the Company’s existing senior revolving credit facility, (b) pay fees, commissions and expenses in connection with the transaction related to the Senior Credit Facility and (c) finance ongoing working capital requirements and other general corporate purposes.

The Senior Credit Facility is scheduled to mature on May 12, 2031, and the Company has the option to extend the maturity of the Senior Credit Facility up to two times for periods not exceeding five years from the then-scheduled maturity date. The Company can terminate and prepay the Senior Credit Facility at any time without payment of any termination or prepayment penalty (other than customary breakage costs).

The Senior Credit Facility is available in United States Dollars and in alternative currencies including Australian Dollars, Canadian Dollars, Euro and Sterling (each, an “Alternative Currency”). At the Company’s election, United States Dollars denominated revolving loans under the Senior Credit Facility bear interest at annual rates equal to (a) a forward-looking term rate based on the secured overnight financing rate for the applicable 1, 3, or 6-month interest period (“Term SOFR”), as selected by the Company, plus an applicable margin ranging from 0.750% per annum to 1.250% per annum (0.88% as of July 4, 2026), or (b) the highest of (i) the prime rate in effect on such date, (ii) the Federal funds effective rate in effect on such day plus 0.50%, and (iii) Term SOFR for a one month tenor in effect on such day plus 1.00% (“Base Rate”) plus an applicable

margin ranging from 0.000% per annum to 0.250% per annum (0.0% as of July 4, 2026). Borrowings in Australian Dollars, Canadian Dollars and Euro bear interest at the Eurocurrency Rate (as defined in the Senior Credit Facility), plus an applicable margin ranging from 0.750% per annum to 1.250% per annum (0.88% as of July 4, 2026). Borrowings in Sterling bear interest based on Daily Simple RFR (as defined in the Senior Credit Facility), plus an applicable margin ranging from 0.750% per annum to 1.250% per annum (0.88% as of July 4, 2026). The Company will also pay a commitment fee to the lenders at a rate ranging from 0.055% per annum to 0.150% per annum (0.07% as of July 4, 2026). The applicable margins and the commitment fee are determined based on whichever of the Company’s Consolidated Net Leverage Ratio (as defined in the Senior Credit Facility) or its senior unsecured debt rating (or if not available, corporate family rating) results in the lower applicable margins and commitment fee (with applicable margins and the commitment fee increasing as that ratio increases or those ratings decline, as applicable).

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

All obligations of the several domestic borrowers are guaranteed by the other domestic borrowers party to the Senior Credit Facility, and all obligations of the several foreign borrowers are guaranteed by the other foreign borrowers and all of the domestic borrowers party to the Senior Credit Facility

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, indebtedness, and changes in the nature of the Company’s business. Many of these limitations are subject to numerous exceptions. The Company is also required to maintain a Consolidated Interest Coverage Ratio (as defined in the Senior Credit Facility) of at least 3.50 to 1.00 as of the last day of any fiscal quarter.

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

Upon the occurrence of certain events of default, the Administrative Agent may, and at the instruction of the Lenders will, among other remedies, suspend the commitments of the Lenders and any obligation of the letter of credit issuers to make letter of credit extensions, terminate the commitments of the Lenders and any obligation of the letter of credit issuers to make letter of credit extensions, and declare the outstanding loans and other obligations under the Senior Credit Facility immediately due and payable.

In 2026, the Company paid financing costs of $2.2 million in connection with its entry into its Senior Credit Facility. The unamortized costs from the previous Senior Credit Facility were written off in the quarter ending July 4, 2026.

As of July 4, 2026, amounts used under the Senior Credit Facility included $0.0 million of borrowings and $0.9 million of standby letters of credit related to various insurance contracts and foreign vendor commitments. Any outstanding borrowings under the Company’s United States and European commercial paper programs reduce the availability of the Senior Credit Facility. Including commercial paper borrowings, the Company has used $167.9 million under the Senior Credit Facility, resulting in a total of $1,332.1 million available as of July 4, 2026.

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 United States and European programs will have maturities ranging up to 397 and 183 days, respectively. None of the commercial paper notes may be voluntarily prepaid or redeemed by the Company and rank pari passu with the Company’s other unsecured and unsubordinated indebtedness. To the extent that the Company issues European commercial paper notes through a subsidiary of the Company, the notes will be fully and unconditionally guaranteed by the Company.

The Company uses its Senior Credit Facility as a liquidity backstop for its commercial paper programs. Accordingly, the total amount outstanding under the Company’s commercial paper programs may not exceed $1,500.0 million (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 July 4, 2026, there was $167.0 million outstanding under the United States commercial paper program, and no amounts outstanding under the European program. The weighted-average interest rate and maturity period for the U.S. program were 3.91% and 6.1 days, respectively.

Senior Notes

On September 18, 2023, the Company completed the issuance and sale of $600.0 million aggregate principal amount of 5.850% Senior Notes (“5.850% Senior Notes”) due September 18, 2028. The 5.850% Senior Notes are senior unsecured obligations of the Company and rank pari passu with the Company’s other existing and future senior unsecured indebtedness. Interest on the 5.850% Senior Notes is payable semi-annually in cash on March 18 and September 18 of each year, commencing on March 18, 2024. The Company paid financing costs of $5.6 million in connection with the 5.850% Senior Notes. These costs were deferred and are being amortized over the term of the 5.850% 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 €500.0 million aggregate principal amount of 1.750% Senior Notes (“1.750% Senior Notes”) due June 12, 2027. The 1.750% Senior Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with Mohawk Finance’s other existing and future senior unsecured indebtedness. The 1.750% Senior Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. Interest on the 1.750% Senior Notes is payable annually in cash on June 12 of each year, commencing on June 12, 2021. The Company paid financing costs of $4.4 million 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 $500.0 million aggregate principal amount of 3.625% Senior Notes (“3.625% Senior Notes”) due May 15, 2030. The 3.625% Senior Notes are senior unsecured obligations of the Company and rank pari passu with the Company’s existing and future unsecured indebtedness. Interest on the 3.625% Senior Notes is payable semi-annually in cash on May 15 and November 15 of each year, commencing on November 15, 2020. The Company paid financing costs of $5.5 million 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.

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:


	July 4, 2026			December 31, 2025

(In millions)	Fair Value		Carrying Value		Fair Value	Carrying Value
1.75% Senior Notes, payable June 12, 2027; interest payable annually	$	571.9	571.9		581.0	587.4
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually	480.0		500.0		485.0	500.0
5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually	615.0		600.0		624.0	600.0




United States commercial paper	167.0		167.0		155.0	155.0
European commercial paper	–		–		111.6	111.6
Senior Credit Facility, payable May 12, 2031	–		–		–	–



Finance leases and other	82.7		82.7		82.8	82.8
Unamortized debt issuance costs	(5.1)		(5.1)		(6.3)	(6.3)
Total debt	1,911.5		1,916.5		2,033.1	2,030.5
Less: current portion of long-term debt and commercial paper	761.4		761.4		289.3	289.3
Long-term debt, less current portion	$	1,150.1	1,155.1		1,743.8	1,741.2

The fair values of the Company’s debt instruments were estimated using observable market 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.