Close

Form 10-Q MOHAWK INDUSTRIES INC For: Apr 02

April 29, 2022 1:03 PM EDT

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
mhk-20220402
0000851968--12-312022Q1FALSEP29DT23H45M36SP19DT16H0M29S00008519682022-01-012022-04-0200008519682022-04-27xbrli:shares00008519682022-04-02iso4217:USD00008519682021-12-31iso4217:USDxbrli:shares00008519682021-01-012021-04-0300008519682020-12-3100008519682021-04-030000851968mhk:TwoPercentSeniorNotesDueJanuaryFourteenTwoThousandTwentyTwoMember2015-06-09iso4217:EURxbrli:pure0000851968mhk:TwoPercentSeniorNotesDueJanuaryFourteenTwoThousandTwentyTwoMember2021-10-190000851968mhk:TwoPercentSeniorNotesDueJanuaryFourteenTwoThousandTwentyTwoMember2021-10-192021-10-190000851968mhk:TwoPercentSeniorNotesDueJanuaryFourteenTwoThousandTwentyTwoMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMembermhk:FlooringROWAcquisitionsMember2021-01-012021-12-310000851968mhk:FlooringROWSegmentMembermhk:FlooringROWAcquisitionsMember2021-09-072021-09-070000851968mhk:FlooringROWSegmentMembermhk:FlooringROWAcquisitionsMember2021-11-022021-11-020000851968mhk:FlooringROWSegmentMembermhk:FlooringROWAcquisitionsMember2021-12-310000851968mhk:Other2021AcquisitionsMembermhk:FlooringROWSegmentMember2021-12-310000851968us-gaap:OperatingSegmentsMembercountry:USmhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembercountry:US2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembercountry:US2022-01-012022-04-020000851968country:US2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMembersrt:EuropeMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembersrt:EuropeMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2022-01-012022-04-020000851968srt:EuropeMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembercountry:RUmhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembercountry:RUmhk:FlooringNASegmentMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembercountry:RU2022-01-012022-04-020000851968country:RU2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMembermhk:OtherGeographicalAreasMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembermhk:OtherGeographicalAreasMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembermhk:OtherGeographicalAreasMember2022-01-012022-04-020000851968mhk:OtherGeographicalAreasMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-04-020000851968mhk:CeramicAndStoneMemberus-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968mhk:CeramicAndStoneMemberus-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2022-01-012022-04-020000851968mhk:CeramicAndStoneMembermhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-04-020000851968mhk:CeramicAndStoneMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMembermhk:CarpetAndResilientMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembermhk:CarpetAndResilientMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembermhk:CarpetAndResilientMember2022-01-012022-04-020000851968mhk:CarpetAndResilientMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:LaminateandWoodMembermhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembermhk:LaminateandWoodMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembermhk:LaminateandWoodMember2022-01-012022-04-020000851968mhk:LaminateandWoodMember2022-01-012022-04-020000851968mhk:OtherProductsMemberus-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968mhk:OtherProductsMemberus-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2022-01-012022-04-020000851968mhk:OtherProductsMembermhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-04-020000851968mhk:OtherProductsMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMembercountry:USmhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembercountry:US2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembercountry:US2021-01-012021-04-030000851968country:US2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMembersrt:EuropeMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembersrt:EuropeMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2021-01-012021-04-030000851968srt:EuropeMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembercountry:RUmhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembercountry:RUmhk:FlooringNASegmentMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembercountry:RU2021-01-012021-04-030000851968country:RU2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMembermhk:OtherGeographicalAreasMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembermhk:OtherGeographicalAreasMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembermhk:OtherGeographicalAreasMember2021-01-012021-04-030000851968mhk:OtherGeographicalAreasMember2021-01-012021-04-030000851968mhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968mhk:FlooringNASegmentMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMember2021-01-012021-04-030000851968mhk:CeramicAndStoneMemberus-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968mhk:CeramicAndStoneMemberus-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2021-01-012021-04-030000851968mhk:CeramicAndStoneMembermhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-04-030000851968mhk:CeramicAndStoneMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMembermhk:CarpetAndResilientMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembermhk:CarpetAndResilientMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembermhk:CarpetAndResilientMember2021-01-012021-04-030000851968mhk:CarpetAndResilientMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:LaminateandWoodMembermhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMembermhk:LaminateandWoodMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMembermhk:LaminateandWoodMember2021-01-012021-04-030000851968mhk:LaminateandWoodMember2021-01-012021-04-030000851968mhk:OtherProductsMemberus-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968mhk:OtherProductsMemberus-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2021-01-012021-04-030000851968mhk:OtherProductsMembermhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-04-030000851968mhk:OtherProductsMember2021-01-012021-04-030000851968us-gaap:CostOfSalesMember2022-01-012022-04-020000851968us-gaap:CostOfSalesMember2021-01-012021-04-030000851968us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-04-020000851968us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-04-030000851968us-gaap:EmployeeSeveranceMember2021-12-310000851968us-gaap:OtherRestructuringMember2021-12-310000851968us-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMembermhk:FlooringNASegmentMember2022-01-012022-04-020000851968us-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMembermhk:FlooringNASegmentMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:EmployeeSeveranceMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMemberus-gaap:OtherRestructuringMember2022-01-012022-04-020000851968us-gaap:EmployeeSeveranceMember2022-01-012022-04-020000851968us-gaap:OtherRestructuringMember2022-01-012022-04-020000851968us-gaap:EmployeeSeveranceMember2022-04-020000851968us-gaap:OtherRestructuringMember2022-04-020000851968us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2022-01-012022-04-020000851968us-gaap:CostOfSalesMemberus-gaap:OtherRestructuringMember2022-01-012022-04-020000851968us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-04-020000851968us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000851968mhk:GlobalCeramicSegmentMember2021-12-310000851968mhk:FlooringNASegmentMember2021-12-310000851968mhk:FlooringROWSegmentMember2021-12-310000851968mhk:GlobalCeramicSegmentMember2022-01-012022-04-020000851968mhk:FlooringNASegmentMember2022-01-012022-04-020000851968mhk:FlooringROWSegmentMember2022-01-012022-04-020000851968mhk:GlobalCeramicSegmentMember2022-04-020000851968mhk:FlooringNASegmentMember2022-04-020000851968mhk:FlooringROWSegmentMember2022-04-020000851968us-gaap:TradeNamesMember2021-12-310000851968us-gaap:TradeNamesMember2022-01-012022-04-020000851968us-gaap:TradeNamesMember2022-04-020000851968us-gaap:CustomerRelationshipsMember2021-12-310000851968us-gaap:PatentsMember2021-12-310000851968us-gaap:OtherCreditDerivativesMember2021-12-310000851968us-gaap:CustomerRelationshipsMember2022-01-012022-04-020000851968us-gaap:PatentsMember2022-01-012022-04-020000851968us-gaap:OtherCreditDerivativesMember2022-01-012022-04-020000851968us-gaap:CustomerRelationshipsMember2022-04-020000851968us-gaap:PatentsMember2022-04-020000851968us-gaap:OtherCreditDerivativesMember2022-04-020000851968us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000851968us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000851968us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000851968us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-04-020000851968us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-04-020000851968us-gaap:AccumulatedTranslationAdjustmentMember2022-04-020000851968us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-020000851968us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-020000851968us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-04-020000851968us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-04-030000851968us-gaap:RestrictedStockUnitsRSUMember2022-04-020000851968us-gaap:CommonStockMember2021-12-310000851968us-gaap:AdditionalPaidInCapitalMember2021-12-310000851968us-gaap:RetainedEarningsMember2021-12-310000851968us-gaap:TreasuryStockMember2021-12-310000851968us-gaap:NoncontrollingInterestMember2021-12-310000851968us-gaap:CommonStockMember2022-01-012022-04-020000851968us-gaap:AdditionalPaidInCapitalMember2022-01-012022-04-020000851968us-gaap:TreasuryStockMember2022-01-012022-04-020000851968us-gaap:RetainedEarningsMember2022-01-012022-04-020000851968us-gaap:NoncontrollingInterestMember2022-01-012022-04-020000851968us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-04-020000851968us-gaap:CommonStockMember2022-04-020000851968us-gaap:AdditionalPaidInCapitalMember2022-04-020000851968us-gaap:RetainedEarningsMember2022-04-020000851968us-gaap:TreasuryStockMember2022-04-020000851968us-gaap:NoncontrollingInterestMember2022-04-020000851968us-gaap:CommonStockMember2020-12-310000851968us-gaap:AdditionalPaidInCapitalMember2020-12-310000851968us-gaap:RetainedEarningsMember2020-12-310000851968us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000851968us-gaap:TreasuryStockMember2020-12-310000851968us-gaap:NoncontrollingInterestMember2020-12-310000851968us-gaap:CommonStockMember2021-01-012021-04-030000851968us-gaap:AdditionalPaidInCapitalMember2021-01-012021-04-030000851968us-gaap:TreasuryStockMember2021-01-012021-04-030000851968us-gaap:RetainedEarningsMember2021-01-012021-04-030000851968us-gaap:NoncontrollingInterestMember2021-01-012021-04-030000851968us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-04-030000851968us-gaap:CommonStockMember2021-04-030000851968us-gaap:AdditionalPaidInCapitalMember2021-04-030000851968us-gaap:RetainedEarningsMember2021-04-030000851968us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030000851968us-gaap:TreasuryStockMember2021-04-030000851968us-gaap:NoncontrollingInterestMember2021-04-03mhk:segment0000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2021-01-012021-04-030000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-04-030000851968mhk:CorporateAndEliminationsMember2022-01-012022-04-020000851968mhk:CorporateAndEliminationsMember2021-01-012021-04-030000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2022-04-020000851968us-gaap:OperatingSegmentsMembermhk:GlobalCeramicSegmentMember2021-12-310000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2022-04-020000851968us-gaap:OperatingSegmentsMembermhk:FlooringNASegmentMember2021-12-310000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2022-04-020000851968mhk:FlooringROWSegmentMemberus-gaap:OperatingSegmentsMember2021-12-310000851968mhk:CorporateAndEliminationsMember2022-04-020000851968mhk:CorporateAndEliminationsMember2021-12-310000851968mhk:GeorgiaStateCourtInvestorActionsMember2021-04-222021-04-23mhk:complaint0000851968us-gaap:PendingLitigationMembermhk:GeorgiaStateCourtInvestorActionsMember2021-10-052021-10-050000851968us-gaap:PendingLitigationMember2021-06-222022-03-25mhk:lawsuit0000851968country:BEmhk:TaxYears2005To2010Memberus-gaap:ForeignCountryMember2005-01-012010-12-310000851968country:LUus-gaap:TaxYear2018Memberus-gaap:ForeignCountryMember2021-06-012021-06-300000851968country:LUus-gaap:TaxYear2018Memberus-gaap:ForeignCountryMember2021-12-012021-12-310000851968mhk:A2019SeniorSecuredCreditFacilityMember2019-10-18mhk:extension_option0000851968mhk:A2019SeniorSecuredCreditFacilityMember2019-10-182019-10-180000851968srt:MinimumMembermhk:A2019SeniorSecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-04-020000851968mhk:A2019SeniorSecuredCreditFacilityMemberus-gaap:FederalFundsEffectiveSwapRateMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMembermhk:MonthlyLiborMember2019-10-182019-10-180000851968srt:MinimumMembermhk:A2019SeniorSecuredCreditFacilityMembermhk:MonthlyLiborMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMembermhk:MonthlyLiborMembersrt:MaximumMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMembermhk:MonthlyLiborMember2022-01-012022-04-020000851968srt:MinimumMembermhk:A2019SeniorSecuredCreditFacilityMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMembersrt:MaximumMember2019-10-182019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMember2022-01-012022-04-020000851968srt:MinimumMembermhk:A2019SeniorSecuredCreditFacilityMember2019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMembersrt:MaximumMember2019-10-180000851968mhk:A2019SeniorSecuredCreditFacilityMembersrt:MaximumMember2020-05-070000851968mhk:A2019SeniorSecuredCreditFacilityAmendmentMaturingOctober182024Member2019-12-310000851968us-gaap:BorrowingsMembermhk:A2019SeniorSecuredCreditFacilityMember2022-04-020000851968mhk:StandbyLettersOfCreditRelatedToVariousInsuranceContractsAndForeignVendorCommitmentsMembermhk:A2019SeniorSecuredCreditFacilityMember2022-04-020000851968mhk:A2019SeniorSecuredCreditFacilityMember2022-04-020000851968us-gaap:CommercialPaperMembercountry:US2014-02-282014-02-280000851968us-gaap:CommercialPaperMembersrt:EuropeMember2015-07-312015-07-310000851968us-gaap:CommercialPaperMembercountry:US2019-10-180000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembercountry:US2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembersrt:EuropeMember2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:CommercialPaperMembercountry:US2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:CommercialPaperMembersrt:EuropeMember2022-04-020000851968mhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMember2020-06-120000851968mhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMember2020-06-122020-06-120000851968mhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMember2020-05-140000851968mhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMember2020-05-142020-05-140000851968mhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMember2013-01-310000851968mhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMember2013-01-312013-01-310000851968mhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMember2022-04-020000851968mhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembermhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMember2022-04-020000851968mhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembermhk:OnePointSevenFivePercentSeniorNotesDueJuneTwelveTwoThousandTwentySevenMember2021-12-310000851968mhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMember2022-04-020000851968mhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembermhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMember2022-04-020000851968mhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembermhk:ThreePointSixTwoFivePercentSeniorNotesDueMayFifteenTwoThousandThirtyMember2021-12-310000851968mhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMember2022-04-020000851968mhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembermhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMember2022-04-020000851968mhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembermhk:ThreePointEightFivePercentSeniorNotesDueFebruaryOneTwoThousandTwentyThreeMember2021-12-310000851968country:USus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-04-020000851968country:USus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembercountry:US2021-12-310000851968us-gaap:EstimateOfFairValueFairValueDisclosureMembersrt:EuropeMember2022-04-020000851968us-gaap:EstimateOfFairValueFairValueDisclosureMembersrt:EuropeMember2021-12-310000851968us-gaap:CarryingReportedAmountFairValueDisclosureMembersrt:EuropeMember2021-12-310000851968us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-04-020000851968us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-04-020000851968us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000851968us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310000851968us-gaap:CommercialPaperMembercountry:US2022-01-012022-04-020000851968us-gaap:CommercialPaperMembersrt:EuropeMember2022-01-012022-04-02

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)
Delaware52-1604305
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
160 S. Industrial Blvd.CalhounGeorgia30701
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (706629-7721
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 ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $.01 par valueMHKNew 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 filerx  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.
Item 1.
Item 2.
Item 3.
Item 4.
Part II.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
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 investments310,000 323,000 
Receivables, net2,044,698 1,839,985 
Inventories2,513,244 2,391,672 
Prepaid expenses447,358 394,649 
Other current assets18,880 20,156 
Total current assets5,564,739 5,238,357 
Property, plant and equipment9,240,329 9,250,587 
Less: accumulated depreciation4,687,717 4,613,722 
Property, plant and equipment, net4,552,612 4,636,865 
Right of use operating lease assets384,740 389,967 
Goodwill2,579,385 2,607,909 
Tradenames687,734 694,905 
Other intangible assets subject to amortization, net195,793 205,075 
Deferred income taxes and other non-current assets421,716 451,439 
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 expenses2,220,347 2,217,418 
Current operating lease liabilities104,823 104,434 
Total current liabilities3,871,633 2,946,355 
Deferred income taxes498,273 495,521 
Long-term debt, less current portion1,088,401 1,700,282 
Non-current operating lease liabilities293,239 297,390 
Other long-term liabilities347,570 356,753 
Total liabilities6,099,116 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 capital1,913,518 1,911,131 
Retained earnings7,630,837 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’ equity8,280,970 8,421,425 
Nonredeemable noncontrolling interests6,633 6,791 
          Total stockholders’ equity8,287,603 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 sales2,213,535 1,877,257 
Gross profit802,128 791,769 
Selling, general and administrative expenses481,327 474,254 
Operating income 320,801 317,515 
Interest expense11,481 15,241 
Other expense (income) net2,438 (2,227)
Earnings before income taxes306,882 304,501 
Income tax expense61,448 67,690 
Net earnings including noncontrolling interests245,434 236,811 
Net earnings attributable to noncontrolling interests105 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—basic64,686 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—diluted64,970 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 tax537 97 
Other comprehensive loss(81,910)(160,557)
Comprehensive income163,524 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:
Restructuring898 4,256 
Depreciation and amortization141,415 151,216 
Deferred income taxes13,989 3,740 
(Gain) loss on disposal of property, plant and equipment(365)2,522 
Stock-based compensation expense5,655 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 expenses39,908 122,748 
Other assets and prepaid expenses(23,259)(34,432)
Other liabilities(1,455)15,090 
Net cash provided by operating activities54,954 259,605 
Cash flows from investing activities:
Additions to property, plant and equipment(129,470)(114,735)
Acquisitions, net of cash acquired951 (6,338)
Purchases of short-term investments(933,000)(698,698)
Redemption of short-term investments946,000 486,489 
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 paper2,990,240 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 activities8,957 (120,183)
Effect of exchange rate changes on cash and cash equivalents13,272 (17,503)
Net change in cash and cash equivalents(38,336)(211,363)
Cash and cash equivalents, beginning of period268,895 768,625 
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, 2022Global Ceramic SegmentFlooring NA SegmentFlooring ROW SegmentTotal
Geographical Markets
United States$585,231 1,035,880 2,786 1,623,897 
Europe245,236 2,132 637,363 884,731 
Russia66,518 23 39,736 106,277 
Other167,772 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 & Resilient5,046 843,082 244,128 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, 2021Global Ceramic SegmentFlooring NA SegmentFlooring ROW SegmentTotal
Geographical Markets
United States$534,547 936,098 2,419 1,473,064 
Europe207,500 330 558,138 765,968 
Russia62,018 30 27,657 89,705 
Other125,806 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 & Resilient2,412 772,079 247,724 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 costs40 17 
  Restructuring and acquisition integration-related costs$938 10,182 
Selling, general and administrative expenses
Restructuring costs$ (90)
Acquisition transaction-related costs696 849 
Acquisition integration-related costs284 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:
SeveranceOther
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, 2022December 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, 2022At December 31, 2021
Customers, trade$1,947,020 1,721,584 
Income tax receivable59,365 73,727 
Other111,527 117,823 
2,117,912 1,913,134 
Less: allowance for discounts, claims and doubtful accounts73,214 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, 2022At December 31, 2021
Finished goods$1,738,910 1,677,707 
Work in process164,442 144,004 
Raw materials609,892 569,961 
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 SegmentFlooring NA SegmentFlooring ROW SegmentTotal
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
Goodwill1,556,502 874,198 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
PatentsOtherTotal
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
PatentsOtherTotal
Balance as of December 31, 2021$483,748 252,414 2,062 738,224 
Amortization during the period6,961 165 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, 2022At December 31, 2021
Outstanding checks in excess of cash$2,483 3,005 
Accounts payable, trade1,296,066 1,228,621 
Accrued expenses644,161 666,209 
Product warranties41,693 45,215 
Accrued interest19,143 17,940 
Accrued compensation and benefits216,801 256,428 
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 adjustmentsPrior 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 asset7,212  
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 StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury StockNonredeemable Noncontrolling InterestsTotal Stockholders’ Equity
 SharesAmountSharesAmount
 
December 31, 202172,952 $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 plans105 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, 202270,880 $709 $1,913,518 $7,630,837 ($1,048,599)(7,341)($215,495)$6,633 $8,287,603 

 Total Stockholders’ Equity
 Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury StockNonredeemable Noncontrolling InterestsTotal Stockholders’ Equity
 SharesAmountSharesAmount
 
December 31, 202077,624 $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 plans113 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, 202177,050 $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—basic64,686 70,179 
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net284 295 
Weighted-average common shares outstanding-diluted64,970 70,474 
Earnings per share attributable to Mohawk Industries, Inc.
Basic$3.79 3.37 
Diluted$3.78 3.36 


16