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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 September 30, 2023
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
MohawkIND Logo - FINAL (002).jpg
 __________________________________________
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: (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 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 October 25, 2023, the latest practicable date, is as follows: 63,682,156 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 STATEMENTS OF OPERATIONS
(Unaudited)
 
 Three Months EndedNine Months Ended
(In thousands, except per share data)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net sales$2,766,186 2,917,539 8,522,837 9,086,390 
Cost of sales2,074,179 2,203,878 6,455,479 6,697,404 
Gross profit692,007 713,661 2,067,358 2,388,986 
Selling, general and administrative expenses549,641 523,479 1,646,156 1,510,076 
Impairment of goodwill and indefinite-lived intangibles876,108 695,771 876,108 695,771 
Operating (loss) income (733,742)(505,589)(454,906)183,139 
Interest expense20,144 13,797 60,138 37,337 
Other income, net(8,551)(1,242)(6,902)(1,622)
Earnings (loss) before income taxes(745,335)(518,144)(508,142)147,424 
Income tax expense14,954 15,569 70,657 155,193 
Net earnings (loss) including noncontrolling interests(760,289)(533,713)(578,799)(7,769)
Less: net earnings (loss) attributable to noncontrolling interests170 256 205 440 
Net earnings (loss) attributable to Mohawk Industries, Inc.$(760,459)(533,969)(579,004)(8,209)
Basic earnings (loss) per share attributable to Mohawk Industries, Inc.$(11.94)(8.40)(9.10)(0.13)
Weighted-average common shares outstanding—basic63,682 63,534 63,648 63,923 
Diluted earnings (loss) per share attributable to Mohawk Industries, Inc.$(11.94)(8.40)(9.10)(0.13)
Weighted-average common shares outstanding—diluted63,682 63,534 63,648 63,923 
See accompanying notes to the Condensed Consolidated Financial Statements.

3
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
 
 Three Months EndedNine Months Ended
(In thousands)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net earnings (loss) including noncontrolling interests$(760,289)(533,713)(578,799)(7,769)
Other comprehensive income (loss):
Foreign currency translation adjustments(185,583)(254,002)(178,932)(302,384)
Prior pension and post-retirement benefit service cost and actuarial gain (loss), net of tax(12)65 (520)672 
Other comprehensive income (loss)(185,595)(253,937)(179,452)(301,712)
Comprehensive income (loss)(945,884)(787,650)(758,251)(309,481)
Less: comprehensive income (loss) attributable to noncontrolling interests(41)(16)(379)439 
Comprehensive income (loss) attributable to Mohawk Industries, Inc.$(945,843)(787,634)(757,872)(309,920)
See accompanying notes to the Condensed Consolidated Financial Statements.
4
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) 
(In thousands, except per share data)September 30, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$518,452 509,623 
Short-term investments— 158,000 
Receivables, net1,943,147 1,904,786 
Inventories2,519,709 2,793,765 
Prepaid expenses500,603 498,222 
Other current assets22,414 30,703 
Total current assets5,504,325 5,895,099 
Property, plant and equipment9,989,442 9,647,779 
Less: accumulated depreciation5,200,617 4,986,601 
Property, plant and equipment, net4,788,825 4,661,178 
Right of use operating lease assets404,477 387,816 
Goodwill1,125,434 1,927,759 
Tradenames683,801 668,328 
Other intangible assets subject to amortization, net170,626 189,620 
Deferred income taxes and other non-current assets461,007 390,632 
Total assets$13,138,495 14,120,432 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt$922,697 840,571 
Accounts payable and accrued expenses2,159,499 2,124,448 
Current operating lease liabilities106,378 105,266 
Total current liabilities3,188,574 3,070,285 
Deferred income taxes347,629 444,660 
Long-term debt, less current portion1,675,590 1,978,563 
Non-current operating lease liabilities314,984 296,136 
Other long-term liabilities340,328 312,874 
Total liabilities5,867,105 6,102,518 
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; 71,020 and 70,875 shares issued and outstanding in 2023 and 2022, respectively
710 709 
Additional paid-in capital1,942,574 1,930,789 
Retained earnings6,830,756 7,409,760 
Accumulated other comprehensive loss(1,293,126)(1,114,258)
Less: treasury stock at cost; 7,338 and 7,341 shares in 2023 and 2022, respectively
215,397 215,491 
Total Mohawk Industries, Inc. stockholders’ equity7,265,517 8,011,509 
Noncontrolling interests5,873 6,405 
          Total stockholders’ equity7,271,390 8,017,914 
Total liabilities and stockholders’ equity$13,138,495 14,120,432 
See accompanying notes to the Condensed Consolidated Financial Statements.
5
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 
 Nine Months Ended
(In thousands)September 30, 2023October 1, 2022
Cash flows from operating activities:
Net earnings (loss) including noncontrolling interests$(578,799)(7,769)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Restructuring77,681 21,673 
Impairment of goodwill and indefinite-lived intangibles876,108 695,771 
Depreciation and amortization476,112 436,449 
Deferred income taxes(121,440)(47,846)
Loss on disposal of property, plant and equipment3,012 591 
Stock-based compensation expense15,733 17,488 
Changes in operating assets and liabilities, net of effects of acquisitions:
Receivables, net9,187 (267,546)
Inventories260,953 (548,711)
Accounts payable and accrued expenses(4,357)162,841 
Other assets and prepaid expenses(4,457)(41,678)
Other liabilities23,174 6,172 
Net cash provided by operating activities1,032,907 427,435 
Cash flows from investing activities:
Additions to property, plant and equipment(372,565)(430,084)
Acquisitions, net of cash acquired(515,405)(157,274)
Purchases of short-term investments(775,000)(2,233,000)
Redemption of short-term investments933,000 2,446,000 
Net cash used in investing activities(729,970)(374,358)
Cash flows from financing activities:
Payments on Senior Credit Facilities(1,052,315)(5,000)
Proceeds from Senior Credit Facilities1,043,936 5,000 
Payments on commercial paper(15,810,415)(12,542,311)
Proceeds from commercial paper14,986,843 12,866,175 
Proceeds from Senior Notes issuance600,000 — 
Net payments of other financing activities(34,318)(16,061)
Debt issuance costs(5,592)(1,621)
Purchase of Mohawk common stock— (307,572)
Change in outstanding checks in excess of cash(1,895)(1,588)
Net cash provided by (used in) financing activities(273,756)(2,978)
Effect of exchange rate changes on cash and cash equivalents(20,352)7,977 
Net change in cash and cash equivalents8,829 58,076 
Cash and cash equivalents, beginning of period509,623 268,895 
Cash and cash equivalents, end of period$518,452 326,971 
See accompanying notes to the Condensed Consolidated Financial Statements.

6
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO THE 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 2022 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.

2. Acquisitions

2023 Acquisitions

During the first quarter of 2023, the Company completed the acquisitions of two ceramic tile businesses in Brazil and Mexico within Global Ceramic for $515,509. The Company’s acquisitions resulted in a goodwill allocation of $85,892. A portion of the goodwill is expected to be deductible for tax purposes. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the acquisitions. These benefits include opportunities to improve the Company’s ceramic performance by leveraging best practices, operational expertise, product innovation and manufacturing assets across the segment. The following table presents the preliminary allocation of the purchase price by major class of assets acquired and liabilities assumed as of the acquisition date.

Amounts recognized
as of the acquisition date
Working capital$95,336 
Property, plant and equipment333,495 
Tradenames38,539 
Customer relationships4,040 
Goodwill85,892 
Long-term debt, including current portion(26,072)
Deferred tax, net(8,460)
522,770 
Less: cash acquired(7,261)
Net consideration transferred (net of cash acquired)$515,509 

The purchase price allocation is preliminary until the Company obtains information necessary to finalize its valuation of the fair value of net assets acquired during the measurement period. The supplemental pro forma information is immaterial to the Company's financial statements.







7
2022 Acquisitions

During the third and fourth quarters of 2022, the Company completed two acquisitions in Flooring North America (“Flooring NA”) for $164,475. The Company’s acquisitions resulted in a goodwill allocation of $55,954 and intangible assets subject to amortization of $19,900. Substantially all of the goodwill is deductible for tax purposes. During the third and fourth quarters of 2022, the Company also completed three acquisitions in Flooring Rest of the World (“Flooring ROW”) for $47,964, which resulted in a goodwill allocation of $14,759 and intangible assets subject to amortization of $3,376. An immaterial amount of goodwill is deductible for tax purposes.

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 Consolidated Balance Sheets. The Company had contract liabilities of $68,932 and $72,572 as of September 30, 2023 and December 31, 2022, 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, 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 and nine months ended September 30, 2023 and October 1, 2022 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 $70,260 and $59,015 as of September 30, 2023 and December 31, 2022, respectively. Straight-line amortization expense recognized during the nine months ended September 30, 2023 and October 1, 2022 related to these capitalized costs were $45,714 and $38,394, respectively.


8
Revenue Disaggregation

In the second quarter of 2023, the Company updated the geographical markets for its disaggregated revenue. The Company added Latin America and combined Russia into Europe to more closely align with its current business. The Company has reflected this change in all historical periods presented. 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 September 30, 2023 and October 1, 2022:

September 30, 2023Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$586,496 931,678 1,286 1,519,460 
Europe258,863 1,370 532,738 792,971 
Latin America201,632 1,346 9,684 212,662 
Other44,681 27,828 168,584 241,093 
Total$1,091,672 962,222 712,292 2,766,186 
Product Categories
Ceramic & Stone$1,081,322 8,767 — 1,090,089 
Carpet & Resilient10,350 757,441 223,209 991,000 
Laminate & Wood— 196,014 222,451 418,465 
Other (1)
— — 266,632 266,632 
Total$1,091,672 962,222 712,292 2,766,186 

October 1, 2022Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$614,460 1,056,596 3,784 1,674,840 
Europe314,412 2,079 544,292 860,783 
Latin America122,723 1,309 7,838 131,870 
Other45,061 29,650 175,335 250,046 
Total$1,096,656 1,089,634 731,249 2,917,539 
Product Categories
Ceramic & Stone$1,089,593 9,642 — 1,099,235 
Carpet & Resilient7,063 842,069 220,320 1,069,452 
Laminate & Wood— 237,923 235,461 473,384 
Other (1)
— — 275,468 275,468 
Total$1,096,656 1,089,634 731,249 2,917,539 
(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.

The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the nine months ended September 30, 2023 and October 1, 2022:

9
September 30, 2023Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$1,794,740 2,831,014 4,787 4,630,541 
Europe829,633 1,662 1,775,624 2,606,919 
Latin America543,963 2,912 24,259 571,134 
Other138,032 81,749 494,462 714,243 
  Total$3,306,368 2,917,337 2,299,132 8,522,837 
Product Categories
Ceramic & Stone$3,276,681 27,267 — 3,303,948 
Carpet & Resilient29,687 2,299,216 466,669 2,795,572 
Laminate & Wood— 590,854 942,921 1,533,775 
Other (1)
— — 889,542 889,542 
  Total$3,306,368 2,917,337 2,299,132 8,522,837 

October 1, 2022Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$1,825,304 3,153,752 10,802 4,989,858 
Europe986,010 5,955 1,904,193 2,896,158 
Latin America367,978 3,467 23,163 394,608 
Other140,690 97,908 567,168 805,766 
  Total$3,319,982 3,261,082 2,505,326 9,086,390 
Product Categories
Ceramic & Stone$3,302,446 28,685 — 3,331,131 
Carpet & Resilient17,536 2,547,184 709,148 3,273,868 
Laminate & Wood— 685,213 836,756 1,521,969 
Other (1)
— — 959,422 959,422 
  Total$3,319,982 3,261,082 2,505,326 9,086,390 
(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.

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 and nine months ended September 30, 2023 and October 1, 2022:

10
Three Months EndedNine Months Ended
September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Cost of sales
Restructuring costs$42,605 30,421 101,225 31,722 
Acquisition integration-related costs55 — 932 349 
  Restructuring and acquisition integration-related costs$42,660 30,421 102,157 32,071 
Selling, general and administrative expenses
Restructuring costs$1,126 2,949 6,929 3,035 
Acquisition transaction-related costs696 481 2,000 1,508 
Acquisition integration-related costs2,598 687 9,779 1,741 
  Restructuring, acquisition transaction and integration-related costs$4,420 4,117 18,708 6,284 

The restructuring activity for the three months ended September 30, 2023 is as follows:
Asset write-
downs and
gains on
disposals		SeveranceOther
restructuring
costs		Total
Balance as of July 1, 2023$— 11,740 — 11,740 
Restructuring costs
Global Ceramic 12,569 2,135 75 14,779 
Flooring NA 24,722 (766)3,367 27,323 
Flooring ROW 383 (335)1,419 1,467 
Corporate— 162 — 162 
Total restructuring costs37,674 1,196 4,861 43,731 
Cash payments— (2,861)(741)(3,602)
Non-cash items(37,674)(181)(4,120)(41,975)
Balances as of September 30, 2023$— 9,894 — 9,894 
Restructuring costs recorded in:
Cost of sales$37,648 1,636 3,321 42,605 
Selling, general and administrative expenses26 (440)1,540 1,126 
Total restructuring costs$37,674 1,196 4,861 43,731 
    

11
The restructuring activity for the nine months ended September 30, 2023 is as follows:
Lease
impairments		Asset write-
downs and
gains on
disposals		SeveranceOther
restructuring
costs		Total
Balances as of December 31, 2022$— — 10,037 — 10,037 
Restructuring costs
Global Ceramic 255 14,702 7,818 118 22,893 
Flooring NA — 30,828 787 21,110 52,725 
Flooring ROW — 30,135 (334)2,573 32,374 
Corporate— — 162 — 162 
Total restructuring costs255 75,665 8,433 23,801 108,154 
Cash payments— — (8,446)(14,865)(23,311)
Non-cash items(255)(75,665)(130)(8,936)(84,986)
Balances as of September 30, 2023$— — 9,894 — 9,894 
Restructuring costs recorded in:
Cost of sales$— 75,516 4,700 21,009 101,225 
Selling, general and administrative expenses255 149 3,733 2,792 6,929 
Total restructuring costs$255 75,665 8,433 23,801 108,154 

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

September 30, 2023December 31, 2022
Short-term investments:
Commercial paper (Level 2)$— 158,000 

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

6. Receivables, net
September 30, 2023December 31, 2022
Customers, trade$1,846,374 1,699,130 
Income tax receivable24,625 60,080 
Other143,513 219,355 
Less: allowance for discounts, claims and doubtful accounts71,365 73,779 
Receivables, net$1,943,147 1,904,786 


12
7. Inventories
September 30, 2023December 31, 2022
Finished goods$1,757,527 1,986,005 
Work in process168,314 160,757 
Raw materials593,868 647,003 
Total inventories$2,519,709 2,793,765 

8. Goodwill and Intangible Assets

The Company performs its annual testing of goodwill and indefinite-lived intangibles in the fourth quarter of each year. Between annual testing dates, the Company monitors factors such as its market capitalization, comparable company market multiples and macroeconomic conditions to identify conditions that could impact the Company’s assumptions utilized in the determination of the estimated fair values of the Company’s reporting units and indefinite-lived intangible assets significantly enough to trigger an impairment.

The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgments and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy approaches. The Company has identified Global Ceramic, Flooring NA and Flooring ROW as its reporting units for the purposes of allocating goodwill and intangibles as well as assessing impairments. The valuation approaches are subject to key judgments and assumptions that are sensitive to change such as judgments and assumptions about appropriate sales growth rates, operating margins, weighted average cost of capital (“WACC”) and comparable company market multiples.

As a result of a decrease in the Company’s market capitalization, macroeconomic conditions and an increase in the WACC, the Company determined that a triggering event occurred requiring goodwill impairment testing for each of its reporting units as of September 30, 2023. The impairment test indicated a pre-tax, non-cash goodwill impairment charge related to all 3 reporting units of $869,115 ($858,090 net of tax) which the Company recorded during the three months ended September 30, 2023.

The Company compared the estimated fair values of its indefinite-lived intangibles to their carrying values and determined that there were impairment charges of $6,994 ($5,181 net of tax) in all 3 reporting units during the three months ended September 30, 2023.

A significant or prolonged deterioration in economic conditions, continued increases in the costs of raw materials and energy combined with an inability to pass these costs on to customers, a further decline in the Company’s market capitalization or comparable company market multiples, projected future cash flows, or increases in the WACC, could impact the Company’s assumptions and require a reassessment of goodwill or indefinite-lived intangible assets for impairment in future periods. Future declines in estimated after tax cash flows, increases in the WACC or a decline in market capitalization could result in an additional indication of impairment in one or more of the Company’s reporting units.

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

Goodwill:
Global CeramicFlooring NAFlooring ROWTotal
Balance as of December 31, 2022 (1)
$339,834 591,985 995,940 1,927,759 
Goodwill adjustments related to acquisitions— (4,888)3,217 (1,671)
Goodwill recognized during the period85,892 — — 85,892 
Impairment charges during the period(422,651)(214,830)(231,634)(869,115)
Currency translation during the period(3,075)— (14,356)(17,431)
Balance as of September 30, 2023$— 372,267 753,167 1,125,434 
(1) Net of accumulated impairment losses of $2,015,939 ($1,220,444 in Global Ceramic, $343,054 in Flooring NA and $452,441 in Flooring ROW).


13
Intangible assets not subject to amortization:    
Tradenames
Balance as of December 31, 2022$668,328 
Intangible assets acquired during the period37,530 
Impairment charges(6,994)
Currency translation during the period(15,063)
Balance as of September 30, 2023$683,801 

Intangible assets subject to amortization:
Customer
relationships		PatentsOtherTotal
Balance as of December 31, 2022
Gross carrying amount$673,586 242,089 8,511 924,186 
Accumulated amortization(493,361)(239,010)(2,195)(734,566)
Net intangible assets subject to amortization180,225 3,079 6,316 189,620 
Balance as of September 30, 2023
Gross carrying amount670,800 239,113 8,514 918,427 
Accumulated amortization(509,162)(236,535)(2,104)(747,801)
Net intangible assets subject to amortization$161,638 2,578 6,410 170,626 

 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Amortization expense$6,975 6,918 21,197 20,917 

9. Accounts Payable and Accrued Expenses
September 30, 2023December 31, 2022
Outstanding checks in excess of cash$911 2,791 
Accounts payable, trade1,082,398 1,094,038 
Accrued expenses741,120 742,099 
Product warranties38,262 38,425 
Accrued interest13,270 8,748 
Accrued compensation and benefits283,538 238,347 
Total accounts payable and accrued expenses$2,159,499 2,124,448 

10. Accumulated Other Comprehensive Income (Loss)
 Foreign currency
translation adjustments		Prior pension and post-
retirement benefit service
 cost and actuarial gain (loss)		Total
Balance as of December 31, 2022$(1,114,629)371 (1,114,258)
Current period other comprehensive income (loss)(178,348)(520)(178,868)
Balance as of September 30, 2023$(1,292,977)(149)(1,293,126)



14
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 1 restricted stock unit (“RSU”) at a weighted average grant-date fair value of $103.07 per unit for the three months ended September 30, 2023. The Company granted 263 RSUs at a weighted average grant-date fair value of $102.09 per unit for the nine months ended September 30, 2023. The Company granted no RSUs for the three months ended October 1, 2022. The Company granted 189 RSUs at a weighted average grant-date fair value of $137.99 per unit for the nine months ended October 1, 2022. The Company recognized stock-based compensation expense related to the issuance of RSUs of $5,349 ($3,958 net of taxes) and $6,179 ($4,572 net of taxes) for the three months ended September 30, 2023 and October 1, 2022, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. The Company recognized stock-based compensation costs related to the issuance of RSUs of $15,733 ($11,642 net of taxes) and $17,488 ($12,941 net of taxes) for the nine months ended September 30, 2023 and October 1, 2022, 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 $23,786 as of September 30, 2023, and will be recognized as expense over a weighted-average period of approximately 1.70 years.

12. Other (Income) Expense, net
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Foreign currency (gains) losses, net$(142)6,032 11,644 6,476 
Release of indemnification asset— — — 7,324 
All other, net(8,409)(7,274)(18,546)(15,422)
Total other (income) expense, net$(8,551)(1,242)(6,902)(1,622)

13. Income Taxes

For the three months ended September 30, 2023, the Company recorded income tax expense of $14,954 on loss before income taxes of $745,335 for an effective tax rate of (2.0)%. For the three months ended October 1, 2022, the Company recorded income tax expense of $15,569 on loss before income taxes of $518,144, for an effective tax rate of (3.0)%. The increase in the effective tax rate was primarily driven by larger losses before income tax and an increase in the impairment of non-deductible goodwill.

For the nine months ended September 30, 2023, the Company recorded income tax expense of $70,657 on loss before income taxes of $(508,142) for an effective tax rate of (13.9)%, as compared to income tax expense of $155,193 on earnings before income taxes of $147,424, for an effective tax rate of 105.3% for the nine months ended October 1, 2022. The decrease in the effective tax rate was primarily driven by a shift from earnings before income taxes to losses before income taxes and an increase in the impairment of non-deductible goodwill.
15
14. Stockholders’ Equity

The following tables reflect the changes in stockholders’ equity for the three months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balance as of July 1, 202371,018 $710 $1,937,320 $7,591,215 ($1,107,742)(7,338)($215,397)$5,914 $8,212,020 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards2 — (96)— — — — — (96)
Stock-based compensation expense— — 5,350 — — — — — 5,350 
Net earnings attributable to noncontrolling interests— — — — — — — 170 170 
Currency translation adjustment on noncontrolling interests— — — — — — — (211)(211)
Currency translation adjustment— — — — (185,372)— — — (185,372)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (12)— — — (12)
Net earnings— — — (760,459)— — — — (760,459)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of July 2, 202270,878 $709 $1,919,742 $7,910,657 ($1,014,999)(7,341)($215,491)$6,320 $8,606,938 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards— — (27)— — — — — (27)
Stock-based compensation expense— — 6,179 — — — — — 6,179 
Repurchases of common stock(3)— — (384)— — — — (384)
Net earnings attributable to noncontrolling interests— — — — — — — 256 256 
Currency translation adjustment on noncontrolling interests— — — — — — — (273)(273)
Purchase of noncontrolling interest, net of taxes— — — — — — — 1 1 
Currency translation adjustment— — — — (253,729)— — — (253,729)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 65 — — — 65 
Net earnings— — — (533,969)— — — — (533,969)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 

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The following tables reflect the changes in stockholders’ equity for the nine months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of December 31, 202270,875 $709 $1,930,789 $7,409,760 ($1,114,258)(7,341)($215,491)$6,405 $8,017,914 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards145 1 (4,001)— — 3 94 — (3,906)
Stock-based compensation expense— — 15,733 — — — — — 15,733 
Net earnings attributable to noncontrolling interests— — — — — — — 205 205 
Currency translation adjustment on noncontrolling interests— — — — — — — (584)(584)
Purchase of noncontrolling interest, net of taxes— — 53 — — — — (153)(100)
Currency translation adjustment— — — — (178,348)— — — (178,348)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (520)— — — (520)
Net earnings— — — (579,004)— — — — (579,004)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of 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 plans, net of shares withheld to pay taxes on employees’ equity awards107 1 (3,297)— — 2 56 — (3,240)
Stock-based compensation expense— — 17,488 — — — — — 17,488 
Repurchases of common stock(2,184)(21)— (307,551)— — — — (307,572)
Net earnings attributable to noncontrolling interests— — — — — — — 440 440 
Currency translation adjustment on noncontrolling interests— — — — — — — (1)(1)
Purchase of noncontrolling interest, net of taxes— — 572 — — — — (926)(354)
Currency translation adjustment— — — (302,383)— — — (302,383)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 672 — — — 672 
Net earnings— — — (8,209)— — — — (8,209)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 


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15. Earnings (Loss) Per Share

Basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings (loss) 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 (loss) attributable to Mohawk Industries, Inc. and weighted-average common shares outstanding for purposes of calculating basic and diluted earnings (loss) per share is as follows:    
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net earnings (loss) attributable to Mohawk Industries, Inc.$(760,459)(533,969)(579,004)(8,209)
Weighted-average common shares outstanding—basic and diluted:
Weighted-average common shares outstanding—basic63,682 63,534 63,648 63,923 
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net(1)
— — — — 
Weighted-average common shares outstanding-diluted63,682 63,534 63,648 63,923 
Earnings (loss) per share attributable to Mohawk Industries, Inc.
Basic$(11.94)(8.40)(9.10)(0.13)
Diluted$(11.94)(8.40)(9.10)(0.13)
(1) Due to the anti-dilutive effect, 252 and 235 shares of common stock equivalents for the three and nine months ended September 30, 2023, respectively, were omitted from the calculation of diluted weighted-average common shares outstanding. Due to the anti dilutive effect, 257 and 246 shares of common stock equivalents for the three and nine months ended October 1, 2022, respectively, were omitted from the calculation of diluted weighted-average common shares outstanding.

16. Segment Reporting

The Company has three reporting segments: Global Ceramic, Flooring NA and Flooring ROW. Global Ceramic designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone 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, residential and commercial contractors and home centers. Flooring NA designs, manufactures, sources and markets its floor covering products, including broadloom carpet, carpet tile, carpet cushion, rugs, laminate, vinyl products, 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 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, residential contractors, commercial contractors and commercial end users. Flooring ROW designs, manufactures, sources, licenses and markets laminate, vinyl products, 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, residential and commercial contractors and commercial end users.

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.
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 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net sales:
Global Ceramic $1,091,672 1,096,656 3,306,368 3,319,982 
Flooring NA 962,222 1,089,634 2,917,337 3,261,082 
Flooring ROW 712,292 731,249 2,299,132 2,505,326 
Total$2,766,186 2,917,539 8,522,837 9,086,390 
Operating income (loss):
Global Ceramic $(355,304)(559,706)(207,953)(305,099)
Flooring NA (166,973)64,672 (131,787)260,026 
Flooring ROW (159,569)45,508 2,590 304,265 
Corporate and intersegment eliminations(51,896)(56,063)(117,756)(76,053)
Total$(733,742)(505,589)(454,906)183,139 

September 30, 2023December 31, 2022
Assets:
Global Ceramic $4,905,861 4,841,310 
Flooring NA 3,911,708 4,299,360 
Flooring ROW 3,857,628 4,275,519 
Corporate and intersegment eliminations463,298 704,243 
Total$13,138,495 14,120,432 



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17. Commitments and Contingencies

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

Perfluorinated Compounds (“PFCs”) Litigation

In April 2023, Shelby County, Alabama and Talladega County, Alabama filed a complaint in the Circuit Court of Talladega County, Alabama against certain manufacturers, suppliers, and users of chemicals containing specific PFCs, including Aladdin Manufacturing Corporation, Aladdin Manufacturing Corporation of Alabama, LLC, Mohawk Carpet, LLC, and Mohawk Industries, Inc. The Counties both seek monetary damages and injunctive relief, claiming that their water supplies contain excessive amounts of PFCs. The defendants removed this case to federal court on May 12, 2023, and the case remains pending.

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 a motion to dismiss. On September 20, 2021, the Northern District of Georgia denied the Company’s motion to dismiss in the class action.

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

Putative Securities Class Action

On January 3, 2020, the Company and certain of its executive officers were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Northern District of Georgia (the “Securities Class Action”). The complaint alleged that defendants violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The complaint was filed on behalf of shareholders who purchased shares of the Company’s common stock between April 28, 2017 and July 25, 2019 (“Class Period”). On June 29, 2020, an amended complaint was filed in the Securities Class Action against Mohawk and its CEO Jeff Lorberbaum, based on the same claims and the same Class Period. The amended complaint alleges that the Company (1) engaged in fabricating revenues by attempting delivery to customers that were closed and recognizing these attempts as sales; (2) overproduced product to report higher operating margins and maintained significant inventory that was not salable; and (3) valued certain inventory improperly or improperly delivered inventory with knowledge that it was defective and customers would return it. On December 13, 2022, the parties reached an agreement in principle to settle the Securities Class Action for $60,000, of which a significant portion is covered by insurance, in exchange for the dismissal and a release of all claims against the defendants (the “Agreement”). The Agreement is without admission of fault or wrongdoing by defendants. Following the final settlement hearing on May 31, 2023, the court entered final approval of the settlement and closed the case on June 1, 2023. The Company continues to believe the allegations in the Securities Class Action were without merit.

Government Subpoenas

As previously disclosed, on June 25, 2020, the Company received subpoenas issued by the U.S. Attorney’s Office for the Northern District of Georgia (the “USAO”) and the U.S. Securities and Exchange Commission (the “SEC”) relating to matters similar to the allegations of wrongdoing raised by the Securities Class Action. The Company’s Audit Committee, with the assistance of outside legal counsel, conducted a thorough internal investigation into these allegations and determined them to be without merit. On September 6, 2023, the SEC staff notified the Company in writing that it does not intend to recommend an enforcement action against the Company. The Company is unaware of any further investigation of these matters by the USAO.


20
Delaware State Court Action

The Company and certain of its present and former executive officers were named as defendants in a putative state securities class action lawsuit filed in the Superior Court of the State of Delaware on January 30, 2020. The complaint alleged that defendants violated Sections 11 and 12 of the Securities Act of 1933. The complaint was filed on behalf of shareholders who purchased shares of the Company’s common stock in Mohawk Industries Retirement Plan 1 and Mohawk Industries Retirement Plan 2 between April 27, 2017 and July 25, 2019. On March 27, 2020, the court granted a temporary stay of the litigation. The stay may be lifted according to the terms set forth in the court’s order to stay litigation. The parties reached an agreement in principle to settle the lawsuit in exchange for the dismissal and a release of all claims against the defendants (the “Settlement Agreement”). The Settlement Agreement, which is subject to court approval, is without admission of fault or wrongdoing by defendants. The Company believes the allegations in the lawsuit are without merit.

Georgia State Court Investor Actions

The Company and certain of its present and former executive officers were named as defendants in certain investor actions, filed in the State Court of Fulton County of the State of Georgia on April 22, 2021, April 23, 2021, and May 11, 2022. Five complaints brought on behalf of purported former Mohawk stockholders each allege that defendants defrauded the respective plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the investor actions seek compensatory and punitive damages. On June 28, 2021, defendants filed motions to dismiss each of the four complaints filed in April 2021 and answers to the same. On October 5, 2021, all four investor actions filed in April 2021 were transferred by the State Court of Fulton County to the Metro Atlanta Business Case Division. On January 28, 2022, the Court granted in part and denied in part the motions to dismiss the four actions filed in April 2021, dismissing the Georgia Securities Act claims as to all defendants, and the negligent misrepresentation claim as to the Company.

On May 19, 2022, the parties in the last-filed action filed a joint motion to transfer the investor action initiated on May 11, 2022 to the Metro Atlanta Business Case Division where the other four actions were and are pending. On August 2, 2022, this motion was granted and the last-filed investor action initiated on May 11, 2022 was transferred to the Metro Atlanta Business Case Division. On September 1, 2022, defendants in the last-filed investor action filed motions to dismiss the complaint filed on May 2022 and answers to the same. On November 16, 2022, plaintiffs in the last-filed investor action voluntarily dismissed the suit. On October 4, 2023, plaintiffs filed Amended Complaints in the remaining four investor actions. The Company intends to vigorously defend against the claims in these actions.

Federal Investor Actions

The Company and certain of its present and former executive officers were named as defendants in three additional non-class action lawsuits filed in the United States District Court for the Northern District of Georgia on June 22, 2021 (the “Maverick Action”), March 25, 2022 (the “Hound Action”), and April 26, 2022 (the “Fir Tree Action,” and collectively, “Federal Investor Actions”), respectively. Each complaint is brought on behalf of one or more purported former Mohawk stockholders and alleges that defendants defrauded the plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The federal law claims alleged include violations of Sections 10(b) and 18 of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The state law claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the lawsuits seek compensatory and punitive damages and attorneys’ fees.

On December 13, 2021, defendants filed motions to dismiss the complaint in the Maverick Action. On July 6, 2022, defendants filed motions to dismiss the complaint in the Hound Action. On July 27, 2022, defendants filed motions to dismiss the complaint in the Fir Tree Action. On August 9, 2022, defendants filed a motion to consolidate all three Federal Investor Actions for pre-trial purposes. On March 31, 2023, the court issued orders in each of the Federal Investor Actions granting in part and denying in part defendants’ motions to dismiss the three Federal Investor Actions, and granting defendants’ motion to consolidate the three Federal Investor Actions for pre-trial purposes. Defendants filed answers to each of the three complaints on April 14, 2023, and fact discovery opened.

21
On October 11, 2023, the parties to the Maverick Action reached an agreement to settle the Maverick Action, in exchange for the dismissal and a release of all claims against the defendants. On October 17, 2023, plaintiffs in the Maverick Action filed a stipulation of voluntary dismissal with prejudice of the Maverick Action. On October 18, 2023 the Court granted dismissal and terminated the case. The Company continues to vigorously defend against the claims asserted in the Hound Action and the Fir Tree Action.

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. On March 22, 2023, the temporary stay of the NDGA Derivative Actions expired, and fact discovery is ongoing. The Company intends to vigorously defend against the claims.

General

The Company believes that adequate provisions for resolution of all contingencies, claims and pending litigation have been made for probable losses that are reasonably estimable. These contingencies are subject to significant uncertainties and the Company is unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that the ultimate outcome of these actions will have a material adverse effect on its financial condition but could have a material adverse effect on its results of operations, cash flows or liquidity in a given quarter or year.

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.


22
18. Debt

Senior Credit Facility

On August 12, 2022, the Company entered into a fourth amendment (the “Amendment”) to its existing senior revolving credit facility (the “Senior Credit Facility”). The Amendment, among other things, (i) extended the maturity of the Senior Credit Facility from October 18, 2024 to August 12, 2027, (ii) renewed the Company’s option to extend the maturity of the Senior Credit Facility up to two times for an additional one-year period each, (iii) increased the Consolidated Interest Coverage Ratio financial maintenance covenant from 3.00:1.00 to 3.50:1.00, (iv) eliminated certain covenants applicable to the Company and its subsidiaries, including, but not limited to, restrictions on dispositions, restricted payments, and transactions with affiliates, and the Consolidated Net Leverage Ratio financial covenant, and (v) increased the amount available under the Senior Credit Facility to $1,950,000 until October 18, 2024, after which the amount available under the Senior Credit Facility will decrease to $1,485,000. The Amendment also permits the Company to increase the commitments under the Senior Credit Facility by an aggregate amount not to exceed $600,000.

At the Company’s election, U.S.-dollar denominated revolving loans under the Senior Credit Facility bear interest at annual rates equal to either (a) SOFR (plus a 0.10% SOFR adjustment) for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 1.00% and 1.75% (1.13% as of September 30, 2023), or (b) the Base Rate (defined as the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds Effective Rate plus 0.5%, or SOFR (plus a 0.10% SOFR adjustment) for a 1 month period rate plus 1.0%), plus an applicable margin ranging between 0.00% and 0.75% (0.13% as of September 30, 2023). At the Company’s election, revolving loans under the Senior Credit Facility denominated in Canadian dollars, Australian dollars, Hong Kong dollars or euros bear interest at annual rates equal to either (a) the applicable benchmark for such currency plus an applicable margin ranging between 1.00% and 1.75% (1.13% as of September 30, 2023), or (b) the Base Rate plus an applicable margin ranging between 0.00% and 0.75% (0.13% as of September 30, 2023). 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 (0.11% as of September 30, 2023). The applicable margins and the commitment fee are determined based on whichever of the Company’s Consolidated Net Leverage Ratio or its senior unsecured debt rating (or if not available, corporate family rating) results in the lower applicable margins and commitment fee (with applicable margins and the commitment fee increasing as that ratio increases or those ratings decline, as applicable). On October 28, 2021, the Company amended the Senior Credit Facility to replace LIBOR for euros with the EURIBOR benchmark rate.

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

The Senior Credit Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, subsidiary indebtedness, fundamental changes, future negative pledges, and changes in the nature of the Company’s business. The limitations contain customary exceptions or, in certain cases, do not apply as long as the Company is in compliance with the financial ratio requirement and is not otherwise in default. As described above, the Consolidated Net Leverage Ratio financial covenant was eliminated on August 12, 2022.

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

In 2022, the Company paid financing costs of $1,879 in connection with the Amendment of its Senior Credit Facility. These costs were deferred and, along with previously unamortized costs of $2,663, are being amortized over the term of the Senior Credit Facility.

As of September 30, 2023, amounts utilized under the Senior Credit Facility included zero borrowings and $746 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. The Company has utilized $746 under the Senior Credit Facility, resulting in a total of $1,949,254 available as of September 30, 2023.


23
Commercial Paper

On February 28, 2014 and July 31, 2015, the Company established programs for the issuance of unsecured commercial paper in the United States and Eurozone capital markets, respectively. Commercial paper issued under the U.S. and European programs will have maturities ranging up to 397 and 183 days, respectively. None of the commercial paper notes may be voluntarily prepaid or redeemed by the Company and rank pari passu with the Company’s other unsecured and unsubordinated indebtedness. To the extent that the Company issues European commercial paper notes through a subsidiary of the Company, the notes will be fully and unconditionally guaranteed by the Company.

The Company uses its Senior Credit Facility as a liquidity backstop for its commercial paper programs. Accordingly, the total amount outstanding under the Company’s commercial paper programs may not exceed $1,950,000 (less any amounts drawn on the Senior Credit Facility) at any time.

The proceeds from the issuance of commercial paper notes will be available for general corporate purposes. As of September 30, 2023, there was zero outstanding under the U.S. commercial paper program, and the European program.     

Senior Notes

On September 18, 2023, the Company completed the issuance and sale of $600,000 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 $5,592 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 €500,000 aggregate principal amount of 1.750% Senior Notes (“1.750% Senior Notes”) due June 12, 2027. The 1.750% Senior Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with Mohawk Finance’s other existing and future senior unsecured indebtedness. The 1.750% Senior Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. Interest on the 1.750% Senior Notes is payable annually in cash on June 12 of each year, commencing on June 12, 2021. The Company paid financing costs of $4,400 in connection with the 1.750% Senior Notes. These costs were deferred and are being amortized over the term of the 1.750% Senior Notes.

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

On January 31, 2013, the Company issued $600,000 aggregate principal amount of 3.85% Senior Notes (“3.85% Senior Notes”) due February 1, 2023. The 3.85% Senior Notes were senior unsecured obligations of the Company and ranked pari passu with the Company’s existing and future unsecured indebtedness. Interest on the 3.85% Senior Notes was payable semi-annually in cash on February 1 and August 1 of each year. The Company paid financing costs of $6,000 in connection with the 3.85% Senior Notes. These costs were deferred and were amortized over the term of the 3.85% Senior Notes. On November 1, 2022, the Company redeemed at par all of the 3.85% Senior Notes.

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


24
Term Loan
    
On August 12, 2022, the Company and its indirect wholly-owned subsidiary, Mohawk International Holdings S.à r.l. (“Mohawk International”), entered into an agreement that provides for a delayed draw term loan facility (the “Term Loan Facility”), consisting of borrowings of up to $575,000 and €220,000. On October 3, 2022, an additional $100,000 of borrowing capacity was added to the Term Loan Facility. The Term Loan Facility could be drawn upon in up to two advances on any business day on or before December 31, 2022, with the proceeds being used for funding working capital and general corporate purposes. On October 31, 2022 and December 6, 2022, the Company made draws of $675,000 and €220,000, respectively. The Company must pay the outstanding principal amount of the Term Loan Facility, plus accrued and unpaid interest, not later than the maturity date of August 12, 2024. The Company may prepay all or a portion of the Term Loan Facility, plus accrued and unpaid interest, from time to time, without premium or penalty.

At the Company’s election, U.S. dollar-denominated loans under the Term Loan Facility bear interest at an annual rate equal to either (a) SOFR (plus a 0.10% SOFR adjustment) for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 0.825% and 1.50% (0.900% as of September 30, 2023), determined based upon the Company’s consolidated net leverage ratio, or (b) the base rate (defined as the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds Effective Rate plus 0.5%, and SOFR (plus a 0.10% SOFR adjustment) for a 1 month period plus 1.0%) plus an applicable margin ranging between 0.00% and 0.50% (0.00% as of September 30, 2023), determined based upon the Company’s consolidated net leverage ratio. Euro-denominated loans under the Term Loan Facility bear interest at an annual rate equal to EURIBOR for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 0.825% and 1.50% (0.900% as of September 30, 2023), determined based upon the Company’s consolidated net leverage ratio.

In 2022, the Company paid financing costs of $664 in connection with the Term Loan Facility. These costs were deferred and are being amortized over the term of the Term Loan Facility.

The obligations of the Company and its subsidiaries in respect of the Term Loan Facility are unsecured.

The Term Loan Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, indebtedness, fundamental changes, and changes in the nature of the Company’s business. Many of these limitations are subject to numerous exceptions. The Company is also required to maintain a Consolidated Interest Coverage Ratio of at least 3.5 to 1.0 as of the last day of any fiscal quarter.

The Term Loan Facility also contains customary representations and warranties.

The Term Loan Facility contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company. Upon the occurrence of an event of default, the outstanding obligations under the Term Loan Facility may be accelerated and become due and payable immediately. In addition, if certain change of control events occur with respect to the Company, the Company is required to repay the loans outstanding under the Term Loan Facility.

The fair values and carrying values of the Company’s debt instruments are detailed as follows:
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 September 30, 2023December 31, 2022
 Fair ValueCarrying
Value		Fair ValueCarrying
Value
1.750% Senior Notes, payable June 12, 2027; interest payable annually
$484,591 528,597 482,139 535,103 
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually
436,905 500,000 431,605 500,000 
5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually
596,400 600,000 — — 
U.S. commercial paper— — 785,998 785,998 
European commercial paper— — 42,808 42,808 
U.S. Term Loan Facility675,000 675,000 675,000 675,000 
European Term Loan Facility232,583 232,583 235,445 235,445 
Finance leases and other73,718 73,718 52,050 52,050 
Unamortized debt issuance costs(11,611)(11,611)(7,270)(7,270)
Total debt2,487,586 2,598,287 2,697,775 2,819,134 
Less current portion of long term-debt and commercial paper922,697 922,697 840,571 840,571 
Long-term debt, less current portion$1,564,889 1,675,590 1,857,204 1,978,563 

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.

19. Supplemental Cash Flow Information
Nine Months Ended
September 30, 2023October 1, 2022
Net cash paid during the periods for:
Interest$70,757 50,627 
Income taxes$128,607 193,895 
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses$88,020 82,250 
ROU assets obtained in exchange for lease obligations:
Operating leases$111,895 97,473 
Finance leases$25,658 11,332 




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

Overview

During the past three decades, the Company has grown significantly. Its current geographic breadth and diverse product offering are reflected in three reporting segments: Global Ceramic, Flooring North America (“Flooring NA”) and Flooring Rest of the World (“Flooring ROW”). Global Ceramic 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, residential and commercial contractors and home centers. Flooring NA designs, manufactures, sources and markets its floor covering products, including broadloom carpet, carpet tile, carpet cushion, rugs, laminate, vinyl products, 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 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, residential contractors, commercial contractors and commercial end users. Flooring ROW designs, manufactures, sources, licenses and markets laminate, vinyl products, 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, residential and commercial contractors and commercial end users.

Mohawk is a significant supplier of every major flooring category with manufacturing operations in 19 nations and sales in approximately 170 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 Australia, Brazil, Malaysia, Mexico, New Zealand, Russia 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 and geopolitical events. The Company may continue to see fluctuating demand across a number of its markets due to higher interest rates, the prolonged impact of consumer inflation, reduced consumer and homebuilder confidence, tightening loan requirements and other factors. In October 2023, attacks against the Israeli people perpetuated by Hamas extremists led to the State of Israel taking military action in Gaza. At this time, the impact of the situation in the Middle East is evolving. A prolonged and more expansive conflict in the region could escalate oil and petroleum-based chemical prices as well as lead to the introduction of sanctions or transportation barriers, though the extent of the conflict’s impact on the Company’s business and results of operations, as well as the global economy, cannot be predicted. In addition, as a result of ongoing Russian military actions in Ukraine, the Company has experienced supply chain disruption of raw materials sourced from Ukraine (primarily clay), as well as other materials and spare parts needed in the Company’s operations. The Company has also been impacted by global increases in the cost of natural gas, oil and oil-based raw materials and chemicals that were among the broader consequences of Russia’s actions. The United States, the European Union and other governments have imposed and extended sanctions on Russia as well as on certain individuals and financial institutions and have proposed the use of broader economic sanctions. Russia also imposed reciprocal sanctions against the United States and the European Union. Since the first quarter of 2022, 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 United States and countries in which the Company operates; 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.

During 2022, rapid cost escalations in materials, energy, transportation and labor impacted the Company’s profitability across all segments, and high inflation and rising interest rates affected new home construction and residential remodeling in most of the Company’s markets. As consumers faced a higher cost of living, discretionary spending – including flooring purchases – declined; and, as a result, the Company’s customers reduced inventories, which has continued through the third quarter of 2023. Despite multiple pricing actions, improved product mix; productivity gains and cost containment measures, the Company did not completely offset inflation in 2023. Recently, material and energy prices have declined, which will benefit the Company’s future results as the costs flow through the statement of operations. To further address energy price volatility, the Company has invested in renewable energy initiatives, which provide lower cost power to its facilities. During 2023, energy from the Company’s biomass plants lowered its cost and benefited its performance. During 2023 and 2022, the Company took actions to enhance future performance including facility and product rationalizations, restructuring initiatives and workforce reductions. The Company has continued to reduce costs across the enterprise by enhancing productivity, streamlining processes, controlling administrative expenses and executing restructuring actions. The Company anticipates these global actions will deliver annual savings of approximately $135 million, with an estimated cost of approximately $215 million.
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The Company believes it is well positioned with a strong balance sheet. Based on its current liquidity and available credit, the Company is in a position to finance internal investments, acquisitions and/or additional stock purchases and pay current debt as it becomes due. For information on risks that could impact the Company’s results, please refer to Risk Factors in Part I, Item 1A in the Company’s 2022 Annual Report filed on Form 10-K.

During the first quarter of 2023, the Company acquired two ceramic tile businesses in Brazil and Mexico. During 2022, the Company completed five small, bolt-on acquisitions: a wood veneer plant in Romania; a sheet vinyl producer in Poland; a mezzanine flooring manufacturer in Germany; a nonwoven carpet and rug producer in the U.S.; and a commercial flooring trim and accessories business in the U.S.

In 2023, the Company plans to invest approximately $600 million in new and existing projects, cost reduction initiatives, investments to upgrade equipment in Brazil and Mexico from recent acquisitions and previously initiated expansion projects and general maintenance across the business. The primary investment areas include the Company’s LVT portfolio to upgrade its product offering and improve profitability; premium waterproof laminate in North America and Europe; and quartz countertop and porcelain slab expansion in North America and Europe, respectively.

For the three months ended September 30, 2023, the net loss attributable to the Company was $760.5 million compared to the net loss attributable to the Company of $534.0 million for the three months ended October 1, 2022. The change was primarily attributable to higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles; the unfavorable net impact of price and product mix; lower sales volume; the unfavorable net impact of foreign exchange rates; higher restructuring, acquisition and integration-related, and other costs and higher interest expense. The unfavorable impact of the aforementioned items was partially offset by lower inflation; productivity gains and lower legal settlements, reserves and fees. The Company believes that a number of circumstances may influence trends in 2023, including the impact of inflation and material availability due to disruptions in the global supply chain, but the extent and duration of such impact cannot be predicted.

For the nine months ended September 30, 2023, the net loss attributable to the Company was $579.0 million compared to the net loss attributable to the Company of $8.2 million for the nine months ended October 1, 2022. The change was primarily attributable to lower sales volume; higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles; higher restructuring, acquisition and integration-related and other costs; higher inflation; the unfavorable impact of temporary plant shutdowns; higher legal settlements, reserves and fees; the unfavorable net impact of foreign exchange rates; higher interest expense and higher costs associated with investments in new product development and marketing costs. The unfavorable impact of the aforementioned items was partially offset by lower taxes due to decreased earnings in 2023 compared to the prior year and an increase in the impairment of non-deductible goodwill; productivity gains and the favorable net impact of price and product mix. The Company believes that a number of circumstances may influence trends in 2023, including the impact of inflation and material availability due to disruptions in the global supply chain, but the extent and duration of such impact cannot be predicted.

For the nine months ended September 30, 2023, the Company generated $1,032.9 million of cash from operating activities. As of September 30, 2023, the Company had cash and cash equivalents of $518.5 million, substantially all of which was held in the United States.


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Results of Operations

Quarter Ended September 30, 2023, as compared with Quarter Ended October 1, 2022

Net sales

Net sales for the three months ended September 30, 2023 were $2,766.2 million compared to net sales of $2,917.5 million for the three months ended October 1, 2022. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $133 million; lower legacy sales volume of approximately $102 million; the unfavorable net impact of foreign exchange rates of approximately $11 million and fewer shipping days for the quarter ended September 30, 2023 of approximately $2 million, partially offset by higher sales volume attributable to acquisitions of approximately $97 million.

Global Ceramic—Net sales for the three months ended September 30, 2023 were $1,091.7 million compared to net sales of $1,096.7 million for the three months ended October 1, 2022. The change was primarily attributable to lower legacy sales volume of approximately $42 million; the unfavorable net impact of price and product mix of approximately $24 million; the unfavorable net impact of foreign exchange rates of approximately $19 million and fewer shipping days for the quarter ended September 30, 2023 of approximately $2 million, partially offset by higher sales volume attributable to acquisitions of approximately $83 million.

Flooring NA—Net sales for the three months ended September 30, 2023 were $962.2 million compared to net sales of $1,089.6 million for the three months ended October 1, 2022. The change was primarily attributable to lower legacy sales volume of approximately $75 million and the unfavorable net impact of price and product mix of approximately $57 million, partially offset by higher sales volume attributable to acquisitions of approximately $5 million.

Flooring ROW—Net sales for the three months ended September 30, 2023 were $712.3 million compared to net sales of $731.2 million for the three months ended October 1, 2022. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $52 million, partially offset by higher legacy sales volume of approximately $15 million; higher sales volume attributable to acquisitions of approximately $10 million and the favorable net impact of foreign exchange rates of approximately $8 million.

Gross profit

Gross profit for the three months ended September 30, 2023 was $692.0 million compared to gross profit of $713.7 million for the three months ended October 1, 2022. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $108 million; lower sales volume of approximately $24 million; the unfavorable net impact of foreign exchange rates of approximately $18 million and higher restructuring, acquisition and integration-related, and other costs of approximately $11 million, partially offset by lower inflation of approximately $120 million; productivity gains of approximately $14 million and the favorable impact of fewer temporary plant shutdowns of approximately $1 million.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months ended September 30, 2023 were $549.6 million compared to $523.5 million for the three months ended October 1, 2022. The change was primarily attributable to the unfavorable net impact of acquired businesses of approximately $10 million; lower productivity of approximately $9 million, with increased spending on customer support, samples and marketing initiatives; higher inflation of approximately $8 million and the unfavorable net impact of foreign exchange rates of approximately $2 million, partially offset by lower legal settlements, reserves and fees of approximately $2 million and the favorable net impact of price and product mix of approximately $2 million.



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Impairment of goodwill and indefinite-lived intangibles

Impairment of goodwill and indefinite-lived intangibles for the three months ended September 30, 2023 was $876.1 million compared to impairment of goodwill and indefinite-lived intangibles of $695.8 million for the three months ended October 1, 2022. As a result of a decrease in the Company’s market capitalization, a higher WACC and macroeconomic conditions, the Company performed interim impairment tests of its goodwill and indefinite-lived intangible assets, which resulted in the impairment charges.

Operating income (loss)

Operating loss for the three months ended September 30, 2023 was $733.7 million compared to operating loss of $505.6 million for the three months ended October 1, 2022. The change was primarily attributable to higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $180 million; the unfavorable net impact of price and product mix of approximately $106 million; lower sales volume of approximately $34 million; the unfavorable net impact of foreign exchange rates of approximately $20 million and higher restructuring, acquisition and integration-related, and other costs of approximately $11 million, partially offset by lower inflation of approximately $112 million; productivity gains of approximately $5 million and lower legal settlements, reserves and fees of approximately $2 million.

Global Ceramic—Operating loss was $355.3 million for the three months ended September 30, 2023 compared to operating loss of $559.7 million for the three months ended October 1, 2022. The change was primarily attributable to lower impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $263 million and productivity gains of approximately $15 million, partially offset by the unfavorable net impact of price and product mix of approximately $25 million; higher restructuring, acquisition and integration-related, and other costs of approximately $14 million; the unfavorable impact of temporary plant shutdowns of approximately $14 million; lower sales volume of approximately $12 million and the unfavorable net impact of foreign exchange rates of approximately $10 million.

Flooring NA—Operating loss was $167.0 million for the three months ended September 30, 2023 compared to operating income of $64.7 million for the three months ended October 1, 2022. The change was primarily attributable to higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $214 million; the unfavorable net impact of price and product mix of approximately $44 million; lower sales volume of approximately $21 million; lower productivity of approximately $8 million, in part due to the underutilization of plant assets; higher restructuring, acquisition and integration-related, and other costs of approximately $6 million and higher legal settlements, reserves and fees of approximately $2 million, partially offset by lower inflation of approximately $56 million and the favorable impact of fewer temporary plant shutdowns of approximately $5 million.

Flooring ROW—Operating loss was $159.6 million for the three months ended September 30, 2023 compared to operating income of $45.5 million for the three months ended October 1, 2022. The change was primarily attributable to higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $229 million; the unfavorable net impact of price and product mix of approximately $38 million; the unfavorable net impact of foreign exchange rates of approximately $10 million and lower productivity of approximately $2 million, in part due to the underutilization of plant assets, partially offset by lower inflation of approximately $54 million; the favorable impact of fewer temporary plant shutdowns of approximately $10 million and lower restructuring, acquisition and integration-related, and other costs of approximately $9 million.

Interest expense

Interest expense was $20.1 million for the three months ended September 30, 2023 compared to interest expense of $13.8 million for the three months ended October 1, 2022. The change was primarily attributable to a significant increase in interest rates, as well as increased borrowings due to the acquisitions made in 2022 and the first quarter of 2023.

Other (income) expense, net

Other income, net was $8.6 million for the three months ended September 30, 2023 compared to other income, net of $1.2 million for the three months ended October 1, 2022. The change was primarily attributable to the favorable net impact of foreign exchange rates of approximately $6 million.


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Income tax expense

For the three months ended September 30, 2023, the Company recorded income tax expense of $15.0 million on a loss before income taxes of $745.3 million, for an effective tax rate of (2.0)%. For the three months ended October 1, 2022, the Company recorded income tax expense of $15.6 million on a loss before income taxes of $518.1 million, for an effective tax rate of (3.0)%. The change in the effective tax rate was primarily driven by a larger loss before income tax and an increase in the impairment of non-deductible goodwill.

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Nine Months Ended September 30, 2023, as compared with Nine Months Ended October 1, 2022

Net sales

Net sales for the nine months ended September 30, 2023 were $8,522.8 million compared to net sales of $9,086.4 million for the nine months ended October 1, 2022. The change was primarily attributable to lower legacy sales volume of approximately $767 million; the unfavorable net impact of foreign exchange rates of approximately $62 million; fewer shipping days for the nine months ended September 30, 2023 of approximately $19 million and the unfavorable net impact of price and product mix of approximately $18 million, partially offset by higher sales volume attributable to acquisitions of approximately $306 million.

Global Ceramic—Net sales for the nine months ended September 30, 2023 were $3,306.4 million compared to net sales of $3,320.0 million for the nine months ended October 1, 2022. The change was primarily attributable to lower legacy sales volume of approximately $265 million; the unfavorable net impact of foreign exchange rates of approximately $25 million and fewer shipping days for the nine months ended September 30, 2023 of approximately $6 million, partially offset by higher sales volume attributable to acquisitions of approximately $213 million and the favorable net impact of price and product mix of approximately $70 million.

Flooring NA—Net sales for the nine months ended September 30, 2023 were $2,917.3 million compared to net sales of $3,261.1 million for the nine months ended October 1, 2022. The change was primarily attributable to lower legacy sales volume of approximately $301 million and the unfavorable net impact of price and product mix of approximately $108 million, partially offset by higher sales volume attributable to acquisitions of approximately $66 million.

Flooring ROW—Net sales for the nine months ended September 30, 2023 were $2,299.1 million compared to net sales of $2,505.3 million for the nine months ended October 1, 2022. The change was primarily attributable to lower legacy sales volume of approximately $201 million; the unfavorable net impact of foreign exchange rates of approximately $37 million and fewer shipping days for the nine months ended September 30, 2023 of approximately $13 million, partially offset by higher sales volume attributable to acquisitions of approximately $27 million and the favorable net impact of price and product mix of approximately $20 million.

Gross profit

Gross profit for the nine months ended September 30, 2023 was $2,067.4 million compared to gross profit of $2,389.0 million for the nine months ended October 1, 2022. The change was primarily attributable to lower sales volume of approximately $197 million; higher restructuring, acquisition and integration-related, and other costs of approximately $73 million; the unfavorable impact of temporary plant shutdowns of approximately $71 million; higher inflation of approximately $38 million and the unfavorable net impact of foreign exchange rates of approximately $29 million, partially offset by productivity gains of approximately $57 million and the favorable net impact of price and product mix of approximately $17 million.

Selling, general and administrative expenses

Selling, general and administrative expenses for the nine months ended September 30, 2023 were $1,646.2 million compared to $1,510.1 million for the nine months ended October 1, 2022. The change was primarily attributable to higher legal settlements, reserves and fees of approximately $47 million; higher inflation of approximately $38 million; lower sales volume of approximately $24 million; higher costs associated with investments in new product development and marketing costs of approximately $14 million; higher restructuring, acquisition and integration-related, and other costs of approximately $12 million and lower productivity of approximately $3 million, partially offset by the favorable net impact of foreign exchange rates of approximately $2 million.

Impairment of goodwill and indefinite-lived intangibles

Impairment of goodwill and indefinite-lived intangibles for the nine months ended September 30, 2023 was $876.1 million compared to impairment of goodwill and indefinite-lived intangibles of $695.8 million for the three months ended October 1, 2022. As a result of a decrease in the Company’s market capitalization, a higher WACC and macroeconomic conditions, the Company performed interim impairment tests of its goodwill and indefinite-lived intangible assets, which resulted in the impairment charges.


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Operating income (loss)

Operating loss for the nine months ended September 30, 2023 was $454.9 million compared to operating income of $183.1 million for the nine months ended October 1, 2022. The change was primarily attributable to lower sales volume of approximately $221 million; higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $180 million; higher restructuring, acquisition and integration-related, and other costs of approximately $85 million; higher inflation of approximately $76 million; the unfavorable impact of temporary plant shutdowns of approximately $71 million; higher legal settlements, reserves and fees of approximately $47 million; the unfavorable net impact of foreign exchange rates of approximately $27 million and higher costs associated with investments in new product development and marketing costs of approximately $14 million, partially offset by productivity gains of approximately $54 million and the favorable net impact of price and product mix of approximately $16 million.

Global Ceramic—Operating loss was $208.0 million for the nine months ended September 30, 2023 compared to operating loss of $305.1 million for the nine months ended October 1, 2022. The change was primarily attributable to lower impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $263 million; productivity gains of approximately $43 million and the favorable net impact of price and product mix of approximately $38 million, partially offset by higher inflation of approximately $91 million; lower sales volume of approximately $83 million; the unfavorable impact of temporary plant shutdowns of approximately $40 million and higher restructuring, acquisition and integration-related, and other costs of approximately $33 million.

Flooring NA—Operating loss was $131.8 million for the nine months ended September 30, 2023 compared to operating income of $260.0 million for the nine months ended October 1, 2022. The change was primarily attributable to higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $214 million; lower sales volume of approximately $71 million; the unfavorable net impact of price and product mix of approximately $55 million; higher restructuring, acquisition and integration-related, and other costs of approximately $31 million; the unfavorable impact of temporary plant shutdowns of approximately $21 million; higher costs associated with investments in new product development and marketing costs of approximately $15 million and higher legal settlements, reserves and fees of approximately $6 million, partially offset by lower inflation of approximately $16 million and productivity gains of approximately $2 million.

Flooring ROW—Operating income was $2.6 million for the nine months ended September 30, 2023 compared to operating income of $304.3 million for the nine months ended October 1, 2022. The change was  primarily attributable to higher impairment charges to reduce the carrying amount of goodwill and indefinite-lived intangibles of approximately $229 million; lower sales volume of approximately $67 million; the unfavorable net impact of foreign exchange rates of approximately $27 million; higher restructuring, acquisition and integration-related, and other costs of approximately $21 million and the unfavorable impact of temporary plant shutdowns of approximately $10 million partially offset by the favorable net impact of price and product mix of approximately $33 million and productivity gains of approximately $10 million.

Interest expense

Interest expense was $60.1 million for the nine months ended September 30, 2023 compared to interest expense of $37.3 million for the nine months ended October 1, 2022. The change was primarily attributable to a significant increase in interest rates, as well as increased borrowings due to the acquisitions made in 2022 and the first quarter of 2023.

Other (income) expense, net

Other income, net was $6.9 million for the nine months ended September 30, 2023 compared to other income, net of $1.6 million for the nine months ended October 1, 2022. The change was primarily attributable to the reversal of an uncertain tax position recorded with the Emil acquisition of approximately $7 million during the nine months ended October 1, 2022, partially offset by the unfavorable net impact of foreign exchange rates of approximately $5 million.

Income tax expense

For the nine months ended September 30, 2023, the Company recorded income tax expense of $70.7 million on a loss before income taxes of $508.1 million, for an effective tax rate of (13.9)%. For the nine months ended October 1, 2022, the Company recorded income tax expense of $155.2 million on earnings before income taxes of $147.4 million, for an effective tax rate of 105.3%. The change in the effective tax rate was primarily driven by a shift from earnings before income taxes to a loss before income taxes and an increase in the impairment of non-deductible goodwill.
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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 nine months of 2023 was $1,032.9 million, compared to net cash provided by operating activities of $427.4 million in the first nine months of 2022. The increase of $605.5 million in 2023 was primarily attributable to the change in inventory and accounts receivable, partially offset by lower net earnings and the change in accounts payable.

Net cash used in investing activities in the first nine months of 2023 was $730.0 million compared to net cash used in investing activities of $374.4 million in the first nine months of 2022. The increase was primarily due to the increase in acquisition costs of $358.1 million and a decrease in the redemptions of short-term investments of $55.0 million (net of purchases of short-term investments), partially offset by the decrease of capital expenditures of $57.5 million.

Net cash used in financing activities in the first nine months of 2023 was $273.8 million compared to net cash used in financing activities of $3.0 million in the first nine months of 2022. The change in cash used in financing activities is primarily attributable to lower proceeds from commercial paper of $1,147.4 million (net of borrowing of commercial paper), partially offset by the proceeds from the Senior Notes of $600.0 million and lower share repurchase of $307.5 million.

As of September 30, 2023, the Company had cash of $518.5 million, substantially all of which was held in 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”). As of September 30, 2023, there remained $229.2 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.

Contractual Obligations

There have been no significant changes to the Company’s contractual obligations as disclosed in the Company’s 2022 Annual Report filed on Form 10-K except as described herein.
    
Critical Accounting Policies and Estimates

Other than the Critical Accounting Policy described below, there have been no significant changes to the Company’s critical accounting policies and estimates during the period. The Company's critical accounting policies are described in its 2022 Annual Report filed on Form 10-K.

Goodwill and other intangibles - The Company performs its annual testing of goodwill and indefinite-lived intangibles in the fourth quarter of each year. Between annual testing dates, the Company monitors factors such as its market capitalization, comparable company market multiples and macroeconomic conditions to identify conditions that could impact the Company’s assumptions utilized in the determination of the estimated fair values of the Company’s reporting units and indefinite-lived intangible assets significantly enough to trigger an impairment.


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The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgments and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy approaches. The Company has identified Global Ceramic, Flooring NA and Flooring ROW as its reporting units for the purposes of allocating goodwill and intangibles as well as assessing impairments. The valuation approaches are subject to key judgments and assumptions that are sensitive to change such as judgements and assumptions about appropriate sales growth rates, operating margins, WACC and comparable company market multiples.

As a result of a decrease in the Company’s market capitalization, macroeconomic conditions and an increase in the WACC, the Company determined that a triggering event occurred requiring goodwill impairment testing for each of its reporting units as of September 30, 2023. The impairment test indicated a pre-tax, non-cash goodwill impairment charge related to all 3 reporting units of $869,115 ($858,090 net of tax) which the Company recorded during the three months ended September 30, 2023.

The Company compared the estimated fair values of its indefinite-lived intangibles to their carrying values and determined that there were impairment charges of $6,994 ($5,181 net of tax) in all 3 reporting units during the three months ended September 30, 2023.

A significant or prolonged deterioration in economic conditions, continued increases in the costs of raw materials and energy combined with an inability to pass these costs on to customers, a further decline in the Company’s market capitalization or comparable company market multiples, projected future cash flows, or increases in the WACC, could impact the Company’s assumptions and require a reassessment of goodwill or indefinite-lived intangible assets for impairment in future periods. Future declines in estimated after tax cash flows, increases in the WACC or a decline in market capitalization could result in an additional indication of impairment in one or more of the Company’s reporting units.

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 processes. 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 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 September 30, 2023.

Seasonality

The Company is a calendar year-end company. Global Ceramic and the Flooring NA typically have higher net sales in the second and third quarters. Flooring ROW typically has higher net sales in the second and fourth quarters. Because periods of economic downturn can affect the seasonality of each segment, sales for any one quarter are not necessarily indicative of the sales that may be achieved for any other quarter or for the full year.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

As of September 30, 2023, 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 and $6.8 million for the three and nine months ended September 30, 2023.

There have been no significant changes to the Company’s exposure to market risk as disclosed in the Company’s 2022 Annual Report filed on Form 10-K.    

35
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.
36
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.

Item 1A.Risk Factors

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, 2022. The risk factors disclosed in these reports, in addition to the other information set forth in this report, could materially affect the Company's business, financial condition or results.

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; 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.

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 (the “2022 Share Repurchase Program”). In the third quarter of 2023, the Company did not purchase any of its common stock. As of September 30, 2023, there remained $229.2 million authorized under the 2022 Share Repurchase Program.

Under the 2022 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 2022 Share Repurchase Program and the 2022 Share Repurchase Program may be suspended or discontinued at any time.


37
The following table provides information regarding share repurchase activity during the three months ended September 30, 2023:

PeriodTotal Number of Shares Purchased
in Millions		Average Price Paid per ShareTotal 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
July 2 through August 5, 20230.0 $— 0.0 $229.2 
August 6 through September 2, 20230.0 $— 0.0 $229.2 
September 3 through September 30, 20230.0 $— 0.0 $229.2 
Total0.0 $— 0.0 

Item 3.Defaults Upon Senior Securities

None.

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.

38
Item 5.Other Information

None.
39
Item 6.Exhibits
No.Description
3.1Restated 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
4.1
4.2
31.1
31.2
32.1
32.2
95.1
101.SCHXBRL Taxonomy Extension Schema Document.
101.CALXBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFXBRL Taxonomy Extension Definition Linkbase Document.
101.LABXBRL Taxonomy Extension Label Linkbase Document.
101.PREXBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit
101)



40
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:October 27, 2023By:/s/ Jeffrey S. Lorberbaum
JEFFREY S. LORBERBAUM
Chairman and Chief Executive Officer
(principal executive officer)
Dated:October 27, 2023By:/s/ James F. Brunk
JAMES F. BRUNK
Chief Financial Officer
(principal financial officer)
41

EXHIBIT 31.1
CERTIFICATIONS
I, Jeffrey S. Lorberbaum, certify that:
 
1I have reviewed this quarterly report on Form 10-Q of Mohawk Industries, Inc.;
2Based 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;
3Based 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;
4The 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
5The 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: October 27, 2023
/s/ Jeffrey S. Lorberbaum
Jeffrey S. Lorberbaum
Chairman and Chief Executive Officer




EXHIBIT 31.2
CERTIFICATIONS
I, James F. Brunk, certify that:
 
1I have reviewed this quarterly report on Form 10-Q of Mohawk Industries, Inc.;
2Based 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;
3Based 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;
4The 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
5The 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: October 27, 2023
/s/ James F. Brunk
James F. Brunk
Chief Financial Officer



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 September 30, 2023 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:
 
1The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2The 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
October 27, 2023



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 September 30, 2023 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:
 
1The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2The 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
October 27, 2023


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 nine months ended September 30, 2023.
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 fatalitiesReceived 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 PeriodLegal Actions Initiated or Resolved During Period
TP Claims 1&2/Rosa Blanca (4100867)———————NoNo——



v3.23.3
COVER PAGE - shares
 9 Months Ended
Sep. 30, 2023
Oct. 25, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
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, $.01 par value  
Trading Symbol MHK  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   63,682,156
Entity Central Index Key 0000851968  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Income Statement [Abstract]        
Net sales $ 2,766,186 $ 2,917,539 $ 8,522,837 $ 9,086,390
Cost of sales 2,074,179 2,203,878 6,455,479 6,697,404
Gross profit 692,007 713,661 2,067,358 2,388,986
Selling, general and administrative expenses 549,641 523,479 1,646,156 1,510,076
Impairment of goodwill and indefinite-lived intangibles 876,108 695,771 876,108 695,771
Operating (loss) income (733,742) (505,589) (454,906) 183,139
Interest expense 20,144 13,797 60,138 37,337
Other income, net (8,551) (1,242) (6,902) (1,622)
Earnings (loss) before income taxes (745,335) (518,144) (508,142) 147,424
Income tax expense 14,954 15,569 70,657 155,193
Net earnings (loss) including noncontrolling interests (760,289) (533,713) (578,799) (7,769)
Less: net earnings (loss) attributable to noncontrolling interests 170 256 205 440
Net earnings (loss) attributable to Mohawk Industries, Inc. $ (760,459) $ (533,969) $ (579,004) $ (8,209)
Basic earnings (loss) per share attributable to Mohawk Industries, Inc. (in usd per share) $ (11.94) $ (8.40) $ (9.10) $ (0.13)
Weighted-average common shares outstanding-basic (in shares) 63,682 63,534 63,648 63,923
Diluted earnings (loss) per share attributable to Mohawk Industries, Inc. (in usd per share) $ (11.94) $ (8.40) $ (9.10) $ (0.13)
Weighted-average common shares outstanding-diluted (in shares) 63,682 63,534 63,648 63,923
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Statement of Comprehensive Income [Abstract]        
Net earnings (loss) including noncontrolling interests $ (760,289) $ (533,713) $ (578,799) $ (7,769)
Other comprehensive income (loss):        
Foreign currency translation adjustments (185,583) (254,002) (178,932) (302,384)
Prior pension and post-retirement benefit service cost and actuarial gain (loss), net of tax (12) 65 (520) 672
Other comprehensive income (loss) (185,595) (253,937) (179,452) (301,712)
Comprehensive income (loss) (945,884) (787,650) (758,251) (309,481)
Less: comprehensive income (loss) attributable to noncontrolling interests (41) (16) (379) 439
Comprehensive income (loss) attributable to Mohawk Industries, Inc. $ (945,843) $ (787,634) $ (757,872) $ (309,920)
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 518,452 $ 509,623
Short-term investments 0 158,000
Receivables, net 1,943,147 1,904,786
Inventories 2,519,709 2,793,765
Prepaid expenses 500,603 498,222
Other current assets 22,414 30,703
Total current assets 5,504,325 5,895,099
Property, plant and equipment 9,989,442 9,647,779
Less: accumulated depreciation 5,200,617 4,986,601
Property, plant and equipment, net 4,788,825 4,661,178
Right of use operating lease assets 404,477 387,816
Goodwill 1,125,434 1,927,759
Tradenames 683,801 668,328
Other intangible assets subject to amortization, net 170,626 189,620
Deferred income taxes and other non-current assets 461,007 390,632
Total assets 13,138,495 14,120,432
Current liabilities:    
Short-term debt and current portion of long-term debt 922,697 840,571
Accounts payable and accrued expenses 2,159,499 2,124,448
Current operating lease liabilities 106,378 105,266
Total current liabilities 3,188,574 3,070,285
Deferred income taxes 347,629 444,660
Long-term debt, less current portion 1,675,590 1,978,563
Non-current operating lease liabilities 314,984 296,136
Other long-term liabilities 340,328 312,874
Total liabilities 5,867,105 6,102,518
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; 71,020 and 70,875 shares issued and outstanding in 2023 and 2022, respectively 710 709
Additional paid-in capital 1,942,574 1,930,789
Retained earnings 6,830,756 7,409,760
Accumulated other comprehensive loss (1,293,126) (1,114,258)
Less: treasury stock at cost; 7,338 and 7,341 shares in 2023 and 2022, respectively 215,397 215,491
Total Mohawk Industries, Inc. stockholders’ equity 7,265,517 8,011,509
Noncontrolling interests 5,873 6,405
Total stockholders’ equity 7,271,390 8,017,914
Total liabilities and stockholders’ equity $ 13,138,495 $ 14,120,432
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
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) 71,020,000 70,875,000
Common stock, shares outstanding (in shares) 71,020,000 70,875,000
Treasury stock, shares (in shares) 7,338,000 7,341,000
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Cash flows from operating activities:    
Net earnings (loss) including noncontrolling interests $ (578,799) $ (7,769)
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Restructuring 77,681 21,673
Impairment of goodwill and indefinite-lived intangibles 876,108 695,771
Depreciation and amortization 476,112 436,449
Deferred income taxes (121,440) (47,846)
Loss on disposal of property, plant and equipment 3,012 591
Stock-based compensation expense 15,733 17,488
Changes in operating assets and liabilities, net of effects of acquisitions:    
Receivables, net 9,187 (267,546)
Inventories 260,953 (548,711)
Accounts payable and accrued expenses (4,357) 162,841
Other assets and prepaid expenses (4,457) (41,678)
Other liabilities 23,174 6,172
Net cash provided by operating activities 1,032,907 427,435
Cash flows from investing activities:    
Additions to property, plant and equipment (372,565) (430,084)
Acquisitions, net of cash acquired (515,405) (157,274)
Purchases of short-term investments (775,000) (2,233,000)
Redemption of short-term investments 933,000 2,446,000
Net cash used in investing activities (729,970) (374,358)
Cash flows from financing activities:    
Payments on Senior Credit Facilities (1,052,315) (5,000)
Proceeds from Senior Credit Facilities 1,043,936 5,000
Payments on commercial paper (15,810,415) (12,542,311)
Proceeds from commercial paper 14,986,843 12,866,175
Proceeds from Senior Notes issuance 600,000 0
Net payments of other financing activities (34,318) (16,061)
Debt issuance costs (5,592) (1,621)
Purchase of Mohawk common stock 0 (307,572)
Change in outstanding checks in excess of cash (1,895) (1,588)
Net cash provided by (used in) financing activities (273,756) (2,978)
Effect of exchange rate changes on cash and cash equivalents (20,352) 7,977
Net change in cash and cash equivalents 8,829 58,076
Cash and cash equivalents, beginning of period 509,623 268,895
Cash and cash equivalents, end of period $ 518,452 $ 326,971
v3.23.3
General
 9 Months Ended
Sep. 30, 2023
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 2022 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.
v3.23.3
Acquisitions
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
2023 Acquisitions

During the first quarter of 2023, the Company completed the acquisitions of two ceramic tile businesses in Brazil and Mexico within Global Ceramic for $515,509. The Company’s acquisitions resulted in a goodwill allocation of $85,892. A portion of the goodwill is expected to be deductible for tax purposes. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the acquisitions. These benefits include opportunities to improve the Company’s ceramic performance by leveraging best practices, operational expertise, product innovation and manufacturing assets across the segment. The following table presents the preliminary allocation of the purchase price by major class of assets acquired and liabilities assumed as of the acquisition date.

Amounts recognized
as of the acquisition date
Working capital$95,336 
Property, plant and equipment333,495 
Tradenames38,539 
Customer relationships4,040 
Goodwill85,892 
Long-term debt, including current portion(26,072)
Deferred tax, net(8,460)
522,770 
Less: cash acquired(7,261)
Net consideration transferred (net of cash acquired)$515,509 

The purchase price allocation is preliminary until the Company obtains information necessary to finalize its valuation of the fair value of net assets acquired during the measurement period. The supplemental pro forma information is immaterial to the Company's financial statements.





2022 Acquisitions

During the third and fourth quarters of 2022, the Company completed two acquisitions in Flooring North America (“Flooring NA”) for $164,475. The Company’s acquisitions resulted in a goodwill allocation of $55,954 and intangible assets subject to amortization of $19,900. Substantially all of the goodwill is deductible for tax purposes. During the third and fourth quarters of 2022, the Company also completed three acquisitions in Flooring Rest of the World (“Flooring ROW”) for $47,964, which resulted in a goodwill allocation of $14,759 and intangible assets subject to amortization of $3,376. An immaterial amount of goodwill is deductible for tax purposes.
v3.23.3
Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Contract Liabilities

The Company records contract liabilities when it receives payment prior to fulfilling a performance obligation. Contract liabilities related to revenues are recorded in accounts payable and accrued expenses on the accompanying Condensed Consolidated Balance Sheets. The Company had contract liabilities of $68,932 and $72,572 as of September 30, 2023 and December 31, 2022, 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, 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 and nine months ended September 30, 2023 and October 1, 2022 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 $70,260 and $59,015 as of September 30, 2023 and December 31, 2022, respectively. Straight-line amortization expense recognized during the nine months ended September 30, 2023 and October 1, 2022 related to these capitalized costs were $45,714 and $38,394, respectively.
Revenue Disaggregation

In the second quarter of 2023, the Company updated the geographical markets for its disaggregated revenue. The Company added Latin America and combined Russia into Europe to more closely align with its current business. The Company has reflected this change in all historical periods presented. 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 September 30, 2023 and October 1, 2022:

September 30, 2023Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$586,496 931,678 1,286 1,519,460 
Europe258,863 1,370 532,738 792,971 
Latin America201,632 1,346 9,684 212,662 
Other44,681 27,828 168,584 241,093 
Total$1,091,672 962,222 712,292 2,766,186 
Product Categories
Ceramic & Stone$1,081,322 8,767 — 1,090,089 
Carpet & Resilient10,350 757,441 223,209 991,000 
Laminate & Wood— 196,014 222,451 418,465 
Other (1)
— — 266,632 266,632 
Total$1,091,672 962,222 712,292 2,766,186 

October 1, 2022Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$614,460 1,056,596 3,784 1,674,840 
Europe314,412 2,079 544,292 860,783 
Latin America122,723 1,309 7,838 131,870 
Other45,061 29,650 175,335 250,046 
Total$1,096,656 1,089,634 731,249 2,917,539 
Product Categories
Ceramic & Stone$1,089,593 9,642 — 1,099,235 
Carpet & Resilient7,063 842,069 220,320 1,069,452 
Laminate & Wood— 237,923 235,461 473,384 
Other (1)
— — 275,468 275,468 
Total$1,096,656 1,089,634 731,249 2,917,539 
(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.
The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the nine months ended September 30, 2023 and October 1, 2022:
September 30, 2023Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$1,794,740 2,831,014 4,787 4,630,541 
Europe829,633 1,662 1,775,624 2,606,919 
Latin America543,963 2,912 24,259 571,134 
Other138,032 81,749 494,462 714,243 
  Total$3,306,368 2,917,337 2,299,132 8,522,837 
Product Categories
Ceramic & Stone$3,276,681 27,267 — 3,303,948 
Carpet & Resilient29,687 2,299,216 466,669 2,795,572 
Laminate & Wood— 590,854 942,921 1,533,775 
Other (1)
— — 889,542 889,542 
  Total$3,306,368 2,917,337 2,299,132 8,522,837 

October 1, 2022Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$1,825,304 3,153,752 10,802 4,989,858 
Europe986,010 5,955 1,904,193 2,896,158 
Latin America367,978 3,467 23,163 394,608 
Other140,690 97,908 567,168 805,766 
  Total$3,319,982 3,261,082 2,505,326 9,086,390 
Product Categories
Ceramic & Stone$3,302,446 28,685 — 3,331,131 
Carpet & Resilient17,536 2,547,184 709,148 3,273,868 
Laminate & Wood— 685,213 836,756 1,521,969 
Other (1)
— — 959,422 959,422 
  Total$3,319,982 3,261,082 2,505,326 9,086,390 
(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.
v3.23.3
Restructuring, Acquisition and Integration-Related Costs
 9 Months Ended
Sep. 30, 2023
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 and nine months ended September 30, 2023 and October 1, 2022:
Three Months EndedNine Months Ended
September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Cost of sales
Restructuring costs$42,605 30,421 101,225 31,722 
Acquisition integration-related costs55 — 932 349 
  Restructuring and acquisition integration-related costs$42,660 30,421 102,157 32,071 
Selling, general and administrative expenses
Restructuring costs$1,126 2,949 6,929 3,035 
Acquisition transaction-related costs696 481 2,000 1,508 
Acquisition integration-related costs2,598 687 9,779 1,741 
  Restructuring, acquisition transaction and integration-related costs$4,420 4,117 18,708 6,284 

The restructuring activity for the three months ended September 30, 2023 is as follows:
Asset write-
downs and
gains on
disposals		SeveranceOther
restructuring
costs		Total
Balance as of July 1, 2023$— 11,740 — 11,740 
Restructuring costs
Global Ceramic 12,569 2,135 75 14,779 
Flooring NA 24,722 (766)3,367 27,323 
Flooring ROW 383 (335)1,419 1,467 
Corporate— 162 — 162 
Total restructuring costs37,674 1,196 4,861 43,731 
Cash payments— (2,861)(741)(3,602)
Non-cash items(37,674)(181)(4,120)(41,975)
Balances as of September 30, 2023$— 9,894 — 9,894 
Restructuring costs recorded in:
Cost of sales$37,648 1,636 3,321 42,605 
Selling, general and administrative expenses26 (440)1,540 1,126 
Total restructuring costs$37,674 1,196 4,861 43,731 
The restructuring activity for the nine months ended September 30, 2023 is as follows:
Lease
impairments		Asset write-
downs and
gains on
disposals		SeveranceOther
restructuring
costs		Total
Balances as of December 31, 2022$— — 10,037 — 10,037 
Restructuring costs
Global Ceramic 255 14,702 7,818 118 22,893 
Flooring NA — 30,828 787 21,110 52,725 
Flooring ROW — 30,135 (334)2,573 32,374 
Corporate— — 162 — 162 
Total restructuring costs255 75,665 8,433 23,801 108,154 
Cash payments— — (8,446)(14,865)(23,311)
Non-cash items(255)(75,665)(130)(8,936)(84,986)
Balances as of September 30, 2023$— — 9,894 — 9,894 
Restructuring costs recorded in:
Cost of sales$— 75,516 4,700 21,009 101,225 
Selling, general and administrative expenses255 149 3,733 2,792 6,929 
Total restructuring costs$255 75,665 8,433 23,801 108,154 

The Company expects the remaining severance and other restructuring costs to be paid over the next 12 months.
v3.23.3
Fair Value
 9 Months Ended
Sep. 30, 2023
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

September 30, 2023December 31, 2022
Short-term investments:
Commercial paper (Level 2)$— 158,000 
The fair values and carrying values of the Company’s debt are disclosed in Note 18, Debt.
v3.23.3
Receivables, net
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Receivables, net Receivables, net
September 30, 2023December 31, 2022
Customers, trade$1,846,374 1,699,130 
Income tax receivable24,625 60,080 
Other143,513 219,355 
Less: allowance for discounts, claims and doubtful accounts71,365 73,779 
Receivables, net$1,943,147 1,904,786 
v3.23.3
Inventories
 9 Months Ended
Sep. 30, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
September 30, 2023December 31, 2022
Finished goods$1,757,527 1,986,005 
Work in process168,314 160,757 
Raw materials593,868 647,003 
Total inventories$2,519,709 2,793,765 
v3.23.3
Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The Company performs its annual testing of goodwill and indefinite-lived intangibles in the fourth quarter of each year. Between annual testing dates, the Company monitors factors such as its market capitalization, comparable company market multiples and macroeconomic conditions to identify conditions that could impact the Company’s assumptions utilized in the determination of the estimated fair values of the Company’s reporting units and indefinite-lived intangible assets significantly enough to trigger an impairment.

The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgments and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy approaches. The Company has identified Global Ceramic, Flooring NA and Flooring ROW as its reporting units for the purposes of allocating goodwill and intangibles as well as assessing impairments. The valuation approaches are subject to key judgments and assumptions that are sensitive to change such as judgments and assumptions about appropriate sales growth rates, operating margins, weighted average cost of capital (“WACC”) and comparable company market multiples.

As a result of a decrease in the Company’s market capitalization, macroeconomic conditions and an increase in the WACC, the Company determined that a triggering event occurred requiring goodwill impairment testing for each of its reporting units as of September 30, 2023. The impairment test indicated a pre-tax, non-cash goodwill impairment charge related to all 3 reporting units of $869,115 ($858,090 net of tax) which the Company recorded during the three months ended September 30, 2023.

The Company compared the estimated fair values of its indefinite-lived intangibles to their carrying values and determined that there were impairment charges of $6,994 ($5,181 net of tax) in all 3 reporting units during the three months ended September 30, 2023.

A significant or prolonged deterioration in economic conditions, continued increases in the costs of raw materials and energy combined with an inability to pass these costs on to customers, a further decline in the Company’s market capitalization or comparable company market multiples, projected future cash flows, or increases in the WACC, could impact the Company’s assumptions and require a reassessment of goodwill or indefinite-lived intangible assets for impairment in future periods. Future declines in estimated after tax cash flows, increases in the WACC or a decline in market capitalization could result in an additional indication of impairment in one or more of the Company’s reporting units.

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

Goodwill:
Global CeramicFlooring NAFlooring ROWTotal
Balance as of December 31, 2022 (1)
$339,834 591,985 995,940 1,927,759 
Goodwill adjustments related to acquisitions— (4,888)3,217 (1,671)
Goodwill recognized during the period85,892 — — 85,892 
Impairment charges during the period(422,651)(214,830)(231,634)(869,115)
Currency translation during the period(3,075)— (14,356)(17,431)
Balance as of September 30, 2023$— 372,267 753,167 1,125,434 
(1) Net of accumulated impairment losses of $2,015,939 ($1,220,444 in Global Ceramic, $343,054 in Flooring NA and $452,441 in Flooring ROW).
Intangible assets not subject to amortization:    
Tradenames
Balance as of December 31, 2022$668,328 
Intangible assets acquired during the period37,530 
Impairment charges(6,994)
Currency translation during the period(15,063)
Balance as of September 30, 2023$683,801 

Intangible assets subject to amortization:
Customer
relationships		PatentsOtherTotal
Balance as of December 31, 2022
Gross carrying amount$673,586 242,089 8,511 924,186 
Accumulated amortization(493,361)(239,010)(2,195)(734,566)
Net intangible assets subject to amortization180,225 3,079 6,316 189,620 
Balance as of September 30, 2023
Gross carrying amount670,800 239,113 8,514 918,427 
Accumulated amortization(509,162)(236,535)(2,104)(747,801)
Net intangible assets subject to amortization$161,638 2,578 6,410 170,626 

 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Amortization expense$6,975 6,918 21,197 20,917 
v3.23.3
Accounts Payable and Accrued Expenses
 9 Months Ended
Sep. 30, 2023
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Expenses Accounts Payable and Accrued Expenses
September 30, 2023December 31, 2022
Outstanding checks in excess of cash$911 2,791 
Accounts payable, trade1,082,398 1,094,038 
Accrued expenses741,120 742,099 
Product warranties38,262 38,425 
Accrued interest13,270 8,748 
Accrued compensation and benefits283,538 238,347 
Total accounts payable and accrued expenses$2,159,499 2,124,448 
v3.23.3
Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
 Foreign currency
translation adjustments		Prior pension and post-
retirement benefit service
 cost and actuarial gain (loss)		Total
Balance as of December 31, 2022$(1,114,629)371 (1,114,258)
Current period other comprehensive income (loss)(178,348)(520)(178,868)
Balance as of September 30, 2023$(1,292,977)(149)(1,293,126)
Stockholders’ Equity
The following tables reflect the changes in stockholders’ equity for the three months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balance as of July 1, 202371,018 $710 $1,937,320 $7,591,215 ($1,107,742)(7,338)($215,397)$5,914 $8,212,020 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards2 — (96)— — — — — (96)
Stock-based compensation expense— — 5,350 — — — — — 5,350 
Net earnings attributable to noncontrolling interests— — — — — — — 170 170 
Currency translation adjustment on noncontrolling interests— — — — — — — (211)(211)
Currency translation adjustment— — — — (185,372)— — — (185,372)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (12)— — — (12)
Net earnings— — — (760,459)— — — — (760,459)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of July 2, 202270,878 $709 $1,919,742 $7,910,657 ($1,014,999)(7,341)($215,491)$6,320 $8,606,938 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards— — (27)— — — — — (27)
Stock-based compensation expense— — 6,179 — — — — — 6,179 
Repurchases of common stock(3)— — (384)— — — — (384)
Net earnings attributable to noncontrolling interests— — — — — — — 256 256 
Currency translation adjustment on noncontrolling interests— — — — — — — (273)(273)
Purchase of noncontrolling interest, net of taxes— — — — — — — 1 1 
Currency translation adjustment— — — — (253,729)— — — (253,729)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 65 — — — 65 
Net earnings— — — (533,969)— — — — (533,969)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 
The following tables reflect the changes in stockholders’ equity for the nine months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of December 31, 202270,875 $709 $1,930,789 $7,409,760 ($1,114,258)(7,341)($215,491)$6,405 $8,017,914 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards145 1 (4,001)— — 3 94 — (3,906)
Stock-based compensation expense— — 15,733 — — — — — 15,733 
Net earnings attributable to noncontrolling interests— — — — — — — 205 205 
Currency translation adjustment on noncontrolling interests— — — — — — — (584)(584)
Purchase of noncontrolling interest, net of taxes— — 53 — — — — (153)(100)
Currency translation adjustment— — — — (178,348)— — — (178,348)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (520)— — — (520)
Net earnings— — — (579,004)— — — — (579,004)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of 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 plans, net of shares withheld to pay taxes on employees’ equity awards107 1 (3,297)— — 2 56 — (3,240)
Stock-based compensation expense— — 17,488 — — — — — 17,488 
Repurchases of common stock(2,184)(21)— (307,551)— — — — (307,572)
Net earnings attributable to noncontrolling interests— — — — — — — 440 440 
Currency translation adjustment on noncontrolling interests— — — — — — — (1)(1)
Purchase of noncontrolling interest, net of taxes— — 572 — — — — (926)(354)
Currency translation adjustment— — — (302,383)— — — (302,383)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 672 — — — 672 
Net earnings— — — (8,209)— — — — (8,209)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 
v3.23.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The Company recognizes compensation expense for all share-based payments granted based on the grant-date fair value estimated in accordance with 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 1 restricted stock unit (“RSU”) at a weighted average grant-date fair value of $103.07 per unit for the three months ended September 30, 2023. The Company granted 263 RSUs at a weighted average grant-date fair value of $102.09 per unit for the nine months ended September 30, 2023. The Company granted no RSUs for the three months ended October 1, 2022. The Company granted 189 RSUs at a weighted average grant-date fair value of $137.99 per unit for the nine months ended October 1, 2022. The Company recognized stock-based compensation expense related to the issuance of RSUs of $5,349 ($3,958 net of taxes) and $6,179 ($4,572 net of taxes) for the three months ended September 30, 2023 and October 1, 2022, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. The Company recognized stock-based compensation costs related to the issuance of RSUs of $15,733 ($11,642 net of taxes) and $17,488 ($12,941 net of taxes) for the nine months ended September 30, 2023 and October 1, 2022, 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 $23,786 as of September 30, 2023, and will be recognized as expense over a weighted-average period of approximately 1.70 years.
v3.23.3
Other (Income) Expense, net
 9 Months Ended
Sep. 30, 2023
Other Nonoperating Income (Expense) [Abstract]  
Other (Income) Expense, net Other (Income) Expense, net
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Foreign currency (gains) losses, net$(142)6,032 11,644 6,476 
Release of indemnification asset— — — 7,324 
All other, net(8,409)(7,274)(18,546)(15,422)
Total other (income) expense, net$(8,551)(1,242)(6,902)(1,622)
v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesFor the three months ended September 30, 2023, the Company recorded income tax expense of $14,954 on loss before income taxes of $745,335 for an effective tax rate of (2.0)%. For the three months ended October 1, 2022, the Company recorded income tax expense of $15,569 on loss before income taxes of $518,144, for an effective tax rate of (3.0)%. The increase in the effective tax rate was primarily driven by larger losses before income tax and an increase in the impairment of non-deductible goodwill. For the nine months ended September 30, 2023, the Company recorded income tax expense of $70,657 on loss before income taxes of $(508,142) for an effective tax rate of (13.9)%, as compared to income tax expense of $155,193 on earnings before income taxes of $147,424, for an effective tax rate of 105.3% for the nine months ended October 1, 2022. The decrease in the effective tax rate was primarily driven by a shift from earnings before income taxes to losses before income taxes and an increase in the impairment of non-deductible goodwill.
v3.23.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Stockholders' Equity Accumulated Other Comprehensive Income (Loss)
 Foreign currency
translation adjustments		Prior pension and post-
retirement benefit service
 cost and actuarial gain (loss)		Total
Balance as of December 31, 2022$(1,114,629)371 (1,114,258)
Current period other comprehensive income (loss)(178,348)(520)(178,868)
Balance as of September 30, 2023$(1,292,977)(149)(1,293,126)
Stockholders’ Equity
The following tables reflect the changes in stockholders’ equity for the three months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balance as of July 1, 202371,018 $710 $1,937,320 $7,591,215 ($1,107,742)(7,338)($215,397)$5,914 $8,212,020 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards2 — (96)— — — — — (96)
Stock-based compensation expense— — 5,350 — — — — — 5,350 
Net earnings attributable to noncontrolling interests— — — — — — — 170 170 
Currency translation adjustment on noncontrolling interests— — — — — — — (211)(211)
Currency translation adjustment— — — — (185,372)— — — (185,372)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (12)— — — (12)
Net earnings— — — (760,459)— — — — (760,459)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of July 2, 202270,878 $709 $1,919,742 $7,910,657 ($1,014,999)(7,341)($215,491)$6,320 $8,606,938 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards— — (27)— — — — — (27)
Stock-based compensation expense— — 6,179 — — — — — 6,179 
Repurchases of common stock(3)— — (384)— — — — (384)
Net earnings attributable to noncontrolling interests— — — — — — — 256 256 
Currency translation adjustment on noncontrolling interests— — — — — — — (273)(273)
Purchase of noncontrolling interest, net of taxes— — — — — — — 1 1 
Currency translation adjustment— — — — (253,729)— — — (253,729)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 65 — — — 65 
Net earnings— — — (533,969)— — — — (533,969)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 
The following tables reflect the changes in stockholders’ equity for the nine months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of December 31, 202270,875 $709 $1,930,789 $7,409,760 ($1,114,258)(7,341)($215,491)$6,405 $8,017,914 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards145 1 (4,001)— — 3 94 — (3,906)
Stock-based compensation expense— — 15,733 — — — — — 15,733 
Net earnings attributable to noncontrolling interests— — — — — — — 205 205 
Currency translation adjustment on noncontrolling interests— — — — — — — (584)(584)
Purchase of noncontrolling interest, net of taxes— — 53 — — — — (153)(100)
Currency translation adjustment— — — — (178,348)— — — (178,348)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (520)— — — (520)
Net earnings— — — (579,004)— — — — (579,004)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of 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 plans, net of shares withheld to pay taxes on employees’ equity awards107 1 (3,297)— — 2 56 — (3,240)
Stock-based compensation expense— — 17,488 — — — — — 17,488 
Repurchases of common stock(2,184)(21)— (307,551)— — — — (307,572)
Net earnings attributable to noncontrolling interests— — — — — — — 440 440 
Currency translation adjustment on noncontrolling interests— — — — — — — (1)(1)
Purchase of noncontrolling interest, net of taxes— — 572 — — — — (926)(354)
Currency translation adjustment— — — (302,383)— — — (302,383)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 672 — — — 672 
Net earnings— — — (8,209)— — — — (8,209)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 
v3.23.3
Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share Earnings (Loss) Per Share
Basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings (loss) per common share assumes the exercise of outstanding stock options and the vesting of RSUs using the treasury stock method when the effects of such assumptions are dilutive. A reconciliation of net earnings (loss) attributable to Mohawk Industries, Inc. and weighted-average common shares outstanding for purposes of calculating basic and diluted earnings (loss) per share is as follows:    
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net earnings (loss) attributable to Mohawk Industries, Inc.$(760,459)(533,969)(579,004)(8,209)
Weighted-average common shares outstanding—basic and diluted:
Weighted-average common shares outstanding—basic63,682 63,534 63,648 63,923 
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net(1)
— — — — 
Weighted-average common shares outstanding-diluted63,682 63,534 63,648 63,923 
Earnings (loss) per share attributable to Mohawk Industries, Inc.
Basic$(11.94)(8.40)(9.10)(0.13)
Diluted$(11.94)(8.40)(9.10)(0.13)
(1) Due to the anti-dilutive effect, 252 and 235 shares of common stock equivalents for the three and nine months ended September 30, 2023, respectively, were omitted from the calculation of diluted weighted-average common shares outstanding. Due to the anti dilutive effect, 257 and 246 shares of common stock equivalents for the three and nine months ended October 1, 2022, respectively, were omitted from the calculation of diluted weighted-average common shares outstanding.
v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has three reporting segments: Global Ceramic, Flooring NA and Flooring ROW. Global Ceramic designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone 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, residential and commercial contractors and home centers. Flooring NA designs, manufactures, sources and markets its floor covering products, including broadloom carpet, carpet tile, carpet cushion, rugs, laminate, vinyl products, 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 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, residential contractors, commercial contractors and commercial end users. Flooring ROW designs, manufactures, sources, licenses and markets laminate, vinyl products, 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, residential and commercial contractors and commercial end users.

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.
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net sales:
Global Ceramic $1,091,672 1,096,656 3,306,368 3,319,982 
Flooring NA 962,222 1,089,634 2,917,337 3,261,082 
Flooring ROW 712,292 731,249 2,299,132 2,505,326 
Total$2,766,186 2,917,539 8,522,837 9,086,390 
Operating income (loss):
Global Ceramic $(355,304)(559,706)(207,953)(305,099)
Flooring NA (166,973)64,672 (131,787)260,026 
Flooring ROW (159,569)45,508 2,590 304,265 
Corporate and intersegment eliminations(51,896)(56,063)(117,756)(76,053)
Total$(733,742)(505,589)(454,906)183,139 

September 30, 2023December 31, 2022
Assets:
Global Ceramic $4,905,861 4,841,310 
Flooring NA 3,911,708 4,299,360 
Flooring ROW 3,857,628 4,275,519 
Corporate and intersegment eliminations463,298 704,243 
Total$13,138,495 14,120,432 
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
From time to time in the regular course of its business, the Company is involved in various lawsuits, claims, investigations and other legal matters. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject.

Perfluorinated Compounds (“PFCs”) Litigation

In April 2023, Shelby County, Alabama and Talladega County, Alabama filed a complaint in the Circuit Court of Talladega County, Alabama against certain manufacturers, suppliers, and users of chemicals containing specific PFCs, including Aladdin Manufacturing Corporation, Aladdin Manufacturing Corporation of Alabama, LLC, Mohawk Carpet, LLC, and Mohawk Industries, Inc. The Counties both seek monetary damages and injunctive relief, claiming that their water supplies contain excessive amounts of PFCs. The defendants removed this case to federal court on May 12, 2023, and the case remains pending.

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 a motion to dismiss. On September 20, 2021, the Northern District of Georgia denied the Company’s motion to dismiss in the class action.

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

Putative Securities Class Action

On January 3, 2020, the Company and certain of its executive officers were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Northern District of Georgia (the “Securities Class Action”). The complaint alleged that defendants violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The complaint was filed on behalf of shareholders who purchased shares of the Company’s common stock between April 28, 2017 and July 25, 2019 (“Class Period”). On June 29, 2020, an amended complaint was filed in the Securities Class Action against Mohawk and its CEO Jeff Lorberbaum, based on the same claims and the same Class Period. The amended complaint alleges that the Company (1) engaged in fabricating revenues by attempting delivery to customers that were closed and recognizing these attempts as sales; (2) overproduced product to report higher operating margins and maintained significant inventory that was not salable; and (3) valued certain inventory improperly or improperly delivered inventory with knowledge that it was defective and customers would return it. On December 13, 2022, the parties reached an agreement in principle to settle the Securities Class Action for $60,000, of which a significant portion is covered by insurance, in exchange for the dismissal and a release of all claims against the defendants (the “Agreement”). The Agreement is without admission of fault or wrongdoing by defendants. Following the final settlement hearing on May 31, 2023, the court entered final approval of the settlement and closed the case on June 1, 2023. The Company continues to believe the allegations in the Securities Class Action were without merit.

Government Subpoenas

As previously disclosed, on June 25, 2020, the Company received subpoenas issued by the U.S. Attorney’s Office for the Northern District of Georgia (the “USAO”) and the U.S. Securities and Exchange Commission (the “SEC”) relating to matters similar to the allegations of wrongdoing raised by the Securities Class Action. The Company’s Audit Committee, with the assistance of outside legal counsel, conducted a thorough internal investigation into these allegations and determined them to be without merit. On September 6, 2023, the SEC staff notified the Company in writing that it does not intend to recommend an enforcement action against the Company. The Company is unaware of any further investigation of these matters by the USAO.
Delaware State Court Action

The Company and certain of its present and former executive officers were named as defendants in a putative state securities class action lawsuit filed in the Superior Court of the State of Delaware on January 30, 2020. The complaint alleged that defendants violated Sections 11 and 12 of the Securities Act of 1933. The complaint was filed on behalf of shareholders who purchased shares of the Company’s common stock in Mohawk Industries Retirement Plan 1 and Mohawk Industries Retirement Plan 2 between April 27, 2017 and July 25, 2019. On March 27, 2020, the court granted a temporary stay of the litigation. The stay may be lifted according to the terms set forth in the court’s order to stay litigation. The parties reached an agreement in principle to settle the lawsuit in exchange for the dismissal and a release of all claims against the defendants (the “Settlement Agreement”). The Settlement Agreement, which is subject to court approval, is without admission of fault or wrongdoing by defendants. The Company believes the allegations in the lawsuit are without merit.

Georgia State Court Investor Actions

The Company and certain of its present and former executive officers were named as defendants in certain investor actions, filed in the State Court of Fulton County of the State of Georgia on April 22, 2021, April 23, 2021, and May 11, 2022. Five complaints brought on behalf of purported former Mohawk stockholders each allege that defendants defrauded the respective plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the investor actions seek compensatory and punitive damages. On June 28, 2021, defendants filed motions to dismiss each of the four complaints filed in April 2021 and answers to the same. On October 5, 2021, all four investor actions filed in April 2021 were transferred by the State Court of Fulton County to the Metro Atlanta Business Case Division. On January 28, 2022, the Court granted in part and denied in part the motions to dismiss the four actions filed in April 2021, dismissing the Georgia Securities Act claims as to all defendants, and the negligent misrepresentation claim as to the Company.

On May 19, 2022, the parties in the last-filed action filed a joint motion to transfer the investor action initiated on May 11, 2022 to the Metro Atlanta Business Case Division where the other four actions were and are pending. On August 2, 2022, this motion was granted and the last-filed investor action initiated on May 11, 2022 was transferred to the Metro Atlanta Business Case Division. On September 1, 2022, defendants in the last-filed investor action filed motions to dismiss the complaint filed on May 2022 and answers to the same. On November 16, 2022, plaintiffs in the last-filed investor action voluntarily dismissed the suit. On October 4, 2023, plaintiffs filed Amended Complaints in the remaining four investor actions. The Company intends to vigorously defend against the claims in these actions.

Federal Investor Actions

The Company and certain of its present and former executive officers were named as defendants in three additional non-class action lawsuits filed in the United States District Court for the Northern District of Georgia on June 22, 2021 (the “Maverick Action”), March 25, 2022 (the “Hound Action”), and April 26, 2022 (the “Fir Tree Action,” and collectively, “Federal Investor Actions”), respectively. Each complaint is brought on behalf of one or more purported former Mohawk stockholders and alleges that defendants defrauded the plaintiffs through false or misleading statements and thereby induced plaintiffs to purchase Company stock at artificially inflated prices. The allegations are similar to those of the Securities Class Action. The federal law claims alleged include violations of Sections 10(b) and 18 of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements and that the officers are control persons under Section 20(a) of the Securities Exchange Act of 1934. The state law claims alleged include fraud, negligent misrepresentation, violations of the Georgia Securities Act, and violations of the Georgia Racketeering and Corrupt Organizations statute. Plaintiffs in the lawsuits seek compensatory and punitive damages and attorneys’ fees.

On December 13, 2021, defendants filed motions to dismiss the complaint in the Maverick Action. On July 6, 2022, defendants filed motions to dismiss the complaint in the Hound Action. On July 27, 2022, defendants filed motions to dismiss the complaint in the Fir Tree Action. On August 9, 2022, defendants filed a motion to consolidate all three Federal Investor Actions for pre-trial purposes. On March 31, 2023, the court issued orders in each of the Federal Investor Actions granting in part and denying in part defendants’ motions to dismiss the three Federal Investor Actions, and granting defendants’ motion to consolidate the three Federal Investor Actions for pre-trial purposes. Defendants filed answers to each of the three complaints on April 14, 2023, and fact discovery opened.
On October 11, 2023, the parties to the Maverick Action reached an agreement to settle the Maverick Action, in exchange for the dismissal and a release of all claims against the defendants. On October 17, 2023, plaintiffs in the Maverick Action filed a stipulation of voluntary dismissal with prejudice of the Maverick Action. On October 18, 2023 the Court granted dismissal and terminated the case. The Company continues to vigorously defend against the claims asserted in the Hound Action and the Fir Tree Action.

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. On March 22, 2023, the temporary stay of the NDGA Derivative Actions expired, and fact discovery is ongoing. The Company intends to vigorously defend against the claims.

General

The Company believes that adequate provisions for resolution of all contingencies, claims and pending litigation have been made for probable losses that are reasonably estimable. These contingencies are subject to significant uncertainties and the Company is unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that the ultimate outcome of these actions will have a material adverse effect on its financial condition but could have a material adverse effect on its results of operations, cash flows or liquidity in a given quarter or year.
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.
v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
Senior Credit Facility

On August 12, 2022, the Company entered into a fourth amendment (the “Amendment”) to its existing senior revolving credit facility (the “Senior Credit Facility”). The Amendment, among other things, (i) extended the maturity of the Senior Credit Facility from October 18, 2024 to August 12, 2027, (ii) renewed the Company’s option to extend the maturity of the Senior Credit Facility up to two times for an additional one-year period each, (iii) increased the Consolidated Interest Coverage Ratio financial maintenance covenant from 3.00:1.00 to 3.50:1.00, (iv) eliminated certain covenants applicable to the Company and its subsidiaries, including, but not limited to, restrictions on dispositions, restricted payments, and transactions with affiliates, and the Consolidated Net Leverage Ratio financial covenant, and (v) increased the amount available under the Senior Credit Facility to $1,950,000 until October 18, 2024, after which the amount available under the Senior Credit Facility will decrease to $1,485,000. The Amendment also permits the Company to increase the commitments under the Senior Credit Facility by an aggregate amount not to exceed $600,000.

At the Company’s election, U.S.-dollar denominated revolving loans under the Senior Credit Facility bear interest at annual rates equal to either (a) SOFR (plus a 0.10% SOFR adjustment) for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 1.00% and 1.75% (1.13% as of September 30, 2023), or (b) the Base Rate (defined as the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds Effective Rate plus 0.5%, or SOFR (plus a 0.10% SOFR adjustment) for a 1 month period rate plus 1.0%), plus an applicable margin ranging between 0.00% and 0.75% (0.13% as of September 30, 2023). At the Company’s election, revolving loans under the Senior Credit Facility denominated in Canadian dollars, Australian dollars, Hong Kong dollars or euros bear interest at annual rates equal to either (a) the applicable benchmark for such currency plus an applicable margin ranging between 1.00% and 1.75% (1.13% as of September 30, 2023), or (b) the Base Rate plus an applicable margin ranging between 0.00% and 0.75% (0.13% as of September 30, 2023). 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 (0.11% as of September 30, 2023). The applicable margins and the commitment fee are determined based on whichever of the Company’s Consolidated Net Leverage Ratio or its senior unsecured debt rating (or if not available, corporate family rating) results in the lower applicable margins and commitment fee (with applicable margins and the commitment fee increasing as that ratio increases or those ratings decline, as applicable). On October 28, 2021, the Company amended the Senior Credit Facility to replace LIBOR for euros with the EURIBOR benchmark rate.

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

The Senior Credit Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, subsidiary indebtedness, fundamental changes, future negative pledges, and changes in the nature of the Company’s business. The limitations contain customary exceptions or, in certain cases, do not apply as long as the Company is in compliance with the financial ratio requirement and is not otherwise in default. As described above, the Consolidated Net Leverage Ratio financial covenant was eliminated on August 12, 2022.

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

In 2022, the Company paid financing costs of $1,879 in connection with the Amendment of its Senior Credit Facility. These costs were deferred and, along with previously unamortized costs of $2,663, are being amortized over the term of the Senior Credit Facility.

As of September 30, 2023, amounts utilized under the Senior Credit Facility included zero borrowings and $746 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. The Company has utilized $746 under the Senior Credit Facility, resulting in a total of $1,949,254 available as of September 30, 2023.
Commercial Paper

On February 28, 2014 and July 31, 2015, the Company established programs for the issuance of unsecured commercial paper in the United States and Eurozone capital markets, respectively. Commercial paper issued under the U.S. and European programs will have maturities ranging up to 397 and 183 days, respectively. None of the commercial paper notes may be voluntarily prepaid or redeemed by the Company and rank pari passu with the Company’s other unsecured and unsubordinated indebtedness. To the extent that the Company issues European commercial paper notes through a subsidiary of the Company, the notes will be fully and unconditionally guaranteed by the Company.

The Company uses its Senior Credit Facility as a liquidity backstop for its commercial paper programs. Accordingly, the total amount outstanding under the Company’s commercial paper programs may not exceed $1,950,000 (less any amounts drawn on the Senior Credit Facility) at any time.

The proceeds from the issuance of commercial paper notes will be available for general corporate purposes. As of September 30, 2023, there was zero outstanding under the U.S. commercial paper program, and the European program.     

Senior Notes

On September 18, 2023, the Company completed the issuance and sale of $600,000 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 $5,592 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 €500,000 aggregate principal amount of 1.750% Senior Notes (“1.750% Senior Notes”) due June 12, 2027. The 1.750% Senior Notes are senior unsecured obligations of Mohawk Finance and rank pari passu with Mohawk Finance’s other existing and future senior unsecured indebtedness. The 1.750% Senior Notes are fully, unconditionally and irrevocably guaranteed by the Company on a senior unsecured basis. Interest on the 1.750% Senior Notes is payable annually in cash on June 12 of each year, commencing on June 12, 2021. The Company paid financing costs of $4,400 in connection with the 1.750% Senior Notes. These costs were deferred and are being amortized over the term of the 1.750% Senior Notes.

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

On January 31, 2013, the Company issued $600,000 aggregate principal amount of 3.85% Senior Notes (“3.85% Senior Notes”) due February 1, 2023. The 3.85% Senior Notes were senior unsecured obligations of the Company and ranked pari passu with the Company’s existing and future unsecured indebtedness. Interest on the 3.85% Senior Notes was payable semi-annually in cash on February 1 and August 1 of each year. The Company paid financing costs of $6,000 in connection with the 3.85% Senior Notes. These costs were deferred and were amortized over the term of the 3.85% Senior Notes. On November 1, 2022, the Company redeemed at par all of the 3.85% Senior Notes.

As defined in the related agreements, the Company’s senior notes contain covenants, representations and warranties and events of default, subject to exceptions, and restrictions on the Company’s financial and business operations, including limitations on liens, restrictions on entering into sale and leaseback transactions, fundamental changes, and a provision allowing the holder of the notes to require repayment upon a change of control triggering event.
Term Loan
    
On August 12, 2022, the Company and its indirect wholly-owned subsidiary, Mohawk International Holdings S.à r.l. (“Mohawk International”), entered into an agreement that provides for a delayed draw term loan facility (the “Term Loan Facility”), consisting of borrowings of up to $575,000 and €220,000. On October 3, 2022, an additional $100,000 of borrowing capacity was added to the Term Loan Facility. The Term Loan Facility could be drawn upon in up to two advances on any business day on or before December 31, 2022, with the proceeds being used for funding working capital and general corporate purposes. On October 31, 2022 and December 6, 2022, the Company made draws of $675,000 and €220,000, respectively. The Company must pay the outstanding principal amount of the Term Loan Facility, plus accrued and unpaid interest, not later than the maturity date of August 12, 2024. The Company may prepay all or a portion of the Term Loan Facility, plus accrued and unpaid interest, from time to time, without premium or penalty.

At the Company’s election, U.S. dollar-denominated loans under the Term Loan Facility bear interest at an annual rate equal to either (a) SOFR (plus a 0.10% SOFR adjustment) for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 0.825% and 1.50% (0.900% as of September 30, 2023), determined based upon the Company’s consolidated net leverage ratio, or (b) the base rate (defined as the higher of the Wells Fargo Bank, National Association prime rate, the Federal Funds Effective Rate plus 0.5%, and SOFR (plus a 0.10% SOFR adjustment) for a 1 month period plus 1.0%) plus an applicable margin ranging between 0.00% and 0.50% (0.00% as of September 30, 2023), determined based upon the Company’s consolidated net leverage ratio. Euro-denominated loans under the Term Loan Facility bear interest at an annual rate equal to EURIBOR for 1, 3 or 6 month periods, as selected by the Company, plus an applicable margin ranging between 0.825% and 1.50% (0.900% as of September 30, 2023), determined based upon the Company’s consolidated net leverage ratio.

In 2022, the Company paid financing costs of $664 in connection with the Term Loan Facility. These costs were deferred and are being amortized over the term of the Term Loan Facility.

The obligations of the Company and its subsidiaries in respect of the Term Loan Facility are unsecured.

The Term Loan Facility includes certain affirmative and negative covenants that impose restrictions on the Company’s financial and business operations, including limitations on liens, indebtedness, fundamental changes, and changes in the nature of the Company’s business. Many of these limitations are subject to numerous exceptions. The Company is also required to maintain a Consolidated Interest Coverage Ratio of at least 3.5 to 1.0 as of the last day of any fiscal quarter.

The Term Loan Facility also contains customary representations and warranties.

The Term Loan Facility contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company. Upon the occurrence of an event of default, the outstanding obligations under the Term Loan Facility may be accelerated and become due and payable immediately. In addition, if certain change of control events occur with respect to the Company, the Company is required to repay the loans outstanding under the Term Loan Facility.

The fair values and carrying values of the Company’s debt instruments are detailed as follows:
 September 30, 2023December 31, 2022
 Fair ValueCarrying
Value		Fair ValueCarrying
Value
1.750% Senior Notes, payable June 12, 2027; interest payable annually
$484,591 528,597 482,139 535,103 
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually
436,905 500,000 431,605 500,000 
5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually
596,400 600,000 — — 
U.S. commercial paper— — 785,998 785,998 
European commercial paper— — 42,808 42,808 
U.S. Term Loan Facility675,000 675,000 675,000 675,000 
European Term Loan Facility232,583 232,583 235,445 235,445 
Finance leases and other73,718 73,718 52,050 52,050 
Unamortized debt issuance costs(11,611)(11,611)(7,270)(7,270)
Total debt2,487,586 2,598,287 2,697,775 2,819,134 
Less current portion of long term-debt and commercial paper922,697 922,697 840,571 840,571 
Long-term debt, less current portion$1,564,889 1,675,590 1,857,204 1,978,563 

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.
v3.23.3
Supplemental Cash Flow Information
 9 Months Ended
Sep. 30, 2023
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
Nine Months Ended
September 30, 2023October 1, 2022
Net cash paid during the periods for:
Interest$70,757 50,627 
Income taxes$128,607 193,895 
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses$88,020 82,250 
ROU assets obtained in exchange for lease obligations:
Operating leases$111,895 97,473 
Finance leases$25,658 11,332 
v3.23.3
General (Policies)
 9 Months Ended
Sep. 30, 2023
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 2022 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.
v3.23.3
Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The following table presents the preliminary allocation of the purchase price by major class of assets acquired and liabilities assumed as of the acquisition date.
Amounts recognized
as of the acquisition date
Working capital$95,336 
Property, plant and equipment333,495 
Tradenames38,539 
Customer relationships4,040 
Goodwill85,892 
Long-term debt, including current portion(26,072)
Deferred tax, net(8,460)
522,770 
Less: cash acquired(7,261)
Net consideration transferred (net of cash acquired)$515,509 
v3.23.3
Revenue from Contracts with Customers (Tables)
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023 and October 1, 2022:
September 30, 2023Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$586,496 931,678 1,286 1,519,460 
Europe258,863 1,370 532,738 792,971 
Latin America201,632 1,346 9,684 212,662 
Other44,681 27,828 168,584 241,093 
Total$1,091,672 962,222 712,292 2,766,186 
Product Categories
Ceramic & Stone$1,081,322 8,767 — 1,090,089 
Carpet & Resilient10,350 757,441 223,209 991,000 
Laminate & Wood— 196,014 222,451 418,465 
Other (1)
— — 266,632 266,632 
Total$1,091,672 962,222 712,292 2,766,186 

October 1, 2022Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$614,460 1,056,596 3,784 1,674,840 
Europe314,412 2,079 544,292 860,783 
Latin America122,723 1,309 7,838 131,870 
Other45,061 29,650 175,335 250,046 
Total$1,096,656 1,089,634 731,249 2,917,539 
Product Categories
Ceramic & Stone$1,089,593 9,642 — 1,099,235 
Carpet & Resilient7,063 842,069 220,320 1,069,452 
Laminate & Wood— 237,923 235,461 473,384 
Other (1)
— — 275,468 275,468 
Total$1,096,656 1,089,634 731,249 2,917,539 
(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.
The following table presents the Company’s segment revenues disaggregated by the geographical market location of customer sales and product categories for the nine months ended September 30, 2023 and October 1, 2022:
September 30, 2023Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$1,794,740 2,831,014 4,787 4,630,541 
Europe829,633 1,662 1,775,624 2,606,919 
Latin America543,963 2,912 24,259 571,134 
Other138,032 81,749 494,462 714,243 
  Total$3,306,368 2,917,337 2,299,132 8,522,837 
Product Categories
Ceramic & Stone$3,276,681 27,267 — 3,303,948 
Carpet & Resilient29,687 2,299,216 466,669 2,795,572 
Laminate & Wood— 590,854 942,921 1,533,775 
Other (1)
— — 889,542 889,542 
  Total$3,306,368 2,917,337 2,299,132 8,522,837 

October 1, 2022Global Ceramic Flooring NA Flooring ROW Total
Geographical Markets
United States$1,825,304 3,153,752 10,802 4,989,858 
Europe986,010 5,955 1,904,193 2,896,158 
Latin America367,978 3,467 23,163 394,608 
Other140,690 97,908 567,168 805,766 
  Total$3,319,982 3,261,082 2,505,326 9,086,390 
Product Categories
Ceramic & Stone$3,302,446 28,685 — 3,331,131 
Carpet & Resilient17,536 2,547,184 709,148 3,273,868 
Laminate & Wood— 685,213 836,756 1,521,969 
Other (1)
— — 959,422 959,422 
  Total$3,319,982 3,261,082 2,505,326 9,086,390 
(1) Other includes roofing elements, insulation boards, chipboards and IP contracts.
v3.23.3
Restructuring, Acquisition and Integration-Related Costs (Tables)
 9 Months Ended
Sep. 30, 2023
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 and nine months ended September 30, 2023 and October 1, 2022:
Three Months EndedNine Months Ended
September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Cost of sales
Restructuring costs$42,605 30,421 101,225 31,722 
Acquisition integration-related costs55 — 932 349 
  Restructuring and acquisition integration-related costs$42,660 30,421 102,157 32,071 
Selling, general and administrative expenses
Restructuring costs$1,126 2,949 6,929 3,035 
Acquisition transaction-related costs696 481 2,000 1,508 
Acquisition integration-related costs2,598 687 9,779 1,741 
  Restructuring, acquisition transaction and integration-related costs$4,420 4,117 18,708 6,284 
Schedule Of Restructuring Activity The restructuring activity for the three months ended September 30, 2023 is as follows:
Asset write-
downs and
gains on
disposals		SeveranceOther
restructuring
costs		Total
Balance as of July 1, 2023$— 11,740 — 11,740 
Restructuring costs
Global Ceramic 12,569 2,135 75 14,779 
Flooring NA 24,722 (766)3,367 27,323 
Flooring ROW 383 (335)1,419 1,467 
Corporate— 162 — 162 
Total restructuring costs37,674 1,196 4,861 43,731 
Cash payments— (2,861)(741)(3,602)
Non-cash items(37,674)(181)(4,120)(41,975)
Balances as of September 30, 2023$— 9,894 — 9,894 
Restructuring costs recorded in:
Cost of sales$37,648 1,636 3,321 42,605 
Selling, general and administrative expenses26 (440)1,540 1,126 
Total restructuring costs$37,674 1,196 4,861 43,731 
The restructuring activity for the nine months ended September 30, 2023 is as follows:
Lease
impairments		Asset write-
downs and
gains on
disposals		SeveranceOther
restructuring
costs		Total
Balances as of December 31, 2022$— — 10,037 — 10,037 
Restructuring costs
Global Ceramic 255 14,702 7,818 118 22,893 
Flooring NA — 30,828 787 21,110 52,725 
Flooring ROW — 30,135 (334)2,573 32,374 
Corporate— — 162 — 162 
Total restructuring costs255 75,665 8,433 23,801 108,154 
Cash payments— — (8,446)(14,865)(23,311)
Non-cash items(255)(75,665)(130)(8,936)(84,986)
Balances as of September 30, 2023$— — 9,894 — 9,894 
Restructuring costs recorded in:
Cost of sales$— 75,516 4,700 21,009 101,225 
Selling, general and administrative expenses255 149 3,733 2,792 6,929 
Total restructuring costs$255 75,665 8,433 23,801 108,154 
v3.23.3
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule Of Fair Value Measurements
Items Measured at Fair Value

September 30, 2023December 31, 2022
Short-term investments:
Commercial paper (Level 2)$— 158,000 
v3.23.3
Receivables, net (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Schedule Of Net Components Of Receivables
September 30, 2023December 31, 2022
Customers, trade$1,846,374 1,699,130 
Income tax receivable24,625 60,080 
Other143,513 219,355 
Less: allowance for discounts, claims and doubtful accounts71,365 73,779 
Receivables, net$1,943,147 1,904,786 
v3.23.3
Inventories (Tables)
 9 Months Ended
Sep. 30, 2023
Inventory Disclosure [Abstract]  
Schedule Of Net Components Of Inventories
September 30, 2023December 31, 2022
Finished goods$1,757,527 1,986,005 
Work in process168,314 160,757 
Raw materials593,868 647,003 
Total inventories$2,519,709 2,793,765 
v3.23.3
Goodwill and Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule Of Goodwill
The components of goodwill and other intangible assets are as follows:

Goodwill:
Global CeramicFlooring NAFlooring ROWTotal
Balance as of December 31, 2022 (1)
$339,834 591,985 995,940 1,927,759 
Goodwill adjustments related to acquisitions— (4,888)3,217 (1,671)
Goodwill recognized during the period85,892 — — 85,892 
Impairment charges during the period(422,651)(214,830)(231,634)(869,115)
Currency translation during the period(3,075)— (14,356)(17,431)
Balance as of September 30, 2023$— 372,267 753,167 1,125,434 
(1) Net of accumulated impairment losses of $2,015,939 ($1,220,444 in Global Ceramic, $343,054 in Flooring NA and $452,441 in Flooring ROW).
Schedule Of Indefinite Life Assets Not Subject To Amortization
Intangible assets not subject to amortization:    
Tradenames
Balance as of December 31, 2022$668,328 
Intangible assets acquired during the period37,530 
Impairment charges(6,994)
Currency translation during the period(15,063)
Balance as of September 30, 2023$683,801 
Schedule Of Intangible Assets Subject To Amortization
Intangible assets subject to amortization:
Customer
relationships		PatentsOtherTotal
Balance as of December 31, 2022
Gross carrying amount$673,586 242,089 8,511 924,186 
Accumulated amortization(493,361)(239,010)(2,195)(734,566)
Net intangible assets subject to amortization180,225 3,079 6,316 189,620 
Balance as of September 30, 2023
Gross carrying amount670,800 239,113 8,514 918,427 
Accumulated amortization(509,162)(236,535)(2,104)(747,801)
Net intangible assets subject to amortization$161,638 2,578 6,410 170,626 
Schedule Of Intangible Assets Amortization Expense
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Amortization expense$6,975 6,918 21,197 20,917 
v3.23.3
Accounts Payable and Accrued Expenses (Tables)
 9 Months Ended
Sep. 30, 2023
Payables and Accruals [Abstract]  
Schedule Of Accounts Payable And Accrued Expenses
September 30, 2023December 31, 2022
Outstanding checks in excess of cash$911 2,791 
Accounts payable, trade1,082,398 1,094,038 
Accrued expenses741,120 742,099 
Product warranties38,262 38,425 
Accrued interest13,270 8,748 
Accrued compensation and benefits283,538 238,347 
Total accounts payable and accrued expenses$2,159,499 2,124,448 
v3.23.3
Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule Of Accumulated Other Comprehensive Income (Loss)
 Foreign currency
translation adjustments		Prior pension and post-
retirement benefit service
 cost and actuarial gain (loss)		Total
Balance as of December 31, 2022$(1,114,629)371 (1,114,258)
Current period other comprehensive income (loss)(178,348)(520)(178,868)
Balance as of September 30, 2023$(1,292,977)(149)(1,293,126)
v3.23.3
Other (Income) Expense, net (Tables)
 9 Months Ended
Sep. 30, 2023
Other Nonoperating Income (Expense) [Abstract]  
Schedule Of Other (Income) Expense, Net
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Foreign currency (gains) losses, net$(142)6,032 11,644 6,476 
Release of indemnification asset— — — 7,324 
All other, net(8,409)(7,274)(18,546)(15,422)
Total other (income) expense, net$(8,551)(1,242)(6,902)(1,622)
v3.23.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule Of Changes In Stockholders' Equity
The following tables reflect the changes in stockholders’ equity for the three months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balance as of July 1, 202371,018 $710 $1,937,320 $7,591,215 ($1,107,742)(7,338)($215,397)$5,914 $8,212,020 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards2 — (96)— — — — — (96)
Stock-based compensation expense— — 5,350 — — — — — 5,350 
Net earnings attributable to noncontrolling interests— — — — — — — 170 170 
Currency translation adjustment on noncontrolling interests— — — — — — — (211)(211)
Currency translation adjustment— — — — (185,372)— — — (185,372)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (12)— — — (12)
Net earnings— — — (760,459)— — — — (760,459)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interests		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of July 2, 202270,878 $709 $1,919,742 $7,910,657 ($1,014,999)(7,341)($215,491)$6,320 $8,606,938 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards— — (27)— — — — — (27)
Stock-based compensation expense— — 6,179 — — — — — 6,179 
Repurchases of common stock(3)— — (384)— — — — (384)
Net earnings attributable to noncontrolling interests— — — — — — — 256 256 
Currency translation adjustment on noncontrolling interests— — — — — — — (273)(273)
Purchase of noncontrolling interest, net of taxes— — — — — — — 1 1 
Currency translation adjustment— — — — (253,729)— — — (253,729)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 65 — — — 65 
Net earnings— — — (533,969)— — — — (533,969)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 
The following tables reflect the changes in stockholders’ equity for the nine months ended September 30, 2023 and October 1, 2022 (in thousands).
 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of December 31, 202270,875 $709 $1,930,789 $7,409,760 ($1,114,258)(7,341)($215,491)$6,405 $8,017,914 
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards145 1 (4,001)— — 3 94 — (3,906)
Stock-based compensation expense— — 15,733 — — — — — 15,733 
Net earnings attributable to noncontrolling interests— — — — — — — 205 205 
Currency translation adjustment on noncontrolling interests— — — — — — — (584)(584)
Purchase of noncontrolling interest, net of taxes— — 53 — — — — (153)(100)
Currency translation adjustment— — — — (178,348)— — — (178,348)
Prior pension and post-retirement benefit service cost and actuarial loss— — — — (520)— — — (520)
Net earnings— — — (579,004)— — — — (579,004)
Balances as of September 30, 202371,020 $710 $1,942,574 $6,830,756 ($1,293,126)(7,338)($215,397)$5,873 $7,271,390 

 Total Stockholders’ Equity
 Common StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Stockholders’
Equity
 SharesAmountSharesAmount
Balances as of 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 plans, net of shares withheld to pay taxes on employees’ equity awards107 1 (3,297)— — 2 56 — (3,240)
Stock-based compensation expense— — 17,488 — — — — — 17,488 
Repurchases of common stock(2,184)(21)— (307,551)— — — — (307,572)
Net earnings attributable to noncontrolling interests— — — — — — — 440 440 
Currency translation adjustment on noncontrolling interests— — — — — — — (1)(1)
Purchase of noncontrolling interest, net of taxes— — 572 — — — — (926)(354)
Currency translation adjustment— — — (302,383)— — — (302,383)
Prior pension and post-retirement benefit service cost and actuarial gain— — — — 672 — — — 672 
Net earnings— — — (8,209)— — — — (8,209)
Balances as of October 1, 202270,875 $709 $1,925,894 $7,376,304 ($1,268,663)(7,341)($215,491)$6,304 $7,825,057 
v3.23.3
Earnings (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Schedule Of Earnings (Loss) Per Share A reconciliation of net earnings (loss) attributable to Mohawk Industries, Inc. and weighted-average common shares outstanding for purposes of calculating basic and diluted earnings (loss) per share is as follows:    
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net earnings (loss) attributable to Mohawk Industries, Inc.$(760,459)(533,969)(579,004)(8,209)
Weighted-average common shares outstanding—basic and diluted:
Weighted-average common shares outstanding—basic63,682 63,534 63,648 63,923 
Add weighted-average dilutive potential common shares—options to purchase common shares and RSUs, net(1)
— — — — 
Weighted-average common shares outstanding-diluted63,682 63,534 63,648 63,923 
Earnings (loss) per share attributable to Mohawk Industries, Inc.
Basic$(11.94)(8.40)(9.10)(0.13)
Diluted$(11.94)(8.40)(9.10)(0.13)
(1) Due to the anti-dilutive effect, 252 and 235 shares of common stock equivalents for the three and nine months ended September 30, 2023, respectively, were omitted from the calculation of diluted weighted-average common shares outstanding. Due to the anti dilutive effect, 257 and 246 shares of common stock equivalents for the three and nine months ended October 1, 2022, respectively, were omitted from the calculation of diluted weighted-average common shares outstanding.
v3.23.3
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Information
 Three Months EndedNine Months Ended
 September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net sales:
Global Ceramic $1,091,672 1,096,656 3,306,368 3,319,982 
Flooring NA 962,222 1,089,634 2,917,337 3,261,082 
Flooring ROW 712,292 731,249 2,299,132 2,505,326 
Total$2,766,186 2,917,539 8,522,837 9,086,390 
Operating income (loss):
Global Ceramic $(355,304)(559,706)(207,953)(305,099)
Flooring NA (166,973)64,672 (131,787)260,026 
Flooring ROW (159,569)45,508 2,590 304,265 
Corporate and intersegment eliminations(51,896)(56,063)(117,756)(76,053)
Total$(733,742)(505,589)(454,906)183,139 

September 30, 2023December 31, 2022
Assets:
Global Ceramic $4,905,861 4,841,310 
Flooring NA 3,911,708 4,299,360 
Flooring ROW 3,857,628 4,275,519 
Corporate and intersegment eliminations463,298 704,243 
Total$13,138,495 14,120,432 
v3.23.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2023
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:
 September 30, 2023December 31, 2022
 Fair ValueCarrying
Value		Fair ValueCarrying
Value
1.750% Senior Notes, payable June 12, 2027; interest payable annually
$484,591 528,597 482,139 535,103 
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually
436,905 500,000 431,605 500,000 
5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually
596,400 600,000 — — 
U.S. commercial paper— — 785,998 785,998 
European commercial paper— — 42,808 42,808 
U.S. Term Loan Facility675,000 675,000 675,000 675,000 
European Term Loan Facility232,583 232,583 235,445 235,445 
Finance leases and other73,718 73,718 52,050 52,050 
Unamortized debt issuance costs(11,611)(11,611)(7,270)(7,270)
Total debt2,487,586 2,598,287 2,697,775 2,819,134 
Less current portion of long term-debt and commercial paper922,697 922,697 840,571 840,571 
Long-term debt, less current portion$1,564,889 1,675,590 1,857,204 1,978,563 
v3.23.3
Supplemental Cash Flow Information (Tables)
 9 Months Ended
Sep. 30, 2023
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information
Nine Months Ended
September 30, 2023October 1, 2022
Net cash paid during the periods for:
Interest$70,757 50,627 
Income taxes$128,607 193,895 
Supplemental schedule of non-cash investing and financing activities:
Unpaid property plant and equipment in accounts payable and accrued expenses$88,020 82,250 
ROU assets obtained in exchange for lease obligations:
Operating leases$111,895 97,473 
Finance leases$25,658 11,332 
v3.23.3
Acquisitions - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 01, 2023
USD ($)
acquisition
Dec. 31, 2022
USD ($)
acquisition
Sep. 30, 2023
USD ($)
Business Acquisition [Line Items]      
Goodwill   $ 1,927,759 $ 1,125,434
2023 Acquisitions      
Business Acquisition [Line Items]      
Net consideration transferred (net of cash acquired) $ 515,509    
Global Ceramic | 2023 Acquisitions      
Business Acquisition [Line Items]      
Number of acquisitions | acquisition 2    
Net consideration transferred (net of cash acquired) $ 515,509    
Elizabeth Revestlmentos Segment | 2023 Acquisitions      
Business Acquisition [Line Items]      
Goodwill $ 85,892    
Flooring North America Segment | 2022 Acquisitions      
Business Acquisition [Line Items]      
Number of acquisitions | acquisition   2  
Goodwill   $ 55,954  
Purchase agreement price   164,475  
Intangible assets subject to amortization   $ 19,900  
Flooring ROW | 2022 Acquisitions      
Business Acquisition [Line Items]      
Number of acquisitions | acquisition   3  
Goodwill   $ 14,759  
Purchase agreement price   47,964  
Intangible assets subject to amortization   $ 3,376  
v3.23.3
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Apr. 01, 2023
Dec. 31, 2022
Business Acquisition [Line Items]      
Goodwill $ 1,125,434   $ 1,927,759
2023 Acquisitions      
Business Acquisition [Line Items]      
Working capital   $ 95,336  
Property, plant and equipment   333,495  
Long-term debt, including current portion   (26,072)  
Deferred tax, net   (8,460)  
Net assets acquired   522,770  
Less: cash acquired   (7,261)  
Net consideration transferred (net of cash acquired)   515,509  
2023 Acquisitions | Tradenames      
Business Acquisition [Line Items]      
Intangible assets   38,539  
2023 Acquisitions | Customer relationships      
Business Acquisition [Line Items]      
Intangible assets   $ 4,040  
v3.23.3
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]          
Contract liability $ 68,932,000   $ 68,932,000   $ 72,572,000
Revenue recognized related to contract liabilities 0 $ 0 0 $ 0  
Capitalized contract cost $ 70,260,000   70,260,000   $ 59,015,000
Amortization of capitalized contract costs     $ 45,714,000 $ 38,394,000  
v3.23.3
Revenue from Contracts with Customers - Summary of Disaggregated Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Disaggregation of Revenue [Line Items]        
Net sales $ 2,766,186 $ 2,917,539 $ 8,522,837 $ 9,086,390
Ceramic & Stone        
Disaggregation of Revenue [Line Items]        
Net sales 1,090,089 1,099,235 3,303,948 3,331,131
Carpet & Resilient        
Disaggregation of Revenue [Line Items]        
Net sales 991,000 1,069,452 2,795,572 3,273,868
Laminate & Wood        
Disaggregation of Revenue [Line Items]        
Net sales 418,465 473,384 1,533,775 1,521,969
Other        
Disaggregation of Revenue [Line Items]        
Net sales 266,632 275,468 889,542 959,422
United States        
Disaggregation of Revenue [Line Items]        
Net sales 1,519,460 1,674,840 4,630,541 4,989,858
Europe        
Disaggregation of Revenue [Line Items]        
Net sales 792,971 860,783 2,606,919 2,896,158
Latin America        
Disaggregation of Revenue [Line Items]        
Net sales 212,662 131,870 571,134 394,608
Other        
Disaggregation of Revenue [Line Items]        
Net sales 241,093 250,046 714,243 805,766
Operating segments | Global Ceramic        
Disaggregation of Revenue [Line Items]        
Net sales 1,091,672 1,096,656 3,306,368 3,319,982
Operating segments | Global Ceramic | Ceramic & Stone        
Disaggregation of Revenue [Line Items]        
Net sales 1,081,322 1,089,593 3,276,681 3,302,446
Operating segments | Global Ceramic | Carpet & Resilient        
Disaggregation of Revenue [Line Items]        
Net sales 10,350 7,063 29,687 17,536
Operating segments | Global Ceramic | Laminate & Wood        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Operating segments | Global Ceramic | Other        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Operating segments | Global Ceramic | United States        
Disaggregation of Revenue [Line Items]        
Net sales 586,496 614,460 1,794,740 1,825,304
Operating segments | Global Ceramic | Europe        
Disaggregation of Revenue [Line Items]        
Net sales 258,863 314,412 829,633 986,010
Operating segments | Global Ceramic | Latin America        
Disaggregation of Revenue [Line Items]        
Net sales 201,632 122,723 543,963 367,978
Operating segments | Global Ceramic | Other        
Disaggregation of Revenue [Line Items]        
Net sales 44,681 45,061 138,032 140,690
Operating segments | Flooring NA        
Disaggregation of Revenue [Line Items]        
Net sales 962,222 1,089,634 2,917,337 3,261,082
Operating segments | Flooring NA | Ceramic & Stone        
Disaggregation of Revenue [Line Items]        
Net sales 8,767 9,642 27,267 28,685
Operating segments | Flooring NA | Carpet & Resilient        
Disaggregation of Revenue [Line Items]        
Net sales 757,441 842,069 2,299,216 2,547,184
Operating segments | Flooring NA | Laminate & Wood        
Disaggregation of Revenue [Line Items]        
Net sales 196,014 237,923 590,854 685,213
Operating segments | Flooring NA | Other        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Operating segments | Flooring NA | United States        
Disaggregation of Revenue [Line Items]        
Net sales 931,678 1,056,596 2,831,014 3,153,752
Operating segments | Flooring NA | Europe        
Disaggregation of Revenue [Line Items]        
Net sales 1,370 2,079 1,662 5,955
Operating segments | Flooring NA | Latin America        
Disaggregation of Revenue [Line Items]        
Net sales 1,346 1,309 2,912 3,467
Operating segments | Flooring NA | Other        
Disaggregation of Revenue [Line Items]        
Net sales 27,828 29,650 81,749 97,908
Operating segments | Flooring ROW        
Disaggregation of Revenue [Line Items]        
Net sales 712,292 731,249 2,299,132 2,505,326
Operating segments | Flooring ROW | Ceramic & Stone        
Disaggregation of Revenue [Line Items]        
Net sales 0 0 0 0
Operating segments | Flooring ROW | Carpet & Resilient        
Disaggregation of Revenue [Line Items]        
Net sales 223,209 220,320 466,669 709,148
Operating segments | Flooring ROW | Laminate & Wood        
Disaggregation of Revenue [Line Items]        
Net sales 222,451 235,461 942,921 836,756
Operating segments | Flooring ROW | Other        
Disaggregation of Revenue [Line Items]        
Net sales 266,632 275,468 889,542 959,422
Operating segments | Flooring ROW | United States        
Disaggregation of Revenue [Line Items]        
Net sales 1,286 3,784 4,787 10,802
Operating segments | Flooring ROW | Europe        
Disaggregation of Revenue [Line Items]        
Net sales 532,738 544,292 1,775,624 1,904,193
Operating segments | Flooring ROW | Latin America        
Disaggregation of Revenue [Line Items]        
Net sales 9,684 7,838 24,259 23,163
Operating segments | Flooring ROW | Other        
Disaggregation of Revenue [Line Items]        
Net sales $ 168,584 $ 175,335 $ 494,462 $ 567,168
v3.23.3
Restructuring, Acquisition and Integration-Related Costs - Schedule of Restructuring, Acquisition Transaction and Integration-Related Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Restructuring Cost and Reserve [Line Items]        
Restructuring costs $ 43,731   $ 108,154  
Cost of sales        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs 42,605 $ 30,421 101,225 $ 31,722
Acquisition integration-related costs 55 0 932 349
Restructuring, acquisition transaction and integration-related costs 42,660 30,421 102,157 32,071
Selling, general and administrative expenses        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs 1,126 2,949 6,929 3,035
Acquisition transaction-related costs 696 481 2,000 1,508
Acquisition integration-related costs 2,598 687 9,779 1,741
Restructuring, acquisition transaction and integration-related costs $ 4,420 $ 4,117 $ 18,708 $ 6,284
v3.23.3
Restructuring, Acquisition and Integration-Related Costs - Restructuring Activity (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Restructuring Reserve [Roll Forward]        
Beginning balance $ 11,740   $ 10,037  
Restructuring costs 43,731   108,154  
Cash payments (3,602)   (23,311)  
Non-cash items (41,975)   (84,986)  
Ending balance 9,894   9,894  
Cost of sales        
Restructuring Reserve [Roll Forward]        
Restructuring costs 42,605 $ 30,421 101,225 $ 31,722
Selling, general and administrative expenses        
Restructuring Reserve [Roll Forward]        
Restructuring costs 1,126 $ 2,949 6,929 $ 3,035
Lease impairments        
Restructuring Reserve [Roll Forward]        
Beginning balance     0  
Restructuring costs     255  
Cash payments     0  
Non-cash items     (255)  
Ending balance 0   0  
Lease impairments | Cost of sales        
Restructuring Reserve [Roll Forward]        
Restructuring costs     0  
Lease impairments | Selling, general and administrative expenses        
Restructuring Reserve [Roll Forward]        
Restructuring costs     255  
Asset write- downs and gains on disposals        
Restructuring Reserve [Roll Forward]        
Beginning balance 0   0  
Restructuring costs 37,674   75,665  
Cash payments 0   0  
Non-cash items (37,674)   (75,665)  
Ending balance 0   0  
Asset write- downs and gains on disposals | Cost of sales        
Restructuring Reserve [Roll Forward]        
Restructuring costs 37,648   75,516  
Asset write- downs and gains on disposals | Selling, general and administrative expenses        
Restructuring Reserve [Roll Forward]        
Restructuring costs 26   149  
Severance        
Restructuring Reserve [Roll Forward]        
Beginning balance 11,740   10,037  
Restructuring costs 1,196   8,433  
Cash payments (2,861)   (8,446)  
Non-cash items (181)   (130)  
Ending balance 9,894   9,894  
Severance | Cost of sales        
Restructuring Reserve [Roll Forward]        
Restructuring costs 1,636   4,700  
Severance | Selling, general and administrative expenses        
Restructuring Reserve [Roll Forward]        
Restructuring costs (440)   3,733  
Other restructuring costs        
Restructuring Reserve [Roll Forward]        
Beginning balance 0   0  
Restructuring costs 4,861   23,801  
Cash payments (741)   (14,865)  
Non-cash items (4,120)   (8,936)  
Ending balance 0   0  
Other restructuring costs | Cost of sales        
Restructuring Reserve [Roll Forward]        
Restructuring costs 3,321   21,009  
Other restructuring costs | Selling, general and administrative expenses        
Restructuring Reserve [Roll Forward]        
Restructuring costs 1,540   2,792  
Operating segments | Global Ceramic        
Restructuring Reserve [Roll Forward]        
Restructuring costs 14,779   22,893  
Operating segments | Flooring NA        
Restructuring Reserve [Roll Forward]        
Restructuring costs 27,323   52,725  
Operating segments | Flooring ROW        
Restructuring Reserve [Roll Forward]        
Restructuring costs 1,467   32,374  
Operating segments | Lease impairments | Global Ceramic        
Restructuring Reserve [Roll Forward]        
Restructuring costs     255  
Operating segments | Lease impairments | Flooring NA        
Restructuring Reserve [Roll Forward]        
Restructuring costs     0  
Operating segments | Lease impairments | Flooring ROW        
Restructuring Reserve [Roll Forward]        
Restructuring costs     0  
Operating segments | Asset write- downs and gains on disposals | Global Ceramic        
Restructuring Reserve [Roll Forward]        
Restructuring costs 12,569   14,702  
Operating segments | Asset write- downs and gains on disposals | Flooring NA        
Restructuring Reserve [Roll Forward]        
Restructuring costs 24,722   30,828  
Operating segments | Asset write- downs and gains on disposals | Flooring ROW        
Restructuring Reserve [Roll Forward]        
Restructuring costs 383   30,135  
Operating segments | Severance | Global Ceramic        
Restructuring Reserve [Roll Forward]        
Restructuring costs 2,135   7,818  
Operating segments | Severance | Flooring NA        
Restructuring Reserve [Roll Forward]        
Restructuring costs (766)   787  
Operating segments | Severance | Flooring ROW        
Restructuring Reserve [Roll Forward]        
Restructuring costs (335)   (334)  
Operating segments | Other restructuring costs | Global Ceramic        
Restructuring Reserve [Roll Forward]        
Restructuring costs 75   118  
Operating segments | Other restructuring costs | Flooring NA        
Restructuring Reserve [Roll Forward]        
Restructuring costs 3,367   21,110  
Operating segments | Other restructuring costs | Flooring ROW        
Restructuring Reserve [Roll Forward]        
Restructuring costs 1,419   2,573  
Corporate        
Restructuring Reserve [Roll Forward]        
Restructuring costs 162   162  
Corporate | Lease impairments        
Restructuring Reserve [Roll Forward]        
Restructuring costs     0  
Corporate | Asset write- downs and gains on disposals        
Restructuring Reserve [Roll Forward]        
Restructuring costs 0   0  
Corporate | Severance        
Restructuring Reserve [Roll Forward]        
Restructuring costs 162   162  
Corporate | Other restructuring costs        
Restructuring Reserve [Roll Forward]        
Restructuring costs $ 0   $ 0  
v3.23.3
Fair Value - Schedule of Fair Value Measurements (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Fair value, recurring | Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments $ 0 $ 158,000
v3.23.3
Receivables, net (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Receivables [Abstract]    
Customers, trade $ 1,846,374 $ 1,699,130
Income tax receivable 24,625 60,080
Other 143,513 219,355
Less: allowance for discounts, claims and doubtful accounts 71,365 73,779
Receivables, net $ 1,943,147 $ 1,904,786
v3.23.3
Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]    
Finished goods $ 1,757,527 $ 1,986,005
Work in process 168,314 160,757
Raw materials 593,868 647,003
Total inventories $ 2,519,709 $ 2,793,765
v3.23.3
Goodwill and Intangible Assets - Narrative (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
reportingUnit
Sep. 30, 2023
USD ($)
Goodwill [Line Items]    
Number of reporting units | reportingUnit 3  
Pre-tax, non-cash goodwill impairment charge   $ 869,115
Tradenames    
Goodwill [Line Items]    
Impairment charges $ 6,994  
Impairment of intangible assets net of tax 5,181  
Global Ceramic    
Goodwill [Line Items]    
Pre-tax, non-cash goodwill impairment charge 869,115  
Non-cash goodwill impairment charge , net of tax $ 858,090  
v3.23.3
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Goodwill [Roll Forward]  
Goodwill, net, beginning balance $ 1,927,759,000
Goodwill adjustments related to acquisitions (1,671,000)
Goodwill recognized during the period 85,892,000
Impairment charges during the period (869,115,000)
Currency translation during the period (17,431,000)
Goodwill, net, ending balance 1,125,434,000
Operating segments  
Goodwill [Roll Forward]  
Impairment loss (2,015,939,000)
Operating segments | Global Ceramic  
Goodwill [Roll Forward]  
Goodwill, net, beginning balance 339,834,000
Goodwill adjustments related to acquisitions 0
Goodwill recognized during the period 85,892,000
Impairment charges during the period (422,651,000)
Currency translation during the period (3,075,000)
Goodwill, net, ending balance 0
Impairment loss (1,220,444,000)
Operating segments | Flooring NA  
Goodwill [Roll Forward]  
Goodwill, net, beginning balance 591,985,000
Goodwill adjustments related to acquisitions (4,888,000)
Goodwill recognized during the period 0
Impairment charges during the period (214,830,000)
Currency translation during the period 0
Goodwill, net, ending balance 372,267,000
Impairment loss (343,054,000)
Operating segments | Flooring ROW  
Goodwill [Roll Forward]  
Goodwill, net, beginning balance 995,940,000
Goodwill adjustments related to acquisitions 3,217,000
Goodwill recognized during the period 0
Impairment charges during the period (231,634,000)
Currency translation during the period (14,356,000)
Goodwill, net, ending balance 753,167,000
Impairment loss $ (452,441,000)
v3.23.3
Goodwill and Intangible Assets - Schedule of Indefinite Life Assets Not Subject to Amortization (Details) - Tradenames - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Indefinite-lived Intangible Assets [Roll Forward]    
Beginning balance   $ 668,328
Intangible assets acquired during the period   37,530
Impairment charges $ (6,994)  
Currency translation during the period   (15,063)
Ending balance $ 683,801 $ 683,801
v3.23.3
Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Finite-lived Intangible Assets [Roll Forward]    
Gross carrying amount $ 918,427 $ 924,186
Accumulated amortization (747,801) (734,566)
Net value 170,626 189,620
Customer relationships    
Finite-lived Intangible Assets [Roll Forward]    
Gross carrying amount 670,800 673,586
Accumulated amortization (509,162) (493,361)
Net value 161,638 180,225
Patents    
Finite-lived Intangible Assets [Roll Forward]    
Gross carrying amount 239,113 242,089
Accumulated amortization (236,535) (239,010)
Net value 2,578 3,079
Other    
Finite-lived Intangible Assets [Roll Forward]    
Gross carrying amount 8,514 8,511
Accumulated amortization (2,104) (2,195)
Net value $ 6,410 $ 6,316
v3.23.3
Goodwill and Intangible Assets - Schedule of Intangible Assets Amortization Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense $ 6,975 $ 6,918 $ 21,197 $ 20,917
v3.23.3
Accounts Payable and Accrued Expenses (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Outstanding checks in excess of cash $ 911 $ 2,791
Accounts payable, trade 1,082,398 1,094,038
Accrued expenses 741,120 742,099
Product warranties 38,262 38,425
Accrued interest 13,270 8,748
Accrued compensation and benefits 283,538 238,347
Total accounts payable and accrued expenses $ 2,159,499 $ 2,124,448
v3.23.3
Accumulated Other Comprehensive Income (Loss) (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
Accumulated Other Comprehensive Income Rollforward [Roll Forward]  
Beginning balance $ 8,017,914
Ending balance 7,271,390
Total  
Accumulated Other Comprehensive Income Rollforward [Roll Forward]  
Beginning balance (1,114,258)
Current period other comprehensive income (loss) (178,868)
Ending balance (1,293,126)
Foreign currency translation adjustments  
Accumulated Other Comprehensive Income Rollforward [Roll Forward]  
Beginning balance (1,114,629)
Current period other comprehensive income (loss) (178,348)
Ending balance (1,292,977)
Prior pension and post- retirement benefit service cost and actuarial gain (loss)  
Accumulated Other Comprehensive Income Rollforward [Roll Forward]  
Beginning balance 371
Current period other comprehensive income (loss) (520)
Ending balance $ (149)
v3.23.3
Stock-Based Compensation (Details) - RSUs - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Share Based Compensation Arrangement by Share Based Payment Award [Line Items]        
Number of shares granted in period (in shares) 1,000 0 263,000 189,000
Weighted-average grant-date fair value (in usd per share) $ 103.07   $ 102.09 $ 137.99
Recognized stock-based compensation costs $ 5,349 $ 6,179 $ 15,733 $ 17,488
Recognized stock-based compensation costs, net of tax 3,958 $ 4,572 11,642 $ 12,941
Pre-tax unrecognized compensation expense, net of forfeitures $ 23,786   $ 23,786  
Recognized expense over a weighted-average period (years)     1 year 8 months 12 days  
v3.23.3
Other (Income) Expense, net (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Other Nonoperating Income (Expense) [Abstract]        
Foreign currency (gains) losses, net $ (142) $ 6,032 $ 11,644 $ 6,476
Release of indemnification asset 0 0 0 7,324
All other, net (8,409) (7,274) (18,546) (15,422)
Total other (income) expense, net $ (8,551) $ (1,242) $ (6,902) $ (1,622)
v3.23.3
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Income Tax Disclosure [Abstract]        
Income tax expense $ 14,954 $ 15,569 $ 70,657 $ 155,193
Earnings (loss) before income taxes $ (745,335) $ (518,144) $ (508,142) $ 147,424
Effective tax rate (2.00%) (3.00%) (13.90%) 105.30%
v3.23.3
Stockholders' Equity (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ 8,212,020 $ 8,606,938 $ 8,017,914 $ 8,428,216
Beginning balance (in shares)     70,875  
Beginning balance, treasury stock (in shares)     (7,341)  
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards (96) (27) $ (3,906) (3,240)
Stock-based compensation expense 5,350 6,179 15,733 17,488
Net earnings attributable to noncontrolling interests 170 256 205 440
Repurchases of common stock   (384)   (307,572)
Currency translation adjustment on non-controlling interests (211) (273) (584) (1)
Purchase of noncontrolling interest, net of taxes   1 (100) (354)
Currency translation adjustment (185,372) (253,729) (178,348) (302,383)
Prior pension and post-retirement benefit service cost and actuarial gain (loss) (12) 65 (520) 672
Net earnings (760,459) (533,969) (579,004) (8,209)
Ending balance $ 7,271,390 7,825,057 $ 7,271,390 7,825,057
Ending balance (in shares) 71,020   71,020  
Ending balance, treasury stock (in shares) (7,338)   (7,338)  
Common Stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ 710 $ 709 $ 709 $ 729
Beginning balance (in shares) 71,018 70,878 70,875 72,952
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards     $ 1 $ 1
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards (in shares) 2   145 107
Repurchases of common stock       $ (21)
Repurchases of common stock (in shares)   (3)   (2,184)
Ending balance $ 710 $ 709 $ 710 $ 709
Ending balance (in shares) 71,020 70,875 71,020 70,875
Additional Paid-in Capital        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ 1,937,320 $ 1,919,742 $ 1,930,789 $ 1,911,131
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards (96) (27) (4,001) (3,297)
Stock-based compensation expense 5,350 6,179 15,733 17,488
Purchase of noncontrolling interest, net of taxes     53 572
Ending balance 1,942,574 1,925,894 1,942,574 1,925,894
Retained Earnings        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance 7,591,215 7,910,657 7,409,760 7,692,064
Repurchases of common stock   (384)   (307,551)
Net earnings (760,459) (533,969) (579,004) (8,209)
Ending balance 6,830,756 7,376,304 6,830,756 7,376,304
Accumulated Other Comprehensive Income (Loss)        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance (1,107,742) (1,014,999) (1,114,258) (966,952)
Currency translation adjustment (185,372) (253,729) (178,348) (302,383)
Prior pension and post-retirement benefit service cost and actuarial gain (loss) (12) 65 (520) 672
Ending balance (1,293,126) (1,268,663) (1,293,126) (1,268,663)
Treasury Stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ (215,397) $ (215,491) $ (215,491) $ (215,547)
Beginning balance, treasury stock (in shares) (7,338) (7,341) (7,341) (7,343)
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards     $ 94 $ 56
Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees’ equity awards (in shares)     3 2
Ending balance $ (215,397) $ (215,491) $ (215,397) $ (215,491)
Ending balance, treasury stock (in shares) (7,338) (7,341) (7,338) (7,341)
Noncontrolling Interest        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ 5,914 $ 6,320 $ 6,405 $ 6,791
Net earnings attributable to noncontrolling interests 170 256 205 440
Currency translation adjustment on non-controlling interests (211) (273) (584) (1)
Purchase of noncontrolling interest, net of taxes   1 (153) (926)
Ending balance $ 5,873 $ 6,304 $ 5,873 $ 6,304
v3.23.3
Earnings (Loss) Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Sep. 30, 2023
Oct. 01, 2022
Earnings Per Share [Abstract]        
Net earnings (loss) attributable to Mohawk Industries, Inc. $ (760,459) $ (533,969) $ (579,004) $ (8,209)
Weighted-average common shares outstanding—basic and diluted:        
Weighted-average common shares outstanding-basic (in shares) 63,682,000 63,534,000 63,648,000 63,923,000
Add weighted-average dilutive potential common shares-options to purchase common shares and RSUs, net (in shares) 0 0 0 0
Weighted-average common shares outstanding-diluted (in shares) 63,682,000 63,534,000 63,648,000 63,923,000
Earnings (loss) per share attributable to Mohawk Industries, Inc.        
Basic (in usd per share) $ (11.94) $ (8.40) $ (9.10) $ (0.13)
Diluted (in usd per share) $ (11.94) $ (8.40) $ (9.10) $ (0.13)
Incremental common shares anti dilutive effect (in shares) 252 257 235 246
v3.23.3
Segment Reporting (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Oct. 01, 2022
USD ($)
Sep. 30, 2023
USD ($)
segment
Oct. 01, 2022
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting [Abstract]          
Number of reportable segments | segment     3    
Segment Reporting Information [Line Items]          
Net sales $ 2,766,186 $ 2,917,539 $ 8,522,837 $ 9,086,390  
Operating (loss) income (733,742) (505,589) (454,906) 183,139  
Assets 13,138,495   13,138,495   $ 14,120,432
Operating segments | Global Ceramic          
Segment Reporting Information [Line Items]          
Net sales 1,091,672 1,096,656 3,306,368 3,319,982  
Operating (loss) income (355,304) (559,706) (207,953) (305,099)  
Assets 4,905,861   4,905,861   4,841,310
Operating segments | Flooring NA          
Segment Reporting Information [Line Items]          
Net sales 962,222 1,089,634 2,917,337 3,261,082  
Operating (loss) income (166,973) 64,672 (131,787) 260,026  
Assets 3,911,708   3,911,708   4,299,360
Operating segments | Flooring ROW          
Segment Reporting Information [Line Items]          
Net sales 712,292 731,249 2,299,132 2,505,326  
Operating (loss) income (159,569) 45,508 2,590 304,265  
Assets 3,857,628   3,857,628   4,275,519
Corporate and intersegment eliminations          
Segment Reporting Information [Line Items]          
Operating (loss) income (51,896) $ (56,063) (117,756) $ (76,053)  
Assets $ 463,298   $ 463,298   $ 704,243
v3.23.3
Commitments and Contingencies (Details)
$ in Millions
 10 Months Ended 13 Months Ended
Oct. 04, 2023
complaint
Dec. 13, 2022
USD ($)
Jan. 28, 2022
complaint
Oct. 05, 2021
complaint
Jun. 28, 2021
complaint
Apr. 26, 2022
lawsuit
May 11, 2022
complaint
Schedule Of Commitments And Contingencies [Line Items]              
Settlement amount | $   $ 60          
Number of complaints             5
Subsequent event              
Schedule Of Commitments And Contingencies [Line Items]              
Number of complaints 4            
Pending litigation              
Schedule Of Commitments And Contingencies [Line Items]              
Number of class action lawsuits | lawsuit           3  
Georgia State Court Investor Actions              
Schedule Of Commitments And Contingencies [Line Items]              
Number of complaints         4    
Georgia State Court Investor Actions | Pending litigation              
Schedule Of Commitments And Contingencies [Line Items]              
Number of complaints       4      
Georgia State Court Investor Actions | Partially granted and denied litigation              
Schedule Of Commitments And Contingencies [Line Items]              
Number of complaints     4        
v3.23.3
Debt - Senior Credit Facility (Details)
 9 Months Ended
Aug. 12, 2022
USD ($)
Oct. 18, 2019
time
Sep. 30, 2023
USD ($)
Oct. 18, 2024
USD ($)
Dec. 31, 2022
USD ($)
Secured Credit Facility          
Line of Credit Facility [Line Items]          
Extension period multiplier (in times) | time   2      
Extension period   1 year      
Consolidated interest coverage ratio   3.00      
Unamortized financing costs         $ 2,663,000
Utilized borrowings under credit facility     $ 746,000    
Available amount under credit facility     1,949,254,000    
Secured Credit Facility | Borrowings          
Line of Credit Facility [Line Items]          
Utilized borrowings under credit facility     0    
Secured Credit Facility | Standby letters of credit          
Line of Credit Facility [Line Items]          
Utilized borrowings under credit facility     $ 746,000    
2022 Amended Senior Secured Credit Facility          
Line of Credit Facility [Line Items]          
Consolidated interest coverage ratio 3.50        
Maximum borrowing capacity under credit facility $ 1,950,000,000        
Maximum commitment amount $ 600,000,000        
Commitment fee percentage     0.11%    
Unamortized financing costs         $ 1,879,000
2022 Amended Senior Secured Credit Facility | Forecast          
Line of Credit Facility [Line Items]          
Maximum borrowing capacity under credit facility       $ 1,485,000,000  
2022 Amended Senior Secured Credit Facility | SOFR          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 0.10%   1.13%    
2022 Amended Senior Secured Credit Facility | Federal Funds Effective Swap Rate          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 0.50%        
2022 Amended Senior Secured Credit Facility | Monthly LIBOR          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 1.00%   0.13%    
2022 Amended Senior Secured Credit Facility | Minimum          
Line of Credit Facility [Line Items]          
Commitment fee percentage 0.09%        
2022 Amended Senior Secured Credit Facility | Minimum | SOFR          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 1.00%        
2022 Amended Senior Secured Credit Facility | Minimum | Monthly LIBOR          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 0.00%        
2022 Amended Senior Secured Credit Facility | Minimum | Foreign Currencies Rate          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 1.00%        
2022 Amended Senior Secured Credit Facility | Minimum | Base Rate          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 0.00%        
2022 Amended Senior Secured Credit Facility | Maximum          
Line of Credit Facility [Line Items]          
Commitment fee percentage 0.20%        
2022 Amended Senior Secured Credit Facility | Maximum | SOFR          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 1.75%        
2022 Amended Senior Secured Credit Facility | Maximum | Monthly LIBOR          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 0.75%        
2022 Amended Senior Secured Credit Facility | Maximum | Foreign Currencies Rate          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 1.75%        
2022 Amended Senior Secured Credit Facility | Maximum | Base Rate          
Line of Credit Facility [Line Items]          
Basis spread on debt instrument (as a percent) 0.75%        
v3.23.3
Debt - Commercial Paper (Details) - USD ($)
Jul. 31, 2015
Feb. 28, 2014
Sep. 30, 2023
Dec. 31, 2022
Oct. 18, 2019
United States | Carrying Value          
Line of Credit Facility [Line Items]          
Commercial paper     $ 0 $ 785,998,000  
United States | Commercial paper          
Line of Credit Facility [Line Items]          
Maturity period of debt   397 days      
Maximum borrowing capacity under credit facility         $ 1,950,000,000
Europe | Carrying Value          
Line of Credit Facility [Line Items]          
Commercial paper     $ 0 $ 42,808,000  
Europe | Commercial paper          
Line of Credit Facility [Line Items]          
Maturity period of debt 183 days        
v3.23.3
Debt - Senior Notes (Details)
 9 Months Ended
Sep. 18, 2023
USD ($)
Jun. 12, 2020
USD ($)
May 14, 2020
USD ($)
Jan. 31, 2013
USD ($)
Sep. 30, 2023
USD ($)
Oct. 01, 2022
USD ($)
Dec. 31, 2022
Nov. 01, 2022
Jun. 12, 2020
EUR (€)
Debt Instrument [Line Items]                  
Payment of financing costs         $ 5,592,000 $ 1,621,000      
5.850% Senior Notes Due September 18, 2028 | Senior notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debts $ 600,000,000                
Interest rate (as a percent) 5.85%                
Payment of financing costs $ 5,592,000                
1.750% Senior Notes Due June 12, 2027 | Senior notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debts | €                 € 500,000,000
Interest rate (as a percent)         1.75%   1.75%   1.75%
Payment of financing costs   $ 4,400,000              
3.625% Senior Notes Due May 15, 2030 | Senior notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debts     $ 500,000,000            
Interest rate (as a percent)     3.625%   3.625%   3.625%    
Payment of financing costs     $ 5,476,000            
3.85% Senior Notes Due February 1, 2023 | Senior notes                  
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          
v3.23.3
Debt - Term Loan (Details) - Secured debt
 9 Months Ended 12 Months Ended
Dec. 06, 2022
EUR (€)
Oct. 31, 2022
USD ($)
Aug. 12, 2022
USD ($)
Sep. 30, 2023
Dec. 31, 2022
USD ($)
Oct. 03, 2022
USD ($)
Aug. 12, 2022
EUR (€)
Term Loan One              
Debt Instrument [Line Items]              
Maximum borrowing capacity     $ 575,000,000        
Line of credit facility, maximum amount outstanding during period   $ 675,000,000          
Payments of financing costs         $ 664,000    
Term Loan Two              
Debt Instrument [Line Items]              
Maximum borrowing capacity | €             € 220,000,000
Line of credit facility, maximum amount outstanding during period | € € 220,000,000            
Term loan              
Debt Instrument [Line Items]              
Additional borrowing capacity           $ 100,000,000  
Consolidated interest coverage ratio     3.5       3.5
Term loan | SOFR              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     0.10%        
Term loan | Federal Funds Effective Swap Rate              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     0.50%        
Term loan | Monthly SOFR              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     1.00%        
Term loan | Minimum | SOFR              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     0.825% 0.90%      
Term loan | Minimum | Base Rate              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     0.00% 0.00%      
Term loan | Minimum | Euro Interbank Offered Rate (EURIBOR)              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     0.825%        
Term loan | Maximum | SOFR              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     1.50%        
Term loan | Maximum | Base Rate              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     0.50%        
Term loan | Maximum | Euro Interbank Offered Rate (EURIBOR)              
Debt Instrument [Line Items]              
Basis spread on debt instrument (as a percent)     1.50%        
v3.23.3
Debt - Fair Value and Carrying Value of Debt Instruments (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Jun. 12, 2020
May 14, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Less current portion of long term-debt and commercial paper $ 922,697,000 $ 840,571,000    
1.750% Senior Notes, payable June 12, 2027; interest payable annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Interest rate (as a percent) 1.75% 1.75% 1.75%  
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Interest rate (as a percent) 3.625% 3.625%   3.625%
5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Interest rate (as a percent) 5.85% 5.85%    
Fair Value        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Finance leases and other $ 73,718,000 $ 52,050,000    
Unamortized debt issuance costs (11,611,000) (7,270,000)    
Total debt 2,487,586,000 2,697,775,000    
Less current portion of long term-debt and commercial paper 922,697,000 840,571,000    
Long-term debt, less current portion 1,564,889,000 1,857,204,000    
Fair Value | United States        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Commercial paper 0 785,998,000    
Term Loan Facility 675,000,000 675,000,000    
Fair Value | Europe        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Commercial paper 0 42,808,000    
Term Loan Facility 232,583,000 235,445,000    
Fair Value | 1.750% Senior Notes, payable June 12, 2027; interest payable annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Notes payable 484,591,000 482,139,000    
Fair Value | 3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Notes payable 436,905,000 431,605,000    
Fair Value | 5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Notes payable 596,400,000 0    
Carrying Value        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Finance leases and other 73,718,000 52,050,000    
Unamortized debt issuance costs (11,611,000) (7,270,000)    
Total debt 2,598,287,000 2,819,134,000    
Less current portion of long term-debt and commercial paper 922,697,000 840,571,000    
Long-term debt, less current portion 1,675,590,000 1,978,563,000    
Carrying Value | United States        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Commercial paper 0 785,998,000    
Term Loan Facility 675,000,000 675,000,000    
Carrying Value | Europe        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Commercial paper 0 42,808,000    
Term Loan Facility 232,583,000 235,445,000    
Carrying Value | 1.750% Senior Notes, payable June 12, 2027; interest payable annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Notes payable 528,597,000 535,103,000    
Carrying Value | 3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Notes payable 500,000,000 500,000,000    
Carrying Value | 5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually | Senior notes        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Notes payable $ 600,000,000 $ 0    
v3.23.3
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Oct. 01, 2022
Net cash paid during the periods for:    
Interest $ 70,757 $ 50,627
Income taxes 128,607 193,895
Supplemental schedule of non-cash investing and financing activities:    
Unpaid property plant and equipment in accounts payable and accrued expenses 88,020 82,250
ROU assets obtained in exchange for lease obligations:    
Operating leases 111,895 97,473
Finance leases $ 25,658 $ 11,332
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