Reconciliation of Net (Loss) Earnings Attributable to Mohawk Industries, Inc. to Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted Diluted Earnings Per Share Attributable to Mohawk Industries, Inc. |
(Amounts in thousands, except per share data) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
October 1, 2022 |
|
October 2, 2021 |
|
|
Net (loss) earnings attributable to Mohawk Industries, Inc. |
|
$ |
(533,969 |
) |
|
270,978 |
|
|
(8,209 |
) |
|
844,070 |
|
|
|
Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
34,460 |
|
|
1,044 |
|
|
38,118 |
|
|
18,560 |
|
|
|
Acquisitions purchase accounting, including inventory step-up |
|
|
1,401 |
|
|
226 |
|
|
1,544 |
|
|
682 |
|
|
|
Impairment of goodwill and indefinite-lived intangibles |
|
|
695,771 |
|
|
– |
|
|
695,771 |
|
|
– |
|
|
|
Resolution of foreign non-income tax contingencies |
|
|
– |
|
|
– |
|
|
– |
|
|
(6,211 |
) |
|
|
Income tax effect on resolution of foreign non-income tax contingencies |
|
|
– |
|
|
– |
|
|
– |
|
|
2,302 |
|
|
|
One-time tax planning election |
|
|
|
– |
|
|
– |
|
|
– |
|
|
(26,731 |
) |
|
|
Legal settlements and reserves |
|
|
|
45,000 |
|
|
– |
|
|
45,000 |
|
|
– |
|
|
|
Release of indemnification asset |
|
|
|
– |
|
|
– |
|
|
7,324 |
|
|
– |
|
|
|
Income taxes – reversal of uncertain tax position |
|
|
– |
|
|
– |
|
|
(7,324 |
) |
|
– |
|
|
|
Income taxes – impairment of goodwill and indefinite-lived intangibles |
|
|
(10,168 |
) |
|
– |
|
|
(10,168 |
) |
|
– |
|
|
|
Income taxes |
|
|
|
|
(20,487 |
) |
|
(203 |
) |
|
(23,291 |
) |
|
(4,317 |
) |
|
|
Adjusted net earnings attributable to Mohawk Industries, Inc. |
|
$ |
212,008 |
|
|
272,045 |
|
|
738,765 |
|
|
828,355 |
|
|
|
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. |
|
$ |
3.34 |
|
|
3.95 |
|
|
11.56 |
|
|
11.89 |
|
|
|
Weighted-average common shares outstanding – diluted |
|
|
63,534 |
|
|
68,864 |
|
|
63,923 |
|
|
69,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt to Net Debt Less Short-Term Investments |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2022 |
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt |
|
$ |
1,542,139 |
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion |
|
|
|
1,019,984 |
|
|
|
|
|
|
|
|
|
Total debt |
|
|
|
|
2,562,123 |
|
|
|
|
|
|
|
|
|
Less: Cash and cash equivalents |
|
|
|
326,971 |
|
|
|
|
|
|
|
|
|
Net debt |
|
|
|
|
2,235,152 |
|
|
|
|
|
|
|
|
|
Less: Short-term investments |
|
|
|
110,000 |
|
|
|
|
|
|
|
|
|
Net debt less short-term investments |
|
|
$ |
2,125,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income (Loss) to Adjusted EBITDA |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve |
|
|
|
|
Three Months Ended |
|
Months Ended |
|
|
|
|
December 31,2021 |
|
April 2,2022 |
|
July 2,2022 |
|
October 1, 2022 |
|
October 1, 2022 |
Operating income (loss) |
|
|
|
$ |
253,098 |
|
|
320,801 |
|
|
367,927 |
|
|
(505,589 |
) |
|
436,237 |
|
Other income (expense) |
|
|
|
|
(1,140 |
) |
|
(2,438 |
) |
|
2,818 |
|
|
1,242 |
|
|
482 |
|
Net income attributable to noncontrolling interests |
|
|
(11 |
) |
|
(105 |
) |
|
(79 |
) |
|
(256 |
) |
|
(451 |
) |
Depreciation and amortization(1) |
|
|
|
143,411 |
|
|
141,415 |
|
|
141,569 |
|
|
153,466 |
|
|
579,861 |
|
EBITDA |
|
|
|
|
395,358 |
|
|
459,673 |
|
|
512,235 |
|
|
(351,137 |
) |
|
1,016,129 |
|
Restructuring, acquisition and integration-related and other costs |
|
|
4,641 |
|
|
1,857 |
|
|
1,801 |
|
|
21,375 |
|
|
29,674 |
|
Acquisitions purchase accounting, including inventory step-up |
|
|
1,067 |
|
|
– |
|
|
143 |
|
|
1,401 |
|
|
2,611 |
|
Impairment of goodwill and indefinite-lived intangibles |
|
|
– |
|
|
– |
|
|
– |
|
|
695,771 |
|
|
695,771 |
|
Legal settlements and reserves |
|
|
|
– |
|
|
– |
|
|
– |
|
|
45,000 |
|
|
45,000 |
|
Release of indemnification asset |
|
|
|
– |
|
|
7,324 |
|
|
– |
|
|
– |
|
|
7,324 |
|
Adjusted EBITDA |
|
|
|
$ |
401,066 |
|
|
468,854 |
|
|
514,179 |
|
|
412,410 |
|
|
1,796,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt less short-term investments to adjusted EBITDA |
|
|
|
|
|
|
|
|
|
1.2 |
|
(1) Includes accelerated depreciation of $13,085 for Q3 2022. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Sales to Net Sales on a Constant Exchange Rate and on Constant Shipping Days |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
October 1, 2022 |
|
October 2, 2021 |
|
|
Net sales |
|
|
|
$ |
2,917,539 |
|
|
2,817,017 |
|
|
9,086,390 |
|
|
8,439,876 |
|
|
|
Adjustment to net sales on constant shipping days |
|
|
17,504 |
|
|
– |
|
|
49,315 |
|
|
– |
|
|
|
Adjustment to net sales on a constant exchange rate |
|
|
116,782 |
|
|
– |
|
|
327,350 |
|
|
– |
|
|
|
Net sales on a constant exchange rate and constant shipping days |
|
$ |
3,051,825 |
|
|
2,817,017 |
|
|
9,463,055 |
|
|
8,439,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and on Constant Shipping Days |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Global Ceramic |
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Net sales |
|
|
|
$ |
1,096,656 |
|
|
998,444 |
|
|
|
|
|
|
|
Adjustment to segment net sales on constant shipping days |
|
|
4,542 |
|
|
– |
|
|
|
|
|
|
|
Adjustment to segment net sales on a constant exchange rate |
|
|
20,774 |
|
|
– |
|
|
|
|
|
|
|
Segment net sales on a constant exchange rate and constant shipping days |
|
$ |
1,121,972 |
|
|
998,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Sales to Adjusted Segment Net Sales |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Flooring NA |
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Net sales |
|
|
|
$ |
1,089,634 |
|
|
1,050,453 |
|
|
|
|
|
|
|
Rug adjustment |
|
|
|
|
40,000 |
|
|
– |
|
|
|
|
|
|
|
Adjusted segment net sales |
|
$ |
1,129,634 |
|
|
1,050,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Net Sales to Segment Net Sales on a Constant Exchange Rate and on Constant Shipping Days |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Flooring ROW |
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Net sales |
|
|
|
$ |
731,249 |
|
|
768,120 |
|
|
|
|
|
|
|
Adjustment to segment net sales on constant shipping days |
|
|
12,962 |
|
|
– |
|
|
|
|
|
|
|
Adjustment to segment net sales on a constant exchange rate |
|
|
96,008 |
|
|
– |
|
|
|
|
|
|
|
Segment net sales on a constant exchange rate and constant shipping days |
|
$ |
840,219 |
|
|
768,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Gross Profit to Adjusted Gross Profit |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Gross Profit |
|
|
|
$ |
713,661 |
|
|
837,315 |
|
|
|
|
|
|
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
30,422 |
|
|
552 |
|
|
|
|
|
|
|
Acquisitions purchase accounting, including inventory step-up |
|
|
1,401 |
|
|
226 |
|
|
|
|
|
|
|
Adjusted gross profit |
|
|
|
$ |
745,484 |
|
|
838,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
523,479 |
|
|
477,341 |
|
|
|
|
|
|
|
Adjustments to selling, general and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
(4,117 |
) |
|
(521 |
) |
|
|
|
|
|
|
Legal settlements and reserves |
|
|
|
(45,000 |
) |
|
– |
|
|
|
|
|
|
|
Adjusted selling, general and administrative expenses |
|
$ |
474,362 |
|
|
476,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating (Loss) Income to Adjusted Operating Income |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Operating (loss) income |
|
|
|
$ |
(505,589 |
) |
|
359,974 |
|
|
|
|
|
|
|
Adjustments to operating (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
34,539 |
|
|
1,073 |
|
|
|
|
|
|
|
Acquisitions purchase accounting, including inventory step-up |
|
|
1,401 |
|
|
226 |
|
|
|
|
|
|
|
Impairment of goodwill and indefinite-lived intangibles |
|
|
695,771 |
|
|
– |
|
|
|
|
|
|
|
Legal settlements and reserves |
|
|
|
45,000 |
|
|
– |
|
|
|
|
|
|
|
Adjusted operating income |
|
|
$ |
271,122 |
|
|
361,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating (Loss) Income to Adjusted Segment Operating Income |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Global Ceramic |
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Operating (loss) income |
|
|
|
$ |
(559,706 |
) |
|
118,896 |
|
|
|
|
|
|
|
Adjustments to segment operating (loss) income: |
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
3,366 |
|
|
212 |
|
|
|
|
|
|
|
Impairment of goodwill |
|
|
|
|
688,514 |
|
|
– |
|
|
|
|
|
|
|
Adjusted segment operating income |
|
|
$ |
132,174 |
|
|
119,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Flooring NA |
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Operating income |
|
|
|
$ |
64,672 |
|
|
118,625 |
|
|
|
|
|
|
|
Adjustments to segment operating income: |
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
20,223 |
|
|
1,396 |
|
|
|
|
|
|
|
Acquisitions purchase accounting, including inventory step-up |
|
|
1,401 |
|
|
– |
|
|
|
|
|
|
|
Impairment of indefinite-lived intangibles |
|
|
1,407 |
|
|
– |
|
|
|
|
|
|
|
Adjusted segment operating income |
|
|
$ |
87,703 |
|
|
120,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Flooring ROW |
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Operating income |
|
|
|
$ |
45,508 |
|
|
133,595 |
|
|
|
|
|
|
|
Adjustments to segment operating income: |
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
10,950 |
|
|
(454 |
) |
|
|
|
|
|
|
Acquisitions purchase accounting, including inventory step-up |
|
|
– |
|
|
226 |
|
|
|
|
|
|
|
Impairment of indefinite-lived intangibles |
|
|
5,850 |
|
|
– |
|
|
|
|
|
|
|
Adjusted segment operating income |
|
|
$ |
62,308 |
|
|
133,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating (Loss) to Adjusted Segment Operating (Loss) |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Corporate and intersegment eliminations |
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Operating (loss) |
|
|
|
$ |
(56,063 |
) |
|
(11,142 |
) |
|
|
|
|
|
|
Adjustments to segment operating (loss): |
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
– |
|
|
(82 |
) |
|
|
|
|
|
|
Legal settlements and reserves |
|
|
|
45,000 |
|
|
– |
|
|
|
|
|
|
|
Adjusted segment operating (loss) |
|
|
$ |
(11,063 |
) |
|
(11,224 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of (Loss) Earnings Including Noncontrolling Interests Before Income Taxes to Adjusted Earnings Including Noncontrolling Interests Before Income Taxes |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
(Loss) earnings before income taxes |
|
|
$ |
(518,144 |
) |
|
345,005 |
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interests |
|
|
(256 |
) |
|
(206 |
) |
|
|
|
|
|
|
Adjustments to (loss) earnings including noncontrolling interests before income taxes: |
|
|
|
|
|
|
|
|
|
|
Restructuring, acquisition and integration-related and other costs |
|
|
34,460 |
|
|
1,044 |
|
|
|
|
|
|
|
Acquisitions purchase accounting, including inventory step-up |
|
|
1,401 |
|
|
226 |
|
|
|
|
|
|
|
Impairment of goodwill and indefinite-lived intangibles |
|
|
695,771 |
|
|
– |
|
|
|
|
|
|
|
Legal settlements and reserves |
|
|
|
45,000 |
|
|
– |
|
|
|
|
|
|
|
Adjusted earnings including noncontrolling interests before income taxes |
|
$ |
258,232 |
|
|
346,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense |
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
October 1, 2022 |
|
October 2, 2021 |
|
|
|
|
|
|
Income tax expense |
|
|
|
$ |
15,569 |
|
|
73,821 |
|
|
|
|
|
|
|
Income tax effect on impairment of goodwill and indefinite-lived intangibles |
|
|
10,168 |
|
|
– |
|
|
|
|
|
|
|
Income tax effect of adjusting items |
|
|
|
20,487 |
|
|
203 |
|
|
|
|
|
|
|
Adjusted income tax expense |
|
|
$ |
46,224 |
|
|
74,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax rate |
|
|
|
17.9 |
% |
|
21.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
本公司根據美國公認會計原則 (GAAP) 編制和呈報此簡明綜合財務報表,並以這些非 GAAP 財務指標加以補充。根據美國證券交易委員會 (SEC) 的規則,上表顯示了公司的這些非 GAAP 財務指標與最直接可比的美國 GAAP 指標進行對賬。除了可比的美國 GAAP 指標之外,還應考慮上述每項非 GAAP 指標,並且可能無法與其他公司報告的類似標題的指標進行比較。本公司認為,當這些非 GAAP 指標與相應的美國 GAAP 指標協調一致時,可以在下方面幫助其投資者:非 GAAP 收入指標有助於確定增長趨勢並將收入與前期和未來時期進行比較,而非 GAAP 盈利能力指標有助於了解公司業務的長期盈利趨勢,並將其利潤與前期和未來時期進行比較。 |
本公司將某些項目排除在其非 GAAP 收入指標之外,因為這些項目在不同時期之間可能會有很大差異,並可能會掩蓋潛在的業務趨勢。本公司非 GAAP 收入指標排除的項目包括:外幣交易和折算以及收購的影響。 |
本公司將某些項目排除在其非 GAAP 盈利能力指標之外,因為這些項目可能不代表公司核心經營業績的指示性指標或與公司的核心經營業績無關。本公司的非 GAAP 盈利能力指標排除的項目包括:重組、收購和整合相關成本和其他成本、法律和解和準備金、商譽和無限期無形資產減值、收購採購會計,包括庫存增加、釋放賠償資產和不確定税收狀況的逆轉。 |