2011 Annual Report

Always in Style
B Mohawk Industries, Inc.

Markets Contract.

Markets Expand.

But the desire for beautiful and functional space never goes away. 

That’s why Mohawk is Always in Style.
2011 Annual Report 1

Enjoying beautiful carpet should be worry-free. It’s important to today’s 

value-conscious consumer that this major home investment can stand up 

to the demands of everyday life. That’s why Mohawk ensures that softness, 

stain resistance, easy maintenance and durability are defining attributes of 

our residential carpet collections.

Peace Of Mind

Always in Style
2 Mohawk Industries, Inc.

Let your space be your canvas, and our products your palette. Dal-Tile offers 

a vast array of tile colors, shapes, sizes and finishes. The breadth and depth of 

this product portfolio provides tile customers the opportunity to transform a 

purchase into a unique masterpiece.

Great Art

Always in Style
A new floor does not have to be a complex proposition. For consumers who 

want to keep their makeovers simple, our Quick-Step® and Mohawk® laminate 

flooring fulfills the desire for beautiful, tile- or hardwood-inspired floors with 

uncomplicated installation and maintenance. 

Simple & Easy

Always in Style
4 Mohawk Industries, Inc.

Whether it’s traditional oak or exotic Brazilian cherry or distressed maple, 

character is the common denominator among our hardwood flooring choices. 

Mohawk®, Columbia® and Century® hardwood collections combine craftsmanship 

with natural wood to bring timeless authenticity to a room. 

Character

Always in Style
2011 Annual Report 5

Beautiful flooring is not confined to residential applications. Our commercial 

products are engineered to meet the durability requirements of heavy-traffic 

public areas while also providing the right aesthetic quality to enhance the space. 

Practical Matters

Always in Style
6 Mohawk Industries, Inc.

To Our

Shareholders, 

Mohawk’s financial performance continued to improve in 2011. 

Each of our businesses continued to grow sales through new 

product innovations and geographic expansion and to 

increase profitability through process improvements, asset 

realignments and cost reductions. As a result, Mohawk now 

has a leaner, smarter and more responsive business model 

which we will increasingly leverage as the flooring industry 

moves toward a more normalized level of business activity.

A Strengthening Performance in 2011

During the past 12 months, there were some encouraging 

signs of strengthening market activity. In the United States, 

the Mohawk segment grew net sales in both the residential 

and commercial markets. Dal-Tile sales in both the U.S. and 

Mexico expanded, with the commercial market outpacing 

residential sales in the U.S. Despite the challenging European 

economy, Unilin improved results from the prior year. Stronger 

end-markets translated into 2011 net sales of $5.6 billion, a 

six percent increase over 2010. Excluding unusual items, 

earnings rose 16 percent to $2.92* per share.

In addition, we are pleased to report that our businesses 

continue to generate strong net cash from operating activities, 

totaling $301 million in 2011. During the year, we successfully 

implemented price increases to help offset raw material 

inflation, had efficiency and productivity gains, enhanced 

product engineering, increased use of alternative materials 

and aligned manufacturing assets with market conditions 

and changing consumer preferences.

*See page 22 for Non-GAAP Reconciliation
2011 Annual Report 7

“

Jeff Lorberbaum

Differentiating Products in

the Marketplace

The Mohawk segment is focused on ensuring its product mix 

aligns well with shifting market demands. We have broadened 

our product lines to offer those fibers and features most 

often requested by consumers. Our popular and proprietary 

products, such as SmartStrand® in the triexta fiber category, 

are competitive differentiators for us in the residential 

market. We also have just introduced SmartStrand SilkTM

and SmartStrand UltraTM, brand extensions that represent 

a new generation of softness and durability in carpets and 

that should have an immediate impact on sales.

In addition, we are extending triexta to the commercial 

and multi-family markets where we believe the durability, 

stain-resistance and sustainability attributes of the fiber will 

make our new products well received there.

Just as we have adjusted production in our residential lines 

toward more profitable areas of the market, we also have 

increased manufacturing capacity in the commercial offerings 

to meet the growing demand for modular carpet tile, as well as 

invested in new technology for high-style hospitality print carpet.

Differentiated products continue to be an important part 

of Dal-Tile’s market strategy. Here, efforts are focused on 

incorporating our Reveal Imaging® technology, which reproduces 

the natural looks of stone, wood or fabric with exceptional 

precision, into a broader array of product offerings. 

With a history of innovation, Unilin remains focused on product 

development, such as distressed wood and wide plank styles, 

for the premium market. Unilin’s insulation products business 

is growing rapidly in Europe, where regulatory requirements 

for increased energy efficiency are fueling demand.

Investmentsto Build a Better Mohawk

We invested more than $275 million in capital expenditures 

in 2011, and we continue to make investments across all of 

our businesses that contribute to a stronger business model, 

build a more effective organization and lead to higher profitability. For example, we are in the process of extending our 

use of SAP within Dal-Tile to further improve customer 

responsiveness and decrease the cost of sales. 

Our R&D initiatives include developing products with a higher 

percentage of recycled material and manufacturing processes 

that use natural resources more effectively. Mohawk is the only 

flooring company to make the Newsweek Top 500 Green 

Rankings for three consecutive years, and Floor Covering Weekly

in 2011 presented us with the GreenStep Pinnacle Award for 

environmental leadership. Investing in our employees is also 

essential to our success, and we are proud to report that Training

magazine recently ranked us fourth among U.S. companies for 

our employer-sponsored training and development programs.

Initiatives That Capitalize on Global Growth

Our long-term strategy reflects the Company’s ongoing 

evolution from its foundation as a North American carpet 

Mohawk’s financial performance continued to improve in 2011. Each of our 

businesses continued to grow sales through new product innovations and 

geographic expansion and to increase profitability through process 

improvements, asset realignments and cost reductions.”
8 Mohawk Industries, Inc.

Jeffrey S. Lorberbaum

Chairman and Chief Executive Officer

business into a larger, more diverse total flooring company 

that operates in the global marketplace. We are expanding 

our portfolio of investments in fast-growing markets around 

the world and continually assessing new opportunities. In each 

case, our approach is to enter new geographies in a way that 

is best suited to the local market – either through joint venture, 

acquisition or a greenfield initiative. 

In Mexico, Dal-Tile has delivered strong sales growth as it adds 

new wholesale and retail customers. We are on schedule to 

open a second manufacturing site this spring in Mexico for 

products that target the core segment of that market and 

broaden our offering across all price points. Dal-Tile’s joint 

venture in China continues to help us establish a presence 

in the world’s largest tile market, while also manufacturing 

product for export to other regions. 

Unilin’s sales initiative in Russia crossed a milestone in October 

2011 with the opening of a laminate plant that has already 

exceeded expectations. Local manufacturing will improve 

our cost structure and our ability to service Russian customers. 

During the year, Unilin consolidated facilities in Malaysia, 

reducing costs and increasing capacity, and acquired the 

largest distributor of laminate and wood flooring products 

in Australia to better serve the local market, a strategy that 

has worked well in the United Kingdom.

A Strong Capital Structure and Organization

Our ability to expand internationally while continuing to make 

investments in our existing businesses reflects one of Mohawk’s 

greatest strengths – its balance sheet. At year-end, our net debt 

to adjusted EBIDTA ratio was 2.0, and we have liquidity of 

more than $900 million available to redeem our 2012 bonds 

and provide flexibility for future opportunities.

Our management team represents another strength and will be 

instrumental in our ability to realize new market potential. We 

have recently promoted Brian Carson to succeed Frank Peters 

as President of the Mohawk division and John Turner, Jr., to 

succeed Harold Turk as President of Dal-Tile. These appointments underscore the depth of our current management team 

and our commitment to effective succession planning. We are 

grateful to both Frank and Harold for their many years of 

leadership and for their willingness to remain with the Company 

throughout 2012 to help identify and explore strategic 

development opportunities in their respective business units. 

We remain optimistic about the future of the flooring industry. 

Long-term, we expect the industry to outpace GDP growth, 

due to expected expansion of household formation as well as 

improvement in consumer confidence and employment levels, 

and lower housing inventories. Mohawk’s products will always 

be in style and in demand because of the timeless desire to 

enhance the residential and commercial spaces in which we 

live and work. Our focus will remain squarely on investments 

in growth initiatives, innovative products, a strong balance 

sheet and a low-cost infrastructure – all strategies that have 

proven to be as sound and timeless as our products. 

We appreciate your support.
A Closer Look 

At Our Three Businesses

2011 Annual Report 9

Mohawk’s ability to manage successfully through business cycles results from our diversification 

of the business over the past decade. Today, the Company operates three distinct businesses 

that participate in multiple product categories, sales channels and geographic markets. As the 

flooring industry returns to growth, these businesses are poised to further strengthen their 

positions in the marketplace. 

In the pages that follow, our business leaders review how their manufacturing and marketing 

strengths will capitalize on opportunities. International expansion, in particular, is important 

to our hard-surface products and should help spur long-term sales growth. Innovation is a 

priority for all of our businesses and is critical to their ability to differentiate our products in 

the marketplace. As we begin 2012, Mohawk remains forward focused and ready to reward 

our shareholders with profitable growth.

Sincerely,

W. Christopher Wellborn

President and Chief Operating Officer

W. Christopher Wellborn

President and Chief Operating Officer
10 Mohawk Industries, Inc.

Mohawk Flooring

Brian Carson

President, Mohawk Flooring

a conversation with

What broad trends are you seeing in the carpet category?

On the residential side, we’re beginning to see a turnaround in what has been a four-year downturn. Recently 

consumers have focused on price – often trading down on product selections to meet their budget constraints. 

Even so, consumers still look for high-quality products. To satisfy these needs, we have made significant R&D investments 

in fiber technology, with Mohawk’s exclusive SmartStrand® fiber representing the foremost innovation in this area. 

How well positioned is Mohawk against these market trends?

SmartStrand fibers provide a truly differentiated product with performance attributes for which consumers are 

willing to pay a premium. We know of no other fiber technology that can match the combination of softness, 

durability and stain resistance that SmartStrand achieves. The recently introduced SmartStrand SilkTM and 

SmartStrand UltraTM lines are adding even more product depth in this category through a newly engineered level 

of luxurious softness and the same proven built-in soil and stain resistance. We’ve also added Scotchgard®*

protection in some of our lines to create additional value and have increased our filament fiber making capacity, 

adding 80 million pounds of capacity in 2011 alone.

On the commercial carpet side, what trends are you seeing and how are 

you capitalizing on them? 

Commercial customers continue to move from broadloom carpet to carpet tile. We’ve increased our modular 

manufacturing capacity, adding approximately 35 percent more capacity in the past year. We also are leveraging 

the SmartStrand brand, in both broadloom and tile formats, into the commercial market, where we believe we 

can replicate its residential success. Commercial project managers seeking LEED certification are requiring products 

with sustainability attributes. With a significant portion of the fibers made from renewable resources, SmartStrand 

should be well received in this market. 

*Scotchgard® is a registered trademark of 3M Company.
2011 Annual Report 11

Though carpet comprises the majority of sales in the Mohawk segment, you also offer 

Mohawk-branded hard-surface products. What is the strategy behind these product offerings?

Consumers increasingly are looking for a variety of flooring surfaces in the same home that add a unique element 

of design and functionality in their living areas. Expanding the Mohawk brand into hard surfaces allows us to provide 

complete flooring solutions for the home to capture a greater share of the customer’s total flooring purchase. 

In addition, by including hard-surface products in our mix, we can further leverage our distribution infrastructure, 

which helps to improve delivery time for our customers.

Looking ahead, what are your priorities for the Mohawk segment?

I am optimistic about our business and am confident that the residential remodeling consumer will return in a 

meaningful way as the market recovers. In addition, we believe our product line improvements and fiber innovations 

have us well positioned for continued commercial carpet growth. We are focused on product innovation that drives 

consumer demand and creates value for Mohawk and our retail partners. We can improve our sustainability and 

our cost position by increasing our usage of recycled materials. We’ve made great progress in this area, but there’s 

a lot more to do. We are increasing the effectiveness of our residential and commercial sales force with increased 

training and new technology to help them better understand retailers’ needs and deliver on them faster and 

more effectively. Each of these initiatives represents an opportunity to expand our margins and improve our 

return on investment.
12 Mohawk Industries, Inc.

Mohawk At-A-Glance

Highlights

Two brand extensions of SmartStrand® products were introduced. SmartStrand 

SilkTM features an unmatched combination of softness, performance and 

sustainability, while SmartStrand UltraTM is a collection of soft, stylized 

products with enhanced warranties that build in value.

In the commercial market, the premium Lees® brand introduced a SmartStrand 

collection that leverages stain resistance and environmental benefits. Also a 

Duracolor® collection with premium features and more economical price 

points was introduced.

Service performance for customers continued to improve through better 

delivery times and an expansion of quick-ship offerings.

Mohawk continued to invest in brand-building awareness promotions such as 

fundraising for breast cancer research and awareness through the introduction 

of the Decorate for the CureTM Mohawk SmartCushionTM and Karastan®

KaraStep ReserveTM programs, which add depth to the well-established 

Specify for a Cure®* commercial carpet program. 

Mohawk Home launched a new website to help educate consumers about 

rug options and added new media initiatives such as QR codes on labels to 

provide consumers with a broad range of product-related information at the 

point of sale. Customers can also interact live with Mohawk Home via its pages 

on many social media, including Facebook, Myspace, Twitter and Friendster.

1

2

Karastan®

Mohawk®

Aladdin®

Horizon®

Bigelow®

Lees®

Durkan®

Mohawk HomeTM

3

4

5

Brands

*“Specify for a Cure” is a registered trademark of the Susan G. Komen Foundation, used under license.
2011 Annual Report 13

Unique products that offer consumers added value are key to profitable growth. We continue to invest 

in talent and technology to drive internal product development. As we have integrated manufacturing 

backward into fiber and backing production, our internal R&D investment has stepped up as well and 

is rewarding us today with exciting new product innovations.

Investing To Drive Differentiation

The debut of SmartStrand SilkTM takes carpet softness to 

a new level.

As a result of our ongoing research, EverStrand® and 

Wear-Dated® ReviveTM now feature an industry-leading 

level of recycled content while still maintaining their 

attributes of softness, stain-resistance and durability.

Collections with our Duracolor® fiber offer premium 

performance attributes at an affordable price point for 

commercial customers.

Our commitment to product innovation is matched by a 

commitment to develop the talents of our people in order 

to be responsive to marketplace needs.
14 Mohawk Industries, Inc.

What current trends are defining the tile category?

The single largest trend is producing tile that is a realistic replica of another material, whether it be real natural 

stone, a piece of fabric or a hardwood plank. At Dal-Tile, we have developed proprietary technology called 

Reveal Imaging ®. This technology produces ceramic tile that can replicate almost any natural stone, such as marble, 

slate or travertine; or hardwood flooring with knots and graining characteristics; and even fabrics such as linen, 

silk or tweed. This will revolutionize where tile can go in the future. 

What are some applications for Reveal Imaging technology that open new opportunities?

Think about how hardwood in a bathroom or Carrera marble in a high-traffic area was never a practical flooring 

option for these spaces due to maintenance requirements. With Reveal Imaging technology, you can achieve the look 

of hardwood or marble, while receiving the performance benefits of ceramic and porcelain tile. We have introduced 

more product applications with this technology than any other North American supplier – taking its possibilities to 

an unprecedented level. We continue to lead the industry by extending the Reveal Imaging product line beyond 

floor tile to include wall, mosaic, trim and decorative tiles. No other tile manufacturer currently has that capability.

Dal-Tile already has a leading position in the U.S. tile market. 

Where will you be able to grow domestically?

For Dal-Tile, the mid-market has always represented our greatest area of strength. We have significant opportunities 

in other categories at both the value and the high end of the product spectrum. We will continue to hone our 

expertise while identifying newly emerging product categories and leveraging our distribution network to grow 

market share. Technical porcelain and thin tiles, for example, are high-performance products in the commercial 

arena that we believe will take share from other finishes in the future. We have established positions in each 

and are poised for strong growth. 

Dal-Tile

John Turner, Jr.

President, Dal-Tile

a conversation with
2011 Annual Report 15

What other opportunities do you see in the U.S. tile market?

Natural stone is a major growth opportunity. As a product, natural stone has broad consumer appeal and many 

applications. As a market category, natural stone is still very fragmented. We believe our national customer 

relationships provide a valuable entry point to this market, particularly as the new construction market rebounds. 

The home center channel is another significant opportunity. In this channel, we are aligning our manufacturing 

assets with the mass-market needs of national, big-box retailers. Finally, the premium end of the commercial 

business presents a sizeable avenue for market growth. 

Describe the global opportunity for Dal-Tile and the competitive picture around the world.

Ceramic tile is the most popular flooring product in the world outside the United States. Tile has been used as flooring 

for centuries, so it’s very well accepted. As with natural stone, the global tile market is generally fragmented. Dal-Tile’s 

scale, in both manufacturing and distribution, gives us a unique advantage to grow sales and increase our market 

share. In most markets, there is usually no single supplier with the degree of share that Dal-Tile has in the U.S. 

Can you leverage and replicate Dal-Tile’s U.S. business model in other countries?

Every market is different. We have to assess each opportunity and determine the best strategy to tackle it. In the 

U.S., Dal-Tile started with a single plant in Dallas and sold its products through independent distributors. Eventually, 

the Company bought several distributorships, which became the basis for our current sales and service center 

network, then integrated backward into other types of product manufacturing. The unique dynamics of each market 

will shape how our business evolves there. There are two important takeaways. First, the global tile market is extremely 

large; and second, Dal-Tile has a wealth of expertise in tile manufacturing and marketing. That’s a great combination 

and creates long-term opportunity for us around the world. 
16 Mohawk Industries, Inc.

Dal-Tile At-A-Glance

Highlights

During 2011, renovation projects drove commercial sales with the hospitality, 

healthcare, restaurant/retail and government sectors leading growth. 

Dal-Tile recently launched the Statements by daltileTM program, a unique 

marketing program designed to increase ceramic tile sales among floor 

covering retailers. Leveraging our tile and stone expertise and extensive 

product portfolio, Dal-Tile developed a turnkey ceramic tile “showroom within 

a showroom” concept that presents the complete Daltile® product portfolio. 

Beyond the merchandising designed to aid customers through the selection 

process, Statements by daltile dealers receive innovative marketing benefits 

such as an internet-based lead generation program, customized technology 

kiosk, advertising/promotional support, training and operational and financial 

benefits. This program is the first of its kind in the ceramic tile category and is 

designed to further grow share in the residential remodeling segment.

Expanded offerings of both floor and wall tile led to an increased presence in 

the home center channel. Also, broader design alternatives for larger ceramic 

tiles at all price levels were introduced to meet growing demand. 

1

2

Daltile®

American Olean®

3

Brands
2011 Annual Report 17

New York Gallery

Houston Gallery

An internal distribution network helps to support Dal-Tile’s leading share of the U.S. tile market and complements its 

presence in specialty and do-it-yourself (DIY) retail stores. This network includes Company-owned sales and service centers, 

as well as stone centers and design galleries, each located in strategic markets throughout the U.S. These facilities enable 

Dal-Tile to provide a high level of customer service throughout the country. In addition, Dal-Tile’s American Olean®

brand is available through qualified independent distributors and select Company sales centers. 

A Well-Designed Market Strategy

Market Opportunity: Mexico

Dal-Tile’s growing business in Mexico will receive a significant boost this spring when a new plant in Salamanca 

becomes operational. This facility will manufacture product targeted to the value segment of the Mexican market, 

which comprises the majority of sales in Mexico. The new plant also will enable Dal-Tile to better penetrate the 

major metropolitan centers of Mexico City and Guadalajara.
18 Mohawk Industries, Inc.

Unilin participates in multiple product categories across multiple markets. 

What is the best way to view this diverse portfolio?

We always look at Unilin as having three product lines: flooring, panels and insulation products. Flooring spans both 

the hardwood and laminate categories in the U.S. and Europe. Panels include chipboards, MDF and HDF boards, 

as well as decorative panels, wall systems and furniture. The insulation line focuses on structural insulated roof 

panels and insulation boards for floors, walls and roofs.

Where do you see the most significant opportunities for growth of the 

flooring business in the next few years?

We are looking beyond Europe to expand into large growth markets such as Russia and Brazil. To date, Russia has 

been our focus, and we have successfully opened our manufacturing facility there to grow our presence in that 

important market. We have further enhanced our presence outside the U.S. and Europe with our acquisition in 

Australia of Premium Floors, distributor of laminate and wood flooring products, and realignment of our Malaysian 

operations. We continue to explore opportunities around the world. Within Europe, we are expanding our laminate 

and wood products further into the DIY market.

What are the dynamics of the panel and insulation product lines?

The market for panels is mature, so the focus has been to develop new applications to bring added value to this 

business. One strategy is to deliver innovative new applications for the panels, such as our new furniture line, diditTM. 

We also are focusing our marketing of the panels to trade professionals, who value the higher level of service that 

we can provide. Insulation is an excellent business right now because of European regulations that require increased 

energy efficiency in buildings. We believe demand for our insulation products will stay strong in the foreseeable 

future. As a result, we will expand our existing insulation capacity by 50 percent in 2012 and plan to construct an 

additional plant in France in 2013. 

Unilin

Bernard Thiers

President, Unilin

a conversation with
2011 Annual Report 19

What is your strategy for the DIY channel in Europe and how does it differ from the U.S.?

The European DIY channel is fragmented. There is no pan-European chain; rather, DIY retail brands tend to be 

country-specific. This environment allows us to partner with retailers who will offer Quick-Step® flooring as a 

premium brand with a point-of-sale concept shop within their stores. As a result, we can maintain the same 

premium price point in both the DIY and the specialty retail channels. The DIY retailer gets a higher-end product 

with better margins, and we gain expanded distribution while ensuring the integrity of the brand. The U.S. model 

is entirely different because distribution is concentrated among a small number of national DIY chains. In this 

situation, it works much better for the retailer to utilize private label products from us.

How does the growth strategy in the U.S. differ from that in Europe?

In each, we develop products that maximize use of the manufacturing facilities and the production expertise we have. 

In Europe, the product expansion has been enhanced with our use of HDF for the core, combined with premium 

veneers and surface effects. In the U.S., we are expanding our offerings to focus more on domestic exotic woods 

and products that feature a wide range of textured, distressed and high-performance surfaces.

Unilin has established a growing business in Russia. What are the competitive dynamics 

of the Russian market, and how will the new plant in Russia improve your business?

Importing product from Western Europe is difficult. High import duties and freight add to our costs. Lead times 

also are long and logistics are not optimal. There are several suppliers with local production, but there is very little 

product targeted to the high end of the market. As a premium laminate, Quick-Step flooring is very well positioned. 

Local production will improve our cost position and logistics, so we can better serve our customers, with room 

for growth without additional investment in new construction. 
Unilin At-A-Glance

Highlights

Unilin’s patented Uniclic® technology has been extended to ready-to-assemble 

furniture, with the diditTM line. Designed to take the difficulty out of ready-toassemble furniture, the technology has the potential to create a new product 

category. Initial distribution is underway through a national retailer in the U.K. 

Unilin acquired Premium Floors, the largest distributor of laminate and wood 

flooring products in Australia. The acquisition follows a successful partnership 

with the distributor, which covers the entire continent with five regional 

distribution points. 

In Malaysia, Unilin is completing consolidation of its two hardwood 

manufacturing plants into one plant to realize improved operating 

efficiencies and productivity. The newly configured plant will support 

growth in Europe and the Asia-Pacific region. 

Floor Covering Weekly honored Quick-Step with its 2011 Dealers’ Choice 

award for the VeresqueTM laminate collection. 

1

2

Columbia®

Century®

Quick-Step®

Unilin®

diditTM Furniture

3

4

Brands

20 Mohawk Industries, Inc.
2011 Annual Report 21

Quick-Step VogueTM with highly 

textured antique character.

Quick-Step EliteTM with a multi-gloss finish and 

more natural look.

Since its founding more than 50 years ago, Unilin has placed innovation at the forefront of its culture. The organization looks 

continually for new ways to leverage its technology into new products. Its Uniclic® installation technology, for example, has 

been successfully added to the hardwood category, luxury vinyl tile and now into ready-to-assemble furniture. 

Innovative Ideas

Sales By Product

FLOORING

NON-FLOORING

Sales By Geography

80% 20%

NON-U.S.

U.S.

Unilin has worldwide 

sales strength and in 

2011 increased its global 

coverage in Russia 

and Australia.

Unilin continues to have 

strong flooring product 

coverage.

Decorwood® Brazilian Walnut.

68% 32%
22 Mohawk Industries, Inc.

Financial Highlights

(in thousands, except per share data) 

Years Ended December 31, 2011 2010 2009 2008 2007

Net sales $ 5,642,258 5,319,072 5,344,024 6,826,348 7,586,018

Gross profit 1,416,879 1,402,600 1,232,230 1,737,764 2,114,784

Operating income (loss) (a) 315,542 314,169 43,730 (1,124,134) 750,106

Net earnings (loss) attributable to 

Mohawk Industries, Inc. (a) (b) $ 173,922 185,471 (5,499) (1,458,228) 706,814

Basic earnings (loss) per share (a) (b) $ 2.53 2.66 (0.08) (21.32) 10.37

Diluted earnings (loss) per share (a) (b) $ 2.52 2.65 (0.08) (21.32) 10.32

Balance sheet data: 

Cash and cash equivalents (including restricted cash) $ 311,945 382,171 531,458 93,519 89,604

Receivables, net 686,165 614,473 673,931 696,284 821,113

Inventories 1,113,630 1,007,503 892,981 1,168,272 1,276,568

Total current assets 2,398,164 2,248,613 2,359,000 2,246,249 2,449,720

Property, plant and equipment, net 1,712,154 1,687,124 1,791,412 1,925,742 1,975,721

Goodwill and intangibles 1,980,275 2,046,521 2,196,470 2,247,284 3,969,208

Total assets (a) (b) $ 6,206,228 6,098,926 6,391,446 6,446,175 8,680,050 

Accounts payable and accrued expenses $ 715,091 698,326 831,115 782,131 951,061

Total current liabilities 1,101,346 1,048,914 884,022 876,916 1,211,500

Long-term debt (including current portion) 1,586,439 1,653,582 1,854,479 1,954,786 2,281,834

Total stockholders’ equity 3,415,785 3,271,556 3,200,823 3,153,803 4,707,357

Total liabilities and stockholders’ equity $ 6,206,228 6,098,926 6,391,446 6,446,175 8,680,050

Cash flow data: 

Net cash provided by operating activities $ 300,993 319,712 672,205 576,086 880,395

Depreciation and amortization 297,734 296,773 303,004 295,054 306,437

Capital expenditures 275,573 156,180 108,925 217,824 163,076

Acquisitions 24,097 79,917 5,924 8,276 147,097

Working capital (c) 1,296,818 1,199,699 1,474,978 1,369,333 1,238,220

Changes in debt $ (67,672) (200,804) (103,558) (333,112) (534,201)

The year 2011 consolidated financial statements and management’s discussion and analysis of financial condition and results of operations are provided in the Company’s 2012 

Proxy Statement under Appendix B.

(a) In 2009, the Company recorded pre-tax charges related to: discontinued carpet tiles of $133,492, business restructurings of $61,725 and $61,794 related to unusually high 

raw material costs incurred in the latter part of 2008, flowing through cost of sales in the first quarter of 2009.

(b) During 2007, the Company implemented a change in residency in one of its foreign subsidiaries. This tax restructuring resulted in a step-up in the subsidiary’s taxable 

basis, which resulted in the recognition of a deferred tax asset of approximately $245,000 and a related income tax benefit of approximately $272,000. During 2008, the 

Company recorded a valuation allowance of approximately $253,000 against the deferred tax asset described above.

(c) Working capital is defined as current assets less current liabilities.

Reconciliation of Non-GAAP Measures

(in thousands, except per share data) 

Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and 

Adjusted Diluted Earnings Per Share Attributable to Mohawk Industries, Inc. 2011 2010

Net earnings attributable to Mohawk Industries, Inc. $ 173,922 185,471

Reconciling items: 

Unrealized foreign currency losses (a) 9,085 –

 Operating lease correction (b) 6,035 –

Business restructurings 23,209 13,156

Debt extinguishment costs 1,116 7,514

Acquisitions purchase accounting – 1,713

U.S. customs refund – (7,730)

Discrete tax items, net – (24,407)

Income taxes (11,749) (2,592)

Adjusted net earnings attributable to Mohawk Industries, Inc. 201,618 173,125

Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. $ 2.92 2.52

Weighted-average common shares outstanding – diluted 68,964 68,764

(a) Unrealized foreign currency losses in Q3 2011 for certain of the Company’s consolidated foreign subsidiaries that measure financial position and results using the 

U.S. dollar rather than the local currency.

(b) Correction of an immaterial error related to accounting for operating leases.

The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of 

the Company’s business for planning and forecasting in subsequent periods.
2011 Annual Report 23

Reconciliation of Non-GAAP Measures (continued)

(in thousands) 

Adjusted operating income and Adjusted EBITDA 2011 2010 2009 2008 2007

Operating income (loss) $ 315,542 314,169 43,730 (1,124,134) 750,106

Add: Impairment of goodwill and other intangibles – – – 1,543,397 –

 Business restructurings 23,209 13,156 61,725 29,670 14,200

 Operating lease correction (e) 6,035 – – – –

 Commercial carpet tile reserve – – 133,492 44,338 –

 Higher cost inventory flow through (f) – – 61,794 – –

Adjusted operating income (a) $ 344,786 327,325 300,741 493,271 764,306

Less: Net earnings attributable to 

noncontrolling interest (4,303) (4,464) (4,480) (5,694) (7,599)

Add: Depreciation and amortization 297,734 296,773 303,004 295,054 306,437

 Other income (expense), net (14,051) 3,900 5,588 (21,288) 6,925

Unrealized foreign currency losses (g) 9,085 – – – – 

U.S. customs refund – 7,730 – – 9,154

Adjusted EBITDA (b) $ 633,251 631,264 604,853 761,343 1,079,223

Net Debt 

Long-term debt (including current portion) $ 1,586,439 1,653,582 1,854,479 1,954,786 2,281,834

Less: Cash and cash equivalents 

(including restricted cash) (311,945) (382,171) (531,458) (93,519) (89,604)

Net Debt (c ) $ 1,274,494 1,271,411 1,323,021 1,861,267 2,192,230

Capital 

Long-term debt (including current portion) $ 1,586,439 1,653,582 1,854,479 1,954,786 2,281,834

Total stockholders’ equity 3,415,785 3,271,556 3,200,823 3,153,803 4,707,357

Capital $ 5,002,224 4,925,138 5,055,302 5,108,589 6,989,191

Net debt to adjusted EBITDA (d) 2.0 2.0 2.2 2.4 2.0

Net Debt to Capital (c ) 25.5% 25.8% 26.2% 36.4% 31.4%

(a) The non-GAAP measure “Adjusted Operating Income” is used to compare operating results. Management uses the information to review results excluding items that are not 

necessarily indicative of ongoing results.

(b) The non-GAAP measure “Adjusted EBITDA” is used to more clearly evaluate our cash generation from operations.

(c) The non-GAAP measures “Net Debt” and “Net Debt to Capital” are used to more clearly evaluate our capital structure and leverage.

(d) The non-GAAP measure “Net Debt to Adjusted EBITDA” is used to more clearly show the number of times our operating cash flow covers leverage.

(e) Correction of an immaterial error related to accounting for operating leases.

(f) Unusually high raw material costs incurred in the latter part of 2008, flowing through cost of sales in the first quarter of 2009.

(g) Unrealized foreign currency losses in Q3 2011 for certain of the Company’s consolidated foreign subsidiaries that measure financial position and results using the 

U.S. dollar rather than the local currency.

Cash and Cash 

Equivalents

$ in millions

Year-end cash declined 

due to a bond redemption 

earlier in the year.

90

2007

312

2011

Net Debt 

to Capital

percentage

Our balance sheet 

leverage remains close to 

historical lows.

31.4

2007

25.5

2011

Net Debt to 

Adjusted EBITDA

Despite an industry recession, 

our balance sheet strength 

has remained consistent.

2.0

2007

2.0

2011

Consolidated 

Adjusted EBITDA

$ in millions

Our businesses continue 

to generate a healthy level 

of operating cash.

1,079

2007

633

2011
24 Mohawk Industries, Inc.

Joseph A. Onorato (1)(2)

Former Chief Financial Officer of Echlin, Inc. 

(a manufacturer of automotive parts) 

W. Christopher Wellborn

President and Chief Operating Officer

Phyllis O. Bonanno (3)

Former President and Chief Executive Officer 

of International Trade Solutions, Inc. (an international trade consulting firm)

Frans De Cock

Former President of Unilin

Richard C. III (1)

Chairman of Triumph Group, Inc. 

(a public, international aviation services company)

Jeffrey S. Lorberbaum

Chairman and Chief Executive Officer

Karen A. Smith Bogart (2)

President of Pacific Tributes, Inc., 

(a start-up firm providing web-based printing services) 

Bruce C. Bruckmann (1)(3)

Managing Director of Bruckmann, Rosser, 

Sherrill & Co., Inc. (a venture capital firm)

John F. Fiedler (2)

Former Chairman and Chief Executive Officer 

of Borg-Warner Automotive Inc. 

(a manufacturer of automotive parts)

David L. Kolb (3)

Former Chairman and Chief Executive Officer 

of Mohawk Industries, Inc.

Board of Directors

Please see the Company’s 2011 Proxy Statement 

for a listing of our Executive Officers. 

The Proxy Statement is available via the Internet at 

www.mohawkind.com under Investor Information.

(1) Audit Committee

(2) Compensation Committee

(3)Nominating and Corporate Governance Committee

From Left to Right: Joseph A. Onorato, W. Christopher Wellborn, Phyllis O. Bonanno, Frans De Cock, Richard C. III, Jeffrey S. Lorberbaum, 

Karen A. Smith Bogart, Bruce C. Bruckmann, John F. Fiedler, David L. Kolb
2011 Annual Report 25 Design by Corporate Reports Inc., Atlanta, GA www.corporatereport.com

Corporate Headquarters

P.O. Box 12069

160 South Industrial Boulevard

Calhoun, Georgia 30703

(706) 624-2246

Independent Registered Public 

Accounting Firm

KPMG LLP

Atlanta, Georgia

Corporate Counsel

Alston & Bird LLP

Atlanta, Georgia

Transfer Agent and Registrar

American Stock Transfer

 and Trust Company

Corporate Trust Client Services

16633 N. Dallas Parkway, Suite 600

Addison, Texas 75001 

(972) 588-1889

Publications

The Company’s Annual Report, Proxy 

Statement, Form 8-K, 10-K and 10-Q reports 

are available without charge and can be 

ordered via our stockholder communications 

service at (800) 625-7721 or via the Internet 

at www.mohawkind.com under Investor 

Information. Written requests should be sent 

to Deby Forbus at the Company’s headquarters 

address above.

Product Inquiries

For more information about Mohawk’s 

products, visit our websites: 

www.mohawkflooring.com.

www.daltile.com

www.unilin.com

Investor/Analyst Contact

For additional information about Mohawk, 

please contact Frank H. Boykin at 

(706) 624-2695 or at the Company’s 

headquarters address above.

Annual Meeting of 

Stockholders

The Annual Meeting of Stockholders 

of Mohawk Industries, Inc., will be held 

at the Company’s headquarters on 

South Industrial Boulevard in Calhoun, 

Georgia, on May 9, 2012, at 10:00 a.m. 

For directions and a map, call Deby Forbus 

at (706) 624-2246.

Common Stock Price Range

Mohawk’s common stock is traded on the 

New York Stock Exchange under the symbol 

MHK. The table below sets forth the high 

and low sales prices per share of the common 

stock as reported by the exchange, for each 

period indicated.

Mohawk Common Stock

2011 High Low

First Quarter $63.12 $54.42 

Second Quarter 68.86 57.43

Third Quarter 61.47 39.93

Fourth Quarter 61.30 40.19

2010 High Low

First Quarter $55.52 $41.33

Second Quarter 66.93 43.58

Third Quarter 54.94 42.61

Fourth Quarter 61.28 51.55

Sustainability

Mohawk is recognized as a leader in 

sustainability and environmental stewardship, 

with a determined focus on responsible use of 

raw materials, recycling, waste management and 

water and energy conservation throughout its 

business and operations. 

Equal Opportunity

Mohawk is an Equal Opportunity/

Affirmative Action employer committed

to attracting a diverse pool of applicants and 

sustaining an inclusive workforce.

NYSE Affirmation 

Certifications

As a listed Company with the New York 

Stock Exchange (“NYSE”), Mohawk is subject 

to certain Corporate Governance standards 

as required by the NYSE and/or the Securities 

and Exchange Commission (“SEC”). Among 

other requirements, Mohawk’s CEO, as 

required by Section 303A.12(a) of the NYSE 

Listing Company Manual, must certify to the 

NYSE each year whether or not he is aware 

of any violations by the Company of NYSE 

Corporate Governance listing standards as 

of the date of the certification. On June 2, 2011, 

Mohawk’s CEO Jeffrey S. Lorberbaum, 

submitted such a certification to the NYSE 

which stated that he was not aware of any 

violation by Mohawk of the NYSE Corporate 

Governance listing standards.

The Company has filed the certifications of 

its Chief Executive Officer and Chief Financial 

Officer required by Section 302 of SarbanesOxley Act of 2002 as an exhibit to the 

Company’s Form 10-K for the year ended 

December 31, 2011.

Shareholder Information

• Mohawk Industries, Inc •

S&P 500 Index – Total Returns • Peer Group

$ 40

$ 60

$ 80

$100

$120

2006 2007 2008 2009 2010 2011

$100 $98.76

$79.98

$90.57

Stock Performance Graph

The following is a line graph comparing the yearly percentage change in the Company’s cumulative total stockholder returns to those of the 

Standard & Poor’s 500 Index and a group of peer issuers beginning on December 31, 2006 and ending on December 31, 2011.

The peer group includes the following companies: Armstrong World Industries, Inc.; Dixie Group, Inc.; Interface, Inc.; Leggett & Platt, Inc.; 

MASCO Corporation; and Stanley Black & Decker, Inc. Total return values were calculated based on cumulative total return, assuming the 

value of the investment in the Company’s Common Stock and in each index on December 31, 2006 was $100 and that all dividends were 

reinvested. The Company is not included in the peer group because management believes that, by excluding the Company, investors will 

have a more accurate view of the Company’s performance relative to peer companies.
160 South Industrial Boulevard

Calhoun, Georgia 30701

www.mohawkind.com

Mohawk Industries, Inc. is one of the world’s leading flooring companies with operations in North 

America, Europe, Asia and Australia. Our products and brands span every major flooring category 

across a wide range of price points and distribution channels. We are headquartered in Calhoun, 

Georgia, and our shares trade on the New York Stock Exchange under the ticker symbol “MHK.” 

Always in Style

© All rights reserved Mohawk Industries, Inc. 2012