Mohawk Industries Inc. (MHK) 2011年年度報告「NYSE」.pdf

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1、2011 Annual ReportAlwAys in styleB Mohawk industries,inc.Markets Contract.Markets Expand.But the desire for beautiful and functional space never goes away.thats why Mohawk is Always in style.2011 Annual Report 1Enjoying beautiful carpet should be worry-free.Its important to todays value-conscious co

2、nsumer that this major home investment can stand up to the demands of everyday life.Thats why Mohawk ensures that softness,stain resistance,easy maintenance and durability are defining attributes of our residential carpet collections.Peace Of MindAlwAys In sTylE2 Mohawk industries,inc.let your space

3、 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 ArtAlwAys In sTylEA new floor does not h

4、ave 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&EasyAlwAys In sTylE4 Mohawk industries,inc.Wheth

5、er its 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.CharacterAlwAys In sTylE2011

6、 Annual Report 5Beautiful 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 MattersAlwAys In sTylE6 Mohawk indus

7、tries,inc.To Our Shareholders,Mohawks 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 resu

8、lt,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 strengthenin

9、g 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 result

10、s 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 ac

11、tivities,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 an

12、d changing consumer preferences.*See page 22 for Non-GAAP Reconciliation2011 Annual Report 7“Jeff LorberbaumDIffERENTIATING PRoDUcTS IN the MARketPlAceThe Mohawk segment is focused on ensuring its product mix aligns well with shifting market demands.We have broadened our product lines to offer those

13、 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

14、 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 ou

15、r 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 technolog

16、y for high-style hospitality print carpet.Differentiated products continue to be an important part of Dal-Tiles 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

17、 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.Unilins insulation products business is growing rapidly in Europe,where regulatory requirements for increased energy efficiency

18、are fueling demand.INvESTMENTS To BUILD A BETTER MoHAWkWe 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 profit-ability

19、.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 resource

20、s 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

21、 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 gRowthour long-term strategy reflects the companys ongoing evolution from its foundation as a North American

22、 carpet Mohawks 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.Jeffre

23、y S.Lorberbaumchairman and chief Executive officerbusiness 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 app

24、roach 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

25、site this spring in Mexico for products that target the core segment of that market and broaden our offering across all price points.Dal-Tiles joint venture in china continues to help us establish a presence in the worlds largest tile market,while also manufacturing product for export to other regio

26、ns.Unilins 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 Mal

27、aysia,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 oRGANIzATIoNour ability to expand internationall

28、y while continuing to make investments in our existing businesses reflects one of Mohawks 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 futur

29、e 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-Ti

30、le.These appoint-ments 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

31、 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

32、levels,and lower housing inventories.Mohawks 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 balan

33、ce 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 Businesses2011 Annual Report 9Mohawks ability to manage successfully through business cycles results from our diversification of th

34、e 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.I

35、n 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 bus

36、inesses 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 officerw.Christopher wellbornPresident

37、and Chief Operating Officer10 Mohawk industries,inc.Mohawk FlooringBrian Carson President,Mohawk FlooringA conveRsAtion withWhat broad trends are you seeing in the carpet category?on the residential side,were beginning to see a turnaround in what has been a four-year downturn.Recently consumers have

38、 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 Mohawks exclusive SmartStrand fiber representing the foremost in

39、novation 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,durab

40、ility 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.Weve also ad

41、ded 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 contin

42、ue to move from broadloom carpet to carpet tile.Weve 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 replicat

43、e its residential mercial 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.20

44、11 Annual Report 11Though 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 elem

45、ent 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 customers total flooring purchase.In addition,by including hard-surface products in our mix,we can furth

46、er 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

47、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 a

48、nd our cost position by increasing our usage of recycled materials.Weve made great progress in this area,but theres 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 n

49、eeds 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-GlanceHighlightsTwo brand extensions of SmartStrand products were introduced.SmartStrand silktM fea

50、tures 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 resistan

51、ce 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 a

52、wareness 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 lau

53、nched 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,

54、including facebook,Myspace,Twitter and friendster.12karastanMohawkAladdinHorizonBigelowleesDurkanMohawk HometM345Brands*“Specify for a cure”is a registered trademark of the Susan G.komen foundation,used under license.2011 Annual Report 13Unique products that offer consumers added value are key to pr

55、ofitable 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.Inves

56、ting To Drive DifferentiationThe 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

57、 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 in

58、dustries,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

59、.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 applic

60、ations 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

61、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 Imagin

62、g 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

63、 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.Technica

64、l 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-TileJohn Turner,Jr.President,Dal-TileA conveRsAtion with2011 Annua

65、l Report 15What 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 prov

66、ide 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 c

67、ommercial 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 its very

68、well accepted.As with natural stone,the global tile market is generally fragmented.Dal-Tiles 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

69、 has in the U.S.Can you leverage and replicate Dal-Tiles 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 independen

70、t 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

71、important takeaways.first,the global tile market is extremely large;and second,Dal-Tile has a wealth of expertise in tile manufacturing and marketing.Thats a great combination and creates long-term opportunity for us around the world.16 Mohawk industries,inc.Dal-Tile At-A-GlanceHighlightsDuring 2011

72、,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.leverag

73、ing 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 de

74、alers 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

75、 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.12DaltileAmerican olean3Brands2011

76、Annual Report 1716 Mohawk industries,inc.new york galleryhouston galleryAn internal distribution network helps to support Dal-Tiles 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 servic

77、e 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-Tiles American olean brand is available through qualified independent distr

78、ibutors and select company sales centers.A Well-Designed Market StrategyMarket Opportunity:MexicoDal-Tiles 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

79、 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 th

80、e 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 syste

81、ms 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 mar

82、kets 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,distrib

83、utor 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

84、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

85、 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 expa

86、nd our existing insulation capacity by 50 percent in 2012 and plan to construct an additional plant in france in 2013.UnilinBernard Thiers President,UnilinA conveRsAtion with2011 Annual Report 19What is your strategy for the DIY channel in Europe and how does it differ from the U.S.?The European DIY

87、 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

88、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

89、 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 experti

90、se 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-per

91、formance 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

92、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 b

93、etter serve our customers,with room for growth without additional investment in new construction.Unilin At-A-GlanceHighlightsUnilins patented Uniclic technology has been extended to ready-to-assemble furniture,with the didittM line.Designed to take the difficulty out of ready-to-assemble furniture,t

94、he 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 th

95、e 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

96、Europe and the Asia-Pacific region.Floor Covering Weekly honored Quick-Step with its 2011 Dealers choice award for the veresquetM laminate collection.12columbiacenturyQuick-StepUnilindidit furniture34Brands20 Mohawk industries,inc.2011 Annual Report 21Quick-Step voguetM with highly textured antique

97、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 te

98、chnology,for example,has been successfully added to the hardwood category,luxury vinyl tile and now into ready-to-assemble furniture.Innovative IdeasSales By ProductflooRingNoN-fLooRINGSales By Geography20%80%NoN-U.S.U.S.Unilin has worldwide sales strength and in 2011 increased its global coverage i

99、n Russia and Australia.Unilin continues to have strong flooring product coverage.Decorwood Brazilian Walnut.32%68%22 Mohawk industries,inc.Financial Highlights(in thousands,except per share data)years Ended December 31,2011 2010 2009 2008 2007net sales$5,642,258 5,319,072 5,344,024 6,826,348 7,586,0

100、18gross profit 1,416,879 1,402,600 1,232,230 1,737,764 2,114,784operating income(loss)(a)315,542 314,169 43,730(1,124,134)750,106Net earnings(loss)attributable to Mohawk industries,inc.(a)(b)$173,922 185,471(5,499)(1,458,228)706,814Basic earnings(loss)per share(a)(b)$2.53 2.66(0.08)(21.32)10.37Dilut

101、ed earnings(loss)per share(a)(b)$2.52 2.65(0.08)(21.32)10.32Balance sheet data:cash and cash equivalents(including restricted cash)$311,945 382,171 531,458 93,519 89,604Receivables,net 686,165 614,473 673,931 696,284 821,113inventories 1,113,630 1,007,503 892,981 1,168,272 1,276,568total current ass

102、ets 2,398,164 2,248,613 2,359,000 2,246,249 2,449,720Property,plant and equipment,net 1,712,154 1,687,124 1,791,412 1,925,742 1,975,721goodwill and intangibles 1,980,275 2,046,521 2,196,470 2,247,284 3,969,208total assets(a)(b)$6,206,228 6,098,926 6,391,446 6,446,175 8,680,050 Accounts payable and a

103、ccrued expenses$715,091 698,326 831,115 782,131 951,061total current liabilities 1,101,346 1,048,914 884,022 876,916 1,211,500Long-term debt(including current portion)1,586,439 1,653,582 1,854,479 1,954,786 2,281,834total stockholders equity 3,415,785 3,271,556 3,200,823 3,153,803 4,707,357total lia

104、bilities and stockholders equity$6,206,228 6,098,926 6,391,446 6,446,175 8,680,050Cash flow data:net cash provided by operating activities$300,993 319,712 672,205 576,086 880,395Depreciation and amortization 297,734 296,773 303,004 295,054 306,437capital expenditures 275,573 156,180 108,925 217,824

105、163,076Acquisitions 24,097 79,917 5,924 8,276 147,097working capital(c)1,296,818 1,199,699 1,474,978 1,369,333 1,238,220changes in debt$(67,672)(200,804)(103,558)(333,112)(534,201)The year 2011 consolidated financial statements and managements discussion and analysis of financial condition and resul

106、ts of operations are provided in the companys 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

107、 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 subsidiarys taxable basis,which resulted in the recognition of a deferred tax asset of

108、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 No

109、n-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 2010net earnings attributable to Mohawk industries,inc.$173,922 185,471Reconciling items:Unrealized foreig

110、n 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 M

111、ohawk Industries,Inc.201,618 173,125Adjusted diluted earnings per share attributable to Mohawk Industries,Inc.$2.92 2.52Weighted-average common shares outstanding diluted 68,964 68,764(a)Unrealized foreign currency losses in Q3 2011 for certain of the companys consolidated foreign subsidiaries that

112、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 o

113、rder to assess the performance of the companys business for planning and forecasting in subsequent periods.22 Mohawk industries,inc.2011 Annual Report 23Reconciliation of Non-GAAP Measures(continued)(in thousands)Adjusted operating income and Adjusted EBITDA 2011 2010 2009 2008 2007operating income(

114、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 o

115、perating 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 for

116、eign currency losses(g)9,085 U.S.customs refund 7,730 9,154Adjusted EBITDA(b)$633,251 631,264 604,853 761,343 1,079,223net Debt Long-term debt(including current portion)$1,586,439 1,653,582 1,854,479 1,954,786 2,281,834Less:cash and cash equivalents (including restricted cash)(311,945)(382,171)(531,

117、458)(93,519)(89,604)net Debt(c)$1,274,494 1,271,411 1,323,021 1,861,267 2,192,230capital Long-term debt(including current portion)$1,586,439 1,653,582 1,854,479 1,954,786 2,281,834total stockholders equity 3,415,785 3,271,556 3,200,823 3,153,803 4,707,357capital$5,002,224 4,925,138 5,055,302 5,108,5

118、89 6,989,191Net debt to adjusted EBITDA(d)2.0 2.0 2.2 2.4 2.0net 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

119、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 EBI

120、TDA”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

121、2009.(g)Unrealized foreign currency losses in Q3 2011 for certain of the companys consolidated foreign subsidiaries that measure financial position and results using the U.S.dollar rather than the local currency.Cash and Cash Equivalents$in millionsYear-end cash declined due to a bond redemption ear

122、lier in the year.9020073122011Net Debt to Capitalpercentageour balance sheet leverage remains close to historical lows.31.4200725.52011Net Debt to Adjusted EBITDADespite an industry recession,our balance sheet strength has remained consistent.2.020072.02011Consolidated Adjusted EBITDA$in millionsour

123、 businesses continue to generate a healthy level of operating cash.1,0792007633201124 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 officerPhyllis O.Bonanno(3)former Pr

124、esident and chief Executive officer of international trade solutions,inc.(an international trade consulting firm)Frans De Cock former President of UnilinRichard C.III(1)chairman of Triumph Group,Inc.(a public,international aviation services company)Jeffrey s.lorberbaum chairman and chief Executive o

125、fficer 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 Au

126、tomotive Inc.(a manufacturer of automotive parts)David l.Kolb(3)former chairman and chief Executive officer of Mohawk industries,inc.Board of DirectorsPlease see the companys 2011 Proxy Statement for a listing of our executive officers.The Proxy Statement is available via the Internet at under Inves

127、tor Information.(1)Audit committee(2)compensation committee(3)Nominating and corporate Governance committeeFrom 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.Kolb2

128、011 Annual Report 25Design by corporate Reports Inc.,Atlanta,GA coRPoRATE HEADQUARTERSP.o.Box 12069160 south industrial Boulevardcalhoun,Georgia 30703(706)624-2246INDEPENDENT REGISTERED PUBLIc AccoUNTING fIRMkPMg llPAtlanta,georgiacoRPoRATE coUNSELAlston&Bird llPAtlanta,georgiatRAnsfeR Agent AnD Reg

129、istRARAmerican Stock Transfer and Trust companycorporate trust client services16633 N.Dallas Parkway,Suite 600Addison,texas 75001 (972)588-1889PUBLIcATIoNSThe companys Annual Report,Proxy Statement,form 8-k,10-k and 10-Q reports are available without charge and can be ordered via our stockholder com

130、munications service at(800)625-7721 or via the Internet at under Investor Information.Written requests should be sent to Deby forbus at the companys headquarters address above.PRoDUcT INQUIRIESfor more information about Mohawks products,visit our websites:investoR/AnAlyst contActfor additional infor

131、mation about Mohawk,please contact frank h.Boykin at (706)624-2695 or at the companys headquarters address above.ANNUAL MEETING of stockholDeRsthe Annual Meeting of stockholders of Mohawk industries,inc.,will be held at the companys headquarters on south industrial Boulevard in calhoun,Georgia,on Ma

132、y 9,2012,at 10:00 a.m.for directions and a map,call Deby forbus at(706)624-2246.coMMon stock PRice RAngeMohawks 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 exchang

133、e,for each period indicated.MohAwk coMMon stock2011 high lowfirst Quarter$63.12$54.42 Second Quarter 68.86 57.43Third Quarter 61.47 39.93fourth Quarter 61.30 40.192010 high lowfirst Quarter$55.52$41.33Second Quarter 66.93 43.58Third Quarter 54.94 42.61fourth Quarter 61.28 51.55SUSTAINABILITYMohawk i

134、s 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 oPPoRTUNITYMohawk is an equal opportunity/Affirmative Action

135、employer committed to attracting a diverse pool of applicants and sustaining an inclusive workforce.nyse AffiRMAtion ceRtificAtionsAs 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 an

136、d Exchange commission(“SEc”).Among other requirements,Mohawks 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 ce

137、rtification.on June 2,2011,Mohawks 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 fi

138、nancial officer required by Section 302 of Sarbanes-oxley Act of 2002 as an exhibit to the companys 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$120200620072008200920102011$100$98.76$79.98$90.57Stock P

139、erformance Graph The following is a line graph comparing the yearly percentage change in the companys cumulative total stockholder returns to those of the Standard&Poors 500 Index and a group of peer issuers beginning on December 31,2006 and ending on December 31,2011.The peer group includes the fol

140、lowing 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 companys common Stock and in each index

141、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 companys performance relative to peer companies.160 South Industrial BoulevardCal

142、houn,Georgia Mohawk Industries,Inc.is one of the worlds 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