Mohawk Industries 10-K (2022-02-23)

For the fiscal year ended December 31, 2021

 

 

Item 1.Business

 

Unless this Form 10-K indicates otherwise or the context otherwise requires, the terms “we,” “our,” “us,” “Mohawk,” or “the Company” as used in this Form 10-K refer to Mohawk Industries, Inc.

 

 

 

General

 

Mohawk is a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The Company’s vertically integrated manufacturing and distribution processes provide competitive advantages in carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile (“LVT”) and sheet vinyl flooring.

 

enhance : enhance something to increase or further improve the good quality, value or status of somebody/something

 

 

 

The Company’s industry-leading innovation develops products and technologies that differentiate its brands in the marketplace and satisfy all flooring-related remodeling and new construction requirements.

 

differentiate : to recognize or show that two things are not the same / differentiate something (from something) to be the particular thing that shows that things or people are not the same

 

 

 

The Company’s brands are among the most recognized in the industry and include American Olean®, Daltile®, Durkan®, Eliane®, Feltex®, Godfrey Hirst®, IVC Commercial®, IVC Home®, Karastan®, Kerama Marazzi®, Marazzi®, Moduleo®, Mohawk®, Pergo®, Quick-Step® and Unilin®.

 

 

 

During the past two decades, the Company has transformed its business from an American carpet manufacturer into the world’s largest flooring company with operations in Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New Zealand, Russia, United Kingdom and the United States.

 

 

 

The Company had annual net sales in 2021 of $11.2 billion. Approximately 60% of this amount was generated by sales in the United States and approximately 40% was generated by sales outside the United States.

 

 

 

The Company has three reporting segments, Global Ceramic, Flooring North America (“Flooring NA”) and Flooring Rest of the World (“Flooring ROW”) with their 2021 net sales representing 35%, 37% and 28%, respectively, of the Company’s total revenue.

 

respectively : in the same order as the people or things already mentioned

 

 

 

Selected financial information for the three segments, geographic net sales and the location of long-lived assets are set forth in Note 18-Segment Reporting.

 

forth : away from a place; out / towards a place; forwards

 

 

 

The Global Ceramic Segment designs, manufactures, sources, distributes and markets a broad line of ceramic, porcelain and natural stone tile products used for floor and wall applications in residential and commercial channels for both remodeling and new construction. 

 

porcelain : a hard, white, shiny substance made by baking clay and used for making delicate cups, plates and other objects; objects that are made of this

 

 

 

In addition, the Global Ceramic Segment manufactures, sources and distributes other products, including natural stone, porcelain slabs and quartz countertops, as well as installation materials. The Global Ceramic Segment markets and distributes its products under various brands, including the following:  American Olean, Daltile, Eliane, EmilGroup®, KAI®, Kerama Marazzi, Marazzi and Ragno®.

 

 

 

The Segment sells its products through company-owned and franchised operations, independent distributors, home centers, floor covering retailers, ceramic specialists, commercial contractors and commercial end users.

 

 

 

The Global Ceramic Segment operations are vertically integrated from the production of raw material for body and glaze preparation to the manufacturing and distribution of ceramic and porcelain tile and countertops.

 

glaze : glaze (over) if a person’s eyes glaze or glaze over, the person begins to look bored or tired / glaze something to fit sheets of glass into something

 

 

 

The Flooring NA Segment designs, manufactures, sources and distributes a broad range of floor covering products in a variety of colors, textures and patterns for both residential and commercial remodeling and new construction channels.

 

 

 

The Segment’s product lines include broadloom carpet, carpet tile, rugs and mats, carpet pad, laminate, medium-density fiberboard (“MDF”), wood flooring, LVT and sheet vinyl. The Flooring NA Segment markets and distributes its flooring products under various brands, including the following: Aladdin Commercial®, Durkan, IVC®, Karastan, Mohawk, Mohawk Group®, Mohawk Home®, Pergo, Portico® and Quick-Step.

 

 

 

The Segment sells its products through floor covering retailers, distributors, home centers, mass merchants, department stores, e-commerce retailers, shop at home, buying groups, builders, commercial contractors and commercial end users.

 

 

 

The Flooring ROW Segment designs, manufactures, sources and distributes a wide variety of laminate, LVT and sheet vinyl, wood flooring, broadloom carpet and carpet tile collections used in the residential and commercial markets for both remodeling and new construction.

 

 

 

In addition, the Flooring ROW Segment manufactures roofing panels, insulation boards, mezzanine flooring, MDF and chipboards primarily for the European market. The Segment also licenses certain patents related to flooring manufacturing throughout the world.

 

insulation : the act of protecting something with a material that prevents heat, sound, electricity, etc. from passing through; the materials used for this

 

 

 

The Segment markets and distributes its products under various brands, including the following: Feltex, Godfrey Hirst, Hycraft®, IVC Commercial, IVC Home, Leoline®, Moduleo, Pergo, Quick-Step, Unilin and Xtratherm®.

 

 

 

The Segment sells its products through floor covering retailers, wholesalers, company-operated distributors, independent distributors and home centers.

 

 

 

(the rest omitted)