This document provides selected financial data for Mohawk Industries for the years 2002-1997. It includes income statement data such as net sales, costs, expenses, earnings, and earnings per share. It also includes balance sheet data such as working capital, assets, liabilities, and stockholders' equity. Key notes provide additional details on items in the financial statements such as restructuring costs, asset write-downs, legal settlements, and stock splits. The document also identifies two operating segments for Mohawk Industries following its acquisition of Dal-Tile in 2002 - the Mohawk segment and the Dal-Tile segment.
This document provides selected financial data for Mohawk Industries for the years 2003-2002. It includes statements of earnings, balance sheets, and cash flows. It also discusses critical accounting policies including inventory valuation, accounts receivable, revenue recognition, goodwill and intangible asset impairments, and deferred taxes. The company acquired Dal-Tile in 2002 and Lees Carpet in 2003 to expand into ceramic tile and commercial carpet markets.
Mohawk Industries is a flooring manufacturer that acquired other flooring companies. This document provides selected financial data for Mohawk from 2004 to 1996. In 2004, Mohawk's net sales were $5.88 billion and net earnings were $368.6 million. Working capital in 2004 was $968.9 million and total assets were $4.4 billion. Mohawk's financial performance has generally increased over this period as net sales, net earnings, working capital and total assets have risen.
The document discusses Duke Energy's use of non-GAAP financial measures to evaluate performance, including ongoing earnings per share, ongoing segment EBIT, and other measures adjusted for special items. It provides context for these measures and notes that special items represent charges and credits that are not expected to recur regularly. It also states that reconciliations to the most directly comparable GAAP measures are not possible due to the inability to forecast future special items.
This document provides non-GAAP reconciliations of Alltel Corporation's results of operations for the third quarter and nine months of 2006. It reconciles certain items excluded from the company's results of continuing operations to show its results from current businesses on a non-GAAP basis. For the nine months, excluded items increased income from continuing operations by $19 million and net income by $306 million. For the third quarter, excluded items increased income from continuing operations by $65 million and net income by $43 million.
The document discusses Duke Energy Corporation's use of non-GAAP financial measures in its First Quarter 2007 Earnings Review presentation. Specifically, it discusses measures such as ongoing diluted EPS, ongoing segment EBIT, and expected ongoing diluted EPS growth rates which exclude special items that management believes are not recurring. It provides reconciliations of these non-GAAP measures to the most directly comparable GAAP measures for previous periods to facilitate understanding of the non-GAAP information.
tech data Fiscal 2009 First-Quarter Resultsfinance11
This document provides a reconciliation of GAAP operating income, net income, and net income per diluted share to non-GAAP amounts for the company for the three months ended April 30, 2008 and April 30, 2007. It shows that non-GAAP operating income and net income were higher than GAAP amounts for both periods due to the exclusion of losses from the disposal of subsidiaries and restructuring charges. Non-GAAP net income per diluted share was also higher after excluding these items and their related tax effects.
tech data Fiscal Year 2008 Second Quarter and Six Months Resultsfinance11
This document provides a reconciliation between GAAP and non-GAAP financial measures for operating income, net income, and earnings per share for a company. It shows that non-GAAP measures exclude items such as goodwill impairment, losses from disposing of subsidiaries, restructuring charges, and other one-time costs in order to provide alternative views of the company's performance. The non-GAAP figures are provided to give investors additional tools to evaluate the business.
Duke Energy Corporation provided reconciliations of non-GAAP financial measures (ongoing earnings) to the most directly comparable GAAP measures (reported earnings) for the second quarter and first half of 2006 and 2007. Special items were excluded from ongoing earnings and included in total adjustments to reconcile to reported earnings. Management believes special items will not recur regularly.
This document provides selected financial data for Mohawk Industries for the years 2003-2002. It includes statements of earnings, balance sheets, and cash flows. It also discusses critical accounting policies including inventory valuation, accounts receivable, revenue recognition, goodwill and intangible asset impairments, and deferred taxes. The company acquired Dal-Tile in 2002 and Lees Carpet in 2003 to expand into ceramic tile and commercial carpet markets.
Mohawk Industries is a flooring manufacturer that acquired other flooring companies. This document provides selected financial data for Mohawk from 2004 to 1996. In 2004, Mohawk's net sales were $5.88 billion and net earnings were $368.6 million. Working capital in 2004 was $968.9 million and total assets were $4.4 billion. Mohawk's financial performance has generally increased over this period as net sales, net earnings, working capital and total assets have risen.
The document discusses Duke Energy's use of non-GAAP financial measures to evaluate performance, including ongoing earnings per share, ongoing segment EBIT, and other measures adjusted for special items. It provides context for these measures and notes that special items represent charges and credits that are not expected to recur regularly. It also states that reconciliations to the most directly comparable GAAP measures are not possible due to the inability to forecast future special items.
This document provides non-GAAP reconciliations of Alltel Corporation's results of operations for the third quarter and nine months of 2006. It reconciles certain items excluded from the company's results of continuing operations to show its results from current businesses on a non-GAAP basis. For the nine months, excluded items increased income from continuing operations by $19 million and net income by $306 million. For the third quarter, excluded items increased income from continuing operations by $65 million and net income by $43 million.
The document discusses Duke Energy Corporation's use of non-GAAP financial measures in its First Quarter 2007 Earnings Review presentation. Specifically, it discusses measures such as ongoing diluted EPS, ongoing segment EBIT, and expected ongoing diluted EPS growth rates which exclude special items that management believes are not recurring. It provides reconciliations of these non-GAAP measures to the most directly comparable GAAP measures for previous periods to facilitate understanding of the non-GAAP information.
tech data Fiscal 2009 First-Quarter Resultsfinance11
This document provides a reconciliation of GAAP operating income, net income, and net income per diluted share to non-GAAP amounts for the company for the three months ended April 30, 2008 and April 30, 2007. It shows that non-GAAP operating income and net income were higher than GAAP amounts for both periods due to the exclusion of losses from the disposal of subsidiaries and restructuring charges. Non-GAAP net income per diluted share was also higher after excluding these items and their related tax effects.
tech data Fiscal Year 2008 Second Quarter and Six Months Resultsfinance11
This document provides a reconciliation between GAAP and non-GAAP financial measures for operating income, net income, and earnings per share for a company. It shows that non-GAAP measures exclude items such as goodwill impairment, losses from disposing of subsidiaries, restructuring charges, and other one-time costs in order to provide alternative views of the company's performance. The non-GAAP figures are provided to give investors additional tools to evaluate the business.
Duke Energy Corporation provided reconciliations of non-GAAP financial measures (ongoing earnings) to the most directly comparable GAAP measures (reported earnings) for the second quarter and first half of 2006 and 2007. Special items were excluded from ongoing earnings and included in total adjustments to reconcile to reported earnings. Management believes special items will not recur regularly.
The document summarizes Tribune Company's financial results for the first quarter of 2003 compared to 2002. Some key points:
- Operating revenues increased 5% to $1.29 billion driven by a 13% increase in television revenues. Operating profit before restructuring charges rose 10% to $276 million.
- Net income was $141 million compared to a net loss of $102 million in 2002. Earnings per share increased significantly.
- Publishing operating profit rose 21% to $198 million due to cost reductions. Broadcasting profit increased 25% to $90 million from higher television revenues and profits.
- Corporate losses narrowed to $11 million from restructuring charges in the prior year. The company had
The annual report summarizes Symantec's financial results for fiscal year 2006. It reported record non-GAAP revenue of $5 billion, up 8% from the previous year. Non-GAAP earnings per share were $1, up 16% from 2005. Symantec completed its merger with Veritas Software, significantly expanding its portfolio and market position in storage and backup software. Going forward, Symantec aims to continue innovating its security and availability products and establishing new solutions to address evolving cyber threats and market needs.
This document provides reconciliations between Duke Energy Corporation's ongoing (non-GAAP) earnings per share and reported (GAAP) earnings per share for the second quarter of 2005 and year-to-date 2005. It identifies special items excluded from ongoing EPS, including mark-to-market changes on hedges and gains/losses from sales of assets, and reconciles their impact. Segment earnings before interest and taxes are also reconciled from ongoing to reported figures.
This document provides reconciliations between Duke Energy Corporation's ("Duke Energy") non-GAAP financial measures and the most directly comparable GAAP measures for various periods. It discusses Duke Energy's use of "ongoing" measures which exclude special items that management believes are not recurring, such as gains, losses and impairment charges. The document also references Duke Energy's expectation to achieve ongoing EPS targets and segment earnings growth rates through 2012.
The document is Lockheed Martin's 1995 Annual Report. It summarizes the company's strong financial and operational performance in its first year after merging with Martin Marietta. Key points include record net earnings of $1.12 billion, excluding merger charges, and meeting over 96% of major program milestones. Lockheed Martin also captured over 60% of competitive bids pursued and maintained a $41 billion backlog. The report highlights the company positioning itself as a total systems provider across various sectors.
1) The company reported strong financial results in the first quarter of 2012, with distributable cash flow up 30% compared to the same period in 2011.
2) It completed a $1.3 billion acquisition of Maersk LNG vessels in late February that expanded its fleet.
3) Japanese LNG imports increased 24% in the first quarter compared to the previous year due to all nuclear power plants being offline, leading to higher shipping rates and a positive outlook for the LNG shipping industry in 2012.
1) The document summarizes Teekay LNG Partners' first quarter 2012 earnings presentation. It reported a 30% increase in distributable cash flow from the same period last year.
2) It completed a $1.3 billion acquisition of Maersk LNG vessels in late February through a joint venture.
3) Strong LNG demand growth from Japan is leading to higher shipping rates in 2012 after Japan's nuclear plants were taken offline, increasing LNG imports.
4) Teekay LNG Partners has strong liquidity of $440 million as of March 31, 2012 and no near-term debt maturities, giving it a solid financial position.
Whole Foods Market reported $39.1 million in net income for the first quarter of 2008. Cash flows from operating activities provided $76.1 million. Cash used in investing activities included $106.5 million for new store development and $59.1 million for other property and equipment. Cash from financing activities included $30 million from long-term borrowings but was reduced by $25.1 million for common dividends paid. As a result, cash and cash equivalents increased by $43.9 million during the quarter.
tech data Fiscal 2008 Third Quarter and Nine Month Resultsfinance11
This document provides a reconciliation between GAAP and non-GAAP financial measures for operating income, net income, and net income per diluted share for Q3 and the first 9 months of 2007 and 2006. Key items excluded from the non-GAAP measures include goodwill impairment, losses from disposal of subsidiaries, restructuring charges, and other consulting costs. The exclusions result in higher non-GAAP operating income, net income, and earnings per share figures compared to the GAAP measures.
tech data Q4 and Fiscal Year 2006 Restated for Discontinued Operationsfinance11
The document provides a reconciliation of GAAP operating income and net income to non-GAAP operating income and net income for a company. For both the quarter and year, restructuring charges and other consulting costs were excluded from non-GAAP figures. Tax effects related to these exclusions were also adjusted in non-GAAP net income. Per share amounts were provided on both a GAAP and non-GAAP basis.
tech data Fourth-Quarter and Fiscal-Year 2008finance11
This document provides a reconciliation between GAAP and non-GAAP financial measures for operating income, net income, and net income per diluted share for a company. It shows adjustments made to GAAP numbers to arrive at non-GAAP numbers, including removing goodwill impairment, losses from disposal of subsidiaries, restructuring charges, and other one-time costs. These adjustments are made to provide a better understanding of the company's underlying operating performance and comparisons over periods.
Tribune Company reported financial results for the fourth quarter of 2006 with increases in operating revenues and income from continuing operations compared to the same period in 2005. Operating revenues grew 5.4% to $1.47 billion driven by increases in publishing and broadcasting revenues. Income from continuing operations increased 76.9% to $232.1 million due to higher operating profit and non-operating gains, partially offset by higher interest expense. Net income attributable to common shares grew 80.6% to $239.1 million. Earnings per share increased significantly for both basic and diluted amounts.
coca cola Reconciliation of Q1 2007 Non-GAAP Financial Measuresfinance9
The document provides a reconciliation of the company's GAAP and non-GAAP financial measures for the quarters ending March 30, 2007 and March 31, 2006. It summarizes that management believes the non-GAAP measures provide a more meaningful comparison by excluding certain items that impact comparability between periods. The tables show reconciliations of key financial figures between GAAP and non-GAAP reporting, including revenues, expenses, profits, and margins. It also provides segment-level comparisons of operating income growth between the two periods under GAAP and non-GAAP measures.
Hexion reported financial results for Q4 2008 and fiscal year 2008. Q4 revenue declined 20% year-over-year to $1.18 billion due to weak market conditions and inventory destocking by customers amid the global recession. The company reported an operating loss of $876 million for Q4, which included $800 million in costs related to the terminated Huntsman merger. For the full year, revenues increased 5% to $6.09 billion but the company reported an operating loss of $893 million. Hexion is taking aggressive actions to reduce costs and enhance liquidity to address challenges in this difficult market environment.
Tribune Company reported lower revenues and operating profits in the first quarter of 2008 compared to the same period in 2007. Revenues declined 7.8% to $1.1 billion due to decreases at the Publishing and Broadcasting & Entertainment segments. Overall operating profit fell 21.2% to $143.4 million due to lower profits at Publishing and higher losses at Corporate, partially offset by higher profits at Broadcasting & Entertainment. Net income increased significantly to $1.8 billion primarily due to a large non-operating tax adjustment related to a change in the company's tax status.
Form 4835-Farm Rental Income and Expenses taxman taxman
This document is an IRS Form 4835 for reporting farm rental income and expenses from crop and livestock shares received by a landowner who did not materially participate in the farm operation.
The form has two parts. Part I is for reporting gross farm rental income based on production, including income from crops, cooperative distributions, agricultural program payments, and other sources. Part II is for reporting expenses related to the farm rental property. Expenses are listed by category and must be reported on an accrual basis. The form calculates net farm rental income or loss.
The Tribune Company saw declines in operating revenues and income from continuing operations in the second quarter of 2007 compared to the same period in 2006. Operating revenues fell 6.8% and income from continuing operations dropped 78.2%. Expenses rose due to restructuring charges and plant closure costs. Non-operating losses also increased significantly due to losses on derivatives and investments. Net income declined 58.7% due to lower operating results and higher non-operating losses.
This document is Ameren Corporation's 2006 annual report. It highlights that in 2006 Ameren was committed to generating, delivering, and distributing electricity and natural gas safely and reliably while protecting the environment. It also discusses how Ameren worked to reduce plant emissions to meet new clean air regulations, responded effectively to severe storms to restore power to customers, and helped customers adapt to changing energy markets in Illinois. The financial highlights section at the end summarizes Ameren's 2006 financial results including operating revenues, expenses, income, earnings per share, dividends, stock information, assets, liabilities, and capitalization ratios.
This document is Ameren's consolidated statement of income, balance sheet, and cash flows for the years ended December 31, 2003, 2002, and 2001.
In 2003, Ameren reported total operating revenues of $4.6 billion and net income of $524 million. Total assets were $14.2 billion as of December 31, 2003, with long-term debt of $4.1 billion and total stockholders' equity of $4.4 billion.
Cash provided by operating activities was $1 billion in 2003. Cash used in investing activities included $682 million for construction expenditures and $479 million for acquisitions. Financing activities included $410 million in dividends paid and $815 million in
Mohawk Industries is the second largest carpet manufacturer in the US. In 1999, Mohawk saw increases in net sales (12% to $3.1 billion), net earnings (23% to $157.2 million), and earnings per share (23% to $2.61 per share). Mohawk achieved strong growth through a combination of internal expansion and acquisitions, gaining market share despite only a 3% industry growth. While Mohawk's financial performance was strong, its stock price did not reflect this, leading the board to approve a share repurchase program to demonstrate confidence in the company's future.
1) Mohawk Industries is a leading global flooring manufacturer with over 120 years in business. It produces carpet, ceramic tile, wood, stone, laminate, vinyl and other flooring products.
2) In 2004, Mohawk achieved record financial results with $5.9 billion in sales and $369 million in net earnings, increases of 18% and 19% respectively over the previous year.
3) Mohawk has a diverse customer base and end-use markets. It aims to cover all flooring needs through its broad portfolio of products, brands, manufacturing and distribution capabilities.
Dover's annual report outlines its consistent business philosophy of achieving and maintaining market leadership in every market it serves. The report discusses Dover's goals of perceiving customers' needs, providing better products/services than competitors, investing to maintain competitive advantages, and expecting a fair price. It emphasizes focusing on quality, innovation, service, and long-term orientation. Dover enhances leadership through acquisitions that strengthen existing markets or offer new ones. Intrinsic to Dover's success is decentralized management that gives autonomy to company presidents.
The document summarizes Tribune Company's financial results for the first quarter of 2003 compared to 2002. Some key points:
- Operating revenues increased 5% to $1.29 billion driven by a 13% increase in television revenues. Operating profit before restructuring charges rose 10% to $276 million.
- Net income was $141 million compared to a net loss of $102 million in 2002. Earnings per share increased significantly.
- Publishing operating profit rose 21% to $198 million due to cost reductions. Broadcasting profit increased 25% to $90 million from higher television revenues and profits.
- Corporate losses narrowed to $11 million from restructuring charges in the prior year. The company had
The annual report summarizes Symantec's financial results for fiscal year 2006. It reported record non-GAAP revenue of $5 billion, up 8% from the previous year. Non-GAAP earnings per share were $1, up 16% from 2005. Symantec completed its merger with Veritas Software, significantly expanding its portfolio and market position in storage and backup software. Going forward, Symantec aims to continue innovating its security and availability products and establishing new solutions to address evolving cyber threats and market needs.
This document provides reconciliations between Duke Energy Corporation's ongoing (non-GAAP) earnings per share and reported (GAAP) earnings per share for the second quarter of 2005 and year-to-date 2005. It identifies special items excluded from ongoing EPS, including mark-to-market changes on hedges and gains/losses from sales of assets, and reconciles their impact. Segment earnings before interest and taxes are also reconciled from ongoing to reported figures.
This document provides reconciliations between Duke Energy Corporation's ("Duke Energy") non-GAAP financial measures and the most directly comparable GAAP measures for various periods. It discusses Duke Energy's use of "ongoing" measures which exclude special items that management believes are not recurring, such as gains, losses and impairment charges. The document also references Duke Energy's expectation to achieve ongoing EPS targets and segment earnings growth rates through 2012.
The document is Lockheed Martin's 1995 Annual Report. It summarizes the company's strong financial and operational performance in its first year after merging with Martin Marietta. Key points include record net earnings of $1.12 billion, excluding merger charges, and meeting over 96% of major program milestones. Lockheed Martin also captured over 60% of competitive bids pursued and maintained a $41 billion backlog. The report highlights the company positioning itself as a total systems provider across various sectors.
1) The company reported strong financial results in the first quarter of 2012, with distributable cash flow up 30% compared to the same period in 2011.
2) It completed a $1.3 billion acquisition of Maersk LNG vessels in late February that expanded its fleet.
3) Japanese LNG imports increased 24% in the first quarter compared to the previous year due to all nuclear power plants being offline, leading to higher shipping rates and a positive outlook for the LNG shipping industry in 2012.
1) The document summarizes Teekay LNG Partners' first quarter 2012 earnings presentation. It reported a 30% increase in distributable cash flow from the same period last year.
2) It completed a $1.3 billion acquisition of Maersk LNG vessels in late February through a joint venture.
3) Strong LNG demand growth from Japan is leading to higher shipping rates in 2012 after Japan's nuclear plants were taken offline, increasing LNG imports.
4) Teekay LNG Partners has strong liquidity of $440 million as of March 31, 2012 and no near-term debt maturities, giving it a solid financial position.
Whole Foods Market reported $39.1 million in net income for the first quarter of 2008. Cash flows from operating activities provided $76.1 million. Cash used in investing activities included $106.5 million for new store development and $59.1 million for other property and equipment. Cash from financing activities included $30 million from long-term borrowings but was reduced by $25.1 million for common dividends paid. As a result, cash and cash equivalents increased by $43.9 million during the quarter.
tech data Fiscal 2008 Third Quarter and Nine Month Resultsfinance11
This document provides a reconciliation between GAAP and non-GAAP financial measures for operating income, net income, and net income per diluted share for Q3 and the first 9 months of 2007 and 2006. Key items excluded from the non-GAAP measures include goodwill impairment, losses from disposal of subsidiaries, restructuring charges, and other consulting costs. The exclusions result in higher non-GAAP operating income, net income, and earnings per share figures compared to the GAAP measures.
tech data Q4 and Fiscal Year 2006 Restated for Discontinued Operationsfinance11
The document provides a reconciliation of GAAP operating income and net income to non-GAAP operating income and net income for a company. For both the quarter and year, restructuring charges and other consulting costs were excluded from non-GAAP figures. Tax effects related to these exclusions were also adjusted in non-GAAP net income. Per share amounts were provided on both a GAAP and non-GAAP basis.
tech data Fourth-Quarter and Fiscal-Year 2008finance11
This document provides a reconciliation between GAAP and non-GAAP financial measures for operating income, net income, and net income per diluted share for a company. It shows adjustments made to GAAP numbers to arrive at non-GAAP numbers, including removing goodwill impairment, losses from disposal of subsidiaries, restructuring charges, and other one-time costs. These adjustments are made to provide a better understanding of the company's underlying operating performance and comparisons over periods.
Tribune Company reported financial results for the fourth quarter of 2006 with increases in operating revenues and income from continuing operations compared to the same period in 2005. Operating revenues grew 5.4% to $1.47 billion driven by increases in publishing and broadcasting revenues. Income from continuing operations increased 76.9% to $232.1 million due to higher operating profit and non-operating gains, partially offset by higher interest expense. Net income attributable to common shares grew 80.6% to $239.1 million. Earnings per share increased significantly for both basic and diluted amounts.
coca cola Reconciliation of Q1 2007 Non-GAAP Financial Measuresfinance9
The document provides a reconciliation of the company's GAAP and non-GAAP financial measures for the quarters ending March 30, 2007 and March 31, 2006. It summarizes that management believes the non-GAAP measures provide a more meaningful comparison by excluding certain items that impact comparability between periods. The tables show reconciliations of key financial figures between GAAP and non-GAAP reporting, including revenues, expenses, profits, and margins. It also provides segment-level comparisons of operating income growth between the two periods under GAAP and non-GAAP measures.
Hexion reported financial results for Q4 2008 and fiscal year 2008. Q4 revenue declined 20% year-over-year to $1.18 billion due to weak market conditions and inventory destocking by customers amid the global recession. The company reported an operating loss of $876 million for Q4, which included $800 million in costs related to the terminated Huntsman merger. For the full year, revenues increased 5% to $6.09 billion but the company reported an operating loss of $893 million. Hexion is taking aggressive actions to reduce costs and enhance liquidity to address challenges in this difficult market environment.
Tribune Company reported lower revenues and operating profits in the first quarter of 2008 compared to the same period in 2007. Revenues declined 7.8% to $1.1 billion due to decreases at the Publishing and Broadcasting & Entertainment segments. Overall operating profit fell 21.2% to $143.4 million due to lower profits at Publishing and higher losses at Corporate, partially offset by higher profits at Broadcasting & Entertainment. Net income increased significantly to $1.8 billion primarily due to a large non-operating tax adjustment related to a change in the company's tax status.
Form 4835-Farm Rental Income and Expenses taxman taxman
This document is an IRS Form 4835 for reporting farm rental income and expenses from crop and livestock shares received by a landowner who did not materially participate in the farm operation.
The form has two parts. Part I is for reporting gross farm rental income based on production, including income from crops, cooperative distributions, agricultural program payments, and other sources. Part II is for reporting expenses related to the farm rental property. Expenses are listed by category and must be reported on an accrual basis. The form calculates net farm rental income or loss.
The Tribune Company saw declines in operating revenues and income from continuing operations in the second quarter of 2007 compared to the same period in 2006. Operating revenues fell 6.8% and income from continuing operations dropped 78.2%. Expenses rose due to restructuring charges and plant closure costs. Non-operating losses also increased significantly due to losses on derivatives and investments. Net income declined 58.7% due to lower operating results and higher non-operating losses.
This document is Ameren Corporation's 2006 annual report. It highlights that in 2006 Ameren was committed to generating, delivering, and distributing electricity and natural gas safely and reliably while protecting the environment. It also discusses how Ameren worked to reduce plant emissions to meet new clean air regulations, responded effectively to severe storms to restore power to customers, and helped customers adapt to changing energy markets in Illinois. The financial highlights section at the end summarizes Ameren's 2006 financial results including operating revenues, expenses, income, earnings per share, dividends, stock information, assets, liabilities, and capitalization ratios.
This document is Ameren's consolidated statement of income, balance sheet, and cash flows for the years ended December 31, 2003, 2002, and 2001.
In 2003, Ameren reported total operating revenues of $4.6 billion and net income of $524 million. Total assets were $14.2 billion as of December 31, 2003, with long-term debt of $4.1 billion and total stockholders' equity of $4.4 billion.
Cash provided by operating activities was $1 billion in 2003. Cash used in investing activities included $682 million for construction expenditures and $479 million for acquisitions. Financing activities included $410 million in dividends paid and $815 million in
Mohawk Industries is the second largest carpet manufacturer in the US. In 1999, Mohawk saw increases in net sales (12% to $3.1 billion), net earnings (23% to $157.2 million), and earnings per share (23% to $2.61 per share). Mohawk achieved strong growth through a combination of internal expansion and acquisitions, gaining market share despite only a 3% industry growth. While Mohawk's financial performance was strong, its stock price did not reflect this, leading the board to approve a share repurchase program to demonstrate confidence in the company's future.
1) Mohawk Industries is a leading global flooring manufacturer with over 120 years in business. It produces carpet, ceramic tile, wood, stone, laminate, vinyl and other flooring products.
2) In 2004, Mohawk achieved record financial results with $5.9 billion in sales and $369 million in net earnings, increases of 18% and 19% respectively over the previous year.
3) Mohawk has a diverse customer base and end-use markets. It aims to cover all flooring needs through its broad portfolio of products, brands, manufacturing and distribution capabilities.
Dover's annual report outlines its consistent business philosophy of achieving and maintaining market leadership in every market it serves. The report discusses Dover's goals of perceiving customers' needs, providing better products/services than competitors, investing to maintain competitive advantages, and expecting a fair price. It emphasizes focusing on quality, innovation, service, and long-term orientation. Dover enhances leadership through acquisitions that strengthen existing markets or offer new ones. Intrinsic to Dover's success is decentralized management that gives autonomy to company presidents.
Mohawk Industries is a leading global flooring manufacturer that produces carpet, rugs, ceramic tile, wood, stone, laminate, and other flooring products. In 2006, Mohawk saw sales growth of 19% to $7.9 billion despite challenges in the housing market, due to its recent acquisition of Unilin and price increases. Earnings per share grew 17% compared to 2005. Mohawk invested $166 million in capital expenditures to increase production capacity and enhance customer service. Going forward, Mohawk aims to continue expanding its product categories, customer markets, and global presence through strategic investments and organizational changes.
Dover Corporation reported strong financial results for the second quarter of 2007, with record revenue, earnings, and bookings. Revenue increased 12% year-over-year to $1.9 billion, driven by both organic growth and acquisitions. Earnings per share grew 10% to $0.85 per share. Several industrial segments performed well including oil and gas equipment, mobile equipment, and process equipment. The company continued to generate strong free cash flow. Overall, Dover exceeded targets for most key financial metrics in the second quarter.
The document is Dover Corporation's 2007 Annual Report. It provides an overview of Dover as a diversified global manufacturer serving industrial and commercial markets. It discusses Dover's realignment into four business segments: Industrial Products, Engineered Systems, Fluid Management, and Electronic Technologies. The realignment enhances sharing of best practices, identifies synergy opportunities, provides direction for acquisitions, and creates leadership opportunities while providing clarity to shareholders.
During the fourth quarter of 2008:
- The company repurchased 10 million shares at an average price of $46.15 per share, completing its $500 million share repurchase program.
- It acquired one company for $3.9 million to boost its Fluid Management segment.
- It sold a line of business for a $7.5 million gain in its Electronic Technologies segment.
- It incurred tax expenses of $28 million related to prior tax matters and discontinued operations.
community health systems annual reports 2003finance30
Community Health Systems is a leading operator of 72 general acute care hospitals across 22 states. It is headquartered in Brentwood, Tennessee and trades on the New York Stock Exchange under the symbol CYH. In 2003, the company reported net operating revenues of $2.8 billion, net income of $131 million, and earnings per share of $1.30 diluted. The document provides an overview of Community Health Systems including its hospital locations, key financial data, and operating performance over time.
1) Ameren reported 2007 earnings per share of $2.98 but expects 2008 EPS to be between $2.68-$3.08 due to various factors including weather, fuel prices, plant maintenance costs and regulatory proceedings.
2) Ameren aims for 4-6% annual EPS growth through 2010 and beyond, targeting over $4 EPS by 2011 and strong long-term shareholder returns.
3) Ameren provided its 2008 EPS guidance breakdown by segment and an overview of its regulatory proceedings calendar.
This document provides a summary of Ameren's Q1 2007 earnings and earnings guidance for 2007. Some key points:
- Q1 2007 GAAP earnings per share were $0.59, excluding costs related to severe January 2007 storms. Non-GAAP earnings were $0.63 per share.
- Factors that impacted Q1 2007 earnings both positively and negatively compared to Q1 2006 are listed, such as higher electric and gas margins but also higher fuel prices and labor costs.
- 2007 earnings guidance on a non-GAAP basis is provided as $3.15-$3.60 per share, excluding costs from January 2007 storms and potential future charges. A reconciliation of the factors expected to
This document provides an overview and summary of Ameren Corporation's financial condition and results of operations. Some key points:
- Ameren is a public utility holding company with rate-regulated electric, gas, and non-rate regulated generation subsidiaries operating in Missouri and Illinois.
- In 2003, Ameren acquired CILCORP, adding over 200,000 electric and gas customers. Ameren also plans to acquire Illinois Power, adding over 1 million more customers, pending regulatory approval.
- Ameren's 2003 net income was positively impacted by the CILCORP acquisition, higher power prices on interchange sales, and cost reductions. This was partially offset by cooler weather reducing sales and an electric rate reduction in
This document provides an agenda and background information for an investor presentation by Mohawk Industries. The presentation will be held in Charlotte, NC and include management presentations in the morning and tours of two Mohawk manufacturing facilities in the afternoon. Mohawk is a leading flooring manufacturer with market positions across major categories. It aims to deliver consistent financial performance through disciplined management and a vertically integrated business model.
The document is a transcript of Dover Corporation's third quarter 2008 earnings conference call. The key points are:
1) Dover reported solid third quarter results with EPS of $1.01, up 13% year-over-year, and revenues of $2 billion, up 5%.
2) Segment performance was mixed, with strong growth at Fluid Management but declines at Industrial Products and Engineered Systems.
3) Dover generated $306 million in free cash flow for the quarter, up from the prior year, and remains focused on acquisitions and returning capital to shareholders.
Dover Corporation reported a 16% increase in EPS to $0.88 for Q3 2007 compared to $0.76 for Q3 2006. Revenue increased 15% to $1.84 billion. For the first nine months of 2007, EPS increased 11% to $2.36 while revenue increased 15% to $5.37 billion. The company achieved organic growth of 3.3% and acquisition growth of 9.6% in Q3. Looking ahead, Dover expects continued solid business in Q4 but with moderating growth and restructuring charges of $0.02-0.03 per share.
This document provides an annual report from Pilgrim's Pride Corporation for the year 2003. It summarizes the company's financial performance for the fiscal year, noting record sales of $2.6 billion and net income of $56 million. It highlights the acquisition of ConAgra Foods' chicken division, which doubled Pilgrim's Pride in size. The report expresses confidence that the acquisition will create significant growth opportunities by expanding Pilgrim's Pride's product offerings, distribution capabilities, and earnings potential. It outlines the company's strategic priorities going forward and optimism about realizing the full potential of the new, larger organization.
This document provides selected financial data for Mohawk Industries for the years 2003-2002. It includes statements of earnings, balance sheets, and cash flows. It also discusses critical accounting policies including inventory valuation, accounts receivable, revenue recognition, goodwill and intangible asset impairments, and deferred tax assets and liabilities. The company acquired Dal-Tile in 2002 and Lees Carpet in 2003 to expand into ceramic tile and commercial carpet markets.
Mohawk Industries reported net earnings of $368.6 million for 2004, up 19% from 2003. This was driven by strong sales growth from both its Mohawk and Dal-Tile segments, improved manufacturing efficiencies, and the acquisition of Lees Carpet, though these gains were partially offset by higher raw material and energy costs. Net sales increased 17.6% to $5.88 billion in 2004, with both segments experiencing strong internal sales growth. Mohawk continues to implement price increases to offset its rising costs.
Hewlett-Packard reported financial results for the third quarter of fiscal year 2008. Net revenue was $28.03 billion, a 10% increase from the same quarter last year. Earnings from operations were $2.53 billion. After accounting for various adjustments including amortization expenses and restructuring charges, non-GAAP earnings from operations were $2.75 billion, a 20% increase over the prior year. For the nine months ended July 31, 2008, net revenue increased 11% to $84.76 billion, while non-GAAP earnings from operations grew 25% to $8.39 billion compared to the same period last year.
SanDisk reported a net loss of $207.99 million for the quarter, compared to a net income of $10.96 million in the prior year, due to lower revenues and gross profits. Revenues declined by $190.5 million to $659.47 million as product revenues fell by $135.95 million. Gross loss was $1.14 million compared to a gross profit of $258.78 million previously. Non-GAAP net loss was $108.46 million, which excludes items such as share-based compensation and amortization of intangible assets. Cash and cash equivalents increased to $1.09 billion from $962.06 million at the start of the quarter.
This document summarizes Tribune Company's financial results for the first quarter of 2002 compared to the first quarter of 2001. Some key points:
- Operating revenues decreased 5% to $1.23 billion due to declines in publishing advertising and classified revenues. Operating profit before restructuring charges fell 3% to $251.7 million.
- Restructuring charges of $27.3 million were recorded in the first quarter of 2002 related to cost reduction initiatives.
- Net loss was $101.6 million compared to a net income of $70.6 million in 2001, driven by non-operating losses on investments and the cumulative effect of a change in accounting principle.
- Publishing revenues fell 6
This document provides non-GAAP reconciliations for Alltel Corporation for 4 quarters in 2006 and the full year 2005. It reconciles revenue, costs and expenses, operating income and net income from what was reported under GAAP to what would be considered results from current businesses, excluding certain specified items for each period. The items excluded relate to things like amortization, integration expenses, gains or losses on sales of assets, and income from discontinued operations. The purpose is to show results on an ongoing, comparable basis across periods.
Lockheed Martin achieved a high level of mission success in 1998 but faced some setbacks. Sales increased modestly while earnings per share grew slightly after adjusting for non-recurring items. The company aims to improve performance in 1999 through management accountability and productivity increases in order to enhance shareholder value over the long run.
Revenues increased from $11.5 billion in 2006 to $12.8 billion in 2007 primarily due to higher electric utility revenues. Operating income increased from $2.6 billion to $2.8 billion between 2006 and 2007. Net income increased from $1.25 billion in 2006 to $1.31 billion in 2007, while basic earnings per share increased from $3.84 to $4.27 over the same period.
This document provides selected financial data for Mohawk Industries for the years 1999, 1998, 1997, 1996 and 1995 including statements of earnings data and balance sheet data. It shows that net sales increased each year from $2.04 billion in 1995 to $3.08 billion in 1999. Gross profit also increased each year, reaching $777 million in 1999. Total assets grew from $1.11 billion in 1995 to $1.68 billion in 1999.
This document summarizes selected financial data for Mohawk Industries from 1999 to 1995. It shows that net sales increased from $2.04 billion in 1995 to $3.08 billion in 1999, while net earnings increased from $11.8 million to $157.2 million over the same period. Total assets also increased substantially from $1.11 billion to $1.68 billion from 1995 to 1999. The document also provides notes on restructuring costs, asset write-downs, stock option expenses, and acquisition costs over the years.
This document provides non-GAAP reconciliations of Alltel Corporation's results of operations for various periods under GAAP and from current businesses. It excludes items like amortization of intangible assets from acquisitions, gains or losses from asset sales or disposals, integration expenses, adjustments to tax liabilities, and discontinued operations. Notes further explain the adjustments and excluded items, such as amortization, integration costs, gains or losses on sales of assets or securities, compensation from accelerated vesting of restricted stock, and the spin-off of Alltel's wireline business.
Tribune Company reported its fourth quarter and full year 2002 results. For the fourth quarter, revenues increased 8% year-over-year and net income increased 24%. Operating profit before restructuring charges increased 33% due to cost reductions. For the full year, revenues increased 2% and net income increased 43% due to restructuring initiatives and asset sales. Earnings per share increased 22% in the fourth quarter and 45% for the full year, reflecting continued improvement.
Capital Product Partners Fourth Quarter 2008 Earningsearningsreport
Capital Product Partners L.P. reported strong fourth quarter 2008 results with net income of $14.3 million and operating surplus of $17.4 million. They announced a non-recurring exceptional cash distribution of $1.05 per unit, returning profit sharing revenues earned in 2008. Despite a weak shipping market outlook, the company has long-term contracts with reputable counterparties and adequate financial reserves to weather uncertain market conditions.
Hutchison Whampoa reported a 12% rise in net profit to HK$14.17 billion in 2009, despite a 14% drop in revenue to HK$300.55 billion. Gains from property and asset sales offset losses in its energy and 3G businesses. While losses in 3G operations fell 67%, the division is still dragging on earnings. However, results from property completions and asset sales boosted profits.
1) The document is an audited revenue account for an insurance company for the year ending March 31, 2010. It shows revenues of over 99 billion rupees including over 54 billion in premiums earned and over 40 billion in investment income.
2) Expenses totaled over 18 billion rupees including over 5 billion in commissions and over 13 billion in operating expenses.
3) Benefits paid were over 11 billion rupees while changes in valuation of life insurance policies liabilities totaled over 78 billion rupees.
4) The surplus for the year was over 1.8 billion rupees with over 1.6 billion carried forward to funds for future appropriations.
- AMD reported net sales of $1.33 billion for Q1 2006, down 28% from $1.84 billion in Q4 2005. Gross margin increased to 58.5% from 46.4% driven by improved product mix.
- Operating income was $258.6 million in Q1 2006 compared to $205.7 million in Q4 2005, as gross margin gains offset lower sales. R&D and marketing expenses remained relatively flat quarter-over-quarter.
- Net income for Q1 2006 was $184.5 million versus $95.6 million in Q4 2005, benefiting from higher operating income and lower interest expenses.
- Tribune Company reported its second quarter and first half 2002 results, with operating revenues increasing 1% in the second quarter compared to the previous year.
- Operating profit before restructuring charges was up 16% in the second quarter and 7% in the first half compared to the previous year. However, net income declined due to losses from derivatives and investments.
- Earnings per share were lower than the previous year in the second quarter and first half due to restructuring charges, losses from investments, and a cumulative effect of a change in accounting principle related to impairments of intangible assets.
- Tribune Company reported its second quarter and first half 2001 results, with operating revenues increasing 2% and 29% respectively compared to the same periods in 2000.
- Operating profit declined 21% and 10% for the quarter and first half respectively due to a restructuring charge of $14.3 million.
- Net income increased 92% and 36% for the quarter and first half respectively due to non-operating gains, but income from continuing operations declined 41% and 25% due to the restructuring charge and higher interest expenses.
Delta provided reconciliations of several non-GAAP financial measures for the periods ended June 30, 2007 and 2006. Key items excluded from measures like operating income, earnings per share, and cost per available seat mile included reorganization expenses, bankruptcy-related professional fees, and the impact of fresh start accounting. Excluding these items provides a better view of Delta's recurring operational performance. Delta also presented adjusted metrics like free cash flow and length-adjusted passenger revenue to provide more meaningful comparisons to industry benchmarks.
The document provides a reconciliation of Alltel Corporation's results of operations under GAAP accounting standards versus results from current businesses on a non-GAAP basis for the six months and three months ended June 30, 2006. Key figures are provided for revenues, costs and expenses, operating income, earnings per share, and segment information from the company's wireless, wireline, and corporate operations. Certain items are excluded from the non-GAAP results of current businesses column, as described in notes to the reconciliation.
Smurfit-Stone reported a net loss of $19 million for Q1 2005, an improvement from a $66 million loss in Q1 2004. Net sales increased 8% to $2.1 billion. The company continued to face cost pressures from higher energy, fiber, and employee benefit costs which narrowed margins. However, demand was improving and costs were expected to moderate for the rest of the year, leading the company to expect a return to profitability in Q2 2005.
Smurfit-Stone Container Corporation reported second quarter 2005 net income of $1 million, an improvement from a $10 million net loss in the second quarter of 2004. Sales increased to $2.2 billion from $2 billion in the prior year period. For the first half of 2005, the company reported a net loss of $18 million, an improvement from a $76 million net loss in the first half of 2004, with sales of $4.2 billion compared to $4 billion in the prior year. The company expects third quarter results to be negatively impacted by unfavorable pricing trends but anticipates increased packaging demand in the seasonally strong period.
Smurfit-Stone Container Corporation reported a net loss of $229 million or $0.90 per share for Q3 2005, primarily due to a $293 million pretax restructuring charge related to mill closures in Canada and a paper machine closure. Net sales were $2.1 billion, down from $2.2 billion in Q3 2004. For the first nine months of 2005, the net loss was $247 million or $0.97 per share, compared to a net loss of $48 million or $0.19 per share for the same period in 2004. The company expects costs to increase in Q4 due to higher energy and freight expenses, while average corrugated prices are expected to
- Smurfit-Stone Container Corporation reported a net loss of $92 million for Q4 2005 and a net loss of $339 million for the full year 2005.
- Market conditions were unfavorable in the first half of 2005 with declining containerboard and corrugated prices but began to improve in Q4 2005. However, higher energy and fiber costs negatively impacted results.
- The company expects better comparisons going forward as market conditions improve but not meaningful sequential earnings growth in Q1 2006 due to seasonal factors and cost pressures.
- Smurfit-Stone Container Corporation reported a net loss of $64 million for Q1 2006 compared to a net loss of $19 million in Q1 2005.
- Net sales were $2.1 billion for Q1 2006, comparable to Q1 2005. However, higher costs such as energy and freight, as well as lower containerboard and corrugated prices, negatively impacted year-over-year results.
- The company expects results to improve in Q2 2006 but not reach breakeven, and anticipates returning to profitability in Q3 2006 as prices have rebounded and benefits from strategic initiatives continue.
Smurfit-Stone Container Corporation reported financial results for the second quarter of 2006. The company reported a net loss of $44 million compared to net income of $1 million in the second quarter of 2005. Sales were flat at $1.76 billion. For the first half of 2006 the company reported a net loss of $108 million compared to a net loss of $18 million in the first half of 2005, with sales of $3.5 billion, consistent with the previous year. The company's containerboard and corrugated containers segment saw improved operating profits compared to the previous quarter and previous year.
1) Smurfit-Stone Container Corporation reported a net income of $22 million or $0.09 per diluted share for Q4 2006, compared to a net loss of $0.36 per diluted share in Q4 2005.
2) For full year 2006, Smurfit-Stone reported a net loss of $71 million or $0.28 per diluted share, an improvement from a net loss of $339 million or $1.33 per diluted share in 2005.
3) The company exceeded its cost reduction target for 2006 from its strategic initiatives program, achieving $243 million in savings, and expects further meaningful earnings growth in 2007.
1) Smurfit-Stone Container Corporation reported a net loss of $55 million for the first quarter of 2007 compared to a net loss of $0.25 per share in the first quarter of 2006.
2) The company announced plans to close two containerboard mills with 200,000 tons of annual capacity and restart a previously idled paper machine with 170,000 tons of annual capacity to realign its mill system.
3) While costs increased due to higher wood and recycled fiber prices, the company expects improved second quarter results and a return to profitability due to moderating costs and stronger demand.
Smurfit-Stone Container Corporation reported financial results for the second quarter of 2007, with the following highlights:
1) Operating profits were up 59% from the previous quarter and 16% from the second quarter of 2006, driven by higher average prices across major product lines.
2) Sales increased 6% year-over-year to $1.87 billion for the second quarter.
3) The company expects higher mill production and continued price improvements to drive further financial gains in the third quarter.
Smurfit-Stone Container Corporation reported improved financial results in the third quarter of 2007 compared to the previous quarter:
- Adjusted net income nearly doubled from the second quarter, reaching $28 million.
- Strategic initiatives led to $18 million in quarterly benefits from cost reductions.
- Debt was reduced by $328 million through the sale of the Brewton, Alabama mill.
While earnings are expected to decrease in the fourth quarter due to seasonal factors, management expects ongoing benefits from strategic cost cutting initiatives and capital investments to drive continued margin improvements.
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Navigating Your Financial Future: Comprehensive Planning with Mike Baumannmikebaumannfinancial
Learn how financial planner Mike Baumann helps individuals and families articulate their financial aspirations and develop tailored plans. This presentation delves into budgeting, investment strategies, retirement planning, tax optimization, and the importance of ongoing plan adjustments.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Alexander Belyaev
Calculation of compliance cost in the fishing industry of Russia after extended SCM model (Veterinary and sanitary control of aquatic biological resources (ABR) - Preparation of documents, passing expertise)
1. Table of Contents
18 Selected Financial Data
20 Management’s Discussion and Analysis of
Financial Condition and Results of Operations
30 Consolidated Statements of Earnings
31 Consolidated Balance Sheets
32 Consolidated Statements of Stockholders’
Equity and Comprehensive Income
33 Consolidated Statements of Cash Flows
34 Notes to Consolidated Financial Statements
47 Independent Auditors’ Report
47 Management’s Report
48 Stockholder Information
2. Selected Financial Data
In thousands, except per share data
2002(h)
At or for the Years ended December 31,
S TAT E M E N T O F E A R N I N G S D ATA :
Net sales $ 4,522,336
Cost of sales 3,285,222
Gross profit 1,237,114
Selling, general and administrative expenses 718,002
Restructuring costs (a) -
Carrying value reduction of property, plant and equipment and other assets (b) -
Class action legal settlement (c) -
Compensation expense for stock option exercises (d) -
Operating income 519,112
Interest expense (e) 68,972
Acquisition costs – World Merger (f) -
Other expense, net 6,511
75,483
Earnings before income taxes 443,629
Income taxes 159,140
Net earnings $ 284,489
Basic earnings per share (g) $ 4.46
Weighted-average common shares outstanding (g) 63,723
Diluted earnings per share (g) $ 4.39
Weighted-average common and dilutive potential common shares outstanding (g) 64,861
B A L A N C E S H E E T D ATA :
Working capital $ 681,869
Total assets 3,596,743
Short-term note payable -
Long-term debt (including current portion) 820,427
Stockholders’ equity 1,982,879
(a) During 1996, the Company recorded pre-tax restructuring Company recorded a charge of $5.5 million arising from a
costs of $0.7 million related to certain mill closings whose revision in the estimated fair value of certain property, plant
operations have been consolidated into other Mohawk and equipment held for sale based on current appraisals and
facilities. other market information related to a mill closing in 1995.
During 1998, the Company recorded a charge of $2.9 million
(b) During 1996, the Company recorded a charge of $3.1 million
for the write-down of assets to be disposed of relating to
arising from the write-down of property, plant and equipment
the acquisition of World.
to be disposed of related to the closing of a manufacturing
facility in 1996 and a revision in the estimate of fair value of (c) The Company recorded a one-time charge of $7.0 million in
certain property, plant and equipment based on current market 2000, reflecting the settlement of two class-action lawsuits.
conditions related to mill closings in 1995. During 1997, the
Mohawk Industries, Inc. and Subsidiaries 18
3. Selected Financial Data
2001 2000 1999 1998 1997 1996
3,445,945 3,404,034 3,211,575 2,848,810 2,521,297 2,324,486
2,613,043 2,581,185 2,434,716 2,167,523 1,961,433 1,811,780
832,902 822,849 776,859 681,287 559,864 512,706
505,745 505,734 482,062 432,191 383,523 367,251
- - - - - 700
- - - 2,900 5,500 3,060
- 7,000 - - - -
- - - - 2,600 -
327,157 310,115 294,797 246,196 168,241 141,695
29,787 38,044 32,632 31,023 36,474 39,772
- - - 17,700 - -
5,954 4,442 2,266 2,667 338 4,586
35,741 42,486 34,898 51,390 36,812 44,358
291,416 267,629 259,899 194,806 131,429 97,337
102,824 105,030 102,660 79,552 51,866 40,395
188,592 162,599 157,239 115,254 79,563 56,942
3.60 3.02 2.63 1.91 1.33 0.96
52,418 53,769 59,730 60,393 59,962 59,310
3.55 3.00 2.61 1.89 1.32 0.95
53,141 54,255 60,349 61,134 60,453 59,899
449,361 427,192 560,057 438,474 389,378 390,889
1,768,485 1,795,378 1,682,873 1,405,486 1,233,361 1,226,959
- - - - - 21,200
308,433 589,828 596,065 377,089 402,854 486,952
948,551 754,360 692,546 611,059 493,841 409,616
(d) A charge of $2.6 million was recorded in 1997 for income tax (g) The Board of Directors declared a 3-for-2 stock split on October 23,
reimbursements to be made to certain executives related 1997, which was paid on December 4, 1997, to holders of record
to the exercise of stock options granted in 1988 and 1989 on November 4, 1997. Earnings per share and weighted-average
in connection with the Company’s 1988 leveraged buyout. common share data have been restated to reflect the split.
(e) In December 2002, the Company discontinued hedge (h) In 2002, the Company adopted the provisions of Financial
accounting for its interest rate swap. The impact of Accounting Standards Board SFAS No. 142 “Goodwill and Other
discontinuing the hedge was to increase interest expense Intangible Assets,” which required the Company to cease
by approximately $10.7 million. amortizing goodwill and evaluate such goodwill and indefinite
life intangibles for impairment.
(f) The Company recorded a one-time charge of $17.7 million in
1998 for transaction expenses related to the World merger.
19 Mohawk Industries, Inc. and Subsidiaries
4. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
General The primary categories of the floorcovering
industry include carpet and rugs (65%), ceramic tile
During the three-year period ended December 31,
(10%), vinyl and rubber (12%), hardwood (9%) and
2002, the Company continued to experience
laminate (4%). Compound average growth rates
growth both internally and through acquisitions.
in units sold (measured in square yards) for all
On November 14, 2000, the Company acquired
categories except the vinyl and rubber category, for
certain assets of Crown Crafts, Inc. (“Crown
the period from 1992 through 2001, have exceeded
Crafts”). Under the agreement, the Company paid
the growth rate for both the gross domestic product
approximately $37 million in cash for substantially
of the United States and housing starts over the
all of the fixed assets and inventory of the division.
same period. During this period, the compound
The acquisition was accounted for using the
average growth rate was 4.5% for carpet and rugs,
purchase method of accounting.
9.6% for ceramic tile, 3.1% for vinyl and rubber and
On March 20, 2002, the Company acquired all
8.1% for hardwood. Laminate, which is a relatively
of the outstanding capital stock of Dal-Tile
new product, experienced a compound average
International Inc. (“Dal-Tile”), a leading manufacturer
growth rate of 33.6% from 1996 through 2001.
and distributor of ceramic tile in the United States,
Although beginning from a smaller base, the growth
for approximately $1,469 million, consisting of
rates for hard floorcoverings may indicate increasing
approximately 12.9 million shares of the Company’s
consumer preference for these products for certain
common stock, options to purchase approximately 2.1
applications. In response to this increasing demand,
million shares of the Company’s common stock and
the Company has increased its distribution of hard
$718 million in cash. The Company’s common stock
surface products, including ceramic tile, vinyl,
and options were valued at $751 million based on the
hardwood and laminate. The acquisition of Dal-Tile
measurement date stock price of $55.04 per share
provides a unique opportunity to help the Company
($710.4 million) and the estimated fair value of options
achieve its strategic goal of becoming one of the
using the Black-Scholes option-pricing model ($40.3
world’s leading floorcovering manufacturers and
million). The transaction was accounted for using the
distributors.
purchase method of accounting and, accordingly, the
As a result of the Dal-Tile acquisition, the
results of operations of Dal-Tile have been included in
Company has determined that it has two operating
the Company’s consolidated financial statements from
segments, the Mohawk segment and the Dal-Tile
March 20, 2002. The purchase price was allocated to
segment. The Mohawk segment is comprised of
the assets acquired and liabilities assumed based upon
all the product lines and operations that were the
estimated fair values at the date of acquisition. The
Company’s prior to the Dal-Tile acquisition. The
excess of the purchase price over the fair value of the
Dal-Tile segment is comprised of the Dal-Tile product
net identifiable assets acquired of approximately
lines and operations.
$1,168.3 million was recorded as goodwill. The primary
reasons for the acquisition included:
Critical Accounting Policies
• the ability to combine Mohawk’s current efforts
in the hard-flooring business with Dal-Tile’s The Company’s discussion and analysis of financial
larger, more established ceramic tile and natural condition and results of operations are based on
stone business; its consolidated financial statements that were
• the opportunity to use Mohawk and Dal-Tile’s prepared in accordance with accounting principles
existing distribution channels to increase sales generally accepted in the United States of America.
of both carpets and hard floorcoverings; The Company makes estimates and assumptions
• the potential to improve service and reduce when preparing financial statements. These
costs by adding Dal-Tile’s distribution network estimates and assumptions affect various matters,
to Mohawk’s logistical and distribution system; including:
• the potential to reduce manufacturing costs and • reported amounts of assets and liabilities in
increase quality by identifying manufacturing the Company’s Consolidated Balance Sheets at
best practices; and the dates of the financial statements,
• the potential to reduce general, administrative, • disclosure of contingent assets and liabilities
overhead and other miscellaneous costs by at the dates of the financial statements, and
spreading fixed costs over a larger business. • reported amounts of expenses in the Company’s
Effective November 1, 2000, the Company entered Consolidated Statements of Earnings during
into an agreement with Congoleum Corporation, the reporting periods. These estimates involve
Inc., to become a national distributor of their vinyl judgments with respect to, among other things,
products. This agreement was the final step which future economic factors that are difficult to
gave the Company access to a complete line of soft predict and are beyond management’s control.
and hard floor covering products to supply to As a result, actual amounts could differ from
customers throughout the United States. these estimates.
Mohawk Industries, Inc. and Subsidiaries 20
5. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The Securities and Exchange Commission • Deferred tax assets and liabilities are recognized
(“SEC”) issued disclosure guidance for accounting for the future tax consequences attributable to
policies that management believes are most differences between the financial statement
“critical.” The SEC defines these critical accounting carrying amounts of existing assets and liabilities
policies as those that are both most important to and their respective tax bases. Deferred tax assets
the portrayal of a company’s financial condition and liabilities are measured using enacted tax rates
and results and require management’s most expected to apply to taxable income in the years
difficult, subjective, or complex judgment, often as in which the temporary differences are expected
a result of the need to make estimates about the to be recovered or settled. The effect on deferred
effect of matters that are inherently uncertain and tax assets and liabilities of a change in the tax rates
may change in subsequent periods. is recognized in earnings in the period that includes
The Company believes the following accounting the enactment date. Additionally, taxing juris-
policies require it to use more significant judgments dictions could retroactively disagree with the
and estimates in preparing its consolidated financial Company’s tax treatment of certain items, and
statements and could represent critical accounting some historical transactions have income tax effects
policies as defined by the SEC. The Company discusses going forward. Accounting rules require these
its significant accounting policies, including those that future effects to be evaluated using current laws,
do not require management to make difficult, rules and regulations, each of which can change
subjective, or complex judgments or estimates, in at any time and in an unpredictable manner.
Note 1 to the Consolidated Financial Statements:
• Accounts receivable and revenue recognition. Results of Operations
Revenues are recognized when goods are shipped,
Year Ended December 31, 2002, as Compared with
which is when legal title passes to the customer.
Year Ended December 31, 2001
The Company provides allowances for expected
cash discounts, returns, claims and doubtful Net sales for the year ended December 31, 2002, were
accounts based upon historical bad debt and $4,522.3 million, reflecting an increase of $1,076.4
claims experience and periodic evaluation of million, or approximately 31.2%, over the $3,445.9
the aging of accounts receivable. If the financial million reported in the year ended December 31,
condition of the Company’s customers were to 2001. The increased net sales were attributable to
deteriorate, resulting in an impairment of their the Dal-Tile acquisition and internal growth of the
ability to make payments, additional allowances Mohawk segment product lines. The Mohawk
may be required. segment recorded net sales of $3,624.2 million in 2002
• Inventories are stated at the lower of cost or compared to $3,445.9 million in 2001, representing an
market (net realizable value). Cost is determined increase of $178.2 million or approximately 5.2%. The
using the last-in, first-out method (LIFO) growth was attributable to all segment product lines.
predominantly within the Mohawk segment, Since the completion of the Dal-Tile acquisition, the
which matches current costs with current Dal-Tile segment recorded net sales of $898.2 million
revenues, and the first-in, first-out method (FIFO), in 2002. A comparison of net sales for the Dal-Tile
which is used to value inventory within the segment for 2002 and 2001, in each case including
Dal-Tile segment. Inventories on hand are Dal-Tile’s net sales (after reclassifications to conform
compared against anticipated future usage, which to Mohawk’s presentation) prior to the acquisition,
is a function of historical usage, in order to shows an increase of $97.4 million, or approximately
evaluate obsolescence and excessive quantities. 9.4%, from $1,036.8 million to $1,134.2 million.
Actual results could differ from assumptions used Quarterly net sales and the percentage changes
to value obsolete or excessive inventory and in net sales by quarter for 2002 versus 2001 were as
additional reserves may be required. follows (dollars in thousands):
• Goodwill and intangible assets are subject to
annual impairment testing. The impairment 2002 2001 Change
tests are based on determining the fair value First quarter $ 866,710 777,339 11.5%
of the specified reporting units based on Second quarter 1,227,747 864,958 41.9
management judgements and assumptions
Third quarter 1,224,403 907,850 34.9
using estimated cash flows. These judgments
Fourth quarter 1,203,476 895,798 34.3
and assumptions could materially change the
Total year $ 4,522,336 3,445,945 31.2%
value of the specified reporting units and,
therefore, could materially impact the Company’s
consolidated financial statements.
21 Mohawk Industries, Inc. and Subsidiaries
6. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Gross profit was $1,237.1 million (27.4% of net Year Ended December 31, 2001, as Compared with
sales) for 2002 and $832.9 million (24.2% of net sales) Year Ended December 31, 2000
for 2001. Gross profit as a percentage of net sales in Net sales for the year ended December 31, 2001, were
2002 was favorably impacted when compared to $3,445.9 million, reflecting an increase of $41.9 million,
2001 by Dal-Tile’s higher gross profit percentage or approximately 1.2%, over the $3,404.0 million
and improved manufacturing efficiencies within reported in the year ended December 31, 2000. The
the Mohawk segment. Company believes that the 2001 net sales increase
Selling, general and administrative expenses for was attributable primarily to internal growth in
2002 were $718.0 million (15.9% of net sales) compared carpet, rugs, padding and hard surface products.
to $505.7 million (14.7% of net sales) for 2001. The Quarterly net sales and the percentage changes
increased percentage was attributable to the Dal-Tile in net sales by quarter for 2001 versus 2000 were as
segment which has higher selling, general and follows (dollars in thousands):
administrative expenses, but also has higher gross
profit as a percentage of net sales. The Mohawk and 2001 2000 Change
Dal-Tile (including selling, general and administrative
First quarter $ 777,339 799,403 -2.8%
costs prior to the acquisition of Dal-Tile) segments
Second quarter 864,958 890,980 -2.9
selling, general and administrative expenses reflected
Third quarter 907,850 875,765 3.7
improvements over 2001, when compared to 2002.
Fourth quarter
The improvements were due to better control of 895,798 837,886 6.9
Total year
operating costs as net sales increased. $ 3,445,945 3,404,034 1.2%
Operating income for 2002 was $519.1 million
(11.5% of net sales) compared to $327.2 million (9.5% Gross profit was $832.9 million (24.2% of net
of net sales) in 2001. Operating income attributable sales) for 2001 and $822.8 million (24.2% of net
to the Mohawk segment was $388.4 million (10.7% sales) for 2000. Favorable material and fuel costs
of segment net sales) in 2002 compared to $336.7 and an improved product mix impacted gross profit
million (9.8% of segment net sales) in 2001. dollars for 2001.
Operating income attributable to the Dal-Tile Selling, general and administrative expenses for
segment was $139.9 million (15.6% of segment net 2001 were $505.7 million (14.7% of net sales) compared
sales) in 2002. A comparison of operating income to $505.7 million (14.9% of net sales) for 2000.
for the Dal-Tile segment’s 2002 and 2001, in Interest expense for 2001 was $29.8 million
each case including Dal-Tile’s operating income compared to $38.0 million in 2000. The primary
(after reclassifications to conform to Mohawk’s factors contributing to the decrease were lower debt
presentation) prior to the acquisition, shows an levels compared to 2000.
increase of $17.1 million, or approximately 11.1%, Income tax expense for 2001 was $102.8 million
from $154.6 million (14.9% of segment net sales) or 35.3% of earnings before income taxes. In 2000,
to $171.7 million (15.1% of segment net sales). income tax expense was $105.0 million, representing
Interest expense for 2002 was $69.0 million 39.2% of earnings before income taxes. The reduction
compared to $29.8 million in 2001. The increase in in the effective income tax rate was primarily due to
interest expense was attributable to additional debt tax credits and other tax strategies.
incurred in March 2002 to finance the acquisition
of Dal-Tile, the write-off of approximately $10.7 million Liquidity and Capital Resources
relating to an interest rate swap previously accounted
The Company’s primary capital requirements are for
for as a cash flow hedge and an increase in the average
working capital, capital expenditures and acquisitions.
borrowing rate due to a change in the mix of fixed
The Company’s capital needs are met primarily
rate and variable rate debt, when compared to 2001.
through a combination of internally generated funds,
Income tax expense was $159.1 million, or 35.9%
bank credit lines, term and senior notes, the sale of
of earnings before income taxes for 2002 compared
receivables and credit terms from suppliers.
to $102.8 million, or 35.3% of earnings before
The level of accounts receivable increased from
income taxes for 2001.
$404.9 million at the beginning of 2002 to $501.1
million at December 31, 2002. The $96.2 million
increase was primarily attributable to the acquisition
of Dal-Tile. Inventories increased from $531.4 million at
the beginning of 2002 to $678.0 million at December
31, 2002, due primarily to the Dal-Tile acquisition.
Mohawk Industries, Inc. and Subsidiaries 22
7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The outstanding checks in excess of cash asset-backed commercial paper conduits. These
represent trade payables checks that have not yet facilities enable the Company to borrow up to $205
cleared the bank. When the checks clear the bank, million through the Mohawk segment and up to
they are funded by the revolving credit facility. This $75 million through its Dal-Tile segment. Each
policy does not impact any liquid assets on the securitization is secured by the respective segment
consolidated balance sheets. trade receivables and is subject to annual renewal.
Excluding the acquisition of Dal-Tile, capital At December 31, 2002, the Company had no amounts
expenditures totaled $111.9 million during 2002. outstanding under either securitization facility, both
The capital expenditures made during 2002 were of which were available up to their respective facility
incurred primarily to modernize and expand limits. At December 31, 2001, the Mohawk segment
manufacturing facilities and equipment. The had $125 million outstanding secured by
Company’s capital projects are primarily focused on approximately $461.1 million of receivables.
increasing capacity, improving productivity and The Company’s debt structure also includes a
reducing costs. Capital expenditures, including $754.5 combination of variable rate industrial revenue bonds
million for acquisitions, have totaled $992.8 million and fixed rate term notes and senior notes with
over the past three years. The Company’s capital interest rates ranging from 1.28% up to 8.46%. The
spending during 2003, excluding acquisitions, is industrial revenue bonds mature beginning in 2006
expected to range from $120 million to $140 million, through 2019 and the term and senior notes mature
and will be used primarily to purchase equipment through 2012. The industrial revenue bonds are backed
to increase production capacity and productivity. by unsecured letters of credit. The term and senior
The Company’s revolving line of credit agreement notes are also unsecured. The aggregate principal
provides for an interest rate of either (i) LIBOR plus amount of industrial revenue bonds, term and senior
0.2% to 0.5%, depending upon the Company’s notes was $815.2 million at December 31, 2002.
performance measured against certain financial ratios, On January 3, 2001, the Company entered into a
or (ii) the prime rate less 1.0% and has a termination five-year interest rate swap, which converted a notional
date of January 28, 2004. At December 31, 2002, the amount of approximately $100 million of its variable
Company had credit facilities of $450 million under its rate debt to a fixed rate. Under the agreement,
revolving credit line and $55 million under various payments are made based on a fixed rate of 5.82% and
short-term uncommitted credit lines. At December 31, received on a LIBOR based variable rate. Differentials
2002, a total of $462.5 million was unused under these received or paid under the agreement will be
lines. All of these lines are unsecured. The credit recognized as interest expense. During December
agreement contains customary financial and other 2002, the Company determined, based on future cash
covenants. The Company must pay an annual facility flow projections, that the cash flow hedge would more
fee ranging from .0015 to .0025 of the total credit than likely become ineffective as strong cash flow
commitment, depending upon the Company’s has allowed the Company to significantly reduce its
performance measured against specific coverage outstanding LIBOR based variable rate debt below the
ratios, under the revolving credit line. $100 million hedged notional amount. The unrealized
In connection with the Dal-Tile acquisition, the loss on the interest rate swap previously included in
Company entered into a 364-day term loan facility (the other comprehensive income has been recorded as a
“Bridge Facility”) on March 20, 2002, to finance a realized loss in interest expense in the fourth quarter
portion of the acquisition. On April 2, 2002, the of 2002. The amount recorded in interest expense was
Company sold $300 million of its 6.50% senior notes $10.7 million. The Company continues to carry the
due 2007, Series A and $400 million of its 7.20% senior liability on its consolidated balance sheet at its fair
notes due 2012, Series B through institutional private value and the interest rate swap will be marked to
placements and used the proceeds to repay market in future reporting periods with any changes
outstanding indebtedness of approximately $601 being recorded in interest expense.
million under the Bridge Facility and approximately The Company’s Board of Directors has authorized
$0.9 million under the Company’s revolving credit the repurchase of up to 15 million shares of its
facility. On June 13, 2002, the Company exchanged outstanding common stock. For the year ended
approximately $295 million of its registered 6.50% December 31, 2002, a total of approximately 1.4 million
notes due 2007, Series C for an equal amount of its shares of the Company’s common stock were
Series A senior notes and approximately $397.8 purchased at an aggregate cost of approximately
million of its registered 7.20% senior notes due 2012, $64.0 million. Since the inception of the program, a
Series D for an equal amount of its Series B senior total of approximately 10.4 million shares have been
notes. Interest on each series is payable semiannually. repurchased at an aggregate cost of approximately
The Company has two trade accounts receivable $265.3 million. All of these repurchases have been
securitization agreements with bank agents for financed through the Company’s operations and
banking arrangements.
23 Mohawk Industries, Inc. and Subsidiaries
8. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The following is a summary of the Company’s future minimum payments under contractual obligations
as of December 31, 2002 (in thousands):
Payments due by period
2003 2004 2005 2006 2007 Thereafter Total
Long-term debt $ 26,663 29,380 9,448 6,500 300,000 447,672 819,663
Capital leases 764 - - - - – 764
Operating leases 60,936 49,346 37,248 27,754 16,944 26,235 218,463
Purchase commitments (1) 50,040 10,712 3,628 - - – 64,380
$ 138,403 89,438 50,324 34,254 316,944 473,907 1,103,270
(1) Includes commitments for natural gas and foreign currency purchases.
In November 2002, the Financial Accounting
Recent Accounting Pronouncements
Standards Board issued SFAS No. 146 “Accounting for
In June 2001, the Financial Accounting Standards
the Costs Associated with Exit or Disposal Activities,”
Board issued SFAS No. 143, “Accounting for Asset
(“SFAS No. 146”). SFAS No. 146 is effective for exit or
Retirement Obligations” (“SFAS No. 143”). SFAS No. 143
disposal activities initiated after December 31, 2002,
provides new guidance on the recognition and
and requires recording costs associated with exit or
measurement of an asset retirement obligation and
disposal activities at their fair values when a liability
its associated asset retirement cost. It also provides
has been incurred. Effective January 1, 2003, the
accounting guidance for legal obligations associated
Company adopted SFAS No. 146 and it is not
with the retirement of tangible long-lived assets.
expected to materially impact the Company’s
The Company adopted SFAS No. 143 on January 1,
consolidated financial statements.
2003 and it is not expected to materially impact
In November 2002, the Financial Accounting
the Company’s consolidated financial statements.
Standards Board issued Interpretation No. 45,
In April 2002, the Financial Accounting Standards
“Guarantor’s Accounting and Disclosure Requirements
Board issued SFAS No. 145, “Rescission of FASB
for Guarantees, Including Indirect Guarantees of
Statements No. 4, 44 and 64, Amendment of FASB
Indebtedness of Others” (“Fin 45”). Fin 45 requires that
Statement No. 13, and Technical Corrections.” The
the guarantor recognize, at the inception of certain
Statement rescinds SFAS No. 4, “Reporting Gains
guarantees, a liability for the fair value of the obligation
and Losses from Extinguishment of Debt,” and an
undertaken in issuing such guarantee. Fin 45 also
amendment of that Statement, SFAS No. 64,
requires additional disclosure about the guarantor’s
“Extinguishments of Debt Made to Satisfy Sinking-
obligations under certain guarantees that it has issued.
Fund Requirements.” SFAS No. 145 recognizes that the
The initial recognition and measurement provisions of
use of debt extinguishment can be a part of the risk
this interpretation are applicable on a prospective basis
management strategy of a company and hence, the
to guarantees issued or modified after December 31,
classification of all early extinguishment of debt as
2002, and the disclosure requirements are effective
an extraordinary item may no longer be appropriate.
after December 15, 2002, and are included in footnote
In addition, the Statement amends SFAS No. 13,
10 to the consolidated financial statements.
“Accounting for Leases,” to eliminate an inconsistency
In December 2002, the Financial Accounting
between the required accounting for sale-leaseback
Standards Board issued SFAS No. 148, “Accounting for
transactions and the required accounting for certain
Stock-Based Compensation-Transition and Disclosure
lease modifications that have economic effects that
an amendment of FASB Statement No. 123” (“SFAS No.
are similar to sale-leaseback transactions. Provisions
148”). This statement amends SFAS No. 123 to provide
of this Statement, as they relate to Statement No. 13,
alternative methods of transition for a voluntary
are to be effective for transactions occurring after
change to the fair value based method of accounting
May 15, 2002. Provisions, which relate to Statement
for stock-based employee compensation and amends
No. 4, are effective for fiscal years beginning after
the disclosure requirements of SFAS 123 to require
May 15, 2002. The Company adopted SFAS No. 145
prominent disclosures in both annual and interim
on January 1, 2003, and it is not expected to
financial statements about the method of
materially impact the Company’s consolidated
financial statements.
Mohawk Industries, Inc. and Subsidiaries 24
9. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
accounting for stock-based employee compensation The failure to integrate Mohawk and Dal-Tile
and the effect of the method used on reported successfully by managing the challenges of that
results. The transition and annual disclosure integration may result in the Company not achieving
provisions of SFAS No. 148 are effective for fiscal years the anticipated potential benefits of the merger.
ending after December 15, 2002. Effective January 1,
The Company faces challenges in consolidating
2003, the Company adopted the disclosure
functions, integrating its organizations, procedures,
requirements of SFAS No. 148 regarding disclosure
operations and product lines in a timely and efficient
requirements for condensed consolidated financial
manner and retaining key personnel.
statements for interim periods. The Company has
These challenges will result principally because
not determined whether it will voluntarily change
the two companies currently:
to the fair value based method of accounting for
• maintain executive offices in different locations;
stock-based employee compensation.
• manufacture and sell different types of products
In January 2003, the Financial Accounting Standards
through different distribution channels;
Board issued Interpretation No. 46, “Consolidation
• conduct their businesses from various
of Variable Interest Entities and Interpretation of ARB
locations; and
No. 51” (“Fin 46”). Fin 46 establishes the criteria for
• have different employment and compensation
consolidating variable interest entities. The Company
arrangements for their employees.
is evaluating Fin 46, which is effective for fiscal years
In addition, Dal-Tile has a significant manufacturing
or interim periods beginning after June 15, 2003, to
operation in Mexico, and the Company has not
variable entities that were acquired before February 1,
previously operated a manufacturing facility outside
2003. The Company does not expect Fin 46 to
of the United States. As a result, the integration
materially impact the Company’s consolidated
will be complex and will require additional attention
financial statements.
from members of management. The diversion
of management attention and any difficulties
Impact of Inflation
encountered in the transition and integration process
could have a material adverse effect on the Company’s
Inflation affects the Company’s manufacturing costs
revenues, level of expenses and operating results.
and operating expenses. The carpet and tile industry
has experienced inflation in the prices of raw materials
and fuel-related costs. In the past, the Company has The floorcovering industry is cyclical and prolonged
generally passed along these price increases to its declines in residential or commercial construction
customers and has been able to enhance productivity activity could have a material adverse effect on the
to offset increases in costs resulting from inflation in
Company’s business.
both the United States and Mexico.
The U.S. floorcovering industry is highly dependent
on residential and commercial construction activity,
Seasonality
including new construction as well as remodeling.
The Company is a calendar year-end company and New construction activity and remodeling, to a
its results of operations for the first quarter tend lesser degree, are cyclical in nature and a prolonged
to be the weakest. The second, third and fourth decline in residential or commercial construction
quarters typically produce higher net sales and activity could have a material adverse effect on the
operating income. These results are primarily due Company’s business, financial condition and results
to consumer residential spending patterns for of operations. Construction activity is significantly
floorcovering, which historically have decreased affected by numerous factors, all of which are
during the first two months of each year following beyond the Company’s control, including:
the holiday season. • national and local economic conditions;
• interest rates;
Certain factors affecting the Company’s performance • housing demand;
• employment levels;
In addition to the other information provided in this
• changes in disposable income;
Annual Report, the following risk factors should be
• financing availability;
considered when evaluating an investment in shares
• commercial rental vacancy rates;
of Mohawk common stock. If any of the events
• business expenditures;
described in these risks were to occur, it could have
• federal and state income tax policies; and
a material adverse effect on the Company’s business,
• consumer confidence.
financial condition and results of operations.
The U.S. construction industry has experienced
25 Mohawk Industries, Inc. and Subsidiaries
10. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
significant downturns in the past, which have The Company may be unable to obtain raw
adversely affected suppliers to the industry, including materials on a timely basis, which could have
suppliers of floorcoverings. The industry could a material adverse effect on its business.
experience similar downturns in the future, which The Company’s business is dependent upon a
could have a negative impact on the Company’s continuous supply of raw materials from third party
business, financial condition and results of operations. suppliers. The principal raw materials used in its
manufacturing operations include: nylon fiber and
The Company faces intense competition in its industry, polypropylene resin, which are used exclusively in its
which could decrease demand for its products and carpet and rug business; talc, clay, impure nepheline
could have a material adverse effect on its profitability. syenite, pure nepheline syenite and various glazes,
including frit (ground glass), zircon and stains, which
The industry is highly competitive. The Company faces
are used exclusively in its ceramic tile business; and
competition from a large number of domestic and
other materials. The Company has a single source
foreign manufacturers and independent distributors
supplier for all of its impure nepheline syenite and
of floorcovering products. Some of its existing and
pure nepheline syenite requirements. An extended
potential competitors may be larger and have
interruption in the supply of these or other raw
greater resources and access to capital than it does.
materials used in the Company’s business or in the
Maintaining the Company’s competitive position
supply of suitable substitute materials would disrupt
may require it to make substantial investments in its
the Company’s operations, which could have a material
product development efforts, manufacturing facilities,
adverse effect on its business, financial condition and
distribution network and sales and marketing
results of operations.
activities. Competitive pressures may also result in
decreased demand for its products and in the loss of
market share. In addition, the Company faces, and will
continue to face, pressure on sales prices of its products
from competitors, as well as from large customers. As a
result of any of these factors, there could be a material
adverse effect on the Company’s sales and profitability.
A failure to identify suitable acquisition candidates,
$111.9
to complete acquisitions and to integrate
$101.9
successfully the acquired operations could have a
material adverse effect on the Company’s business.
As part of its business strategy, the Company intends $84.2
to pursue acquisitions of complementary businesses.
$82.3
Although it regularly evaluates acquisition $73.5
opportunities, it may not be able to:
• successfully identify suitable acquisition candidates; $52.9
• obtain sufficient financing on acceptable terms
to fund acquisitions;
• complete acquisitions; or
• profitably manage acquired businesses.
Acquired operations may not achieve levels of sales,
operating income or productivity comparable to
those of its existing operations, or otherwise perform
as expected. Acquisitions may also involve a number
$00.0
$00.0
of special risks, some or all of which could have
a material and adverse effect on the Company’s 00 01 02 00 01 02
business, results of operations and financial
condition, including, among others: Capital Expenditures Depreciation and
• the Company’s inability to integrate operations,
(In millions) Amortization
systems and procedures and to eliminate
(In millions)
redundancies and excess costs effectively;
• diversion of management’s attention and
resources; and
• difficulty retaining and training acquired
key personnel.
Mohawk Industries, Inc. and Subsidiaries 26
11. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The Company may be unable to pass on to its The discovery of presently unknown environmental
conditions, changes in environmental, health, and
customers increases in the costs of raw materials
safety laws and regulations, enforcement of existing
and energy, which could have a material adverse
or new requirements or other unanticipated events
effect on its profitability.
could give rise to expenditures and liabilities,
Significant increases in the costs of raw materials
including fines or penalties, that could have a
and natural gas used in the manufacture of the
material adverse effect on the Company’s business,
Company’s products could have a material adverse
operating results or financial condition.
effect on its operating margins and its business,
financial condition and results of operations. The
Changes in international trade laws and in the
Company purchases nylon fiber, polypropylene resin,
business, political and regulatory environment in
talc, clay, impure nepheline syenite, pure nepheline
Mexico could have a material adverse effect on the
syenite, frit, zircon, stains and other materials from
Company’s business.
third party suppliers. The cost of some of these
materials, like nylon and polypropylene resin, is related The Company’s Monterrey, Mexico manufacturing
to oil prices. The Company also purchases significant facility represents a significant portion of the
amounts of natural gas to supply the energy required Company’s total manufacturing capacity for ceramic
in some of its production processes. The prices of tile. Accordingly, an event that has a material adverse
these raw materials and of natural gas vary with impact on the Company’s Mexican operations could
market conditions. Although the Company generally have a material adverse effect on the tile operations
attempts to pass on increases in the costs of raw as a whole. The business, regulatory and political
materials and natural gas to its customers, the environments in Mexico differ from those in the
Company’s ability to do so is, to a large extent, United States, and the Company’s Mexican
dependent upon the rate and magnitude of any operations are exposed to a number of inherent
increase, competitive pressures and market conditions risks, including:
for its products. There have been in the past, and • changes in international trade laws, such as the
may be in the future, periods of time during which North American Free Trade Agreement, or NAFTA,
increases in these costs cannot be recovered. During affecting the Company’s import and export
such periods of time, there could be a material activities in Mexico;
adverse effect on the Company’s profitability. • changes in Mexican labor laws and regulations
affecting the Company’s ability to hire and retain
The Company has been, and in the future may employees in Mexico;
• currency exchange restrictions and fluctuations
be subject to claims and liabilities under
in the value of foreign currency;
environmental, health and safety laws and
• potentially adverse tax consequences;
regulations, which could be significant.
• local laws concerning repatriation of profits;
The Company’s operations are subject to various
• political conditions in Mexico;
federal, state, local and foreign environmental, health
• unexpected changes in the regulatory
and safety laws and regulations, including those
environment in Mexico; and
governing air emissions, wastewater discharges, and
• changes in general economic conditions in Mexico.
the use, storage, treatment and disposal of hazardous
materials. The applicable requirements under these
The Company could face increased competition as a
laws are subject to amendment, to the imposition of
result of the General Agreement on Tariffs and Trade
new or additional requirements and to changing
and the North American Free Trade Agreement.
interpretations of agencies or courts. New or
additional requirements could be imposed, and the The United States is party to the General Agreement
Company could incur material expenditures to on Tariffs and Trade (“GATT”). Under GATT, the United
comply with new or existing regulations. States currently imposes import duties on ceramic
The nature of the Company’s operations and tile imported from countries outside North America
previous operations by others at real property at no more than 12%, to be reduced ratably to no
currently or formerly owned or operated by the less than 8.5% by 2004. Accordingly, as these duties
Company and the disposal of waste at third party decrease, GATT may stimulate competition from
sites exposes the Company to the risk of claims manufacturers in these countries, which now export,
under environmental, health and safety laws and or may seek to export, ceramic tile to the United
regulations. The Company could incur material costs States. The Company is uncertain what effect GATT
or liabilities in connection with such claims. The may have on its operations.
Company has been, and will continue to be, subject
to these claims.
27 Mohawk Industries, Inc. and Subsidiaries
12. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
The North American Free Trade Agreement diverting Mohawk management’s attention and
(“NAFTA”) was entered into by Canada, Mexico and resources from other strategic matters and from
the United States and over a transition period will operational matters for an extended period of time;
remove most customs duties imposed on goods the successful introduction of new products; the
traded among the three countries. In addition, successful rationalization of existing operations;
NAFTA will remove or limit many investment and other risks identified from time to time in the
restrictions, liberalize trade in services, provide a Company’s SEC reports and public announcements.
specialized means for settlement of, and remedies Any forward-looking statements represent Mohawk’s
for, trade disputes arising under applicable laws estimates only as of the date of this report and
and will result in new laws and regulations to should not be relied upon as representing Mohawk’s
further these goals. Although NAFTA lowers the estimates as of any subsequent date. While Mohawk
tariffs imposed on the Company’s ceramic tile may elect to update forward-looking statements
manufactured in Mexico and sold in the United at some point in the future, Mohawk specifically
States, it may also stimulate competition in the disclaims any obligation to do so, even if Mohawk’s
United States and Canada from manufacturers estimates change.
located in Mexico, which could negatively affect
the Company’s business. Quantitative and Qualitative Disclosures About
Market Risk
Forward-Looking Information
Financial exposures are managed as an integral part
Certain of the matters discussed in the preceding of the Company’s risk management program, which
pages, particularly regarding anticipation of future seeks to reduce the potentially adverse effect that
financial performance, business prospects, growth the volatility of the interest rate, exchange rate and
and operating strategies, proposed acquisitions, new natural gas markets may have on its operating
products and similar matters, and those preceded results. The Company does not regularly engage in
by, followed by or that otherwise include the words speculative transactions, nor does it regularly hold
“believes,”“expects,”“anticipates,”“intends,” or issue financial instruments for trading purposes.
“estimates” or similar expressions constitute
“forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities and Carpet & Rugs $3.1 billion 69%
Exchange Act of 1934, as amended. For those
statements, Mohawk claims the protection of
the safe harbor for forward-looking statements Ceramic $0.9 billion 20%
contained in the Private Securities Litigation
Reform Act of 1995. Those statements are based
All other $0.5 billion 11%
on assumptions regarding the Company’s ability
to maintain its sales growth and gross margins and
to control costs. These or other assumptions could
prove inaccurate and therefore, there can be no
2002 Mohawk Sales
assurance that the “forward-looking statements”
will prove to be accurate. Forward-looking
statements involve a number of risks and
uncertainties. The following important factors, in
addition to those discussed elsewhere in this Laminates $0.8 billion 3.9%
document, affect the future results of Mohawk and Hardwood $1.8 billion 8.9%
could cause those results to differ materially from
those expressed in the forward-looking statements: Ceramic $2.1 billion 10.3%
materially adverse changes in economic conditions
generally in the carpet, rug, ceramic tile and other Vinyl $1.5 billion 7.4%
floorcovering markets served by Mohawk; the Rubber $0.9 billion 4.5%
successful integration of Dal-Tile into Mohawk’s
Carpet & Rugs $13.2 billion 65.0%
business; competition from other carpet, rug,
ceramic tile and floorcovering manufacturers; raw
2001 Floorcovering Industry Sales
material prices; declines in residential or commercial
construction activity; timing and level of capital
expenditures; the successful integration of
acquisitions, including the challenges inherent in
Mohawk Industries, Inc. and Subsidiaries 28
13. Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Interest Rate Risk Management the offset going to other comprehensive income,
net of applicable income taxes and any hedge
The Company used an interest rate swap contract to
ineffectiveness. Any gain or loss is recognized in cost
adjust the proportion of total debt that was subject
of goods sold in the same period or periods during
to variable interest rates as compared to fixed interest
which the hedged transaction affects earnings. At
rates. Under the interest rate swap contract, the
December 31, 2002, the Company had natural gas
Company agreed to pay an amount equal to a fixed-
contracts outstanding with an aggregate notional
rate of interest times a notional principal amount
amount of approximately 1.5 million MMBTU’s. The fair
of $100 million, and to receive in return an amount
value of these contracts, which mature from January
equal to a specified variable-rate of interest times
2003 to December 2004, was an asset of $1.9 million,
the same notional principal amount. The notional
with the offset recorded in other comprehensive
amounts of the contracts are not exchanged, and
income, net of applicable income taxes.
no other cash payments are made. The contract fair
The long-term supply agreements are accounted
value is reflected on the consolidated balance sheets
for under the normal purchases provision within SFAS
and related gains or losses were deferred in other
No. 133 and its amendments. At December 31, 2002,
comprehensive income. These deferred gains and
the Company has normal purchase commitments of
losses are recognized in income as an adjustment
approximately 4.6 million MMBTU’s for periods
to interest expense over the same period in which
maturing from January 2003 through August 2005.
the related interest payments being hedged are
The contracted value of these commitments was
recognized in income. However, to the extent that
approximately $17.4 million and the fair value of
any of these contracts are not considered to be 100%
these commitments was approximately $19.7 million,
effective in offsetting the change in the value of the
at December 31, 2002.
interest payments being hedged, any changes in
fair value relating to the ineffective portion of these
Foreign Currency Rate Management
contracts is immediately recognized in earnings.
During December 2002, the Company determined, The Company enters into foreign exchange forward
based on future cash flow projections, that the cash contracts to hedge costs associated with its
flow hedge would more than likely become ineffective operations in Mexico. The objective of these
as strong cash flow has allowed the Company to transactions is to reduce volatility of exchange
significantly reduce its outstanding LIBOR based rates where these operations are located by fixing
variable rate debt below the $100 million hedged a portion of their costs in US currency. Gains and
notional amount. The unrealized loss on the interest losses are recognized in cost of sales in the same
rate swap previously included in other comprehensive period or periods during which the hedged
income has been recorded as a realized loss in transaction affects earnings. Accordingly, these
interest expense in the fourth quarter of 2002. The contracts have been designated as cash flow hedges.
amount recorded in interest expense was $10.7 At December 31, 2002, the Company had forward
million. The Company continues to carry the liability contracts maturing from January 2003 through
on its consolidated balance sheets at its fair value December 2003, to purchase approximately
and the interest rate swap will be marked to market 357.5 million Mexican pesos. The aggregate U.S.
in future reporting periods with any changes being Dollar value of these contracts at December 31, 2002
recorded in interest expense. The floating interest was approximately $34.6 million. The contracts are
rate at which the hedge was deemed ineffective was marked to market in other current liabilities with
1.42%. A 50 basis point change in interest rates would the offset to other comprehensive income, net of
reduce/increase interest expense by approximately applicable income taxes. Unrealized losses at
$1.5 million. December 31, 2002 were not material.
Natural Gas Risk Management
The Company uses a combination of natural gas 39.2%
1st quarter 2002
futures contracts and long-term supply agreements
2nd quarter 2002 35.3%
to manage unanticipated changes in natural gas
prices. The contracts are based on forecasted usage
3rd quarter 2002 33.3%
of natural gas measured in Million British Thermal
Units (“MMBTU”). 4th quarter 2002 29.2%
The Company has designated the natural gas
futures contracts as cash flow hedges. The
Debt-to-Total Capitalization Ratio
outstanding contracts are valued at market with
29 Mohawk Industries, Inc. and Subsidiaries
14. Consolidated Statements of Earnings
In thousands, except per share data
Years ended December 31, 2002 2001 2000
Net sales $ 4,522,336 3,445,945 3,404,034
Cost of sales 3,285,222 2,613,043 2,581,185
Gross profit 1,237,114 832,902 822,849
Selling, general and administrative expenses 718,002 505,745 505,734
Class action legal settlement - - 7,000
Operating income 519,112 327,157 310,115
Other expense (income):
Interest expense 68,972 29,787 38,044
Other expense 12,425 7,780 5,660
Other income (5,914) (1,826) (1,218)
75,483 35,741 42,486
Earnings before income taxes 443,629 291,416 267,629
Income taxes 159,140 102,824 105,030
Net earnings $ 284,489 188,592 162,599
Basic earnings per share $ 4.46 3.60 3.02
Weighted-average common shares outstanding 63,723 52,418 53,769
Diluted earnings per share $ 4.39 3.55 3.00
Weighted-average common and dilutive
potential common shares outstanding 64,861 53,141 54,255
See accompanying notes to consolidated financial statements.
Mohawk Industries, Inc. and Subsidiaries 30
15. Consolidated Balance Sheets
In thousands, except per share data
December 31, 2002 2001
ASSETS
Current assets:
Receivables $ 501,129 404,875
Inventories 678,008 531,405
Prepaid expenses 37,368 24,884
Deferred income taxes 82,074 70,058
Total current assets 1,298,579 1,031,222
Property, plant and equipment, net 855,324 619,703
Goodwill 1,277,453 109,167
Other intangible assets 146,700 -
Other assets 18,687 8,393
$ 3,596,743 1,768,485
LIAB I LITI ES AN D STOC KHOLDERS’ EQU ITY
Current liabilities:
Current portion of long-term debt $ 27,427 158,366
Accounts payable and accrued expenses 589,283 423,495
Total current liabilities 616,710 581,861
Deferred income taxes 186,996 84,955
Long-term debt, less current portion 793,000 150,067
Other long-term liabilities 17,158 3,051
Total liabilities 1,613,864 819,934
Stockholders’ equity:
Preferred stock, $.01 par value; 60 shares authorized; no shares issued - -
Common stock, $.01 par value; 150,000 shares authorized; 76,371
and 61,408 shares issued in 2002 and 2001, respectively 763 614
Additional paid-in capital 1,006,550 197,247
Retained earnings 1,231,612 947,123
Accumulated other comprehensive income (loss) 1,126 (2,837)
2,240,051 1,142,147
Less treasury stock at cost; 10,006 and 8,715 shares in 2002 and 2001, respectively 257,172 193,596
Total stockholders’ equity 1,982,879 948,551
Commitments and contingencies (Note 14)
$ 3,596,743 1,768,485
See accompanying notes to consolidated financial statements.
31 Mohawk Industries, Inc. and Subsidiaries
16. Consolidated Statements of Stockholders’ Equity
and Comprehensive Income
In thousands Accumulated
Additional other Total
Common stock paid-in Retained comprehensive Treasury stockholders’
Shares Amount capital earnings income (loss) stock equity
Balances at
December 31, 1999 60,657 $ 607 179,993 595,932 - (83,986) 692,546
Stock options exercised 181 1 2,396 - - - 2,397
Purchase of treasury stock - - - - - (106,689) (106,689)
Grant to employee profit sharing plan - - - - - 2,593 2,593
Tax benefit from exercise of
stock options - - 914 - - - 914
Net earnings - - - 162,599 - - 162,599
Balances at
December 31, 2000 60,838 608 183,303 758,531 - (188,082) 754,360
Stock options exercised 570 6 9,097 - - - 9,103
Purchase of treasury stock - - - - - (8,159) (8,159)
Grant to employee profit sharing plan - - - - - 2,500 2,500
Grant for executive incentive program - - - - - 145 145
Tax benefit from exercise of
stock options - - 4,847 - - - 4,847
Comprehensive income:
Unrealized loss on hedge instruments - - - - (2,837) - (2,837)
Net earnings - - - 188,592 - - 188,592
Total Comprehensive income 185,755
Balances at
December 31, 2001 61,408 614 197,247 947,123 (2,837) (193,596) 948,551
Stock options exercised 2,056 20 50,165 - - - 50,185
Purchase of Dal-Tile 12,907 129 750,558 - - - 750,687
Purchase of treasury stock - - - - - (64,034) (64,034)
Grant to employee profit sharing plan - - 3,040 - - 282 3,322
Grant for executive incentive program - - 77 - - 176 253
Tax benefit from exercise of
stock options - - 5,463 - - - 5,463
Comprehensive income:
Discontinued hedge on interest rate swap – – – – 6,768 - 6,768
Unrealized loss on hedge instruments - - - - (2,805) - (2,805)
Net earnings - - - 284,489 - - 284,489
Total Comprehensive income 288,452
Balances at
December 31, 2002 76,371 $ 763 1,006,550 1,231,612 1,126 (257,172) 1,982,879
See accompanying notes to consolidated financial statements.
Mohawk Industries, Inc. and Subsidiaries 32
17. Consolidated Statements of Cash Flows
In thousands
Years ended December 31, 2002 2001 2000
Cash flows from operating activities:
Net earnings $ 284,489 188,592 162,599
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 101,942 84,167 82,346
Deferred income taxes 33,712 5,563 32,179
Tax benefit on stock options exercised 5,463 4,847 914
Loss on sale of property, plant and equipment 2,762 2,910 205
Changes in assets and liabilities, net of effects of acquisitions:
Receivables 34,657 (46,066) (18,248)
Inventories (15,215) 43,190 (70,209)
Accounts payable and accrued expenses 105,464 48,754 33,770
Other assets and prepaid expenses (13,111) (811) (3,257)
Other liabilities 9,347 101 27
Net cash provided by operating activities 549,510 331,247 220,326
Cash flows from investing activities:
Additions to property, plant and equipment (111,934) (52,913) (73,475)
Acquisitions (717,638) - (36,844)
Net cash used in investing activities (829,572) (52,913) (110,319)
Cash flows from financing activities:
Net change in revolving line of credit (29,491) (181,964) (168,595)
Proceeds from issuance of senior notes 700,000 - -
Proceeds from bridge credit facility 600,000 - -
Repayment of bridge credit facility (600,000) - -
Net change in asset securitizations (125,000) (66,104) 191,104
Payments on term loans (32,208) (32,212) (32,226)
Redemption of acquisition indebtedness (202,564) - -
Industrial revenue bonds and other, net of payments (1,307) (1,115) 3,480
Change in outstanding checks in excess of cash (15,519) 2,117 522
Acquisition of treasury stock (64,034) (8,159) (106,689)
Common stock transactions 50,185 9,103 2,397
Net cash provided by (used in) financing activities 280,062 (278,334) (110,007)
Net change in cash - - -
Cash, beginning of year - - -
Cash, end of year $ - - -
See accompanying notes to consolidated financial statements.
33 Mohawk Industries, Inc. and Subsidiaries