Financial Analysis

Acquisitions 2025 Acquisitions During 2025, the Company completed acquisitions in Flooring NA for $7.4 million, including $0.5 million of cash acquired, subject to pending working capital adjustments. The Company is in the process of measuring the fair value of the assets acquired and liabilities assumed and expects the valuation to be completed before the end of the measurement period. The Company has recognized a preliminary goodwill balance of $7.6 million, and intangible assets of $1.3 million. The goodwill is expected to be deductible for tax purposes.

BusinessCombinationDisclosureTextBlock

Commitments and Contingencies The Company had approximately $0.9 million and $0.7 million in standby letters of credit for various insurance contracts and commitments to foreign vendors as of December 31, 2025, and 2024, respectively that expire within two years. From time to time in the regular course of its business, the Company is involved in various lawsuits, claims, investigations and other legal matters. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject. Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) Litigation The Company has been named as a defendant in a number of lawsuits in Georgia, Alabama, and South Carolina relating to carpet products that allegedly contained perfluoroalkyl and polyfluoroalkyl substances (PFAS). These lawsuits have been brought against chemical manufacturers and carpet manufacturers and have been brought by four categories of plaintiffs: (i) municipalities and counties alleging contamination of their drinking water sources with PFAS, (ii) counties alleging contamination of their landfills with PFAS, (iii) private landowners alleging contamination of their real property with PFAS, and (iv) rate payers alleging that their drinking water rates have increased due to the costs associated with remediation of PFAS. The municipalities and counties assert common-law and statutory claims seeking to recover the co …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys segment revenues disaggregated by the geographical market location of customer sales and product categories during the years ended December 31, 2025, 2024 and 2023, respectively: (In millions) December 31, 2025 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets: United States $ 2,255.4 3,544.7 13.8 5,813.9 Europe (1) 1,173.5 3.1 2,190.0 3,366.6 Latin America 685.7 5.3 37.0 728.0 Other 174.8 85.4 616.7 876.9 Total $ 4,289.4 3,638.5 2,857.5 10,785.4 Product Categories: Ceramic & Stone $ 4,220.1 4,220.1 Carpet & Resilient 69.3 2,842.7 822.8 3,734.8 Laminate & Wood 795.8 956.5 1,752.3 Other (2) 1,078.2 1,078.2 Total $ 4,289.4 3,638.5 2,857.5 10,785.4 December 31, 2024 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets: United States $ 2,280.1 3,650.7 8.7 5,939.5 Europe (1) 1,058.3 4.1 2,131.9 3,194.3 Latin America 707.7 5.6 37.2 750.5 Other 180.5 109.5 662.6 952.6 Total $ 4,226.6 3,769.9 2,840.4 10,836.9 Product Categories: Ceramic & Stone $ 4,166.2 19.1 4,185.3 Carpet & Resilient 60.4 2,941.3 864.8 3,866.5 Laminate & Wood 809.5 919.4 1,728.9 Other (2) 1,056.2 1,056.2 Total $ 4,226.6 3,769.9 2,840.4 10,836.9 December 31, 2023 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets: United States $ 2,320.0 3,713.3 6.7 6,040.0 Europe (1) 1,071.7 4.4 2,304.9 3,381.0 Latin America 730.3 3.8 33.7 767.8 Other 178.1 107.9 660.3 946.3 Total $ 4,300.1 3,829.4 3,005.6 11,135.1 Produ …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation The Company recognized compensation expense for all share-based payments granted for the years ended December 31, 2025, 2024 and 2023 based on the grant date fair market value estimated in accordance with the provisions of ASC 718-10. Compensation expense is recognized on a straight-line basis over the options or other awards estimated lives for fixed awards with ratable vesting provisions. On May 19, 2017, the Companys stockholders approved the 2017 Long-Term Incentive Plan (the 2017 Plan), which allows the Company to reserve up to a maximum of 3 million shares of common stock for issuance upon the grant or exercise of stock options, restricted stock, restricted stock units (RSUs) and other types of awards, to directors and key employees through the 2027 stockholders meeting, unless earlier terminated or amended. Under the 2017 Plan, the grant date fair market value of restricted stock and RSUs is equal to the closing market price of the Companys common stock on the date of the grant, and such awards generally vest between three and five years. In addition, option awards may be granted with an exercise price equal to or greater than the fair market value of the Companys common stock on the date of the grant, and such awards generally vest between three and five years with a 10-year contractual term. Restricted Stock Plans A summary of the Companys RSUs under the Companys long-term incentive plans as of December 31, 2025, and changes during the year t …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The Company performs its annual testing of goodwill and indefinite-lived intangibles on the first day of the fourth quarter of each year. Between annual testing dates, the Company monitors factors such as its market capitalization, comparable company market multiples and macroeconomic conditions to identify conditions that could impact the Companys assumptions utilized in the determination of the estimated fair values of the Companys reporting units and indefinite-lived intangible assets significantly enough to trigger an impairment. The goodwill impairment tests are based on determining the fair value of the specified reporting units based on management judgments and assumptions using the discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy and comparable company market valuation classified in Level 2 of the fair value hierarchy approaches. The Company has identified Global Ceramic, Flooring NA and Flooring ROW as its reporting units for the purposes of allocating goodwill and intangibles at the asset level, as well as assessing impairments. The valuation approaches are subject to key judgments and assumptions that are sensitive to change such as judgments and assumptions about appropriate sales growth rates, operating margins, weighted average cost of capital (WACC) and comparable company market multiples. The Company compared the estimated fair values of its indefinite-lived intangibles to th …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Following is a summary of earnings (loss) before income taxes for operations: (In millions) 2025 2024 2023 United States $ 97.4 289.0 (450.0) Foreign 371.3 354.0 86.0 Earnings (loss) before income taxes $ 468.7 643.0 (364.0) Income tax (benefit) expense for the years ended December 31, 2025, 2024 and 2023 consists of the following: (In millions) 2025 2024 2023 Current income taxes: United States federal $ 120.1 86.2 67.0 State and local 9.2 6.0 11.9 Foreign 101.3 93.2 115.9 Total current 230.6 185.4 194.8 Deferred income taxes: United States federal (93.2) (26.3) (50.1) State and local (1.7) (7.3) (5.2) Foreign (36.9) (23.6) (54.6) Total deferred (131.8) (57.2) (109.9) Total income tax expense $ 98.8 128.2 84.9 The geographic dispersion of earnings and losses contributes to the annual changes in the Companys effective tax rates. Approximately 21% of the Companys current year earnings before income taxes was generated in the U.S. The Company is also subject to taxation in other jurisdictions where it has operations, including Australia, Belgium, Brazil, Bulgaria, France, Ireland, Italy, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Russia, Spain and the United Kingdom. The effective tax rates that the Company accrues in these jurisdictions vary widely, but they are generally lower than the Companys overall effective tax rate. The Companys domestic effective tax rates for the years ended December 31, 2025, 2024 and 2023 were 35.3%, 20.3%, and …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. Certain of the Companys leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of the Companys leases contain residual value guarantees and none of the Companys agreements contain material restrictive covenants. The Company rents or subleases certain real estate to third parties. The Companys sublease portfolio consists mainly of operating leases. The components of lease costs for the twelve months ended December 31, 2025, 2024 and 2023, respectively, are as follows: (In millions) December 31, 2025 Cost of Goods Sold Selling, General and Administrative Expenses Total Operating lease costs: Fixed $ 56.4 95.5 151.9 Short-term 10.9 18.5 29.4 Variable 16.1 28.9 45.0 Sub-leases (4.7) (0.6) (5.3) Total operating lease costs $ 78.7 142.3 221.0 Depreciation and Amortization Interest Total Finance lease costs: Amortization of leased assets $ 23.5 23.5 Interest on lease liabilities 3.2 3.2 Total finance lease costs $ 23.5 3.2 26.7 Total lease costs $ 247.7 December 31, 2024 Cost of Goods Sold Selling, General and Administrative Expenses Total Operating lease costs: Fixed $ 51.2 91.4 142.6 Short-term 11.6 19.6 31.2 Variable 15.9 31.1 47.0 Sub-leases (3.5) (0.9) (4.4) Total operating lease costs $ 75.2 141.2 216.4 Depreciation and Amortization Interest Total Finance lease co …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Long-Term Debt Senior Credit Facility On August 12, 2022, the Company entered into a fourth amendment (the Amendment) to its existing senior revolving credit facility (the Senior Credit Facility). The Amendment, among other things, (i) extended the maturity of the Senior Credit Facility from October 18, 2024, to August 12, 2027, (ii) renewed the Companys option to extend the maturity of the Senior Credit Facility up to two times, (iii) increased the Consolidated Interest Coverage Ratio financial maintenance covenant from 3.00:1.00 to 3.50:1.00, (iv) eliminated certain covenants applicable to the Company and its subsidiaries, including, but not limited to, restrictions on dispositions, restricted payments, and transactions with affiliates, and the Consolidated Net Leverage Ratio financial covenant, and (v) increased the amount available under the Senior Credit Facility to $1,950.0 million until October 18, 2024, after which the amount available under the Senior Credit Facility decreased to $1,485.0 million. The Amendment also permits the Company to increase the commitments under the Senior Credit Facility by an aggregate amount not to exceed $600.0 million. On August 5, 2024, the Company entered into a Lender Joinder Agreement, which increased commitments under the Senior Credit Facility by an additional $100.0 million until August 12, 2027, and further amended the Senior Credit Facility to permit the Company to increase the commitments under the Senior Credit Facility by an a …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Recently Adopted On December 14, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which applies to all entities subject to income taxes. The standard requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. The standard also updates the quarterly disclosure requirements for supplemental cash flows information to require disclosure of income taxes paid, net of refunds received. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. For public business entities, this standard became effective for annual periods beginning after December 15, 2024. The Company adopted the new standard on a prospective basis as disclosed in Note 14. Recent Accounting Pronouncements Effective in Future Years On November 4, 2024, the FASB issued ASU 2024-03, Disaggregation of income statement expense. ASU 2024-03, as amended by ASU 2025-01, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date , requires disaggregated disclosure of income statement expenses for public business entities (PBEs). The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Contract Liabilities The Company records contract liabilities when it receives payment prior to fulfilling a performance obligation. Contract liabilities related to revenues are recorded in accounts payable and accrued expenses on the accompanying consolidated balance sheets. The Company had contract liabilities of $74.3 million and $63.4 million as of December 31, 2025, and December 31, 2024, respectively. Performance Obligations Substantially all of the Companys revenue is recognized at a point in time when the product is either shipped or received from the Companys facilities and control of the product is transferred to the customer. Accordingly, in any period, the Company does not recognize a significant amount of revenue from performance obligations satisfied or partially satisfied in prior periods and the amount of such revenue recognized during the years ended December 31, 2025, 2024, and 2023 was immaterial. Costs to Obtain a Contract The Company incurs certain incremental costs to obtain revenue contracts. These costs relate to marketing display structures and are capitalized when the amortization period is greater than one year, with the amount recorded in other assets on the accompanying consolidated balance sheets. Capitalized costs to obtain contracts were $58.8 million and $61.4 million as of December 31, 2025, and December 31, 2024, respectively. Straight-line amortization expense recognized during 2025, 2024 and 2023 relat …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company has three reporting segments: Global Ceramic, Flooring NA and Flooring ROW. Global Ceramic designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone, porcelain slabs, quartz countertops and other products, which it distributes primarily in North America, Europe and Latin America through its network of regional distribution centers and Company-operated service centers using Company-operated trucks, common carriers or rail transportation. The segments product lines are sold through Company-operated service centers, independent distributors, home center retailers, tile and flooring retailers and contractors. Flooring NA designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, laminate, resilient (includes sheet vinyl and LVT) and wood flooring, which it distributes through its network of regional distribution centers and satellite warehouses using Company-operated trucks, common carriers or rail transportation. The segments product lines are sold through various selling channels, including independent floor covering retailers, distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial contractors and commercial end users. Flooring ROW designs, manufactures, sources, licenses and markets laminate, sheet vinyl, LVT, wood flooring, roofing elements, insulation boards, medium-density fiberboard (MDF), chip …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Basis of Presentation Mohawk Industries, Inc. (Mohawk or the Company), a term which includes the Company and its subsidiaries, is a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The Companys vertically integrated manufacturing and distribution processes provide competitive advantages in the production of carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile (LVT) and sheet vinyl flooring. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2025, the Company had cash and cash equivalents of $856.1 million, of which $370.8 million was held outside the United States. As of December 31, 2024, the Compa …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies From time to time in the regular course of its business, the Company is involved in various lawsuits, claims, investigations and other legal matters. Except as noted below, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject. Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) Litigation The Company has been named as a defendant in a number of lawsuits in Georgia, Alabama, and South Carolina relating to carpet products that allegedly contained perfluoroalkyl and polyfluoroalkyl substances (PFAS). These lawsuits have been brought against chemical manufacturers and carpet manufacturers and have been brought by four categories of plaintiffs: (i) municipalities and counties alleging contamination of their drinking water sources with PFAS, (ii) counties alleging contamination of their landfills with PFAS, (iii) private landowners alleging contamination of their real property with PFAS, and (iv) rate payers alleging that their drinking water rates have increased due to the costs associated with remediation of PFAS. The municipalities and counties assert common law and statutory claims seeking to recover the costs of installing water filtration systems to filter out the PFAS that is allegedly in the drinking water sources. The counties that claim contamination of their landfills assert common law and statutory claims seeking to recover the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys segment revenues disaggregated by the geographical market location of customer sales and product categories for the three months ended July 4, 2026, and June 28, 2025: (In millions) July 4, 2026 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets: United States $ 636.2 952.2 3.6 1,592.0 Europe 340.3 0.7 644.2 985.2 Latin America 187.3 1.2 12.1 200.6 Other 45.9 22.0 145.7 213.6 Total $ 1,209.7 976.1 805.6 2,991.4 Product Categories: Ceramic & Stone $ 1,191.6 1,191.6 Carpet & Resilient 18.1 755.5 216.3 989.9 Laminate & Wood 220.6 262.0 482.6 Other (1) 327.3 327.3 Total $ 1,209.7 976.1 805.6 2,991.4 June 28, 2025 Global Ceramic Flooring NA Flooring ROW Total Geographical Markets: United States $ 591.0 924.2 3.6 1,518.8 Europe 318.4 1.3 560.4 880.1 Latin America 167.4 1.2 9.9 178.5 Other 44.1 20.1 160.5 224.7 Total $ 1,120.9 946.8 734.4 2,802.1 Product Categories: Ceramic & Stone $ 1,101.5 1,101.5 Carpet & Resilient 19.4 747.9 212.5 979.8 Laminate & Wood 198.9 248.9 447.8 Other (1) 273.0 273.0 Total $ 1,120.9 946.8 734.4 2,802.1 (1) Other includes roofing elements, insulation boards, chipboards and IP contracts. The following table presents the Company's segment revenues disaggregated by the geographical market location of customer sales and product categories for the six months ended July 4, 2026, and June 28, 2025: (In millions) July 4, 2026 Global Ceramic Flooring NA Flooring ROW Total Geographica …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation The Company recognizes compensation expense for all stock-based payments granted based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10. Compensation expense is recognized on a straight-line basis over the awards estimated lives for fixed awards with ratable vesting provisions. The Company granted 2,449 restricted stock units (RSUs) at a weighted average grant-date fair value of $107.74 per unit for the three months ended July 4, 2026. The Company granted 248,485 RSUs at a weighted average grant-date fair value of $123.01 per unit for the six months ended July 4, 2026. The Company granted no RSUs for the three months ended June 28, 2025. The Company granted 304,989 RSUs at a weighted average grant-date fair value of $116.08 per unit for the six months ended June 28, 2025. The Company recognized stock-based compensation expense related to RSUs of $6.7 million ($5.0 million net of taxes) and $7.6 million ($5.6 million net of taxes) for the three months ended July 4, 2026, and June 28, 2025, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. The Company recognized stock-based compensation expense related to RSUs of $14.1 million ($10.4 million net of taxes) and $15.2 million ($11.2 million net of taxes) for the six months ended July 4, 2026, and June 28, 2025, respectively, which has been allocated to cost of sales and selling, general and administrative expenses …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets The components of goodwill and other intangible assets are as follows: Goodwill: (In millions) Global Ceramic Flooring NA Flooring ROW Total Balance as of December 31, 2025 (1) $ 379.9 830.4 1,210.3 Goodwill recognized 0.1 0.1 Currency translation (19.3) (19.3) Balance as of July 4, 2026 $ 380.0 811.1 1,191.1 (1) Net of accumulated impairment losses of $2,886.7 million ($1,644.7 million in Global Ceramic, $557.9 million in Flooring NA and $684.1 million in Flooring ROW). Intangible assets not subject to amortization: (In millions) Tradenames Balance as of December 31, 2025 $ 695.8 Currency translation during the period (4.7) Balance as of July 4, 2026 $ 691.1 Intangible assets subject to amortization: (In millions) Customer Relationships Patents Other Total Balances as of December 31, 2025 Gross carrying amount $ 716.2 265.8 9.1 991.1 Intangible assets acquired 0.9 0.9 Accumulated amortization (607.2) (264.5) (2.9) (874.6) Net intangible assets subject to amortization 109.0 1.3 7.1 117.4 Balance as of July 4, 2026 Gross carrying amount 705.6 258.7 10.0 974.3 Accumulated amortization (611.6) (257.9) (3.5) (873.0) Net intangible assets subject to amortization $ 94.0 0.8 6.5 101.3 Three Months Ended Six Months Ended (In millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Amortization expense $ 7.2 7.2 14.6 13.8 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes For the three months ended July 4, 2026, the Company recorded income tax expense of $52.3 million on earnings before income taxes of $248.5 million for an effective tax rate of 21.0%. For the three months ended June 28, 2025, the Company recorded income tax expense of $34.0 million on earnings before income taxes of $180.5 million, for an effective tax rate of 18.8%. The increase in the effective tax rate was primarily attributable to the Companys geographic dispersion of profits and losses for the respective periods and a non-recurring benefit recorded during the three months ended June 28, 2025, related to a prior period Italian tax benefit. These unfavorable impacts were partially offset by a smaller increase in unrecognized tax benefits during the three months ended July 4, 2026. For the six months ended July 4, 2026, the Company recorded income tax expense of $43.4 million on earnings before income taxes of $356.7 million for an effective tax rate of 12.2%. For the six months ended June 28, 2025, the Company recorded income tax expense of $51.5 million on earnings before income taxes of $270.5 million for an effective tax rate of 19.0%. The decrease in the effective tax rate was primarily attributable to a smaller increase in unrecognized tax benefits during the three months ended July 4, 2026, and tax benefits recognized during the six months ended July 4, 2026, including (i) a one-time tax benefit associated with a legal entity restructuring initiative, (i …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Debt Senior Credit Facility On May 12, 2026, the Company entered into a senior revolving credit agreement (the Senior Credit Facility), by and among the Company and certain of its domestic and foreign subsidiaries, as borrowers (the Borrowers), certain lenders party thereto from time to time (the Lenders), JPMorgan Chase Bank, N.A. and J.P. Morgan SE, as U.S. administrative agent and non-U.S. administrative agent (together, the Administrative Agent). Contemporaneously with the entry into the Senior Credit Facility, the Company terminated all outstanding commitments and repaid all outstanding obligations under its existing senior revolving credit facility. The Senior Credit Facility provides for unsecured revolving credit commitments in an initial aggregate amount of up to $1,500.0 million that includes: (i) revolving credit loans up to the maximum amount available under the Senior Credit Facility, (ii) the issuance of letters of credit up to a $125.0 million sublimit, and (iii) swingline loans in an initial aggregate amount up to $150.0 million, with an accordion feature pursuant to which the Borrowers may request to increase the revolving commitments by an additional aggregate amount of up to $600.0 million, subject to the satisfaction of certain conditions. The proceeds of any borrowings under the Senior Credit Facility will be used to (a) refinance the Companys existing senior revolving credit facility, (b) pay fees, commissions and expenses in connection with the transact …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Recently Adopted On July 30, 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient that allows public entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the asset. That is, current information may be used without making adjustments for expected future changes to relevant data that may impact collectability of receivables. The Company adopted the practical expedient allowed in ASU 2025-05 as of January 1, 2026, with no material impact on reported financial results. On November 26, 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The Company adopted the new guidance on a prospective basis as of January 1, 2026, with no impact on the reported financials, as there were no transactions occurring within the scope of the new guidance. Recent Accounting Pronouncements Effective in Future Periods On November 4, 2024, the FASB issued ASU 2024-03, Disaggregation of income statement expense. ASU 2024-03, as amended by ASU 2025-01, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Contract Liabilities The Company records contract liabilities when it receives payment prior to fulfilling a performance obligation. Contract liabilities related to revenues are recorded in accounts payable and accrued expenses on the accompanying Condensed Consolidated Balance Sheets. The revenues related to these performance obligations are expected to be recognized within a twelve-month period. The Company had contract liabilities of $71.9 million and $74.3 million as of July 4, 2026, and December 31, 2025, respectively. Performance Obligations Substantially all of the Companys revenue is recognized at a point in time when the product is either shipped or received from the Companys facilities and control of the product is transferred to the customer. Accordingly, the Company does not recognize a significant amount of revenue from performance obligations satisfied, or partially satisfied, in prior periods, and the amount of such revenue recognized during the three and six months ended July 4, 2026, and June 28, 2025, was immaterial. Costs to Obtain a Contract The Company incurs certain incremental costs to obtain revenue contracts. These costs relate to marketing display structures and are capitalized when the amortization period is greater than one year, with the amount recorded in other assets on the accompanying Condensed Consolidated Balance Sheets. Capitalized costs to obtain contracts were $66.1 million and $58.8 million as of Jul …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company has three reporting segments: Global Ceramic, Flooring NA and Flooring ROW. Global Ceramic designs, manufactures, sources and markets a broad line of ceramic tile, porcelain tile, natural stone, porcelain slabs, quartz countertops and other products, which it distributes primarily in North America, Europe and Latin America through its network of regional distribution centers and Company-operated service centers using Company-operated trucks, common carriers or rail transportation. The segments product lines are sold through Company-operated service centers, independent distributors, home centers, tile and flooring retailers, residential builders, residential and commercial contractors and commercial end users. Flooring NA designs, manufactures, sources and markets its floor covering product lines, including carpets, rugs, carpet pad, laminate, resilient (includes sheet vinyl and luxury vinyl tile (LVT)), wood flooring and flooring accessories, which it distributes through its network of regional distribution centers and satellite warehouses using Company-operated trucks, common carriers or rail transportation. The segments product lines are sold through independent floor covering retailers, independent distributors, home centers, mass merchandisers, department stores, shop at home, buying groups, residential builders, commercial contractors and commercial end users. Flooring ROW designs, manufactures, sources, licenses and markets laminate, sheet …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Accumulated Other Comprehensive Income (Loss) (In millions) Foreign Currency Translation Adjustment Prior Pension and Post-Retirement Benefit Service Cost and Actuarial Gain (Loss) Total Balance as of December 31, 2025 $ (908.6) 0.7 (907.9) Current period other comprehensive income (loss) (29.2) (29.2) Balance as of July 4, 2026 $ (937.8) 0.7 (937.1) Stockholders Equity The following tables reflect the changes in stockholders equity for the three months ended July 4, 2026, and June 28, 2025: Total Stockholders' Equity Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Noncontrolling Interests Total Stockholders Equity (in millions) Shares Amount Shares Amount Balance as of April 04, 2026 68.4 $ 0.7 $ 1,993.7 $ 7,555.6 $ (959.3) (7.3) $ (215.1) $ 4.1 $ 8,379.7 Shares issued under employee and director stock plans, net of shares withheld to pay taxes on employees equity awards 0.1 0.1 Stock-based compensation expense 6.7 6.7 Repurchases of common stock (0.6) (60.0) (60.0) Net earnings attributable to noncontrolling interests (0.1) (0.1) Currency translation adjustment on noncontrolling interests De-consolidation of noncontrolling interest Currency translation adjustment 22.2 22.2 Prior pension and post-retirement benefit service cost and actuarial loss Net earnings 196.1 196.1 Balance as of July 04, 2026 67.8 $ 0.7 $ 2,000.4 $ 7,691.7 $ (937.1) (7.3) $ (215.0) $ 4.0 $ 8,544.7 Total Stockholders Equity Common St …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing