Segment reporting

9 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Segment reporting

Segment reporting

In connection with the Marazzi acquisition, the Company revised the names of its segments and, beginning in the second quarter of 2013, now refers to the Mohawk segment as the Carpet segment, the Dal-Tile segment as the Ceramic segment and the Unilin segment as the Laminate and Wood segment. Only the names of the segments are affected by the change and therefore no prior period financial information changed.

The Company has three reporting segments: the Carpet segment, the Ceramic segment and the Laminate and Wood segment. The Carpet segment designs, manufactures, sources, distributes and markets its floor covering product lines, which principally include carpets, modular carpet tiles, rugs, mats and carpet pads, primarily in North America through its network of regional distribution centers and satellite warehouses using Company-operated trucks, common carriers or rail transportation. This segment’s product lines are sold through various selling channels, which include independent floor covering retailers, home centers, mass merchandisers, department stores, commercial dealers and commercial end users. The Ceramic segment designs, manufactures, sources, distributes and markets a broad line of ceramic tile, porcelain tile, natural stone and other products, primarily in North America, Europe and Russia. This segment’s product lines are sold to various selling channels including independent distributors, home center retailers, tile and flooring retailers and contractors. The Laminate and Wood segment designs, manufactures, sources, licenses, distributes and markets laminate and hardwood flooring, roofing systems, insulation panels and other wood products, primarily in Europe and North America. This segment's product lines are sold through various selling channels including retailers, independent distributors and home centers.

The accounting policies for each operating segment are consistent with the Company’s policies for the consolidated financial statements. Amounts disclosed for each segment are prior to any elimination or consolidation entries. Corporate general and administrative expenses attributable to each segment are estimated and allocated accordingly. Segment performance is evaluated based on operating income.

Segment information is as follows:

	Three Months Ended					Nine Months Ended
	September 28, 2013			September 29, 2012		September 28, 2013		September 29, 2012
Net sales:
Carpet segment	$	772,751		751,787		2,238,953		2,186,160
Ceramic segment	767,005			417,533		1,939,054		1,214,746
Laminate and Wood segment	450,723			328,582		1,326,178		1,020,380
Intersegment sales	(28,943		)	(24,409	)	(79,535	)	(68,965	)
	$	1,961,536		1,473,493		5,424,650		4,352,321
Operating income (loss):
Carpet segment	$	68,836		43,810		148,936		106,228
Ceramic segment	75,908			37,452		152,188		99,912
Laminate and Wood segment	39,020			28,892		119,075		96,613
Corporate and intersegment eliminations	(7,861		)	(6,200	)	(24,256	)	(19,105	)
	$	175,903		103,954		395,943		283,648

	September 28, 2013		December 31, 2012
Assets:
Carpet segment	$	1,830,869	1,721,214
Ceramic segment	3,820,002		1,731,258
Laminate and Wood segment	2,721,707		2,672,389
Corporate and intersegment eliminations	191,579		178,823
	$	8,564,157	6,303,684