Economic Scale and Impact
Mohawk Industries closed one manufacturing facility in 2010. The Company acquired a minority interest in a joint venture that manufactures tile in the Chinese market. A comprehensive financial review of our business can be found in our 2010 10-K Filing with the Securities and Exchange Commission.
Financial Highlights
(In thousands, except per share data)
| Years Ended December 31, | 2010 | 2009 |
| Income statement data: | ||
| Net sales | $5,319,072 | $5,344,024 |
| Gross Profit | 1,402,600 | 1,232,230 |
| Adjusted operating income (a) | 327,325 | 300,741 |
| Adjusted earnings per share (a) | $2.51 | $2.24 |
| Balance sheet data: | ||
| Cash and cash equivalents | $382,171 | $531,458 |
| Receivables, net | 614,473 | 673,931 |
| Inventories | 1,007,503 | 892,981 |
| Total current assets | 2,248,613 | 2,359,000 |
| Property, plant and equipment, net | 1,687,124 | 1,791,412 |
| Goodwill and intangibles | 2,046,521 | 2,196,470 |
| Total assets (b) | $6,098,926 | $6,391,446 |
| Accounts payable and accrued expenses | $698,326 | $831,115 |
| Total current liabilities | 1,048,914 | 884,022 |
| Long-term debt (including current portion) | 1,653,582 | 1,854,479 |
| Total equity | 3,271,556 | 3,200,823 |
| Total liabilities and equity | $6,098,926 | $6,391,446 |
| Cash flow data: | ||
| Net cash provided by operating activities | $319,712 | $672,205 |
| Depreciation and amortization | 296,773 | 303,004 |
| Capital expenditures | 156,180 | 108,925 |
| Acquisitions | 79,917 | 5,924 |
| Working capital (c) | 1,199,699 | 1,474,978 |
| Changes in debt | $(200,804) | $(103,558) |
The year 2010 consolidated financial statements and management's discussion and analysis of financial condition and results of operations are provided in the Company's 2011 Proxy Statement under Appendix A.
(a) The non-GAAP measure "Adjusted Operating Income" is used to compare operating results. Management uses the information to review results excluding items that are not necessarily indicative of on-going results.
(b) In 2009, the Company recorded pre-tax charges related to: discontinued carpet tiles of $133,492, business restructurings of $61,725 and $61,794 related to unusually high raw material costs incurred in the latter part of 2008, flowing through cost of sales in the first quarter of 2009.
(c) Working capital defined as current assets less current liabilities.