For more information, contact:
Mohawk Industries, Inc.
160 South Industrial Boulevard
Calhoun, Georgia 30703
www.mohawkind.com
(706) 624-2246

For more information about Mohawk's products, visit our websites:

What We Value

2015 Annual Report

line

What We Value

Profitable Growth
Sustainable Growth

Enterprise Value* 1992–2015 (in millions)

Over the past two decades, Mohawk Industries has grown exponentially through 34 acquisitions and continuous re-investment in the business. Today, Mohawk is the world’s largest flooring company with a comprehensive product portfolio, manufacturing operations in 15 countries and sales in 140 countries. That commitment to profitable, sustainable growth reflects what Mohawk values and illustrates how the Company delivered its strongest performance ever in 2015.



* Enterprise Value equals year-end stock price times the number of oustanding shares plus net debt.
2015 Performance

During 2015, Mohawk realigned its reporting segments into a structure that reflects the Company’s increasingly international footprint and its comprehensive product offering.

Global
Ceramic

Sales of ceramic tile, stone floors and stone countertops in all worldwide markets.

Flooring
North America

Sales of carpet, rugs, laminate, sheet vinyl, luxury vinyl tile and wood flooring in the North American market.

Flooring
Rest of World

Sales of laminate, sheet vinyl, luxury vinyl tile, wood and boards in all markets outside North America.

2015 Performance

2015 Performance Summary

In 2015, Mohawk delivered record annual sales of $8.1 billion, growing approximately 10% on a constant exchange rate basis, and achieved record adjusted earnings per share of $10.20. Our adjusted operating income exceeded $1 billion and improved 26% compared to 2014. With a constant U.S. dollar, 2015 net sales would have been $490 million higher — an impact of approximately 6% — and operating income would have been $74 million greater — an impact of 9%. Mohawk’s strong 2015 performance was the result of an aggressive growth strategy that the Company began in 2013. Since 2013, Mohawk has invested almost $5 billion, approximately $3.5 billion in nine acquisitions and approximately $1.5 billion in capital expenditures to create innovative products, enhance efficiencies and expand capacities.

Global
Ceramic

  • On a constant exchange rate basis, segment sales grew 8% and adjusted operating income rose 27% versus prior year with adjusted operating margin 200 basis points higher
  • Increased U.S. sales investments to improve our market position by increasing service centers, expanding sales personnel and upgrading distribution partners
  • Re-aligned U.S. plants and production lines to specialize in different products, thereby optimizing productivity and service
  • Delivered double-digit sales growth in Mexico by enhancing product offering and increasing customer base; purchased only ceramic plant on west coast of North America
  • Continued modernization of Marazzi facilities in Italy: first phase completed; second phase to be implemented by mid-2016; and final phase to commence by end of 2016
  • Acquired the ceramic leader in Bulgaria and Romania and increased market share in Russia almost 20%

Flooring
North America

  • Segment sales grew 5% and adjusted operating income rose 34% versus prior year with adjusted operating margin 260 basis points higher
  • Extended leadership in premium carpet category with SmartStrand® Forever Clean, increased distribution of luxury Karastan® brand and expanded rug position with proprietary fibers and products
  • Completed consolidation of 10 carpet plants and warehouses as well as several production lines to enhance cost, quality and service levels
  • Successfully integrated IVC U.S. sheet vinyl and luxury vinyl tile (LVT) acquisition and commenced operations at world’s largest and most technologically advanced LVT plant

Flooring
Rest of World

  • On a constant exchange rate basis, segment sales grew 25% and adjusted operating income rose 50% versus prior year with adjusted operating margin 270 basis points higher
  • Reorganized segment after completing IVC Europe sheet vinyl and LVT acquisition to optimize all flooring categories by leveraging expertise
  • New LVT plant in Belgium operating effectively; increasing capacity by 50% by mid-2016
  • Introduced Impressive, groundbreaking laminate collection with unsurpassed embossed surface and water resistance
  • Leveraged investments in Czech wood plant to grow market share in Europe with plans to further expand
  • Insulation panel business delivered record sales and extended geographic footprint with the acquisition of three new plants

Net Sales (in millions)

7100 8562

Adjusted Operating Income** (in millions)

500 1100

Adjusted EBITDA (in millions) /
Percentage of Net Sales**


Adjusted Diluted EPS**

Sales Mix

By Segment

pie1
  • 45% Flooring North America
  • 37% Global Ceramic
  • 18% FLooring Rest of World

By Geography

pie2
  • 72% North America
  • 19% Western Europe
  •   3% Russia
  •   6% Rest of World

By End Market

pie3
  • 80% Residential
  • 20% Commercial
  * 2015 Net Sales and Adjusted Operating Income on a constant exchange rate basis
 ** See Non-GAAP Reconciliation
Chairman's Q&A

WHAT WE VALUE

A Culture of Growth

A Conversation with Jeff Lorberbaum

What is the state of Mohawk’s business today?

Our business has evolved significantly over the past two decades. Today, in addition to being the world’s largest flooring company, we’re the world’s largest ceramic tile manufacturer. Ceramic sales constitute the largest percentage of our business, and we’re enhancing our ceramic position by increasing capacity and upgrading assets. We are a comprehensive flooring provider with leading positions in major markets around the world, and we are committed to aggressively growing our business.

What is the most significant growth opportunity for the world’s largest flooring company today?

The organization and infrastructure we’ve created provide us with unique category knowledge. We’ve shown that we can apply that knowledge to products and geographies related to our existing ones. That combination presents us with broad opportunities to continue growing the business both through acquisition and internal investment. For example, we applied our knowledge of the ceramics category to our KAI acquisition in Bulgaria, which will give us a foothold for future ceramic expansion into Eastern Europe while KAI’s low-cost manufacturing position will support our other existing markets.

How do you identify markets for growth?

Every market in the world could be an opportunity for growth. Where we have an existing business, we have the potential to leverage our knowledge, infrastructure and customer relationships to expand further and enter other flooring product categories. In markets where we do not participate, we prefer to acquire an established company, although we have also built businesses from the ground up. We tend to stay away from markets where we can’t compete on an equal basis due to competitive, political or legal reasons.

What is the most important consideration when expanding in a given market?

We must have a strong management group in place to drive our strategy in that market. When we have a strong team already, we can expand on our own. When we don’t, such as in a new geographic market or product category, then we look for a business with a management team that can serve as a foundation for future growth. We’ve passed on good businesses because we didn’t believe the current management team would stay with us. We don’t need to pay a premium for equipment. We know how to buy equipment. It’s the organization, people and relationships that we invest in.

How do you evaluate potential investments?

All of our investments go through a disciplined ROI evaluation. Our return expectations go up or down depending on the amount of risk associated with the investment. For internal investments and acquisitions, we try to think in five- and 10- and 15-year periods so that we’re anticipating manufacturing advances and taking into consideration business cycles. A longer range outlook also aligns with the life of most assets in our category. You have to make sure those assets will remain competitive over time and do not become obsolete.

Do you rely more on acquisitions or internal investments to drive growth?

It’s a balanced approach. During the past three years, we have acquired nine companies in 12 countries. Subsequently, we have invested in those acquisitions to enhance performance and improve future results. Our growth from acquisitions is complemented by organic growth in our core businesses, which requires ongoing investment to expand capacity, improve productivity and facilitate product innovation. Since 2013, we have invested approximately $1.5 billion in capital expenditures, which has impacted our top and bottom line growth.

What have been your major areas of internal investment?

Last year, we invested about $500 million, which included the construction of a large porcelain plant in Tennessee that will increase our capacity to produce higher-value products. We’ve expanded our fiber manufacturing assets to differentiate our recycled polyester carpet and support continued growth. We built an LVT plant in Europe to expand our participation in the fastest-growing flooring category, and we purchased the IVC Group, acquiring state-of-the-art LVT facilities, as well as one of the best management teams in the category. We significantly upgraded the core manufacturing assets in our Italian ceramic and European panel businesses.

In 2016, we plan to further invest more than $600 million in our ceramic, LVT and engineered wood capacity, in advanced processes for our carpet and laminate businesses and in additional technologies to improve our efficiencies and product innovation.

Is product innovation a high priority for your investments?

Our long history of innovation extends to all of our product categories and is one of the hallmarks of our business. We have invested significantly in manufacturing technology to create the most beautiful products in the market, including industry-leading visuals in ceramic, laminate, LVT and sheet vinyl, as well as proprietary fiber technology that led to the introduction of super soft carpets with superior stain resistance. We continue to push the limits for performance and ease of installation to differentiate our products in the marketplace, including water-resistant laminate and durable LVT.

Is this why your product mix is typically better than the industry average?

In every product category, we focus on bringing unique features and benefits to the market to provide value to the consumer. Our luxury and high-end product introductions have been very successful. However, we offer differentiated products that appeal to consumers at every price point. To do that, we complement our position as the industry’s innovation leader with investments in advanced manufacturing technology that improve our productivity and efficiency, increasing line speeds, better utilizing raw materials and enhancing the quality of our products.

How do you identify acquisitions?

Multiple ways. In some instances, we start with a geographic market where we want to participate and research the existing participants to identify an established company we could purchase as an entree into that market. In other cases, we want to expand our position in an existing market and look for a company that complements our business. We also find companies with strategies that we like and unique expertise, such as IVC with their innovative leadership in the LVT and sheet vinyl categories. And, we don’t rely solely on acquisitions. We also build greenfield projects using our internal expertise and support those projects with skilled local management when appropriate.

Do you have a management model that you deploy for newly acquired companies?

We don’t use a single template for anything. We don’t try to make well-run companies look like us. The companies that are successful have a strategy that works and have developed a proposition their customers like. We want to enhance that proposition, not change it.

How do you evaluate management teams?

Our due diligence process enables us to evaluate a management team’s strategies and their execution. Because we are evaluating businesses similar to our own, we have a very strong understanding of how they should operate. We know, for example, how a company must adapt to a changing, competitive environment, so we look at how the management team previously handled those situations. Our own past demonstrates this very well. When we’ve bought strong businesses, the management team at the time of the purchase is still leading the business today. When we’ve bought weaker businesses in need of a turnaround, we’ve brought in different management teams to dramatically change the strategy.

Why is a decentralized management approach so important to Mohawk?

We intentionally have a very limited corporate structure. We don’t want a corporate bureaucracy that’s driving average solutions across the enterprise. Instead, we want the management closest to the market driving strategies and decisions. This organizational structure — strong local management teams driving growth in different product categories — allows us to take on multiple investments at the same time. Typically, each team handles only one at a time, but, with a decentralized approach, multiple teams can manage their individual projects simultaneously. This gives us the capacity to concurrently drive many opportunities so we can grow faster, without the management constraints that limit most other companies.

How do you drive synergies and share best practices across this decentralized organization?

We purposefully give up some synergies across the business because having more flexibility to adapt to local markets helps us satisfy our customers better and react faster to local challenges. But, we still realize a great deal of synergistic opportunities. Our corporate management group may be small, but we understand the details and strategies of each individual business. We have a strong planning structure in place where we identify hundreds of opportunities and decide which ones to execute. We also identify individuals who are experts in their functional areas within a business to lead best practices across the entire enterprise.

How have your new reporting segments benefited the business?

As I mentioned, our business has changed a great deal during the past 20 years. We’ve transformed Mohawk from a niche carpet business to an international flooring giant. As we’ve grown, we’ve had to continually evolve our structure to optimize the business. With the latest round of acquisitions, it became evident that to capitalize on all products within a geography our historical structure of running the business by product categories across the world would not optimize synergies between businesses, such as leveraging customer relationships or logistics systems. To better achieve those synergies, we needed to organize more geographically.

Mohawk now has a brand portfolio of businesses and more than 34,000 employees around the world. How do you ensure that the entire organization is focused on achieving enterprise growth?

We have well-defined strategies that provide focus for our organization. We have aggressive leaders who enjoy what they do. We give them resources to execute their strategies, and then we encourage them from the top down. Though we are decentralized, everyone understands that we’re all here as part of a single corporation. We have to help each other achieve the Company’s goals. When there’s a conflict the answer is always easy: Whatever creates the most value for Mohawk for the long term is always the right answer.

What We Value

What We Value

Synergy

Local Market
Knowledge

Entrepreneurship

Best Practices

Innovation

Synergy

Mohawk Industries has been built largely on the process of bringing together assets and expertise to drive faster growth. It’s a dynamic that plays effectively across both our legacy businesses and recently acquired ones.

*Based on estimated free cash flow from operations
  and debt capacity and investment-grade status

During the past year, we have optimized synergies among our businesses by organizing them on a geographic basis as opposed to product categories. Our new Flooring North America segment, for example, combines our carpet business with wood, laminate and vinyl flooring manufactured in the United States.

This combination enables our hard surface products to benefit from the extensive world-class infrastructure that our carpet business has built over several decades — transportation and logistics, sales and marketing operations and, most importantly, customer relationships. The result has been a higher growth rate with increased profitability for our hard surface products in North America since the reorganization.

Our hard surface categories in North America also are benefiting from our 2013 acquisition of Pergo. We’re leveraging our Pergo brand, one of the best known in flooring, into new product categories, such as wood and luxury vinyl tile, to further expand our hard surface penetration in the specialty retail channel.

Pergo is just one of many acquisition strategies that have included synergistic opportunities for one of our existing businesses. Our Global Ceramic segment enjoys a commanding market leadership in North America, and our 2013 acquisition of Marazzi has brought a twofold opportunity for that market based on enhanced scale.

First, in North America, the combination of Dal-Tile and Marazzi has provided us with enough volume of higher-end ceramic products to justify investment in constructing a new manufacturing facility in Tennessee. This new facility will provide additional production capacity, as well as technical capabilities to manufacture larger-format ceramic and porcelain tiles with more advanced aesthetic features.

A second benefit of the Marazzi acquisition has been new distribution opportunities for our American Olean brand. Marazzi and American Olean have product lines that complement one another and that are sold through independent distributors. In major markets where we have not had a strong independent distributor, primarily on the West Coast, we’ve combined the two brands to generate enough volume to support our own sales service centers. The 17 centers open to date will provide us an entirely new growth engine for both brands moving forward as they gain share in markets where we previously did not have a strong distribution channel.

Local Market Knowledge

Mohawk’s management philosophy has long been characterized by a decentralized approach that ensures our businesses are run by those closest to the market in which they operate. It’s an approach that is serving us well, in particular, as we expand into flooring markets around the world.

Mexico offers a case in point. With a smaller share than in the U.S., Dal-Tile is well-positioned to capitalize on a fast-growing ceramic market in Mexico. The brand’s presence there dates back to 1955 when Dal-Tile built a plant in Monterrey. The plant’s primary purpose was to supply the U.S. market, with a secondary intent to supply the north of Mexico.

In the mid-1990s, Dal-Tile ceased distribution in Mexico in order to ship more product to the U.S. where supply was constrained. More than a decade later, when the U.S. housing market entered a severe downturn, the situation reversed as we enhanced distribution in Mexico to absorb excess U.S. product. Thanks to a well-established local management team, we were able to capitalize on longstanding customer relationships and a well-recognized brand to quickly ramp up sales. We have been growing in Mexico ever since.

Three years ago, our management team constructed a new plant near Mexico City, Mexico’s largest market, and dramatically increased our business. Those investments in Mexico support our long-term commitment to that growing market. Today, with our strong sales growth in Mexico, the highly efficient plant is operating at capacity, and we will expand the facility to meet increased demand. This past year, we further leveraged our market knowledge to acquire a manufacturing facility in Mexicali, Mexico — the only ceramic plant on the west coast of North America. Thanks to Dal-Tile’s customer base in the western U.S., we’ve been able to bring enough volume to the plant to greatly enhance its competitiveness and profitability.

“Three years ago, our management team constructed a
new plant near Mexico City, Mexico’s largest market,
and dramatically increased our business.”

Our strategy is to replicate this local management approach as we seek to establish footholds in regions around the world. In the Pacific region, we entered Australia several years ago through the purchase of a wood distribution business with a strong management team in place. Since then, this team has switched previously third-party sourced product for wood supplied by our plant in Malaysia and laminate and vinyl supplied by our plants in Europe. This team also has expanded its management responsibilities to include New Zealand, where we acquired a hard surface distribution business in early 2015.

During 2015, we entered the Eastern European ceramic market through the purchase of KAI, the leading supplier in the Bulgarian and Romanian markets. With a strong local management team in place, we are providing KAI with the resources necessary to strengthen its capabilities and begin expanding into adjacent markets in the region.

Entrepreneurship

Strong management teams usually translate into strong growth vehicles for Mohawk. When we pursue an acquisition, we’re investing in the talent, innovative ideas and customer relationships that can drive long-term growth. Our approach is to build advantages while providing them with the resources and new ideas to optimize the results of their business.

Our 2015 acquisition of IVC is a case in point. IVC, headquartered in Belgium, is among the foremost producers in the world of vinyl flooring, commanding the number-one share of the European residential sheet vinyl and luxury vinyl tile, or LVT, markets and the number-two position in the North American sheet vinyl market. LVT represents the fastest-growing flooring category today, thanks to its realistic visuals, moisture resistance, sound suppression and simple installation.

Two years ago, our participation in the vinyl category was limited to third-party sourced product. Since then, we’ve invested in new state-of-the-art LVT plants in Belgium and the United States and acquired the expertise of IVC, whose management brings world-class knowledge of LVT product innovation and efficient manufacturing. With IVC, Mohawk gains instant leadership in flooring’s fastest-growing category, while IVC gains a well-developed distribution network and customer relationships in both North America and Europe.

From a management perspective, our priority has been to provide the IVC team with the resources necessary to realize the growth potential of the LVT category, while effectively integrating their products into our hard surfaces sales and marketing organizations.

Best Practices

One of our greatest strengths as an organization is managing our businesses on a decentralized basis while also capitalizing on the scale and shared expertise of the enterprise. This requires maintaining the flexibility to optimize performance in local markets as well as constantly identifying opportunities where success can be transferred from one business unit to another.

Although this dynamic occurs throughout the Company, it is perhaps most pronounced in our global ceramic business. Today, this segment’s operations span from the U.S. and Mexico to Western Europe, Eastern Europe and Russia. Strategies vary among markets, but good ideas are a common denominator. When we acquired Marazzi, for example, they had a unique business model in Russia where they manufactured their own product and controlled distribution through their own retail stores. We were able to bring in experts from the U.S., where a more mature ceramic business has evolved over the past several decades, to share best practices in supply chain, transportation and back-office retail operations. Conversely, Marazzi Russia was able to share their expertise in advertising and merchandising with their counterparts in our other ceramic markets, while Marazzi Italy has provided design and technical expertise across our Global Ceramic segment.

Sharing best practices does not always involve spanning oceans. Within the U.S., our carpet operations have developed expertise in domestic logistics, having managed a best-in-class network of warehouse and transportation assets for years. On the other hand, Dal-Tile’s global reach has provided them with knowledge in the area of overseas container shipping. As a result, both businesses routinely assist one another with the transportation needs of their respective products.

Finally, best practices and ideas are shared on an ongoing basis through the leadership of designated experts in the Company in areas such as innovation, production or logistics. Using a variety of communication forums, from intranet sites to annual gatherings, these experts bring together functional areas from across the Company to ask, “What’s working well in your business?” and then listening and learning from each other.

Innovation

New technologies. New products. New value. That’s an algorithm in continual play throughout Mohawk as we innovate to differentiate our products in the marketplace. Like other functions within the Company, the innovation process is one that is managed on a decentralized basis, while capitalizing on the shared knowledge and expertise among our business units.

A great example can be found in our carpet business. Within the past few years, we have responded to the market’s shift toward polyester fibers through our proprietary Continuum technology, which yields a softer, higher-performance polyester fiber. Recently, we’ve leveraged that technology to reinvigorate the area rug category with the introduction of polyester collections, which deliver a deeper and richer look while providing exceptional durability. The result has been solid growth for Mohawk with improved product mix.

The past year also has seen a host of new innovations in our ceramic business, led by the debut of three-dimensional wall tiles. This technology enables an appealing visual effect of depth and pattern in a cost-effective manner that adds dimension aligned with the color application. These tiles build on an innovation trend in ceramics of re-creating unique and authentic visuals through our proprietary Reveal Imaging printing technology, previously used in ceramic tile planks that mimic wooden planks. Another similar innovation is porcelain pavers that are decorated with a realistic limestone or travertine finish. Marketed by Dal-Tile in a line called Distinguished, these pavers provide the look of natural stone but with enhanced resilience to weather and staining.

Our laminate business in Europe continues to build on its historical reputation of category-leading development. The successful track record reflects a holistic approach to innovation that brings together the expertise of multiple functions involved in new product development, including design, production and intellectual property. This team has most recently developed a laminate product called Impressive that combines superior technical and visual features with new manufacturing processes to create an enhanced waterproof laminate product. Following its debut in Europe, this new technology has since been introduced in all of our laminate markets throughout the world.

Leadership

Board of Directors

  • Jeffrey S. Lorberbaum
    Chairman and Chief Executive Officer
  • Filip Balcaen
    President of Baltisse
  • Karen A. Smith Bogart (2)(3)
    President of Smith Bogart Consulting
  • Bruce C. Bruckmann (1)(3)
    Managing Director of Bruckmann, Rosser, Sherrill & Co., Inc.
  • Frans De Cock
    Former President of Unilin
  • John F. Fiedler (2)
    Former Chairman and Chief Executive Officer of Borg-Warner Automotive Inc.
  • Richard C. Ill (1)(3)
    Chairman of Triumph Group, Inc.
  • Joseph A. Onorato (1)(2)
    Former Chief Financial Officer of Echlin, Inc.
  • William H. Runge III (1)(2)
    Managing Director of Alvarez & Marsal
  • W. Christopher Wellborn
    President and Chief Operating Officer
  • (1)  Audit Committee
    (2)  Compensation Committee
    (3)  Nominating and Corporate Governance Committee

Senior Management Team

  • Jeffrey S. Lorberbaum
    Chairman and Chief Executive Officer
  • W. Christopher Wellborn
    President and Chief Operating Officer
  • Frank H. Boykin
    Chief Financial Officer
  • Brian M. Carson
    President of Flooring NA
  • Bernard Thiers
    President of Flooring ROW
  • John C. Turner, Jr.
    President of Ceramic NA
  • R. David Patton
    Vice President of Business Strategy and General Counsel
    Chief Sustainability Officer
  • Phil Brown
    Senior Vice President of Human Resources
  • Jana Kanyadan
    Chief Information Officer

Shareholder Information

Corporate Headquarters

P.O. Box 12069
160 South Industrial Boulevard
Calhoun, Georgia 30703
(706) 624-2246

Independent Registered Public Accounting Firm

KPMG LLP
Atlanta, Georgia

Corporate Counsel

Alston & Bird LLP
Atlanta, Georgia

Transfer Agent and Registrar

American Stock Transfer and Trust Company
Corporate Trust Client Services
16633 N. Dallas Parkway, Suite 600
Addison, Texas 75001
(972) 588-1889

Publications

The Company’s Annual Report, Proxy Statement, Form 8-K, 10-K and 10-Q reports are available without charge and can be ordered via our stockholder communications service at (800) 625-7721 or via the Internet at www.mohawkind.com under Investor Information. Written requests should be sent to Deby Forbus at the Company’s headquarters address above.

Product Inquiries

For more information about Mohawk’s products, visit our websites:
www.mohawkflooring.com
www.daltile.com
www.ivcfloors.com
www.marazzi.it/en
www.pergo.com
www.unilin.com
us.quick-step.com

Investor/Analyst Contact

For additional information about Mohawk, please contact Frank H. Boykin at (706) 624-2695 or at the Company’s headquarters address.

Annual Meeting of Stockholders

The Annual Meeting of Stockholders of Mohawk Industries, Inc. will be held at the time and location specified in our Notice of Annual Meeting of Stockholders for 2016.

Common Stock Price Range

Mohawk’s common stock is traded on the New York Stock Exchange under the symbol MHK. The table below sets forth the high and low sales prices per share of the common stock as reported by the exchange, for each period indicated.

Mohawk Common Stock

2015 High Low
First Quarter $188.29 $151.15
Second Quarter 195.53 172.97
Third Quarter 212.16 174.49
Fourth Quarter 201.88 180.00
2014 High Low
First Quarter $155.48 $132.87
Second Quarter 143.50 128.54
Third Quarter 149.84 123.81
Fourth Quarter 158.58 120.37

Sustainability

Mohawk is recognized as a leader in sustainability and environmental stewardship, with a determined focus on responsible use of raw materials, recycling, waste management and water and energy conservation throughout its business and operations. To learn more, visit www.mohawksustainability.com.

Equal Opportunity

Mohawk is an Equal Opportunity/Affirmative Action employer committed to attracting a diverse pool of applicants and sustaining an inclusive workforce.

NYSE Affirmation Certifications

As a listed company with the New York Stock Exchange (“NYSE”), Mohawk is subject to certain Corporate Governance standards as required by the NYSE and/or the Securities and Exchange Commission (“SEC”). Among other requirements, Mohawk’s CEO, as required by Section 303A.12(a) of the NYSE Listing Company Manual, must certify to the NYSE each year whether or not he is aware of any violations by the Company of NYSE Corporate Governance listing standards as of the date of the certification. On June 22, 2015, Mohawk’s CEO Jeffrey S. Lorberbaum submitted such a certification to the NYSE which stated that he was not aware of any violation by Mohawk of the NYSE Corporate Governance listing standards.

The Company has filed the certifications of its Chief Executive Officer and Chief Financial Officer required by Section 302 of Sarbanes-Oxley Act of 2002 as an exhibit to the Company’s Form 10-K for the year ended December 31, 2015.

Stock Performance Graph

The following is a line graph comparing the yearly percentage change in the Company’s cumulative total stockholder returns with those of the Standard & Poor’s 500 Index and a group of peer issuers beginning on December 31, 2010 and ending on December 31, 2015.

The peer group includes the following companies: Armstrong World Industries, Inc.; Dixie Group, Inc.; Interface, Inc.; Leggett & Platt, Inc.; MASCO Corporation; and Stanley Black & Decker, Inc. Total return values were calculated based on cumulative total return, assuming the value of the investment in the Company’s Common Stock and in each index on December 31, 2010 was $100 and that all dividends were reinvested. The Company is not included in the peer group because management believes that, by excluding the Company, investors will have a more accurate view of the Company’s performance relative to peer companies.

0 50 100 150 200 250 300 350 PG SP500 MHK 2015 2014 2013 2012 2011 2010
  • Mohawk Industries, Inc.
  • S&P 500 Index — Total Returns
  • Peer Group