MOHAWK INDUSTRIES INCMHK
MOHAWK INDUSTRIES INC Leases Disclosure
Leases
The Company has operating and finance leases for service centers, warehouses, showrooms, and machinery and equipment. Certain of the Company’s leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of the Company’s leases contain residual value guarantees and none of the Company’s agreements contain material restrictive covenants.
The Company rents or subleases certain real estate to third parties. The Company’s 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 costs: | |||||||||||||||||
| Amortization of leased assets | $ | 20.6 | — | 20.6 | |||||||||||||
| Interest on lease liabilities | — | 3.1 | 3.1 | ||||||||||||||
| Total finance lease costs | $ | 20.6 | 3.1 | 23.7 | |||||||||||||
| Total lease costs | $ | 240.1 | |||||||||||||||
| December 31, 2023 | Cost of Goods Sold | Selling, General and Administrative Expenses | Total | ||||||||||||||
| Operating lease costs: | |||||||||||||||||
| Fixed | $ | 30.0 | 109.7 | 139.7 | |||||||||||||
| Short-term | 15.4 | 20.2 | 35.6 | ||||||||||||||
| Variable | 9.7 | 35.8 | 45.5 | ||||||||||||||
| Sub-leases | (0.7) | (1.5) | (2.2) | ||||||||||||||
| Total operating lease costs | $ | 54.4 | 164.2 | 218.6 | |||||||||||||
| Depreciation and Amortization | Interest | Total | |||||||||||||||
| Finance lease costs: | |||||||||||||||||
| Amortization of leased assets | $ | 15.4 | — | 15.4 | |||||||||||||
| Interest on lease liabilities | — | 1.9 | 1.9 | ||||||||||||||
| Total finance lease costs | $ | 15.4 | 1.9 | 17.3 | |||||||||||||
| Total lease costs | $ | 235.9 | |||||||||||||||
Supplemental balance sheet information related to leases is as follows:
| (In millions) | Classification | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Assets | |||||||||||||||||
| Operating Leases: | |||||||||||||||||
| ROU operating lease assets | ROU operating lease assets | $ | 408.7 | 374.0 | |||||||||||||
| Finance Leases: | |||||||||||||||||
| Property, plant and equipment, gross | Property, plant and equipment | 170.0 | 141.4 | ||||||||||||||
| Accumulated depreciation | Accumulated depreciation | (88.7) | (59.7) | ||||||||||||||
| Property, plant and equipment, net | 81.3 | 81.7 | |||||||||||||||
| Total lease assets | $ | 490.0 | 455.7 | ||||||||||||||
| Liabilities | |||||||||||||||||
| Operating Leases: | |||||||||||||||||
| Other current | Current operating lease liabilities | $ | 122.4 | 108.5 | |||||||||||||
| Non-current | Non-current operating lease liabilities | 304.4 | 283.0 | ||||||||||||||
| Total operating liabilities | 426.8 | 391.5 | |||||||||||||||
| Finance Leases: | |||||||||||||||||
| Short-term debt and current portion of long-term debt | 22.7 | 20.4 | |||||||||||||||
| Long-term debt, less current portion | 60.1 | 61.8 | |||||||||||||||
| Total finance liabilities | 82.8 | 82.2 | |||||||||||||||
| Total lease liabilities | $ | 509.6 | 473.7 | ||||||||||||||
Maturities of lease liabilities as of December 31, 2025, are as follows:
| (In millions) | |||||||||||||||||
Year Ending December 31, | Finance Leases | Operating Leases | Total | ||||||||||||||
| 2026 | $ | 25.6 | 151.7 | 177.3 | |||||||||||||
| 2027 | 21.8 | 117.9 | 139.7 | ||||||||||||||
| 2028 | 17.0 | 85.1 | 102.1 | ||||||||||||||
| 2029 | 11.0 | 49.3 | 60.3 | ||||||||||||||
| 2030 | 5.9 | 32.8 | 38.7 | ||||||||||||||
| Thereafter | 9.2 | 49.1 | 58.3 | ||||||||||||||
| Total lease payments | 90.5 | 485.9 | 576.4 | ||||||||||||||
| Less: imputed interest | 7.7 | 59.1 | 66.8 | ||||||||||||||
| Present value, Total | $ | 82.8 | 426.8 | 509.6 | |||||||||||||
The Company had approximately $2.9 million of leases that commenced after December 31, 2025, that created rights and obligations to the Company. These leases are not included in the above maturity schedule.
Lease term and discount rate are as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted Average Remaining Lease Term: | |||||||||||
| Operating Leases | 4.5 years | 4.3 years | |||||||||
| Finance Leases | 4.7 years | 5.0 years | |||||||||
| Weighted Average Discount Rate: | |||||||||||
| Operating Leases | 5.9 | % | 5.2 | % | |||||||
| Finance Leases | 3.7 | % | 3.7 | % | |||||||
Supplemental cash flow information related to leases was as follows:
| Twelve Months Ended | |||||||||||||||||
| (In millions) | December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||
| Cash paid for amounts included in measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 149.2 | 142.3 | 135.2 | |||||||||||||
| Operating cash flows from finance leases | 3.2 | 3.1 | 2.0 | ||||||||||||||
| Financing cash flows from finance leases | 22.9 | 19.8 | 14.6 | ||||||||||||||
| ROU assets obtained in exchange for lease obligations: | |||||||||||||||||
| Operating leases | 148.9 | 77.7 | 160.8 | ||||||||||||||
| Finance leases | 16.7 | 29.5 | 31.6 | ||||||||||||||
| Amortization: | |||||||||||||||||
Amortization of ROU operating lease assets (1) | 126.7 | 121.6 | 120.4 | ||||||||||||||
(1) Amortization of ROU operating lease assets during the period is reflected in Other assets and prepaid expenses on the Consolidated Statements of Cash Flows.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.