UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2011
MOHAWK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
 	 	 	 	 	
Delaware	 	01-13697	 	52-1604305	
(State or Other	 	(Commission File	 	(IRS Employer	
Jurisdiction of	 	Number)	 	Identification No.)	
Incorporation)	 	 	 	 	

160 South Industrial Blvd., Calhoun, Georgia	 	30701	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code (706) 629-7721
 
(Former Name or Former Address, if Changed Since Last Report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):
o	 	Written communication pursuant to Rule 425 under Securities Act (17 CFR 230.425)	
 	 	 	
o	 	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 	 	 	
o	 	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act CFR 240.14d-2(b))	
 	 	 	
o	 	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act CFR 240.17R 240.13e-4(c))	

 

 
Item 2.02 Results of Operations and Financial Condition.
The following information, including the Exhibit attached hereto, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purpose of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On August 4, 2011, Mohawk Industries, Inc., issued a press release announcing its first quarter financial results. A copy of the press release is attached hereto and hereby incorporated by reference as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release dated August 4, 2011.

 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 	 	 	 	 	 	 	
 	 	 	 	Mohawk Industries, Inc.	 	 	
 	 	 	 	 	 	 	
Date: August 4, 2011	 	By:	 	/s/ James F. Brunk
  James F. Brunk	 	 	
 	 	 	 	V.P. & Corporate Controller	 	 	

 
INDEX TO EXHIBITS
Exhibit
99.1.       Press release dated August 4, 2011.

Exhibit 99.1
Mohawk Industries, Inc. Announces Second Quarter Earnings
CALHOUN, Ga., Aug. 4, 2011 /PRNewswire/ — Mohawk Industries, Inc. (NYSE: MHK) today announced 2011 second quarter net earnings of $61 million and diluted earnings per share (EPS) of $0.88. Excluding restructuring charges, net earnings were $66 million and EPS was $0.95. For the second quarter of 2010, the net earnings were $68 million and EPS was $0.95. Excluding non-recurring tax benefits, redemption premium on bonds and restructuring charges, net earnings and EPS were $53 million and $0.77 per share. Net sales for the second quarter of 2011 were $1.5 billion increasing 6% as reported and 3% with a constant exchange rate. Our cash position at the end of the quarter was $285 million and our net debt to adjusted EBITDA ratio was 2.1. A new five-year lower cost bank facility was executed in July to support future growth and investments.
For the six months ended July 2, 2011, net sales were $2.8 billion, an increase of approximately 3% as reported and 2% with a constant exchange rate. For the six-month period, net earnings and EPS were $84 million and $1.22, respectively. Excluding restructuring charges, net earnings were $95 million and EPS was $1.38. For the six months ended July 3, 2010, net earnings were $89 million and EPS was $1.24. Excluding unusual items in 2010, net earnings were $77 million and EPS was $1.12.
Commenting on the second quarter results, Jeffrey S. Lorberbaum, Chairman and CEO stated, “All of our businesses reported year over year sales growth and our operating margin improved to 7.3%, an increase of 50 basis points over last year excluding restructuring charges. This is our highest operating margin since 2008 as a result of continuing cost reductions, selling price increases and productivity gains throughout the enterprise. U.S. economic growth was lower than expected in the second quarter with the U.S. residential business remaining soft and the commercial business continuing to grow.”
Our Mohawk segment net sales grew about 1% with improving commercial sales offsetting soft residential sales. Excluding restructuring charges, operating margin was 80 basis points higher than last year as a result of reductions in SG&A costs, price increases and improved manufacturing productivity. We are performing in line with the industry with growth in commercial remodeling and lower residential activity. Our commercial business posted sales gains in both tile and broadloom products. The carpet price increase announced in February was fully implemented in the period and the second increase initiated in April will be completed during the third quarter. Our South Carolina extrusion expansion was completed, we consolidated a commercial carpet plant and we announced the closure of a yarn spinning plant. Continued emphasis on productivity improvements has yielded more efficient processes in our manufacturing and administrative areas allowing us to reduce personnel costs by an additional $10 million annually.
Our Dal-Tile segment net sales grew more than 4% this period with commercial sales growth exceeding residential. Sales in all of our channels grew over the prior year as we outperformed the overall market. Higher product prices and fuel surcharges were implemented in the period to recover rising transportation costs. Our market share has improved due to the breadth of our offerings, new products with enhanced visuals, larger sizes and our superior service. We introduced a completely merchandised ceramic tile shop and a new installation warranty to differentiate Dal-Tile products. Our Reveal Imaging technology is being expanded throughout our manufacturing operations. Our business in Mexico is expanding as we broaden our product line and satisfy all price points. The plant near Mexico City is being constructed to produce non-porcelain ceramic tile at much lower costs, beginning in mid-2012. New workforce management systems, increased truck utilization rates and new shipping channels are reducing our freight and distribution costs.
Our Unilin net sales increased approximately 18% as reported and 7% on a constant exchange rate. Sales of our European products were positive with growth in our roofing systems and panels outperforming our flooring products and impacting the mix of our margins. In most of our European

 
products, our price increases are beginning to catch up with the higher raw material costs. Our European flooring is gaining share in a challenging market by increasing our position in the European DIY channel and growing our presence in the UK, Russian and Australian markets. In the U.S., our Unilin flooring sales were impacted by low residential remodeling. Our wood sales continue to expand with an improved product mix and our wood plants have increased their productivity, yields and flexibility. We are growing our Russian customer base to support the new plant under construction near Moscow. In addition, the consolidation and expansion of our Malaysian wood manufacturing operations should be complete by first quarter 2012.
Our second quarter results were accomplished despite the weaker than expected economies in both the U.S. and Europe. During this challenging economic period, we have made many improvements throughout our business resulting in a leaner, more efficient organization. We are introducing innovative products and re-engineering existing ones to improve our sales mix and margins. We are continuing to reduce our cost structure, increase our productivity and invest in new products and geographies. We are increasing prices as needed in response to raw material and energy inflation. We are well positioned to leverage these changes into a more profitable business as residential remodeling and the economy improves. With these factors, our third quarter guidance for earnings is $0.82 to $0.91 per share, excluding any restructuring costs. Mohawk’s strategies reflect our evolution from a North American carpet business into a larger, more diverse, total flooring company operating in the global market.
Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of carpet, ceramic tile, laminate, wood, stone, vinyl, and rugs. These products are marketed under the premier brands in the industry, which include Mohawk, Karastan, Lees, Bigelow, Dal-Tile, American Olean, Unilin and Quick Step. Mohawk’s unique merchandising and marketing assist our customers in creating the consumers’ dream. Mohawk provides a premium level of service with its own trucking fleet and local distribution. Mohawk’s operational international presence includes China, Europe, Malaysia, Mexico and Russia.
Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words “could,” “should,” “believes,” “anticipates,” “expects,” and “estimates,” or similar expressions constitute “forward-looking statements.” For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. The following important factors could cause future results to differ: changes in economic or industry conditions; competition; inflation in raw material prices and other input costs; energy costs and supply; timing and level of capital expenditures; timing and implementation of price increases for the Company’s products; impairment charges; integration of acquisitions; international operations, introduction of new products; rationalization of operations; claims; litigation; and other risks identified in Mohawk’s SEC reports and public announcements.
There will be a conference call Friday, August 5, 2011 at 11:00 AM Eastern Time.
The telephone number to call is 1-800-603-9255 for US/Canada and 1-706-634-2294 for International/Local. Conference ID # 82606045. A conference call replay will also be available until August 19, 2011 by dialing 855-859-2056 for US/local calls and 404-537-3406 for International/Local calls and entering Conference ID # 82606045.

 
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Statement of Operations	 	Three Months Ended	 	Six Months Ended	
(Amounts in thousands, except per share data)	 	July 2, 2011	 	July 3, 2010	 	July 2, 2011	 	July 3, 2010	
Net sales	 	$	1,477,854	 	 	 	1,400,086	 	 	 	2,821,449	 	 	 	2,747,322	 	
Cost of sales	 	 	1,095,607	 	 	 	1,025,330	 	 	 	2,097,610	 	 	 	2,031,320	 	
 	 	 	
Gross profit	 	 	382,247	 	 	 	374,756	 	 	 	723,839	 	 	 	716,002	 	
Selling, general and administrative expenses	 	 	280,547	 	 	 	285,030	 	 	 	566,055	 	 	 	572,655	 	
 	 	 	
Operating income	 	 	101,700	 	 	 	89,726	 	 	 	157,784	 	 	 	143,347	 	
Interest expense	 	 	25,760	 	 	 	39,031	 	 	 	52,355	 	 	 	72,939	 	
Other (income) expense, net	 	 	396	 	 	 	544	 	 	 	381	 	 	 	(3,987	)	
 	 	 	
Earnings before income taxes	 	 	75,544	 	 	 	50,151	 	 	 	105,048	 	 	 	74,395	 	
Income tax expense (benefit)	 	 	13,450	 	 	 	(18,814	)	 	 	18,416	 	 	 	(15,840	)	
 	 	 	
Net earnings	 	 	62,094	 	 	 	68,965	 	 	 	86,632	 	 	 	90,235	 	
 	 	 	
Net earnings attributable to noncontrolling interest	 	 	(1,191	)	 	 	(884	)	 	 	(2,287	)	 	 	(1,616	)	
 	 	 	
Net earnings attributable to Mohawk Industries, Inc.	 	$	60,903	 	 	 	68,081	 	 	 	84,345	 	 	 	88,619	 	
 	 	 	
Basic earnings per share attributable to Mohawk Industries, Inc. (1)	 	$	0.89	 	 	 	0.95	 	 	 	1.23	 	 	 	1.25	 	
 	 	 	
Weighted-average common shares outstanding — basic	 	 	68,744	 	 	 	68,585	 	 	 	68,709	 	 	 	68,554	 	
 	 	 	
Diluted earnings per share attributable to Mohawk Industries, Inc. (1)	 	$	0.88	 	 	 	0.95	 	 	 	1.22	 	 	 	1.24	 	
 	 	 	
Weighted-average common shares outstanding — diluted	 	 	68,981	 	 	 	68,789	 	 	 	68,942	 	 	 	68,760	 	

(1)	 	Basic earnings per share attributable to Mohawk Industries, Inc. for the three and six months ended July 3, 2010, includes a decrease of approximately $0.04, and diluted earnings per share attributable to Mohawk Industries, Inc. for the three and six months ended July 3, 2010, includes a decrease of approximately $0.04 and $0.05, respectively, related to the change in fair value for a redeemable noncontrolling interest in a consolidated subsidiary of the Company.	
Other Financial Information
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	$	96,003	 	 	 	135,169	 	 	 	28,590	 	 	 	88,977	 	
 	 	 	
Depreciation and amortization	 	$	74,344	 	 	 	72,497	 	 	 	148,597	 	 	 	149,295	 	
 	 	 	
Capital expenditures	 	$	59,708	 	 	 	23,830	 	 	 	112,519	 	 	 	47,139	 	

 	 	 	 	 	 	 	 	 	
Consolidated Balance Sheet Data
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	
ASSETS	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	285,422	 	 	 	342,673	 	
Receivables, net	 	 	797,893	 	 	 	703,458	 	
Inventories	 	 	1,102,769	 	 	 	965,778	 	
Prepaid expenses and other current assets	 	 	125,815	 	 	 	137,338	 	
Deferred income taxes	 	 	135,338	 	 	 	135,613	 	
 	
Total current assets	 	 	2,447,237	 	 	 	2,284,860	 	
Property, plant and equipment, net	 	 	1,730,914	 	 	 	1,654,161	 	
Goodwill	 	 	1,418,830	 	 	 	1,340,003	 	
Intangible assets, net	 	 	681,178	 	 	 	686,156	 	
Deferred income taxes and other non-current assets	 	 	110,841	 	 	 	38,736	 	
 	
 	 	$	6,389,000	 	 	 	6,003,916	 	
 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Current portion of long-term debt	 	$	453,185	 	 	 	351,307	 	
Accounts payable and accrued expenses	 	 	771,297	 	 	 	808,909	 	
 	
Total current liabilities	 	 	1,224,482	 	 	 	1,160,216	 	
Long-term debt, less current portion	 	 	1,155,150	 	 	 	1,303,155	 	
Deferred income taxes and other long-term liabilities	 	 	460,109	 	 	 	431,355	 	
 	
Total liabilities	 	 	2,839,741	 	 	 	2,894,726	 	
 	
Noncontrolling interest	 	 	32,300	 	 	 	33,309	 	
 	
Total stockholders’ equity	 	 	3,516,959	 	 	 	3,075,881	 	
 	
 	 	$	6,389,000	 	 	 	6,003,916	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment Information	 	Three Months Ended	 	As of or for the Six Months Ended	
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	 	July 2, 2011	 	July 3, 2010	
Net sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mohawk	 	$	758,064	 	 	 	747,582	 	 	 	1,449,229	 	 	 	1,464,165	 	
Dal-Tile	 	 	379,469	 	 	 	363,618	 	 	 	723,884	 	 	 	705,014	 	
Unilin	 	 	363,097	 	 	 	308,385	 	 	 	688,929	 	 	 	614,265	 	
Intersegment sales	 	 	(22,776	)	 	 	(19,499	)	 	 	(40,593	)	 	 	(36,122	)	
 	 	 	
Consolidated net sales	 	$	1,477,854	 	 	 	1,400,086	 	 	 	2,821,449	 	 	 	2,747,322	 	
 	 	 	
Operating income (loss):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mohawk	 	$	31,201	 	 	 	26,345	 	 	 	48,241	 	 	 	42,973	 	
Dal-Tile	 	 	32,138	 	 	 	28,124	 	 	 	49,838	 	 	 	43,519	 	
Unilin	 	 	46,209	 	 	 	42,336	 	 	 	72,459	 	 	 	68,794	 	
Corporate and eliminations	 	 	(7,848	)	 	 	(7,079	)	 	 	(12,754	)	 	 	(11,939	)	
 	 	 	
Consolidated operating income	 	$	101,700	 	 	 	89,726	 	 	 	157,784	 	 	 	143,347	 	
 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mohawk	 	 	 	 	 	 	 	 	 	$	1,783,630	 	 	 	1,675,226	 	
Dal-Tile	 	 	 	 	 	 	 	 	 	 	1,700,482	 	 	 	1,570,238	 	
Unilin	 	 	 	 	 	 	 	 	 	 	2,717,032	 	 	 	2,423,695	 	
Corporate and eliminations	 	 	 	 	 	 	 	 	 	 	187,856	 	 	 	334,757	 	
 	 	 	
Consolidated assets	 	 	 	 	 	 	 	 	 	$	6,389,000	 	 	 	6,003,916	 	

 
Reconciliation of Net Earnings Attributable to Mohawk Industries, Inc. to Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted Diluted Earnings Per Share Attributable to Mohawk Industries, Inc.
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Six Months Ended	
(Amounts in thousands, except per share data)	 	July 2, 2011	 	July 3, 2010	 	July 2, 2011	 	July 3, 2010	
Net earnings attributable to Mohawk Industries, Inc.	 	$	60,903	 	 	 	68,081	 	 	 	84,345	 	 	 	88,619	 	
Unusual items:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business restructurings	 	 	6,514	 	 	 	4,929	 	 	 	13,327	 	 	 	8,933	 	
Debt extinguishment costs	 	 	—	 	 	 	7,514	 	 	 	—	 	 	 	7,514	 	
Discrete tax items, net	 	 	—	 	 	 	(24,407	)	 	 	—	 	 	 	(24,407	)	
Income taxes	 	 	(1,818	)	 	 	(3,290	)	 	 	(2,836	)	 	 	(3,759	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net earnings attributable to Mohawk Industries, Inc.	 	$	65,599	 	 	 	52,827	 	 	 	94,836	 	 	 	76,900	 	

Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. (1)	 	$	0.95	 	 	 	0.77	 	 	 	1.38	 	 	 	1.12	 	
Weighted-average common shares outstanding — diluted	 	 	68,981	 	 	 	68,789	 	 	 	68,942	 	 	 	68,760	 	

(1)	 	Diluted earnings per share attributable to Mohawk Industries, Inc. for the three and six months ended July 3, 2010, excludes approximately $0.04 and $0.05, respectively, related to the change in fair value for a redeemable noncontrolling interest in a consolidated subsidiary of the Company.	

Reconciliation of Total Debt to Net Debt
(Amounts in thousands)	 	July 2, 2011	
 	
Current portion of long-term debt	 	$	453,185	 	
Long-term debt, less current portion	 	 	1,155,150	 	
Less: Cash and cash equivalents	 	 	285,422	 	
 	
Net Debt	 	$	1,322,913	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Trailing Twelve	
Reconciliation of Operating Income to Adjusted EBITDA	Three Months Ended	 	Months Ended	
(Amounts in thousands)	 	October 2, 2010	 	December 31, 2010	 	April 2, 2011	 	July 2, 2011	 	July 2, 2011	
 	
Operating income	 	$	85,182	 	 	 	85,640	 	 	 	56,084	 	 	 	101,700	 	 	 	328,606	 	
Other income (expense)	 	 	(1,124	)	 	 	1,037	 	 	 	(15	)	 	 	396	 	 	 	294	 	
U.S. customs refund	 	 	5,765	 	 	 	1,965	 	 	 	—	 	 	 	—	 	 	 	7,730	 	
Net earnings attributable to noncontrolling interest	 	 	(1,170	)	 	 	(1,678	)	 	 	(1,096	)	 	 	(1,191	)	 	 	(5,135	)	
Depreciation and amortization	 	 	72,956	 	 	 	74,522	 	 	 	74,253	 	 	 	74,344	 	 	 	296,075	 	
 	
EBITDA	 	 	161,609	 	 	 	161,486	 	 	 	129,226	 	 	 	175,249	 	 	 	627,570	 	
Business restructurings	 	 	3,330	 	 	 	—	 	 	 	6,813	 	 	 	6,514	 	 	 	16,657	 	
 	
Adjusted EBITDA	 	$	164,939	 	 	 	161,486	 	 	 	136,039	 	 	 	181,763	 	 	 	644,227	 	

 	
Net Debt to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2.1	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Net Sales to Adjusted Net Sales	 	Three Months Ended	 	Six Months Ended	
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	 	July 2, 2011	 	July 3, 2010	
Net sales	 	$	1,477,854	 	 	 	1,400,086	 	 	 	2,821,449	 	 	 	2,747,322	 	
Adjustments to net sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exchange rate	 	 	(35,604	)	 	 	—	 	 	 	(33,285	)	 	 	—	 	
 	 	 	
Adjusted net sales	 	$	1,442,250	 	 	 	1,400,086	 	 	 	2,788,164	 	 	 	2,747,322	 	

 	 	 	 	 	 	 	 	 	
Reconciliation of Segment Net Sales to Adjusted Segment Net Sales
(Amounts in thousands)	 	Three Months Ended	
Unilin segment	 	July 2, 2011	 	July 3, 2010	
 	
Net sales	 	$	363,097	 	 	 	308,385	 	
Adjustments to net sales:	 	 	 	 	 	 	 	 	
Exchange rate	 	 	(33,558	)	 	 	—	 	
 	
Adjusted net sales	 	$	329,539	 	 	 	308,385	 	

 
 	 	 	 	 	 	 	 	 	
Reconciliation of Operating Income to Adjusted Operating Income	 	Three Months Ended	
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	
 	
Operating income	 	$	101,700	 	 	 	89,726	 	
Adjustments to operating income:	 	 	 	 	 	 	 	 	
Business restructurings	 	 	6,514	 	 	 	4,929	 	
 	
Adjusted operating income	 	$	108,214	 	 	 	94,655	 	
 	
Adjusted operating margin as a percent of net sales	 	 	7.3	%	 	 	6.8	%	
 	 	 	 	 	 	 	 	 	
Mohawk segment	 	 	 	 	 	 	 	 	
 	
Operating income	 	$	31,201	 	 	 	26,345	 	
Adjustments to operating income:	 	 	 	 	 	 	 	 	
Business restructurings	 	 	6,514	 	 	 	4,929	 	
 	
Adjusted operating income	 	$	37,715	 	 	 	31,274	 	
 	
Adjusted operating margin as a percent of net sales	 	 	5.0	%	 	 	4.2	%	

Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes	 	Three Months Ended	
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	
 	
Earnings before income taxes	 	$	75,544	 	 	 	50,151	 	
Unusual items:	 	 	 	 	 	 	 	 	
Business restructurings	 	 	6,514	 	 	 	4,929	 	
Debt extinguishment costs	 	 	—	 	 	 	7,514	 	
 	
Adjusted earnings before income taxes	 	$	82,058	 	 	 	62,594	 	

 	 	 	 	 	 	 	 	 	
Reconciliation of Income Tax Expense (Benefit) to Adjusted Income Tax Expense	 	Three Months Ended	
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	
 	
Income tax expense (benefit)	 	$	13,450	 	 	 	(18,814	)	
Unusual items:	 	 	 	 	 	 	 	 	
Discrete tax items, net	 	 	—	 	 	 	24,407	 	
Income taxes	 	 	1,818	 	 	 	3,290	 	
 	
Adjusted income tax expense	 	$	15,268	 	 	 	8,883	 	

 	
Adjusted income tax rate	 	 	19	%	 	 	14	%	

 	 	 	 	 	 	 	 	 	
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses	 	Three Months Ended	
(Amounts in thousands)	 	July 2, 2011	 	July 3, 2010	
 	
Selling, general and administrative expenses	 	$	280,547	 	 	 	285,030	 	
Adjustments to selling, general and administrative expenses:	 	 	 	 	 	 	 	 	
Exchange rate	 	 	(5,821	)	 	 	—	 	
 	
Adjusted selling, general and administrative expenses	 	$	274,726	 	 	 	285,030	 	
 	
The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of the Company’s business for planning and forecasting in subsequent periods.
CONTACT: Frank H. Boykin, Chief Financial Officer, +1-706-624-2695