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): February 17, 2011
MOHAWK INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
 	 	 	 	 	
Delaware
(State or Other
Jurisdiction of
Incorporation)	 	01 13697
(Commission File
Number)	 	52-1604305
(IRS Employer
Identification No.)	

160 South Industrial Blvd., Calhoun, Georgia
(Address of Principal Executive Offices)	 	30701
(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 February 22, 2011, Mohawk Industries, Inc. (the “Company”), issued a press release announcing its fourth quarter financial results. A copy of the press release is attached hereto and hereby incorporated by reference as Exhibit 99.1.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On February 17, 2011, Mr. Robert N. Pokelwaldt notified the Board of Directors of the Company of his decision to retire and not stand for re-election as a director of the Company at the 2011 Annual Meeting of Stockholders to be held in May 2011. Mr. Pokelwaldt will continue to serve on the Board of Directors of the Company for the remainder of his current term.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 	 	 	 	 	
 	99.1	 	 	Press release dated February 22, 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: February 23, 2011 	By:  	/s/ JAMES F. BRUNK  	 	
 	 	James F. Brunk 	 	
 	 	V.P. & Corporate Controller 	 	

 
 	 	 	 	 	
INDEX TO EXHIBITS
 	 	 	 	 	
Exhibit	 	 	
 	99.1.	 	 	Press release dated February 22, 2011.	

Exhibit 99.1
Mohawk Industries, Inc. Announces Fourth Quarter Earnings
CALHOUN, Ga., Feb. 22, 2011 /PRNewswire via COMTEX/ —
Mohawk Industries, Inc. (NYSE: MHK) today announced 2010 fourth quarter net earnings of $46 million and diluted earnings per share (EPS) of $0.66. For the fourth quarter of 2009, the net earnings were $20 million and EPS was $0.29. Excluding unusual items, 2009 fourth quarter net earnings and EPS were $39 million and $0.56 per share. Net sales for the fourth quarter of 2010 were $1.3 billion which was a decrease of approximately 6% versus 2009. Net sales for the quarter increased 2% over the prior year on a constant days and exchange rate basis. For the full year of 2010, our net earnings were $185 million and EPS was $2.65. For the full year of 2009, our net loss was $5 million and loss per share was $0.08. Net sales for the full year of 2010 were $5.3 billion representing a slight decrease from 2009. On a constant exchange rate and excluding 2009 sales adjustments, net sales decreased 2%. Our cash position and liquidity remain strong with over $500 million available immediately after retiring $300 million of bonds in January 2011.
Commenting on the fourth quarter results, Jeffrey S. Lorberbaum, Chairman and CEO stated, “Our earnings exceeded our expectations as results were positively impacted by enhanced manufacturing efficiencies, benefits from restructuring actions, reducing SG&A costs and improved process consistency. Our operating margin of 6.8% continues to show improvement compared to last year despite rising raw material costs. During 2010, our emphasis on innovation, new products, manufacturing improvements and cost reduction have benefited our margins and increased earnings. Investments in the Russian, Chinese and Mexican flooring markets are expanding our international presence and will provide platforms for future revenue and profit growth. The consensus among economists is that these markets will outperform the more mature U.S. and Western European flooring markets. The U.S. industry decline experienced over the past few years appears to have bottomed with some markets showing signs of improvement.”
After adjusting for the lower number of days in the quarter, our Mohawk segment net sales decreased 3% but achieved the highest operating margin in two years despite increasing raw material costs. Manufacturing costs, material yields and process controls have improved from last year. Our market position, after adjusting for the number of days in the period, stabilized in the fourth quarter as we accelerated key introductions in new residential polyester carpets and commercial carpet tile products. We implemented a 7-10% carpet price increase in February to offset our raw material inflation. Sales of our commercial carpet tile continue to grow supported by a broader product offering and an expanded sales force. Improved planning and inventory processes have enhanced our service levels, reducing delivery time and costs.
Our Dal-Tile segment net sales declined 4% as reported but increased 4% after adjusting for the lower number of days this period and a constant exchange rate. In the fourth quarter, we began implementing a price increase of 1-2% to cover rising transportation costs. We have added sales personnel focusing on large commercial accounts and housing contractors to maximize participation in these improving markets. Dal-Tile is leading the industry with advances in decorating technologies created by our Reveal Imaging. We are introducing products that have greater distinction between individual tiles, stronger natural visuals and new textures. We are increasing our Mexican sales and customer base by expanding our product selection and sales force. Our joint venture in China is broadening its product offering, implementing new production technology and supplying tile to existing Mohawk markets. The investment in China will position us long term to take advantage of this growing market.

 
Our Unilin revenues were flat in the period as reported, but increased 14% after adjusting for the number of days in the period and the exchange rate. Our margins remain compressed as our material costs have continued to escalate. We implemented price increases in our board products in the fourth quarter and are executing additional price increases in boards, laminate and roofing in the first quarter to recover continued inflation and improve margins. Our laminate flooring business is increasing with Northern Europe, Russia and Asia out-performing. We are expanding our home center participation by leveraging our technology and styling leadership. The introduction of new furniture finishes and high definition technology continues to affirm our leadership in laminate technology. We are proceeding with construction of our Russian laminate plant and expanding our Malaysian wood manufacturing.
The economic recovery and stronger consumer spending will positively impact our industry in 2011. The seasonally slow first quarter is being affected by harsh weather and increasing raw material costs offsetting savings from our cost initiatives. The Chinese joint venture’s extended holiday shutdown will unfavorably impact our first quarter. The residential remodeling market should improve with increased consumer spending and higher home sales. Commercial remodeling is growing as businesses invest to maximize their operating results. For the balance of 2011, we anticipate an improvement in our results as price increases are implemented, volume expands and the recovery continues. With these factors, our first quarter guidance for earnings is $0.36 to $0.44 per share, excluding restructuring charges.
We remain committed to enhancing our organization to drive innovation in product, processes and costs. Advances in our marketing, product introductions, manufacturing efficiencies, and service should yield higher profitability. This year, a higher level of capital investments will improve productivity, support new product development and expand our global reach.
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.
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; raw material and energy costs; timing and level of capital expenditures; integration of acquisitions; rationalization of operations; claims; litigation and other risks identified in Mohawk’s SEC reports and public announcements.
There will be a conference call Wednesday, February 23, 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 # 38370453. A conference call replay will also be available until March 9, 2011 by dialing 800-642-1687 for US/local calls and 706-645-9291 for International/Local calls and entering Conference ID # 38370453.

 
MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Statement of Operations	 	Three Months Ended	 	Twelve Months Ended	
(Amounts in thousands, except per share data)	 	December 31, 2010	 	December 31, 2009	 	December 31, 2010	 	December 31, 2009	
Net sales	 	$	1,262,198	 	 	 	1,347,108	 	 	 	5,319,072	 	 	 	5,344,024	 	
Cost of sales	 	 	920,532	 	 	 	1,005,414	 	 	 	3,916,472	 	 	 	4,111,794	 	
 	
Gross profit	 	 	341,666	 	 	 	341,694	 	 	 	1,402,600	 	 	 	1,232,230	 	
Selling, general and administrative expenses	 	 	256,026	 	 	 	294,829	 	 	 	1,088,431	 	 	 	1,188,500	 	
 	
Operating income	 	 	85,640	 	 	 	46,865	 	 	 	314,169	 	 	 	43,730	 	
Interest expense	 	 	30,166	 	 	 	34,527	 	 	 	133,151	 	 	 	127,031	 	
Other (income) expense, net	 	 	(1,324	)	 	 	1,509	 	 	 	(7,166	)	 	 	(1,108	)	
 	 	 	
Earnings (loss) before income taxes	 	 	56,798	 	 	 	10,829	 	 	 	188,184	 	 	 	(82,193	)	
Income tax expense (benefit)	 	 	11,040	 	 	 	(8,950	)	 	 	2,713	 	 	 	(76,694	)	
 	 	 	
Net earnings (loss)	 	$	45,758	 	 	 	19,779	 	 	 	185,471	 	 	 	(5,499	)	
 	 	 	
Basic earnings (loss) per share (1)	 	$	0.67	 	 	 	0.29	 	 	 	2.66	 	 	 	(0.08	)	
 	 	 	
Weighted-average common shares outstanding — basic	 	 	68,612	 	 	 	68,472	 	 	 	68,578	 	 	 	68,452	 	
 	 	 	
Diluted earnings (loss) per share (1)	 	$	0.66	 	 	 	0.29	 	 	 	2.65	 	 	 	(0.08	)	
 	 	 	
Weighted-average common shares outstanding — diluted	 	 	68,843	 	 	 	68,682	 	 	 	68,784	 	 	 	68,452	 	

 	 	 	
(1)	 	Basic and diluted earnings per share for the twelve months ended December 31, 2010, includes a decrease of approximately $0.04 and $0.05, respectively, for an adjustment to the fair value of a redeemable noncontrolling interest in a consolidated subsidiary of the Company.	
Other Financial Information
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	$	109,318	 	 	 	259,611	 	 	 	319,712	 	 	 	672,205	 	
 	 	 	
Depreciation and amortization	 	$	74,522	 	 	 	81,827	 	 	 	296,773	 	 	 	303,004	 	
 	 	 	
Capital expenditures	 	$	69,940	 	 	 	37,644	 	 	 	156,180	 	 	 	108,925	 	
 	 	 	
Consolidated Balance Sheet Data
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	
 	 	December 31, 2010	 	 	December 31, 2009	 	
 	 	 	 	 	 	 	 	 	
ASSETS	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	354,217	 	 	 	531,458	 	
Restricted cash	 	 	27,954	 	 	 	—	 	
Receivables, net	 	 	614,473	 	 	 	673,931	 	
Inventories	 	 	1,007,503	 	 	 	892,981	 	
Prepaid expenses	 	 	91,731	 	 	 	108,947	 	
Deferred income taxes and other current assets	 	 	152,735	 	 	 	151,683	 	
 	
Total current assets	 	 	2,248,613	 	 	 	2,359,000	 	
Property, plant and equipment, net	 	 	1,687,124	 	 	 	1,791,412	 	
Goodwill	 	 	1,369,394	 	 	 	1,411,128	 	
Intangible assets, net	 	 	677,127	 	 	 	785,342	 	
Deferred income taxes and other non-current assets	 	 	116,668	 	 	 	44,564	 	
 	
 	 	$	6,098,926	 	 	 	6,391,446	 	
 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Current portion of long-term debt	 	$	350,588	 	 	 	52,907	 	
Accounts payable and accrued expenses	 	 	698,326	 	 	 	831,115	 	
 	
Total current liabilities	 	 	1,048,914	 	 	 	884,022	 	
Long-term debt, less current portion	 	 	1,302,994	 	 	 	1,801,572	 	
Deferred income taxes and other long-term liabilities	 	 	440,021	 	 	 	471,570	 	
 	
Total liabilities	 	 	2,791,929	 	 	 	3,157,164	 	
 	
Noncontrolling interest	 	 	35,441	 	 	 	33,459	 	
 	
Total stockholders’ equity	 	 	3,271,556	 	 	 	3,200,823	 	
 	
 	 	$	6,098,926	 	 	 	6,391,446	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment Information	 	As of or for the Three Months Ended	 	As of or for the Twelve Months Ended	
(Amounts in thousands)	 	December 31, 2010	 	December 31, 2009	 	December 31, 2010	 	December 31, 2009	
Net sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mohawk	 	$	667,230	 	 	 	738,716	 	 	 	2,844,876	 	 	 	2,856,741	 	
Dal-Tile	 	 	317,354	 	 	 	329,985	 	 	 	1,367,442	 	 	 	1,426,757	 	
Unilin	 	 	297,415	 	 	 	298,331	 	 	 	1,188,274	 	 	 	1,128,315	 	
Intersegment sales	 	 	(19,801	)	 	 	(19,924	)	 	 	(81,520	)	 	 	(67,789	)	
 	 	 	
Consolidated net sales	 	$	1,262,198	 	 	 	1,347,108	 	 	 	5,319,072	 	 	 	5,344,024	 	

Operating income (loss):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mohawk	 	$	48,804	 	 	 	16,269	 	 	 	122,904	 	 	 	(125,965	)	
Dal-Tile	 	 	19,902	 	 	 	11,528	 	 	 	97,334	 	 	 	84,154	 	
Unilin	 	 	20,864	 	 	 	25,331	 	 	 	114,298	 	 	 	105,953	 	
Corporate and eliminations	 	 	(3,930	)	 	 	(6,263	)	 	 	(20,367	)	 	 	(20,412	)	
 	 	 	
Consolidated operating income	 	$	85,640	 	 	 	46,865	 	 	 	314,169	 	 	 	43,730	 	

Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mohawk	 	 	 	 	 	 	 	 	 	$	1,637,319	 	 	 	1,582,652	 	
Dal-Tile	 	 	 	 	 	 	 	 	 	 	1,644,448	 	 	 	1,546,393	 	
Unilin	 	 	 	 	 	 	 	 	 	 	2,475,049	 	 	 	2,598,182	 	
Corporate and eliminations	 	 	 	 	 	 	 	 	 	 	342,110	 	 	 	664,219	 	

Consolidated assets	 	 	 	 	 	 	 	 	 	$	6,098,926	 	 	 	6,391,446	 	

 
Reconciliation of Net Earnings to Adjusted Net Earnings and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share data)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	 	 	
 	 	December 31, 2009	 	 	 	 	
 	
Net earnings	 	$	19,779	 	 	 	 	 	
Unusual items:	 	 	 	 	 	 	 	 	
Business restructurings	 	 	29,787	 	 	 	 	 	
Income taxes	 	 	(10,872	)	 	 	 	 	
 	
Adjusted net earnings	 	$	38,694	 	 	 	 	 	

Adjusted diluted earnings per share	 	$	0.56	 	 	 	 	 	
Weighted-average common shares outstanding — diluted	 	 	68,682	 	 	 	 	 	
Reconciliation of Net Sales to Adjusted Net Sales
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	December 31, 2010	 	December 31, 2009	 	December 31, 2010	 	December 31, 2009	
 	 	 	
Net sales	 	$	1,262,198	 	 	 	1,347,108	 	 	 	5,319,072	 	 	 	5,344,024	 	
Adjustments to net sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial carpet tile reserve	 	 	—	 	 	 	—	 	 	 	—	 	 	 	121,224	 	
Impact of shipping days	 	 	95,145	 	 	 	—	 	 	 	—	 	 	 	—	 	
Exchange rate	 	 	18,557	 	 	 	—	 	 	 	36,588	 	 	 	—	 	
 	 	 	
Adjusted net sales	 	$	1,375,900	 	 	 	1,347,108	 	 	 	5,355,660	 	 	 	5,465,248	 	
 	 	 	
Reconciliation of Segment Net Sales to Adjusted Segment Net Sales
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	
Mohawk segment	 	December 31, 2010	 	 	December 31, 2009	 	 	
 	 	
Net sales	 	$	667,230	 	 	 	738,716	 	 	
Adjustments to net sales	 	 	 	 	 	 	 	 	 	
Impact of shipping days	 	 	46,100	 	 	 	—	 	 	
 	 	
Adjusted net sales	 	$	713,330	 	 	 	738,716	 	 	

Dal-Tile segment	 	 	 	 	 	 	 	 	 	
 	 	
Net sales	 	$	317,354	 	 	 	329,985	 	 	
Adjustments to net sales	 	 	 	 	 	 	 	 	 	
Impact of shipping days	 	 	26,445	 	 	 	—	 	 	
Exchange rate	 	 	(1,592	)	 	 	—	 	 	
 	 	
Adjusted net sales	 	$	342,207	 	 	 	329,985	 	 	

Unilin segment	 	 	 	 	 	 	 	 	 	
Net sales	 	$	297,415	 	 	 	298,331	 	 	
Adjustments to net sales	 	 	 	 	 	 	 	 	 	
Impact of shipping days	 	 	22,600	 	 	 	—	 	 	
Exchange rate	 	 	20,149	 	 	 	—	 	 	
 	 	
Adjusted net sales	 	$	340,164	 	 	 	298,331	 	 	
 	 	
Reconciliation of Gross Profit to Adjusted Gross Profit
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	December 31, 2010	 	 	December 31, 2009	 	
 	
Gross profit	 	$	341,666	 	 	 	341,694	 	
Adjustments to gross profit	 	 	 	 	 	 	 	 	
Business restructurings	 	 	—	 	 	 	22,295	 	
 	
Adjusted gross profit	 	$	341,666	 	 	 	363,989	 	
 	
Adjusted gross margin as a percent of net sales	 	 	27.1	%	 	 	27.0	%	

 
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	December 31, 2010	 	December 31, 2009	
 	
Selling, general and administrative expenses	 	$	256,026	 	 	 	294,829	 	
Adjustments to selling, general and administrative expenses	 	 	 	 	 	 	 	 	
Business restructurings	 	 	—	 	 	 	7,492	 	
 	
Adjusted selling, general and administrative expenses	 	$	256,026	 	 	 	302,321	 	
 	
Adjusted selling, general and administrative expenses as a percent of net sales	 	 	20.3	%	 	 	22.4	%	
Reconciliation of Operating Income to Adjusted Operating Income
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	December 31, 2010	 	December 31, 2009	
 	
Operating income	 	$	85,640	 	 	 	46,865	 	
Adjustments to operating income	 	 	 	 	 	 	 	 	
Business restructurings	 	 	—	 	 	 	29,787	 	
 	
Adjusted operating income	 	$	85,640	 	 	 	76,652	 	
 	
Adjusted operating margin as a percent of net sales	 	 	6.8	%	 	 	5.7	%	
Reconciliation of Segment Operating Income to Adjusted Segment Operating Income
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
Mohawk segment	 	December 31, 2010	 	December 31, 2009	
 	
Operating income	 	$	48,804	 	 	 	16,269	 	
Adjustments to operating income	 	 	 	 	 	 	 	 	
Business restructurings	 	 	—	 	 	 	20,189	 	
 	
Adjusted operating income	 	$	48,804	 	 	 	36,458	 	
 	
Adjusted operating margin as a percent of segment net sales	 	 	7.3	%	 	 	4.9	%	
 	 	 	 	 	 	 	 	 	
Dal-Tile segment	 	 	 	 	 	 	 	 	
 	
Operating income	 	$	19,902	 	 	 	11,528	 	
Adjustments to operating income	 	 	 	 	 	 	 	 	
Add: Business restructurings	 	 	—	 	 	 	9,598	 	
 	
Adjusted operating income	 	$	19,902	 	 	 	21,126	 	
 	
Adjusted operating margin as a percent of segment net sales	 	 	6.3	%	 	 	6.4	%	
Reconciliation of Total Debt to Net Debt
(Amounts in thousands)
 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	December 31, 2010	 	
 	
Current portion of long-term debt	 	$	350,588	 	
Long-term debt, less current portion	 	 	1,302,994	 	
Less: Cash and cash equivalents	 	 	382,171	 	
 	
Net Debt	 	$	1,271,411	 	
 	
Reconciliation of Total Debt and Equity to Total Capitalization
(Amounts in thousands)
 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	December 31, 2010	 	
 	
Current portion of long-term debt	 	$	350,588	 	
Long-term debt, less current portion	 	 	1,302,994	 	
Total equity	 	 	3,271,556	 	
 	
Total Capitalization	 	$	4,925,138	 	
 	
Net Debt to Capitalization	 	 	26	%	
Reconciliation of Operating Income to Adjusted EBITDA
(Amounts in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Trailing Twelve	 	
 	 	Three Months Ended	 	Months Ended	 	
 	 	April 3, 2010	 	 	July 3, 2010	 	 	October 2, 2010	 	 	December 31, 2010	 	 	December 31, 2010	 	
 	
Operating income	 	$	53,621	 	 	 	89,726	 	 	 	85,182	 	 	 	85,640	 	 	 	314,169	 	
Other income (expense)	 	 	3,799	 	 	 	(1,428	)	 	 	3,471	 	 	 	1,324	 	 	 	7,166	 	
Depreciation and amortization	 	 	76,798	 	 	 	72,497	 	 	 	72,956	 	 	 	74,522	 	 	 	296,773	 	
Business restructurings	 	 	4,004	 	 	 	4,929	 	 	 	3,330	 	 	 	—	 	 	 	12,263	 	
 	
Adjusted EBITDA	 	$	138,222	 	 	 	165,724	 	 	 	164,939	 	 	 	161,486	 	 	 	630,371	 	

 	
Net Debt to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2.0	 	
 	
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.