UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 FORM 11-K

   [Mark One]	 	
[X ]         ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934	
 For the fiscal year ended December 31, 2004

OR

  [   ]  TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from____to_____

Commission File Number 01-19826

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II
(Full title of the Plan)

MOHAWK INDUSTRIES, INC.
(Name of the issuer of the securities held pursuant to the Plan)

P. O. Box 12069, 160 S. Industrial Blvd.
Calhoun, Georgia 30701
(Address of principal executive offices)

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II
Index to Financial Statements, Supplemental Schedule and Exhibits

                   Item

                         Report of Independent Registered Public Accounting Firm

                          Statements of Net Assets Available for Plan Benefits as of December 31, 2004 and 2003

                          Statements of Changes in Net Assets Available for Plan Benefits for the Years ended December 31, 2004 and 2003

                          Notes to the Financial Statements

                          Schedule H, Line 4i-Schedule of Assets (Held at Year End)-December 31, 2004

                          Signature

                          Exhibit 23 - Consent of Independent Registered Public Accounting Firm

 

 

 

 

 

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Financial Statements and Supplemental Schedule

December 31, 2004 and 2003

(With Report of Independent Registered Public Accounting Firm)

 

 

 

 

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Table of Contents
 	Page	
Report of Independent Registered Public Accounting Firm	1	
Statements of Net Assets Available for Plan Benefits as of December 31, 2004 and 2003	2	
Statements of Changes in Net Assets Available for Plan Benefits for the Years ended December 31, 2004 and 2003	3	
Notes to Financial Statements	4	
Schedule	 	
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) - December 31, 2004	10	

Report of Independent Registered Public Accounting Firm

Plan Administrator
Mohawk Carpet Corporation
    Retirement Savings Plan II:

We have audited the accompanying statements of net assets available for plan benefits of the Mohawk Carpet Corporation Retirement Savings Plan II (the Plan) as of December 31, 2004 and 2003, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2004 and 2003, and the changes in net assets available for plan benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

       

Atlanta, Georgia
June 28 , 2005
1	

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Statements of Changes in Net Assets Available for Plan Benefits

December 31, 2004 and 2003
 	 	 	 	 	 	 	 	2004	 	2003	
Assets:	 	 	 	 	 	 	 	 	
 	Cash	 	 	 	 	$	546,012   	 	14,243   	
 	Investments (notes 3 and 4)	 	303,774,655   	 	249,180,702   	
 	Contributions receivable from employer	 	576,105   	 	-    	
 	Contributions receivable from participants	 	1,570,887   	 	-    	
 	 	 	 	 	Net assets available for plan benefits	$	306,467,659   	 	249,194,945   	
 	 	 	 	 	 	 	 	 	 	 	
See accompanying notes to the financial statements.
2	

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Statements of Changes in Net Assets Available for Plan Benefits

December 31, 2004 and 2003
 	 	 	 	 	 	 	 	2004	 	2003	
Additions:	 	 	 	 	 	 	 	
 	Investment income:	 	 	 	 	
 	 	Interest and dividends	$	5,641,687   	 	4,980,729   	
 	 	Net appreciation in fair value of investments:	 	 	 	 	
 	 	 	Mutual funds	 	13,637,763   	 	21,646,106   	
 	 	 	Common collective funds	 	3,208,363   	 	3,547,103   	
 	 	 	Mohawk Industries, Inc. common stock	 	9,451,920   	 	6,191,069   	
 	 	 	 	 	Net investment income	 	31,939,733   	 	36,365,007   	
 	Contributions from employer	 	11,396,245   	 	9,236,808   	
 	Contributions from participants	 	27,531,031   	 	21,632,462   	
 	Transfers from other plans (note 7)	 	2,891,213   	 	45,483,873   	
 	 	 	 	 	Total additions	 	73,758,222   	 	112,718,150   	
Deductions:	 	 	 	 	 	 	
 	Participants' benefits	 	15,165,087   	 	9,577,096   	
 	Administrative expenses	 	64,333   	 	31,500   	
 	Transfers to other plan (note 7)	 	1,256,088   	 	591,007   	
 	 	 	 	 	Total deductions	 	16,485,508   	 	10,199,603   	
 	 	 	 	 	Increase in net assets available for plan benefits	 	57,272,714   	 	102,518,547   	
Net assets available for plan benefits at beginning of year	 	249,194,945   	 	146,676,398   	
Net assets available for plan benefits at end of year	$	306,467,659   	 	249,194,945   	
 	 	 	 	 	 	 	 	 	 	 	
See accompanying notes to the financial statements.
3	

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Notes to Financial Statements

December 31, 2004 and 2003

(1)           Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Mohawk Carpet Corporation Retirement Savings Plan II (the Plan) in preparing its financial statements.

(a)           Basis of Presentation

The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting and present the net assets available for plan benefits and changes in those net assets.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

(b)           Investments

Investments in mutual funds, common stock, and common collective funds are stated at fair value based on quoted market prices or as determined by Scudder Investments (Trustee). Investments in money market funds and loans to participants are stated at cost which approximates fair value. Common collective funds contain investments in guaranteed investment contracts, which are stated at contract value which approximate fair value. Securities transactions are accounted for on a trade date basis.

Realized and unrealized investment gains and losses are included in net appreciation in fair value of investments in the accompanying statements of changes in net assets available for plan benefits.

The Plan provides for investing in numerous funds, which invest in various types of investment securities and in various companies in various markets. Investment securities, generally, are exposed to several risks, such as interest rate, market, and credit risks. Due to the level of risk associated with the funds, it is reasonably possible that changes in the values of the funds will occur in the near term and such changes could materially affect the amounts reported in the financial statements and supplemental schedule.

(c)            Fair Value of Financial Instruments

Investments in securities are stated at fair value. In addition, management of the Plan believes that the carrying amount of receivables is a reasonable approximation of the fair value due to the short‑term nature of these instruments.

(2)           Description of the Plan

The following description of the Plan provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions.

                                                                                    4                                                              (Continued)

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Notes to Financial Statements

December 31, 2004 and 2003

(a)           General

The Plan is a defined contribution plan and covers substantially all salaried, sales, and nonexempt employees, of Mohawk Carpet Corporation (the Company), a wholly owned subsidiary of Mohawk Industries, Inc. and all employees; including hourly, nonexempt and salaried, of the Karastan Bigelow Group and the Lauren Park Mill Group, are included in The Plan . Effective January 1, 2003, certain employees of Dal-Tile International, Inc., a wholly owned subsidiary of Mohawk Industries, Inc., were covered by the Plan (see note 7). Effective November 10, 2003, certain employees of Lees Carpet Division, a division of Mohawk Industries, Inc., were covered by the Plan. The Plan provides for retirement savings to qualified active participants through both participant and employer contributions and is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Employees are eligible to participate in the Plan at the beginning of a calendar month after the completion of 90 days of service.

The Plan is administered by an Administrative Committee appointed by the Company. The Administrative Committee is responsible for the control, management, and administration of the Plan and the assets held in trust at Scudder Investments as of December 31, 2004 and 2003 and for the years then ended.

(b)           Contributions

Contributions to the Plan are made by both participants and the Company. Participants may contribute a maximum of 25% of their gross compensation, subject to certain limitations. Participants may allocate their contributions in multiples of 1% to various investment funds of the Plan. For all participants other than employees of Dal-Tile International, Inc. and Lees Carpet Division, the Company provides 50% matching contributions up to the first 4% of each participant's gross compensation contributed to the Plan. The Company also provides an additional match of $0.25 for every $1.00 of participant contributions in excess of 4% up to a maximum of 6%. The employer match for participants employed by Dal-Tile International, Inc. is 50% up to the first 6% of each participant's gross compensation contributed to the Plan. The employer match for participants  employed by Lees Carpet Division is 100% up to the first 3% of each participant's gross compensation contributed to the Plan plus 50% of participant contributions in excess of 3% up to a maximum of 5%.

The terms of the Plan also provide for discretionary employer profit sharing contributions to the Mohawk Stock Fund for plan participants employed on the last day of the plan year or terminated during the plan year on account of death, disability, or retirement. Discretionary employer profit sharing contributions of $2,516,561 and $1,936,982, respectively, were made to the Plan during the years ended December 31, 2004 and 2003. Subsequent to December 31, 2004, the Company approved and contributed $2,944,231 as a discretionary contribution to the Plan.

(c)            Participant Accounts

Each participant's account is credited with their contribution for the period as well as the employer's matching contribution and an allocation of any employer profit sharing contribution. Investment income, realized gains/losses, and the change in unrealized appreciation or depreciation on plan investments are credited to participants' accounts monthly based on the proportion of each participant's account balance to the total account balance within each investment fund at the beginning of the month.

Participant accounts may be invested in one or more of the investment funds available under the Plan at the direction of the participant. The Plan provides for monthly valuation of accounts. Current investment funds available within the Plan include the following:

                                                                                    5                                                              (Continued)

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Notes to Financial Statements

December 31, 2004 and 2003
Investment fund	 	Fund objective	
Scudder Stable Value	 	To provide fixed rate of return for a fixed period of time. Money in	
 	Fund:	 	 	 	 	 	this fund is invested in investment contracts, money market	
 	 	 	 	 	 	 	 	 	securities, and managed bond portfolios.	
 	 	 	 	 	 	 	 	 	 	
PIMCO Total Return	 	To provide the opportunity for higher earnings than the stable value	
 	Fund:	 	 	 	 	 	fund. Money in this fund is invested primarily in intermediate	
 	 	 	 	 	 	 	 	 	term, high-quality, fixed income securities.	
 	 	 	 	 	 	 	 	 	 	
Artisan Mid Cap	 	 	To provide long-term growth of capital by investing in common	
 	Fund:	 	 	 	 	 	stocks of mid-size companies.	
 	 	 	 	 	 	 	 	 	 	
Baron Growth Fund:	 	To provide capital appreciation by investing primarily in common	
 	 	 	 	 	 	 	stocks of smaller growth companies with market values under	
 	 	 	 	 	 	 	 	 	$2.5 billion.	
 	 	 	 	 	 	 	 	 	 	
Fidelity Dividend	 	To provide capital appreciation. Money in this fund is invested in	
 	Growth Fund:	 	 	 	assets in common stock of firms that are believed to have the	
 	 	 	 	 	 	 	 	 	potential for dividend growth.	
 	 	 	 	 	 	 	 	 	 	
Fidelity Low-Priced	 	To provide capital appreciation. Money in this fund is invested in	
 	Stock Fund:	 	 	 	stocks with prices less than $35.00 per share at the time of the	
 	 	 	 	 	 	 	 	 	Fund's investment.	
 	 	 	 	 	 	 	 	 	 	
Fidelity Mid-Cap	 	 	To provide long-term growth of capital by investing in common	
 	Stock Fund:	 	 	 	stocks of companies with medium market capitalization.	
 	 	 	 	 	 	 	 	 	 	
Lord Abbett Small Cap	 	To provide long-term capital appreciation by investing at least 80%	
 	Value Fund:	 	 	 	of assets in equity securities of companies with market	
 	 	 	 	 	 	 	 	 	capitalizations of less than $2 billion at the time of purchase.	
 	 	 	 	 	 	 	 	 	 	
PIMCO PEA	 	 	 	To provide long-term growth of capital and current income by	
 	Renaissance Fund:	 	 	investing primarily in a variety of income-producing	
 	 	 	 	 	 	 	 	 	equity securities.	
 	 	 	 	 	 	 	 	 	 	
Scudder Dreman High-	 	To provide long-term capital growth through investing in large	
 	Return Equity Fund:	 	 	capitalization stocks in undervalued sectors of the stock market.	
                                                                                    6                                                              (Continued)

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Notes to Financial Statements

December 31, 2004 and 2003
Investment fund	 	Fund objective	
Scudder Equity 500	 	To track the performance of the Standard & Poor's 500 Composite	
 	Index Fund:	 	 	 	Stock Price Index which emphasizes stocks of large	
 	 	 	 	 	 	 	 	 	U.S. companies.	
 	 	 	 	 	 	 	 	 	 	
Scudder International	 	To maximize capital appreciation by investing in a variety of	
 	Select Equity Fund:	 	 	countries and economic sectors.	
 	 	 	 	 	 	 	 	 	 	
Transamerica Premier	 	To provide long-term growth through investing in a diversified	
 	Equity Fund:	 	 	 	portfolio of equity securities of domestic growth companies	
 	 	 	 	 	 	 	 	 	of any size.	
 	 	 	 	 	 	 	 	 	 	
Mohawk Aggressive	 	To provide capital appreciation. Money in this fund is invested in a	
 	Portfolio Fund:	 	 	mix current investment  funds, excluding company stock (the Plan's	
 	 	 	 	 	 	 	 	 	Core Funds).	
 	 	 	 	 	 	 	 	 	 	
Mohawk Conservative	 	To provide a stable return on investment. Money in this fund is	
 	Portfolio Fund:	 	 	invested in a mix of the Plan's Core Funds.	
 	 	 	 	 	 	 	 	 	 	
Mohawk Moderate	 	To provide investment diversification by investing in both growth	
 	Portfolio Fund:	 	 	and income investments. Money in this fund is invested in a	
 	 	 	 	 	 	 	 	 	mix of the Plan's Core Funds.	
 	 	 	 	 	 	 	 	 	 	
Mohawk Stock Fund:	 	To provide capital appreciation through the ownership of Mohawk	
 	 	 	 	 	 	 	 	 	Industries, Inc. common stock.	
(d)           Distributions to Participants

Upon termination of employment, the participant's account shall be distributed in a lump-sum cash payment as soon as administratively practicable.

Under the terms of the Plan, participants may make hardship withdrawals from their accounts upon furnishing proof of hardship as specified in the Plan agreement. Participants may also borrow the lesser of $50,000 or 50% of the value of their accounts subject to limitations provided by the Plan. Loans must be paid back to the Plan generally within four years of the loan date, with the exception of homestead loans.

(e)            Vesting

Participants are immediately vested in their contributions and any income earned on such contributions. Participants whose entry date under the Prior Plan or this Plan is on or after January 1, 2001 are vested in the Company's matching and discretionary contributions after one year of service.

Amounts forfeited by participants who terminate from the Plan prior to being 100% vested are applied to reduce subsequent Company contributions to the Plan. In 2004 and 2003, employer contributions were reduced by forfeitures of $- and $103,312, respectively.

                                                                                    7                                                              (Continued)

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Notes to Financial Statements

December 31, 2004 and 2003

(f)             Administrative Expenses

Certain administrative expenses of the Plan are paid by the Company. These costs include legal, accounting, and certain administrative fees.

(3)           Transactions with Parties-in-Interest

At December 31, 2004 and 2003, the Plan held investments sponsored by the trustee with current values of $184,192,165 and $160,023,498, respectively. The Plan also held investments in 447,738 and 441,299 shares of Mohawk Industries, Inc. common stock with current values of $40,856,091 and $31,129,083 at December 31, 2004 and 2003, respectively.

(4)           Investments

The following investments represent 5% or more of the Plan assets at December 31, 2004 and 2003:
 	 	 	 	 	 	 	 	2004	 	2003	
Mutual funds:	 	 	 	 	 	
 	Scudder Dreman High Return Equity Fund	$	52,396,520   	 	46,351,171   	
 	Scudder Equity 500 Index Fund	 	15,090,883   	 	12,530,438   	
 	Transamerica Premier Equity Fund	 	16,511,982   	 	13,122,737   	
Mohawk Industries, Inc. common stock	 	40,856,091   	 	31,129,083   	
Common collective funds:	 	 	 	 	
 	Scudder Stable Value Fund	 	76,753,133   	 	68,983,920   	
 	Mohawk Moderate Portfolio Fund	 	22,081,457   	 	17,759,695   	
All of the Plan's investments are held by a party-in-interest to the Plan.

(5)           Income Tax Status

The Plan obtained a favorable determination letter dated April 22, 2005, in which the Internal Revenue Service stated that the Plan was in compliance with the applicable requirements of the Internal Revenue Code.

(6)           Plan Termination

While it is the Company's intention to continue the Plan indefinitely, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA and the Plan agreement. In the event of Plan termination, participants will become 100% vested in their accounts.

                                                                                    8                                                              (Continued)

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Notes to Financial Statements

December 31, 2004 and 2003

(7)           Transfers from/to Other Plans

During 2004 and 2003, due to changes in employment status, $2,891,213 and $1,483,281, respectively, were attributable to account balances of certain participants that were transferred from the Mohawk Carpet Corporation Retirement Savings Plan to the Plan.

During 2004 and 2003, due to changes in employment status, $1,256,088 and $591,007, respectively, were attributable to account balances of certain participants that were transferred to the Mohawk Carpet Corporation Retirement Savings Plan from the Plan.

In January 2003, the assets of Dal-Tile International, Inc. Employees' Retirement Savings Plan for Salaried and Nonmanufacturing Hourly Employees (the Dal-Tile Plan) were merged with the Plan. During the year ended  December 31, 2003, assets of $44,000,592 were transferred to the Plan from the Dal-Tile Plan. In June 2005, assets of the Wayn-Tex, Inc. Employees Save Plus Plan of $2,844,014  were merged with the Plan.

                                                                                    9                                                              (Continued)

Schedule

MOHAWK CARPET CORPORATION RETIREMENT SAVINGS PLAN II

Schedule H, Line 4i-Schedule of Assets (Held at End of Year)

December 31, 2004
 	 	 	 	 	 	 	 	 	 	 	 	Current	
Identity of issue	 	Description of investment	 	value	
Mutual funds:	 	 	 	 	 	 	 	
 	PIMCO Total Return Fund	 	978,808    	 	Mutual fund units	$	10,443,878   	
 	Artisan Mid Cap Fund	 	16,764    	 	Mutual fund units	 	495,540   	
 	Baron Growth Fund	 	170,855    	 	Mutual fund units	 	7,666,253   	
 	Fidelity Dividend Growth Fund	 	458,681    	 	Mutual fund units	 	13,067,824   	
 	Fidelity Low-Priced Stock Fund	 	181,574    	 	Mutual fund units	 	7,308,364   	
 	Fidelity Mid-Cap Stock Fund	 	316,495    	 	Mutual fund units	 	7,421,797   	
 	Lord Abbett Small Cap Value Fund	 	15,355    	 	Mutual fund units	 	422,877   	
 	PIMCO PEA Renaissance Fund	 	139,722    	 	Mutual fund units	 	3,751,541   	
 	*	Scudder Dreman High-Return Equity Fund	 	1,227,948    	 	Mutual fund units	 	52,396,520   	
 	*	Scudder Equity 500 Index Fund	 	111,208    	 	Mutual fund units	 	15,090,883   	
 	*	Scudder International Select Equity Fund	 	521,698    	 	Mutual fund units	 	10,340,060   	
 	Transamerica Premier Equity Fund	 	848,509    	 	Mutual fund units	 	16,511,982   	
*	Mohawk Industries, Inc. - common stock	 	447,738    	 	Shares of common stock	 	40,856,091   	
Common collective funds:	 	 	 	 	 	 	
 	*	Scudder Stable Value Fund	 	76,753,134    	 	Collective fund units	 	76,753,133   	
 	*	Mohawk Aggressive Portfolio Fund	 	410,694    	 	Collective fund units	 	5,987,926   	
 	*	Mohawk Conservative Portfolio Fund	 	127,348    	 	Collective fund units	 	1,542,186   	
 	*	Mohawk Moderate Portfolio Fund	 	1,670,307    	 	Collective fund units	 	22,081,457   	
Loans to participants	 	 	 	(1)	 	11,636,343   	
 	 	 	 	 	Total	 	 	 	 	$	303,774,655   	
*	Scudder Investments, Trustee and Mohawk Industries, Inc. are parties-in-interest to the Plan.	 	 	
(1)	Loans are consummated at a fixed rate (then current prime rate plus 1%) with maturity dates through	
 	 	October 4, 2017. Interest rates range from 5.0% to 12.33% on loans outstanding.	 	 	
See accompanying report of independent registered public accounting firm.

10

SIGNATURES

     The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator  has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.

                                                                                                                                           Mohawk Carpet Corporation Retirement Savings Plan II
                                                                                                                                                                        (Full Title of the Plan)
                  Dated: June 28, 2005	By:/s/ Jerry L. Melton	
                                                                                                                                                                               	Jerry L. Melton,
Vice President, Human Resources	

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors
Mohawk Industries, Inc.:

We consent to the incorporation by reference in the registration statement (No. 33-87998) on Form S‑8 for the Mohawk Carpet Corporation Retirement Savings Plan II of our report dated June 28, 2005, with respect to the statements of net assets available for plan benefits of the Mohawk Carpet Corporation Retirement Savings Plan II as of December 31, 2004 and 2003, and the related statements of changes in net assets available for plan benefits for the years then ended and related supplemental schedule, which report appears in the December 31, 2004 Annual Report on Form 11‑K of the Mohawk Carpet Corporation Retirement Savings Plan II.

Atlanta, Georgia
June 28, 2005