XML 76 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Employee Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2012
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] |
Employee Benefit Plans | Employee Benefit Plans The Company has a 401(k) retirement savings plan (the “Mohawk Plan”) open to substantially all of its employees within the Mohawk segment, Dal-Tile segment and U.S. based employees of the Unilin segment, who have completed 90 days of eligible service. The Company contributes $.50 for every $1.00 of employee contributions up to a maximum of 6% of the employee’s salary based upon each individual participants election. Employee and employer contributions to the Mohawk Plan were $35,986 and $15,046 in 2012, $34,595 and $14,541 in 2011 and $33,071 and $13,062 in 2010, respectively. The Company also has various pension plans covering employees in Belgium, France, and The Netherlands (the “Non-U.S. Plans”) that it acquired with the acquisition of Unilin. Benefits under the Non-U.S. Plans depend on compensation and years of service. The Non-U.S. Plans are funded in accordance with local regulations. The Company uses December 31 as the measurement date for its Non-U.S. Plans. Components of the net periodic benefit cost of the Non-U.S. Plans are as follows:
| 2012 |  | 2011 |  | 2010
Service cost of benefits earned | $ | 1,870 |  |  | 1,708 |  |  | 1,506 |
Interest cost on projected benefit obligation | 1,367 |  |  | 1,400 |  |  | 1,219 |
Expected return on plan assets | (1,192 | ) |  | (1,232 | ) |  | (1,025 | )
Amortization of actuarial gain | (10 | ) |  | (26 | ) |  | 4 |
Net pension expense | $ | 2,035 |  |  | 1,850 |  |  | 1,704 |
Assumptions used to determine net periodic pension expense for the Non-U.S. Plans:
| 2012 |  | 2011
Discount rate | 4.50% |  | 4.75%
Expected rate of return on plan assets | 2.50%-3.50% |  | 4.00%-5.00%
Rate of compensation increase | 2.00%-4.00% |  | 0.00%-3.00%
Underlying inflation rate | 2.00% |  | 2.00%
The obligations, plan assets and funding status of the Non-U.S. Plans were as follows:
| 2012 |  | 2011
Change in benefit obligation: |  |  |
Projected benefit obligation at end of prior year | $ | 29,231 |  |  | 26,977 |
Cumulative foreign exchange effect | 669 |  |  | (876 | )
Service cost | 1,870 |  |  | 1,708 |
Interest cost | 1,367 |  |  | 1,400 |
Plan participants contributions | 827 |  |  | 763 |
Actuarial loss | 5,179 |  |  | 455 |
Benefits paid | (1,552 | ) |  | (1,196 | )
Effect of curtailment and settlement | (40 | ) |  | — |
Projected benefit obligation at end of year | $ | 37,551 |  |  | 29,231 |
Change in plan assets: |  |  |
Fair value of plan assets at end of prior year | $ | 26,109 |  |  | 24,108 |
Cumulative foreign exchange effect | 515 |  |  | (594 | )
Actual return on plan assets | 4,771 |  |  | 1,203 |
Employer contributions | 1,888 |  |  | 1,825 |
Benefits paid | (1,552 | ) |  | (1,196 | )
Plan participant contributions | 827 |  |  | 763 |
Fair value of plan assets at end of year | $ | 32,558 |  |  | 26,109 |
Funded status of the plans: |  |  |
Ending funded status | $ | (4,993 | ) |  | (3,122 | )
Net amount recognized in consolidated balance sheets: |  |  |
Accrued benefit liability (non-current liability) | $ | (4,993 | ) |  | (3,122 | )
Accumulated other comprehensive income | 928 |  |  | (663 | )
Net amount recognized | $ | (4,065 | ) |  | (3,785 | )
The Company’s net amount recognized in other comprehensive income related to actuarial gains (losses) was $(1,591), $(452) and $380 for the years ended December 31, 2012, 2011 and 2010, respectively. Assumptions used to determine the projected benefit obligation for the Non-U.S. Plans were as follows:
| 2012 |  | 2011
Discount rate | 3.25% |  | 4.50%
Rate of compensation increase | 2.00%-4.00% |  | 0.00%-3.00%
Underlying inflation rate | 2.00% |  | 2.00%
The discount rate assumptions used to account for pension obligations reflect the rates at which the Company believes these obligations will be effectively settled. In developing the discount rate, the Company evaluated input from its actuaries, including estimated timing of obligation payments and yield on investments. The rate of compensation increase for the Non-U.S. Plans is based upon the Company’s annual reviews.
| Non-U.S. Plans
| December 31, 2012 |  | December 31, 2011
Plans with accumulated benefit obligations in excess of plan assets: |  |  |
Projected benefit obligation | $ | 15,067 |  |  | 16,492 |
Accumulated benefit obligation | 12,396 |  |  | 15,496 |
Fair value of plan assets | 11,702 |  |  | 14,703 |
Plans with plan assets in excess of accumulated benefit obligations: |  |  |
Projected benefit obligation | $ | 22,484 |  |  | 12,739 |
Accumulated benefit obligation | 20,640 |  |  | 10,687 |
Fair value of plan assets | 20,856 |  |  | 11,406 |
Estimated future benefit payments for the Non-U.S. Plans are as follows:
2013 |  | 976 |
2014 |  | 984 |
2015 |  | 1,071 |
2016 |  | 1,102 |
2017 |  | 1,606 |
Thereafter |  | 10,241 |
The Company expects to make cash contributions of $1,930 to the Non-U.S. Plans in 2013. The fair value of the Non-U.S. Plans' investments were estimated using market observable data. Within the hierarchy of fair value measurements, these investments represent Level 2 fair values. The fair value and percentage of each asset category of the total investments held by the plans as of December 31, 2012 and 2011 were as follows:
| 2012 |  | 2011
Non-U.S. Plans: |  |  |
Insurance contracts (100%) | $ | 32,558 |  |  | 26,109 |
The Company’s approach to developing its expected long-term rate of return on pension plan assets combines an analysis of historical investment performance by asset class, the Company’s investment guidelines and current and expected economic fundamentals.

X
- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References No definition available. + Details
Name: | us-gaap_CompensationAndEmployeeBenefitPlansTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_DefinedBenefitPensionPlansAndDefinedBenefitPostretirementPlansDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration