Mohawk Industries (MHK) presents a deeply negative liquidation posture as of April 4, 2026, consistent with a capital-intensive manufacturer whose book value is heavily weighted toward illiquid assets. Total assets of $13.8B are dominated by PP&E net of $4.7B (gross $11.0B, accumulated depreciation $6.3B), goodwill of $1.2B, indefinite-lived trade names of $0.7B, finite intangibles net of $0.1B, and inventory of $2.7B. Under liquidation haircuts, recoverable asset value is substantially impaired: goodwill and indefinite-lived trade names ($1.9B combined) recover $0 under the lens; finite intangibles ($0.1B) recover $0; PP&E net $4.7B recovers at 50-70% or roughly $2.3-3.3B; inventory $2.7B recovers at 60% or roughly $1.6B; receivables $2.1B gross recover at 90-95% or roughly $1.9-2.0B; cash $0.87B recovers at 100%. Against total liabilities of approximately $5.4B held at face value—comprising current liabilities of $2.9B (including $381M current debt and commercial paper, $1.2B trade payables, $273M accrued employee, $120M current operating leases), long-term debt $1.7B, operating lease noncurrent $292M, deferred tax liabilities $171M, other noncurrent $347M—the arithmetic produces a large negative equity recovery even at the high end of asset haircut assumptions. MFFAIS CLV of negative $4.0B is directionally consistent with this analysis. The OLV of $942M reflects a going-concern view of tangible assets only. Compared to the prior 10-K (December 31, 2025), total debt carrying value increased from $2.03B to $2.11B, driven by a step-up in U.S. commercial paper from $155M to $341M, partially offset by modest long-term debt paydown. Accumulated OCI improved from negative $1.5B (Dec 31, 2024 per equity roll) to negative $959M at quarter-end, primarily a $255M favorable FX translation on Q1 2025 and further movement. Key contingent liabilities not separately tagged in XBRL but disclosed in the commitment and contingencies footnote include: (i) a Belgian tax dispute totaling EUR 1.2B in assessments against IVC BV (including penalties, excluding interest) currently in administrative phase—this is a material unliquidated contingency that would sit ahead of equity in any wind-up; (ii) PFAS litigation across Georgia, Alabama, and South Carolina; and (iii) approximately 500 silica-exposure claims. None of these contingencies are accrued at face value on the balance sheet, introducing additional downside to any liquidation equity recovery scenario. Approximately 30% of cash ($872M total) is held in Russia, subject to repatriation risk and potential asset impairment in a liquidation scenario. The Belgian EUR 1.2B tax assessment is disclosed in MD&A narrative but is not separately tagged in XBRL—filing does not tag this as a contingent liability amount.
▼ Community Notes