Restructuring, acquisition and integration-related costs

The Company incurs costs in connection with acquiring, integrating and restructuring acquisitions and in connection with its global cost-reduction/productivity initiatives. For example:

•

In connection with acquisition activity, the Company typically incurs costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and


•	In connection with the Company's cost-reduction/productivity initiatives, it typically incurs costs and charges associated with site closings and other facility rationalization actions and workforce reductions.

Restructuring, acquisition transaction and integration-related costs consisted of the following during the three and nine months ended September 28, 2013 and September 29, 2012:



	Three Months Ended					Nine Months Ended
	September 28, 2013			September 29, 2012		September 28, 2013		September 29, 2012
Cost of sales
Restructuring costs	$	9,786	(a)	2,984	(b)	24,116	(a)	9,620	(b)
Acquisition integration-related costs	4,913			—		8,328		—
Restructuring and integration-related costs	$	14,699		2,984		32,444		9,620

Selling, general and administrative expenses
Restructuring costs	$	3,887	(a)	1,245	(b)	17,946	(a)	2,835	(b)
Acquisition transaction-related costs	402			—		14,214		—
Acquisition integration-related costs	5,423			—		10,984		—
Restructuring, acquisition and integration-related costs	$	9,712		1,245		43,144		2,835

(a) The restructuring costs for 2013 primarily relate to the Company’s actions taken to lower its cost structure and improve efficiencies of manufacturing operations and administrative functions, as well as actions related to the Company's acquisition of Pergo, Marazzi and Spano.

(b) The restructuring costs for 2012 primarily relate to the Company's actions taken to to lower its cost structure and improve efficiencies of manufacturing and distribution operations as the Company adjusted to changing economic conditions.

In addition, $20 of restructuring costs was recorded in other expense for the three and nine months ended September 28, 2013.

The restructuring activity for the nine months ended September 28, 2013 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2012	$	7,457		—		2,898		—		10,355
Provision - Carpet segment	1,320			37		6,141		326		7,824
Provision - Ceramic segment	—			—		8,550		426		8,976
Provision - Laminate and Wood segment	—			—		17,849		7,002		24,851
Provision - Corporate	—			—		411		—		411
Cash payments	(2,106		)	—		(16,610	)	(7,754	)	(26,470	)
Non-cash items	—			(37	)	—		—		(37	)
Balance as of September 28, 2013	$	6,671		—		19,239		—		25,910

The Company expects the remaining lease impairments, severance and other restructuring costs to be paid over the next four years.