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 27, 2014 and September 28, 2013:



	Three Months Ended			Nine Months Ended
	September 27, 2014		September 28, 2013	September 27, 2014	September 28, 2013
Cost of sales
Restructuring costs	$	3,862	9,786	9,396	24,116
Acquisition integration-related costs	3,399		4,913	10,257	8,328
Restructuring and integration-related costs	$	7,261	14,699	19,653	32,444

Selling, general and administrative expenses
Restructuring costs	$	1,465	3,887	4,682	17,946
Acquisition transaction-related costs	—		402	—	14,214
Acquisition integration-related costs	5,287		5,423	12,572	10,984
Restructuring, acquisition and integration-related costs	$	6,752	9,712	17,254	43,144

The restructuring activity for the nine months ended September 27, 2014 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2013	$	5,904		—		18,144		—		24,048
Provision - Ceramic segment	—			4,192		823		(590	)	4,425
Provision - Laminate and Wood segment	—			—		2,511		7,142		9,653
Cash payments	(3,462		)	—		(15,831	)	(7,142	)	(26,435	)
Non-cash items	—			(4,192	)	—		590		(3,602	)
Balance as of September 27, 2014	$	2,442		—		5,647		—		8,089

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