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 October 3, 2015 and September 27, 2014:



	Three Months Ended			Nine Months Ended
	October 3, 2015		September 27, 2014	October 3, 2015	September 27, 2014
Cost of sales
Restructuring costs^(a)	$	5,828	3,862	26,135	9,396
Acquisition integration-related costs	1,463		3,399	3,473	10,257
Restructuring and integration-related costs	$	7,291	7,261	29,608	19,653

Selling, general and administrative expenses
Restructuring costs ^(a)	$	150	1,465	1,231	4,682
Acquisition transaction-related costs	2,725		—	7,403	—
Acquisition integration-related costs	2,604		5,287	5,542	12,572
Restructuring, acquisition and integration-related costs	$	5,479	6,752	14,176	17,254

(a) The restructuring costs for 2015 and 2014 primarily relate to the Company's actions taken to lower its cost structure and improve efficiencies of manufacturing and distribution operations as the Company adjusted to changing economic conditions as well as actions related to the Company's recent acquisitions. During the three and nine months ended October 3, 2015, restructuring costs included accelerated depreciation of $1,080 and $8,650, respectively.

The restructuring activity for the nine months ended October 3, 2015 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2014	$	1,741		—		3,037		100		4,878
Provision - Global Ceramic segment	—			1,245		—		(1,014	)	231
Provision - Flooring NA segment	1,877			5,451		1,700		5,369		14,397
Provision - Flooring ROW segment	—			8,667		1,211		2,860		12,738
Cash payments	(3,146		)	—		(3,614	)	(8,210	)	(14,970	)
Non-cash items	—			(15,363	)	—		1,015		(14,348	)
Balance as of October 3, 2015	$	472		—		2,334		120		2,926

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