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 months ended April 1, 2017 and April 2, 2016:



	Three Months Ended
	April 1, 2017			April 2, 2016
Cost of sales
Restructuring costs^(a)	$	2,898		5,026
Acquisition integration-related costs	(86		)	822
Restructuring and integration-related costs	$	2,812		5,848

Selling, general and administrative expenses
Restructuring costs ^(a)	$	127		227
Acquisition integration-related costs	1,039			967
Restructuring, acquisition and integration-related costs	$	1,166		1,194

(a) The restructuring costs for 2017 and 2016 primarily relate to the Company's actions taken to lower its cost structure and improve efficiencies of manufacturing and distribution operations as well as actions related to the Company's recent acquisitions.

The restructuring activity for the three months ended April 1, 2017 is as follows:



	Asset write-downs			Severance		Other restructuring costs		Total
Balance as of December 31, 2016	$	—		5,183		6,243		11,426
Provision - Global Ceramic segment	—			—		58		58
Provision - Flooring NA segment	258			—		1,969		2,227
Provision - Flooring ROW segment	43			229		468		740
Cash payments	(47		)	(2,971	)	(4,630	)	(7,648	)
Non-cash items	(254		)	15		(136	)	(375	)
Balance as of April 1, 2017	$	—		2,456		3,972		6,428

The Company expects the remaining severance and other restructuring costs to be paid over the next year.