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 including accelerated depreciation and workforce reductions.

Restructuring, acquisition transaction and integration-related costs consisted of the following during the year ended December 31, 2017, 2016 and 2015, respectively (in thousands):



	2017		2016	2015
Cost of sales
Restructuring costs	$	33,109	33,582	35,956
Acquisition integration-related costs	2,916		4,722	9,597
Restructuring and integration-related costs	$	36,025	38,304	45,553

Selling, general and administrative expenses
Restructuring costs	$	3,976	4,881	5,779
Acquisition transaction-related costs	2,751		—	9,502
Acquisition integration-related costs	6,188		7,438	13,770
Restructuring, acquisition and integration-related costs	$	12,915	12,319	29,051

The restructuring activity for the years ended December 31, 2017 and 2016, respectively is as follows (in thousands):



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2015	$	—		—		8,965		1,065		10,030
Provision - Global Ceramic segment	—			795		1,396		79		2,270
Provision - Flooring NA segment	—			10,048		3,850		18,170		32,068
Provision - Flooring ROW segment	—			184		1,932		2,009		4,125
Cash payments	—			—		(10,958	)	(9,982	)	(20,940	)
Non-cash items	—			(11,027	)	(2	)	(5,098	)	(16,127	)
Balance as of December 31, 2016	—			—		5,183		6,243		11,426
Provision - Global Ceramic segment	492			—		1,082		(32	)	1,542
Provision - Flooring NA segment	316			6,849		2,500		22,131		31,796
Provision - Flooring ROW segment	—			650		1,518		1,465		3,633
Provision - Corporate	—			—		—		114		114
Cash payments	(449		)	(190	)	(9,469	)	(29,725	)	(39,833	)
Non-cash items	—			(7,309	)	(230	)	(44	)	(7,583	)
Balance as of December 31, 2017	$	359		—		584		152		1,095

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