Restructuring, acquisition and integration-related costs

9 Months Ended

Sep. 28, 2019

Restructuring and Related Activities [Abstract]

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, 2019 and September 29, 2018:



	Three Months Ended			Nine Months Ended
	September 28, 2019		September 29, 2018	September 28, 2019	September 29, 2018
Cost of sales
Restructuring costs⁽¹⁾	$	7,284	10,004	43,197	33,425
Acquisition integration-related costs	180		198	2,736	3,293
Restructuring and acquisition integration-related costs	$	7,464	10,202	45,933	36,718

Selling, general and administrative expenses
Restructuring costs ⁽¹⁾	$	491	1,476	2,336	9,366
Acquisition transaction-related costs	413		3,032	1,330	3,095
Acquisition integration-related costs	1,147		5,180	4,554	8,857
Restructuring, acquisition transaction and integration-related costs	$	2,051	9,688	8,220	21,318

(1) The restructuring costs for 2019 and 2018 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 nine months ended September 28, 2019 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2018	$	397		—		7,866		250		8,513
Provision - Global Ceramic segment	—			—		4,879		—		4,879
Provision - Flooring NA segment	—			21,791		1,168		12,087		35,046
Provision - Flooring ROW segment	—			2,515		2,367		726		5,608
Cash payments	(361		)	—		(11,715	)	(12,702	)	(24,778	)
Non-cash items	—			(24,306	)	(130	)	(111	)	(24,547	)
Balance as of September 28, 2019	$	36		—		4,435		250		4,721

The Company expects the remaining severance and other restructuring costs to be paid over the next 12 months.