Restructuring, Acquisition and Integration-Related Costs

6 Months Ended

Jul. 03, 2021

Restructuring and Related Activities [Abstract]

Restructuring, Acquisition and Integration-Related Costs

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 ("Asset write-downs") and workforce reductions.

Restructuring, acquisition transaction and integration-related costs consisted of the following during the three and six months ended July 3, 2021 and June 27, 2020:

	Three Months Ended			Six Months Ended
	July 3, 2021		June 27, 2020	July 3, 2021	June 27, 2020
Cost of sales
Restructuring costs	$	5,273	49,500	15,439	60,672
Acquisition integration-related costs	26		543	43	1,153
Restructuring and acquisition integration-related costs	$	5,299	50,043	15,482	61,825
Selling, general and administrative expenses
Restructuring costs	$	406	12,540	315	13,077
Acquisition transaction-related costs	895		6	1,744	(210)
Acquisition integration-related costs	180		990	423	1,565
Restructuring, acquisition transaction and integration-related costs	$	1,481	13,536	2,482	14,432

The restructuring activity for the three months ended July 3, 2021 is as follows:

	Lease impairments		Asset write-downs	Severance	Other restructuring costs	Total
Balances as of April 3, 2021	$	—	—	7,973	275	8,248
Provision
Global Ceramic segment	226		356	—	144	726
Flooring NA segment	—		3,317	52	2,118	5,487
Flooring ROW segment	—		(516)	(474)	178	(812)
Corporate	—		—	278	—	278
Total provision	226		3,157	(144)	2,440	5,679
Cash payments	—		—	(3,282)	(2,463)	(5,745)
Non-cash items	(226)		(3,157)	77	(228)	(3,534)
Balances as of July 3, 2021	$	—	—	4,624	24	4,648
Provision amounts recorded in:
Cost of sales	$	—	2,939	64	2,270	5,273
Selling, general and administrative expenses	226		218	(208)	170	406
Total provision	$	226	3,157	(144)	2,440	5,679

The restructuring activity for the six months ended July 3, 2021 is as follows:

	Lease impairments		Asset write-downs	Severance	Other restructuring costs	Total
Balance as of December 31, 2020	$	—	—	11,576	729	12,305
Provision
Global Ceramic segment	226		1,316	—	456	1,998
Flooring NA segment	(37)		9,161	52	5,171	14,347
Flooring ROW segment	—		(516)	(938)	587	(867)
Corporate	—		—	276	—	276
Total provision	189		9,961	(610)	6,214	15,754
Cash payments	—		—	(6,077)	(6,393)	(12,470)
Non-cash items	(189)		(9,961)	(265)	(526)	(10,941)
Balances as of July 3, 2021	$	—	—	4,624	24	4,648
Provision amounts recorded in:
Cost of sales	$	—	9,690	(147)	5,896	15,439
Selling, general and administrative expenses	189		271	(463)	318	315
Total provision	$	189	9,961	(610)	6,214	15,754

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