Restructuring, Acquisition and Integration-Related Costs

9 Months Ended

Oct. 01, 2022

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 nine months ended October 1, 2022 and October 2, 2021:

	Three Months Ended			Nine Months Ended
	October 1 2022		October 2 2021	October 1 2022	October 2 2021
Cost of sales
Restructuring costs	$	30,421	246	31,722	15,685
Acquisition integration-related costs	—		306	349	349
Restructuring and acquisition integration-related costs	$	30,421	552	32,071	16,034
Selling, general and administrative expenses
Restructuring costs	$	2,949	(89)	3,035	226
Acquisition transaction-related costs	481		184	1,508	1,928
Acquisition integration-related costs	687		426	1,741	849
Restructuring, acquisition transaction and integration-related costs	$	4,117	521	6,284	3,003

The restructuring activity for the three months ended October 1, 2022 is as follows:

	Asset write-downs (gains on disposals)		Severance	Other restructuring costs	Total
Balances as of July 2, 2022	$	—	430	—	430
Restructuring costs
Global Ceramic Segment	—		3,366	—	3,366
Flooring NA Segment	15,193		870	3,726	19,789
Flooring ROW Segment	5,805		2,611	1,799	10,215
Total restructuring costs	20,998		6,847	5,525	33,370
Cash payments	—		(1,739)	(5,401)	(7,140)
Non-cash items	(20,998)		(34)	(124)	(21,156)
Balances as of October 1, 2022	$	—	5,504	—	5,504
Restructuring costs recorded in:
Cost of sales	$	20,998	3,924	5,499	30,421
Selling, general and administrative expenses	—		2,923	26	2,949
Total restructuring costs	$	20,998	6,847	5,525	33,370

The restructuring activity for the nine months ended October 1, 2022 is as follows:

	Asset write-downs (gains on disposals)		Severance	Other restructuring costs	Total
Balances as of December 31, 2021	$	—	1,634	995	2,629
Restructuring costs
Global Ceramic Segment	—		3,366	—	3,366
Flooring NA Segment	15,107		870	3,677	19,654
Flooring ROW Segment	5,805		2,611	3,321	11,737
Total restructuring costs	20,912		6,847	6,998	34,757
Cash payments	—		(2,918)	(7,119)	(10,037)
Non-cash items	(20,912)		(59)	(874)	(21,845)
Balances as of October 1, 2022	$	—	5,504	—	5,504
Restructuring costs recorded in:
Cost of sales	$	20,912	3,924	6,886	31,722
Selling, general and administrative expenses	—		2,923	112	3,035
Total restructuring costs	$	20,912	6,847	6,998	34,757

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