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 six months ended June 28, 2014 and June 29, 2013:



	Three Months Ended			Six Months Ended
	June 28, 2014		June 29, 2013	June 28, 2014	June 29, 2013
Cost of sales
Restructuring costs	$	3,475	11,324	5,534	14,330
Acquisition integration-related costs	3,280		3,010	6,858	3,345
Restructuring and integration-related costs	$	6,755	14,334	12,392	17,675

Selling, general and administrative expenses
Restructuring costs	$	615	8,843	3,217	14,059
Acquisition transaction-related costs	—		13,812	—	13,812
Acquisition integration-related costs	3,799		4,331	7,285	5,630
Restructuring, acquisition and integration-related costs	$	4,414	26,986	10,502	33,501

The restructuring activity for the six months ended June 28, 2014 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2013	$	5,904		—		18,144		—		24,048
Provision - Ceramic segment	—			1,220		738		(224	)	1,734
Provision - Laminate and Wood segment	—			—		2,047		4,970		7,017
Cash payments	(2,744		)	—		(12,757	)	(4,943	)	(20,444	)
Non-cash items	—			(1,220	)	—		224		(996	)
Balance as of June 28, 2014	$	3,160		—		8,172		27		11,359

The Company expects the remaining lease impairments, severance and other restructuring costs to be paid over the next five years.