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 July 4, 2015 and June 28, 2014:



	Three Months Ended					Six Months Ended
	July 4, 2015				June 28, 2014	July 4, 2015		June 28, 2014
Cost of sales
Restructuring costs	$	10,463		(a)	3,475	20,307	(a)	5,534
Acquisition integration-related costs	1,878				3,280	2,010		6,858
Restructuring and integration-related costs	$	12,341			6,755	22,317		12,392

Selling, general and administrative expenses
Restructuring costs	$	(92	)	(a)	615	1,081	(a)	3,217
Acquisition transaction-related costs	3,701				—	4,678		—
Acquisition integration-related costs	2,535				3,799	2,938		7,285
Restructuring, acquisition and integration-related costs	$	6,144			4,414	8,697		10,502

(a) The restructuring costs for 2015 and 2014 primarily relate to the Company's actions taken to lower its cost structure and improve efficiencies of manufacturing and distribution operations as the Company adjusted to changing economic conditions as well as actions related to the Company's acquisitions of the IVC Group, the KAI Group, Marazzi and Spano. During the three and six months ended July 4, 2015, restructuring costs included accelerated depreciation of $3,210 and $7,570, respectively.

The restructuring activity for the six months ended July 4, 2015 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2014	$	1,741		—		3,037		100		4,878
Provision - Global Ceramic segment	—			1,141		—		(824	)	317
Provision - Flooring NA segment	1,877			5,416		1,700		2,487		11,480
Provision - Flooring ROW segment	—			7,587		935		1,070		9,592
Cash payments	(2,437		)	—		(2,814	)	(3,593	)	(8,844	)
Non-cash items	—			(14,144	)	—		824		(13,320	)
Balance as of July 4, 2015	$	1,181		—		2,858		64		4,103

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