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 months ended April 2, 2016 and April 4, 2015:



	Three Months Ended
	April 2, 2016		April 4, 2015
Cost of sales
Restructuring costs^(a)	$	5,026	9,844
Acquisition integration-related costs	822		132
Restructuring and integration-related costs	$	5,848	9,976

Selling, general and administrative expenses
Restructuring costs ^(a)	$	227	1,173
Acquisition integration-related costs	967		1,380
Restructuring, acquisition and integration-related costs	$	1,194	2,553

(a) The restructuring costs for 2016 and 2015 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. During the three months ended April 4, 2015, restructuring costs included accelerated depreciation of $4,360.

The restructuring activity for the three months ended April 2, 2016 is as follows:



	Asset write-downs			Severance		Other restructuring costs		Total
Balance as of December 31, 2015	$	—		8,965		1,065		10,030
Provision - Global Ceramic segment	795			—		(100	)	695
Provision - Flooring NA segment	54			—		3,618		3,672
Provision - Flooring ROW segment	—			313		573		886
Cash payments	—			(4,083	)	(4,652	)	(8,735	)
Non-cash items	(849		)	—		(68	)	(917	)
Balance as of April 2, 2016	$	—		5,195		436		5,631

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