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 nine months ended October 1, 2016 and October 3, 2015:



	Three Months Ended			Nine Months Ended
	October 1, 2016		October 3, 2015	October 1, 2016	October 3, 2015
Cost of sales
Restructuring costs^(a)	$	16,716	5,828	24,540	26,135
Acquisition integration-related costs	743		1,463	1,546	3,473
Restructuring and integration-related costs	$	17,459	7,291	26,086	29,608

Selling, general and administrative expenses
Restructuring costs ^(a)	$	2,060	150	3,760	1,231
Acquisition transaction-related costs	—		2,725	—	7,403
Acquisition integration-related costs	1,828		2,604	4,563	5,542
Restructuring, acquisition and integration-related costs	$	3,888	5,479	8,323	14,176

(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 and nine months ended October 3, 2015, restructuring costs included accelerated depreciation of $1,080 and $8,650, respectively.

The restructuring activity for the nine months ended October 1, 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			331		79		1,205
Provision - Flooring NA segment	9,852			3,600		12,880		26,332
Provision - Flooring ROW segment	243			1,220		(700	)	763
Cash payments	—			(9,158	)	(4,288	)	(13,446	)
Non-cash items	(10,890		)	68		(1,233	)	(12,055	)
Balance as of October 1, 2016	$	—		5,026		7,803		12,829

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