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 1, 2017 and July 2, 2016:



	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017	July 2, 2016
Cost of sales
Restructuring costs^(a)	$	12,165	2,798		15,063	7,824
Acquisition integration-related costs	863		(20	)	777	802
Restructuring and integration-related costs	$	13,028	2,778		15,840	8,626

Selling, general and administrative expenses
Restructuring costs ^(a)	$	1,163	1,473		1,290	1,700
Acquisition transaction-related costs	212		—		212	—
Acquisition integration-related costs	1,475		1,769		2,514	2,736
Restructuring, acquisition and integration-related costs	$	2,850	3,242		4,016	4,436

(a) The restructuring costs for 2017 and 2016 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.

The restructuring activity for the six months ended July 1, 2017 is as follows:



	Lease impairments			Asset write-downs			Severance		Other restructuring costs		Total
Balance as of December 31, 2016	$	—		$	—		5,183		6,243		11,426
Provision - Global Ceramic segment	492			—			261		11		764
Provision - Flooring NA segment	316			6,849			—		6,191		13,356
Provision - Flooring ROW segment	—			584			644		1,005		2,233
Cash payments	(213		)	(124		)	(4,873	)	(12,231	)	(17,441	)
Non-cash items	—			(7,309		)	45		(88	)	(7,352	)
Balance as of July 1, 2017	$	595		$	—		1,260		1,131		2,986

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