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 March 31, 2018 and April 1, 2017:



	Three Months Ended
	March 31, 2018		April 1, 2017
Cost of sales
Restructuring costs^(a)	$	14,090	2,898
Acquisition integration-related costs	408		(86	)
Restructuring and integration-related costs	$	14,498	2,812

Selling, general and administrative expenses
Restructuring costs ^(a)	$	4,092	127
Acquisition integration-related costs	3,514		1,039
Restructuring, acquisition and integration-related costs	$	7,606	1,166

(a) The restructuring costs for 2018 and 2017 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 three months ended March 31, 2018 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs and currency translation		Total
Balance as of December 31, 2017	$	359		—		584		152		1,095
Provision - Global Ceramic segment	—			—		2,882		(117	)	2,765
Provision - Flooring NA segment	236			572		4,815		9,703		15,326
Provision - Flooring ROW segment	—			—		91		—		91
Cash payments	(182		)	—		(3,408	)	(9,708	)	(13,298	)
Non-cash items	—			(572	)	8		93		(471	)
Balance as of March 31, 2018	$	413		—		4,972		123		5,508

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