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 including accelerated depreciation and workforce reductions.

Restructuring, acquisition transaction and integration-related costs consisted of the following during the year ended December 31, 2018, 2017 and 2016, respectively (in thousands):



	2018		2017	2016
Cost of sales
Restructuring costs	$	43,733	33,109	33,582
Acquisition integration-related costs	3,330		2,916	4,722
Restructuring and integration-related costs	$	47,063	36,025	38,304

Selling, general and administrative expenses
Restructuring costs	$	15,259	3,976	4,881
Acquisition transaction-related costs	4,977		2,751	—
Acquisition integration-related costs	11,351		6,188	7,438
Restructuring, acquisition and integration-related costs	$	31,587	12,915	12,319

The restructuring activity for the years ended December 31, 2018 and 2017, respectively is as follows (in thousands):



	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			—		1,082		(32	)	1,542
Provision - Flooring NA segment	316			6,849		2,500		22,131		31,796
Provision - Flooring ROW segment	—			650		1,518		1,465		3,633
Provision - Corporate	—			—		—		114		114
Cash payments	(449		)	(190	)	(9,469	)	(29,725	)	(39,833	)
Non-cash items	—			(7,309	)	(230	)	(44	)	(7,583	)
Balance as of December 31, 2017	359			—		584		152		1,095
Provision - Global Ceramic segment	528			1,131		7,113		337		9,109
Provision - Flooring NA segment	236			2,940		4,985		33,807		41,968
Provision - Flooring ROW segment	—			—		4,741		(104	)	4,637
Provision - Corporate	—			—		3,278		—		3,278
Cash payments	(726		)	—		(12,605	)	(30,385	)	(43,716	)
Non-cash items	—			(4,071	)	(230	)	(3,557	)	(7,858	)
Balance as of December 31, 2018	$	397		—		7,866		250		8,513

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