Restructuring, acquisition and integration-related costs

3 Months Ended

Mar. 30, 2019

Restructuring and Related Activities [Abstract]

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 30, 2019 and March 31, 2018:



	Three Months Ended
	March 30, 2019		March 31, 2018
Cost of sales
Restructuring costs⁽¹⁾	$	31,535	14,090
Acquisition integration-related costs	1,067		408
Restructuring and acquisition integration-related costs	$	32,602	14,498

Selling, general and administrative expenses
Restructuring costs ⁽¹⁾	$	1,402	4,092
Acquisition transaction-related costs	280		—
Acquisition integration-related costs	1,419		3,514
Restructuring, acquisition transaction and integration-related costs	$	3,101	7,606

(1) The restructuring costs for 2019 and 2018 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 30, 2019 is as follows:



	Lease impairments			Asset write-downs		Severance		Other restructuring costs		Total
Balance as of December 31, 2018	$	397		—		7,866		250		8,513
Provision - Global Ceramic segment	—			—		4,879		—		4,879
Provision - Flooring NA segment	—			23,688		598		3,313		27,599
Provision - Flooring ROW segment	—			—		459		—		459
Cash payments	(145		)	—		(2,733	)	(3,313	)	(6,191	)
Non-cash items	—			(23,688	)	(17	)	—		(23,705	)
Balance as of March 30, 2019	$	252		—		11,052		250		11,554

The Company expects the remaining severance and other restructuring costs to be paid over the next 12 months.