Restructuring, acquisition and integration-related costs

6 Months Ended

Jun. 29, 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 and six months ended June 29, 2019 and June 30, 2018:



	Three Months Ended			Six Months Ended
	June 29, 2019		June 30, 2018	June 29, 2019	June 30, 2018
Cost of sales
Restructuring costs⁽¹⁾	$	4,379	9,331	35,913	23,421
Acquisition integration-related costs	1,488		2,687	2,556	3,095
Restructuring and acquisition integration-related costs	$	5,867	12,018	38,469	26,516

Selling, general and administrative expenses
Restructuring costs ⁽¹⁾	$	443	3,798	1,845	7,890
Acquisition transaction-related costs	637		63	917	63
Acquisition integration-related costs	1,988		163	3,407	3,677
Restructuring, acquisition transaction and integration-related costs	$	3,068	4,024	6,169	11,630

(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 six months ended June 29, 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	—			21,791		1,127		8,032		30,950
Provision - Flooring ROW segment	—			86		1,843		—		1,929
Cash payments	(173		)	—		(8,688	)	(7,921	)	(16,782	)
Non-cash items	—			(21,877	)	(13	)	(111	)	(22,001	)
Balance as of June 29, 2019	$	224		—		7,014		250		7,488

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