Restructuring, Acquisition and Integration-Related Costs

3 Months Ended

Apr. 03, 2021

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 including accelerated depreciation ("Asset write-downs") and workforce reductions.

Restructuring, acquisition transaction and integration-related costs consisted of the following during the three months ended April 3, 2021 and March 28, 2020:


	Three Months Ended
	April 3, 2021		March 28, 2020
Cost of sales
Restructuring costs	$	10,165	11,172

Acquisition integration-related costs	17		610
Restructuring and acquisition integration-related costs	$	10,182	11,782

Selling, general and administrative expenses
Restructuring costs	$	(90)	537
Acquisition transaction-related costs	849		(216)
Acquisition integration-related costs	243		575
Restructuring, acquisition transaction and integration-related costs	$	1,002	896

The restructuring activity for the three months ended April 3, 2021 is as follows:


	Lease impairments		Asset write-downs	Severance	Other restructuring costs	Total
Balances as of December 31, 2020	$	—	—	11,576	729	12,305
Provision
Global Ceramic segment	—		960	—	312	1,272
Flooring NA segment	(37)		5,844	—	3,053	8,860
Flooring ROW segment	—		—	(464)	409	(55)
Corporate	—		—	(2)	—	(2)
Total provision	(37)		6,804	(466)	3,774	10,075
Cash payments	—		—	(2,795)	(3,930)	(6,725)
Non-cash items	37		(6,804)	(342)	(298)	(7,407)
Balances as of April 3, 2021	$	—	—	7,973	275	8,248

Provision amounts recorded in:
Cost of sales	$	—	6,751	(211)	3,625	10,165
Selling, general and administrative expenses	(37)		53	(255)	149	(90)
Total provision	$	(37)	6,804	(466)	3,774	10,075

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