Restructuring, Acquisition and Integration-Related Costs

9 Months Ended

Oct. 02, 2021

Restructuring and Related Activities [Abstract]

Restructuring, Acquisition and Integration-Related Costs

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 and nine months ended October 2, 2021 and September 26, 2020:

	Three Months Ended			Nine Months Ended
	October 2 2021		September 26 2020	October 2 2021	September 26 2020
Cost of sales
Restructuring costs	$	246	17,711	15,685	78,383
Acquisition integration-related costs	306		(1)	349	1,153
Restructuring and acquisition integration-related costs	$	552	17,710	16,034	79,536
Selling, general and administrative expenses
Restructuring costs	$	(89)	8,627	226	21,704
Acquisition transaction-related costs	184		—	1,928	(210)
Acquisition integration-related costs	426		137	849	1,702
Restructuring, acquisition transaction and integration-related costs	$	521	8,764	3,003	23,196

The restructuring activity for the three months ended October 2, 2021 is as follows:

	Lease impairments		Asset write-downs (gains on disposals)	Severance	Other restructuring costs	Total
Balances as of July 3, 2021	$	—	—	4,624	24	4,648
Restructuring costs
Global Ceramic segment	—		63	133	16	212
Flooring NA segment	—		(1,347)	(336)	3,079	1,396
Flooring ROW segment	—		(1,455)	(34)	119	(1,370)
Corporate	—		—	(81)	—	(81)
Total restructuring costs	—		(2,739)	(318)	3,214	157
Cash payments	—		—	(1,218)	(3,204)	(4,422)
Non-cash items	—		2,739	(64)	(9)	2,666
Balances as of October 2, 2021	$	—	—	3,024	25	3,049
Restructuring costs recorded in:
Cost of sales	$	—	(2,739)	(223)	3,208	246
Selling, general and administrative expenses	—		—	(95)	6	(89)
Total restructuring costs	$	—	(2,739)	(318)	3,214	157

The restructuring activity for the nine months ended October 2, 2021 is as follows:

	Lease impairments		Asset write-downs (gains on disposals)	Severance	Other restructuring costs	Total
Balance as of December 31, 2020	$	—	—	11,576	729	12,305
Restructuring costs
Global Ceramic segment	226		1,379	133	472	2,210
Flooring NA segment	(37)		7,814	(284)	8,250	15,743
Flooring ROW segment	—		(1,971)	(972)	706	(2,237)
Corporate	—		—	195	—	195
Total restructuring costs	189		7,222	(928)	9,428	15,911
Cash payments	—		—	(7,295)	(9,597)	(16,892)
Non-cash items	(189)		(7,222)	(329)	(535)	(8,275)
Balances as of October 2, 2021	$	—	—	3,024	25	3,049
Restructuring costs recorded in:
Cost of sales	$	—	6,951	(370)	9,104	15,685
Selling, general and administrative expenses	189		271	(558)	324	226
Total restructuring costs	$	189	7,222	(928)	9,428	15,911

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