Restructuring, Acquisition and Integration-Related Costs

3 Months Ended

Apr. 02, 2022

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 months ended April 2, 2022 and April 3, 2021:

	Three Months Ended
	April 2 2022		April 3 2021
Cost of sales
Restructuring costs	$	898	10,165
Acquisition integration-related costs	40		17
Restructuring and acquisition integration-related costs	$	938	10,182
Selling, general and administrative expenses
Restructuring costs	$	—	(90)
Acquisition transaction-related costs	696		849
Acquisition integration-related costs	284		243
Restructuring, acquisition transaction and integration-related costs	$	980	1,002

The restructuring activity for the three months ended April 2, 2022 is as follows:

	Severance		Other restructuring costs	Total
Balances as of December 31, 2021	$	1,634	995	2,629
Restructuring costs
Flooring NA Segment	—		105	105
Flooring ROW Segment	—		793	793
Total restructuring costs	—		898	898
Cash payments	(875)		(970)	(1,845)
Non-cash items	(15)		(904)	(919)
Balances as of April 2, 2022	$	744	19	763
Restructuring costs recorded in:
Cost of sales	$	—	898	898
Total restructuring costs	$	—	898	898

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