Restructuring, Acquisition and Integration-Related Costs

6 Months Ended

Jul. 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 and six months ended July 2, 2022 and July 3, 2021:

	Three Months Ended			Six Months Ended
	July 2 2022		July 3 2021	July 2 2022	July 3 2021
Cost of sales
Restructuring costs	$	403	5,273	1,301	15,439
Acquisition integration-related costs	309		26	349	43
Restructuring and acquisition integration-related costs	$	712	5,299	1,650	15,482
Selling, general and administrative expenses
Restructuring costs	$	86	406	86	315
Acquisition transaction-related costs	330		895	1,027	1,744
Acquisition integration-related costs	770		180	1,054	423
Restructuring, acquisition transaction and integration-related costs	$	1,186	1,481	2,167	2,482

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

	Asset write-downs (gains on disposals)		Severance	Other restructuring costs	Total
Balances as of April 2, 2022	$	—	744	19	763
Restructuring costs
Flooring NA Segment	(86)		—	(154)	(240)
Flooring ROW Segment	—		—	729	729
Total restructuring costs	(86)		—	575	489
Cash payments	—		(304)	(748)	(1,052)
Non-cash items	86		(10)	154	230
Balances as of July 2, 2022	$	—	430	—	430
Restructuring costs recorded in:
Cost of sales	$	(86)	—	489	403
Selling, general and administrative expenses	—		—	86	86
Total restructuring costs	$	(86)	—	575	489

The restructuring activity for the six months ended July 2, 2022 is as follows:

	Asset write-downs (gains on disposals)		Severance	Other restructuring costs	Total
Balances as of December 31, 2021	$	—	1,634	995	2,629
Restructuring costs
Flooring NA Segment	(86)		—	(49)	(135)
Flooring ROW Segment	—		—	1,522	1,522
Total restructuring costs	(86)		—	1,473	1,387
Cash payments	—		(1,179)	(1,718)	(2,897)
Non-cash items	86		(25)	(750)	(689)
Balances as of July 2, 2022	$	—	430	—	430
Restructuring costs recorded in:
Cost of sales	$	(86)	—	1,387	1,301
Selling, general and administrative expenses	—		—	86	86
Total restructuring costs	$	(86)	—	1,473	1,387

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