Restructuring, Acquisition and Integration-Related Costs

12 Months Ended

Dec. 31, 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 and integration-related costs consisted of the following during the year ended December 31, 2022, 2021 and 2020, respectively (in thousands):

	2022		2021	2020
Cost of sales
Restructuring costs	$	67,621	17,899	101,230
Acquisition integration-related costs	396		497	1,153
Restructuring and acquisition integration-related costs	$	68,017	18,396	102,383
Selling, general and administrative expenses
Restructuring costs	$	9,094	1,301	24,127
Acquisition transaction-related costs	1,654		2,372	213
Acquisition integration-related costs	2,992		1,568	2,127
Restructuring, acquisition transaction and integration-related costs	$	13,740	5,241	26,467

The restructuring activity for the years ended December 31, 2022 and 2021, respectively is as follows (in thousands):

	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	226		1,458	134	808	2,626
Flooring NA	(37)		7,595	(284)	9,614	16,888
Flooring ROW	—		(1,968)	(1,096)	1,538	(1,526)
Corporate	—		1,017	195	—	1,212
Total restructuring costs for 2021	189		8,102	(1,051)	11,960	19,200
Cash payments	—		—	(8,507)	(10,822)	(19,329)
Non-cash items	(189)		(8,102)	(384)	(872)	(9,547)
Balance as of December 31, 2021	—		—	1,634	995	2,629
Restructuring costs
Global Ceramic	—		—	3,365	—	3,365
Flooring NA	—		29,327	741	14,406	44,474
Flooring ROW	—		9,371	12,677	6,828	28,876
Corporate	—		—	—	—	—
Total restructuring costs for 2022	—		38,698	16,783	21,234	76,715
Cash payments	—		—	(8,557)	(21,241)	(29,798)
Non-cash items	—		(38,698)	177	(988)	(39,509)
Balance as of December 31, 2022	$	—	—	10,037	—	10,037
2021 restructuring costs recorded in:
Cost of sales	$	—	6,721	(370)	11,548	17,899
Selling, general and administrative expenses	189		1,381	(681)	412	1,301
Total restructuring costs for 2021	$	189	8,102	(1,051)	11,960	19,200
2022 restructuring costs recorded in:
Cost of sales	$	—	38,698	7,915	21,008	67,621
Selling, general and administrative expenses	—		—	8,868	226	9,094
Total restructuring costs for 2022	$	—	38,698	16,783	21,234	76,715

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