Restructuring, Acquisition and Integration-Related Costs

9 Months Ended

Sep. 28, 2024

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 and 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 September 28, 2024 and September 30, 2023:

	Three Months Ended			Nine Months Ended
(In millions)	September 28, 2024		September 30, 2023	September 28, 2024	September 30, 2023
Cost of sales:
Restructuring costs	$	16.4	42.6	57.0	101.2
Acquisition integration-related costs	—		0.1	—	1.0
Restructuring and acquisition integration-related costs	$	16.4	42.7	57.0	102.2
Selling, general and administrative expenses:
Restructuring costs	$	3.0	1.1	10.4	6.9
Acquisition transaction-related costs	—		0.7	0.2	2.0
Acquisition integration-related costs	0.1		2.6	1.1	9.8
Restructuring, acquisition transaction and integration-related costs	$	3.1	4.4	11.7	18.7

During 2022 and 2023, the Company implemented a number of restructuring actions, productivity initiatives and manufacturing enhancements focused on reducing costs to enhance future performance, including certain facility, asset and product rationalizations and workforce reductions. In 2024, the Company announced further restructuring actions to take advantage of additional opportunities related to the activities described above.

The following table summarizes the restructuring activities for the three months ended September 28, 2024:

(In millions)	Lease impairments		Asset Write- Downs and (Gains) on Disposals, net	Severance	Other Restructuring Costs	Total
Balance as of June 29, 2024	$	—	—	16.3	—	16.3
Restructuring costs
Global Ceramic	0.8		3.3	1.0	2.2	7.3
Flooring NA	—		2.9	0.5	4.7	8.1
Flooring ROW	—		3.3	0.7	0.1	4.1
Corporate	—		—	(0.1)	—	(0.1)
Total restructuring costs	0.8		9.5	2.1	7.0	19.4
Cash payments	—		0.5	(6.3)	(6.5)	(12.3)
Non-cash items	(0.8)		(10.0)	0.5	(0.5)	(10.8)
Balances as of September 28, 2024	$	—	—	12.6	—	12.6
Restructuring costs recorded in:
Cost of sales	$	—	9.2	1.1	6.1	16.4
Selling, general and administrative expenses	0.8		0.3	1.0	0.9	3.0
Total restructuring costs	$	0.8	9.5	2.1	7.0	19.4

The following table summarizes the restructuring activities for the nine months ended September 28, 2024:

(In millions)	Lease impairments		Asset Write- Downs and (Gains) on Disposals, net	Severance	Other restructuring costs	Total
Balances as of December 31, 2023	$	—	—	12.1	—	12.1
Restructuring costs
Global Ceramic	0.8		12.5	6.5	2.2	22.0
Flooring NA	—		4.6	0.6	7.5	12.7
Flooring ROW	—		24.3	7.7	0.5	32.5
Corporate	—		—	0.2	—	0.2
Total restructuring costs	0.8		41.4	15.0	10.2	67.4
Cash payments	—		0.5	(14.6)	(9.6)	(23.7)
Non-cash items	(0.8)		(41.9)	0.1	(0.6)	(43.2)
Balances as of September 28, 2024	$	—	—	12.6	—	12.6
Restructuring costs recorded in:
Cost of sales	$	—	41.1	7.8	8.1	57.0
Selling, general and administrative expenses	0.8		0.3	7.2	2.1	10.4
Total restructuring costs	$	0.8	41.4	15.0	10.2	67.4

The Company currently estimates that it will incur additional restructuring costs of approximately $75-$90 million primarily related to asset write-downs and other restructuring related costs, which are expected to be executed throughout 2025 and into 2026.

As of September 28, 2024, the accrual balance related to restructuring activities was $4.8 million for plans approved prior to 2024 and $7.8 million for plans approved during 2024.

For the plans approved prior to 2024, restructuring expenses of $4.9 million and $17.3 million were recorded during the three and nine months ended September 28, 2024, respectively. For the plans approved during 2024, restructuring expenses of $14.5 million and $50.1 million were recorded during the three and nine months ended September 28, 2024, respectively.

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