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BUSINESS REALIGNMENT ACTIVITIES
 3 Months Ended
Oct. 03, 2021
Restructuring and Related Activities [Abstract]  
Business Realignment Activities BUSINESS REALIGNMENT ACTIVITIESWe periodically undertake business realignment activities designed to increase our efficiency and focus our business in support of our key growth strategies. Costs associated with business realignment activities are classified in our Consolidated Statements of Income as follows:
Three Months EndedNine Months Ended
October 3, 2021September 27, 2020October 3, 2021September 27, 2020
Cost of sales$213 $— $5,250 $— 
Selling, marketing and administrative expense2,819 — 5,795 2,645 
Business realignment costs (benefits)365 — 2,748 (475)
Costs associated with business realignment activities$3,397 $— $13,793 $2,170 
Costs recorded by program during the nine months ended October 3, 2021 and September 27, 2020 related to these activities were as follows:
Three Months EndedNine Months Ended
October 3, 2021September 27, 2020October 3, 2021September 27, 2020
International Optimization Program:
Severance$377 $— $3,199 $— 
Other program costs3,020 — 10,594 — 
Margin for Growth Program:
Severance— — — (653)
Other program costs— — — 2,823 
Total$3,397 $— $13,793 $2,170 
The following table presents the liability activity for costs qualifying as exit and disposal costs for the nine months ended October 3, 2021:
Total
Liability balance at December 31, 2020 (1)
$12,748 
2021 business realignment charges (2)
6,828 
Cash payments
(18,767)
Liability balance at October 3, 2021 (1)
$809 
(1)The liability balances reflected above are reported within accrued liabilities and other long-term liabilities.
(2)The costs reflected in the liability roll-forward represent employee-related and certain third-party service provider charges.
2020 International Optimization Program
In the fourth quarter of 2020, we commenced a program (“International Optimization Program”) to streamline resources and investments in select international markets, including the optimization of our China operating model that will improve our operational efficiency and provide for a strong, sustainable and simplified base going forward.
The International Optimization Program is expected to be completed by mid-2022, with total pre-tax costs anticipated to be $50,000 to $75,000. Cash costs are expected to be $40,000 to $65,000, primarily related to workforce reductions of approximately 350 positions outside of the United States, costs to consolidate and relocate production, and third-party costs incurred to execute these activities. The costs and related benefits of the International Optimization Program relate to the International and Other segment. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.
For the three and nine months ended October 3, 2021, we recognized total costs associated with the International Optimization Program of $3,397 and $13,793, respectively. These charges predominantly included third-party charges in support of our initiative to transform our China operating model, as well as severance and employee benefit costs. Since inception, we have incurred pre-tax charges to execute the program totaling $43,136.
Margin for Growth Program
In the first quarter of 2017, the Company’s Board of Directors (“Board”) unanimously approved several initiatives under a single program focused on improving global efficiency and effectiveness, optimizing the Company’s supply chain, streamlining the Company’s operating model and reducing administrative expenses to generate long-term savings. This project was completed in mid-2020.
We recognized total costs of $2,170 associated with the Margin for Growth Program for the six months ended June 28, 2020, at which time the program ended. These charges included employee severance, largely relating to initiatives to improve the cost structure of our corporate operating model as part of optimizing our global supply chain. In addition,
we incurred other program costs, which related primarily to third-party charges in support of our initiative to improve global efficiency and effectiveness.
The costs and related benefits of the Margin for Growth Program relate approximately 63% to the North America segment and 37% to the International and Other segment. However, segment operating results do not include these business realignment expenses because we evaluate segment performance excluding such costs.