7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following table summarizes accrued expenses and other current liabilities as of December 31, 2015 and 2014:



	December 31,
	2015		2014

	(in thousands)
Accrued compensation and benefits	$	20,973	$	23,824
Professional services		15,019		16,212
Fulfillment, freight and duties		14,776		12,110
Accrued rent and occupancy		7,639		9,675
Sales/use and VAT tax payable		7,018		5,897
Accrued loss on disposal group (1)		6,743		-
Customer deposits		3,236		3,075
Dividend payable		3,000		3,067
Travel and entertainment liabilities		2,150		199
Accrued legal liabilities		1,971		2,150
Deferred revenue and royalties payable		1,430		2,005
Other (2)		7,880		2,002
Total accrued expenses and other current liabilities	$	91,835	$	80,216

(1)

This amount represents accrued losses related to the South Africa disposal group held for sale and is inclusive of $6.7 million in foreign currency translation adjustments recorded within stockholders’ equity.

(2)

The amounts in ‘Other’ consist of various accrued expenses, of which no individual item accounted for more than 5% of the total balance as of December 31, 2015 or 2014.

Asset Retirement Obligations

Crocs records a liability equal to the fair value of the estimated future cost to retire an asset, if the liability’s fair value can be reasonably estimated. Crocs’ asset retirement obligation (“ARO”) liabilities are primarily associated with the disposal of property and equipment that the Company is contractually obligated to remove at the end of certain retail and office leases in order to restore the facilities back to original condition as specified in the related lease agreements. Crocs estimates the fair value of these liabilities based on current store closing costs and discounts the costs back as if they were to be performed at the inception of the lease. At the inception of such leases, Crocs records the ARO as a liability and also records a related asset in an amount equal to the estimated fair value of the obligation. The capitalized asset is then depreciated on a straight-line basis over the useful life of the asset. Upon retirement of the ARO liability, any difference between the actual retirement costs incurred and the previously recorded estimated ARO liability is recognized as a gain or loss in the consolidated statements of operations. Crocs’ ARO liability as of December 31, 2015 and 2014 was $2.0 million and $2.2 million, respectively.