6. Accrued Expenses and Other Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	June 30,		December 31,
	2017		2016
Accrued payroll and related items	$	3,515	$	4,239
Artist payables		3,310		3,982
Accrued product costs		1,172		1,566
Accrued marketing		863		1,456
Contingent liabilities		1,080		—
Other		3,305		3,774
Accrued expenses and other current liabilities	$	13,245	$	15,017

Other long-term liabilities consisted of the following (in thousands):


	June 30,		December 31,
	2017		2016
Accrued rent	$	1,436	$	1,503
Contingent liabilities		1,934		—
Other		103		243
Other liabilities	$	3,473	$	1,746

As part of the acquisition of Deny Designs, as described in Note 11, contingent consideration of up to $3.6 million is payable annually in three equal installments on the first through third anniversary of the closing date. The contingent consideration is valued at $3.0 million as of the acquisition date based on time value, discount rate, and the estimated probability of achieving the contingent criteria related to the ongoing development of new products for sale, as specified in the purchase agreement. Such amounts will be adjusted at each subsequent period based on probability of achievement until settlement of such liability. Adjustments to the liability will be recorded to income or expense in our condensed statement of operations. The estimated amount payable upon the first year anniversary is included in accrued expenses and other current liabilities, and estimated amounts payable upon the second and third anniversaries are included in other liabilities in our condensed consolidated balance sheets.

During the six months ended June 30, 2016, we recognized severance costs of $1.7 million in connection with targeted headcount reductions, primarily as a result of actions taken in June 2016 to streamline our content publishing studio and better integrate this business into our broader Media segment. These severance costs related to our Media segment and were recognized in the condensed consolidated statements of operations as follows: $0.7 million in sales and marketing costs, $0.6 million in product development costs, $0.3 million in service costs, and $0.1 million in general and administrative costs. As of June 30, 2016, there was $1.0 million of accrued severance costs included in accrued expenses and other current liabilities in the condensed consolidated balance sheet. The remaining severance accrual was paid during the third quarter of 2016.