ACCRUED LIABILITIES

9 Months Ended

Sep. 30, 2024

9. ACCRUED LIABILITIES

Accrued liabilities consist of the following:


	September 30,		December 31,
	2024		2023
Compensation and fringe benefits	$	13,448	$	17,251
Accrued business acquisition consideration		—		12,638
Warranty reserve		2,036		2,139
Income taxes payable		182		2,483
Operating lease liabilities – current		4,969		5,142
Finance lease obligations – current		439		412
Contract liabilities		1,853		2,137
Contingent consideration – current		—		7,720
Restructuring related accruals		922		—
Other accrued expenses		8,443		6,566
	$	32,292	$	56,488

In the second quarter of 2024, the Company began to implement the Simplify to Accelerate NOW program. This included initiatives to realign the Company’s manufacturing footprint and streamline the organization to enhance operational efficiency and drive profitability. The costs associated with this program are expected to be between approximately $1.9 million and $2.4 million, primarily related to employee severance and related expenses.

The restructuring related accruals as of September 30, 2024 are expected to be substantially paid out by the end of 2024 and primarily relate to employee severance related expenses. Restructuring and business realignment costs of $479 and $1,948 are included within business development in the condensed consolidated statement of income and comprehensive income for the three and nine months ended September 30, 2024, respectively. For the nine months ended September 30, 2024, changes in restructuring related accruals are as follows (in thousands):


	Nine months ended
	September 30,
	2024
Beginning balance	$	—
Expenses incurred		1,948
Payments		(1,026)
Ending balance	$	922