ACCRUED LIABILITIES

3 Months Ended

Mar. 31, 2025

9. ACCRUED LIABILITIES

Accrued liabilities consist of the following:


	March 31,		December 31,
	2025		2024
Compensation and fringe benefits	$	12,174	$	13,134
Warranty reserve		2,050		1,966
Income taxes payable		1,106		1,472
Operating lease liabilities – current		5,183		5,088
Finance lease obligations – current		457		448
Contract liabilities		2,674		2,292
Restructuring related accruals		1,145		—
Other accrued expenses		7,639		5,821
	$	32,428	$	30,221

In line with the Company’s Simplify to Accelerate NOW strategy, during the first quarter of 2025, the Company began to create a state-of-the-art Machining Center of Excellence at the facility in Dothan, Alabama. Assembly operations from Dothan have begun to be merged into facilities in Tulsa, Oklahoma and Reynosa, Mexico.

Costs associated with this realignment are expected to be approximately $4 to $5 million and relate primarily to employee severance and other personnel-related expenses. These expenses are expected to be substantially incurred and paid by the end of 2025.

As of March 31, 2025, $1,499 of accrued expenses have been incurred relating to our Simplify to Accelerate NOW initiatives. These expenses are included in acquisition and integration-related costs in the condensed consolidated statement of income and comprehensive income.


	Three months ended
	March 31,
	2025
Beginning balance	$	—
Expenses incurred		1,499
Payments		(354)
Ending balance	$	1,145