Accrued Liabilities an Other Long-term Liabilities

12 Months Ended

Dec. 31, 2023

Accrued Liabilities and Other Liabilities [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES

Accrued liabilities consist of the following (in thousands):

	As of December 31,
	2023		2022
Salaries and benefits	$	52,250	$	44,304
Incentive compensation	37,992		30,254
Operating lease liability-ST	20,161		18,169
Accrued professional fees	2,803		5,317
Field service corrective action(1)	30,281		24,517
Italy medical device payback provision(2)	23,176		7,900
Legal accrual	1,874		3,137
Accrued sales taxes	6,748		5,844
Warranties and returns	3,682		3,097
Deferred revenue	31,640		30,838
Accrued other taxes	3,024		5,794
Distribution fees	13,049		17,063
Accrued freight	17,215		17,988
Restructuring accrual	3,568		5,923
Foreign exchange contracts	2,590		1,847
Accrued audit fees	5,492		6,279
Defined benefit plan	2,575		2,928
Accrued interest	1,431		1,033
Accrued research and development	—		3,538
Other	8,664		6,999
	$	268,215	$	242,769

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(1) Primarily includes field corrective actions associated with certain products in connection with a 2021 Warning Letter received by Smiths Medical from the FDA following an inspection of Smiths Medical's Oakdale, Minnesota Facility, see Note 15: Commitments and Contingencies for further detail.

(2) As of December 31, 2022, there was an additional $12.1 million in payback provision recorded as a reduction to accounts receivable, net. Whereas we recorded the amount for the payback provision to accrued liabilities from accounts receivable in Q3 2023, the payback provision was not reclassified as of December 31, 2022 to conform to the current year presentation.

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

	As of December 31,
	2023		2022
Operating lease liability-LT	$	52,972	$	60,916
Finance lease liability-LT	1,954		1,855
Deferred revenue	10,585		16,239
Benefits	4,207		5,314
Field service corrective action(1)	26,056		25,294
Accrued rent	841		997
Other	3,882		3,489
	$	100,497	$	114,104

_______________________________

(1)     Related to field corrective actions associated with certain products in connection with a 2021 Warning Letter received by Smiths Medical from the FDA following an inspection of Smiths Medical's Oakdale, Minnesota Facility, see Note 15: Commitments and Contingencies for further detail.