OTHER

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventory

The components of inventory are as follows:


	December 31,
	2024		2023
	(in thousands)
Finished goods	$	192,480	$	180,860
Work in process	62		106
Raw materials	9,866		7,681
Total	$	202,408	$	188,647

Property and equipment

Property and equipment (including finance leases) consist of:


	December 31,
	2024		2023
	(in thousands)
Machinery, furniture and equipment	$	83,622	$	80,140
Leasehold improvements	39,377		38,962
Computer hardware and software	39,154		38,408
Building and improvements	983		960
Construction in progress	381		569
Land	100		100
Total	163,617		159,139
Less: accumulated depreciation and amortization	(148,568)		(142,169)
Total	$	15,049	$	16,970

Depreciation and amortization expense of property and equipment for the years ended December 31, 2024, 2023 and 2022 was $6.7 million, $4.7 million and $5.0 million, respectively.

Accrued expenses

Accrued expenses consist of:


	December 31,
	2024		2023
	(in thousands)
Customer allowances and rebates	$	25,527	$	29,162
Compensation and benefits	13,286		12,434
Vendor invoices	9,677		10,504
Freight	5,912		5,627
Wallace facility remediation	980		5,640
Royalties	5,598		5,104

Professional fees	2,628		2,284
Interest	1,026		1,740
Other non-income tax liabilities	1,164		555
Commissions	646		622


Other	4,404		4,684
Total	$	70,848	$	78,356

Customer allowances and rebates, includes estimated variable consideration related to certain advertising, sales incentives and promotional deductions, volume rebates as well as allowances for returns.

Other long-term liabilities

Other long-term liabilities consist of:


	December 31,
	2024		2023
	(in thousands)
Retirement benefit obligations	$	4,315	$	5,063
Wallace facility remediation(1)	4,457		—
Other non-income tax liabilities	3,075		3,156




Other long-term obligations	4,108		907

Total	$	15,955	$	9,126

(1) The Wallace facility remediation liability was classified within accrued expenses in the Company’s Consolidated Balance Sheet at December 31, 2023. Based on current estimates of the project timeline a portion of the liability is classified within other long-term liabilities in the Company’s Consolidated Balance Sheet at December 31, 2024.

Supplemental disclosure of cash flow information


	Year Ended December 31,
	2024		2023		2022
			(in thousands)

Cash paid for interest	$	19,961	$	18,626	$	15,421
Cash paid for taxes, net of refunds	5,962		8,054		9,757

Components of accumulated other comprehensive loss, net


	Year Ended December 31,
	2024		2023		2022
			(in thousands)
Accumulated translation adjustment:
Balance at beginning of year	$	(32,614)	$	(36,072)	$	(31,752)
Translation adjustment during period	78		3,458		(4,320)
Amount reclassified from accumulated other comprehensive loss (1)	14,152		—		—
Translation Adjustment	14,230		3,458		(4,320)
Balance at end of year	$	(18,384)	$	(32,614)	$	(36,072)
Accumulated deferred gains (losses) on cash flow hedges:
Balance at beginning of year	$	(134)	$	923	$	78
Change in unrealized gains (losses)	199		(527)		2,126
Amounts reclassified from accumulated other comprehensive loss: (2)
Settlement of cash flow hedges	182		(530)		(1,281)
Net change in cash flow hedges, net of taxes of $12, $(30) and $(190)	381		(1,057)		845
Balance at end of year	$	247	$	(134)	$	923
Accumulated effect of retirement benefit obligations:
Balance at beginning of year	$	(751)	$	(705)	$	(1,875)
Change in retirement benefit obligations, net of tax of $(173), $31 and $(359)	519		(93)		1,054
Amount reclassified from accumulated other comprehensive loss:(3)
Amortization of loss, net of tax of $(17), $(16) and $(39)	54		47		116
Net effects of retirement benefit obligations	573		(46)		1,170
Balance at end of year	$	(178)	$	(751)	$	(705)
Total accumulated other comprehensive loss at end of period	$	(18,315)	$	(33,499)	$	(35,854)

(1)Amount is recorded in equity in losses on the consolidated statements of operations.

(2)Amounts are recorded in interest expense and cost of goods sold on the consolidated statements of operations.

(3)Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations.

LIFETIME BRANDS, INC 10-K