Accrued and Other Liabilities (Tables)

6 Months Ended

Jul. 04, 2025

Schedule of Accrued and Other Liabilities

Accrued and Other liabilities in the Consolidated and Condensed Balance Sheets consisted of the following:


	July 4, 2025				December 31, 2024
	Current		Noncurrent		Current		Noncurrent
	(In thousands)
Accrued taxes and deferred tax liabilities	$	49,712	$	158,224	$	46,395	$	151,642
Compensation and related benefits	74,320		53,401		80,451		48,350
Asbestos liability	41,966		231,075		40,779		253,287
Contract liabilities	25,075		—		26,390		—
Lease liabilities	20,893		65,347		21,459		66,042
Warranty liability	13,268		—		12,794		—
Third-party commissions	14,099		—		17,346		—
Restructuring liability	5,606		—		4,732		374
Accrued interest	9,093		—		8,077		—
Other	41,172		67,244		40,135		13,241
	$	295,204	$	575,291	$	298,558	$	532,936

Schedule of Product Warranty Liability

A summary of the activity in the Company’s warranty liability included in Accrued liabilities in the Company’s Consolidated and Condensed Balance Sheets is as follows:


	Six Months Ended
	July 4, 2025		June 28, 2024
	(In thousands)
Warranty liability, beginning of period	$	12,794	$	12,606
Accrued warranty expense	4,428		6,693
Changes in estimates related to pre-existing warranties	697		1,074
Cost of warranty service work performed	(6,125)		(5,529)

Foreign exchange translation effect and other	1,474		(298)
Warranty liability, end of period	$	13,268	$	14,546

Schedule of Restructuring Reserve by Type of Cost

A summary of the activity in the Company’s restructuring liability included in Accrued liabilities and Other liabilities in the Consolidated and Condensed Balance Sheets is as follows:


	Six Months Ended July 4, 2025
	Balance at Beginning of Period		Charges		Payments		Foreign Currency Translation		Balance at End of Period
	(In thousands)
Restructuring and other related charges:
Termination benefits(1)	$	3,845	$	4,401	$	(4,012)	$	691	$	4,925
Facility closure costs and other(2)	1,261		1,488		(1,878)		(190)		681
	$	5,106	$	5,889	$	(5,890)	$	501	$	5,606

(1) Includes severance and other termination benefits, including outplacement services.

(2) Includes the cost of relocating associates, relocating equipment and other costs in connection with the closure and optimization of facilities and product lines.

ESAB Corp 10-Q