ACCRUED LIABILITIES

9 Months Ended

Sep. 30, 2025

9. ACCRUED LIABILITIES

Accrued liabilities consist of the following:


	September 30,		December 31,
	2025		2024
Compensation and fringe benefits	$	17,865	$	13,134
Warranty reserve		2,286		1,966
Income taxes payable		881		1,472
Operating lease liabilities – current		5,360		5,088
Finance lease obligations – current		476		448
Contract liabilities		3,198		2,292
Restructuring related accruals		1,139		—
Other accrued expenses		8,097		5,821
	$	39,302	$	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.

Restructuring expenses for this initiative, which are included in restructuring and business realignment costs in the condensed consolidated statement of income and comprehensive income, are as follows:



	Restructuring
	related accruals

December 31, 2024	$	—
Expenses incurred		1,499
Cash payments		(354)
March 31, 2025		1,145
Expenses incurred		1,122
Cash payments		(657)
June 30, 2025		1,610
Expenses incurred		836
Cash payments		(1,307)
September 30, 2025	$	1,139