6. Accrued Liabilities Accrued liabilities consist of the following (in thousands): | | | | | | | | | June 30, 2025 | | December 31, 2024 | Marketing Funds (a) | | $ | 22,503 | | $ | 27,995 | Accrued payroll and related employee costs | | | 8,194 | | | 15,444 | Accrued taxes | | | 1,078 | | | 2,153 | Accrued professional fees | | | 1,548 | | | 960 | Settlements payable (b) | | | 61,268 | | | 60,410 | Other | | | 4,209 | | | 3,897 | | | $ | 98,800 | | $ | 110,859 |
| (a) | Consists primarily of liabilities recognized to reflect the contractual restriction that all funds collected in the Marketing Funds must be spent for designated purposes. See Note 2, Summary of Significant Accounting Policies, for additional information. |
| (b) | Represents the settlement payable as part of the settlements of certain industry class-action lawsuits and other legal settlements. Settlement payables that are transacted in Canadian dollars have been translated into U.S. dollars at the balance sheet date. See Note 11, Commitments and Contingencies, for additional information. |
The following table presents a roll forward of the severance and related costs liability related to a prior reorganization and a prior strategic shift and restructuring of the Company’s business, which is in “Accrued payroll and related employee costs” in the table above (in thousands): | | | | Balance January 1, 2025 | | $ | 1,393 | Severance and other related expenses | | | 2,851 | Cash payments and other | | | (1,249) | Balance, June 30, 2025 | | $ | 2,995 |
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