12. Other Long-Term Liabilities

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

The Company’s asset retirement obligations (“ARO”) relate to two manufacturing facilities that are leased. One of the properties is the Company’s former manufacturing facility in Grantsville, Utah which was closed in the first quarter of 2025 (For further discussion see Note 3— Restructuring, Impairment and Other Related Charges). The other property is the Company’s current manufacturing facility in McDonough, Georgia. The ARO liabilities represent future estimated costs associated with the restoration of the facilities to their original state at the end of the respective lease terms. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using a credit-adjusted-risk-free interest rate, with a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. These liabilities are accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. Revisions to estimated ARO liabilities result in an adjustment to the related capitalized asset and corresponding liability. Because the Company utilizes unobservable inputs in the estimation of its ARO liabilities, the fair values were determined to be Level 3 under the fair value hierarchy (For further discussion regarding the definition of Level 3 inputs see Note 2— Fair Value Measurements).

The Company had the following activity for its ARO liabilities (in thousands):