Severance Costs

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

We incurred severance costs during 2023 due to the reduction of headcount, as we shift our business to a more capital-light model. Severance costs are recorded in selling and administrative expenses in the condensed consolidated statements of operations, with an immaterial amount recorded in cost of sales, and in accrued salaries, wages, and employee benefits in our condensed consolidated balance sheets. Severance costs were immaterial during the three and six months ended June 30, 2024.

Severance costs in our condensed consolidated statements of operations were as follows (in thousands):


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Direct-to-Consumer	$	756	$	1,127
Licensing	36		53
Digital Subscriptions and Content	—		39
Corporate	10		1,221
Total	$	802	$	2,440

The following is a reconciliation of the beginning and ending severance costs balances recorded in accrued salaries, wages, and employee benefits in our condensed consolidated balance sheets (in thousands):


	Employee Separation Costs
Balance at December 31, 2023	$	1,184
Costs incurred and charged to expense	169
Costs paid or otherwise settled	(1,157)
Balance at June 30, 2024	$	196