NOTE N — OTHER

Inventory

The components of inventory are as follows:


	December 31,
	2017		2016
	(in thousands)
Finished goods	$	129,611	$	132,564
Work in process		1,548		1,521
Raw materials		1,277		1,127

Total	$	132,436	$	135,212

Property and equipment

Property and equipment consist of:


	December 31,
	2017			2016
	(in thousands)
Machinery, furniture and equipment	$	91,282		$	89,545
Leasehold improvements		32,591			30,019
Building and improvements		787			1,622
Construction in progress		3,122			2,639
Land		100			100

		127,882			123,925
Less: accumulated depreciation and amortization		(104,817	)		(102,794	)

Total	$	23,065		$	21,131

Depreciation and amortization expense of property and equipment for the years ended December 31, 2017, 2016, and 2015 was $6.6 million, $8.0 million and $7.2 million, respectively. In 2016, the Company identified and corrected an error in the accumulated depreciation balance relating to certain leasehold improvements at one of its U.S. warehouses. Accordingly, distribution expense for the year ended December 31, 2016 includes $1.2 million of additional depreciation expense to properly reflect the accumulated depreciation balance of these assets as of December 31, 2016.

Included in machinery, furniture and equipment at each of December 31, 2017 and 2016 is $2.0 million and $2.2 million, respectively, related to assets recorded under capital leases. Included in accumulated depreciation and amortization at December 31, 2017 and December 31, 2016 is $1.9 million and $2.0 million, respectively, related to assets recorded under capital leases.

Accrued expenses

Accrued expenses consist of:


	December 31,
	2017		2016
	(in thousands)
Customer allowances and rebates	$	11,662	$	10,787
Compensation and benefits		9,613		13,616
Interest		191		185
Vendor invoices		4,027		5,415
Royalties		1,744		2,095
Commissions		786		947
Freight		4,002		1,684
Professional fees		3,160		1,464
VAT		1,176		648
Contingent consideration related to acquisitions		—		738
HSBC collection receipts ⁽¹⁾		—		3,335
Foreign exchange contracts		1,951		—
Other		5,809		4,298

Total	$	44,121	$	45,212

(1)

Collections received on behalf of HSBC in connection with the Receivable Purchase Agreement.

Deferred rent & other long-term liabilities

Deferred rent & other long-term liabilities consist of:


	December 31,
	2017		2016
	(in thousands)
Deferred rent liability	$	13,399	$	12,213
Retirement benefit obligations		6,829		6,629
Capital lease obligations		21		128
Derivative liability		—		3

Total	$	20,249	$	18,973

Supplemental cash flow information


	Year Ended December 31,
	2017		2016			2015
	(in thousands)
Supplemental disclosure of cash flow information:
Cash paid for interest	$	3,791	$	4,171		$	4,909
Cash paid for taxes		12,936		6,384			8,963

Non-cash investing activities:
Translation adjustment	$	7,823	$	(23,061	)	$	(5,281	)

Components of accumulated other comprehensive loss, net


	Year Ended December 31,
	2017			2016			2015
	(in thousands)

Accumulated translation adjustment:
Balance at beginning of year	$	(35,644	)	$	(12,961	)	$	(7,680	)
Translation adjustment during period		7,823			(23,061	)		(5,281	)
Amounts reclassified from accumulated other comprehensive loss: ⁽¹⁾
Currency translation adjustment		—			378			—

Balance at end of year	$	(27,821	)	$	(35,644	)	$	(12,961	)


Accumulated deferred gains (losses) on cash flow hedges:
Balance at beginning of year	$	(3	)	$	(20	)	$	(18	)
Derivative fair value adjustment, net of tax		17			17			(2	)

Balance at end of year ⁽²⁾	$	14		$	(3	)	$	(20	)


Accumulated effect of retirement benefit obligations:
Balance at beginning of year	$	(1,352	)	$	(1,204	)	$	(2,224	)
Net gain (loss) arising from retirement benefit obligations, net of tax		(228	)		(202	)		941
Amounts reclassified from accumulated other comprehensive loss:
Amortization of loss, net of tax⁽³⁾		62			54			79

Balance at end of year	$	(1,518	)	$	(1,352	)	$	(1,204	)

⁽¹⁾	Amount is recorded in equity in earnings (losses) on the consolidated statements of operations.

⁽²⁾	No amounts were reclassified out of accumulated other comprehensive loss. Amounts reclassified would be recorded in interest expense on the consolidated statements of operations.

⁽³⁾	Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations.