Contingencies

3 Months Ended

Mar. 31, 2026

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

In February 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). The Company submitted refund claims to the U.S. Customs and Border Protection for approximately $53 million pertaining to IEEPA amounts paid in 2025 and 2026 excluding interest. These potential refunds represent gain contingencies under ASC 450-30 and have not been recognized in the financial statements for the three months ended March 31, 2026 as uncertainties remain regarding government approval and appeals and final liquidation amounts. The Company will continue to monitor developments and recognize refunds when realized or realizable. The Company anticipates that a significant portion of any refund received from the U.S. government will be refunded to its customers, and it will pursue refunds from its suppliers. No provision for customer refunds has been recorded, pending claim resolution. Customer refunds will be recorded as a reduction in net sales when the Company pays or commits to such refunds.

The Company is also party to various legal proceedings, including certain environmental matters, incidental to the normal course of business. Management does not expect that any of such proceedings,

either individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows.