We are defendants in certain legal actions. In the opinion of management, the outcome of these actions, which is not clearly determinable at the present time, would not significantly affect our consolidated financial position or future results of operations. We also believe that environmental issues will not have a material effect on our capital expenditures, consolidated financial position or future results of operations.

In February 2019, our Structural Composites Industries, LLC subsidiary (“SCI”) agreed to participate in a tank replacement program for specific design sizes of its composite hydrogen fuel tanks, which are integrated into a customer’s hydrogen fuel cells used to fuel material handling equipment, primarily rider pallet jacks in warehouses. During the third quarter of fiscal 2020, a favorable adjustment was recorded related to lower than expected freight.

A progression of the liabilities recorded in connection with this matter during fiscal 2020 is summarized in the following table:

	Beginning										Ending
(in thousands)	Balance		Expense		Payments			Adjustments			Balance
Tank replacement costs	$	8,500	$	-	$	(1,211	)		(2,265	)	$	5,024

We believe these liabilities are sufficient to absorb our remaining direct costs related to the replacement program, which are expected to be paid in the next twelve months. The actual costs incurred by the Company related to this matter may vary from the initial estimate.