CONTINGENCIES AND OTHER MATTERS

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND OTHER MATTERS

CONTINGENCIES AND OTHER MATTERS

We are a party to various claims, complaints and proceedings arising in the ordinary course of our continuing business operations, including those relating to commercial and employment claims, environmental matters, risk management matters (e.g., vehicle liability, workers' compensation, etc.) and administrative assessments primarily associated with operating taxes. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. We believe that the resolution of these claims, complaints and legal proceedings will not have a material effect on our condensed consolidated financial statements.

Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our estimated liability based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates.

Securities Litigation Relating to Residual Value Estimates

As previously disclosed, between June 2020 and February 2021, five shareholder derivative complaints were filed against certain of our current and former officers and directors (the "Derivative Cases"). The Derivative Cases were generally based on the allegations set forth in the previously filed securities class action, which was dismissed with prejudice in November 2024 following a settlement. In September 2023, the parties to the Derivative Cases reached an agreement in principle to resolve the Derivative Cases in exchange for certain specified corporate reforms. On March 26, 2025, the court approved the settlement, and all of the Derivative Cases have now been dismissed with prejudice. We expect that the settlement amount of plaintiffs' attorneys'

fees and expenses in connection with the settlement of the Derivative Cases will be covered by insurance, and accordingly is not material to our financial position or results of operations.