Commitments and Contingencies |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Accrued General Liability and Auto Insurance Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in millions):
We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in millions):
Leases See Note 8, Leases, for further information regarding our lease commitments. Other Commitments and Contingencies From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual matters and personnel and employment disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. As litigation is subject to inherent uncertainties, we cannot be certain that we will prevail in these matters. However, we do not believe that the ultimate outcome of any pending matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows. We have an agreement with one of our suppliers to purchase a portion of the materials we utilize in our business with variable pricing . This agreement is effective March 31, 2023 through May 15, 2026 with a purchase obligation of 12.0 million pounds for the period ending May 15, 2024, 14.4 million pounds for the period ending May 15, 2025 and 17.3 million pounds for the period ending March 31, 2026. During the six months ended June 30, 2025, we entered into an amendment which reduced our 17.3 million pounds commitment to 12.3 million pounds and amended the period commitment to May 15, 2026. Through June 30, 2025, we satisfied the agreement for the period ending May 15, 2025 and purchased approximately 1.4 million pounds of materials under the agreement for the period ending May 15, 2026. We also have a contract to purchase various products with fixed rate pricing with a supplier to purchase a portion of the materials we employ in our business. The agreement is effective January 1, 2025 through December 31, 2027 with a purchase obligation of 8.0 million pounds for each of the periods ending December 31, 2025, 2026 and 2027, and a total minimum commitment of $10.8 million. During the six months ended June 30, 2025, we purchased approximately 5.1 million pounds of materials under this agreement for the period ending December 31, 2025. During the six months ended June 30, 2025, we entered into a purchase agreement with one of our suppliers to purchase certain products we utilize in our business. This agreement includes variable pricing terms and is effective July 1, 2025 with a volume commitment of 40.6 million pounds for the remainder of 2025. The volume commitment increases to 89.1 million pounds in 2026 and is subject to adjustments in future periods beyond 2026, conditional upon certain contingencies, for a period of five years.
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