The Company offers warranties on the sales of certain of its products and records an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. The following table presents changes in the Company’s product warranty liability (in millions):


	Six Months Ended
	June 30, 2026		June 30, 2025
Balance at beginning of period	$	6.6	$	4.9

Charged to operations	4.0		2.0
Claims settled	(1.2)		(1.3)
Total	$	9.4	$	5.6
Less current reserve	$	4.9	$	5.6
Long-term reserve	$	4.5	$	—

The Company's subsidiaries are involved in various unresolved legal actions, administrative proceedings and claims in the ordinary course of business involving, among other things, product liability, commercial, employment, workers' compensation, intellectual property claims and environmental matters. The Company establishes accruals in a manner that is consistent with accounting principles generally accepted in the United States for costs associated with such matters when a liability is probable and those costs are capable of being reasonably estimated. Although it is not possible to predict with certainty the outcome of these unresolved legal actions or the range of possible loss or recovery, based upon current information, management believes the eventual outcome of these unresolved legal actions, either individually or in the aggregate, will not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

On December 15, 2023, Zurn Holdings, Inc. sold all of the equity interests of its direct subsidiary Zurn Industries, LLC, together with Zurn Industries’ direct and indirect subsidiaries that held certain liabilities, certain assets and cash, in a stock sale transaction to an unaffiliated buyer. During the three months ended June 30, 2026, the Company received and recorded a purchase price adjustment of $4.4 million related to the settlement of an insurance coverage dispute in other income (expense), net in the condensed consolidated statements of operations.

As previously disclosed, the Company was the importer of record and paid reciprocal tariffs on certain imported raw materials and products under the International Emergency Economic Powers Act (“IEEPA”). On February 20, 2026, the U.S. Supreme Court ruled that such IEEPA reciprocal tariffs were not authorized under the statute. Subsequently, a process was established for importers to seek refunds of previously paid IEEPA reciprocal tariffs.

During the three and six months ended June 30, 2026, in accordance with ASC 450, the Company applied the gain contingency model and recognized approximately $47.6 million of refunds for previously paid IEEPA reciprocal tariffs as a reduction to cost of sales in the condensed consolidated statements of operations.

As of June 30, 2026, the Company is continuing to evaluate its eligibility for additional tariff refunds associated with prior import activity. These potential recoveries are subject to ongoing administrative processes, legal considerations, and claim validation procedures, and the ultimate amount and timing of any additional refunds remain uncertain.