In mid-2025, the Company announced it was performing a strategic review of its Myers Tire Supply business. Beginning with the first quarter of 2026, the Myers Tire Supply business qualified as discontinued operations based on formal approvals by the Company's Board of Directors related to the divestiture process that resulted from the strategic review. The divestiture of Myers Tire Supply enables the Company to continue its progress on improving profitability of its overall portfolio, while also streamlining and focusing its resources on core manufacturing businesses that align with the Company's overall mission of Products that Protect™. The divestiture of the Myers Tire Supply business is expected to be completed in 2026 and represents a strategic shift to exit the distribution industry and automotive aftermarket, which will have a major effect on the Company's operations and financial results. The Myers Tire Supply business includes its domestic and Central American businesses, each of which serve their respective markets with the distribution of equipment, tools and supplies used for the tire servicing and automotive industry.

The entire Myers Tire Supply business, formerly part of the Company's Distribution segment, has been accounted for as held for sale and as discontinued operations. Accordingly, the Company has classified these assets and liabilities as held for sale in the accompanying Condensed Consolidated Statements of Financial Position (Unaudited) and the Myers Tire Supply operating results, net of tax, as discontinued operations in the accompanying Condensed Consolidated Statements of Operations (Unaudited) for all periods presented.

In the first quarter of 2026, in conjunction with bids received during this divestiture process (Level 3 inputs), impairment charges of $19.5 million ($14.8 million, net of tax) were recorded based on expected recoverability of Myers Tire Supply net assets across its markets, including a $14.7 million impairment charge to fully impair goodwill. These impairment charges are included in Income (loss) from discontinued operations, net of income tax for the six months ended June 30, 2026 in the Condensed Consolidated Statements of Operations (Unaudited).

The following table summarizes the operating results of the Myers Tire Supply business included in discontinued operations on the Condensed Consolidated Statements of Operations (Unaudited):


	For the Quarter Ended June 30,					For the Six Months Ended June 30,
	2026		2025			2026			2025
Net sales	$	44,905	$	46,351		$	87,677		$	91,434

Cost of sales		31,080		32,275			60,818			64,148
Selling, general and administrative expenses		12,202		13,277			25,785			25,910
Depreciation and amortization		—		693			509			1,399
(Gain) loss on disposal of fixed assets		—		(34	)		—			388
Impairment charges		—		—			19,530			—
Operating income (loss)		1,623		140			(18,965	)		(411	)

Income (loss) from discontinued operations before income tax		1,623		140			(18,965	)		(411	)
Income tax expense (benefit)		340		52			(4,621	)		(116	)
Income (loss) from discontinued operations, net of income tax	$	1,283	$	88		$	(14,344	)	$	(295	)

The following table provides the major classes of assets and liabilities of the Myers Tire Supply business included in assets held for sale and liabilities held for sale in the Condensed Consolidated Statements of Financial Position (Unaudited):


	June 30, 2026			December 31, 2025
Cash	$	5,161		$	4,536
Accounts receivable, net		29,883			31,848
Inventories, net		21,636			18,505
Prepaid expenses and other current assets		843			1,051
Property, plant and equipment, net		1,263			1,162
Goodwill		—			14,730
Intangible assets, net		5,102			5,392
Deferred income taxes		6,137			1,433
Other		3,190			2,685
		73,215			81,342
Less: Loss recognized on classification as held for sale		(4,800	)		—
Total assets held for sale	$	68,415		$	81,342

Accounts payable	$	17,549		$	19,902
Accrued expenses and other current liabilities		5,665			6,899
Other liabilities		2,502			2,005
Total liabilities held for sale	$	25,716		$	28,806

Assets held for sale:
Current	$	68,415		$	55,940
Non-current		—			25,402

Liabilities held for sale:
Current	$	25,716		$	26,801
Non-current		—			2,005

Beginning with the first quarter of 2026, the Myers Tire Supply business met the held for sale criteria, and the sale is expected to be completed in 2026. As a result, all assets and liabilities during the period are reported as current.