Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Product liability. The Company is subject to product liability claims in the normal course of business. The Company purchases excess insurance coverage annually for product liability claims, which is subject to self-insured retention and aggregate limits. The estimated costs resulting from any losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably estimable. The Company utilizes actuarial analysis, which considers claims experience and historical trends, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. As of September 30, 2026 and December 31, 2025, the Company had an accrual of $282.7 million and $374.1 million, respectively, for the probable payment of pending claims related to product liability litigation associated with the Company’s products. This accrual is recorded in accrued expenses in the consolidated balance sheets. Amounts due from insurance carriers, to the extent applicable, reduce our financial exposures to product liability claims and are recorded in prepaid expenses and other in the consolidated balance sheets. As of September 30, 2026 and December 31, 2025, the Company recorded $63.1 million and $182.5 million, respectively, for probable insurance recoveries related to product liability accruals. Litigation. The Company is subject to lawsuits and claims arising in the normal course of business, including matters related to intellectual property, commercial matters, employment, warranty, product liability claims and putative class actions. Additional details about certain of the pending class actions and putative class actions are provided in Part II, Item 1 – Legal Proceedings. In the opinion of management, it is presently unlikely that any legal proceedings pending against or involving the Company will have a material adverse effect on the Company’s financial position, results of operations, or cash flows. However, in many of these matters, it is inherently difficult to determine whether a loss is probable or reasonably possible or to estimate the size or range of the possible loss given the variety of potential outcomes of actual and potential claims, including legal proceedings resulting in verdicts that exceed policy limits for a given year or seeking punitive damages for certain policy years for which we may not be insured, the uncertainty of future rulings, possible class certification, the behavior or incentives of adverse parties, and other factors outside of the control of the Company. Accordingly, the Company’s loss reserve may change from time to time, and actual losses could exceed the amounts accrued by an amount that could be material to the Company’s consolidated financial position, results of operations, or cash flows in any particular reporting period. Regulatory. In the normal course of business, the Company’s products are subject to extensive laws and regulations relating to safety, environmental, and other regulations promulgated by the United States federal government and individual states, as well as international regulatory authorities. Failure to comply with applicable regulations could result in fines, penalties, or other costs. Tariffs. In February 2026, the U.S. Supreme Court issued a ruling that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unauthorized. During the nine months ended September 30, 2026, we submitted claims for refunds of certain IEEPA tariffs previously paid on imports. The Company has deemed recovery of tariffs subject to those claims, as well as certain amounts from suppliers, to be probable, and has further collected interest on refunds paid. During the quarter ended September 30, 2026, the Company recognized a benefit of $9.8 million, of which $6.4 million was recorded in cost of sales and $3.4 million was recorded within interest expense in the consolidated statements of income (loss). During the year-to-date period ended September 30, 2026, the Company recognized a benefit of $83.7 million, of which $80.3 million was recorded in cost of sales and $3.4 million was recorded within interest expense in the consolidated statements of income (loss). As of September 30, 2026, the Company has collected substantially all of its tariff refunds for claims submitted to date.
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