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 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 North American 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.

On August 31, 2026, the Company completed the disposition of Myers Tire Supply, LLC and its subsidiaries, which collectively includes all of the Company's North American domestic tire supply businesses of Myers Tire Supply, for total cash consideration of $30.0 million. Net cash proceeds totaled $23.6 million after deducting transaction expenses and estimated post-closing adjustments of $6.4 million, which remain subject to adjustment. In conjunction with the sale the Company recognized a $7.1 million loss on the disposal of discontinued operations ($5.4 million, net of tax), which is included in Income (loss) from discontinued operations, net of income tax for the quarter and nine months ended September 30, 2026 in the Condensed Consolidated Statements of Operations (Unaudited).

Beginning with the first quarter of 2026, the Myers Tire Supply business met the held for sale criteria. 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 Condensed Consolidated Statements of Financial Position (Unaudited) and the Myers Tire Supply operating results, net of tax, as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for all periods presented. The sale of the remaining Myers Tire Supply Central American business is expected to be completed within the next twelve months and as a result all assets and liabilities during the period are reported as current.

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. In the third quarter of 2026 the Company recorded additional impairment charges of $0.3 million pertaining to its Myers Tire Supply Central American business. Total impairment charges of $0.3 million and $19.8 million are included in Income (loss) from discontinued operations, net of income tax for the quarter and nine months ended September 30, 2026, respectively, 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 September 30,						For the Nine Months Ended September 30,
	2026			2025			2026			2025
Net sales	$	31,623		$	46,961		$	119,300		$	138,395

Cost of sales		21,532			32,775			82,350			96,923
Selling, general and administrative expenses		9,902			13,100			35,687			39,010
Depreciation and amortization		—			602			509			2,001
(Gain) loss on disposal of fixed assets		—			(487	)		—			(99	)
Impairment charges		257			—			19,787			—
Operating income (loss) from discontinued operations		(68	)		971			(19,033	)		560
Loss on the disposal of discontinued operations		7,117			—			7,117			—
Income (loss) from discontinued operations before income tax		(7,185	)		971			(26,150	)		560
Income tax expense (benefit)		(1,609	)		173			(6,230	)		57
Income (loss) from discontinued operations, net of income tax	$	(5,576	)	$	798		$	(19,920	)	$	503

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):


	September 30, 2026			December 31, 2025
Cash	$	4,769		$	4,536
Accounts receivable, net		1,515			31,848
Inventories, net		2,555			18,505
Prepaid expenses and other current assets		316			1,051
Property, plant and equipment, net		79			1,162
Goodwill		—			14,730
Intangible assets, net		—			5,392
Deferred income taxes		962			1,433
Other		360			2,685
		10,556			81,342
Less: Loss recognized on classification as held for sale		(3,250	)		—
Total assets held for sale	$	7,306		$	81,342

Accounts payable	$	891		$	19,902
Accrued expenses and other current liabilities		1,280			6,899
Other liabilities		303			2,005
Total liabilities held for sale	$	2,474		$	28,806

Assets held for sale:
Current	$	7,306		$	55,940
Non-current		—			25,402

Liabilities held for sale:
Current	$	2,474		$	26,801
Non-current		—			2,005