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Commitments and Contingencies
9 Months Ended
Sep. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
As previously disclosed in its 2025 Form 10-K, the Company is party to certain environmental matters and other litigation. See Note 25, Commitments and Contingencies, in the Company’s 2025 Form 10-K for more information. During the three and nine months ended September 30, 2026, there have been no significant changes to the facts or circumstances of any of the previously disclosed matters other than as noted below.
China imposes a consumption tax on certain processed oils. The Company has previously defended its position that its cutting and rolling oils are exempt from this tax. During 2026, the relevant Chinese tax authority initiated a new round of inquiries to evaluate whether the Company’s cutting and rolling oils are subject to the local consumption tax. The Company is evaluating its potential exposure and preparing its response to the tax authorities. A potential liability, if any, could include tax on applicable oil products, as well as interest and penalties for current and prior periods. As of September 30, 2026, the Company does not believe a contingent liability is probable and is unable to estimate the amount or range of reasonably possible loss. However, it is reasonably possible that a liability could be recognized in a future period.
Although there can be no assurance regarding the outcome of any of the ongoing environmental matters or litigation, the Company believes that it has made adequate accruals for costs and liabilities associated with these matters. The Company has accrued approximately $4.9 million and $5.2 million, respectively, as of September 30, 2026 and December 31, 2025 for these ongoing matters.
In addition, during the three and nine months ended September 30, 2026, there are no new environmental matters or litigation that the Company believes will have a material adverse effect on the Company’s results of operations, cash flows, or financial condition.