IEEPA TARIFF REFUNDS |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Receivables [Abstract] | |
| IEEPA TARIFF REFUNDS | IEEPA TARIFF REFUNDS On February 20, 2026, the United States Supreme Court ruled that the use of the International Emergency Economic Powers Act (“IEEPA”) to impose tariffs was not permitted, invalidating a significant portion of U.S. tariffs that had been in effect since early 2025. On March 4, 2026, U.S. Customs and Border Protection (“CBP”) began processing refunds of the tariffs imposed under IEEPA. CBP accepted the Company’s Phase I refund claims in the aggregate amount of $20.5 million, including associated interest. As of September 30, 2026, the Company has received all of the accepted Phase I claims. The accounting for the IEEPA tariff refunds reflects the original treatment of the underlying tariff costs. During the nine months ended September 30, 2026, the Company recognized $17.4 million of reductions in cost of goods sold in the Company's condensed consolidated statements of operations, representing the expense for IEEPA tariffs on inventory sold to customers since the tariffs were enacted, $7.9 million of which relates to IEEPA tariffs on goods sold in the prior fiscal year. During the three months ended September 30, 2026, reductions recognized in cost of goods sold representing the expense for IEEPA tariffs were not material.
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