Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2020 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Loss Contingencies We are involved in various disputes arising in the ordinary course of business. Management does not believe the outcome of these disputes will have a material adverse effect on our consolidated financial position or consolidated results of operations. Gain Contingencies On March 26, 2020, the U.S. Trade Representative (“USTR”) announced certain exclusion requests related to tariffs on our Chinese imports under Section 301 of the Trade Act of 1974 (“Section 301”). The tariff exemption applies to covered products exported from China to the United States from September 24, 2018 until August 7, 2020. Accordingly, we filed protests and post summary corrections with U.S. Customs and Border Protection in order to recover tariffs paid on excluded products. The filing requests for refunds are subject to review and approval; therefore, we are not recognizing these potential gains until the amounts are realized or considered realizable based on information available to us prior to issuance of the financial statements. As of June 30, 2020, we have recognized approximately $7.7 million in refunds, inclusive of $0.2 million in interest. Approximately $4.0 million of the tariff recoveries related to balances included in inventory and were recorded as a reduction to inventory during the period. Approximately $3.5 million represented amounts previously recorded in cost of goods sold; therefore, we recorded the corresponding refunds as credits to those accounts during the second quarter of 2020. Potential refunds not recorded as of June 30, 2020 totaled approximately $6.3 million (excluding interest) and will be recognized as a reduction to cost of goods sold if and when received. Although we feel our requests for refunds are supportable, we cannot be sure they will not be challenged by the government. We are also unable to predict the timing of receipt of any amounts approved. Additionally, $3.5 million of the above-mentioned remaining refunds represent protests, which require more time and scrutiny before processing. The tariff suspension remains in effect until August 7, 2020. At this time, we do not know if the exclusions will be extended.
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