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Cyber-Attack
9 Months Ended
Sep. 30, 2023
Unusual or Infrequent Items, or Both [Abstract]  
Cyber-Attack

Note 9. Cyber-Attack

In the first quarter of 2022, the Company was the subject of a targeted cyber-attack, which resulted in having to shut down most the Company's connectivity, operating and accounting systems globally for a period of approximately three weeks to manage the safety of its overall global systems environment.

For the nine months ended September 30, 2022, the Company incurred, as a result of its inability to timely process and move shipments through ports during the downtime, approximately $55 million in estimated incremental demurrage charges, net of recoveries, where the Company has direct liability for this obligation. In the third quarter of 2022, the Company revised earlier estimates of these costs downward by $7 million. These costs are recorded in customs brokerage and other services expenses.

The Company incurred investigation, recovery, and remediation expenses, including costs to recover its operational and accounting systems and to enhance cybersecurity protections. The Company also recorded estimated liabilities for potential shipment-related claims. For the nine months ended September 30, 2022, the total amount recorded for estimated potential shipment-related claims was approximately $15 million. In the third quarter of 2022 the Company reduced the estimated liability for claims by approximately $11 million. These costs are recorded in other operating expenses.

In the first three quarters of 2023, incremental charges recorded related to the cyber-attack were insignificant. Since the cyber-attack, the company incurred cumulative additional expenses of $59 million, net of recoveries and adjustments to prior estimates, and experienced a loss of revenues that cannot be quantified as a result of this attack.