Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies Disclosure [Text Block]

Note 18 – Commitments and Contingencies

The Company previously disclosed in its 2021 Form 10-K that AC Products, Inc. (“ACP”), a wholly owned subsidiary, has been

operating a groundwater treatment system to hydraulically contain groundwater contamination emanating from ACP’s site, the

principal contaminant of which is perchloroethylene. As of March 31, 2022, ACP believes it is close to meeting the conditions for

closure of the groundwater treatment system, but continues to operate this system while in discussions with the relevant authorities. 

 As of March 31, 2022, the Company believes that the range of potential-known liabilities associated with the balance of the ACP

water remediation program is approximately $

0.1

 million to $

1.0

 million. The low and high ends of the range are based on the length

of operation of the treatment system as determined by groundwater modeling. Costs of operation include the operation and

maintenance of the extraction well, groundwater monitoring and program management.

The Company previously disclosed in its 2021 Form 10-K that an inactive subsidiary of the Company that was acquired in 1978

sold certain products containing asbestos, primarily on an installed basis, and is among the defendants in numerous lawsuits alleging

injury due to exposure to asbestos. During the three months ended March 31, 2022, there have been no significant changes to the facts

or circumstances of this previously disclosed matter, aside from on-going claims and routine payments associated with this litigation. 

Based on a continued analysis of the existing and anticipated future claims against this subsidiary, it is currently projected that the

subsidiary’s total liability over the next

50 years

 for these claims is approximately $

0.3

 million (excluding costs of defense).

The Company previously disclosed in its 2021 Form 10-K that it is party to certain environmental matters related to certain

domestic and foreign properties. These environmental matters primarily require the Company to perform long-term monitoring as

well as operating and maintenance at each of the applicable sites. During the three months ended March 31, 2022, there have been no

significant changes to the facts or circumstances of these previously disclosed matters, aside from on-going monitoring and

maintenance activities and routine payments associated with each of the sites. The Company continually evaluates its obligations

related to such matters, and based on historical costs incurred and projected costs to be incurred over the next

27 years

, has estimated

the range of costs for all of these environmental matters, on a discounted basis, to be between approximately $

5

 million and $

6

 million

as of March 31, 2022, for which $

5.9

 million was accrued within other accrued liabilities and other non-current liabilities on the

Company’s Condensed Consolidated Balance Sheet as of March 31, 2022. Comparatively, as of December 31, 2021, the Company

had $

5.6

 million accrued for with respect to these matters.

The Company believes, although there can be no assurance regarding the outcome of other unrelated environmental matters, that

it has made adequate accruals for costs associated with other environmental problems of which it is aware. Approximately $

0.4

million were accrued as of both March 31, 2022 and December 31, 2021, respectively, to provide for such anticipated future

environmental assessments and remediation costs. 

In connection with obtaining regulatory approvals for the Combination, certain steel and aluminum related product lines of

Houghton were divested in August 2019. The Company previously disclosed in its 2021 Form 10-K that in July 2021, the entity that

acquired these divested product lines submitted an indemnification claim for certain alleged breaches of representation made by

Houghton in the agreement pursuant to which such assets had been divested. The Company responded to the subject matters of the

indemnification claim and during the first quarter of 2022 the matter was resolved consistent with the Company’s expectations and

position that there were no amounts owed by the Company.

The Company previously disclosed in its 2021 Form 10-K that two of the Company’s locations suffered property damages as a

result of flooding and fire, respectively. The Company maintains property insurance for all of its facilities globally. During the three

months ended March 31, 2022, there have been no significant changes to the facts or circumstances of these previously disclosed

matters, aside from the on-going restoration of both sites. The Company, its insurance adjuster and insurance carrier are actively

managing the remediation and restoration activities associated with these events and at this time the Company has concluded, based on

all available information and discussions with its insurance adjuster and insurance carrier, that the losses were covered under the

Company’s property insurance coverage, net of an aggregate deductible of $

2.0

 million. The Company has received payments from

its insurers of $

2.1

 million and has recorded an insurance receivable associated with these events (and a gain on insurance recoveries

for losses incurred) of $

0.5

 million as of March 31, 2022.

The Company is party to other litigation which management currently believes will not have a material adverse effect on the

Company’s results of operations, cash flows or financial condition. In addition, the Company has an immaterial amount of contractual

purchase obligations.