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However, adverse developments and/or periodic settlements could negatively impact the results of operations or cash flows in one or more future periods.
+Added: In February 2024, the named plaintiffs in Rouse et al.
+Added: Fuller Company et al.
+Added: filed a third amended complaint in their lawsuit against the Company and one of its subsidiaries, which was initiated in September 2022.
+Added: The suit is pending in the federal District of Minnesota and seeks damages arising from property damage attributed to alleged defects in grout sold by the Company’s divested North America Flooring business.
+Added: As previously disclosed, the court ordered the parties and their insurers to attend a meditation session on October 21 and 22, 2025 .
+Added: At that mediation session, the Company and the plaintiffs agreed in principle to settle this matter for up to $75.0 million.
+Added: Under the proposed settlement, in lieu of funding the maximum settlement amount, the Company’s payment obligations will be limited to validly submitted claims, settlement administration costs, service awards, and plaintiffs’ attorneys’ fees and expenses.
+Added: The terms of a definitive settlement agreement are being negotiated and will be subject to court approval.
+Added: In light of these developments, the Company concluded that a loss is probable and reasonably estimable and recorded an accrual in anticipation of the settlement of $34.8 million ($26.3 million after tax) based on a range of possible outcomes.
+Added: This accrual is included in other accrued expenses in the Consolidated Balance Sheets as of November 29, 2025.
+Added: The Company believes that it is entitled to reimbursement from its insurers for a substantial portion of the potential settlement amount as well as legal fees already incurred and paid and is actively pursuing reimbursement from its insurers.
For additional information regarding environmental matters and other legal proceedings, see Note 14 to the Consolidated Financial Statements.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.