What changed in this filing

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Item 1. Financial Statements

2025-07-22 compared with 2025-04-22 · 116 added, 83 removed, 414 unchanged (32% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data) March 31, 2025 December 31, 2024

(in thousands, except share and per share data) June 30, 2025 December 31, 2024

Current assets:

44 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except per share data) 2025 2024 2025 2024

20 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

1 unchanged sentence

Other comprehensive income (loss), net of income taxes:

Foreign currency translation adjustments 49,329 ( 79,920 )

Pension and postretirement benefit adjustments, net of income taxes in 2025 — $ 1,327 ;

Foreign currency translation adjustments,net of income taxes in 2025 — $ 40,342 and $ 57,108 ;

2024 — $ 3,419 and $ 11,611

136,828 15,278 186,157 ( 64,642 )

Pension and postretirement benefit adjustments, net of income taxes in 2025 — $ 1,325 and $ 2,652 ;

2024 — $ 1,063 and $ 2,126

3,683 2,887 7,367 5,775

Other comprehensive income (loss), net of income taxes 140,511 18,165 193,524 ( 58,867 )

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

(in thousands, except share and per share data) Common Stock Shares Common Stock Amount Additional Paid-In Capital Accumulated Other Comprehensive Loss Retained Earnings Total Parent Equity Non-controlling Interests in Subsidiaries Total Equity

January 1, 2025 138,779,664 $ 138,780 $ 196,532 $ ( 1,261,743 ) $ 5,263,838 $ 4,337,407 $ 14,444 $ 4,351,851

April 1, 2025 138,788,979 $ 138,789 $ 204,595 $ ( 1,208,730 ) $ 5,315,279 $ 4,449,933 $ 14,630 $ 4,464,563

Net income — — — — 254,880 254,880 — 254,880

Other comprehensive loss, net of tax — — — 53,013 — 53,013 — 53,013

Other comprehensive income, net of tax — — — 140,511 — 140,511 — 140,511

Cash dividend declared, $ 1.03 per share

4 unchanged sentences

Noncontrolling interest activities — — — — — — 1,375 1,375

March 31, 2025 138,788,979 $ 138,789 $ 204,595 $ ( 1,208,730 ) $ 5,315,279 $ 4,449,933 $ 14,630 $ 4,464,563

Three Months Ended March 31, 2024

June 30, 2025 139,092,221 $ 139,092 $ 205,146 $ ( 1,068,219 ) $ 5,426,894 $ 4,702,913 $ 16,005 $ 4,718,918

Six Months Ended June 30, 2025

8 unchanged sentences

Noncontrolling interest activities — — — — — — 1,561 1,561

March 31, 2024 139,335,342 $ 139,335 $ 179,349 $ ( 1,053,904 ) $ 5,137,597 $ 4,402,377 $ 14,799 $ 4,417,176

June 30, 2025 139,092,221 $ 139,092 $ 205,146 $ ( 1,068,219 ) $ 5,426,894 $ 4,702,913 $ 16,005 $ 4,718,918

Three Months Ended June 30, 2024

April 1, 2024 139,335,342 $ 139,335 $ 179,349 $ ( 1,053,904 ) $ 5,137,597 $ 4,402,377 $ 14,799 $ 4,417,176

Net income — — — — 295,544 295,544 — 295,544

Other comprehensive income, net of tax — — — 18,165 — 18,165 — 18,165

Cash dividend declared, $ 1.00 per share

— — — — ( 139,376 ) ( 139,376 ) — ( 139,376 )

Shares issued from employee incentive plans 259,702 259 ( 16,828 ) — — ( 16,569 ) — ( 16,569 )

Share-based compensation — — 18,006 — — 18,006 — 18,006

Purchase of stock ( 249,026 ) ( 248 ) — — ( 37,251 ) ( 37,499 ) — ( 37,499 )

Noncontrolling interest activities — — — — — — 676 676

June 30, 2024 139,346,018 $ 139,346 $ 180,527 $ ( 1,035,739 ) $ 5,256,514 $ 4,540,648 $ 15,475 $ 4,556,123

Six Months Ended June 30, 2024

January 1, 2024 139,567,071 $ 139,567 $ 173,025 $ ( 976,872 ) $ 5,065,327 $ 4,401,047 $ 15,938 $ 4,416,985

Net income — — — — 544,438 544,438 — 544,438

Other comprehensive loss, net of tax — — — ( 58,867 ) — ( 58,867 ) — ( 58,867 )

Cash dividend declared, $ 2.00 per share

— — — — ( 278,761 ) ( 278,761 ) — ( 278,761 )

Shares issued from employee incentive plans 288,513 288 ( 19,068 ) — — ( 18,780 ) — ( 18,780 )

Share-based compensation — — 26,570 — — 26,570 — 26,570

Purchase of stock ( 509,566 ) ( 509 ) — — ( 74,490 ) ( 74,999 ) — ( 74,999 )

Noncontrolling interest activities — — — — — — ( 463 ) ( 463 )

June 30, 2024 139,346,018 $ 139,346 $ 180,527 $ ( 1,035,739 ) $ 5,256,514 $ 4,540,648 $ 15,475 $ 4,556,123

See accompanying Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2025 2024

1 unchanged sentence

Net income $ 449,272 $ 544,438

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 238,453 189,812

Share-based compensation 24,180 26,570

Excess tax benefits from share-based compensation ( 182 ) ( 3,461 )

Excess tax deficiency (benefits) from share-based compensation 7,073 ( 8,233 )

Other operating activities, including changes in operating assets and liabilities ( 549,863 ) ( 140,672 )

Net cash (used in) provided by operating activities ( 40,827 ) 318,306

Net cash provided by operating activities 169,115 611,915

Investing activities:

2 unchanged sentences

Acquisitions of businesses ( 111,973 ) ( 581,141 )

Proceeds from divestitures of businesses — 3,381

Other investing activities 23,394 4,715

29 unchanged sentences

These adjustments are of a normal recurring nature.

The results of operations for the three months ended March 31, 2025 are not necessarily indicative of results for the year ended December 31, 2025.

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of results for the year ended December 31, 2025.

We have evaluated subsequent events through the date the unaudited Condensed Consolidated Financial Statements covered by this quarterly report were issued.

23 unchanged sentences

The following table provides a detail of prepaid expenses and other current assets reported within the Condensed Consolidated Balance Sheets as of:

(in thousands) March 31, 2025 December 31, 2024

(in thousands) June 30, 2025 December 31, 2024

Prepaid expenses $ 170,430 $ 118,401

9 unchanged sentences

The following table summarizes the classification and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships (in thousands):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Instrument Balance Sheet Location Notional Balance Notional Balance

Net investment hedges:

Forward contracts Prepaid expenses and other current assets $ 838,046 $ 26,735 $ 1,867,966 $ 85,834

Forward contract Other current liabilities $ 574,300 $ 1,557 $ — $ —

Forward contract Prepaid expenses and other current assets $ 245,960 $ 4,394 $ 1,867,966 $ 85,834

Forward contracts Other current liabilities $ 1,633,396 $ 83,467 $ — $ —

Foreign currency debt Long-term debt € 475,000 $ 556,700 € 475,000 $ 494,285

2 unchanged sentences

(in thousands) 2025 2024 2025 2024

Three Months Ended March 31,

Three Months Ended June 30,

Net investment hedges:

2 unchanged sentences

Total $ ( 152,234 ) $ 12,664 $ 5,755 $ 4,651

Gain (Loss) Recognized in AOCL before Reclassifications Gain Recognized in Interest Expense for Excluded Components

(in thousands) 2025 2024 2025 2024

Six Months Ended June 30,

Net investment hedges:

Forward contracts $ ( 153,086 ) $ 20,256 $ 11,514 $ 9,020

Foreign currency debt ( 62,415 ) 22,750 — —

Total $ ( 215,501 ) $ 43,006 $ 11,514 $ 9,020

Fair Value of Financial Instruments

As of March 31, 2025, the fair value of our senior unsecured notes was approximately $ 3.7 billion, which are designated as Level 2 in the fair value hierarchy.

As of June 30, 2025, the fair value of our senior unsecured notes was approximately $ 3.8 billion, which are designated as Level 2 in the fair value hierarchy.

Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities.

1 unchanged sentence

While such borrowings of the independents are outstanding, we are required to maintain compliance with certain covenants.

As of March 31, 2025, we were in compliance with all such covenants.

As of March 31, 2025, the total borrowings of the independents subject to guarantee by us were approximately $ 574 million.

As of June 30, 2025, we were in compliance with all such covenants.

As of June 30, 2025, the total borrowings of the independents subject to guarantee by us were approximately $ 573 million.

These loans generally mature over periods from one to six years .

3 unchanged sentences

To date, we have not had significant losses in connection with guarantees of independents’ borrowings and the current expected credit loss reserve is not material.

As of March 31, 2025, there are no material guaranteed loans for which the borrower is experiencing financial difficulty and recovery is expected to be provided substantially through the operation or sale of the collateral.

As of March 31, 2025, we have recognized $ 40 million of certain assets and liabilities for the guarantees related to the independents’ borrowings.

As of June 30, 2025, there are no material guaranteed loans for which the borrower is experiencing financial difficulty and recovery is expected to be provided substantially through the operation or sale of the collateral.

As of June 30, 2025, we have recognized $ 37 million of certain assets and liabilities for the guarantees related to the independents’ borrowings.

These assets and liabilities are included in other assets and other long-term liabilities in the Condensed Consolidated Balance Sheets.

10 unchanged sentences

We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program.

Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable in our Condensed Consolidated Balance Sheets.

amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable in our Condensed Consolidated Balance Sheets.

All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected in cash flows from operating activities in our Condensed Consolidated Statement of Cash Flows.

As of March 31, 2025 and December 31, 2024, the outstanding payment obligations to the financial institutions were $ 3.3 billion and $ 3.3 billion, respectively.

The amount settled through the SCF program was $ 1.1 billion and $ 1.0 billion for the three months ended March 31, 2025 and March 31, 2024, respectively.

(in thousands) March 31, 2025

As of June 30, 2025 and December 31, 2024, the outstanding payment obligations to the financial institutions were $ 3.2 billion and $ 3.3 billion, respectively.

The amount settled through the SCF program was $ 2.2 billion and $ 2.0 billion for the six months ended June 30, 2025 and June 30, 2024, respectively.

(in thousands) June 30, 2025

Obligations outstanding at the beginning of the period $ 3,365,836

Invoices confirmed during the year 1,033,405

Confirmed invoices paid during the year ( 1,102,527 )

Invoices confirmed during the period 2,035,678

Confirmed invoices paid during the period ( 2,215,695 )

Confirmed obligations outstanding at the end of the period $ 3,185,819

1 unchanged sentence

We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding.

Certain outstanding options are not included in the diluted earnings per share calculation

because their inclusion would have been anti-dilutive.

Certain outstanding options are not included in the diluted earnings per share calculation because their inclusion would have been anti-dilutive.

Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material.

The following table summarizes basic and diluted shares outstanding:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands, except per share data) 2025 2024 2025 2024

8 unchanged sentences

The following table presents a summary of our reportable Automotive segment financial information:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

9 unchanged sentences

The following table presents a summary of our reportable Industrial segment financial information:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

11 unchanged sentences

The following table presents a reconciliation from EBITDA to net income:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

11 unchanged sentences

These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as asbestos-related product liability costs and A/R Sales Agreement fees.

(2) T he following table presents a summary of the other unallocated costs:

Three Months Ended March 31,

(2) The following table presents a summary of the other unallocated costs:

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

6 unchanged sentences

The following table presents a summary of our reportable segment total assets, as well as Corporate and other unallocated reconciling items:

Three Months Ended March 31,

As of June 30,

(in thousands) 2025 2024

4 unchanged sentences

Total assets $ 20,431,067 $ 18,869,393

(5) Corporate is a reconciling category that includes our corporate offices, substantially all financing activities and any other items that are not allocated to the business segments.

Long-lived assets:

United States $ 1,199,197 $ 1,071,053

Europe 417,116 358,682

Canada 199,785 163,864

Australasia 236,388 193,344

Mexico 963 879

Total long-lived assets $ 2,053,449 $ 1,787,822

(5) Corporate is a reconciling category that includes our corporate offices, substantially all financing activities and any other items that are not allocated to the business segments other than goodwill and other intangible assets.

The following table presents a summary of select financial information by reportable segment, as well as Corporate and other unallocated reconciling items:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

16 unchanged sentences

Total net sales $ 6,164,425 $ 5,962,567 $ 12,030,494 $ 11,746,198

Long-lived assets:

United States $ 1,182,474 $ 976,888

Europe 388,071 348,720

Canada 190,168 151,624

Australasia 225,278 187,831

Mexico 816 857

Total long-lived assets $ 1,986,807 $ 1,665,920

Net sales are disaggregated by geographical region for each of our reportable segments, as we deem this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors.

The following table presents disaggregated geographical net sales from contracts with customers by reportable segment:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

14 unchanged sentences

As cash is collected on sold receivables, the SPE continuously transfers ownership and control of new qualifying receivables to the unaffiliated financial institutions so that the total principal amount outstanding of receivables sold is approximately $ 1.0 billion at any point in time (which is the maximum amount allowed under the A/R Sales Agreement).

The total principal amount outstanding of receivables sold is approximately $ 1.0 billion and $ 1.0 billion as of March 31, 2025 and December 31, 2024, respectively.

The amount of receivables pledged as collateral as of March 31, 2025 and December 31, 2024 is approximately $ 1.5 billion and $ 1.3 billion, respectively.

The following table summarizes the activity and amounts outstanding under the A/R Sales Agreement as of:

Three Months Ended March 31,

The total principal amount outstanding of receivables sold is approximately $ 1.0 billion and $ 1.0 billion as of June 30, 2025 and December 31, 2024, respectively.

The amount of receivables pledged as collateral as of June 30, 2025 and December 31, 2024 is approximately $ 1.5 billion and $ 1.3 billion, respectively.

The following table summarizes the activity under the A/R Sales Agreement for the:

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

3 unchanged sentences

The SPE incurs fees due to the unaffiliated financial institutions related to the accounts receivable sales transactions.

Those fees, which totaled $ 13 million and $ 15 million for the three months ended March 31, 2025 and 2024, respectively, are recorded within other non-operating expense (income) in the Condensed Consolidated Statements of Income.

Those fees, which totaled $ 26 million and $ 31 million for the six months ended June 30, 2025 and 2024, respectively, are recorded within other non-operating expense (income) in the Condensed Consolidated Statements of Income.

The SPE has a recourse obligation to repurchase from the unaffiliated financial institutions any previously sold receivables that are not collected due to the occurrence of certain events, including credit quality deterioration and customer sales returns.

The reserve recognized for this recourse obligation as of March 31, 2025 and December 31, 2024 is not material.

The reserve recognized for this recourse obligation as of June 30, 2025 and December 31, 2024 is not material.

The servicing liability related to our collection services also is not material, given the high quality of the customers underlying the receivables and the anticipated short collection period.

2 unchanged sentences

On March 20, 2025, we amended the Unsecured Revolving Credit Facility to expand the borrowing capacity from $ 1.5 billion to $ 2.0 billion and extend the maturity date to March 20, 2030.

We had no outstanding borrowings under the Unsecured Revolving Credit Facility as of March 31, 2025 or December 31, 2024.

We had no outstanding borrowings under the Unsecured Revolving Credit Facility as of June 30, 2025 or December 31, 2024.

Commercial Paper Program

5 unchanged sentences

The net proceeds of issuances of the commercial paper notes have been used to repay certain of our unsecured senior notes (as described below) and have been and are expected to continue to be used for general corporate purposes.

We had $ 775 million outstanding under our commercial paper program as of March 31, 2025, presented in Short-term borrowings on the Condensed Consolidated Balance Sheet, and no outstanding borrowings as of December 31, 2024.

The weighted average interest rate of our commercial paper outstanding as of March 31, 2025 was 4.63 %.

We had $ 922 million outstanding under our commercial paper program as of June 30, 2025, presented in Short-term borrowings on the Condensed Consolidated Balance Sheet, and no outstanding borrowings as of December 31, 2024.

The weighted average interest rate of our commercial paper outstanding as of June 30, 2025 was 4.69 %.

In the Condensed Consolidated Statement of Cash Flows, we present commercial paper activity with original maturities of three months or less on a net basis given their short-term nature.

Notes and Other Borrowings

In addition to funding other working capital requirements, we used commercial paper borrowings to repay the $ 500 million principal amount of our 1.75 % Unsecured Senior Note due February 1, 2025.

In addition to funding other working capital requirements, we used commercial paper borrowings to repay the $ 500 million principal amount of our 1.75 % Unsecured Senior Notes due February 1, 2025.

Certain borrowings require us to comply with a financial covenant with respect to a maximum debt to EBITDA ratio.

At March 31, 2025, we were in compliance with all such covenants.

At June 30, 2025, we were in compliance with all such covenants.

Employee Benefit Plans

Net periodic benefit income from our pension plans included the following components for the three months ended March 31:

Pension Benefits

Net periodic benefit income from our pension plans included the following components for our pension benefits:

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2025 2024 2025 2024

11 unchanged sentences

As a result of these changes, income from our expected return on plan assets is significantly reduced in 2025, with the investment strategy focused on minimizing funded status volatility during the termination process.

The final settlement process, including transferring the management of benefits to an insurance company, is expected to be completed by late 2025 or early 2026, pending regulatory approvals.

We acquired several businesses for approximately $ 152 million and $ 132 million, which includes certain non-cash consideration and is net of cash acquired, during the three months ended March 31, 2025 and March 31, 2024, respectively.

The final settlement process, including transferring the management

of benefits to an insurance company, is expected to be completed by late 2025 or early 2026, pending regulatory approvals.

We acquired several businesses for approximately $ 211 million and $ 651 million, which includes certain non-cash consideration and is net of cash acquired, during the six months ended June 30, 2025 and June 30, 2024, respectively.

For each acquisition, we allocate the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective acquisition dates.

3 unchanged sentences

The results of operations for acquired businesses are included in our Condensed Consolidated Statements of Income beginning on their respective acquisition dates.

During the three months ended March 31, 2025, we recognized approximately $ 8 million and $ 13 million of revenue related to our current year Automotive and Industrial acquisitions, respectively.

During the six months ended June 30, 2025, we recognized approximately $ 37 million and $ 29 million of revenue related to our current year Automotive and Industrial acquisitions, respectively.

Accumulated Other Comprehensive Loss

The following tables present the changes in AOCL by component for the three months ended March 31:

The following tables present the changes in AOCL by component for the six months ended June 30:

Changes in Accumulated Other

3 unchanged sentences

Beginning balance, January 1, 2025 $ ( 581,000 ) $ ( 680,743 ) $ ( 1,261,743 )

Other comprehensive income (loss) before reclassifications — 49,329 49,329

Other comprehensive income before reclassifications — 186,157 186,157

Amounts reclassified from accumulated other comprehensive loss 7,367 — 7,367

Other comprehensive income (loss), net of income taxes 3,684 49,329 53,013

Ending balance, March 31, 2025 $ ( 577,316 ) $ ( 631,414 ) $ ( 1,208,730 )

Other comprehensive income, net of income taxes 7,367 186,157 193,524

Ending balance, June 30, 2025 $ ( 573,633 ) $ ( 494,586 ) $ ( 1,068,219 )

Changes in Accumulated Other

3 unchanged sentences

Beginning balance, January 1, 2024 $ ( 517,941 ) $ ( 458,931 ) $ ( 976,872 )

Other comprehensive income (loss) before reclassifications — ( 79,920 ) ( 79,920 )

Other comprehensive (loss) before reclassifications — ( 64,642 ) ( 64,642 )

Amounts reclassified from accumulated other comprehensive loss 5,775 — 5,775

Other comprehensive income (loss), net of income taxes 5,775 ( 64,642 ) ( 58,867 )

Ending balance, March 31, 2024 $ ( 515,053 ) $ ( 538,851 ) $ ( 1,053,904 )

Ending balance, June 30, 2024 $ ( 512,166 ) $ ( 523,573 ) $ ( 1,035,739 )

The AOCL components related to the pension benefits are included in the computation of net periodic benefit income in the Employee Benefit Plans Footnote.

18 unchanged sentences

Our estimate has been impacted by adverse inflation trends, a backlog of claims building up from court closures during the COVID-19 pandemic, and an evolving legal and product liability environment.

We have 2,814 pending asbestos lawsuits as of March 31, 2025.

The amount accrued for pending and future claims was $ 252 million as of March 31, 2025, which represented our best estimate of the liability within our calculated range of $ 218 million to $ 311 million, discounted using a discount rate of 4.23 %.

We have 2,864 pending asbestos lawsuits as of June 30, 2025.

The amount accrued for pending and future claims was $ 240 million as of June 30, 2025, which represented our best estimate of the liability within our calculated range of $ 212 million to $ 302 million, discounted using a discount rate of 4.24 %.

The amount accrued for pending and future claims was $ 256 million as of December 31, 2024, which represented our best estimate of the liability within our calculated range of $ 219 million to $ 313 million, discounted using a discount rate of 4.58 %.

Our undiscounted product liability was $ 329 million and $ 336 million as of March 31, 2025 and December 31, 2024, respectively.

Our undiscounted product liability was $ 317 million and $ 336 million as of June 30, 2025 and December 31, 2024, respectively.

There have been no significant developments to the information presented in our 2024 Annual Report on Form 10-K with respect to litigation or commitments and contingencies.

1 unchanged sentence

Annually, we conduct an insurance exhaustion study to model expected recoveries for pending and future claims, and we adjust the insurance receivable balance to reflect the present value of these recoveries.

Our receivable for estimated insurance recoveries related to pending and future claims was $ 42 million and $ 44 million as of March 31, 2025 and December 31, 2024, respectively.

Our receivable for estimated insurance recoveries related to pending and future claims was $ 40 million and $ 44 million as of June 30, 2025 and December 31, 2024, respectively.

Environmental Liabilities

3 unchanged sentences

In February 2024, we approved and initiated a global restructuring initiative designed to better align our assets and further improve the efficiency of the business.

This initiative includes an announced voluntary retirement offer in the U.S., along with a rationalization and optimization of certain distribution centers, stores and other facilities.

This initiative included an announced voluntary retirement offer in the U.S.

in 2024, along with a rationalization and optimization of certain distribution centers, stores and other facilities.

The initiative was approved and funded by our corporate office and therefore these costs are not allocated to our segments.

In the first quarter 2025, we incurred $ 55 million in restructuring and other costs compared to $ 83 million in the prior year period.

For the six months ended June 30, 2025, we incurred $ 100 million in restructuring and other costs, compared to $ 113 million in the prior year period.

We expect to incur total costs up to $ 210 million related to the global restructuring efforts in 2025 and to substantially complete the initiative by the end of 2025.

8 unchanged sentences

Translation 1,847 41 1,888

Liability as of March 31, 2025 $ 29,208 $ 792 $ 30,000

(1) Amount reflects professional fees, accelerated rent, facility closure costs, moving expenses and asset impairment costs that are attributable to our restructuring.

Liability as of June 30, 2025 $ 31,028 $ 1,803 $ 32,831

(in thousands) Severance and other employee costs Other restructuring costs (1)

4 unchanged sentences

Translation ( 90 ) 2 ( 88 )

Liability as of March 31, 2024 $ 55,902 $ 145 $ 56,047

Liability as of June 30, 2024 $ 27,681 $ 1,134 $ 28,815

(1) Amount reflects professional fees, accelerated rent, facility closure costs, moving expenses and asset impairment costs that are attributable to our restructuring.

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.

What changed 10-Q

Item 1. Financial Statements