What changed in this filing

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Item 1. Financial Statements

2026-07-21 compared with 2026-04-21 · 113 added, 103 removed, 435 unchanged (33% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data) March 31, 2026 December 31, 2025

(in thousands, except share and per share data) June 30, 2026 December 31, 2025

Current assets:

42 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

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) 2026 2025 2026 2025

8 unchanged sentences

Total operating expenses 2,134,371 1,947,550 4,187,064 3,833,289

Non-operating expenses (income):

Non-operating expense (income):

Interest expense, net 45,800 40,211 89,753 77,427

Other ( 3,294 ) ( 1,930 ) ( 6,369 ) ( 2,838 )

Total non-operating expenses 40,878 36,308

Total non-operating expense 42,506 38,281 83,384 74,589

Income before income taxes 293,830 338,557 539,223 590,194

4 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31,

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

(in thousands) 2026 2025 2026 2025

1 unchanged sentence

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

Foreign currency translation adjustments, net of income taxes in 2026 — $ 15,027 ;

2025 — $ 16,766

Pension and postretirement benefit adjustments, net of income taxes in 2026 — $ 60 ;

Foreign currency translation adjustments, net of income taxes in 2026 — $ 445 and $ 14,582 ;

2025 — $ 40,342 and $ 57,108

( 35,358 ) 136,828 ( 34,680 ) 186,157

Pension and postretirement benefit adjustments, net of income taxes in 2026 — $ 821 and $ 761 ;

2025 — $ 1,325 and $ 2,652

291 3,683 ( 2,086 ) 7,367

2 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

(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

April 1, 2026 137,624,545 $ 137,625 $ 240,228 $ ( 513,465 ) $ 4,611,029 $ 4,475,417 $ 16,800 $ 4,492,217

Net income — — — — 227,558 227,558 — 227,558

Other comprehensive loss, net of tax — — — ( 35,067 ) — ( 35,067 ) — ( 35,067 )

Cash dividend declared, $ 1.0625 per share

— — — — ( 146,475 ) ( 146,475 ) — ( 146,475 )

Shares issued from employee incentive plans 235,036 235 ( 13,186 ) — — ( 12,951 ) — ( 12,951 )

Share-based compensation — — 17,530 — — 17,530 — 17,530

Noncontrolling interest activities — — — — — — 977 977

June 30, 2026 137,859,581 $ 137,860 $ 244,572 $ ( 548,532 ) $ 4,692,112 $ 4,526,012 $ 17,777 $ 4,543,789

Six months ended June 30, 2026

January 1, 2026 137,617,832 $ 137,618 $ 228,370 $ ( 511,766 ) $ 4,568,769 $ 4,422,991 $ 17,372 $ 4,440,363

6 unchanged sentences

Noncontrolling interest activities — — — — — — 405 405

March 31, 2026 137,624,545 $ 137,625 $ 240,228 $ ( 513,465 ) $ 4,611,029 $ 4,475,417 $ 16,800 $ 4,492,217

Three Months Ended March 31, 2025

June 30, 2026 137,859,581 $ 137,860 $ 244,572 $ ( 548,532 ) $ 4,692,112 $ 4,526,012 $ 17,777 $ 4,543,789

Three Months Ended June 30, 2025

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

Cash dividend declared, $ 1.03 per share

— — — — ( 143,265 ) ( 143,265 ) — ( 143,265 )

Shares issued from employee incentive plans 303,242 303 ( 15,055 ) — — ( 14,752 ) — ( 14,752 )

Share-based compensation — — 15,606 — — 15,606 — 15,606

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

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

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

5 unchanged sentences

Share-based compensation — — 24,180 — — 24,180 — 24,180

Purchase of stock — — — — — — — —

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

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

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

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2026 2025

4 unchanged sentences

Share-based compensation 29,698 24,180

Excess tax benefits from share-based compensation ( 46 ) ( 182 )

Other operating activities, including changes in operating assets and liabilities ( 247,421 ) ( 542,790 )

Net cash provided by (used in) operating activities 63,916 ( 40,827 )

Net cash provided by operating activities 464,114 169,115

Investing activities:

12 unchanged sentences

Other financing activities ( 26,679 ) ( 20,268 )

Net cash provided by financing activities 56,713 128,742

Net cash provided by (used in) financing activities ( 124,163 ) 102,527

Effect of exchange rate changes on cash and cash equivalents ( 30,006 ) 24,310

3 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

21 unchanged sentences

These adjustments are of a normal recurring nature.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of results for the year ended December 31, 2026.

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of results for the year ended December 31, 2026.

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

11 unchanged sentences

This guidance should be applied either prospectively to financial statements issued after the effective date of this update or retrospectively to all prior

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periods presented in the financial statements.

5 unchanged sentences

This update provides revised guidance aimed at refining the accounting for costs related to internal-use software.

The update removes the concept of distinct project phases and requires that capitalization of software costs begins once (1) management authorizes and commits to funding a computer software project, and (2) it is likely the project will be completed, and the software will be used to perform the function as intended.

The update removes the concept of distinct project phases and requires that capitalization of software costs begins once (1) management authorizes and commits to funding a computer software project, and (2) it is probable the project will be completed, and the software will be used to perform the function as intended.

When assessing whether completion is probable, entities must carefully consider any substantial uncertainties in development.

12 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, 2026 December 31, 2025

(in thousands) June 30, 2026 December 31, 2025

Prepaid expenses $ 191,694 $ 150,014

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, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Instrument Balance Sheet Location Notional Balance Notional Balance

3 unchanged sentences

Foreign currency debt Long-term debt € 475,000 $ 542,640 € 475,000 $ 558,030

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The tables below presents pre-tax gains and losses related to net investment hedges:

1 unchanged sentence

(in thousands) 2026 2025 2026 2025

Three Months Ended March 31,

Three Months Ended June 30,

Net investment hedges:

2 unchanged sentences

Total $ ( 1,682 ) $ ( 152,234 ) $ 5,499 $ 5,755

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

(in thousands) 2026 2025 2026 2025

Six Months Ended June 30,

Net investment hedges:

Forward contracts $ 39,635 $ ( 153,086 ) $ 11,438 $ 11,514

Foreign currency debt 15,390 ( 62,415 ) — —

Total $ 55,025 $ ( 215,501 ) $ 11,438 $ 11,514

Fair Value of Financial Instruments

As of March 31, 2026 and December 31, 2025, the fair value of our senior unsecured notes was approximately $ 3.7 billion and $ 3.8 billion, respectively, which are designated as Level 2 in the fair value hierarchy.

As of June 30, 2026 and December 31, 2025, the fair value of our senior unsecured notes was approximately $ 3.6 billion and $ 3.8 billion, respectively, 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.

3 unchanged sentences

The bond fund is classified as a noncurrent available-for-sale ("AFS") debt security within other assets in the Condensed Consolidated Balance Sheets.

As of March 31, 2026 and December 31, 2025, the fair value of the AFS debt security was $ 244 million and $ 243 million, respectively.

As of June 30, 2026 and December 31, 2025, the fair value of the AFS debt security was $ 246 million and $ 243 million, respectively.

The difference between fair value and amortized cost at each date is immaterial.

1 unchanged sentence

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

As of March 31, 2026, we were in compliance with all such covenants.

As of March 31, 2026, the total borrowings of the independents subject to guarantee by us were approximately $ 519 million.

As of June 30, 2026, we were in compliance with all such covenants.

As of June 30, 2026, the total borrowings of the independents subject to guarantee by us were approximately $ 504 million.

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

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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, 2026, 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, 2026, we have recognized $ 32 million of certain assets and liabilities for the guarantees related to the independents’ borrowings.

As of June 30, 2026, 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, 2026, we have recognized $ 29 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.

6 unchanged sentences

Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions.

In turn, we direct payment to the

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financial institutions, rather than the suppliers, for the invoices sold to the financial institutions.

In turn, we direct payment to the financial institutions, rather than the suppliers, for the invoices sold to the financial institutions.

No guarantees are provided by us or any of our subsidiaries on third-party performance under the SCF program;

3 unchanged sentences

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, 2026 and December 31, 2025, the outstanding payment obligations to the financial institutions were $ 3.2 billion and $ 3.1 billion, respectively.

The amount settled through the SCF program was $ 1.0 billion and $ 1.1 billion for the three months ended March 31, 2026 and March 31, 2025, respectively.

(in thousands) March 31, 2026

As of June 30, 2026 and December 31, 2025, the outstanding payment obligations to the financial institutions were $ 3.2 billion and $ 3.1 billion, respectively.

The amount settled through the SCF program was $ 2.0 billion and $ 2.2 billion for the six months ended June 30, 2026 and June 30, 2025, respectively.

(in thousands) June 30, 2026

Obligations outstanding at the beginning of the period $ 3,140,825

Invoices confirmed during the year 1,028,046

Confirmed invoices paid during the year ( 993,415 )

Invoices confirmed during the period 2,048,099

Confirmed invoices paid during the period ( 2,017,462 )

Confirmed obligations outstanding at the end of the period $ 3,171,462

4 unchanged sentences

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) 2026 2025 2026 2025

5 unchanged sentences

Diluted earnings per share $ 1.65 $ 1.83 $ 3.01 $ 3.23

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Segment Information

1 unchanged sentence

The following table presents a summary of our reportable North America automotive segment financial information:

Three Months Ended March 31,

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

(in thousands) 2026 2025 2026 2025

9 unchanged sentences

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

Three Months Ended March 31,

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

(in thousands) 2026 2025 2026 2025

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) 2026 2025 2026 2025

7 unchanged sentences

EBITDA margin (2) 13.1 % 12.8 % 13.3 % 12.7 %

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(1) Gross margin is gross profit as a percentage of net sales.

2 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) 2026 2025 2026 2025

13 unchanged sentences

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

Three Months Ended March 31,

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

(in thousands) 2026 2025 2026 2025

7 unchanged sentences

(4) Adjustment primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.

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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) 2026 2025

5 unchanged sentences

Total assets $ 21,058,293 $ 20,431,067

Long-lived assets:

Net property, plant and equipment:

United States $ 1,257,461 $ 1,199,197

3 unchanged sentences

Mexico 1,259 963

Total long-lived assets $ 2,142,689 $ 1,986,807

Total net property, plant and equipment $ 2,152,789 $ 2,053,449

(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.

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) 2026 2025 2026 2025

18 unchanged sentences

Total net sales $ 6,536,951 $ 6,164,425 $ 12,801,891 $ 12,030,494

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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) 2026 2025 2026 2025

12 unchanged sentences

On January 2, 2026, we amended our A/R Sales Agreement to increase the facility capacity from $ 1 billion to $ 1.25 billion and extended the agreement's maturity through January 8, 2027.

We received a benefit from cash from operations of approximately $ 250 million in the quarter ended March 31, 2026.

We continue to be involved with the receivables transferred by the SPE to the unaffiliated financial institutions by providing collection services.

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 does not exceed $ 1.25 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 $ 1.25 billion and $ 1.0 billion as of March 31, 2026 and December 31, 2025, respectively.

The amount of receivables pledged as collateral as of March 31, 2026 and December 31, 2025 is approximately $ 1.5 billion and $ 1.5 billion, respectively.

We received a benefit from cash from operations of approximately $ 250 million during the first quarter of 2026.

We continue to be involved with the receivables transferred by the SPE to unaffiliated financial institutions by providing collection services.

As cash is collected on sold receivables, the SPE continuously transfers ownership and control of new qualifying receivables to unaffiliated financial institutions so that the total principal amount outstanding of receivables sold does not exceed $ 1.25 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 $ 1.25 billion and $ 1.0 billion as of June 30, 2026 and December 31, 2025, respectively.

The amount of receivables pledged as collateral as of June 30, 2026 and December 31, 2025 is approximately $ 1.6 billion and $ 1.5 billion, respectively.

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

Three Months Ended March 31,

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

(in thousands) 2026 2025 2026 2025

2 unchanged sentences

Continuous cash activity related to the A/R Sales Agreement is reflected in net cash provided by (used in) operating activities in the Condensed Consolidated Statements of Cash Flows.

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

Those fees, which totaled $ 12 million and $ 13 million for the three months ended March 31, 2026 and 2025, respectively, are recorded within other non-operating expense (income) in the Condensed Consolidated Statements of Income.

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

Those fees, which totaled $ 23 million and $ 26 million for the six months ended June 30 , 2026 and 2025, 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, 2026 and December 31, 2025 is not material.

The reserve recognized for this recourse obligation as of June 30, 2026 and December 31, 2025 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.

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Unsecured Revolving Credit Facility

1 unchanged sentence

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 $ 554 million outstanding borrowings under the Unsecured Revolving Credit Facility as of March 31, 2026 and $ 600 million outstanding as of December 31, 2025.

We had $ 70 million outstanding borrowings under the Unsecured Revolving Credit Facility as of June 30, 2026 and $ 600 million outstanding as of December 31, 2025.

Term Loan A Facilities

On April 28, 2026, we amended our Unsecured Revolving Credit Facility to establish an initial Term Loan A Facility in an aggregate principal amount of $ 500 million and a Delayed Draw Term Loan Facility in an aggregate principal amount of $ 500 million (together, the “Term Loan A Facilities”).

The Term Loan A Facilities mature on October 28, 2027.

On the closing date, the $ 500 million Term Loan A Facility was fully drawn and remained fully drawn as of June 30, 2026.

As of June 30, 2026, the $ 500 million Delayed Draw Term Loan Facility remained undrawn and available.

Commercial Paper Program

4 unchanged sentences

The notes are issued at par less a discount representing an interest factor or, if interest bearing, at par.

We had $ 607 million outstanding under our commercial paper program as of March 31, 2026, presented in short-term borrowings on the Condensed Consolidated Balance Sheet, and $ 343 million outstanding borrowings as of December 31, 2025.

The weighted average interest rate of our commercial paper outstanding as of March 31, 2026 was 4.39 %.

We had $ 683 million outstanding under our commercial paper program as of June 30, 2026 and $ 343 million outstanding borrowings as of December 31, 2025, presented in short-term borrowings on the Condensed Consolidated Balance Sheet.

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

At March 31, 2026, we were in compliance with all such covenants.

We acquired several businesses for approximately $ 18 million and $ 152 million, which includes certain non-cash consideration and is net of cash acquired, during the three months ended March 31, 2026 and March 31, 2025, respectively.

At June 30, 2026, we were in compliance with all such covenants.

We acquired several businesses for approximately $ 46 million and $ 211 million, which includes certain non-cash consideration and is net of cash acquired, during the six months ended June 30, 2026 and June 30, 2025, 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.

We recorded approximately $ 6 million of goodwill and other intangible assets associated with these acquisitions, primarily related to a U.S.

acquisition in our industrial segment.

Other intangible assets acquired of $ 2 million consisted of customer relationships with weighted average amortization lives of 20 years.

We recorded approximately $ 26 million of goodwill and other intangible assets associated with the acquisitions during the six months ended June 30, 2026.

Other intangible assets acquired of $ 10 million during the six months ended June 30, 2026 consisted of customer relationships with weighted average amortization lives of 20 years.

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

Accumulated Other Comprehensive Loss

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

Changes in Accumulated Other

Comprehensive Loss by Component,

Net of Income Taxes

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

Changes in Accumulated Other Comprehensive Loss by Component, Net of Income Taxes

(in thousands) Pension and Other Post-Retirement Benefits Foreign Currency Translation Total

3 unchanged sentences

Other comprehensive income (loss), net of income taxes ( 2,086 ) ( 34,680 ) ( 36,766 )

Ending balance, March 31, 2026 $ ( 42,270 ) $ ( 471,195 ) $ ( 513,465 )

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Changes in Accumulated Other

Comprehensive Loss by Component,

Net of Income Taxes

Ending balance, June 30, 2026 $ ( 41,979 ) $ ( 506,553 ) $ ( 548,532 )

Changes in Accumulated Other Comprehensive Loss by Component, Net of Income Taxes

(in thousands) Pension and Other Post-Retirement Benefits Foreign Currency Translation Total

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 )

Generally, tax effects in AOCL are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCL reclassifications are recognized.

17 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 3,407 pending asbestos lawsuits as of March 31, 2026.

The amount accrued for pending and future claims was $ 309 million as of March 31, 2026, which represented our best estimate of the liability within our calculated range of $ 249 million to $ 385 million, discounted using a discount rate of 4.30 %.

We have 3,513 pending asbestos lawsuits as of June 30, 2026.

The amount accrued for pending and future claims was $ 294 million as of June 30, 2026, which represented our best estimate of the liability within our calculated range of $ 240 million to $ 372 million, discounted using a discount rate of 4.44 %.

The amount accrued for pending and future claims was $ 317 million as of December 31, 2025, which represented our best estimate of the liability within our calculated range of $ 258 million to $ 397 million, discounted using a discount rate of 4.18 %.

Our undiscounted product liability was $ 390 million and $ 398 million as of March 31, 2026 and December 31, 2025, respectively.

Our undiscounted product liability was $ 375 million and $ 398 million as of June 30, 2026 and December 31, 2025, respectively.

There have been no significant developments to the information presented in our 2025 Annual Report on Form 10-K with respect to litigation or commitments and contingencies.

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We hold insurance policies that cover some asbestos settlements and defense costs.

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 $ 36 million and $ 38 million as of March 31, 2026 and December 31, 2025, respectively.

Our receivable for estimated insurance recoveries related to pending and future claims was $ 36 million and $ 38 million as of June 30, 2026 and December 31, 2025, respectively.

Environmental Liabilities

3 unchanged sentences

Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act.

The financial impact of this ruling is uncertain, as it is unclear to what extent duties will be refunded by t he U.S.

Customs and Border Protection ("CBP"), what processes will govern such refunds, or if we can collect related accounts receivable.

We are working with the C BP and are continuing to evaluate the impact of these developments on our business and financial statements.

The financial impact of this ruling remains subject to ongoing administrative processes, including the extent and timing of refunds from U.S.

Customs and Border Protection (“CBP”).

Our exposure as the importer of record represents less than 0.5% of our total purchases.

Accordingly, we have not recorded any adjustments to our financial statements related to potential refunds, as any such amounts would not be material and are not reasonably estimable at this time.

We continue to take steps to manage tariff-related cost pressures;

however, these actions may not fully offset increased costs in future periods.

During the second quarter of 2026, we submitted refund claims related to these tariffs.

The claims submitted and refunds received through June 30, 2026 were not material to our condensed consolidated financial statements.

Restructuring and Other Costs

1 unchanged sentence

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

We incurred $ 58 million and $ 55 million in restructuring and other costs for the three months ended March 31, 2026 and March 31, 2025, respectively.

We incurred $ 129 million and $ 100 million in restructuring and other costs for the six months ended June 30, 2026 and June 30, 2025, respectively.

The tables below summarize the activity related to the global restructuring initiative.

5 unchanged sentences

Translation ( 237 ) ( 11 ) ( 248 )

Liability as of March 31, 2026 $ 19,151 $ 568 $ 19,719

Liability as of June 30, 2026 $ 17,478 $ 495 $ 17,973

(1) Amount includes professional fees, accelerated rent, facility closure costs, moving expenses and asset impairment costs.

Amount excludes a $ 5 million non-cash charge reflected in cost of goods sold for inventory liquidated rather than moved during facility consolidation in connection with the restructuring.

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

4 unchanged sentences

Translation 1,847 41 1,888

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

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

(1) Amount includes professional fees, accelerated rent, facility closure costs, moving expenses and asset impairment costs.

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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.

What changed 10-Q

Item 1. Financial Statements