Item 3. Legal Proceedings
Item 3.
Legal Proceedings
We are subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct periodic examinations of and administrative proceedings regarding our business. Following an audit in
fiscal 2019 (“Audit”), the U.S. Customs and Border Protection (“CBP”) stated that it believed that we owed additional duties relating to products that we imported from Mexico from 2011 through mid-2018. The CBP recently requested that we pay
additional duties of approximately $3,900,000 from 2011 through mid-2018 related to the findings of the Audit. We do not believe that this amount is correct and believe that we have numerous defenses and are disputing this amount vigorously. We
cannot assure that the CBP will agree or that we will not need to accrue or pay additional amounts in the future.
Item 4.
Mine Safety Disclosures
Not applicable.
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Table of Contents
PART II
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