4 unchanged sentences
Depending upon the particular facts and circumstances, the Company may also be subject to indemnification obligations under its contracts with such clients relating to these matters.
−Removed: As such, the Company is required to assess the likelihood of any adverse outcomes to these matters as well as potential ranges of losses and possible recoveries.
+Added: Any pending legal proceedings and claims that arise from time to time in the ordinary course of its business may not be covered by insurance.
+Added: As such, the Company is required to assess the likelihood of adverse outcomes for these matters, as well as potential loss ranges and possible recoveries.
The Company may not be covered by insurance as it pertains to some or all of these matters.
A determination of the amount of the provision required for these commitments and contingencies, if any, which would be charged to earnings, is made after careful analysis of each matter.
−Removed: The Company records a liability when management believes an adverse outcome from a loss contingency is both probable and the amount, or a range, can be reasonably estimated.
−Removed: From time to time, the Company must estimate the potential loss even though the party adverse to the Company has not asserted any specific amounts.
+Added: The Company records liability when management believes an adverse outcome from a loss contingency is both probable and the amount, or a range, can be reasonably estimated.
+Added: From time to time, the Company must estimate potential losses even though the adverse party has not asserted any specific amounts.
Significant judgment is required to determine both the probability of loss and the estimated amount.
1 unchanged sentence
Once established, a provision may change in the future due to new developments or changes in circumstances.
−Removed: The Company could increase or decrease its earnings in the period that the changes are made.
−Removed: The Company is exposed to various asserted claims as of December 28, 2024, where the Company believes it has a probability of loss.
+Added: The Company could increase or decrease its earnings in the period in which the changes are made.
+Added: The Company is exposed to various asserted claims as of January 3, 2026, where the Company believes it has a probability of loss.
Additionally, the Company is exposed to other asserted claims whereby an amount of loss has not been declared, and the Company cannot determine the potential loss.
1 unchanged sentence
However, the Company believes that such matters will not, either individually or in the aggregate, have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows.
−Removed: As of December 28, 2024, the Company has accrued $2.8 million for asserted claims.
−Removed: In April 2022, a client of the Company’s Engineering segment alleged that a system partially designed by the Company is not operating as intended and that the Company is responsible.
−Removed: The Company has not determined if it has any liability.
−Removed: In the event of liability, the Company believes its damages are contractually limited to an amount no higher than $3.3 million.
−Removed: Furthermore, the Company believes that if it were found liable, any damages would be covered by insurance, subject to a deductible of $0.5 million and maximum coverage of $5.0 million.
−Removed: While the clients estimated damages are not known, the client has either inferred or asserted during settlement discussions that it’s damages significantly exceed the Company’s insurance coverage of $5 million.
−Removed: While the Company attempts to find a mutually agreeable solution, the Company has reserved $0.5 million for this project.
−Removed: The Company can give no assurance that its liability is limited to $3.3 million or that liability over $0.5 million, if any, will be covered by insurance.
−Removed: The Company is also subject to other pending legal proceedings and claims that arise from time to time in the ordinary course of its business, which may not be covered by insurance.
+Added: As of January 3, 2026, the Company has accrued $0.3 million for asserted claims.
MINE SAFETY DISCLOSURES
1 unchanged sentence
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.