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Contingencies, Significant Estimates and Concentrations | 12 Months Ended
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Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract] |
Contingencies, Significant Estimates and Concentrations | 18. Contingencies, Significant Estimates and Concentrations Personal Injury Actions and Other — Product and general liability claims are made against the Company from time to time in the ordinary course of business. The Company is generally self-insured for future claims up to $5.0 million per claim. Accordingly, a reserve is maintained for the estimated costs of such claims. Estimated net liabilities for product and general liability claims totaled $41.2 million at December 31, 2022, $45.1 million at December 31, 2021 and $49.5 million at September 30, 2021. There is inherent uncertainty as to the eventual resolution of unsettled claims. Management, however, believes that any losses in excess of established reserves will not have a material effect on the Company’s financial condition, results of operations or cash flows. Market Risks — The Company was contingently liable under bid, performance and specialty bonds totaling $2.04 billion at December 31, 2022, $1.24 billion at December 31, 2021 and $1.13 billion at September 30, 2021. Open standby letters of credit issued by the Company’s banks in favor of third parties totaled $18.8 million at December 31, 2022, $22.1 million at December 31, 2021 and $22.3 million at September 30, 2021. Other Matters — The Company is subject to other environmental matters and legal proceedings and claims, including patent, antitrust, product liability, warranty and state dealership regulation compliance proceedings that arise in the ordinary course of business. Although the final results of all such matters and claims cannot be predicted with certainty, management believes that the ultimate resolution of all such matters and claims will not have a material effect on the Company’s financial condition, results of operations or cash flows. Actual results could vary, among other things, due to the uncertainties involved in litigation. At December 31, 2022, approximately 19% of the Company’s workforce was covered under collective bargaining agreements. The Company derived a significant portion of its revenue from the DoD, as follows (in millions):
|  | Year Ended December 31, |  |  | Three Months Ended December 31, (transition period) |  |  | Year Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2021 |  |  | 2020 |
DoD |  | $ | 1,995.8 |  |  | $ | 521.2 |  |  | $ | 2,395.1 |  |  | $ | 2,300.4 |
Foreign military sales |  |  | 76.2 |  |  |  | 0.5 |  |  |  | 139.2 |  |  |  | 71.2 |
Total DoD sales |  | $ | 2,072.0 |  |  | $ | 521.7 |  |  | $ | 2,534.3 |  |  | $ | 2,371.6 |
No other customer represented more than 10% of sales. Certain risks are inherent in doing business with the DoD, including technological changes and changes in levels of defense spending. All DoD contracts contain a provision that they may be terminated at any time at the convenience of the U.S. government. In such an event, the Company is entitled to recover allowable costs plus a reasonable profit earned to the date of termination. Major contracts for military systems are performed over extended periods of time and are subject to changes in scope of work and delivery schedules. Pricing negotiations on changes and settlement of claims often extend over prolonged periods of time. The Company’s ultimate profitability on such contracts may depend on the eventual outcome of an equitable settlement of contractual issues with the Company’s customers. Because the Company is a relatively large defense contractor, the Company’s U.S. government contract operations are subject to extensive annual audit processes and to U.S. government investigations of business practices and cost classifications from which legal or administrative proceedings can result. Based on U.S. government procurement regulations, under certain circumstances the Company could be fined, as well as suspended or debarred from U.S. government contracting. During a suspension or debarment, the Company would also be prohibited from selling equipment or services to customers that depend on loans or financial commitments from the Export-Import Bank, Overseas Private Investment Corporation and similar U.S. government agencies. The Company recognized an $18.5 million gain during the year ended September 30, 2020 upon receipt of proceeds for a claim under its property and business interruption insurance. The claim was primarily for property damage and lost profits due to a weather-related roof collapse that occurred at one of the Commercial segment’s facilities in February 2019. The gain was recognized as a reduction of cost of sales ($10.8 million), a reduction of selling, general and administrative expense ($1.5 million) and miscellaneous income ($6.2 million).

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