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Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | NOTE 13 – COMMITMENTS AND CONTINGENCIES Legal matters While we are involved from time to time in claims and legal proceedings that result from, and are incidental to, the conduct of our business including business and commercial litigation, employee and product liability claims, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party, or of which any of their property is subject. It is possible, however, that an adverse resolution of an unexpectedly large number of such individual claims or proceedings could in the aggregate have a material adverse effect on the results of operations for a particular year or quarter. Guarantees The Company and certain of the Company’s consolidated subsidiaries are contingently liable for certain obligations of affiliated companies primarily in the form of guarantees of debt and performance under contracts entered into as a normal business practice. This includes guarantees of non-U.S. excise taxes and customs duties. As at June 30, 2019, such guarantees which are not recognized as liabilities in the condensed consolidated financial statements amounted to $4.6 million. Under the terms of the guarantee arrangements, generally the Company would be required to perform should the affiliated company fail to fulfil its obligations under the arrangements. In some cases, the guarantee arrangements have recourse provisions that would enable the Company to recover any payments made under the terms of the guarantees from securities held of the guaranteed parties’ assets. The Company and its affiliates have numerous long-term sales and purchase commitments in their various business activities, which are expected to be fulfilled with no adverse consequences material to the Company. Network Security Incident On June 27, 2019 we experienced a network security incident that prevented access to certain information technology systems and data within our network. The Company took prompt action designed to contain the incident and implemented our business continuity plan. We are working closely with external cybersecurity experts to restore any remaining affected information technology systems. The matter was reported to U.S. law enforcement authorities and the Information Commissioner’s Office in the United Kingdom. Since the time of the network security incident, our manufacturing processes, which rely on separate networks, have continued to operate safely, largely without interruption, and in compliance with all environmental regulations. The security incident primarily impacted our computer access, email, as well as our computing functions which included: order entry, shipping and receiving, vendor payments, production scheduling, and other systems. These are now either restored or being processed manually, thereby providing business continuity, although resulting in certain delays in sales execution. We have also taken additional precautionary measures to ensure the continued safe operations of our sites. We have found no evidence that any customer, supplier or employee information was accessed or extracted during the incident, or that any customer or supplier systems or data outside our network have been impacted. We are still assessing the full financial impact of the incident, including in relation to responsive insurance coverages that may be available, but we believe it has not materially impacted the results for the quarter ended June 30, 2019. Although we expect to incur material future costs, we believe the vast majority will be covered by insurance policies and therefore will have minimal overall net impact on future results. Future orders may be impacted, as we manage production scheduling and shipping, potentially causing delays in order fulfilment. Any delays in order fulfilment or other impacts from this incident may result in an adverse effect on our business, financial condition and results of operations.

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