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Commitments and Contingencies
 9 Months Ended
Sep. 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 September 30, 2019, such guarantees which are not recognized as liabilities in the condensed consolidated financial statements amounted to $4.7 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
As reported in our Quarterly Report on Form
10-Q
for the quarter ended June 30, 2019, we experienced a network security incident on June 27, 2019 that prevented access to certain information technology systems and data within our network. We took immediate action to contain the incident and implemented our business continuity plan. We have worked closely with external cybersecurity experts to restore our affected information technology systems. Most of our affected systems and data have been restored and we continue work to recover the remaining systems. The matter has been reported to local law enforcement authorities and the Information Commissioner’s Office in the United Kingdom.
We are still assessing the financial impact of the incident, including in relation to responsive insurance coverages that may be available. The full financial impacts are not known at this time, but it has not materially impacted the results for either the three or nine months ended September 30, 2019.