Customer Related Liabilities

9 Months Ended

Sep. 30, 2025

Note 7 – Customer-Related Liabilities

Customer-related liabilities as of September 30, 2025 and December 31, 2024 primarily include liabilities for product warranty claims and deposits received on future orders. The Corporation provides a limited warranty on its products, known as an “assurance-type” warranty, and may issue credit notes or replace products free of charge for valid claims. A warranty is considered an assurance-type warranty if it provides the customer with assurance that the product will function as intended. Historically, warranty claims have been insignificant. The Corporation records a provision for estimated product warranties at the time the underlying sale is recorded. The provision is based on historical experience as a percentage of sales adjusted for probable and known claims.

Changes in the liability for product warranty claims consisted of the following:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Balance at beginning of the period	$	5,579		$	5,175		$	5,423		$	5,539
Satisfaction of warranty claims		(436	)		(330	)		(1,727	)		(1,016	)
Provision for warranty claims, net		20			440			948			884
Other, primarily impact from changes in foreign currency exchange rates		(35	)		215			484			93
Balance at end of the period	$	5,128		$	5,500		$	5,128		$	5,500

Customer deposits represent amounts collected from, or invoiced to, a customer in advance of revenue recognition when necessary to secure the right to a specific product. The liability for customer deposits is reversed when the Corporation satisfies its performance obligations and control of the inventory transfers to the customer, typically when title transfers. The majority of performance obligations related to customer deposits are expected to be satisfied in less than one year. Performance obligations related to customer deposits expected to be satisfied beyond one year are classified as a noncurrent liability on the condensed consolidated balance sheets.

Changes in customer deposits consisted of the following:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Balance at beginning of the period	$	17,177		$	18,807		$	21,503		$	13,078
Satisfaction of performance obligations		(9,246	)		(6,156	)		(28,493	)		(13,541	)
Receipt of additional deposits		7,218			9,759			22,007			22,892
Other, primarily impact from changes in foreign currency exchange rates		(150	)		89			(18	)		70
Balance at end of the period		14,999			22,499			14,999			22,499
Deposits - Other noncurrent liabilities		(3,355	)		(4,213	)		(3,355	)		(4,213	)
Deposits - Other current liabilities	$	11,644		$	18,286		$	11,644		$	18,286