Financial Analysis

"Loss Contingencies From time to time, the Company is named a defendant in legal actions arising out of the normal course of business. The Company is not a party to any pending legal proceeding other than ordinary, routine litigation incidental to its business. The Company does not believe that any of its pending litigation will have a material impact on its business. Accrued general and product liability costs are actuarially estimated reserves based on amounts determined from loss reports, individual cases filed with the Company, and an amount for losses incurred but not reported. The aggregate amounts of reserves were $33,196,000 (gross of estimated insurance recoveries of $19,959,000) and $19,446,000 (gross of estimated insurance recoveries of $6,995,000) of which $28,796,000 and $15,046,000 are included in Other non-current liabilities and $4,400,000 and $4,400,000 in Accrued liabilities as of March 31, 2026 and 2025, respectively. The liability for accrued general and product liability costs are funded by investments in marketable securities (see Notes 2 and 7). The following table provides a reconciliation of the beginning and ending balances for accrued general and product liability (in thousands): Year Ended March 31, 2026 2025 2024 Accrued general and product liability, beginning of year $ 19,446 $ 19,988 $ 21,103 Accrued general and product liability acquired with Kito Crosby 14,506 Estimated insurance recoveries (1,037) (642) (634) Add provision for claims 4,364 3 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Pensions and Other Benefit Plans The Company provides retirement plans, including defined benefit and defined contribution plans, and other postretirement benefit plans to certain employees. The Company applies ASC Topic 715 Compensation Retirement Benefits, which required the recognition in pension and other postretirement benefits obligations and accumulated other comprehensive income of actuarial gains or losses, prior service costs or credits and transition assets or obligations that had previously been deferred. This statement also requires an entity to measure a defined benefit postretirement plans assets and obligations that determine its funded status as of the end of the fiscal year. Pension Plans The Company provides defined benefit pension plans to certain employees. The Company uses March 31 as the measurement date. The following provides a reconciliation of benefit obligation, plan assets, and funded status of the plans: March 31, 2026 2025 Change in benefit obligation: Benefit obligation at beginning of year $ 158,629 $ 268,025 Acquired benefit obligation from the Kito Crosby Acquisition 49,916 Service cost 730 477 Interest cost 7,653 9,783 Actuarial (gain) loss (5,611) (5,937) Benefits paid (13,580) (18,733) Settlement (95,080) Foreign exchange rate changes 3,284 94 Benefit obligation at end of year $ 201,021 $ 158,629 Change in plan assets: Fair value of plan assets at beginning of year $ 94,240 $ 199,592 Fair value of plan assets acquired from the Kito Crosby …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"Debt Consolidated long-term debt of the Company consisted of the following: March 31, 2026 2025 Term Loan B $ 1,456,990 $ 437,560 Senior Secured Note 900,000 AR Securitization 53,400 25,000 Revolver 25,000 Other debt 5,606 Unamortized deferred financing costs, net (59,538) (3,852) Total debt 2,381,458 458,708 Less: current portion 165,606 50,000 Total debt, less current portion $ 2,215,852 $ 408,708 The Companys long-term debt consists of borrowing with an original contractual maturity greater than one year, including its 2026 Term Loan B, Senior Secured Notes, Accounts Receivable Securitization, and 2026 Revolving Credit Facility. In connection with the closing of the Kito Crosby Acquisition, the Company entered into a new senior secured term loan credit facility (2026 Term Loan B) and a new revolving credit facility with an expanded bank lender group (2026 Revolving Credit Facility) and issued senior secured notes (Senior Secured Notes). The 2026 Term Loan B, 2026 Revolving Credit Facility and Senior Secured Notes also replaced the Companys previous term loan credit facility (2024 Term Loan B) and revolving credit facility (2024 Revolving Credit Facility) and proceeds from the new credit facilities were used to fund the Kito Crosby Acquisition and fully repay the 2024 Term Loan B. There was no balance on the 2024 Revolving Credit Facility at the time of replacement by the Revolving Credit Facility. The Companys accounts receivable securitization credit facility (AR Securit …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table illustrates the disaggregation of revenue by product grouping for the years ending March 31, 2026, 2025 and 2024 (in thousands): Year Ended March 31, Net Sales by Product Grouping 2026 2025 2024 Industrial Products $ 508,642 $ 328,095 $ 344,190 Crane Solutions 434,696 398,117 412,076 Precision Conveyors Products 148,567 154,659 163,463 Engineered Products 102,178 82,029 93,728 All other (632) 127 83 Total $ 1,193,451 $ 963,027 $ 1,013,540

DisaggregationOfRevenueTableTextBlock

"Employee Stock Ownership Plan (""ESOP"") Effective January 1, 2012, the ESOP was closed to new hires. Prior to this date, substantially all of the Companys U.S. non-union employees were participants in the ESOP. Additionally, during the year ended March 31, 2015, the final loan payment was made by the ESOP to the Company and there was no compensation expense recorded in fiscal years 2026, 2025, or 2024. At March 31, 2025, 143,000 of ESOP shares, respectively, were allocated or available to be allocated to participants accounts. The ESOP was terminated effective August 4, 2025 and these remaining shares were distributed in fiscal 2026."

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock

"Fair Value Measurements ASC 820 establishes the standards for reporting financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value on a recurring basis (at least annually). Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the ""exit price"") in an orderly transaction between market participants at the measurement date. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the valuation techniques that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is separated into three levels based on the reliability of inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not en …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets The Company has four and three reporting units as of March 31, 2026 and March 31, 2025, respectively. The Linear Motion Products reporting unit (which designs, manufactures, and sources mechanical and electromechanical actuators and rotary unions) had goodwill of $9,699,000 at March 31, 2026 and 2025, respectively. The Rest of Products reporting unit (representing the hoist, chain, and forgings, digital power control systems, and distribution businesses) had goodwill of $265,708,000 and $305,110,000 at March 31, 2026 and 2025, respectively. The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of $201,359,000 and $395,998,000 at March 31, 2026 and March 31, 2025, respectively. In February of fiscal 2026, the Company completed its acquisition of Kito Crosby as described in Note 3. The goodwill from the acquisition has been preliminarily calculated to be $931,874,000 at March 31, 2026. Given its proximity to the Company's goodwill measurement date of February 28, 2026, the Company has separately evaluated the goodwill of Kito Crosby as part of its opening balance sheet procedures and performed a qualitative assessment as of the annual assessment date. In fiscal 2027 the Company will reassess its reporting units as the integration of Kito Crosby progresses. Fiscal 2026 Annual Goodwill and Intangible Asset Impairment Test The Company may first elect to perform a qualitative evaluation to determine w …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes United States income (loss) before income tax expense was $(162,297,000), $(44,297,000), and $20,464,000 for the years ended March 31, 2026, 2025, and 2024, respectively. Income (loss) before income tax expense also includes foreign subsidiary income of $(44,210,000), $38,791,000, and $41,063,000 for the years ended March 31, 2026, 2025, and 2024, respectively. The provision for income tax expense (benefit) consisted of the following: Year Ended March 31, 2026 2025 2024 Current income tax expense (benefit): United States Federal $ 15,648 $ 6,843 $ 15,375 State taxes 4,401 850 2,715 Foreign 13,416 12,226 12,097 Deferred income tax expense (benefit): United States 866 (17,411) (12,451) Foreign (11,401) (2,875) (2,834) $ 22,930 $ (367) $ 14,902 Income taxes paid (net of refunds received): Year Ended March 31, 2026 2025 2024 Federal $ 24,674 $ 2,568 $ 15,536 State and Local $ 5,218 $ 1,999 $ 2,134 Foreign Germany $ 5,680 $ 7,339 $ 3,550 Hungary $ $ 1,568 $ Mexico $ $ $ 1,948 Netherlands $ $ 1,386 $ United Kingdom $ $ 1,286 $ Other $ 10,277 $ 4,375 $ 5,200 Total net income tax payments $ 45,850 $ 20,520 $ 28,369 Effective March 31, 2026, the Company adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures retrospectively. Under ASU No. 2023-09, entities are required to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and provide more details about the rec …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases Nature of leases The Companys lease arrangements generally include real estate (manufacturing facilities, sales offices, distribution centers, warehouses), vehicles, and equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. At lease commencement, the Company evaluates whether the arrangement is a finance or operating lease, and accounts for it accordingly. Operating leases are included in other assets, other current liabilities, and other liabilities on the Companys Consolidated Balance Sheet. Finance leases are included in net property, plant, and equipment, current portion of long-term debt and finance lease obligation, and the remaining balance is recorded within Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Consolidated Balance Sheet. Leases with a term greater than one year are recognized on the Consolidated Balance Sheet as right-of-use (ROU) assets, lease obligations, and, if applicable, long-term lease obligations in the financial statement line items above. The Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheet. Lease obligations and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is generally not readily determinable, th …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Effects of New Accounting Pronouncements Recently adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures by requiring additional disaggregation in the effective tax rate reconciliation and income taxes paid by jurisdiction. The Company adopted ASU 2023-09 effective fiscal 2026 and applied the new disclosure requirements on a retrospective basis. The adoption of this standard did not have a material impact on the Companys consolidated financial statement disclosures. Topics Not Yet Adopted In April 2026, the FASB issued ASU 2026-01, Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock. The ASU provides guidance on the initial measurement of paid-in-kind (PIK) dividends on equity-classified preferred stock and does not affect the timing of dividend recognition. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. In February 2026, the Company issued Preferred Shares that include a paid-in-kind dividend feature. Upon adoption of ASU 2026-01, the Company will apply the guidance to measure PIK dividends on such preferred shares based on the contractual dividend rate and liquidation preference. The Company is evaluating the timing of adoption and does not expect adoption to have a mate …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue & Receivables Revenue Recognition: The core principle under ASC 606 is for revenue to be recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps: 1) Identifying contracts with customers A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each partys rights regarding the goods or services to be transferred and identifies the related payment terms, (ii) the contract has commercial substance, and (iii) the Company determines that collection of substantially all consideration for goods and services that are transferred is probable based on the customers intent and ability to pay the promised consideration. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods and services, the Company must apply ju …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment Information ASC 280 establishes the standards for reporting information about operating segments in financial statements. The Company has one operating and reportable segment for both internal and external reporting purposes. The Companys Chief Executive Officer (CEO), who is its chief operating decision maker (CODM), evaluates the performance of the Companys operating segment based on Income from operations. The CODM reviews budget-to-actual variances and year over year performance when making operating decisions to allocate resources to the segment. The significant segment expenses that are regularly provided on a quarterly basis to CODM are cost of products sold, research and development expenses, selling expenses, general and administrative expenses and amortization of intangibles, which are presented on the face of the Consolidated Statements of Operations and included in the calculation of Income from operations. Financial information relating to the Companys operations by geographic area is as follows: Year Ended March 31, 2026 2025 2024 Net sales: United States $ 693,814 $ 556,972 $ 591,497 Germany 231,439 217,189 233,797 Europe, Middle East, and Africa (Excluding Germany) 157,906 116,749 112,839 Canada 24,805 17,479 21,431 Asia Pacific 53,624 22,173 17,877 Latin America 31,863 32,465 36,099 Total $ 1,193,451 $ 963,027 $ 1,013,540 Note: Net sales to external customers are attributed to geographic areas based upon the location from which the product wa …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Accounting Principles and Practices Advertising Costs associated with advertising are expensed as incurred and are included in Selling expense in the Consolidated Statements of Operations. Advertising expenses were $4,281,000, $3,629,000, and $2,659,000 in fiscal 2026, 2025, and 2024, respectively. Business Combinations The Company accounts for business combinations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) ASC 805, Business Combinations. The results of operations of acquired businesses are included in the Companys consolidated financial statements from the respective dates of acquisition. The Company measures the identifiable assets acquired and liabilities assumed as of the acquisition date. Any excess of the purchase consideration over the fair value of the net identifiable assets acquired is recorded as goodwill. Cash and Cash Equivalents The Company considers as cash equivalents all highly liquid investments with an original maturity of three months or less. Concentrations of Labor Approximately 8.5% of the Companys employees are represented by six U.S. collective bargaining agreements with varying expiration dates starting in February 2027 through December 2028. We also have various labor agreements with our non-U.S. employees that we negotiate from time to time. Consolidation These consolidated financial statements include the accounts of the Company and its global subsidiaries. The Company's consolidation p …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Contingencies From time to time, the Company is named a defendant in legal actions arising out of the normal course of business. The Company is not a party to any pending legal proceeding other than ordinary, routine litigation incidental to its business. The Company does not believe that any of its pending litigation will have a material impact on its business. Accrued general and product liability costs are actuarially estimated reserves based on amounts determined from loss reports, individual cases filed with the Company, and an amount for losses incurred but not reported. The aggregate amounts of reserves were $33,550,000 (gross of estimated insurance recoveries of $20,109,000) as of June 30, 2026, of which $29,150,000 is included in Other non-current liabilities and $4,400,000 in Accrued liabilities on the Condensed Consolidated Balance Sheet. The liability for accrued general and product liability costs are funded by investments in marketable securities (refer to Note 6). The following table provides a reconciliation of the beginning and ending balances for accrued general and product liability (in thousands): June 30, 2026 March 31, 2026 Accrued general and product liability, beginning of period $ 33,196 $ 19,446 Accrued general and product liability acquired with Kito Crosby 14,506 Insurance recoveries received 179 (1,037) Add provision for claims 914 4,364 Deduct payments for claims (739) (4,083) Accrued general and product liability, end of period $ 33,550 $ 33,19 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Net Periodic Benefit Cost The following table sets forth the components of net periodic pension cost for the Companys defined benefit pension plans (in thousands): Three Months Ended June 30, 2026 June 30, 2025 Service costs $ 508 $ 110 Interest cost 2,290 1,839 Expected return on plan assets (1,477) (1,213) Net amortization (378) (243) Net periodic pension (benefit) cost $ 943 $ 493 Components of the net benefit costs other than the service cost component are recorded in Other (income) expense, net on the Condensed Consolidated Statements of Operations. Service costs are recorded as part of Income (loss) from operations. The three months ended June 30, 2026 includes the net periodic benefit cost of Kito Crosby, which was acquired in the fourth quarter of fiscal 2026. During fiscal year 2025, the Company terminated one of its U.S. pension plans. The remaining surplus of the terminated plan at June 30, 2026 of $3,279,000 is being used to fund certain obligations associated with the Company's U.S. defined contribution plans. Of the remaining balance, $2,210,000 is expected to be utilized in the next twelve months, and is therefore recorded in Prepaid expenses and other on the Condensed Consolidated Balance Sheet. The remaining balance is included in Other assets . The Company currently plans to contribute approximately $7,326,000 to its pension plans in fiscal 2027. …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"Debt Consolidated debt of the Company consisted of the following: June 30, 2026 March 31, 2026 2026 Term Loan B $ 1,452,865 $ 1,456,990 Senior Secured Notes 900,000 900,000 AR Securitization Facility 51,588 53,400 2026 Revolving Credit Facility 12,844 25,000 Other debt 5,539 5,606 Finance lease 11,336 11,549 Unamortized deferred financing costs, net (57,389) (59,538) Total debt 2,376,783 2,393,007 Less: current portion 154,047 165,606 Total debt, less current portion $ 2,222,736 $ 2,227,401 The Companys debt consists of borrowing with an original contractual maturity greater than one year, including its 2026 Term Loan B, Senior Secured Notes, Accounts Receivable Securitization, and 2026 Revolving Credit Facility. In connection with the closing of the Kito Crosby Acquisition, the Company entered into a new senior secured term loan credit facility (2026 Term Loan B) and a new revolving credit facility with an expanded bank lender group (2026 Revolving Credit Facility) and issued senior secured notes (Senior Secured Notes). The 2026 Term Loan B, 2026 Revolving Credit Facility and Senior Secured Notes also replaced the Companys previous term loan credit facility (2024 Term Loan B) and revolving credit facility (2024 Revolving Credit Facility) and proceeds from the new credit facilities were used to fund the Kito Crosby Acquisition and fully repay the 2024 Term Loan B. There was no balance on the 2024 Revolving Credit Facility at the time of replacement by the Revolving Credit Fa …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table illustrates the disaggregation of revenue by product grouping for the three months ended June 30, 2026 and June 30, 2025 (in thousands): Three Months Ended Net Sales by Product Grouping June 30, 2026 June 30, 2025 Industrial Products $ 344,662 $ 83,202 Crane Solutions 119,361 95,167 Precision Conveyor Products 41,942 35,863 Engineered Products 25,525 21,663 All other (29) 25 Total $ 531,461 $ 235,920

DisaggregationOfRevenueTableTextBlock

"Fair Value Measurements ASC 820 Fair Value Measurements and Disclosures establishes the standards for reporting financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value on a recurring basis (at least annually). Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the ""exit price"") in an orderly transaction between market participants at the measurement date. ASC 820-10-35-37 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the valuation techniques that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is separated into three levels based on the reliability of inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an acti …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill and indefinite lived trademarks are not amortized but are tested for impairment at least annually. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The fair value of a reporting unit is determined using a discounted cash flow methodology. The Companys reporting units are determined based upon whether discrete financial information is available and reviewed regularly, whether those units constitute a business, and the extent of economic similarities between those reporting units for purposes of aggregation. The Companys reporting units identified under ASC 350-20-35-33 are at the component level, or one level below the operating segment level as defined under ASC 280-10-50-10 Segment Reporting - Disclosure. The Company has four reporting units as of June 30, 2026 and March 31, 2026. The Linear Motion Products reporting unit (which designs, manufactures and sources mechanical and electromechanical actuators and rotary unions) had goodwill of $9,699,000 at June 30, 2026 and March 31, 2026. The Rest of Products reporting unit (representing the hoist, chain, forgings, digital power, motion control, manufacturing, and distribution businesses) had goodwill of $263,398,000 and $265,708,000 at June 30, 2026 and March 31, 2026, respectively. The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of $201,357,000 and $201,359,000 at J …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Company recorded income tax expense of $21,044,000 for the three months ended June 30, 2026, and $260,000 for the three months ended June 30, 2025. Income tax as a percentage of pre-tax income (loss) was (31)% in the three months ended June 30, 2026 and (16)% in the three months ended June 30, 2025. Typically these percentages vary from the U.S. statutory rate of 21%. During the three months ended June 30, 2026, income tax expense was unfavorably impacted by an increase in the deferred tax asset valuation allowance related to interest expense carryforwards which the Company does not expect to be able to recognize. The realization of these tax benefits depends on the Company's ability to generate sufficient taxable income of the appropriate character and jurisdiction in future periods. Because the Company is in a three-year cumulative loss position, it has concluded that it is appropriate to record a valuation allowance for these tax benefits until additional positive evidence of future period earnings, in the relevant jurisdictions, is available. The Company estimates these deferred tax asset valuation allowances will unfavorably impact the tax rate by approximately 40% to 50% for the fiscal year ended March 31, 2027. The effective tax rate for the three months ended June 30, 2026, also reflects an unfavorable impact related to accrual for income and withholding taxes on the current year earnings of certain foreign subsidiaries that are not considered permane …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Companys lease arrangements generally include real estate (manufacturing facilities, sales offices, distribution centers, warehouses), vehicles, and equipment. Leases with a term greater than one year are recognized on the Condensed Consolidated Balance Sheets; the Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheet. Lease obligations and their corresponding Right of Use (ROU) assets are recorded based on the present value of lease payments over the expected lease term. The Company recognizes lease expense on a straight-line basis over the lease term. The Company's leases have lease terms ranging from 1 to 23 years, some of which include options to extend or terminate the lease. The exercise of lease renewal options is at the Companys sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Companys lease agreements do not contain material residual value guarantees or any material restrictive covenants. The following table illustrates the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet (in thousands): June 30, 2026 March 31, 2026 Operating leases: Other assets $ 86,492 $ 88,416 Accrued liabilities 27,453 31,523 Other non-current liabilities 65,426 64,195 Total operating liabilities $ 92,879 $ 95,718 Finance lease: Property, plant, and equipment, net $ 9,343 $ 9,594 Current portion of long …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Effects of New Accounting Pronouncements Recently adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures by requiring additional disaggregation in the effective tax rate reconciliation and income taxes paid by jurisdiction. The Company adopted ASU 2023-09 effective fiscal 2026 and applied the new disclosure requirements on a retrospective basis. The adoption of this standard did not have a material impact on the Companys consolidated financial statement disclosures. Topics Not Yet Adopted In April 2026, the FASB issued ASU 2026-01, Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock. The ASU provides guidance on the initial measurement of paid-in-kind (PIK) dividends on equity-classified preferred stock and does not affect the timing of dividend recognition. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. In February 2026, the Company issued Preferred Shares that include a paid-in-kind dividend feature. Upon adoption of ASU 2026-01, the Company will apply the guidance to measure PIK dividends on such preferred shares based on the contractual dividend rate and liquidation preference. The Company is evaluating the timing of adoption and does not expect adoption to have a mate …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Revenue & Receivables Revenue Recognition: Performance obligations The Company has contracts with customers for standard products and custom engineered products and determines when and how to recognize revenue for each performance obligation based on the nature and type of contract. Revenue from contracts with customers for standard products is recognized when control transfers to the customer, which generally occurs at shipment when legal title and significant risk and rewards of ownership have transferred to the customer. This is the point in time when control is deemed to transfer to the customer. The Company sells standard products to customers utilizing purchase orders. Payment terms for these types of contracts generally require payment within 30 to 60 days. Each standard product is deemed to be a single performance obligation and the amount of revenue recognized is based on the negotiated price. The transaction price for standard products is based on the price reflected in each purchase order. Sales incentives are offered to customers who purchase standard products and include offers such as volume-based discounts, rebates for priority customers, and discounts for early cash payments. These sales incentives are accounted for as variable consideration included in the transaction price. Accordingly, the Company reduces revenue for these incentives in the period which the sale occurs and is based on the most likely amount method for estimating the amount of considera …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment Information ASC Topic 280, Segment Reporting, establishes the standards for reporting information about operating segments in financial statements. The Company has one operating and reportable segment for both internal and external reporting purposes. The Companys Chief Executive Officer (CEO), who is its chief operating decision maker (CODM), evaluates the performance of the Companys operating segment based on Income from operations. The CODM reviews budget-to-actual variances and year over year performance when making operating decisions to allocate resources to the segment. The significant segment expenses that are regularly provided on a quarterly basis to the CODM are cost of products sold, research and development expenses, selling expenses, general and administrative expenses and amortization of intangibles, which are presented on the face of the Company's Condensed Consolidated Statements of Operations and included in the calculation of Income from operations. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing