Douglas Dynamics(US:PLOW)2025-02-25 21:01PART I Item 1. Business Douglas Dynamics is a leading North American manufacturer and upfitter of commercial work truck attachments and equipment, focusing on innovation and operational efficiency - Douglas Dynamics, Inc. is North America's premier manufacturer and upfitter of commercial work truck attachments and equipment, with over 75 years of innovation19 - The company operates in two segments: Work Truck Attachments (snow and ice control products under FISHER®, SNOWEX®, WESTERN® brands) and Work Truck Solutions (municipal snow and ice control products and upfitting services under HENDERSON® and DEJANA® brands)19 - Work Truck Attachments segment generated 82% of net sales from snow and ice control equipment and 18% from parts and accessories in 2024, relying on a network of approximately 3,000 points of sale2022 - The Work Truck Solutions segment focuses on upfitting Class 3-8 trucks and other commercial vehicles, serving governmental agencies and a broad customer base of approximately 2,70024 - The company's competitive strengths include exceptional customer loyalty, the broadest and most innovative product offering in Work Truck Attachments, an extensive North American distributor network, leadership in operational efficiency through lean manufacturing, strong cash flow generation, and an experienced management team35363739404142 - Business strategy centers on continuous product innovation, distributor network and customer optimization, aggressive asset management (highly variable cost structure, lean principles, pre-season orders, vertical integration), and pursuing growth opportunities through new products/markets and increasing market share43444547484951 Order Backlog (in millions) | Year | Backlog (USD) | | :--- | :------------ | | 2024 | $348.0 | | 2023 | $296.3 | Overview Work Truck Attachments Segment Work Truck Solutions Segment Our Industry Our Competitive Strengths Our Business Strategy Our Growth Opportunities Order Backlog Human Capital Management Financing Program Intellectual Property Raw Materials Government Regulation Other Information Item 1A. Risk Factors The company faces significant risks from weather, economic downturns, operational dependencies, cybersecurity, M&A, financial leverage, and regulatory compliance - Results of operations are highly dependent on snowfall levels, timing, and location, with below-average snowfall in 2023 and 2024 negatively impacting the Work Truck Attachments segment7374 - Economic downturns, limited government spending, and inflation can reduce demand for new equipment, increase price sensitivity, and raise costs for raw materials (like steel), labor, and freight, potentially decreasing gross margins7778798082 - Operational risks include dependence on outside suppliers and OEMs for components and truck chassis, potential disruptions from offshore sourcing, cybersecurity breaches, and the ability to retain and attract qualified employees89909192 - Strategic risks involve the ability to identify and integrate acquisitions, maintain and enforce intellectual property rights, and continuously develop new products to stay competitive107108109110112 - The company's substantial indebtedness ($147.5 million senior secured debt as of Dec 31, 2024) and variable interest rates expose it to significant interest rate risk, potentially increasing debt service obligations120122247 - Compliance with complex federal, state, and local laws and regulations, including environmental and safety standards, may require significant and unanticipated capital expenditures114115116 Risks Related to Weather and Seasonality Risks Related to Economic Conditions Risks Related to our Business and Operations Risks Related to Execution of Strategy Risks Related to Legal, Compliance and Regulatory Matters Risks Related to Capital Structure Item 1B. Unresolved Staff Comments No unresolved staff comments are reported - Not applicable126 Item 1C. Cybersecurity The Board oversees cybersecurity risk management, following recognized frameworks, with no material impact from threats on business or financial condition - The Board of Directors, with the Audit Committee, oversees cybersecurity risk management as part of the company's ERM program127129 - Cybersecurity policies are based on NIST, ISO, and other industry standards, covering governance, collaborative approach, technical safeguards, incident response, third-party risk management, and employee awareness training127128 - The Vice President of Information Technology, in coordination with the Interim CEO and CFO, implements the cybersecurity program and reports threats and incidents to the Audit Committee130131132 - Cybersecurity threats have not materially affected or are reasonably likely to affect the company's business strategy, results of operations, or financial condition133 Risk Management and Strategy Governance Item 2. Properties As of December 31, 2024, the company owns one manufacturing facility and leases twenty-two others, including a China sourcing office - The company owns one facility in Rockland, Maine (Work Truck Attachments) and leases twenty-two manufacturing, service, upfit, and corporate facilities across Iowa, Illinois, Maine, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Wisconsin134 - A sourcing office is also leased in China134 Item 3. Legal Proceedings The company is involved in ordinary course litigation, primarily product liability and IP, none deemed material, with no climate-related claims - The company is engaged in various litigation, primarily product liability and intellectual property disputes135 - Management does not believe any current litigation is material to operations or financial position135 - No climate change or environmental-related claims or legal matters are currently pending135 Item 4. Mine Safety Disclosures This item is not applicable - Not applicable136 Information about our Executive Officers Key executive officers as of February 25, 2025, include James Janik (Interim CEO), Sarah Lauber (CFO), and Mark Van Genderen (COO) Executive Officers as of February 25, 2025 | Name | Age | Position | | :------------- | :-- | :------------------------------------------ | | James Janik | 68 | Interim President and Chief Executive Officer | | Sarah Lauber | 53 | Executive Vice President, Chief Financial Officer & Secretary | | Mark Van Genderen | 56 | Chief Operating Officer and President, Work Truck Attachments | - Robert McCormick retired as President and CEO effective July 8, 2024, and James Janik was elected Interim President and CEO on the same date138 - Linda R. Evans, Chief Human Resources Officer, retired effective January 2, 2025138 - Executive officers are elected by and serve at the discretion of the Board of Directors, with no family relationships among directors or executive officers141 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Douglas Dynamics' common stock trades on NYSE (PLOW), maintains quarterly dividends, and has a $44.0 million share repurchase plan remaining - Common Stock (PLOW) traded on the New York Stock Exchange since Q2 2010, with 57 registered record holders as of February 25, 2025144 - Quarterly cash dividends were declared and paid in 2023 and 2024, with the policy allowing for special dividends at the board's discretion145 Issuer Purchases of Equity Securities (Q4 2024) | Period | Total shares purchased | Average price paid per share | Number of shares purchased as part of publicly announced program | Approximate dollar value of shares still available to be purchased under the program (000's) | | :--------------------- | :--------------------- | :--------------------------- | :--------------------------------------------------------------- | :----------------------------------------------------------------------------------------- | | 10/1/2024 - 10/31/2024 | - | $ - | - | $ 44,000 | | 11/1/2024 - 11/30/2024 | - | $ - | - | $ 44,000 | | 12/1/2024 - 12/31/2024 | - | $ - | - | $ 44,000 | | Total | - | $ - | - | $ 44,000 | - A $50.0 million share repurchase plan was authorized on February 16, 2022, with no expiration date, and no shares were repurchased in 2024 or 2023149194 Issuer Purchases of Equity Securities Item 6. [Reserved] This item is reserved due to the company's application of the amendment to Regulations S-K Item 301 - This item is no longer required as the Company has applied the amendment to Regulations S-K Item 301151 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Net sales slightly increased to $568.5 million in 2024, with gross profit improving to 25.8% and net income rising to $56.2 million, aided by a sale-leaseback gain Consolidated Statements of Income Summary (in thousands) | Metric | 2024 | 2023 | 2022 | | :--------------------------- | :-------- | :-------- | :-------- | | Net sales | $568,504 | $568,178 | $616,068 | | Cost of sales | $421,667 | $433,908 | $464,612 | | Gross profit | $146,837 | $134,270 | $151,456 | | Selling, general, and administrative expense | $91,682 | $78,841 | $82,183 | | Impairment charges | $1,224 | $0 | $0 | | Gain on sale leaseback transaction | $(42,298) | $0 | $0 | | Intangibles amortization | $7,520 | $10,520 | $10,520 | | Income from operations | $88,709 | $44,909 | $58,753 | | Interest expense, net | $(15,260) | $(15,675) | $(11,253) | | Other income (expense), net | $442 | $0 | $(139) | | Income before taxes | $73,891 | $29,234 | $47,361 | | Income tax expense | $17,740 | $5,511 | $8,752 | | Net income | $56,151 | $23,723 | $38,609 | Key Financial Ratios (as % of Net Sales) | Metric | 2024 | 2023 | 2022 | | :--------------------------- | :----- | :----- | :----- | | Net sales | 100.0% | 100.0% | 100.0% | | Cost of sales | 74.2% | 76.4% | 75.4% | | Gross profit | 25.8% | 23.6% | 24.6% | | Selling, general, and administrative expense | 16.1% | 13.9% | 13.4% | | Impairment charges | 0.2% | 0.0% | 0.0% | | Gain on sale leaseback transaction | (7.4)% | 0.0% | 0.0% | | Intangibles amortization | 1.3% | 1.8% | 1.7% | | Income from operations | 15.6% | 7.9% | 9.5% | | Interest expense, net | (2.7)% | (2.8)% | (1.8)% | | Other income (expense), net | 0.1% | 0.0% | (0.0)% | | Income before taxes | 13.0% | 5.1% | 7.7% | | Income tax expense | 3.1% | 0.9% | 1.4% | | Net income | 9.9% | 4.2% | 6.3% | - Net sales increased by $0.3 million (0.1%) in 2024 to $568.5 million, driven by higher volumes and price realization in Work Truck Solutions, partially offset by lower volumes in Work Truck Attachments due to low snowfall163 - Gross profit increased by $12.5 million (9.3%) to $146.8 million in 2024, with gross profit margin improving from 23.6% to 25.8%, primarily due to lower spending from the 2024 Cost Savings Program and improved throughput at Work Truck Solutions166167 - Net income for 2024 was $56.2 million, a $32.5 million increase from $23.7 million in 2023, significantly impacted by a $42.3 million gain on a sale-leaseback transaction170174 - The company implemented a 2024 Cost Savings Program, including salaried headcount reductions, and executed a sale-leaseback transaction for $64.2 million gross proceeds, using $42.0 million to pay down term loan debt157195 Results of Operations Discussion of Critical Accounting Policies and Estimates Liquidity and Capital Resources Cash Flow Analysis Non‑GAAP Financial Measures Future Obligations and Commitments Impact of Inflation Seasonality and Year‑To‑Year Variability Item 7A. Quantitative and Qualitative Disclosures About Market Risk The company faces market risks from variable interest rates and steel prices, mitigated by interest rate swaps and a steel hedging agreement - Primary market risk exposures are changes in interest rates on variable-rate debt and steel price fluctuations244 - As of December 31, 2024, outstanding term loan borrowings were $147.5 million, and a hypothetical 1% interest rate increase would result in an additional $0.5 million in interest expense for the year247 - The company uses interest rate swap agreements to reduce exposure to interest rate volatility, with a positive fair value of $2.3 million at December 31, 2024248249 - A steel hedging agreement was entered into on December 17, 2024, for 3,000 short tons, effective August 1, 2025, to reduce exposure to commodity price swings, with a negative fair value of $0.1 million at December 31, 2024252 Interest Rate Risk Commodity Price Risk Item 8. Financial Statements and Supplementary Data Audited consolidated financial statements are included in the report starting on page F-2 - The financial statements are included in this report beginning on page F-2253 Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosures No changes or disagreements with accountants on accounting and financial disclosures are reported - None254 Item 9A. Controls and Procedures Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes - Disclosure controls and procedures were evaluated and deemed effective as of December 31, 2024, by management, with participation from the Interim CEO and CFO254255 - Management's assessment concluded that internal control over financial reporting was effective as of December 31, 2024, based on the COSO (2013 framework) criteria260 - Deloitte & Touche LLP audited the consolidated financial statements and issued an attestation report on the effectiveness of internal control over financial reporting261 - No material changes in internal controls over financial reporting occurred during the last fiscal quarter262 Disclosure Controls and Procedures Management's Report on Internal Control Over Financial Reporting Changes in Internal Control Over Financial Reporting Item 9B. Other Information No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q4 2024 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q4 2024263 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections This item is not applicable - Not applicable264 PART III Item 10. Directors, Executive Officers and Corporate Governance Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement266 - The company has a Code of Business Conduct and Ethics for directors, principal executive/financial/accounting officers, and all employees, available on its website268 Item 11. Executive Compensation Executive compensation information, including committee interlocks and director compensation, is incorporated by reference from the Proxy Statement - Executive compensation information is incorporated by reference from the Proxy Statement269 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters Security ownership information is incorporated by reference, with details on outstanding options and shares available for future issuance under incentive plans - Security ownership information is incorporated by reference from the Proxy Statement269 Equity Compensation Plan Information (as of December 31, 2024) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column) | | :------------------------------------------------ | :------------------------------------------------------------------------ | :---------------------------------------------------------- | :------------------------------------------------------------------------------------------------------------------------------------ | | Equity Compensation plans approved by security holders: | | | | | 2010 Stock Incentive Plan: | 99,998 | $ - | - | | 2024 Stock Incentive Plan: | - | $ - | 882,091 | | Equity compensation plans not approved by security holders | - | $ - | - | | Total | 99,998 | $ - | 882,091 | Equity Compensation Plan Information Item 13. Certain Relationships and Related Transactions, and Director Independence Information on certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement under the caption 'Corporate Governance'274 Item 14. Principal Accounting Fees and Services Information on principal accounting fees and services is incorporated by reference from the Proxy Statement - Information is incorporated by reference to the Proxy Statement under the caption 'Ratification of Appointment of Independent Registered Public Accounting Firm'274 PART IV Item 15. Exhibits and Financial Statement Schedules This section lists consolidated financial statements, omitted schedules, and an exhibit index filed as part of the report - Consolidated Financial Statements are included starting on page F-2276 - All financial statement schedules are omitted because the required information is included in the Notes to the Consolidated Financial Statements276 - An Exhibit Index is provided starting on the following page276 Item 16. Form 10-K Summary This item is not applicable - Not applicable277 Exhibit Index The Exhibit Index lists all filed exhibits, including agreements, plans, and certifications - The Exhibit Index lists various agreements and documents, including asset purchase agreements, credit agreements, employment agreements, and stock incentive plans279280281 - It also includes certifications such as the Insider Trading Policy, Subsidiaries list, Consent of Deloitte & Touche LLP, and CEO/CFO certifications under Sarbanes-Oxley Act281284 Signatures The Form 10-K report was signed on February 25, 2025, by key executive officers and directors - The report was signed on February 25, 2025286287 - Signatories include James L. Janik (Interim President and CEO, Chairman), Sarah Lauber (EVP, CFO & Secretary), Jon J. Sisulak (VP, Corporate Controller and Treasurer), and other directors287288 Index to Consolidated Financial Statements Report of Independent Registered Public Accounting Firm Deloitte & Touche LLP issued unqualified opinions on financial statements and internal control, highlighting critical audit matters for intangible assets and sale-leaseback accounting - Deloitte & Touche LLP issued an unqualified opinion on the consolidated financial statements as of December 31, 2024 and 2023, and for the three years ended December 31, 2024293294 - An unqualified opinion was also issued on the effectiveness of the company's internal control over financial reporting as of December 31, 2024294 - Critical audit matters identified were the indefinite-lived intangible tradename for Dejana (valuation assumptions and sensitivity to supply chain constraints) and the accounting for the sale-leaseback transaction (transfer of control, timing, and fair value determination)301302305306 Opinions on the Financial Statements and Internal Control over Financial Reporting Basis for Opinions Definition and Limitations of Internal Control over Financial Reporting Critical Audit Matters Consolidated Balance Sheets Total assets slightly decreased to $589.9 million, while total liabilities significantly reduced to $304.0 million, and shareholders' equity increased to $264.2 million Consolidated Balance Sheet Summary (in thousands) | Metric | December 31, 2024 | December 31, 2023 | | :----------------------------------------- | :---------------- | :---------------- | | Assets | | | | Cash and cash equivalents | $5,119 | $24,156 | | Accounts receivable, net | $87,407 | $83,760 | | Inventories | $137,034 | $140,390 | | Total current assets | $238,225 | $262,238 | | Property, plant and equipment, net | $41,311 | $67,340 | | Goodwill | $113,134 | $113,134 | | Other intangible assets, net | $113,550 | $121,070 | | Operating leases - right of use asset | $70,801 | $18,008 | | Total assets | $589,983 | $593,418 | | Liabilities and Shareholders' Equity | | | | Accounts payable | $32,319 | $31,374 | | Accrued expenses and other current liabilities | $26,182 | $25,817 | | Short-term borrowings | $0 | $47,000 | | Current portion of long-term debt | $0 | $6,762 | | Total current liabilities | $70,192 | $118,517 | | Long-term debt, less current portion | $146,679 | $181,491 | | Operating lease liability - noncurrent | $64,785 | $13,887 | | Total liabilities | $304,000 | $363,856 | | Total shareholders' equity | $264,215 | $231,565 | | Total liabilities and shareholders' equity | $589,983 | $593,418 | - Cash and cash equivalents decreased by $19.0 million from $24.2 million in 2023 to $5.1 million in 2024313 - Total current liabilities decreased significantly by $48.3 million, primarily due to the elimination of short-term borrowings and current portion of long-term debt313 - Shareholders' equity increased by $32.6 million, from $231.6 million in 2023 to $264.2 million in 2024313 Consolidated Statements of Income Net sales were stable at $568.5 million, gross profit rose to $146.8 million (25.8% margin), and net income surged to $56.2 million, boosted by a sale-leaseback gain Consolidated Statements of Income (in thousands, except per share data) | Metric | 2024 | 2023 | 2022 | | :--------------------------- | :-------- | :-------- | :-------- | | Net sales | $568,504 | $568,178 | $616,068 | | Cost of sales | $421,667 | $433,908 | $464,612 | | Gross profit | $146,837 | $134,270 | $151,456 | | Selling, general, and administrative expense | $91,682 | $78,841 | $82,183 | | Impairment charges | $1,224 | $0 | $0 | | Gain on sale leaseback transaction | $(42,298) | $0 | $0 | | Intangibles amortization | $7,520 | $10,520 | $10,520 | | Income from operations | $88,709 | $44,909 | $58,753 | | Interest expense, net | $(15,260) | $(15,675) | $(11,253) | | Other income (expense), net | $442 | $0 | $(139) | | Income before taxes | $73,891 | $29,234 | $47,361 | | Income tax expense | $17,740 | $5,511 | $8,752 | | Net income | $56,151 | $23,723 | $38,609 | | Earnings per common share: | | | | | Basic | $2.39 | $1.01 | $1.65 | | Diluted | $2.36 | $0.98 | $1.63 | | Cash dividends declared and paid per share | $1.18 | $1.18 | $1.16 | - Net sales for 2024 were $568.5 million, a slight increase of $0.3 million (0.1%) from $568.2 million in 2023315 - Gross profit increased by $12.5 million (9.3%) to $146.8 million in 2024, with the gross profit margin rising to 25.8% from 23.6% in 2023315 - Income from operations increased significantly to $88.7 million in 2024 from $44.9 million in 2023, largely due to a $42.3 million gain on a sale-leaseback transaction315 - Net income for 2024 was $56.2 million, up from $23.7 million in 2023, resulting in diluted earnings per common share of $2.36 (vs. $0.98 in 2023)315 Consolidated Statements of Comprehensive Income Comprehensive income increased to $55.3 million in 2024, driven by higher net income, despite negative adjustments from hedging instruments Consolidated Statements of Comprehensive Income (in thousands) | Metric | 2024 | 2023 | 2022 | | :---------------------------------------------- | :-------- | :-------- | :-------- | | Net income | $56,151 | $23,723 | $38,609 | | Other comprehensive income: | | | | | Adjustment for pension and postretirement benefit liability, net of tax | $651 | $3 | $541 | | Adjustment for interest rate swap, net of tax | $(1,495) | $(2,775) | $9,640 | | Adjustment for steel hedging instrument, net of tax | $(40) | $0 | $0 | | Total other comprehensive income, net of tax | $(884) | $(2,772) | $10,181 | | Comprehensive income | $55,267 | $20,951 | $48,790 | - Comprehensive income increased to $55.3 million in 2024 from $21.0 million in 2023317 - Other comprehensive income was negative $0.9 million in 2024, primarily due to a negative adjustment of $1.5 million from interest rate swaps and $0.04 million from a steel hedging instrument, partially offset by a positive adjustment of $0.7 million for pension and postretirement benefit liability317 Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity increased to $264.2 million, driven by net income and stock-based compensation, partially offset by dividends and OCI adjustments Consolidated Statements of Changes in Shareholders' Equity (in thousands) | Metric | Balance at Dec 31, 2023 | Net income | Dividends paid | OCI Adjustments | Stock based compensation | Balance at Dec 31, 2024 | | :----------------------------------------- | :---------------------- | :--------- | :------------- | :-------------- | :----------------------- | :---------------------- | | Common Stock (Dollars) | $230 | — | — | — | $1 | $231 | | Additional Paid-in Capital | $165,233 | — | — | — | $4,859 | $170,092 | | Retained Earnings | $59,746 | $56,151 | $(27,477) | — | — | $88,420 | | Accumulated Other Comprehensive Income (Loss) | $6,356 | — | — | $(1,495) | — | $5,472 | | Total | $231,565 | $56,151 | $(27,477) | $(1,495) | $4,860 | $264,215 | - Total shareholders' equity increased by $32.6 million, from $231.6 million at December 31, 2023, to $264.2 million at December 31, 2024319 - Key drivers of the change include net income of $56.2 million and $4.9 million from stock-based compensation, partially offset by $27.5 million in dividends paid319 Consolidated Statements of Cash Flows Operating cash flow increased to $41.1 million, investing activities provided $56.8 million (sale-leaseback), while financing used $117.0 million, leading to a $19.0 million cash decrease Consolidated Statements of Cash Flows (in thousands) | Metric | 2024 | 2023 | 2022 | | :-------------------------------------- | :---------- | :---------- | :---------- | | Net cash provided by operating activities | $41,131 | $12,469 | $40,030 | | Net cash provided by (used in) investing activities | $56,792 | $(10,521) | $(12,047) | | Net cash provided by (used in) financing activities | $(116,960) | $1,538 | $(44,277) | | Change in cash and cash equivalents | $(19,037) | $3,486 | $(16,294) | | Cash and cash equivalents at end of year | $5,119 | $24,156 | $20,670 | - Net cash provided by operating activities increased by $28.7 million to $41.1 million in 2024, primarily due to favorable working capital changes321 - Net cash provided by investing activities was $56.8 million in 2024, a $67.3 million increase from 2023, mainly due to $64.2 million in proceeds from a sale-leaseback transaction321 - Net cash used in financing activities increased by $118.5 million to $117.0 million in 2024, driven by reduced revolver borrowings ($47.0 million) and a $42.0 million voluntary debt prepayment321 Notes to Consolidated Financial Statements Notes provide detailed disclosures on business, accounting policies, revenue recognition, critical estimates, liquidity, debt, segment reporting, and recent pronouncements - The company operates in two segments: Work Truck Attachments and Work Truck Solutions, with segment performance evaluated based on net sales and Adjusted EBITDA324383384385386 - Revenue recognition policies detail how revenue is recognized for Work Truck Attachments (point-in-time upon shipment) and Work Truck Solutions (net of truck chassis, point-in-time or over time depending on vehicle ownership)390394398399 - Critical accounting estimates include revenue recognition, sale-leaseback transactions, and impairment assessments of indefinite-lived intangible assets and goodwill177 - The company completed a sale-leaseback transaction in 2024, selling seven properties for $64.2 million gross proceeds and recognizing a $42.3 million gain180418 - Long-term debt as of December 31, 2024, was $147.5 million, with a $42.0 million voluntary prepayment made in 2024, and the company uses interest rate swaps and a steel hedging instrument to manage market risks429435441443 - In January 2024, the company implemented a Cost Savings Program, resulting in $2.0 million in restructuring charges and $1.2 million in impairment charges related to internally developed software354511512 1. Description of business and basis of presentation 2. Summary of Significant Accounting Policies 3. Revenue Recognition 4. Inventories 5. Property, plant and equipment 6. Leases 7. Other Intangible Assets 8. Long‑Term Debt 9. Accrued Expenses and Other Current Liabilities 10. Warranty Liability 11. Income Taxes 12. Employee Retirement Plans 13. Stock Based Compensation 14. Earnings Per Share 15. Commitments and Contingencies 16. Segments 17. Stockholders' equity 18. Valuation and qualifying accounts 19. Changes in Accumulated Other Comprehensive Income by Component 20. Quarterly Financial Information (Unaudited) 21. Restructuring and Impairment 22. Recent Accounting Pronouncements 23. Subsequent Events