Annual report [Section 13 and 15(d), not S-K Item 405]

Other Operating Expense, Net

v3.25.4
Other Operating Expense, Net
12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Other Operating Expense, Net

10. OTHER OPERATING EXPENSE, NET

Other operating expense, net is comprised of the following:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Litigation expenses and accruals for legal contingencies

 

$

11.0

 

 

$

15.7

 

 

$

34.1

 

Provision for credit losses, net of recoveries

 

 

13.7

 

 

 

 

 

 

0.1

 

Loss (gain) on insurance recoveries

 

 

0.3

 

 

 

(4.9

)

 

 

 

Transaction costs

 

 

8.0

 

 

 

3.9

 

 

 

 

Lease termination

 

 

1.1

 

 

 

 

 

 

 

Severance charges

 

 

0.4

 

 

 

2.5

 

 

 

1.1

 

(Gain) loss on disposal of assets

 

 

18.1

 

 

 

0.3

 

 

 

(1.7

)

Inventory write-down

 

 

0.8

 

 

 

 

 

 

 

Supply commitment charge

 

 

 

 

 

9.6

 

 

 

 

Acquisition earnout adjustments

 

 

 

 

 

 

 

 

(6.6

)

Total

 

$

53.4

 

 

$

27.1

 

 

$

27.0

 

Litigation expenses and accruals for legal contingencies generally represent legal and professional fees incurred in significant litigation as well as estimates for loss contingencies with regards to certain vendor disputes and litigation matters. In 2025, substantially all of these costs represent litigation costs incurred in connection with certain patent infringement lawsuits. In 2024, substantially all of these costs represent litigation costs incurred in connection with certain patent infringement lawsuits with Halliburton Company, which were settled in September 2024. In 2023 more than half of these costs were related to litigation costs incurred in connection with the lawsuits against Halliburton.

Provision for credit losses in 2025 primarily related to a revised estimate of the payments to be received from an insolvent customer.

Gain on insurance recoveries consists of insurance proceeds received for accidentally damaged or destroyed equipment in excess of its carrying value.

Transaction costs in 2025 represent legal and professional fees incurred for strategic initiatives. Transaction costs for 2024 represent deferred costs incurred for Alpine's initial public offering that were charged to earnings as a result of its postponement.

Severance charges related to the departure of certain highly-compensated employees.

Gain or loss on disposal of assets, net consists of gains or losses on excess property, early equipment failures, and other asset dispositions. In 2025, loss on disposal of assets included the scrapping of certain equipment that was determined to be uneconomical to repair.

Inventory write-down for 2025 was recorded to reduce the inventory held at our Merryville sand mine to its net realizable value. See "Note 5. Impairments" for discussion of the impairment of long-lived assets at our Merryville sand mine.

Supply commitment charges for 2024 represent charges related to contractual inventory purchase commitments to certain proppant suppliers. These charges were attributable to our decreased volume of purchases from these suppliers due to certain customers decreasing their activity levels.

The acquisition earnout adjustments represent a decrease in the fair value of the contingent consideration related to our acquisition of REV in December 2022.