Quarterly report pursuant to Section 13 or 15(d)

Other Operating Expense, Net

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Other Operating Expense, Net
 3 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
Other Operating Expense, Net

NOTE 6. OTHER OPERATING EXPENSE, NET

Other operating expense, net is comprised of the following:

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

(Gain) loss on disposal of assets

 

$

(1.4

)

 

$

1.5

 

Litigation expenses and accruals for legal contingencies

 

 

4.8

 

 

 

5.8

 

Severance charges

 

 

0.7

 

 

 

—

 

Supply commitment charge

 

 

0.2

 

 

 

—

 

Acquisition earnout adjustments

 

 

—

 

 

 

(3.0

)

Provision for credit losses, net of recoveries

 

 

—

 

 

 

0.1

 

Total

 

$

4.3

 

 

$

4.4

 

(Gain) loss on disposal of assets, net consists of gains and losses on the sale of excess property, early equipment failures and other asset dispositions.

Litigation expenses and accruals for legal contingencies generally represent legal and professional fees incurred in litigation as well as estimates for loss contingencies with regards to certain vendor disputes and litigation matters. In the periods presented, these costs represent litigation costs incurred in connection with a patent infringement lawsuit against Halliburton. See "Note 9. Commitments and Contingencies" for a discussion of significant litigation matters.

Severance charges in the three months ended March 31, 2024 relate to the departure of an executive.

The acquisition earnout adjustment in the three months ended March 31, 2023 represents a decrease in the fair value of the contingent consideration related to our acquisition of REV Energy Holdings, LLC in December 2022.