NOTE 13 – COMMITMENTS AND CONTINGENT LIABILITIES:

As of December 31, 2025:

Outstanding standby and commercial letters of credit and bank guarantees equaled $13,800, of which more than half serves as collateral for the IRB debt,
Outstanding surety bonds approximated $3,700 (SEK 33,900), which guarantee certain pension commitments of certain of the Corporation's foreign subsidiaries under a credit insurance arrangement, and
Outstanding Corporate guarantees approximated $1,700 (SEK 16,000), which guarantee certain obligations of one of the Corporation's foreign subsidiaries with its local banking partner.

At December 31, 2025, commitments for future capital expenditures approximated $7,500, which is expected to be spent over the next 12-24 months.

Approximately 24% of the Corporation’s employees are covered by collective bargaining agreements that have expiration dates ranging from May 2026 to October 2028. Collective bargaining agreements expiring in 2026 (representing approximately 33% of the covered employees) will be negotiated with the intent to secure mutually beneficial arrangements.

See Note 16 regarding derivative instruments, Note 20 regarding litigation and Note 22 for environmental matters.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 17, 2025
2023Mar 25, 2024
2022Mar 21, 2023
2021Mar 17, 2022
2020Mar 26, 2021
2019Mar 16, 2020

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.