Note 11  Commitments and Contingencies On December 18, 2018, an energetic incident occurred at one of the Companys countermeasure facilities. The incident resulted in an injury to one employee, damage to a building, and the destruction of inventory and certain equipment. Operations at the factory are currently halted for investigation of the incident, repairs to the building and equipment, and implementation of process and facility improvements. Management expects the factory to be operating at a limited level of capacity in the second quarter of fiscal 2019 and at planned capacity in the third quarter of fiscal 2019. On October 31, 2018, the Companys Darchem Engineering Ltd. (Darchem) subsidiary, through an unincorporated joint venture between Darchem and an independent contractor, known as EDEL, entered into a long-term contract as a subcontractor to manufacture and install pool liners for the Hinkley Point  C nuclear plant in the U.K. (the Manufacturing Contract). EDEL was formed to facilitate a single point of contact for the project and to simplify the billing processes to the customer. Accordingly, the assets and liabilities of the joint venture are not significant. Darchems portion of the $165.0 million Manufacturing Contract is approximately $116.0 million. Darchem and the third-party contractor have equal voting rights to direct and manage EDELs activities. Each party will only incur economic consequences, whether losses or gains, specific to its own role in the delivery of its specific scope of work under the Manufacturing Contract. Darchem does not have a controlling financial interest in the joint venture, and Darchem is not deemed to be the primary beneficiary of the joint venture. Darchem accounts for its investment in the joint venture on the equity method of accounting. Revenues and expenses for Darchems share of the contract are recorded over time in accordance with ASC 606. The maximum potential future payments for delays and liquidated damages that could be required under the contract is equal to 50% of the contract value or approximately $82.5 million. The maximum potential future payments would be mitigated by a required performance bond equal to 10% of the total contract, or $16.5 million, and a 3% retention, or $5.0 million. Pursuant to the Manufacturing Contract, the Company is required to execute a parent guarantee covering the obligations of EDEL to the customer, including the third-party contractors scope of work which is approximately 30% of the total contract value, or approximately $49.5 million. Separately, the sub-contractors parent company will furnish an indemnity to the Company in relation to the sub-contractors scope of work. Management determined the valuation of liability of the parent guarantee is not material. The Company is party to various lawsuits and claims, both as a plaintiff and defendant, and has contingent liabilities arising from the conduct of business, none of which, in the opinion of management, is expected to have a material effect on the Companys financial position or results of operations. The Company believes that it has made appropriate and adequate provisions for contingent liabilities.