Commitments and Contingencies:

Product Warranties and Product Related Contingencies

We provide warranties to customers for some of our products and record liabilities for the estimated future warranty-related costs based on failure rates, cost experience and other factors. We periodically review the assumptions used to determine the product warranty liabilities and will adjust the liabilities in future periods for changes in assumptions, as necessary.

Liabilities for estimated product warranty costs related to continuing operations are included in the following captions on the accompanying Consolidated Balance Sheets (in millions):



	As of September 30, 2018		As of December 31, 2017
Accrued expenses	$	36.6	$	34.8
Other liabilities	73.6		75.1
Total warranty liability	$	110.2	$	109.9

The changes in product warranty liabilities related to continuing operations for the nine months ended September 30, 2018 were as follows (in millions):



Total warranty liability as of December 31, 2017	$	109.9
Warranty claims paid	(23.9		)
Changes resulting from issuance of new warranties	29.0
Changes in estimates associated with pre-existing liabilities	(3.1		)
Changes in foreign currency translation rates and other	(0.4		)
Warranty liability from Divestitures	(1.3		)
Total warranty liability as of September 30, 2018	$	110.2

We have incurred, and will likely continue to incur, product costs not covered by insurance or our suppliers’ warranties, which are not included in the tables immediately above. Also, to satisfy our customers and protect our brands, we have repaired or replaced installed products experiencing quality-related issues, and will likely continue such repairs and replacements. Liabilities, for such quality related issues, are not material.

Litigation

We are involved in a number of claims and lawsuits incident to the operation of our businesses. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known.

Some of these claims and lawsuits allege personal injury or health problems resulting from exposure to asbestos that was integrated into certain of our products. We have never manufactured asbestos and have not incorporated asbestos-containing components into our products for several decades. A substantial majority of these asbestos-related claims have been covered by insurance or other forms of indemnity or have been dismissed without payment. The remainder of our closed cases have been resolved for amounts that are not material, individually or in the aggregate. Our defense costs for asbestos-related claims are generally covered by insurance; however, our insurance coverage for settlements and judgments for asbestos-related claims varies depending on several factors and are subject to policy limits, so we may have greater financial exposure for future settlements and judgments. For the nine months ended September 30, 2018 and 2017, expense for asbestos-related litigation was $3.3 million and $3.9 million, respectively, net of probable insurance recoveries, for known and future asbestos-related litigation and is recorded in Losses and other expenses, net in the Consolidated Statements of Operations. For the three months ended September 30, 2018 and 2017, expense for asbestos-related litigation was $1.4 million and $1.5 million, respectively, net of probable insurance recoveries.

It is management's opinion that none of these claims or lawsuits or any threatened litigation will have a material adverse effect on our financial condition, results of operations or cash flows. Claims and lawsuits, however, involve uncertainties and it is possible that their eventual outcome could adversely affect our results of operations for a particular period.

Marshalltown Tornado and Recovery

On July 19, 2018 our manufacturing facility in Marshalltown, Iowa was severely damaged by a tornado. Insurance covers the repair or replacement of our assets that suffered damage or loss, and we are working closely with our insurance carriers and claims adjusters to ascertain the full amount of insurance recoveries due to us as a result of the damage and loss we suffered. Our insurance policies also provide business interruption coverage, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. These costs and insurance recoveries are shown in Loss from natural disaster, net of insurance recoveries in the Consolidated Statements of Operations.

The following table summarizes the loss from natural disaster, net of insurance recoveries:



(Amounts in millions)	For the Nine Months Ended September 30, 2018
Write-off of property, plant and equipment	$	4.2
Write-off of inventory	5.2
Site clean-up and remediation	28.4
Factory inefficiencies due to lower productivity	4.9
Other	6.7
Total expense	49.4
Insurance recoveries received	45.0
Insurance recoveries receivable ⁽¹⁾	4.1
Loss from natural disaster, net of insurance recoveries	$	0.3

⁽¹⁾ The insurance recoveries receivable is recorded in Other assets in the Consolidated Balance Sheets.