Commitments and Contingencies

Product liabilities — We had accrued $19 and $7 for product liability costs at December 31, 2018 and 2017. We had also recognized $24 and $9 as expected amounts recoverable from third parties at the respective dates. The increases in the liability and recoverable amounts at December 31, 2018 largely reflect the recognition of the estimated cost, net of payments made, and the expected recovery of an insured matter. Payments made to claimants have preceded the recovery of amounts from third parties, resulting in a recoverable amount in excess of the total liability at December 31, 2018. We estimate these liabilities based on current information and assumptions about the value and likelihood of the claims against us.

Environmental liabilities — Accrued environmental liabilities were $10 and $8 at December 31, 2018 and 2017. We consider the most probable method of remediation, current laws and regulations and existing technology in estimating our environmental liabilities.

Guarantee of lease obligations — In connection with the divestiture of our Structural Products business in 2010, leases covering three U.S. facilities were assigned to a U.S. affiliate of Metalsa. Under the terms of the sale agreement, we will guarantee the affiliate’s performance under the leases, which run through June 2025, including approximately $6 of annual payments. In the event of a required payment by Dana as guarantor, we are entitled to pursue full recovery from Metalsa of the amounts paid under the guarantee and to take possession of the leased property.

Other legal matters — We are subject to various pending or threatened legal proceedings arising out of the normal course of business or operations. In view of the inherent difficulty of predicting the outcome of such matters, we cannot state what the eventual outcome of these matters will be. However, based on current knowledge and after consultation with legal counsel, we believe that any liabilities that may result from these proceedings will not have a material adverse effect on our liquidity, financial condition or results of operations.

Lease commitments — Cash obligations under future minimum rental commitments under operating leases and net rental expense at December 31, 2018 are shown in the table below. Operating lease commitments are primarily related to facilities.



	2019		2020		2021		2022		2023		Thereafter		Total
Lease commitments	$	57	$	41	$	35	$	27	$	21	$	64	$	245



	2018	2017	2016
Rent expense	$67	$61	$50