XML 28 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Guarantees and Product Warranties
 6 Months Ended
Jun. 30, 2020
Guarantees and Product Warranties Disclosure [Abstract]  
GUARANTEES AND PRODUCT WARRANTIES Guarantees and Product Warranties
The Company provides its global operations guarantees and standby letters of credit through various financial institutions for suppliers, customers, regulatory agencies and insurance providers. If the Company is not able to make payments or fulfill contractual obligations, the suppliers, customers, regulatory agencies and insurance providers may draw on the pertinent bank. At June 30, 2020, the maximum future payment obligations related to these various guarantees totaled $97.2, of which $26.6 represented standby letters of credit to insurance providers, and no associated liability was recorded. At December 31, 2019, the maximum future payment obligations relative to these various guarantees totaled $108.2, of which $25.2 represented standby letters of credit to insurance providers, and no associated liability was recorded.

The Company provides its customers a manufacturer’s warranty and records, at the time of the sale, a corresponding estimated liability for potential warranty costs. Estimated future obligations due to warranty claims are based upon historical factors such as labor rates, average repair time, travel time, number of service calls per machine and cost of replacement parts.

Changes in the Company’s warranty liability balance are illustrated in the following table:
June 30, 2020June 30, 2019
Balance at January 1$36.9  $40.1  
Current period accruals11.8  6.2  
Current period settlements(17.1) (6.3) 
Currency translation adjustment(1.7) (1.5) 
Balance at June 30 $29.9  $38.5