Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2011

Commitments and Contingent Liabilities [Abstract]

Commitments and Contingent Liabilities

10. Commitments and Contingent Liabilities

A few of the Company's subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites identified under federal and state statutes which provide for the allocation of such costs among “potentially responsible parties.” In each instance, the extent of the Company's liability appears to be very small in relation to the total projected expenditures and the number of other “potentially responsible parties” involved and is anticipated to be immaterial to the Company. In addition, a few of the Company's subsidiaries are involved in ongoing remedial activities at certain current and former plant sites, in cooperation with regulatory agencies, and appropriate reserves have been established.

The Company and certain of its subsidiaries are also parties to a number of other legal proceedings incidental to their businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company's products, exposure to hazardous substances, patent infringement, employment matters and commercial disputes. Management and legal counsel, at least quarterly, review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and currently accrued to-date, and the availability and extent of insurance coverage. While it is not possible at this time to predict the outcome of these legal actions, in the opinion of management, based on these reviews, it is unlikely that the disposition of the lawsuits and the other matters mentioned above will have a material adverse effect on the financial position, results of operations, or cash flows of the Company.

Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs and adjusted new claims. The changes in the carrying amount of product warranties through June 30, 2011 and 2010 are as follows:

	2011			2010
Beginning Balance, January 1	$	58,229		$	59,713
Provision for warranties		20,680			19,728
Settlements made		(20,539	)		(18,364	)
Other adjustments, including currency translation		725			(1,895	)
Ending Balance, June 30	$	59,095		$	59,182

As of June 30, 2011, the Company had approximately $77,561 outstanding in letters of credit with financial institutions, which expire at various dates in 2011 through 2016. These letters of credit are primarily maintained as security for insurance, warranty and other performance obligations.

From time to time, the Company will initiate various restructuring programs at its operating companies and incur severance and other restructuring costs. For the three months ended June 30, 2011, restructuring charges of $1,214 and $881 were recorded in cost of goods and services and selling and administrative expenses, respectively. For the three months ended June 30, 2010, restructuring charges of $197 were recorded in selling and administrative expenses.  For the six months ended June 30, 2011, restructuring charges of $1,301 and $2,274 were recorded in cost of goods and services and selling and administrative expenses, respectively. For the six months ended June 30, 2010, restructuring charges of $713 and $1,535 and were recorded in cost of goods and services and selling and administrative expenses, respectively.

The following table details the Company's severance and other restructuring reserve activity:

	Severance			Exit			Total
At December 31, 2010	$	1,143		$	6,751		$	7,894
Provision		2,722			853			3,575
Payments		(2,444	)		(2,437	)		(4,881	)
Other		19			(394	)		(375	)
At June 30, 2011	$	1,440		$	4,773		$	6,213

The following table details restructuring charges incurred by segment for the periods presented:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011		2010
Industrial Products	$	467		$	463		$	941	$	796
Engineered Systems		(2	)		310			4		426
Fluid Management		1,514			(489	)		2,382		768
Electronic Technologies		116			(87	)		248		258
Total	$	2,095		$	197		$	3,575	$	2,248