Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Indemnifications

We are often required to obtain standby letters of credit (LOCs) or bonds in support of our obligations for customer contracts. These standby LOCs or bonds typically provide a guarantee to the customer for our future performance, which usually covers the installation phase of a contract and may, on occasion, cover the operations and maintenance phase of outsourcing contracts.

Our available lines of credit, outstanding standby LOCs, and performance bonds were as follows:



In thousands	September 30, 2019			December 31, 2018
Credit facilities
Multicurrency revolving line of credit	$	500,000		$	500,000
Long-term borrowings	—			—
Standby LOCs issued and outstanding	(44,155		)	(40,983		)
Net available for additional borrowings under the multi-currency revolving line of credit	$	455,845		$	459,017

Net available for additional standby LOCs under sub-facility	$	255,845		$	259,017

Unsecured multicurrency revolving lines of credit with various financial institutions
Multicurrency revolving lines of credit	$	105,020		$	108,039
Standby LOCs issued and outstanding	(22,895		)	(19,386		)
Short-term borrowings	(70		)	(2,232		)
Net available for additional borrowings and LOCs	$	82,055		$	86,421

Unsecured surety bonds in force	$	96,276		$	94,365

In the event any such standby LOC or bond is called, we would be obligated to reimburse the issuer of the standby LOC or bond; however, as of November 4, 2019, we do not believe that any outstanding LOC or bond will be called.

We generally provide an indemnification related to the infringement of any patent, copyright, trademark, or other intellectual property right on software or equipment within our sales contracts, which indemnifies the customer from and pays the resulting costs, damages, and attorney's fees awarded against a customer with respect to such a claim provided that (a) the customer promptly notifies us in writing of the claim and (b) we have the sole control of the defense and all related settlement negotiations. We may also provide an indemnification to our customers for third-party claims resulting from damages caused by the negligence or willful misconduct of our employees/agents in connection with the performance of certain contracts. The terms of our indemnifications

generally do not limit the maximum potential payments. It is not possible to predict the maximum potential amount of future payments under these or similar agreements.

Legal Matters

We are subject to various legal proceedings and claims of which the outcomes are subject to significant uncertainty. Our policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the liability required, if any, for these contingencies is made after an analysis of each known issue. A liability would be recognized and charged to operating expense when we determine that a loss is probable and the amount can be reasonably estimated. Additionally, we would disclose contingencies for which a material loss is reasonably possible, but not probable.

Warranty

A summary of the warranty accrual account activity is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
In thousands	2019			2018			2019			2018
Beginning balance	$	57,112		$	43,719		$	60,443		$	34,862
Assumed liabilities from acquisition	—			—			—			5,742
New product warranties	1,388			869			3,645			3,151
Other adjustments and expirations	4,603			659			12,533			9,141
Claims activity	(8,453		)	(2,164		)	(21,970		)	(8,981		)
Effect of change in exchange rates	(768		)	277			(769		)	(555		)
Ending balance	53,882			43,360			53,882			43,360
Less: current portion of warranty	38,018			29,736			38,018			29,736
Long-term warranty	$	15,864		$	13,624		$	15,864		$	13,624

Total warranty expense is classified within cost of revenues and consists of new product warranties issued, costs related to insurance and supplier recoveries, other changes and adjustments to warranties, and customer claims. Warranty expense was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2019		2018		2019		2018
Total warranty expense	$	5,991	$	1,528	$	13,957	$	12,291

Health Benefits

We are self-insured for a substantial portion of the cost of our U.S. employee group health insurance. We purchase insurance from a third party, which provides individual and aggregate stop loss protection for these costs. Each reporting period, we expense the costs of our health insurance plan including paid claims, the change in the estimate of incurred but not reported (IBNR) claims, taxes, and administrative fees (collectively, the plan costs).

Plan costs were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2019		2018		2019		2018
Plan costs	$	9,378	$	9,205	$	24,179	$	25,559

The IBNR accrual, which is included in wages and benefits payable, was as follows:



In thousands	September 30, 2019		December 31, 2018
IBNR accrual	$	3,225	$	3,643

Our IBNR accrual and expenses may fluctuate due to the number of plan participants, claims activity, and deductible limits. For our employees located outside of the United States, health benefits are provided primarily through governmental social plans, which are funded through employee and employer tax withholdings.