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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
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 bonds were as follows:
At December 31,
In thousands20212020
Credit facility
Multicurrency revolving line of credit$500,000 $500,000 
Standby LOCs issued and outstanding(64,374)(64,948)
Net available for additional borrowings under the multicurrency revolving line of credit$435,626 $435,052 
Net available for additional standby LOCs under sub-facility$235,626 $235,052 
Unsecured multicurrency revolving lines of credit with various financial institutions
Multicurrency revolving lines of credit$94,845 $99,201 
Standby LOCs issued and outstanding(19,957)(24,966)
Short-term borrowings— — 
Net available for additional borrowings and LOCs$74,888 $74,235 
Unsecured surety bonds in force$281,270 $162,912 

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 February 28, 2022, we do not believe any outstanding standby LOCs or bonds 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 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:
Year Ended December 31,
In thousands202120202019
Beginning balance$41,390 $53,241 $60,443 
New product warranties4,848 3,616 5,202 
Other adjustments and expirations, net551 7,736 15,695 
Claims activity(13,593)(25,582)(27,916)
Warranties reclassified to held for sale(90)— — 
Effect of change in exchange rates(1,084)2,379 (183)
Ending balance32,022 41,390 53,241 
Less: current portion of warranty18,406 28,329 38,509 
Long-term warranty$13,616 $13,061 $14,732 
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.

On November 2, 2021, Itron entered into an agreement to sell certain of its Gas device businesses and operations to Dresser. The related disposal group was classified as held for sale during the fourth quarter of 2021. Refer to Note 18: Sale of Businesses for additional information on the transaction.

Warranty expense was as follows:
Year Ended December 31,
In thousands202120202019
Total warranty expense$5,399 $11,539 $17,975 

Warranty expense decreased during the year ended December 31, 2021 compared with the same period in 2020. The lower costs in 2021 are primarily the result of incremental specific reserves recognized in 2020 including $3.0 million for water products in Europe, Middle East, and Africa Device Solutions and $2.0 million for electric and water products in North America Networked Solutions.

Warranty expense decreased during the year ended December 31, 2020 compared with the same period in 2019. This decrease was primarily the result of incremental specific reserves recognized in 2019 including $3.9 million for gas interface modules in North America Networked Solutions.
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:
Year Ended December 31,
In thousands202120202019
Plan costs$39,187 $36,672 $33,611 

IBNR accrual, which is included in wages and benefits payable, was as follows:
At December 31,
In thousands20212020
IBNR accrual$3,478 $3,507 

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.