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Product Warranty
9 Months Ended
Sep. 30, 2017
Product Warranties Disclosures [Abstract]  
Product Warranty
Product Warranty

The Company provides warranties on some, but not all, of its products. The warranty terms are typically from one to three years. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and industry developments and recoveries from third parties. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. Management believes that the warranty accrual is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the accrual.

The following table summarizes the activity in the product warranty accrual accounts:
(in millions)
2017
 
2016
Beginning balance, January 1
$
95.3

 
$
107.9

Provisions
51.3

 
47.4

Acquisitions
0.4

 
6.9

Liabilities held for sale

 
(9.2
)
Payments
(45.7
)
 
(36.7
)
Translation adjustment
5.4

 
2.1

Ending balance, September 30
$
106.7

 
$
118.4



Acquisition activity in 2017 of $0.4 million relates to warranty liability associated with the Company's purchase of Sevcon. Acquisition activity in 2016 of $6.9 million was related to the Company's accrual for product issues that predated the Company's 2015 acquisition of Remy.

The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows:
 
September 30,
 
December 31,
(in millions)
2017
 
2016
Accounts payable and accrued expenses
$
64.8

 
$
63.9

Other non-current liabilities
41.9

 
31.4

Total product warranty liability
$
106.7

 
$
95.3