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Guarantees And Indemnification Obligations
 12 Months Ended
Dec. 31, 2019
Guarantees And Indemnification Obligations [Abstract]  
Guarantees And Indemnification Obligations Guarantees and Indemnification obligations
 
As permitted under Delaware law, we have agreements whereby we indemnify certain of our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have directors and officers’ liability insurance policies that limit our exposure for events covered under the policies and should enable us to recover a portion of any future amounts paid. As a result of the coverage under these insurance policies, we believe the estimated fair value of these indemnification agreements is minimal and, therefore, have no liabilities recorded from those agreements as of December 31, 2019.
 
We record provisions for the estimated cost of product warranties, primarily from historical information, at the time product revenue is recognized. While we engage in extensive product quality programs and processes, our warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to us. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from our estimates, revisions to the estimated warranty liability would be required. Our warranty liabilities are included in accrued expenses and other current liabilities on our consolidated balance sheets.
 
The following table sets forth information related to our product warranty reserves for the years ended December 31, 2019 and 2018 (in thousands):
 
December 31,
 
2019
 
2018
Balance beginning January 1 (1)
$
2,860

 
$
3,564

Provisions
1,894

 
2,643

Claims settled
(2,830
)
 
(2,800
)
Acquired reserves/other
(11
)
 
(347
)
Currency translation adjustment
(271
)
 
(80
)
Balance ending December 31
$
1,642

 
$
2,980

(1) The December 31, 2018 ending balance includes $0.1 million in warranty reserves related to the I&S business, which was classified as held for sale at December 31, 2019. The January 1, 2019 beginning balance along with the current year activity has been adjusted to remove the effect of the I&S business.


Warranty obligations of $1.6 million as of December 31, 2019 decreased $1.3 million from $3.0 million as of December 31, 2018. Decreases in warranty obligations were primarily driven by claims settled within our Refinery Valves business and to a lesser extent, claims settled within certain Industrial businesses.