We have agreed to indemnify certain third parties relating to businesses and/or assets that we previously owned and sold to such third parties. Such indemnifications relate primarily to potential environmental and tax exposures for activities conducted by us prior to the sale of such businesses and/or assets. It is not possible to predict the maximum potential amount of future payments under these or similar indemnifications due to the conditional nature of the obligations and the unique facts and circumstances involved in each particular indemnification.

	Maximum	Carrying Amount of Liability
	Potential Payment	September 30, 2011		December 31, 2010

Environmental indemnifications	No limit	$	8,000	$	8,400
Tax indemnifications	No limit	$	-	$	-

We also maintain contingencies for warranty expenses on certain of our long-term contracts. Generally, warranty contingencies are accrued over the life of the contract so that a sufficient balance is maintained to cover our aggregate exposure at the conclusion of the project.

	Nine Months Ended September 30,
Warranty Liability:		2011		2010

Balance at beginning of year	$	100,300	$	110,800
Accruals		21,700		18,900
Settlements		(13,100)		(10,100)
Adjustments to provisions, including foreign currency translation		(11,300)		(18,200)
Balance at end of period	$	97,600	$	101,400

We are contingently liable under standby letters of credit, bank guarantees and surety bonds, totaling $1,114,900 and $1,010,600 as of September 30, 2011 and December 31, 2010, respectively, primarily for guarantees of our performance on projects currently in execution or under warranty. These amounts include the standby letters of credit issued under the U.S. senior secured credit agreement discussed in Note 5 and from other facilities worldwide. No material claims have been made against these guarantees, and based on our experience and current expectations, we do not anticipate any material claims.

We have also guaranteed certain performance obligations in a refinery/electric power generation project based in Chile in which we hold a noncontrolling interest. See Note 3 for further information.