Contingencies

6 Months Ended

Jul. 01, 2011

Contingencies

Contingencies

NOTE 8. CONTINGENCIES

For a further description of the Company's litigation and contingencies, reference is made to Note 13 of the Company's financial statements as of and for the year ended December 31, 2010 included in the Company's Form 8-K filed April 21, 2011.

The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The liability, shown in the following table, is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known.

In certain cases the Company will sell extended warranty or maintenance agreements. The proceeds from these agreements is deferred and recognized as revenue over the term of the agreement.

The following is a rollforward of the Company's warranty accrual for the six months ended July 1, 2011 ($ in millions):

Balance, December 31, 2010	$	130.1
Accruals for warranties issued during the period		57.0
Acquisitions		20.6
Settlements made		(55.5	)
Balance, July 1, 2011	$	152.2