Litigation (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Loss Contingencies by Contingency

The following table reflects approximate information about the number of claims for Asbestos Liability against Air & Liquid and the Corporation for the nine months ended September 30, 2024 and 2023 (number of claims not in thousands). The majority of the settlement and defense costs were reported and paid by insurers. Because claims are often filed and can be settled or dismissed in large groups, the amount and timing of settlements, as well as the number of open claims, can fluctuate significantly from period to period.


	Nine Months Ended September 30,
	2024			2023
Total claims pending at the beginning of the period		6,310			6,259
New claims served		950			984
Claims dismissed		(517	)		(647	)
Claims settled		(419	)		(305	)
Total claims pending at the end of period (1)		6,324			6,291
Administrative closures (2)		(3,117	)		(2,903	)
Total active claims at the end of the period		3,207			3,388
Gross settlement and defense costs paid in period (in 000’s)	$	18,610		$	16,221
Average gross settlement and defense costs per claim resolved (in 000’s) (3)	$	19.88		$	17.04

(1)

Included as “total claims pending” are approximately 1,638 and 1,642 claims at September 30, 2024 and 2023, respectively, classified in various jurisdictions as “inactive” or transferred to a state or federal judicial panel on multi-district litigation.

(2)

For 2024, administrative closures include (i) mesothelioma claims filed five or more years ago; (ii) non-mesothelioma claims filed six or more years ago; (iii) claims previously classified in various jurisdictions as “inactive;” and (iv) claims transferred to a state or federal judicial panel on multi-district litigation. For 2023, administrative closures included the same except mesothelioma claims filed six or more years ago were considered administratively closed. Collectively, these claims are unlikely to result in any liability to the Corporation.

(3)

Claims resolved do not include claims administratively closed.

Summary of Activity Relating to Asbestos Liability

The following table summarizes activity relating to Asbestos Liability for the nine months ended September 30, 2024 and 2023.


	Nine Months Ended September 30,
	2024			2023
Asbestos liability, beginning of the year	$	238,679		$	153,575
Settlement and defense costs paid		(18,610	)		(16,221	)
Asbestos liability, end of the period	$	220,069		$	137,354

Summary of Activity in Asbestos Insurance Recoveries

The increase in the asbestos-related insurance receivable associated with the increase in the estimated Asbestos Liability and a lower defense-to-indemnity ratio at December 31, 2023 approximated $67,591. The following table summarizes activity relating to insurance recoveries for the nine months ended September 30, 2024 and 2023, including the $1,756 reimbursement of prior years’ costs.


	Nine Months Ended September 30,
	2024			2023
Insurance receivable – asbestos, beginning of the year	$	160,245		$	105,434
Settlement and defense costs paid by insurance carriers		(13,841	)		(9,041	)
Insurance receivable – asbestos, end of the period	$	146,404		$	96,393