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Product Warranty
 6 Months Ended
Jun. 30, 2014
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:

(millions of dollars)
2014
 
2013
Beginning balance, January 1
$
72.7

 
$
64.9

Provisions
15.9

 
21.0

Acquisition(a)
22.8

 
—

Payments
(16.9
)
 
(18.2
)
Translation adjustment
—

 
(1.2
)
Ending balance, June 30
$
94.5

 
$
66.5


____________________________________
(a)
The Company has recorded a $12.4 million insurance receivable related to the $22.8 million liability, which is classified in the Condensed Consolidated Balance Sheet in Investments and advances.

The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows:
 
June 30,
 
December 31,
(millions of dollars)
2014
 
2013
Accounts payable and accrued expenses
$
35.9

 
$
38.4

Other non-current liabilities
58.6

 
34.3

Total product warranty liability
$
94.5

 
$
72.7