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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications We are often required to obtain standby letters of credit (LOCs) or bonds in support of our obligations for customer contracts. These standby LOCs or bonds typically provide a guarantee to the customer for our future performance, which usually covers the installation phase of a contract and may, on occasion, cover the operations and maintenance phase of outsourcing contracts. Our available lines of credit, outstanding standby LOCs, and bonds were as follows:
In thousands | September 30, 2021 |  | December 31, 2020
Credit facility |  |  |
Multicurrency revolving line of credit | $ | 500,000 |  |  | $ | 500,000 |
Standby LOCs issued and outstanding | (64,448) |  |  | (64,948) |
Net available for additional borrowings under the multicurrency revolving line of credit | $ | 435,552 |  |  | $ | 435,052 |
Net available for additional standby LOCs under sub-facility | $ | 235,552 |  |  | $ | 235,052 |
Unsecured multicurrency revolving lines of credit with various financial institutions |  |  |
Multicurrency revolving lines of credit | $ | 97,113 |  |  | $ | 99,201 |
Standby LOCs issued and outstanding | (24,245) |  |  | (24,966) |
Short-term borrowings | (8,764) |  |  | — |
Net available for additional borrowings and LOCs | $ | 64,104 |  |  | $ | 74,235 |
Unsecured surety bonds in force | $ | 169,293 |  |  | $ | 162,912 |
In the event any such standby LOC or bond is called, we would be obligated to reimburse the issuer of the standby LOC or bond; however, as of November 4, 2021, we do not believe any outstanding standby LOCs or bonds will be called. We generally provide an indemnification related to the infringement of any patent, copyright, trademark, or other intellectual property right on software or equipment within our sales contracts, which indemnifies the customer from, and pays the resulting costs, damages, and attorney's fees awarded against a customer with respect to, such a claim provided that (a) the customer promptly notifies us in writing of the claim and (b) we have the sole control of the defense and all related settlement negotiations. We may also provide an indemnification to our customers for third-party claims resulting from damages caused by the negligence or willful misconduct of our employees/agents in connection with the performance of certain contracts. The terms of our indemnifications generally do not limit the maximum potential payments. It is not possible to predict the maximum potential amount of future payments under these or similar agreements. Legal Matters We are subject to various legal proceedings and claims of which the outcomes are subject to significant uncertainty. Our policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the liability required, if any, for these contingencies is made after an analysis of each known issue. A liability would be recognized and charged to operating expense when we determine that a loss is probable and the amount can be reasonably estimated. Additionally, we disclose contingencies for which a material loss is reasonably possible, but not probable. Warranty A summary of the warranty accrual account activity is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2021 |  | 2020 |  | 2021 |  | 2020
Beginning balance | $ | 36,210 |  |  | $ | 44,757 |  |  | $ | 41,390 |  |  | $ | 53,242 |
New product warranties | 1,925 |  |  | 785 |  |  | 3,611 |  |  | 2,855 |
Other adjustments and expirations, net | (975) |  |  | 1,643 |  |  | 631 |  |  | 5,436 |
Claims activity | (2,156) |  |  | (5,044) |  |  | (10,040) |  |  | (19,349) |
Effect of change in exchange rates | (317) |  |  | 946 |  |  | (905) |  |  | 903 |
Ending balance | 34,687 |  |  | 43,087 |  |  | 34,687 |  |  | 43,087 |
Less: current portion of warranty | 18,089 |  |  | 32,118 |  |  | 18,089 |  |  | 32,118 |
Long-term warranty | $ | 16,598 |  |  | $ | 10,969 |  |  | $ | 16,598 |  |  | $ | 10,969 |
Total warranty expense is classified within cost of revenues and consists of new product warranties issued, costs related to insurance and supplier recoveries, other changes and adjustments to warranties, and customer claims. Warranty expense was as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2021 |  | 2020 |  | 2021 |  | 2020
Total warranty expense | $ | 950 |  |  | $ | 2,428 |  |  | $ | 4,242 |  |  | $ | 8,321 |
Warranty expense decreased during the nine months ended September 30, 2021 compared with the same period in 2020. The lower costs in 2021 are primarily the result of incremental specific reserves recognized in 2020, including $1.7 million for electric and gas products in Europe, Middle East, and Africa (EMEA) Device Solutions and $1.1 million for electric and water products in North America (NAM) Networked Solutions.

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