Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

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Commitments and Contingencies
 3 Months Ended
Apr. 01, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

There were no material changes during the three months ended April 1, 2017 to the financial commitments or the legal and environmental commitments that were discussed in Note 13 in the Notes to Consolidated Financial Statements in the 2016 Form 10-K. 

Product Warranties

The Company records a liability for product warranties at the time revenue is recognized. The liability is estimated using historical warranty experience, projected claim rates and expected costs per claim. The Company adjusts its liability for specific warranty matters when they become known and the exposure can be estimated. Product failure rates as well as material usage and labor costs incurred in correcting a product failure affect the Company's warranty liabilities. If actual costs or projected experience differ from previously estimated costs, the Company must make a revision to the warranty liability. Changes in the Company's warranty liabilities resulting from the Company's experience and adjustments related to changes in estimates are included as Aggregate changes for preexisting warranties presented in the table below.

The following activity related to product warranty liabilities was recorded in Accrued expenses during the three months ended April 1, 2017 and April 2, 2016:
(in millions)
April 1,
2017
 
April 2,
2016
Balance at beginning of period
$
112.6

 
$
106.3

Payments made
(14.7
)
 
(13.3
)
Provisions/additions for contracts issued/sold
18.5

 
16.1

Aggregate changes for preexisting warranties
(2.1
)
 
(3.3
)
Foreign currency translation
0.8

 
0.6

Acquisitions
—

 
6.4

Other
(1.9
)
 
—

Balance at end of period
$
113.2

 
$
112.8



Additionally, end users of the Company's products may purchase a contract from the Company that extends product warranty beyond the standard period. For certain extended warranty contracts in which the Company retains the warranty or administration obligation, a deferred liability is recorded based on the aggregate sales price for contracts sold. The deferred liability is reduced and revenue is recognized on a straight-line basis over the contract period during which costs are expected to be incurred. 

The following activity related to deferred revenue for extended product warranty contracts was recorded in Accrued expenses and Other long-term liabilities during the three months ended April 1, 2017 and April 2, 2016:
(in millions)
April 1,
2017
 
April 2,
2016
Balance at beginning of period
$
90.6

 
$
78.3

Extended warranty contracts sold
9.9

 
8.1

Revenue recognized on existing extended warranty contracts
(7.4
)
 
(7.0
)
Foreign currency translation
0.2

 
(0.1
)
Acquisitions
—

 
2.0

Balance at end of period
$
93.3

 
$
81.3