Period to extend lease

[Table of Conten](#i207805ce14724a60909000a6c8cb9e11_7)[t](#i207805ce14724a60909000a6c8cb9e11_7)[s](#i207805ce14724a60909000a6c8cb9e11_7)NOTE 9. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities as of December 31 were as follows ($ in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |
|   | Current |  | Long-term |  | Current |  | Long-term |
| Compensation and other post-retirement benefits | $ | 253.2  |  |  | $ | 58.2  |  |  | $ | 262.1  |  |  | $ | 66.6  |  |
| Claims, including self-insurance and litigation | 5.6  |  |  | 13.9  |  |  | 13.8  |  |  | 14.3  |  |
| Pension obligations | 4.5  |  |  | 133.9  |  |  | 4.5  |  |  | 167.1  |  |
| Taxes, income and other | 53.0  |  |  | 1,011.2  |  |  | 65.5  |  |  | 887.0  |  |
| Deferred revenue | 457.6  |  |  | 33.8  |  |  | 376.4  |  |  | 34.2  |  |
| Sales and product allowances | 21.6  |  |  | —  |  |  | 20.2  |  |  | —  |  |
| Warranty | 23.0  |  |  | 2.2  |  |  | 22.9  |  |  | 2.0  |  |
| Other | 142.2  |  |  | 33.2  |  |  | 134.5  |  |  | 62.2  |  |
| Total | $ | 960.7  |  |  | $ | 1,286.4  |  |  | $ | 899.9  |  |  | $ | 1,233.4  |  |

WarrantyWe generally accrue 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 accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known.The following is a rollforward of our accrued warranty liability ($ in millions):

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Balance, January 1, 2020 | $ | 21.6  |  |
| Accruals for warranties issued during the year | 13.9  |  |
| Settlements made | (11.5) |  |
| Additions due to acquisitions | 1.2  |  |
| Effect of foreign currency translation | (0.3) |  |
| Balance, December 31, 2020 | $ | 24.9  |  |
| Accruals for warranties issued during the year | 17.5  |  |
| Settlements made | (17.6) |  |
| Additions due to acquisitions | —  |  |
| Effect of foreign currency translation | 0.4  |  |
| Balance, December 31, 2021 | $ | 25.2  |  |

  
NOTE 10. LEASES We determine if an arrangement is or contains a lease at inception and recognize a right-of-use (“ROU”) asset and a lease liability for all leases with terms greater than 12 months. We have operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations, and certain equipment, primarily automobiles. Many leases include optional terms, ranging from options to terminate the lease in less than one year to options to extend the lease for up to 23 years. We include optional periods as part of the lease term when we determine that we are reasonably certain to exercise the renewal option or we will not early terminate the lease. Reasonably certain is based on economic incentives and represents a high threshold. We have lease agreements with lease and non-lease components, and we have elected the practical expedient for all underlying asset classes to account for the lease and related non-lease component(s) as a single lease component. Our finance lease and lessor arrangements are immaterial. Lease-related balances are presented in the following three line items on the Consolidated Balance Sheet: (i) operating lease right-of-use assets; (ii) current operating lease liabilities; and (iii) operating lease liabilities.75
