Envista Holdings CorpNVST

Envista Holdings Corp Commitments Disclosure

10-KFiled Feb 21, 20201 min read
COMMITMENTS
The Company generally accrues 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 periods 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 the Company’s accrued warranty liability ($ in millions):
 
2019
 
2018
Balance, January 1
$
9.7

 
$
10.8

Accruals for warranties issued during the year
18.1

 
14.6

Settlements made
(18.1
)
 
(15.4
)
Effect of foreign currency translation
(0.1
)
 
(0.3
)
Balance, December 31
$
9.6

 
$
9.7


Free Sentinel

Want the next Envista Holdings Corp commitments disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Envista Holdings Corp's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtStock CompensationNew Standards