Warranty  — Costs related to product warranty obligations are estimated and accrued at the time of sale with a char ge against  cost of sales. Warranty accruals are evaluated and adjusted as appropriate based on occurrences giving rise to potential warranty  exposure and associated experience. Warranty accruals and adjustments require significant judgment, including a determination  of our involvement in the matter giving rise to the potential warranty issue or claim, our contractual requirements, estimates of  units requiring repair and estimates of repair costs. If actual experience dif fers from expectations, our financial position and  results of operations in future periods could be af fected. Contingency reserves  — We have numerous other loss exposures, such as asbestos claims and litigation. Establishing loss  reserves for these matters requires the use of estimates and judgment in regards to risk exposure and ultimate liability . In the  case of legal contingencies, estimates are made of the likely outcome of legal proceedings and potential exposure where  reasonably determinable based on the information presently known to us. New information and developments in these matters  could materially affect our recorded liabilities. Estimates of potential liability associated with asbestos claims are influenced by  a number of factors, including legislative and legal developments to reduce submission of claims without merit, our success in  litigating and resolving claims, developments with incidence of disease manifested as a consequence of asbestos, developments  with and availability of bankruptcy trusts and other asbestos claim defendants, and the costs incurred by us to successfully  defend and resolve asbestos claims.  Additionally, we use a fifteen-year time horizon to estimate our probable asbestos liability .  36