CONTINGENCIES AND GUARANTEES Guarantees The Company has provided residual value guarantees to CNH Industrial Capital in connection with certain customer leasing arrangements with CNH Industrial Capital. The Company, as guarantor, may be required to provide payment to CNH Industrial Capital at the termination of the lease agreement if the customer fails to exercise the purchase option under the leasing agreement and the proceeds CNH Industrial Capital receives upon disposition of the leased asset are less than the purchase option price as stipulated in the lease agreement. As of January 31, 2017, the maximum amount of residual value guarantees was approximately $2.9 million and the lease agreements have termination dates ranging from 2018 to 2022. As of January 31, 2017, the Company has recognized a liability of approximately $2.9 million based on its estimates of the likelihood and amount of residual value guarantees that will become payable at the termination dates of the underlying leasing agreements. The liability is recorded in other long-term liabilities in the Company's consolidated balance sheets. As of January 31, 2017 and 2016, the Company had $2.8 million and $3.0 million of guarantees on customer financing with CNH Industrial Capital. In the event that the customer defaulted on the payments owed to CNH Industrial Capital, the Company as the guarantor would be required to make those payments and any accelerated indebtedness to CNH Industrial Capital. Upon such payment, the Company would be entitled to enforce normal creditor rights against the customer including collection action for monetary damages or re-possession of the collateral if CNH Industrial Capital has a perfected security interest. No liabilities associated with these guarantees are included in the consolidated balance sheets as of January 31, 2017 or 2016 as the Company deems the probability of being required to make such payments to be remote. Litigation The Company is engaged in proceedings incidental to the normal course of business. Du