Note 12. Commitments and Contingencies Asbestos Matters Honeywell is a defendant in asbestos related personal injury actions mainly related to its legacy Bendix Friction Materials (Bendix) business. The Bendix business, manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements. In conjunction with Garretts separation from Honeywell, certain operations that were part of the Bendix business, along with the ownership of the Bendix trademark, was transferred to Garrett. As discussed in Note 1, these Combined Interim Financial Statements, prepared for the period during which the Business was still a part of Honeywell, reflect an estimated liability for resolution of pending and future asbestos-related and environmental liabilities related to these businesses, calculated as if we were responsible for 100% of the Bendix asbestos-liability payments. However, we note that this recognition model in the Combined Interim Financial Statements will differ from the recognition model to be presented in future financials as a standalone company which will reflect the terms of the Indemnification and Reimbursement Agreement with Honeywell signed on September 12, 2018, under which we are required to make payments to Honeywell in amounts equal to 90% of Honeywells asbestos-related liability payments and accounts payable, primarily related to the Bendix business in the United States, as well as certain environmental-related liability payments and accounts payable and non-United States asbestos-related liability payments and accounts payable, in each case related to legacy elements of the Business, including the legal costs of defending and resolving such liabilities, less 90% of Honeywells net insurance receipts and, as may be applicable, certain other recoveries associated with such liabilities. For additional information, see Note 14 Subsequent Events. The following tables summarize information concerning both Bendix and other asbestos related balances. Other represents asbestos liabilities related to claimants outside the United States. Asbestos Related Liabilities Nine Months Ended September 30, 2018 Bendix Other Total Beginning of the period $ 1,703 $ 9 $ 1,712 Accrual for update to estimated liabilities 141  141 Asbestos related liability payments (151 ) (1 ) (152 ) End of the period $ 1,693 $ 8 $ 1,701 Insurance Recoveries for Asbestos Related Liabilities Nine Months Ended September 30, 2018 Bendix Beginning of the period $ 191 Probable insurance recoveries related to estimated liability 10 Insurance receipts for asbestos related liabilities (24 ) Insurance receivables settlements 1 End of the period $ 178 Asbestos balances are included in the following balance sheet accounts: September 30, 2018 December 31, 2017 Other current assets $ 16 $ 17 Insurance recoveries for asbestos related liabilities 162 174 $ 178 $ 191 Accrued liabilities $ 185 $ 185 Asbestos related liabilities 1,516 1,527 $ 1,701 $ 1,712 The following tables present information regarding Bendix related asbestos claims activity: Nine Months Ended September 30, Years Ended December 31, Claims Activity 2018 2017 2016 Claims Unresolved at the beginning of the period 6,280 7,724 7,779 Claims Filed 1,895 2,645 2,830 Claims Resolved (2,088 ) (4,089 ) (2,885 ) Claims Unresolved at the end of the period 6,087 6,280 7,724 Nine Months Ended September 30, Years Ended December 31, Disease Distribution of Unresolved Claims 2018 2017 2016 Mesothelioma and Other Cancer Claims 2,868 3,062 3,490 Nonmalignant Claims 3,219 3,218 4,234 Total Claims 6,087 6,280 7,724 Honeywell has experienced average resolutions per claim excluding legal costs as follows: Years Ended December 31, 2017 2016 2015 2014 2013 (in whole dollars) Malignant claims $ 56,000 $ 44,000 $ 44,000 $ 53,500 $ 51,000 Nonmalignant claims $ 2,800 $ 4,485 $ 100 $ 120 $ 850 It is not possible to predict whether resolution values for Bendix-related asbestos claims will increase, decrease or stabilize in the future. Our Combined Interim Financial Statements reflect an estimated liability for resolution of pending and unasserted Bendix-related asbestos claims. We have valued pending and unasserted Bendix-related asbestos claims using average resolution values for the previous five years. We update the resolution values used to estimate the cost of pending and unasserted Bendix-related asbestos claims during the fourth quarter each year. Such estimated cost of unasserted Bendix-related asbestos claims is based on historic claims filing experience and dismissal rates, disease classifications, and resolution values in the tort system for the previous five years. Asbestos costs and insurance recoveries are recorded in Other expense, net. Our insurance receivable corresponding to the liability for settlement of pending and unasserted Bendix asbestos claims reflects coverage which is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Based on our ongoing analysis of the probable insurance recovery, insurance receivables are recorded in the Combined Interim Financial Statements simultaneous with the recording of the estimated liability for the underlying asbestos claims. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers. Other Matters We are subject to other lawsuits, investigations and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. To date, no such matters are material to the Combined Statements of Operations.