Note 19 . Commitments and contingencies Woodward is currently involved in claims, pending or threatened litigation , other legal proceedings, investigations and/ or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability cla ims, employment matters, worker s compensation claims, contractual disputes, product warranty claims and alleged violations of various laws and regulations. Woodward has accrued for individual matters that it believes are likely to result in a loss when ultimately resolved using estimates of the most likely amount of loss. Legal costs are expensed as incurred and are classified in  Selling, general and administrative expenses  on the Condensed Consolidated Statements of Earnings. Woodward is partially self-insured in the United States for healthcare and worker s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending claims, legal and regulatory proceedings , and investigations cannot be predicted with certainty, managemen t believes that any liabilities that may result from these claims, proceedings and investigations will not have a material effect on Woodward's liquidity, financial condition, or results of operations. In connection with the sale of the F uel &amp; Pneumatics product line during fiscal 2009, Woodward assigned to a subsidiary of the purchaser its rights and responsibilities related to certain contracts with the U.S. Government. Woodward provided to the U.S. Government a customary guarantee of the purchaser s subsidiary s obligations under the contracts. The purchaser and its affiliates have agreed to indemnify Woodward for any liability incurred with respect to the guarantee. In the event of a change in control of Woodward, as defi