Note 11: Guarantees
9 Months Ended
Sep. 30, 2011
Notes to Condensed Consolidated Financial Statements [Abstract] 
Note 11: Guarantees

Note 11: Guarantees

 

We extend a variety of financial, market value and product performance guarantees to third parties. There have been no material changes to guarantees outstanding since December 31, 2010.

 

The changes in the carrying amount of service and product warranties and product performance guarantees for the nine months ended September 30, 2011 and 2010 are as follows:

 

(Dollars in millions) 2011 2010
Balance as of January 1 $ 1,136 $ 1,072
Warranties and performance guarantees issued   370   310
Settlements made   (333)   (271)
Other   315   (6)
Balance as of September 30 $ 1,488 $ 1,105

The increase reflected in “Other” in the above table primarily reflects the impact of finalizing purchase accounting on the recent acquisition of Clipper.