Note 12: Guarantees

3 Months Ended

Mar. 31, 2013

Notes to Condensed Consolidated Financial Statements [Abstract]

Note 12: Guarantees

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, 2012.

The changes in the carrying amount of service and product warranties and product performance guarantees for the quarters ended March 31, 2013 and 2012 are as follows:

	Quarter Ended March 31,
(Dollars in millions)	2013			2012
Balance as of January 1	$	1,332		$	1,468
Warranties and performance guarantees issued	94			77
Settlements made	(76		)	(82		)
Other	(14		)	(328		)
Balance as of March 31	$	1,336		$	1,135

The decrease reflected in “Other” during the quarter ended March 31, 2012 primarily reflects the impact of warranty reserves reclassified to Liabilities held for sale, as part of the Clipper disposition. See Note 2 for further discussion.