Note 11: Guarantees

6 Months Ended

Jun. 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 sinceDecember 31,2010.

The changes in the carrying amount of service and product warranties and product performance guarantees for the six months endedJune 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		289		189
Settlements made		(253)		(174)
Other		325		2
Balance as of June 30	$	1,497	$	1,089

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