Note 12: Guarantees

3 Months Ended

Mar. 31, 2012

Notes to Condensed Consolidated Financial Statements [Abstract]

Note 12: Guarantees

Note 12: 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, 2011.

The changes in the carrying amount of service and product warranties and product performance guarantees for the quarters endedMarch 31,2012 and 2011 are as follows:

(Dollars in millions)	2012		2011
Balance as of January 1	$	1,468	$	1,136
Warranties and performance guarantees issued		77		134
Settlements made		(82)		(120)
Other		(328)		281
Balance as of March 31	$	1,135	$	1,431

The decrease in the above table in “Other” during the quarter ended March 31, 2012 primarily reflects the impact of warranty reserves reclassified to Liabilities of Discontinued Operations, see Note 2 for further discussion. The increase reflected in “Other” during the quarter ended March 31, 2011 primarily reflected the impact of finalizing purchase accounting on the acquisition of Clipper.