Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

The cumulative effect changes to the Consolidated Balance Sheet for the adoption of the updated guidance on January 1, 2018 were as follows:



(In millions)	Balance as of December 31, 2017		Adjustments Due to Adoption of Topic 606			Balance as of January 1, 2018
Deferred non-insurance warranty acquisition expense	$	212	$	1,882		$	2,094
Deferred non-insurance warranty revenue	972		1,969			2,941
Deferred income taxes	137		21			158
Retained earnings	9,414		(66		)	9,348

The impact of adoption on the Consolidated Statements of Operations and Balance Sheet was as follows:



Year ended December 31, 2018
	Prior to Adoption			Effect of Adoption			As Reported
(In millions)
Statement of operations:
Non-insurance warranty revenue	$	420		$	587		$	1,007
Total revenues	9,547			587			10,134

Non-insurance warranty expense	328			595			923
Total claims, benefits and expenses	8,575			595			9,170

Income before income tax	972			(8		)	964
Income tax expense	(153		)	2			(151		)
Net income	819			(6		)	813

Balance sheet⁽¹⁾at December 31, 2018:
Deferred non-insurance warranty acquisition expense	$	2,116		$	397		$	2,513
Deferred non-insurance warranty revenue	2,997			405			3,402
Deferred income taxes	390			2			392
Retained earnings	9,283			(6		)	9,277

(1)

The Prior to Adoption amounts presented in this table include the cumulative effect adjustment at adoption presented in the prior table.

Adoption of the updated guidance resulted in the following changes to the Consolidated Balance Sheets on January 1, 2019:



(In millions)	Balance as of December 31, 2018		Adjustments Due to Adoption of Topic 842		Balance as of January 1, 2019
Property and equipment at cost (less accumulated depreciation)	$	324	$	2	$	326
Other assets	1,208		237		1,445
Other liabilities	3,089		239		3,328