XML 91 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Warranty Obligations
 6 Months Ended
Jun. 30, 2014
Product Warranties Disclosures [Abstract]  
Warranty Obligations
Warranty Obligations
 
We record a liability for estimated warranty obligations at the dates our products are sold. We record the liability based on our estimate of costs to settle future claims. Adjustments are made as new information becomes available. Certain prior period amounts in the following table previously included in amounts accrued for current period sales have been reclassified to adjustments of prior period estimates.

Changes in warranty liabilities — 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
Balance, beginning of period
$
56

 
$
63

 
$
54

 
$
66

Amounts accrued for current period sales
5

 
5

 
9

 
9

Adjustments of prior estimates
7

 
2

 
11

 
4

Settlements of warranty claims
(9
)
 
(10
)
 
(15
)
 
(19
)
Currency impact


 
(1
)
 


 
(1
)
Balance, end of period
$
59

 
$
59

 
$
59

 
$
59


 
In 2007, we were notified of an alleged quality issue at a foreign subsidiary of Dana that produced engine coolers for a unit of Sogefi SpA that were used in modules supplied to Volkswagen. Based on the information currently available to us, we do not believe that this matter will result in a material liability to Dana.
 
In 2012, Ford Motor Company filed a complaint alleging quality issues relating to products supplied by the former Structural Products business at Dana Canada Corporation. The Dana Canada facility was closed in 2008 and Dana Holding Corporation divested substantially all of the Structural Products business in 2010. Based on the information currently available to us, we do not believe this matter will result in a material liability to Dana.