GUARANTEES (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Product Warranty Obligations

The Company has warranty obligations in connection with the sale of its products and equipment. The original warranty period is generally one year or less. The costs incurred to provide for these warranty obligations are estimated and recorded as an accrued liability at the time of sale. The Company estimates its warranty cost at the point of sale for a given product based on historical failure rates and related costs to repair. The change in the Company's accrued warranty obligations balance, which is reflected in Other current liabilities in the accompanying Consolidated Statement of Financial Position, was as follows:

(in millions)

Accrued warranty obligations as of December 31, 2008	$	65
Actual warranty experience during 2009		(92	)
2009 warranty provisions		88
Accrued warranty obligations as of December 31, 2009	$	61
Actual warranty experience during 2010		(72	)
2010 warranty provisions		54
Accrued warranty obligations as of December 31, 2010	$	43

Deferred Revenue in Relation to Extended Warranties

The Company also offers its customers extended warranty arrangements that are generally one year, but may range from three months to three years after the original warranty period. The Company provides repair services and routine maintenance under these arrangements. The Company has not separated the extended warranty revenues and costs from the routine maintenance service revenues and costs, as it is not practicable to do so. Therefore, these revenues and costs have been aggregated in the discussion that follows. The change in the Company's deferred revenue balance in relation to these extended warranty and maintenance arrangements, which is reflected in Other current liabilities in the accompanying Consolidated Statement of Financial Position, was as follows:

(in millions)

Deferred revenue as of December 31, 2008	$	153
New extended warranty and maintenance arrangements in 2009		413
Recognition of extended warranty and maintenance arrangement revenue in 2009		(436	)
Deferred revenue as of December 31, 2009	$	130
New extended warranty and maintenance arrangements in 2010		438
Recognition of extended warranty and maintenance arrangement revenue in 2010		(438	)
Deferred revenue as of December 31, 2010	$	130