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Warranty Obligation
6 Months Ended
Oct. 28, 2011
Product Warranties Disclosures [Abstract]  
Warranty Obligation

Note 12 – Warranty Obligation

 

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company's warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the claim. The Company includes the covered costs associated with field actions, if any, in cost of products sold on the condensed consolidated statements of earnings. The Company includes the warranty obligation in other accrued expenses and other long-term liabilities on the condensed consolidated balance sheets.

 

Changes in the Company's product warranties during the six months ended October 28, 2011 and October 29, 2010 consisted of the following:

 

  Six months ended
(in millions) October 28,  October 29,
2011 2010
Balance at the beginning of the period  $44 $45
Warranty claims provision   11  15
Settlements made   (16)  (14)
Balance at the end of the period  $39 $46