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Guarantees (Tables) | 3 Months Ended
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Mar. 31, 2021
Service and Product Warranties and Product Performance Guarantees [Abstract] |
Schedule of guarantees | As of March 31, 2021 and December 31, 2020, the following guarantees were outstanding:
| March 31, 2021 |  | December 31, 2020
(dollars in millions) | Maximum Potential Payment |  | Carrying Amount of Liability |  | Maximum Potential Payment |  | Carrying Amount of Liability
Commercial aerospace financing arrangements | $ | 314 |  |  | $ | 6 |  |  | $ | 322 |  |  | $ | 6 |
Third party guarantees | 379 |  |  | 2 |  |  | 386 |  |  | 3 |
Product Warranty Disclosure [Table Text Block] | The changes in the carrying amount of service and product warranties and product performance guarantees for the quarters ended March 31, 2021 and 2020 are as follows:
(dollars in millions) |  | 2021 |  | 2020
Balance as of January 1 |  | $ | 1,057 |  |  | $ | 1,033 |
Warranties and performance guarantees issued |  | 113 |  |  | 90 |
Settlements |  | (69) |  |  | (87) |
Other |  | (1) |  |  | (11) |
Balance as of March 31 |  | $ | 1,100 |  |  | $ | 1,025 |

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- Definition Tabular disclosure of the changes in the guarantor's aggregate product warranty liability, including the beginning balance of the aggregate product warranty liability, the aggregate reductions in that liability for payments made (in cash or in kind) under the warranty, the aggregate changes in the liability for accruals related to product warranties issued during the reporting period, the aggregate changes in the liability for accruals related to preexisting warranties (including adjustments related to changes in estimates), and the ending balance of the aggregate product warranty liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=68068213&loc=d3e12565-110249 + Details
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