(15) Commitments and Contingencies

The Company generally determines its total warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales. The historical claims rate is primarily determined by a review of five-year claims costs and current quality developments.

The premiums for extended warranties are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. These unamortized extended warranty premiums (deferred revenue) included in the following table totaled $525 million and $475 million at April 28, 2019 and April 29, 2018, respectively.

A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows:


	Three Months Ended				Six Months Ended
	April 28		April 29		April 28		April 29
	2019		2018		2019		2018
Beginning of period balance	$	1,687	$	1,550	$	1,652	$	1,468
Payments		(234)		(213)		(462)		(430)
Amortization of premiums received		(56)		(57)		(111)		(113)
Accruals for warranties		256		260		510		453
Premiums received		69		65		134		126
Acquisitions								80
Foreign exchange		(8)		(14)		(9)		7
End of period balance	$	1,714	$	1,591	$	1,714	$	1,591

At April 28, 2019, the Company had approximately $315 million of guarantees issued primarily to banks outside the U.S. and Canada related to third-party receivables for the retail financing of John Deere and Wirtgen equipment. The Company may recover a portion of any required payments incurred under these agreements from repossession of the equipment collateralizing the receivables. At April 28, 2019, the Company had accrued losses of approximately $12 million under these agreements. The maximum remaining term of the receivables guaranteed at April 28, 2019 was approximately seven years.

At April 28, 2019, the Company had commitments of approximately $411 million for the construction and acquisition of property and equipment. Also, at April 28, 2019, the Company had restricted assets of $93 million, classified as other assets. See Note 12 for additional restricted assets associated with borrowings related to securitizations.

The Company also had other miscellaneous contingent liabilities totaling approximately $80 million at April 28, 2019. The accrued liability for these contingencies was not material at April 28, 2019.

The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, and trademark matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements.