WARRANTY OBLIGATIONS

Expected warranty costs for products sold are recognized at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. This estimate is adjusted from time to time based on facts and circumstances that impact the status of existing claims. Delphi has recognized its best estimate for its total aggregate warranty reserves across all of its operating segments as of June 30, 2014. The estimated reasonably possible amount to ultimately resolve all matters is not materially different from the recorded reserves as of June 30, 2014.

The table below summarizes the activity in the product warranty liability for the six months ended June 30, 2014:



	Warranty Obligations

	(in millions)
Accrual balance at beginning of period	$	169
Provision for estimated warranties incurred during the period	29
Provision for changes in estimate for pre-existing warranties	1
Settlements made during the period (in cash or in kind)	(37		)
Foreign currency translation and other	1
Accrual balance at end of period	$	163