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Accrued Liabilities
 6 Months Ended
Jun. 30, 2015
Payables and Accruals [Abstract]  
Accrued Liabilities
4.   Accrued Liabilities

Accrued liabilities consist of (in millions):

 

     June 30,
2015		      December 31,
2014		  

Accrued vendor costs

    $ 880       $ 815   

Customer prepayments and billings

      566         703   

Compensation

      331         662   

Fair value of derivative financial instruments

      290         297   

Warranty

      261         272   

Taxes (non-income)

      158         211   

Insurance

      115         126   

Accrued commissions

      87         97   

Interest

      11         11   

Other

      329         324   
  

 

 

     

 

 

  

Total

    $ 3,028       $ 3,518   
  

 

 

     

 

 

  

Service and Product Warranties

The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with Accounting Standards Codification (“ASC”) Topic 450 “Contingencies”. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues and accrues for them when they are encountered.

The changes in the carrying amount of service and product warranties are as follows (in millions):

 

Balance at December 31, 2014

    $ 272   
  

 

 

  

Net provisions for warranties issued during the year

      39   

Amounts incurred

      (48 ) 

Currency translation adjustments and other

      (2 ) 
  

 

 

  

Balance at June 30, 2015

    $ 261