Accrued Liabilities

3 Months Ended

Mar. 31, 2018

3.	Accrued Liabilities

Accrued liabilities consist of (in millions):


	March 31,		December 31,
	2018		2017
Compensation	$	214	$	345
Vendor costs		142		150
Warranty		129		135
Taxes (non-income)		84		152
Insurance		72		74
Commissions		45		58
Fair value of derivative financial instruments		8		8
Interest		27		7
Other		244		309

Total	$	965	$	1,238

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, 2017	$	135

Net provisions for warranties issued during the year		5
Amounts incurred		(12	)
Currency translation adjustments and other		1

Balance at March 31, 2018	$	129