Accrued Liabilities

9 Months Ended

Sep. 30, 2018

3.	Accrued Liabilities

Accrued liabilities consist of (in millions):

	September 30,		December 31,
	2018		2017
Compensation	$	281	$	345
Vendor costs		128		150
Warranty		114		135
Taxes (non-income)		103		152
Insurance		61		74
Commissions		38		58
Interest		27		7
Fair value of derivatives		13		8
Other		258		309
Total	$	1,023	$	1,238

Warranties

The Company provides warranties on certain of its products and services. The Company accrues warranty liability based upon specific claims and a review of historical 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 warranty provision are as follows (in millions):

Balance at December 31, 2017	$	135
Net provisions for warranties issued during the year		27
Amounts incurred		(48	)
Balance at September 30, 2018	$	114