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Accrued Liabilities
 6 Months Ended
Jun. 30, 2011
Accrued Liabilities [Abstract]  
Accrued Liabilities
3. Accrued Liabilities
Accrued liabilities consist of (in millions):
                 
    June 30,     December 31,  
    2011     2010  
Customer prepayments and billings
  $ 675     $ 387  
Accrued purchase orders
    522       597  
Compensation
    288       403  
Warranty
    230       215  
Taxes (non income)
    91       93  
Insurance
    67       49  
Fair value of derivatives
    19       22  
Interest
    5       11  
Other
    282       328  
 
           
Total
  $ 2,179     $ 2,105  
 
           
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” (“ASC Topic 450”). 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, 2010
  $ 215  
 
     
Net provisions for warranties issued during the year
    33  
Amounts incurred
    (20 )
Foreign currency translation and other
    2  
 
     
Balance at June 30, 2011
  $ 230