Product Warranties

9 Months Ended

Jun. 30, 2011

Product Warranties [Abstract]

Product Warranties

7. Product Warranties

The Company offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that the Company replace defective products within a specified time period from the date of sale. The Company records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, the adequacy of the Company’s warranty provisions are adjusted as necessary. The Company monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates.

The Company’s product warranty liability is recorded in the condensed consolidated statement of financial position in other current liabilities if the warranty is less than one year and in other noncurrent liabilities if the warranty extends longer than one year.

The changes in the carrying amount of the Company’s total product warranty liability for the nine months ended June 30, 2011 and 2010 were as follows (in millions):

	Nine Months Ended
	June 30,
	2011			2010
Balance at beginning of period	$	337		$	344
Accruals for warranties issued during the period		150			169
Accruals from acquisitions		—			2
Accruals related to pre-existing warranties (including changes in estimates)		(32	)		(1	)
Settlements made (in cash or in kind) during the period		(165	)		(184	)
Currency translation		5			(9	)
Balance at end of period	$	295		$	321