Product Warranty

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Indemnifications

We offer warranties on the sale of most of our products and record an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. The activity in warranty reserves is summarized in the following table. 

	Year ended December 31,
	2020		2019
Beginning balance	$	8	$	14
Accrued to expense during the year	2		1
Reduced to other operating credits and charges	—		(4)
Payments made	(2)		(3)
Total warranty reserves	8		8
Current portion of warranty reserves	(2)		(2)
Long-term portion of warranty reserves	$	6	$	6

The current portion of the warranty reserve is included in “Accounts payable and accrued liabilities,” and the long-term portion is included in “Other long-term liabilities” on our Consolidated Balance Sheets.

We changed the warranty reserves related to CanExel® products sold in certain geographic areas for a specific time period, reducing our warranty reserve by $4 million in 2019. The changes to the reserve reflected revised estimates of future claims.

We believe that the warranty reserve balances at December 31, 2020, are adequate to cover future warranty

payments. However, it is possible that additional charges may be required.