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Warranty Obligation
9 Months Ended
Jan. 27, 2012
Product Warranties Disclosures [Abstract]  
Warranty Obligation

Note 13 – Warranty Obligation

 

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company's warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the claim. The Company includes the covered costs associated with field actions, if any, in cost of products sold on the condensed consolidated statements of earnings. The Company includes the warranty obligation in other accrued expenses and other long-term liabilities on the condensed consolidated balance sheets.

 

Changes in the Company's product warranties during the nine months ended January 27, 2012 and January 28, 2011 consisted of the following:

 

  Nine months ended
(in millions) January 27,  January 28,
2012 2011
Balance at the beginning of the period  $35 $31
Warranty claims provision   14  19
Settlements made   (19)  (16)
Balance at the end of the period  $30 $34