NOTE 17. PRODUCT WARRANTIES
We offer warranties on certain products for various periods of time. We accrue for the estimated cost of product warranties at the time revenue is recognized. Our product warranty liability reflects management’s best estimate of probable liability based on current and historical product sales data and warranty costs incurred.
The table below summarizes the changes in the carrying amount of the liability for product warranties for the fiscal years ended June 30, 2013, and 2012:
| (in millions) | Total | |||
|
Balance at June 30, 2011 |
$ | 21 | ||
|
Warranty Accrual |
28 | |||
|
Warranty Claims Paid |
(16 | ) | ||
|
Adjustments to Preexisting Accruals |
(2 | ) | ||
|
|
|
|||
|
Balance at June 30, 2012 |
31 | |||
|
Warranty Accrual |
10 | |||
|
Warranty Claims Paid |
(19 | ) | ||
|
Adjustments to Preexisting Accruals |
(4 | ) | ||
|
|
|
|||
|
Balance at June 30, 2013 |
$ | 18 | ||
|
|
|
|||
As of June 30, 2013, 2012 and 2011, approximately $6 million, $18 million and $8 million, respectively, of the ending liability balances related to accruals for product recalls.