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The Company accounts for its internal-use software, an intangible asset by nature, in Property, plant and
equipment, net on the Consolidated Statement of Financial Position. Refer to Note 10 for disclosures
regarding internal-use software.
12. ACCRUED LIABILITIES AND OTHER LIABILITIES
Accrued liabilities, in the current liabilities section of the balance sheet, consisted of the following at
December 31:
2010 2009
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $157.0 $111.8
Deferred revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.0 119.7
Copyrightfees................................................... 64.8 69.9
Marketing programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.8 69.8
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281.4 310.5
Accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $711.0 $681.7
Changes in the Company’s warranty liability for standard warranties and deferred revenue for extended
warranties, are presented in the tables below:
Warranty Liability:
2010 2009
Balance at January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 46.6 $ 50.9
Accruals for warranties issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.9 84.1
Accruals related to pre-existing warranties (including changes in estimates). . . . (5.0) 4.4
Settlements made (in cash or in kind) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (83.3) (92.8)
Balance at December 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52.2 $ 46.6
Deferred service revenue:
2010 2009
Balance at January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 195.9 $203.7
Revenue deferred for new extended warranty contracts. . . . . . . . . . . . . . . . . . 90.2 80.6
Revenue recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100.4) (88.4)
Balance at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185.7 $195.9
Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90.8 82.9
Non-current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94.9 113.0
Balance at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185.7 $195.9
Both the short-term portion of warranty and the short-term portion of extended warranty are included in
Accrued liabilities on the Consolidated Statements of Financial Position. Both the long-term portion of
warranty and the long-term portion of extended warranty are included in Other liabilities on the
Consolidated Statements of Financial Position. The split between the short-term and long-term portion
of the warranty liability is not disclosed separately above due to immaterial amounts in the long-term
portion.
102