BSX » Topics » Warranty Obligations

These excerpts taken from the BSX 10-K filed Feb 28, 2008.
Warranty Obligations

We estimate the costs that we may incur under our warranty programs based on historical experience and record a liability at the time our products are sold. Factors that affect our warranty liability include the number of units sold, the historical and anticipated rates of warranty claims and the cost per claim. We record a reserve equal to the costs to repair or otherwise satisfy the claim. We regularly assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Changes in our product warranty obligations during the years ended December 31, 2007 and 2006 consisted of the following (in millions):
81

 
Balance at January 1, 2006
  $ 12  
Guidant warranty provision assumed
    50  
Warranty claims provision
    28  
Settlements made
    (30 )
Balance at December 31, 2006
    60  
Warranty claims provision
    23  
Settlements made
    (17 )
Balance at December 31, 2007
  $ 66  
 
Warranty
Obligations



We
estimate the costs that we may incur under our warranty programs based on
historical experience and record a liability at the time our products are sold.
Factors that affect our warranty liability include the number of units sold, the
historical and anticipated rates of warranty claims and the cost per claim. We
record a reserve equal to the costs to repair or otherwise satisfy the claim. We
regularly assess the adequacy of our recorded warranty liabilities and adjust
the amounts as necessary. Changes in our product warranty obligations during the
years ended December 31, 2007 and 2006 consisted of the following (in
millions):








81











 





























































Balance
at January 1, 2006

  $ 12  

Guidant
warranty provision assumed

    50  

Warranty
claims provision

    28  

Settlements
made

    (30 )

Balance
at December 31, 2006

    60  

Warranty
claims provision

    23  

Settlements
made

    (17 )

Balance
at December 31, 2007

  $ 66  


 

This excerpt taken from the BSX 10-K filed Mar 1, 2006.

Warranty Obligations

        The Company estimates the costs that may be incurred under its warranties based on historical experience and records a liability at the time the product is sold. Factors that affect the Company's warranty liability include the number of units sold, the historical and anticipated rates of warranty claims and the cost per claim. The Company regularly assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Expense attributable to warranties was not material to the statements of operations for 2005, 2004 and 2003.

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