Within the table for our product warranty reserves in Note 5, Commitments and Contingencies, contained in our Form 10-Q for the six months ended June 30, 2009, "Warranties issued during the period" should have been $196 million (previously disclosed as $181 million) and "Settlements made during the period" should have been $228 million (previously disclosed as $213 million). Such changes do not impact either the "Total" in the table for our product warranty reserves or any other number in our Consolidated Condensed Financial Statements for the six months ended June 30, 2009. For the convenience of the reader, we have provided below the revised warranty reserves disclosure in its entirety as contained within Note 5, Commitments and Contingencies, in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") on July 22, 2009.

(5) COMMITMENTS AND CONTINGENCIES

Warranty Reserves (as revised)

Product warranty reserves are established in the same period that revenue from the sale of the related products is recognized. The amounts of those reserves are based on established terms and our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date.

The following represents a reconciliation of the changes in product warranty reserves for the periods presented:

              Millions of dollars                    2009        2008

              Balance at January 1                  $  215      $  226
              Warranties issued during the period      196         197
              Settlements made during the period      (228 )      (214 )
              Other changes                              2           1

              Balance at June 30                    $  185      $  210


              Current portion                       $  159      $  158
              Non-current portion                       26          52

              Total                                 $  185      $  210

Product warranty reserves are included within other current liabilities and other noncurrent liabilities in our Consolidated Condensed Balance Sheet at June 30, 2009.

For additional information, see our Form 10-Q for the six month period ended June 30, 2009 filed with the SEC on July 22, 2009.