Headquartered in Montreal, Quebec, Canada, Bombardier, Inc, is a multinational aerospace and transportation company, founded in 1941. The company manufactures regional aircraft, business jets, mass transportation equipment, and recreational equipment and is also a financial services provider. Bombardier is a Fortune Global 500 company and operates two segments: BA (Aerospace) and BT (Transportation). Bombardier's 2012 annual report includes the following details about the company's warranty reserve:

Required

a. In common language, explain what is a warranty reserve. When do companies create such reserves?

b. What amount is included on the 2012 balance sheet for warranty reserve?

c. What amount is included on the 2012 income statement related to warranties?

d. What is meant by "Utilization" in the table? What sort of costs does this entail?

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Balance as at December 31, 2011. Additions.... Utilization Reversals Accretion expense Effect of changes in discount rates Effect of foreign currently exchange.. Balance as at December 31, 2012. Of which current..... Of which non-current $1,073 308 (365) (66) 15 $966 $818 148 $ 966