Think of that table as a T-account for simplicity as follows:

• Beginning balance on the Credit Side
• Accruals as additions on the Credit side
• Actual claims as subtractions from the Debit Side
• Ending balance on the Credit Side

Accrued Warranty and Guarantees The following table shows changes in the Company's accrued warranties and related costs for 2019, 2018 and 2017 (in millions): 2019 2018 2017 Beginning accrued warranty and related costs 3,692 $ 3,834 $ 3,702 Cost of warranty claims (3,857) (4,115) (4,322) Accruals for product warranty 3,735 3,973 4,454 Ending accrued warranty and related costs $ 3,570 $ 3,692 $ 3,834 The Company offers an iPhone Upgrade Program, which is available to customers who purchase a qualifying iPhone in the U.S., the U.K. and mainland China. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a specified amount when purchasing a new iPhone, provided certain conditions are met. The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right with subsequent changes to the guarantee liability recognized within net sales. Accrued Warranty and Guarantees The following table shows changes in the Company's accrued warranties and related costs for 2019, 2018 and 2017 (in millions): 2019 2018 2017 Beginning accrued warranty and related costs 3,692 $ 3,834 $ 3,702 Cost of warranty claims (3,857) (4,115) (4,322) Accruals for product warranty 3,735 3,973 4,454 Ending accrued warranty and related costs $ 3,570 $ 3,692 $ 3,834 The Company offers an iPhone Upgrade Program, which is available to customers who purchase a qualifying iPhone in the U.S., the U.K. and mainland China. The iPhone Upgrade Program provides customers the right to trade in that iPhone for a specified amount when purchasing a new iPhone, provided certain conditions are met. The Company accounts for the trade-in right as a guarantee liability and recognizes arrangement revenue net of the fair value of such right with subsequent changes to the guarantee liability recognized within net sales