What are the facts that could be discussed in accrued warranty and contingencies of Apple under note 10?

Apple, Inc.

Note 10 Commitments and Contingencies

Accrued Warranty and Contingencies

The following table shows changes in the Companys accrued warranties and related costs for 2015,2014 and 2013 (in millions)

2015 2014 2013

Beginning accrued warranty and related costs $4,159 2,967 1,638

Cost of warranty claims (4,401) (3,760) (3,703)

Accruals for product warranty 5,022 4,952 5,032

Ending accrued warranty and related costs $4,708 $4,159 $2,967

The company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third party intellectual property rights. Other agreements entered into by the company sometimes include indemnification provisions under which the company could be subject to cost and/or damages in the event of an infringement claim against the company or an indemnified provisions under which the company could be subject to costs and/ or damages in the event of an infringement claim against the company or an indemnified third-party. In the opinion of management, there was not at least a reasonably possibility the company may have incurred a material loss with respect to indemnification of end-users of its operating system or application software for the infringement of third party intellectual property rights. The company did not record a liability for infringement cost related to indemnification as of Sept 26, 2015 or Sept 27, 2016.

In Sept 2015, the company introduced the iPhone upgrade program, which is available to customers who purchases an IPhone 6S and 6splus in one of its u.s. physical retail store and activate the purchased iPhone with one of the four national carriers. The iPhone upgrade program provides customers the right to trade in that iPhone for a new iPhone., provided certain conditions are met. One of the conditions of this program requires the customers to finance the initial purchase price of the iPhone with a third-party lender. Upon exercise of the trade -in right and purchase of a new iPhone, the company satisfies the customers outstanding balance due to the third-party lender on the original device. 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 revenue

The company has entered into indemnification agreements with its directions and executive officers. Under this agreements, the company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors of officers and to advance expenses incurred by such individuals in connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each item. However, the company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations.