Annual report pursuant to Section 13 and 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.20.4
PRODUCT WARRANTY LIABILITY (Tables)
 12 Months Ended
Dec. 31, 2020
Product Warranties Disclosures [Abstract]  
Summary of activity in the product warranty account
A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued product campaigns, was as follows:
  December 31,
In millions 2020 2019 2018
Balance, beginning of year $ 2,389  $ 2,208  $ 1,687 
Provision for base warranties issued 443  458  437 
Deferred revenue on extended warranty contracts sold 248  356  293 
Provision for product campaigns issued 90  210  481 
Payments made during period (589) (590) (443)
Amortization of deferred revenue on extended warranty contracts (227) (230) (244)
Changes in estimates for pre-existing product warranties (52) (24) 3 
Foreign currency translation and other 5  1  (6)
Balance, end of year $ 2,307  $ 2,389  $ 2,208 
Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure
Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows:
  December 31,  
In millions 2020 2019 Balance Sheet Location
Deferred revenue related to extended coverage programs      
Current portion $ 261  $ 227  Current portion of deferred revenue
Long-term portion 700  714  Deferred revenue
Total $ 961  $ 941   
Product warranty
Current portion $ 674  $ 803  Current portion of accrued product warranty
Long-term portion 672  645  Accrued product warranty
Total $ 1,346  $ 1,448 
Total warranty accrual $ 2,307  $ 2,389