Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.21.1
PRODUCT WARRANTY LIABILITY (Tables)
 3 Months Ended
Apr. 04, 2021
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:
Three months ended
In millions April 4,
2021		 March 29,
2020
Balance, beginning of year $ 2,307  $ 2,389 
Provision for base warranties issued 157  97 
Deferred revenue on extended warranty contracts sold 65  66 
Provision for product campaigns issued 3  2 
Payments made during period (146) (138)
Amortization of deferred revenue on extended warranty contracts (61) (57)
Changes in estimates for pre-existing product warranties (44) (15)
Foreign currency translation and other (6) (12)
Balance, end of period $ 2,275  $ 2,332 
Warranty related deferred revenue and the long-term portion of the warranty liability
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
In millions April 4,
2021		 December 31,
2020		 Balance Sheet Location
Deferred revenue related to extended coverage programs    
Current portion $ 270  $ 261  Current portion of deferred revenue
Long-term portion 690  700  Deferred revenue
Total $ 960  $ 961   
Product warranty    
Current portion $ 623  $ 674  Current portion of accrued product warranty
Long-term portion 692  672  Accrued product warranty
Total $ 1,315  $ 1,346   
Total warranty accrual $ 2,275  $ 2,307