NOTE 10. PRODUCT WARRANTY LIABILITY
A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued recall programs was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
In millions |
|
2014 |
|
2013 |
Balance, beginning of year |
|
$ |
1,129 |
|
|
$ |
1,088 |
|
Provision for warranties issued |
|
411 |
|
|
431 |
|
Deferred revenue on extended warranty contracts sold |
|
263 |
|
|
189 |
|
Payments |
|
(404 |
) |
|
(427 |
) |
Amortization of deferred revenue on extended warranty contracts |
|
(148 |
) |
|
(115 |
) |
Changes in estimates for pre-existing warranties |
|
41 |
|
|
(35 |
) |
Foreign currency translation |
|
(9 |
) |
|
(2 |
) |
Balance, end of year |
|
$ |
1,283 |
|
|
$ |
1,129 |
|
Warranty related deferred revenue, supplier recovery receivables and the long-term portion of the warranty liability on our Consolidated Balance Sheets were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
In millions |
|
2014 |
|
2013 |
|
Balance Sheet Location |
Deferred revenue related to extended coverage programs |
|
|
|
|
|
|
Current portion |
|
$ |
170 |
|
|
$ |
145 |
|
|
Deferred revenue |
Long-term portion |
|
438 |
|
|
349 |
|
|
Other liabilities and deferred revenue |
Total |
|
$ |
608 |
|
|
$ |
494 |
|
|
|
Receivables related to estimated supplier recoveries |
|
|
|
|
|
|
Current portion |
|
$ |
12 |
|
|
$ |
5 |
|
|
Trade and other receivables |
Long-term portion |
|
4 |
|
|
5 |
|
|
Other assets |
Total |
|
$ |
16 |
|
|
$ |
10 |
|
|
|
Long-term portion of warranty liability |
|
$ |
312 |
|
|
$ |
275 |
|
|
Other liabilities and deferred revenue |
|