|
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:
|
|
|
|
|
|
|
|
|
|
In millions |
|
April 1,
2018 |
|
April 2,
2017 |
Balance, beginning of year |
|
$ |
1,687 |
|
|
$ |
1,414 |
|
Provision for warranties issued |
|
108 |
|
|
89 |
|
Deferred revenue on extended warranty contracts sold |
|
63 |
|
|
48 |
|
Campaigns (Note 11) |
|
197 |
|
|
3 |
|
Payments |
|
(99 |
) |
|
(95 |
) |
Amortization of deferred revenue on extended warranty contracts |
|
(58 |
) |
|
(54 |
) |
Changes in estimates for pre-existing warranties |
|
10 |
|
|
34 |
|
Foreign currency translation |
|
6 |
|
|
(2 |
) |
Balance, end of period |
|
$ |
1,914 |
|
|
$ |
1,437 |
|
Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
|
April 1,
2018 |
|
December 31,
2017 |
|
Balance Sheet Location |
Deferred revenue related to extended coverage programs |
|
|
|
|
|
|
|
Current portion |
|
$ |
230 |
|
|
$ |
231 |
|
|
Current portion of deferred revenue |
Long-term portion |
|
541 |
|
|
536 |
|
|
Other liabilities and deferred revenue |
Total |
|
$ |
771 |
|
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
Long-term portion of warranty liability |
|
$ |
485 |
|
|
$ |
466 |
|
|
Other liabilities and deferred revenue |
|