Annual report pursuant to Section 13 and 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.10.0.1
PRODUCT WARRANTY LIABILITY (Tables)
 12 Months Ended
Dec. 31, 2018
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
 
2018
 
2017
 
2016
Balance, beginning of year
 
$
1,687

 
$
1,414

 
$
1,404

Provision for warranties issued
 
918

 
557

 
334

Deferred revenue on extended warranty contracts sold
 
293

 
240

 
231

Payments made during period
 
(443
)
 
(398
)
 
(385
)
Amortization of deferred revenue on extended warranty contracts
 
(244
)
 
(219
)
 
(201
)
Changes in estimates for pre-existing warranties
 
3

 
85

 
44

Foreign currency translation and other
 
(6
)
 
8

 
(13
)
Balance, end of year
 
$
2,208

 
$
1,687

 
$
1,414

Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Consolidated Balance Sheets were as follows:
 
 
December 31,
 
 
In millions
 
2018
 
2017
 
Balance Sheet Location
Deferred revenue related to extended coverage programs
 
 
 
 
 
 
Current portion
 
$
227

 
$
231

 
Current portion of deferred revenue
Long-term portion
 
587

 
536

 
Deferred revenue
Total
 
$
814

 
$
767

 
 
 
 
 
 
 
 
 
Base product warranty
 
 
 
 
 
 
Current portion
 
$
654

 
$
454

 
Current portion of accrued product warranty
Long-term portion
 
740

 
466

 
Accrued product warranty
Total
 
$
1,394

 
$
920

 
 
 
 
 
 
 
 
 
Total warranty accrual
 
$
2,208

 
$
1,687