Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.19.2
PRODUCT WARRANTY LIABILITY (Tables)
 6 Months Ended
Jun. 30, 2019
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:
 
 
 
Six months ended
In millions
 
June 30,
2019
 
July 1,
2018
Balance, beginning of year
 
$
2,208

 
$
1,687

Provision for base warranties issued
 
259

 
222

Deferred revenue on extended warranty contracts sold
 
171

 
139

Provision for product campaigns issued
 
134

 
403

Payments made during period
 
(308
)
 
(212
)
Amortization of deferred revenue on extended warranty contracts
 
(117
)
 
(118
)
Changes in estimates for pre-existing product warranties
 
(8
)
 
10

Foreign currency translation and other
 
(1
)
 
(1
)
Balance, end of period
 
$
2,338

 
$
2,130


Warranty related deferred revenue and the long-term portion of the warranty liability
Warranty related deferred revenues and the long-term portion of the warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
In millions
 
June 30,
2019
 
December 31,
2018
 
Balance Sheet Location
Deferred revenue related to extended coverage programs
 
 

 
 
 
 
Current portion
 
$
224

 
$
227

 
Current portion of deferred revenue
Long-term portion
 
642

 
587

 
Deferred revenue
Total
 
$
866

 
$
814

 
 
 
 
 
 
 
 
 
Product warranty
 
 

 
 
 
 
Current portion
 
$
809

 
$
654

 
Current portion of accrued product warranty
Long-term portion
 
663

 
740

 
Accrued product warranty
Total
 
$
1,472

 
$
1,394

 
 
 
 
 
 
 
 
 
Total warranty accrual
 
$
2,338

 
$
2,208