Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.19.3
PRODUCT WARRANTY LIABILITY (Tables)
 9 Months Ended
Sep. 29, 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:
 
 
 
Nine months ended
In millions
 
September 29,
2019
 
September 30,
2018
Balance, beginning of year
 
$
2,208

 
$
1,687

Provision for base warranties issued
 
360

 
337

Deferred revenue on extended warranty contracts sold
 
254

 
211

Provision for product campaigns issued
 
163

 
456

Payments made during period
 
(431
)
 
(313
)
Amortization of deferred revenue on extended warranty contracts
 
(174
)
 
(179
)
Changes in estimates for pre-existing product warranties
 
(16
)
 
18

Foreign currency translation and other
 
(9
)
 
(6
)
Balance, end of period
 
$
2,355

 
$
2,211


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
 
September 29,
2019
 
December 31,
2018
 
Balance Sheet Location
Deferred revenue related to extended coverage programs
 
 

 
 
 
 
Current portion
 
$
225

 
$
227

 
Current portion of deferred revenue
Long-term portion
 
668

 
587

 
Deferred revenue
Total
 
$
893

 
$
814

 
 
 
 
 
 
 
 
 
Product warranty
 
 

 
 
 
 
Current portion
 
$
817

 
$
654

 
Current portion of accrued product warranty
Long-term portion
 
645

 
740

 
Accrued product warranty
Total
 
$
1,462

 
$
1,394

 
 
 
 
 
 
 
 
 
Total warranty accrual
 
$
2,355

 
$
2,208