Annual report pursuant to Section 13 and 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.19.3.a.u2
PRODUCT WARRANTY LIABILITY (Tables)
 12 Months Ended
Dec. 31, 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:
 
 
December 31,
In millions
 
2019
 
2018
 
2017
Balance, beginning of year
 
$
2,208

 
$
1,687

 
$
1,414

Provision for base warranties issued
 
458

 
437

 
376

Deferred revenue on extended warranty contracts sold
 
356

 
293

 
240

Provision for product campaigns issued
 
210

 
481

 
181

Payments made during period
 
(590
)
 
(443
)
 
(398
)
Amortization of deferred revenue on extended warranty contracts
 
(230
)
 
(244
)
 
(219
)
Changes in estimates for pre-existing product warranties
 
(24
)
 
3

 
85

Foreign currency translation and other
 
1

 
(6
)
 
8

Balance, end of year
 
$
2,389

 
$
2,208

 
$
1,687


Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure
Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows:
 
 
December 31,
 
 
In millions
 
2019
 
2018
 
Balance Sheet Location
Deferred revenue related to extended coverage programs
 
 
 
 
 
 
Current portion
 
$
227

 
$
227

 
Current portion of deferred revenue
Long-term portion
 
714

 
587

 
Deferred revenue
Total
 
$
941

 
$
814

 
 
 
 
 
 
 
 
 
Product warranty
 
 
 
 
 
 
Current portion
 
$
803

 
$
654

 
Current portion of accrued product warranty
Long-term portion
 
645

 
740

 
Accrued product warranty
Total
 
$
1,448

 
$
1,394

 
 
 
 
 
 
 
 
 
Total warranty accrual
 
$
2,389

 
$
2,208