Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.20.1
PRODUCT WARRANTY LIABILITY (Tables)
3 Months Ended
Mar. 29, 2020
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:
Three months ended
In millions March 29,
2020
March 31,
2019
Balance, beginning of year $ 2,389    $ 2,208   
Provision for base warranties issued 97    129   
Deferred revenue on extended warranty contracts sold 66    90   
Provision for product campaigns issued   90   
Payments made during period (138)   (150)  
Amortization of deferred revenue on extended warranty contracts (57)   (59)  
Changes in estimates for pre-existing product warranties (15)   (23)  
Foreign currency translation and other (12)    
Balance, end of period $ 2,332    $ 2,288   
Warranty related deferred revenue and the long-term portion of the warranty liability
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
In millions March 29,
2020
December 31,
2019
Balance Sheet Location
Deferred revenue related to extended coverage programs    
Current portion $ 232    $ 227    Current portion of deferred revenue
Long-term portion 717    714    Deferred revenue
Total $ 949    $ 941     
Product warranty    
Current portion $ 743    $ 803    Current portion of accrued product warranty
Long-term portion 640    645    Accrued product warranty
Total $ 1,383    $ 1,448     
Total warranty accrual $ 2,332    $ 2,389