Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.21.2
PRODUCT WARRANTY LIABILITY (Tables)
 9 Months Ended
Oct. 03, 2021
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 October 3,
2021		 September 27,
2020
Balance, beginning of year $ 2,307  $ 2,389 
Provision for base warranties issued 431  277 
Deferred revenue on extended warranty contracts sold 210  172 
Provision for product campaigns issued 162  27 
Payments made during period (409) (424)
Amortization of deferred revenue on extended warranty contracts (191) (169)
Changes in estimates for pre-existing product warranties (131) (41)
Foreign currency translation and other (4) (6)
Balance, end of period $ 2,375  $ 2,225 
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 October 3,
2021		 December 31,
2020		 Balance Sheet Location
Deferred revenue related to extended coverage programs    
Current portion $ 283  $ 261  Current portion of deferred revenue
Long-term portion 695  700  Deferred revenue
Total $ 978  $ 961   
Product warranty    
Current portion $ 694  $ 674  Current portion of accrued product warranty
Long-term portion 703  672  Accrued product warranty
Total $ 1,397  $ 1,346   
Total warranty accrual $ 2,375  $ 2,307