Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.22.1
PRODUCT WARRANTY LIABILITY (Tables)
 3 Months Ended
Mar. 31, 2022
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 31,
2022		 April 4,
2021
Balance, beginning of year $ 2,425  $ 2,307 
Provision for base warranties issued 123  157 
Deferred revenue on extended warranty contracts sold 70  65 
Provision for product campaigns issued 42  3 
Payments made during period (132) (146)
Amortization of deferred revenue on extended warranty contracts (73) (61)
Changes in estimates for pre-existing product warranties (26) (44)
Foreign currency translation and other 94 
(1)
 (6)
Balance, end of period $ 2,523  $ 2,275 
(1) Includes $95 million of product warranty liability related to the acquisition of Cummins Westport Joint Venture. See Note 14, "ACQUISITIONS" to our Condensed Consolidated Financial Statements for additional information.
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 31,
2022		 December 31,
2021		 Balance Sheet Location
Deferred revenue related to extended coverage programs    
Current portion $ 292  $ 286  Current portion of deferred revenue
Long-term portion 724  700  Deferred revenue
Total $ 1,016  $ 986   
Product warranty    
Current portion $ 798  $ 755  Current portion of accrued product warranty
Long-term portion 709  684  Accrued product warranty
Total $ 1,507  $ 1,439   
Total warranty accrual $ 2,523  $ 2,425