Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.23.1
PRODUCT WARRANTY LIABILITY (Tables)
 3 Months Ended
Mar. 31, 2023
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
March 31,
In millions 2023 2022
Balance, beginning of year $ 2,477  $ 2,425 
Provision for base warranties issued 146  123 
Deferred revenue on extended warranty contracts sold 102  70 
Provision for product campaigns issued 6  42 
Payments made during period (143) (132)
Amortization of deferred revenue on extended warranty contracts (75) (73)
Changes in estimates for pre-existing product warranties and campaigns 10  (26)
Acquisition(1)
—  95 
Foreign currency translation adjustments and other 7  (1)
Balance, end of period $ 2,530  $ 2,523 
(1) See NOTE 16, "ACQUISITION," 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,
2023		 December 31,
2022		 Balance Sheet Location
Deferred revenue related to extended coverage programs    
Current portion $ 289  $ 290  Current portion of deferred revenue
Long-term portion 742  717  Deferred revenue
Total $ 1,031  $ 1,007   
Product warranty    
Current portion $ 746  $ 726  Current portion of accrued product warranty
Long-term portion 753  744  Other liabilities
Total $ 1,499  $ 1,470   
Total warranty accrual $ 2,530  $ 2,477