NOTE 9. PRODUCT WARRANTY LIABILITY
A tabular reconciliation of the product warranty liability, including the deferred revenue related to our extended warranty coverage and accrued recall programs was as follows:
|
|
|
|
|
|
|
|
|
|
In millions |
|
September 27,
2015 |
|
September 28,
2014 |
Balance, beginning of year |
|
$ |
1,283 |
|
|
$ |
1,129 |
|
Provision for warranties issued |
|
326 |
|
|
307 |
|
Deferred revenue on extended warranty contracts sold |
|
217 |
|
|
175 |
|
Payments |
|
(282 |
) |
|
(313 |
) |
Amortization of deferred revenue on extended warranty contracts |
|
(132 |
) |
|
(109 |
) |
Changes in estimates for pre-existing warranties |
|
18 |
|
|
28 |
|
Foreign currency translation |
|
(10 |
) |
|
(4 |
) |
Balance, end of period |
|
$ |
1,420 |
|
|
$ |
1,213 |
|
Warranty related deferred revenue, supplier recovery receivables and the long-term portion of the warranty liability on our September 27, 2015, balance sheet were as follows:
|
|
|
|
|
|
|
|
In millions |
|
September 27,
2015 |
|
Balance Sheet Location |
Deferred revenue related to extended coverage programs |
|
|
|
|
|
Current portion |
|
$ |
183 |
|
|
Deferred revenue |
Long-term portion |
|
508 |
|
|
Other liabilities and deferred revenue |
Total |
|
$ |
691 |
|
|
|
|
|
|
|
|
Receivables related to estimated supplier recoveries |
|
|
|
|
|
Current portion |
|
$ |
6 |
|
|
Trade and other receivables |
Long-term portion |
|
4 |
|
|
Other assets |
Total |
|
$ |
10 |
|
|
|
|
|
|
|
|
Long-term portion of warranty liability |
|
$ |
341 |
|
|
Other liabilities and deferred revenue |
|