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 |
|
October 2,
2016 |
|
September 27,
2015 |
Balance, beginning of year |
|
$ |
1,404 |
|
|
$ |
1,283 |
|
Provision for warranties issued |
|
256 |
|
|
326 |
|
Deferred revenue on extended warranty contracts sold |
|
179 |
|
|
217 |
|
Payments |
|
(291 |
) |
|
(282 |
) |
Amortization of deferred revenue on extended warranty contracts |
|
(148 |
) |
|
(132 |
) |
Changes in estimates for pre-existing warranties |
|
22 |
|
|
18 |
|
Foreign currency translation |
|
(6 |
) |
|
(10 |
) |
Balance, end of period |
|
$ |
1,416 |
|
|
$ |
1,420 |
|
Warranty related deferred revenue and the long-term portion of the warranty liability on our October 2, 2016, balance sheet were as follows:
|
|
|
|
|
|
|
|
In millions |
|
October 2,
2016 |
|
Balance Sheet Location |
Deferred revenue related to extended coverage programs |
|
|
|
|
|
Current portion |
|
$ |
210 |
|
|
Current portion of deferred revenue |
Long-term portion |
|
537 |
|
|
Other liabilities and deferred revenue |
Total |
|
$ |
747 |
|
|
|
|
|
|
|
|
Long-term portion of warranty liability |
|
$ |
336 |
|
|
Other liabilities and deferred revenue |
|