Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.5.0.2
PRODUCT WARRANTY LIABILITY (Tables)
 9 Months Ended
Oct. 02, 2016
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 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
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