NOTE 8. 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 |
|
July 2,
2017 |
|
July 3,
2016 |
Balance, beginning of year |
|
$ |
1,414 |
|
|
$ |
1,404 |
|
Provision for warranties issued |
|
239 |
|
|
181 |
|
Deferred revenue on extended warranty contracts sold |
|
101 |
|
|
116 |
|
Payments |
|
(199 |
) |
|
(199 |
) |
Amortization of deferred revenue on extended warranty contracts |
|
(109 |
) |
|
(98 |
) |
Changes in estimates for pre-existing warranties |
|
74 |
|
|
12 |
|
Foreign currency translation |
|
1 |
|
|
(5 |
) |
Balance, end of period |
|
$ |
1,521 |
|
|
$ |
1,411 |
|
Warranty related deferred revenues and the long-term portion of the warranty liabilities on our July 2, 2017, balance sheet were as follows:
|
|
|
|
|
|
|
|
In millions |
|
July 2,
2017 |
|
Balance Sheet Location |
Deferred revenue related to extended coverage programs |
|
|
|
|
|
Current portion |
|
$ |
232 |
|
|
Current portion of deferred revenue |
Long-term portion |
|
505 |
|
|
Other liabilities and deferred revenue |
Total |
|
$ |
737 |
|
|
|
|
|
|
|
|
Long-term portion of warranty liability |
|
$ |
392 |
|
|
Other liabilities and deferred revenue |
|