Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v3.7.0.1
PRODUCT WARRANTY LIABILITY (Tables)
 6 Months Ended
Jul. 02, 2017
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 
 
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 revenue and the long-term portion of the warranty liability
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