|
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 |
|
October 1,
2017 |
|
October 2,
2016 |
Balance, beginning of year |
|
$ |
1,414 |
|
|
$ |
1,404 |
|
Provision for warranties issued |
|
446 |
|
|
256 |
|
Deferred revenue on extended warranty contracts sold |
|
164 |
|
|
179 |
|
Payments |
|
(296 |
) |
|
(291 |
) |
Amortization of deferred revenue on extended warranty contracts |
|
(161 |
) |
|
(148 |
) |
Changes in estimates for pre-existing warranties |
|
71 |
|
|
22 |
|
Foreign currency translation |
|
5 |
|
|
(6 |
) |
Balance, end of period |
|
$ |
1,643 |
|
|
$ |
1,416 |
|
Warranty related deferred revenues and the long-term portion of the warranty liabilities on our October 1, 2017, balance sheet were as follows:
|
|
|
|
|
|
|
|
In millions |
|
October 1,
2017 |
|
Balance Sheet Location |
Deferred revenue related to extended coverage programs |
|
|
|
|
|
Current portion |
|
$ |
229 |
|
|
Current portion of deferred revenue |
Long-term portion |
|
519 |
|
|
Other liabilities and deferred revenue |
Total |
|
$ |
748 |
|
|
|
|
|
|
|
|
Long-term portion of warranty liability |
|
$ |
433 |
|
|
Other liabilities and deferred revenue |
|