Quarterly report pursuant to Section 13 or 15(d)

PRODUCT WARRANTY LIABILITY (Tables)

v2.4.0.6
PRODUCT WARRANTY LIABILITY (Tables)
6 Months Ended
Jul. 01, 2012
PRODUCT WARRANTY LIABILITY  
Summary of activity in the product warranty account

 

 

 

 

Six months ended

 

 

 

July 1,

 

June 26,

 

In millions 

 

2012

 

2011

 

Balance, beginning of year

 

$

1,014

 

$

980

 

Provision for warranties issued

 

227

 

219

 

Deferred revenue on extended warranty contracts sold

 

98

 

50

 

Payments

 

(196

)

(188

)

Amortization of deferred revenue on extended warranty contracts

 

(51

)

(46

)

Changes in estimates for pre-existing warranties

 

(27

)

7

 

Foreign currency translation

 

(3

)

3

 

Balance, end of period

 

$

1,062

 

$

1,025

 

Warranty related deferred revenue, supplier recovery receivables and the long-term portion of the warranty liability

 

 

In millions

 

July 1, 2012

 

Balance Sheet Location

 

Deferred revenue related to extended coverage programs

 

 

 

 

 

Current portion

 

$

102

 

Deferred revenue

 

Long-term portion

 

258

 

Other liabilities and deferred revenue

 

Total

 

$

360

 

 

 

 

 

 

 

 

 

Receivables related to estimated supplier recoveries

 

 

 

 

 

Current portion

 

$

7

 

Trade and other receivables

 

Long-term portion

 

6

 

Other assets

 

Total

 

$

13

 

 

 

 

 

 

 

 

 

Long-term portion of warranty liability

 

$

295

 

Other liabilities and deferred revenue