Product Warranty Liabilities

12 Months Ended

Dec. 31, 2022

Guarantees and Product Warranties [Abstract]

Product Warranty Liabilities

NOTE 10. PRODUCT WARRANTY LIABILITIES

As of December 31, 2022, the current and non-current product warranty liabilities were $33 million and $24 million, respectively. As of December 31, 2021, the current and non-current product warranty liabilities were $33 million and $20 million, respectively. Product warranty liability activities consist of the following (dollars in millions):

	Year ended December 31, 2022			Year ended December 31, 2021			Year ended December 31, 2020
Beginning balance	$	53		$	66		$	52
Payments		(31	)		(30	)		(32	)
Increase in liability (warranty issued during period)		17			16			15
Net adjustments to liability		18			1			31
Ending balance	$	57		$	53		$	66

The adjustments to the total liability in 2022, 2021 and 2020 were the result of general changes in estimates for various products and specific field action programs as additional claims data and field information became available.

In 2020, the Company recorded a $23 million product warranty adjustment to address a transmission performance issue associated with shift quality in a defined population of products. As a result of this performance issue, the Company created a field action program in 2019 dedicated to the defined population of products and reviewed, assessed and made adjustments to the liability on a quarterly basis. The product warranty adjustment in 2020 was the result of additional claims data and field information becoming available.