PRODUCT WARRANTY LIABILITY (Tables)

9 Months Ended

Oct. 03, 2021

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 product campaigns, was as follows:

	Nine months ended
In millions	October 3, 2021		September 27, 2020
Balance, beginning of year	$	2,307	$	2,389
Provision for base warranties issued	431		277
Deferred revenue on extended warranty contracts sold	210		172
Provision for product campaigns issued	162		27
Payments made during period	(409)		(424)
Amortization of deferred revenue on extended warranty contracts	(191)		(169)
Changes in estimates for pre-existing product warranties	(131)		(41)
Foreign currency translation and other	(4)		(6)
Balance, end of period	$	2,375	$	2,225

Warranty related deferred revenue and the long-term portion of the warranty liability

Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:

In millions	October 3, 2021		December 31, 2020		Balance Sheet Location
Deferred revenue related to extended coverage programs
Current portion	$	283	$	261	Current portion of deferred revenue
Long-term portion	695		700		Deferred revenue
Total	$	978	$	961
Product warranty
Current portion	$	694	$	674	Current portion of accrued product warranty
Long-term portion	703		672		Accrued product warranty
Total	$	1,397	$	1,346
Total warranty accrual	$	2,375	$	2,307