PRODUCT WARRANTY LIABILITY (Tables)

3 Months Ended

Mar. 31, 2022

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:

	Three months ended
In millions	March 31, 2022			April 4, 2021
Balance, beginning of year	$	2,425		$	2,307
Provision for base warranties issued	123			157
Deferred revenue on extended warranty contracts sold	70			65
Provision for product campaigns issued	42			3
Payments made during period	(132)			(146)
Amortization of deferred revenue on extended warranty contracts	(73)			(61)
Changes in estimates for pre-existing product warranties	(26)			(44)
Foreign currency translation and other	94		(1)	(6)
Balance, end of period	$	2,523		$	2,275
(1) Includes $95 million of product warranty liability related to the acquisition of Cummins Westport Joint Venture. See Note 14, "ACQUISITIONS" to our Condensed Consolidated Financial Statements for additional information.

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	March 31, 2022		December 31, 2021		Balance Sheet Location
Deferred revenue related to extended coverage programs
Current portion	$	292	$	286	Current portion of deferred revenue
Long-term portion	724		700		Deferred revenue
Total	$	1,016	$	986
Product warranty
Current portion	$	798	$	755	Current portion of accrued product warranty
Long-term portion	709		684		Accrued product warranty
Total	$	1,507	$	1,439
Total warranty accrual	$	2,523	$	2,425