Product Warranty

3 Months Ended

Mar. 31, 2019

Product Warranties Disclosures [Abstract]

Product Warranty

Product Warranty

The Company provides warranties on some, but not all, of its products. The warranty terms are typically from one to three years. Provisions for estimated expenses related to product warranty are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and industry developments and recoveries from third parties. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. Management believes that the warranty accrual is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the accrual.

The following table summarizes the activity in the product warranty accrual accounts:

(in millions)	2019			2018
Beginning balance, January 1	$	103		$	112
Provisions for current period sales	15			13
Adjustments of prior estimates	7			1
Payments	(18		)	(10		)
Translation adjustment	—			2
Ending balance, March 31	$	107		$	118

The product warranty liability is classified in the Condensed Consolidated Balance Sheets as follows:

	March 31,		December 31,
(in millions)	2019		2018
Accounts payable and accrued expenses	$	61	$	56
Other non-current liabilities	46		47
Total product warranty liability	$	107	$	103