Product Warranty

9 Months Ended

Sep. 30, 2020

Product Warranties Disclosures [Abstract]

Product Warranty

Product WarrantyThe 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, which could require adjustments to the accrual.

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

(in millions)	2020		2019
Beginning balance, January 1	$	116	$	103
Provisions for current period sales	36		36
Adjustments of prior estimates	14		9
Payments	(41)		(43)
Translation adjustment	2		(4)
Ending balance, September 30	$	127	$	101

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

	September 30,		December 31,
(in millions)	2020		2019
Accounts payable and accrued expenses	$	73	$	63
Other non-current liabilities	54		53
Total product warranty liability	$	127	$	116