PRODUCT WARRANTY

6 Months Ended

Jun. 30, 2023

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 product warranty accrual is allocated to current and non-current liabilities in the Condensed Consolidated Balance Sheets.

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

(in millions)	2023		2022
Beginning balance, January 1	$	245	$	236
Provisions for current period sales	64		47
Adjustments of prior estimates	(2)		(2)
Payments	(61)		(44)
Other, primarily translation adjustment	(1)		(13)
Ending balance, June 30	$	245	$	224

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

	June 30,		December 31,
(in millions)	2023		2022
Other current liabilities	$	124	$	142
Other non-current liabilities	121		103
Total product warranty liability	$	245	$	245