Meritor Acquisition and 2022 Financial Results
Table of Contents
NOTE 14. PRODUCT WARRANTY LIABILITY
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:
In millions
Balance, beginning of year
Provision for base warranties issued
Provision for product campaigns issued
Deferred revenue on extended warranty contracts sold
Payments made during period
Amortization of deferred revenue on extended warranty contracts
Changes in estimates for pre-existing product warranties and campaigns
Acquisitions (1)
Foreign currency translation adjustments and other
Balance, end of year
(1) See NOTE 2, "ACQUISITIONS," to our Consolidated Financial Statements for additional information.
2022
December 31,
2021
2020
$
2,425
$
2,307 S
2,389
515
503
443
287
288
248
141
346
90
(596)
(530)
(589)
(298)
(260)
(227)
(128)
(228)
(52)
147
(16)
(1)
$
2,477 $
2,425
S
5
2,307
We recognized supplier recoveries of $39 million, $170 million and $20 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Warranty related deferred revenues and warranty liabilities on ourConsolidated Balance Sheets were as follows:
In millions
December 31,
2022
2021
Balance Sheet Location
Deferred revenue related to extended coverage programs
Current portion
$
290
286
Long-term portion
717
700
Current portion of deferred revenue
Deferred revenue
Total
$
1,007
$
986
Product warranty
Current portion
Long-term portion
Total
$
726
$
755
Current portion of accrued product warranty
744
684
Other liabilities
$
1,470
1,439
Total warranty accrual
$
2,477 $
2,425
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