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NOTE 10. 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:
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|
Three months ended |
|
|
March 31, |
| In millions |
|
2025 |
|
2024 |
| Balance at beginning of year |
|
$ |
2,623
|
|
|
$ |
2,497 |
|
| Provision for base warranties issued |
|
154
|
|
|
160 |
|
| Deferred revenue on extended warranty contracts sold |
|
124
|
|
|
96 |
|
| Provision for product campaigns issued |
|
11
|
|
|
6 |
|
| Payments made during period |
|
(168) |
|
|
(176) |
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|
|
|
|
|
| Amortization of deferred revenue on extended warranty contracts |
|
(71) |
|
|
(77) |
|
| Changes in estimates for pre-existing product warranties and campaigns |
|
(2) |
|
|
51 |
|
|
|
|
|
|
| Foreign currency translation adjustments and other |
|
8
|
|
|
(18) |
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|
|
|
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|
| Balance at end of period |
|
$ |
2,679
|
|
|
$ |
2,539 |
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We recognized supplier recoveries of $6 million for the three months ended March 31, 2025, compared with $22 million for the comparable period in 2024.
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
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| In millions |
|
March 31,
2025 |
|
December 31,
2024 |
|
Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
|
|
|
|
|
|
| Current portion |
|
$ |
290
|
|
|
$ |
286 |
|
|
Current portion of deferred revenue |
| Long-term portion |
|
865
|
|
|
815 |
|
|
Deferred revenue |
| Total |
|
$ |
1,155
|
|
|
$ |
1,101 |
|
|
|
|
|
|
|
|
|
|
| Product warranty |
|
|
|
|
|
|
| Current portion |
|
$ |
685
|
|
|
$ |
679 |
|
|
Current portion of accrued product warranty |
| Long-term portion |
|
839
|
|
|
843 |
|
|
Other liabilities |
| Total |
|
$ |
1,524
|
|
|
$ |
1,522 |
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|
|
|
|
|
|
|
|
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| Total warranty accrual |
|
$ |
2,679
|
|
|
$ |
2,623 |
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