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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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Nine months ended |
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September 30, |
| In millions |
|
2025 |
|
2024 |
| Balance at beginning of year |
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$ |
2,623
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|
|
$ |
2,497 |
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| Provision for base warranties issued |
|
468
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|
|
490 |
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| Deferred revenue on extended warranty contracts sold |
|
313
|
|
|
263 |
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| Provision for product campaigns issued |
|
30
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|
48 |
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| Payments made during period |
|
(538) |
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|
(533) |
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| Amortization of deferred revenue on extended warranty contracts |
|
(220) |
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|
(222) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
54
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|
|
94 |
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|
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|
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|
| Foreign currency translation adjustments and other |
|
(8) |
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|
(7) |
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| Balance at end of period |
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$ |
2,722
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|
$ |
2,630 |
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We recognized supplier recoveries of zero and $19 million for the three and nine months ended September 30, 2025, compared with $4 million and $38 million for the comparable periods in 2024.
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
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| In millions |
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September 30,
2025 |
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December 31,
2024 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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|
|
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|
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| Current portion |
|
$ |
295
|
|
|
$ |
286 |
|
|
Current portion of deferred revenue |
| Long-term portion |
|
900
|
|
|
815 |
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Deferred revenue |
| Total |
|
$ |
1,195
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|
|
$ |
1,101 |
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| Product warranty |
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|
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| Current portion |
|
$ |
660
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|
|
$ |
679 |
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Current portion of accrued product warranty |
| Long-term portion |
|
867
|
|
|
843 |
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Other liabilities |
| Total |
|
$ |
1,527
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|
$ |
1,522 |
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| Total warranty accrual |
|
$ |
2,722
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|
|
$ |
2,623 |
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