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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 |
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March 31, |
| In millions |
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2023 |
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2022 |
| Balance, beginning of year |
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$ |
2,477
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|
|
$ |
2,425 |
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| Provision for base warranties issued |
|
146
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|
123 |
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| Deferred revenue on extended warranty contracts sold |
|
102
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|
70 |
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| Provision for product campaigns issued |
|
6
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|
|
42 |
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| Payments made during period |
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(143) |
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|
(132) |
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| Amortization of deferred revenue on extended warranty contracts |
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(75) |
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(73) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
10
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(26) |
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Acquisition(1)
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—
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|
95 |
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| Foreign currency translation adjustments and other |
|
7
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(1) |
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| Balance, end of period |
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$ |
2,530
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$ |
2,523 |
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(1) See NOTE 16, "ACQUISITION," to our Condensed Consolidated Financial Statements for additional information.
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We recognized supplier recoveries of $10 million for the three months ended March 31, 2023, compared with $13 million for the comparable period in 2022.
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
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| In millions |
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March 31,
2023 |
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December 31,
2022 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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| Current portion |
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$ |
289
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|
|
$ |
290 |
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Current portion of deferred revenue |
| Long-term portion |
|
742
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|
|
717 |
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Deferred revenue |
| Total |
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$ |
1,031
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|
|
$ |
1,007 |
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| Product warranty |
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| Current portion |
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$ |
746
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|
$ |
726 |
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Current portion of accrued product warranty |
| Long-term portion |
|
753
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|
|
744 |
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Other liabilities |
| Total |
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$ |
1,499
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$ |
1,470 |
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| Total warranty accrual |
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$ |
2,530
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$ |
2,477 |
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