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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 |
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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 |
|
458
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|
|
395 |
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| Deferred revenue on extended warranty contracts sold |
|
244
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|
|
215 |
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| Provision for product campaigns issued |
|
17
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|
132 |
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| Payments made during period |
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(429) |
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|
(476) |
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| Amortization of deferred revenue on extended warranty contracts |
|
(226) |
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|
(220) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
19
|
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|
(80) |
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| Acquisitions |
|
—
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|
144 |
|
| Foreign currency translation adjustments and other |
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(2) |
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19 |
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| Balance, end of period |
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$ |
2,558
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$ |
2,554 |
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We recognized supplier recoveries of $7 million and $19 million for the three and nine months ended September 30, 2023, compared with $10 million and $33 million for the comparable periods 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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September 30,
2023 |
|
December 31,
2022 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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|
|
|
|
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| Current portion |
|
$ |
282
|
|
|
$ |
290 |
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|
Current portion of deferred revenue |
| Long-term portion |
|
739
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|
|
717 |
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Deferred revenue |
| Total |
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$ |
1,021
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|
|
$ |
1,007 |
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| Product warranty |
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|
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| Current portion |
|
$ |
731
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|
|
$ |
726 |
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Current portion of accrued product warranty |
| Long-term portion |
|
806
|
|
|
744 |
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Other liabilities |
| Total |
|
$ |
1,537
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|
|
$ |
1,470 |
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| Total warranty accrual |
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$ |
2,558
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|
$ |
2,477 |
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