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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 |
|
2024 |
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2023 |
| Balance at beginning of year |
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$ |
2,497
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|
|
$ |
2,477 |
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| Provision for base warranties issued |
|
490
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|
|
458 |
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| Deferred revenue on extended warranty contracts sold |
|
263
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|
|
244 |
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| Provision for product campaigns issued |
|
48
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17 |
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| Payments made during period |
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(533) |
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|
(429) |
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| Amortization of deferred revenue on extended warranty contracts |
|
(222) |
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(226) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
94
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19 |
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| Foreign currency translation adjustments and other |
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(7) |
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(2) |
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| Balance at end of period |
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$ |
2,630
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$ |
2,558 |
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We recognized supplier recoveries of $4 million and $38 million for the three and nine months ended September 30, 2024, compared with $7 million and $19 million for the comparable periods in 2023.
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
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| In millions |
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September 30,
2024 |
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December 31,
2023 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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|
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| Current portion |
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$ |
287
|
|
|
$ |
279 |
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|
Current portion of deferred revenue |
| Long-term portion |
|
811
|
|
|
774 |
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Deferred revenue |
| Total |
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$ |
1,098
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|
|
$ |
1,053 |
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| Product warranty |
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| Current portion |
|
$ |
685
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|
|
$ |
667 |
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Current portion of accrued product warranty |
| Long-term portion |
|
847
|
|
|
777 |
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Other liabilities |
| Total |
|
$ |
1,532
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$ |
1,444 |
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| Total warranty accrual |
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$ |
2,630
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|
|
$ |
2,497 |
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