Annual report pursuant to Section 13 and 15(d)

PRODUCT WARRANTY LIABILITY

v3.25.0.1
PRODUCT WARRANTY LIABILITY
 12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
PRODUCT WARRANTY LIABILITY
NOTE 13. 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:
  December 31,
In millions 2024 2023 2022
Balance at beginning of year $ 2,497  $ 2,477  $ 2,425 
Provision for base warranties issued 641  602  515 
Deferred revenue on extended warranty contracts sold 343  350  287 
Provision for product campaigns issued 65  28  141 
Payments made during period (704) (705) (596)
Amortization of deferred revenue on extended warranty contracts (297) (300) (298)
Changes in estimates for pre-existing product warranties and campaigns 99  37  (128)
Acquisitions (1)
—  —  147 
Foreign currency translation adjustments and other (21) 8  (16)
Balance at end of period $ 2,623  $ 2,497  $ 2,477 
(1) See NOTE 23, "ACQUISITIONS," for additional information.
We recognized supplier recoveries of $54 million, $36 million and $39 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows:
  December 31,  
In millions 2024 2023 Balance Sheet Location
Deferred revenue related to extended coverage programs      
Current portion $ 286  $ 279  Current portion of deferred revenue
Long-term portion 815  774  Deferred revenue
Total $ 1,101  $ 1,053   
Product warranty
Current portion $ 679  $ 667  Current portion of accrued product warranty
Long-term portion 843  777  Other liabilities
Total $ 1,522  $ 1,444 
Total warranty accrual $ 2,623  $ 2,497