Quarterly report [Sections 13 or 15(d)]

PRODUCT WARRANTY LIABILITY

v3.25.1
PRODUCT WARRANTY LIABILITY
3 Months Ended
Mar. 31, 2025
Product Warranties Disclosures [Abstract]  
PRODUCT WARRANTY LIABILITY
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:
Three months ended
March 31,
In millions 2025 2024
Balance at beginning of year $ 2,623  $ 2,497 
Provision for base warranties issued 154  160 
Deferred revenue on extended warranty contracts sold 124  96 
Provision for product campaigns issued 11 
Payments made during period (168) (176)
Amortization of deferred revenue on extended warranty contracts (71) (77)
Changes in estimates for pre-existing product warranties and campaigns (2) 51 
Foreign currency translation adjustments and other 8  (18)
Balance at end of period $ 2,679  $ 2,539 
We recognized supplier recoveries of $6 million for the three months ended March 31, 2025, compared with $22 million for the comparable period in 2024.
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
In millions March 31,
2025
December 31,
2024
Balance Sheet Location
Deferred revenue related to extended coverage programs    
Current portion $ 290  $ 286  Current portion of deferred revenue
Long-term portion 865  815  Deferred revenue
Total $ 1,155  $ 1,101   
Product warranty    
Current portion $ 685  $ 679  Current portion of accrued product warranty
Long-term portion 839  843  Other liabilities
Total $ 1,524  $ 1,522   
Total warranty accrual $ 2,679  $ 2,623