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