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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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Six months ended |
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|
June 30, |
| In millions |
|
2025 |
|
2024 |
| Balance at beginning of year |
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$ |
2,623
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|
|
$ |
2,497 |
|
| Provision for base warranties issued |
|
316
|
|
|
331 |
|
| Deferred revenue on extended warranty contracts sold |
|
213
|
|
|
180 |
|
| Provision for product campaigns issued |
|
20
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|
|
23 |
|
| Payments made during period |
|
(358) |
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|
(360) |
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|
|
|
| Amortization of deferred revenue on extended warranty contracts |
|
(144) |
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|
(148) |
|
| Changes in estimates for pre-existing product warranties and campaigns |
|
30
|
|
|
98 |
|
|
|
|
|
|
| Foreign currency translation adjustments and other |
|
(7) |
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|
(18) |
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| Balance at end of period |
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$ |
2,693
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|
|
$ |
2,603 |
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We recognized supplier recoveries of $13 million and $19 million for the three and six months ended June 30, 2025, compared with $12 million and $34 million for the comparable periods 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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June 30,
2025 |
|
December 31,
2024 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
|
|
|
|
|
|
| Current portion |
|
$ |
293
|
|
|
$ |
286 |
|
|
Current portion of deferred revenue |
| Long-term portion |
|
878
|
|
|
815 |
|
|
Deferred revenue |
| Total |
|
$ |
1,171
|
|
|
$ |
1,101 |
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|
|
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|
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|
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| Product warranty |
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|
|
|
|
|
| Current portion |
|
$ |
657
|
|
|
$ |
679 |
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|
Current portion of accrued product warranty |
| Long-term portion |
|
865
|
|
|
843 |
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Other liabilities |
| Total |
|
$ |
1,522
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|
|
$ |
1,522 |
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| Total warranty accrual |
|
$ |
2,693
|
|
|
$ |
2,623 |
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