Annual report [Section 13 and 15(d), not S-K Item 405]

PRODUCT WARRANTY LIABILITY (Tables)

v3.25.4
PRODUCT WARRANTY LIABILITY (Tables)
 12 Months Ended
Dec. 31, 2025
Product Warranties Disclosures [Abstract]  
Summary of activity in the product warranty account
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 2025 2024 2023
Balance at beginning of year $ 2,623  $ 2,497  $ 2,477 
Provision for base warranties issued 632  641  602 
Deferred revenue on extended warranty contracts sold 390  343  350 
Provision for product campaigns issued 44  65  28 
Payments made during period (730) (704) (705)
Amortization of deferred revenue on extended warranty contracts (296) (297) (300)
Changes in estimates for pre-existing product warranties and campaigns 120  99  37 
Foreign currency translation adjustments and other (5) (21) 8 
Balance at end of period $ 2,778  $ 2,623  $ 2,497 
Deferred Revenue Extended Coverage and Base Warranty Liability, Disclosure
Warranty related deferred revenues and warranty liabilities on our Consolidated Balance Sheets were as follows:
  December 31,  
In millions 2025 2024 Balance Sheet Location
Deferred revenue related to extended coverage programs      
Current portion $ 303  $ 286  Current portion of deferred revenue
Long-term portion 895  815  Deferred revenue
Total $ 1,198  $ 1,101   
Product warranty
Current portion $ 693  $ 679  Current portion of accrued product warranty
Long-term portion 887  843  Other liabilities
Total $ 1,580  $ 1,522 
Total warranty accrual $ 2,778  $ 2,623