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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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|
|
Three months ended |
|
|
March 31, |
| In millions |
|
2026 |
|
2025 |
| Balance at beginning of year |
|
$ |
2,778
|
|
|
$ |
2,623 |
|
| Provision for base warranties issued |
|
156
|
|
|
154 |
|
| Deferred revenue on extended warranty contracts sold |
|
104
|
|
|
124 |
|
| Provision for product campaigns issued |
|
5
|
|
|
11 |
|
| Payments made during period |
|
(201) |
|
|
(168) |
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|
|
|
|
|
| Amortization of deferred revenue on extended warranty contracts |
|
(80) |
|
|
(71) |
|
| Changes in estimates for pre-existing product warranties and campaigns |
|
10
|
|
|
(2) |
|
|
|
|
|
|
| Foreign currency translation adjustments and other |
|
(1) |
|
|
8 |
|
|
|
|
|
|
| Balance at end of period |
|
$ |
2,771
|
|
|
$ |
2,679 |
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We recognized supplier recoveries of $14 million for the three months ended March 31, 2026, compared with $6 million for the comparable period in 2025.
Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:
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| In millions |
|
March 31,
2026 |
|
December 31,
2025 |
|
Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
|
|
|
|
|
|
| Current portion |
|
$ |
303
|
|
|
$ |
303 |
|
|
Current portion of deferred revenue |
| Long-term portion |
|
919
|
|
|
895 |
|
|
Deferred revenue |
| Total |
|
$ |
1,222
|
|
|
$ |
1,198 |
|
|
|
|
|
|
|
|
|
|
| Product warranty |
|
|
|
|
|
|
| Current portion |
|
$ |
638
|
|
|
$ |
693 |
|
|
Current portion of accrued product warranty |
| Long-term portion |
|
911
|
|
|
887 |
|
|
Other liabilities |
| Total |
|
$ |
1,549
|
|
|
$ |
1,580 |
|
|
|
|
|
|
|
|
|
|
| Total warranty accrual |
|
$ |
2,771
|
|
|
$ |
2,778 |
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