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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 |
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2026 |
|
2025 |
| Balance at beginning of year |
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$ |
2,778
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|
|
$ |
2,623 |
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| Provision for base warranties issued |
|
337
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|
|
316 |
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| Deferred revenue on extended warranty contracts sold |
|
195
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|
|
213 |
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| Provision for product campaigns issued |
|
33
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|
|
20 |
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| Payments made during period |
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(386) |
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|
(358) |
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| Amortization of deferred revenue on extended warranty contracts |
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(158) |
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|
(144) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
36
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|
|
30 |
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|
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|
| Foreign currency translation adjustments and other |
|
1
|
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(7) |
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| Balance at end of period |
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$ |
2,836
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|
$ |
2,693 |
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We recognized supplier recoveries of $4 million and $18 million for the three and six months ended June 30, 2026, compared with $13 million and $19 million for the comparable periods in 2025.
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,
2026 |
|
December 31,
2025 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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|
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|
|
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| Current portion |
|
$ |
305
|
|
|
$ |
303 |
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|
Current portion of deferred revenue |
| Long-term portion |
|
930
|
|
|
895 |
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Deferred revenue |
| Total |
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$ |
1,235
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|
|
$ |
1,198 |
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| Product warranty |
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| Current portion |
|
$ |
658
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|
|
$ |
693 |
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Current portion of accrued product warranty |
| Long-term portion |
|
943
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|
|
887 |
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Other liabilities |
| Total |
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$ |
1,601
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|
|
$ |
1,580 |
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| Total warranty accrual |
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$ |
2,836
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|
$ |
2,778 |
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