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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 |
|
2023 |
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2022 |
| Balance, beginning of year |
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$ |
2,477
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|
|
$ |
2,425 |
|
| Provision for base warranties issued |
|
301
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|
|
267 |
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| Deferred revenue on extended warranty contracts sold |
|
166
|
|
|
145 |
|
| Provision for product campaigns issued |
|
12
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|
|
65 |
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| Payments made during period |
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(283) |
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|
(289) |
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| Amortization of deferred revenue on extended warranty contracts |
|
(152) |
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|
(146) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
22
|
|
|
(47) |
|
| Acquisitions |
|
—
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|
|
97 |
|
| Foreign currency translation adjustments and other |
|
2
|
|
|
9 |
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| Balance, end of period |
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$ |
2,545
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|
|
$ |
2,526 |
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We recognized supplier recoveries of $2 million and $12 million for the three and six months ended June 30, 2023, compared with $10 million and $23 million for the comparable periods in 2022.
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,
2023 |
|
December 31,
2022 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
|
|
|
|
|
|
| Current portion |
|
$ |
285
|
|
|
$ |
290 |
|
|
Current portion of deferred revenue |
| Long-term portion |
|
731
|
|
|
717 |
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Deferred revenue |
| Total |
|
$ |
1,016
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|
|
$ |
1,007 |
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|
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|
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| Product warranty |
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|
|
|
|
|
| Current portion |
|
$ |
751
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|
|
$ |
726 |
|
|
Current portion of accrued product warranty |
| Long-term portion |
|
778
|
|
|
744 |
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Other liabilities |
| Total |
|
$ |
1,529
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|
|
$ |
1,470 |
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| Total warranty accrual |
|
$ |
2,545
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|
|
$ |
2,477 |
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