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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 |
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|
March 31, |
| In millions |
|
2024 |
|
2023 |
| Balance at beginning of year |
|
$ |
2,497
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|
|
$ |
2,477 |
|
| Provision for base warranties issued |
|
160
|
|
|
146 |
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| Deferred revenue on extended warranty contracts sold |
|
96
|
|
|
102 |
|
| Provision for product campaigns issued |
|
6
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|
6 |
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| Payments made during period |
|
(176) |
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|
(143) |
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| Amortization of deferred revenue on extended warranty contracts |
|
(77) |
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|
(75) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
51
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|
|
10 |
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|
|
|
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|
| Foreign currency translation adjustments and other |
|
(18) |
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|
7 |
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| Balance at end of period |
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$ |
2,539
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|
$ |
2,530 |
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We recognized supplier recoveries of $22 million for the three months ended March 31, 2024, compared with $10 million for the comparable period in 2023.
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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March 31,
2024 |
|
December 31,
2023 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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|
|
|
|
|
| Current portion |
|
$ |
274
|
|
|
$ |
279 |
|
|
Current portion of deferred revenue |
| Long-term portion |
|
797
|
|
|
774 |
|
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Deferred revenue |
| Total |
|
$ |
1,071
|
|
|
$ |
1,053 |
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|
|
|
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|
|
|
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| Product warranty |
|
|
|
|
|
|
| Current portion |
|
$ |
652
|
|
|
$ |
667 |
|
|
Current portion of accrued product warranty |
| Long-term portion |
|
816
|
|
|
777 |
|
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Other liabilities |
| Total |
|
$ |
1,468
|
|
|
$ |
1,444 |
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| Total warranty accrual |
|
$ |
2,539
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|
|
$ |
2,497 |
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