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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 |
|
2024 |
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2023 |
| Balance at beginning of year |
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$ |
2,497
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|
|
$ |
2,477 |
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| Provision for base warranties issued |
|
331
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|
|
301 |
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| Deferred revenue on extended warranty contracts sold |
|
180
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|
|
166 |
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| Provision for product campaigns issued |
|
23
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12 |
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| Payments made during period |
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(360) |
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|
(283) |
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| Amortization of deferred revenue on extended warranty contracts |
|
(148) |
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|
(152) |
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| Changes in estimates for pre-existing product warranties and campaigns |
|
98
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|
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22 |
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|
| Foreign currency translation adjustments and other |
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(18) |
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2 |
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| Balance at end of period |
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$ |
2,603
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|
$ |
2,545 |
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We recognized supplier recoveries of $12 million and $34 million for the three and six months ended June 30, 2024, compared with $2 million and $12 million for the comparable periods 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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June 30,
2024 |
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December 31,
2023 |
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Balance Sheet Location |
| Deferred revenue related to extended coverage programs |
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|
|
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|
|
| Current portion |
|
$ |
277
|
|
|
$ |
279 |
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|
Current portion of deferred revenue |
| Long-term portion |
|
809
|
|
|
774 |
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Deferred revenue |
| Total |
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$ |
1,086
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|
|
$ |
1,053 |
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| Product warranty |
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|
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|
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| Current portion |
|
$ |
660
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|
|
$ |
667 |
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Current portion of accrued product warranty |
| Long-term portion |
|
857
|
|
|
777 |
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Other liabilities |
| Total |
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$ |
1,517
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|
$ |
1,444 |
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| Total warranty accrual |
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$ |
2,603
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|
|
$ |
2,497 |
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