PRODUCT WARRANTY LIABILITY

9 Months Ended

Sep. 30, 2024

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY LIABILITY

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:

	Nine months ended
	September 30,
In millions	2024		2023
Balance at beginning of year	$	2,497	$	2,477
Provision for base warranties issued	490		458
Deferred revenue on extended warranty contracts sold	263		244
Provision for product campaigns issued	48		17
Payments made during period	(533)		(429)
Amortization of deferred revenue on extended warranty contracts	(222)		(226)
Changes in estimates for pre-existing product warranties and campaigns	94		19
Foreign currency translation adjustments and other	(7)		(2)
Balance at end of period	$	2,630	$	2,558

We recognized supplier recoveries of $4 million and $38 million for the three and nine months ended September 30, 2024, compared with $7 million and $19 million for the comparable periods in 2023.

Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows:

In millions	September 30, 2024		December 31, 2023		Balance Sheet Location
Deferred revenue related to extended coverage programs
Current portion	$	287	$	279	Current portion of deferred revenue
Long-term portion	811		774		Deferred revenue
Total	$	1,098	$	1,053
Product warranty
Current portion	$	685	$	667	Current portion of accrued product warranty
Long-term portion	847		777		Other liabilities
Total	$	1,532	$	1,444
Total warranty accrual	$	2,630	$	2,497