Schedule II — Valuation and Qualifying Accounts | | | | | | | | | | | | | (In millions) | 2025 | 2024 | 2023 | | Allowance for credit losses on accounts receivable | | | | | Balance at beginning of year | $ | 19 | | $ | 26 | | $ | 24 | | | Provision (reversal) for credit losses | (1) | | (4) | | 7 | | | Deductions from reserves* | (2) | | (3) | | (5) | | | Balance at end of year | $ | 16 | | $ | 19 | | $ | 26 | | | Allowance for credit losses on finance receivables | | | | | Balance at beginning of year | $ | 19 | | $ | 24 | | $ | 24 | | | Reversal for credit losses | (1) | | (14) | | (18) | | | Charge-offs | — | | (1) | | — | | | Recoveries | 1 | | 10 | | 18 | | | Balance at end of year | $ | 19 | | $ | 19 | | $ | 24 | | | Inventory FIFO reserves | | | | | Balance at beginning of year | $ | 432 | | $ | 390 | | $ | 350 | | | Charged to costs and expenses | 26 | | 57 | | 63 | | | Business disposition | (36) | | — | | — | | | Deductions from reserves* | (28) | | (15) | | (23) | | | Balance at end of year | $ | 394 | | $ | 432 | | $ | 390 | |
* Deductions primarily include amounts written off on uncollectible accounts (less recoveries), inventory disposals, changes to prior year estimates and currency translation adjustments.
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