Schedule II — Valuation and Qualifying Accounts

Schedule II — Valuation and Qualifying Accounts


Description	Balance at Beginning of Period		Charged to Costs and Expenses			Deductions			Balance at End of Period
For the Year Ended December 31, 2023
Allowances deducted from assets
Credit losses	$	857	$	385		$	343	(a)	$	899
Doubtful receivables	93		30			54		(b)	69
Inventories (primarily service part obsolescence)	718		(31)		(c)	—			687
Deferred tax assets	822		36		(d)	12			846
Deferred tax assets for U.S. flow-through operations (e)	3,230		111			—			3,341
Total allowances deducted from assets	$	5,720	$	531		$	409		$	5,842

For the Year Ended December 31, 2024
Allowances deducted from assets
Credit losses	$	899	$	430		$	429	(a)	$	900
Doubtful receivables	69		23			15		(b)	77
Inventories (primarily service part obsolescence)	687		68		(c)	—			755
Deferred tax assets	846		(428)		(d)	11			407
Deferred tax assets for U.S. flow-through operations (e)	3,341		108			—			3,449
Total allowances deducted from assets	$	5,842	$	201		$	455		$	5,588

For the Year Ended December 31, 2025
Allowances deducted from assets
Credit losses	$	900	$	530		$	481	(a)	$	949
Doubtful receivables	77		32			7		(b)	102
Inventories (primarily service part obsolescence)	755		133		(c)	—			888
Deferred tax assets	407		25		(d)	3			429
Deferred tax assets for U.S. flow-through operations (e)	3,449		(3,250)			—			199
Total allowances deducted from assets	$	5,588	$	(2,530)		$	491		$	2,567

(a) Finance receivables deemed to be uncollectible and other changes, principally amounts related to finance receivables sold and translation adjustments.

(b) Accounts receivable deemed to be uncollectible as well as translation adjustments.

(d) Change in valuation allowance on deferred tax assets including translation adjustments.

(e) Deferred tax assets of U.S. flow-through operations no longer requiring a valuation allowance would result in an increase in deferred tax liabilities.