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: | | | | | | | | | | | | | | | | | Three months ended | | | March 31, | | In millions | | 2026 | | 2025 | | Balance at beginning of year | | $ | 2,778 | | | $ | 2,623 | | | Provision for base warranties issued | | 156 | | | 154 | | | Deferred revenue on extended warranty contracts sold | | 104 | | | 124 | | | Provision for product campaigns issued | | 5 | | | 11 | | | Payments made during period | | (201) | | | (168) | | | | | | | | Amortization of deferred revenue on extended warranty contracts | | (80) | | | (71) | | | Changes in estimates for pre-existing product warranties and campaigns | | 10 | | | (2) | | | | | | | | Foreign currency translation adjustments and other | | (1) | | | 8 | | | | | | | | Balance at end of period | | $ | 2,771 | | | $ | 2,679 | | | | | | | | | | | | | | | | | | |
We recognized supplier recoveries of $14 million for the three months ended March 31, 2026, compared with $6 million for the comparable period in 2025. Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: | | | | | | | | | | | | | | | | | | | | | | In millions | | March 31, 2026 | | December 31, 2025 | | Balance Sheet Location | | Deferred revenue related to extended coverage programs | | | | | | | | Current portion | | $ | 303 | | | $ | 303 | | | Current portion of deferred revenue | | Long-term portion | | 919 | | | 895 | | | Deferred revenue | | Total | | $ | 1,222 | | | $ | 1,198 | | | | | | | | | | | | Product warranty | | | | | | | | Current portion | | $ | 638 | | | $ | 693 | | | Current portion of accrued product warranty | | Long-term portion | | 911 | | | 887 | | | Other liabilities | | Total | | $ | 1,549 | | | $ | 1,580 | | | | | | | | | | | | Total warranty accrual | | $ | 2,771 | | | $ | 2,778 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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