v3.26.1
PRODUCT WARRANTY LIABILITY
3 Months Ended
Mar. 31, 2026
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:
Three months ended
March 31,
In millions20262025
Balance at beginning of year$2,778 $2,623 
Provision for base warranties issued156 154 
Deferred revenue on extended warranty contracts sold104 124 
Provision for product campaigns issued5 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 campaigns10 (2)
Foreign currency translation adjustments and other(1)
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 millionsMarch 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 portion919 895 Deferred revenue
Total$1,222 $1,198  
Product warranty  
Current portion$638 $693 Current portion of accrued product warranty
Long-term portion911 887 Other liabilities
Total$1,549 $1,580  
Total warranty accrual$2,771 $2,778