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: | | | | | | | | | | | | | | | | | Six months ended | | | June 30, | | In millions | | 2026 | | 2025 | | Balance at beginning of year | | $ | 2,778 | | | $ | 2,623 | | | Provision for base warranties issued | | 337 | | | 316 | | | Deferred revenue on extended warranty contracts sold | | 195 | | | 213 | | | Provision for product campaigns issued | | 33 | | | 20 | | | Payments made during period | | (386) | | | (358) | | | | | | | | Amortization of deferred revenue on extended warranty contracts | | (158) | | | (144) | | | Changes in estimates for pre-existing product warranties and campaigns | | 36 | | | 30 | | | | | | | | Foreign currency translation adjustments and other | | 1 | | | (7) | | | | | | | | Balance at end of period | | $ | 2,836 | | | $ | 2,693 | | | | | | | | | | | | | | | | | | |
We recognized supplier recoveries of $4 million and $18 million for the three and six months ended June 30, 2026, compared with $13 million and $19 million for the comparable periods in 2025. Warranty related deferred revenues and warranty liabilities on our Condensed Consolidated Balance Sheets were as follows: | | | | | | | | | | | | | | | | | | | | | | In millions | | June 30, 2026 | | December 31, 2025 | | Balance Sheet Location | | Deferred revenue related to extended coverage programs | | | | | | | | Current portion | | $ | 305 | | | $ | 303 | | | Current portion of deferred revenue | | Long-term portion | | 930 | | | 895 | | | Deferred revenue | | Total | | $ | 1,235 | | | $ | 1,198 | | | | | | | | | | | | Product warranty | | | | | | | | Current portion | | $ | 658 | | | $ | 693 | | | Current portion of accrued product warranty | | Long-term portion | | 943 | | | 887 | | | Other liabilities | | Total | | $ | 1,601 | | | $ | 1,580 | | | | | | | | | | | | Total warranty accrual | | $ | 2,836 | | | $ | 2,778 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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