v3.26.1
PRODUCT WARRANTY LIABILITY
6 Months Ended
Jun. 30, 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:
Six months ended
June 30,
In millions20262025
Balance at beginning of year$2,778 $2,623 
Provision for base warranties issued337 316 
Deferred revenue on extended warranty contracts sold195 213 
Provision for product campaigns issued33 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 campaigns36 30 
Foreign currency translation adjustments and other1 (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 millionsJune 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 portion930 895 Deferred revenue
Total$1,235 $1,198 
Product warranty
Current portion$658 $693 Current portion of accrued product warranty
Long-term portion943 887 Other liabilities
Total$1,601 $1,580 
Total warranty accrual$2,836 $2,778