The reconciliation of the change in our product warranty liability balances for the years ended December 31, was as follows:


(Millions of dollars)	2024		2023
Warranty liability, beginning of period	$	1,894	$	1,761
Reduction in liability (payments)	(824)		(835)
Increase in liability (new warranties)	630		968
Warranty liability, end of period	$	1,700	$	1,894