Product-Related Liabilities

6 Months Ended

Jun. 30, 2024

Product Warranties Disclosures [Abstract]

7. PRODUCT-RELATED LIABILITIES

The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability, and warranty issues. For further explanation, see Note 9. Contingent Liabilities below.

For the three months period ended June 30, 2024, cash payments mainly relate to warranty related issues. For the six months period ended June 30, 2024, provision reversals and cash payments primarily relate to recall related issues. For the three and six months periods ended June 30, 2023, provisions and cash payments primarily related to warranty related issues. As of June 30, 2024, the reserve for product related liabilities mainly relates to recall related issues.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product related liabilities is included in accrued expenses and other non-current liabilities on the Condensed Consolidated Balance Sheets. A majority of the Company’s product-related liabilities as of June 30, 2024 are covered by insurance. Insurance receivables are included within other current assets and other non-current assets on the Condensed Consolidated Balance Sheets. As of June 30, 2024, the Company had total insurance receivables of $57 million.


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Reserve at beginning of the period	$	78		$	141		$	96		$	145
Change in reserve		(1	)		42			(8	)		43
Cash payments		(4	)		(4	)		(14	)		(9	)
Translation difference		(0	)		(0	)		(1	)		(0	)
Reserve at end of the period	$	73		$	178		$	73		$	178