Commitments and Contingencies

6 Months Ended

Jun. 26, 2020

Commitments and Contingencies Disclosure [Abstract]

NOTE 10. COMMITMENTS AND CONTINGENCIES

For a description of our litigation and contingencies and additional information about our leases, refer to Note 16 and Note 10, respectively in our 2019 Annual Report on Form 10-K.

Warranty

We generally accrue estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained. Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known.

The following is a rollforward of our accrued warranty liability ($ in millions):


Balance, December 31, 2019	$	79.0
Accruals for warranties issued during the period	25.0
Settlements made	(29.6)
Additions due to acquisitions	0.2
Effect of foreign currency translation	(0.6)
Balance, June 26, 2020	$	74.0

Leases

Operating lease cost was $20 million for each of the three month periods ended June 26, 2020 and June 28, 2019, respectively. For the six month periods ended June 26, 2020 and June 28, 2019, operating lease cost was $41 million and $38 million, respectively. During the six-month periods ended June 26, 2020 and June 28, 2019, cash paid for operating leases included in operating cash flows was $36 million and $32 million, respectively. Right-of-use assets obtained in exchange for operating lease obligations were $27 million and $44 million during the six month periods ended June 26, 2020 and June 28, 2019, respectively.

As of June 26, 2020, we had entered into operating leases for which the lease had not yet commenced. These operating leases will commence in 2020 with lease terms between 1 and 15 years and have aggregate fixed payments of the non-cancelable lease terms of $22 million.