Commitments and Contingencies

6 Months Ended

Jul. 02, 2021

Commitments and Contingencies Disclosure [Abstract]

NOTE 11. 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 2020 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, 2020	$	24.9
Accruals for warranties issued during the period	6.7
Settlements made	(6.1)


Balance, July 2, 2021	$	25.5

Leases

Operating lease cost for the three month periods ended July 2, 2021 and June 26, 2020 was $15 million in both respective periods. Operating lease cost for the six month periods ended July 2, 2021 and June 26, 2020 was $30 million in both respective periods. During the six-month periods ended July 2, 2021 and June 26, 2020, cash paid for operating leases included in operating cash flows was $28 million and $27 million, respectively. Right-of-use assets obtained in exchange for operating lease obligations were $13 million and $24 million during the six month periods ended July 2, 2021 and June 26, 2020, respectively.

As of July 2, 2021, we had entered into operating leases for which the lease term had not yet commenced. These operating leases will commence in 2021 with lease terms between 1 and 5 years and have aggregate fixed payments over the non-cancelable lease terms of $2 million.