COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 27, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

For a description of our litigation and contingencies and additional information about our leases, refer to Note 14 and Note 9, respectively, in our 2023 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. During the three and nine-month periods ended September 27, 2024 and September 29, 2023, warranty related activity was immaterial.

Leases

Operating lease costs for the three-month periods ended September 27, 2024 and September 29, 2023 were $12 million and $13 million, respectively. Operating lease costs for both the nine-month periods ended September 27, 2024 and September 29, 2023 were $37 million. During both the nine-month periods ended September 27, 2024 and September 29, 2023, cash paid for operating leases included in operating cash flows was $36 million. Right-of-use (“ROU”) assets obtained in exchange for

operating lease obligations were $30 million and $29 million during the nine-month periods ended September 27, 2024 and September 29, 2023, respectively. Operating lease ROU assets were $174 million and $155 million as of September 27, 2024 and December 31, 2023, respectively. Operating lease liabilities were $181 million and $164 million as of September 27, 2024 and December 31, 2023, respectively. Operating lease ROU assets and operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Other assets, Accrued expenses and other current liabilities, and Other long-term liabilities, respectively.