Accrued Liabilities, Commitments and Contingencies

9 Months Ended

Sep. 28, 2024

Commitments and Contingencies Disclosure [Abstract]

Accrued Liabilities, Commitments and Contingencies

Accrued Liabilities, Commitments and Contingencies

Accrued Liabilities

The components of Accrued liabilities are as follows (in millions):

	September 28, 2024		December 31, 2023
Incentive compensation	$	134	$	47
Unremitted cash collections due to banks on factored accounts receivable	77		112
Payroll and benefits	63		83
Customer rebates	50		40
Current portion of lease liabilities	40		42
Warranty	26		27
Interest payable	20		2
Freight and duty	15		10
Exit and restructuring	5		22
Settlement	—		45
Other	60		74
Accrued liabilities	$	490	$	504

Warranties

The following table is a summary of the Company’s accrued warranty obligations (in millions):

	Nine Months Ended
	September 28, 2024		September 30, 2023
Balance at the beginning of the period	$	27	$	26
Warranty expense	19		21
Warranties fulfilled	(20)		(22)
Balance at the end of the period	$	26	$	25

Contingencies

The Company is subject to a variety of investigations, claims, suits, and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort, and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company’s view of these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and the loss can be reasonably estimated.