Accrued Liabilities, Commitments and Contingencies

6 Months Ended

Jun. 28, 2025

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):

	June 28, 2025		December 31, 2024
Incentive compensation	$	78	$	174
Payroll and benefits	76		76
Unremitted cash collections due to banks on factored accounts receivable	58		51
Foreign exchange contracts	57		—
Customer rebates	54		56
Current portion of lease liabilities	36		36
Warranty	27		26
Freight and duty	11		12
Other	72		72
Accrued liabilities	$	469	$	503

Warranties

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

	Six Months Ended
	June 28, 2025		June 29, 2024
Balance at the beginning of the period	$	26	$	27
Warranty expense	18		13
Warranties fulfilled	(17)		(13)
Balance at the end of the period	$	27	$	27

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.