Accrued Liabilities, Commitments and Contingencies

12 Months Ended

Dec. 31, 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):

	December 31,
	2025		2024
Incentive compensation	$	150	$	174
Unremitted cash collections due to banks on factored accounts receivable	84		51
Payroll and benefits	75		76
Customer rebates	63		56
Current portion of lease liabilities	38		36
Current portion of warranty liabilities	28		26
Freight and duty	26		12
Exit and restructuring	23		4
Other	71		68
Accrued liabilities	$	558	$	503

Warranties

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

	Year Ended December 31,
Warranty Reserve	2025		2024		2023
Balance at the beginning of the year	$	26	$	27	$	26
Acquisitions	2		—		—
Warranty expense	39		28		29
Warranties fulfilled	(33)		(29)		(28)
Balance at the end of the year	$	34	$	26	$	27

The current and long-term portions of our warranty obligations, detailed in the table above, are included on the Consolidated Balance Sheets within Accrued liabilities and Other long-term liabilities, respectively.

Commitments

The Company has a limited number of multi-year purchase commitments, primarily related to semiconductors and cloud services, which contain minimum purchase requirements and are non-cancellable. Commitments under these multi-year contracts, which exclude routine purchase orders for goods and services, are as follows (in millions):

2026	$	59
2027	35
2028	3
2029	1
2030	1
Thereafter	2
Total	$	101

We record a liability for non-cancellable purchase commitments for quantities in excess of our forecasted demand consistent with the assessment of net realizable value of our inventory. There was no liability for these purchase commitments as of December 31, 2025 or 2024.

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.