Accrued Liabilities, Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Accrued Liabilities, Commitments and Contingencies

Accrued Liabilities

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


	December 31,
	2024		2023
Incentive compensation	$	174	$	47
Payroll and benefits	76		83
Customer rebates	56		40
Unremitted cash collections due to banks on factored accounts receivable	51		112
Current portion of lease liabilities	36		42
Warranty	26		27
Freight and duty	12		10
Exit and restructuring	4		22
Settlement	—		45
Other	68		76
Accrued liabilities	$	503	$	504

Warranties

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


	Year Ended December 31,
Warranty Reserve	2024		2023		2022
Balance at the beginning of the year	$	27	$	26	$	26

Warranty expense	28		29		29
Warranties fulfilled	(29)		(28)		(29)
Balance at the end of the year	$	26	$	27	$	26

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):


2025	$	53
2026	54
2027	31


Thereafter	—
Total	$	138

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, which is included within Current liabilities on the Consolidated Balance Sheets. There was no liability for these purchase commitments as of December 31, 2024 and an $11 million liability as of December 31, 2023.

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.

During the second quarter of 2022, the Company entered into a License and Settlement Agreement (“Settlement”) to resolve certain patent-related litigation. The payment terms under the Settlement consisted of 8 quarterly payments of $45 million that began in the second quarter of 2022. The final quarterly payment was paid in the first quarter of 2024.