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Accrued Liabilities, Commitments and Contingencies | 6 Months Ended
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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.

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