Commitments and Contingencies (Tables)

3 Months Ended

Apr. 01, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Reimbursement Agreement Liabilities

The following table summarizes information concerning the Reimbursement and Tax Matter Agreements’ liabilities:

(in millions)	Reimbursement Agreement		Tax Matters Agreement		Total
Balance as of December 31, 2022	$	614	$	106	$	720
Accruals for liabilities deemed probable and reasonably estimable (1)	41		(2)		39
Payments to Honeywell	(35)		—		(35)
Balance as of April 1, 2023	$	620	$	104	$	724

(1) Reimbursement Agreement liabilities deemed probable and reasonably estimable; however, it is possible we could pay $140 million per year (exclusive of any late payment fees up to 5% per annum) until the earlier of (1) December 31, 2043; or (2) December 31 of the third consecutive year during which the annual reimbursement obligation (including in respect of deferred payment amounts) has been less than $25 million.

Summary of Reimbursement Agreement Liabilities Included in Balance Sheet Accounts

The liabilities related to the Reimbursement and Tax Matters Agreements are included in the following balance sheet accounts:

(in millions)	April 1, 2023		December 31, 2022
Accrued liabilities	$	140	$	140
Obligations payable under Indemnification Agreements	584		580
Total indemnification liabilities	$	724	$	720

Summary of Recorded Obligations for Product Warranties and Product Performance Guarantee

The following table summarizes information concerning recorded obligations for product warranties and product performance guarantees:

	Three Months Ended
(in millions)	April 1, 2023		April 2, 2022
Beginning balance	$	48	$	23
Accruals for warranties/guarantees issued during the year	5		6
Adjustment of pre-existing warranties/guarantees	—		(2)
Settlement of warranty/guarantee claims	(20)		(5)
Reserve of acquired company at date of acquisition	—		8
Ending balance	$	33	$	30