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Accrued Liabilities, Commitments and Contingencies
 6 Months Ended
Jul. 01, 2023
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):
July 1,
2023		December 31,
2022
Settlement$135 $180 
Unremitted cash collections due to banks on factored accounts receivable103 130 
Payroll and benefits88 90 
Customer rebates42 55 
Leases39 37 
Incentive compensation29 100 
Warranty25 26 
Foreign exchange contracts15 19 
Short-term interest rate swaps14 — 
Freight and duty12 19 
Other81 88 
Accrued liabilities$583 $744 
Warranties
The following table is a summary of the Company’s accrued warranty obligations (in millions):
 Six Months Ended
 July 1,
2023		July 2,
2022
Balance at the beginning of the period$26 $26 
Warranty expense13 15 
Warranties fulfilled(14)(15)
Balance at the end of the period$25 $26 

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 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 consist of 8 quarterly payments of $45 million that began in the second quarter of 2022. The remaining 3 quarterly amounts will be paid by the first quarter of 2024 and are included within Accrued liabilities on the Consolidated Balance Sheets.