v3.26.1
Accrued Liabilities
 3 Months Ended
Mar. 31, 2026
Accrued Liabilities, Current [Abstract]  
Accrued Liabilities
Note 12. Accrued Liabilities
March 31,
2026		December 31,
2025
(Dollars in millions)
Customer pricing reserve$97 $88 
Compensation, benefit and other employee related76 81 
Repositioning9 6 
Product warranties and performance guarantees - short-term (Note 20)
13 13 
Income and other taxes27 32 
Customer advances and deferred income (1)
20 17 
Accrued interest27 12 
Short-term lease liability (Note 14)
13 13 
Accrued freight11 9 
Designated and undesignated derivatives (Note 17)
13 11 
Environmental reserve2 3 
Other (primarily operating expenses)
14 10 
 322 295 
(1)Customer advances and deferred income include $15 million and $10 million of contract liabilities as of March 31, 2026 and December 31, 2025, respectively. See Note 3, Revenue Recognition and Contracts with Customers.
The Company accrues repositioning costs related to projects to optimize its product costs and right-size our organizational structure. Expenses related to the repositioning accruals are included in Cost of goods sold and Selling, general and administrative expenses in our Consolidated Interim Statements of Operations.
The following tables summarize the activity in our repositioning accrual:
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2025
$6 $— $6 
Charges12 — 12 
Usage—cash(9)— (9)
Balance at March 31, 2026
$9 $— $9 
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2024
$12 $— $12 
Charges7 — 7 
Usage—cash(3)— (3)
Balance at March 31, 2025
$16 $— $16