Veralto VLTO Standard Product Warranty Accrual

The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly and appropriately maintained. Warranty periods depend on the nature of the product and range from the date of such sale up to twenty years. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor and in certain instances estimated property damage. As of July 3, 2026 and December 31, 2025, the Company had accrued warranty liabilities of $29 million and $30 million as of the end of each period, respectively.