v3.26.1
MODERNIZATION
6 Months Ended
Jun. 30, 2026
Modernization [Abstract]  
MODERNIZATION
17. MODERNIZATION
In November 2024, we announced the creation of a Strategic Business Operations office focused on accelerating our growth and driving operating efficiencies in all areas of our business while increasing organizational agility. The Strategic Business Operations office was created to modernize and optimize our processes and systems, including through advanced technology and automation; increase sales efficiency and inventory optimization; and capture significant savings from initiatives related to procurement and corporate overhead.
The following table shows the composition of our Modernization expense.
Three Months EndedSix Months Ended
($ in millions)June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Advisory services
$(1)$22 $(1)$31 
Consulting (implementation)
14 
Transition costs
Technology
Other
— — 
$10 $34 $26 $44 
The following table presents the activity for this accrual on our Balance Sheet related to our Modernization efforts.
($ in millions)
Balance at December 31, 2025
$26 
Modernization expenses
26 
Cash payments(27)
Balance at June 30, 2026
$25 
During the third quarter of 2025, we entered into outsourced service arrangements and completed the transition of a portion of certain corporate overhead functions to outsourced service providers. The arrangements are for terms of five to six years, and are cancellable for convenience by us subject to a termination penalty. As of June 30, 2026, our aggregate expected obligation under these arrangements is $121 million, of which $21 million, $27 million, $26 million, $26 million, $18 million, and $3 million is expected to be paid in the remainder of 2026, 2027, 2028, 2029, 2030, and thereafter, respectively, and the total penalties for early termination are $27 million, if cancelled.