Current Liabilities

The components of total Accrued and other current liabilities are as follows:


(in millions)	September 30, 2026		December 31, 2025
Compensation and other employee-benefits	$	303	$	371
Customer-related liabilities	400		370
Accrued taxes	227		207
Lease liabilities	131		121
Accrued warranty costs	44		43
Accrued commissions	41		40
Accrued restructuring liabilities	23		34
Other accrued liabilities	88		51
Total accrued and other current liabilities	$	1,257	$	1,237

The Company facilitates the opportunity for suppliers to participate in voluntary supply chain financing programs with third-party financial institutions. Xylem agrees on commercial terms, including payment terms, with suppliers regardless of program participation. The Company does not determine the terms or conditions of the arrangement between suppliers and the third-party financial institutions. Participating suppliers are paid directly by the third-party financial institution. Xylem pays the third-party financial institution the stated amount of confirmed invoices from its designated suppliers at the original invoice amount on the original maturity dates of the invoices, ranging from 45-180 days. Xylem does not pay fees related to these programs. Xylem or the third-party financial institutions may terminate the agreements upon at least 30 days notice. The total outstanding balance presented within "Accounts payable" on our Condensed Consolidated Balance Sheets under these programs is $250 million and $244 million as of September 30, 2026 and December 31, 2025, respectively.

The table below provides changes in the confirmed obligations outstanding related to our supplier financing programs over the nine months ended September 30, 2026:


(in millions)	2026
Confirmed obligations outstanding – January 1	$	244
Invoices confirmed	734
Confirmed invoices paid	(726)
Foreign currency and other	(2)
Confirmed obligations outstanding – September 30	$	250