Guarantees

6 Months Ended

Dec. 29, 2023

Indemnification Obligations

The Company from time to time enters into agreements with customers, suppliers, partners and others in the ordinary course of business that provide indemnification for certain matters including, but not limited to, intellectual property infringement claims, environmental claims and breach of agreement claims. The nature of the Company’s indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company’s Condensed Consolidated Financial Statements with respect to these indemnification obligations.

Product Warranty

The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product warranty return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the six months ended December 29, 2023 and December 30, 2022 were as follows:


	For the Six Months Ended
(Dollars in millions)	December 29, 2023		December 30, 2022
Balance, beginning of period	$	168	$	148
Warranties issued	27		27
Repairs and replacements	(40)		(48)
Changes in liability for pre-existing warranties, including expirations	12		26
Balance, end of period	$	167	$	153