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Guarantees
 12 Months Ended
Dec. 28, 2019
Guarantees [Abstract]  
Guarantees Guarantees
Product Warranties
Activity related to product warranty was as follows (in thousands): 
 
December 28,
2019
 
December 29,
2018
Beginning balance
$
41,021

 
$
30,909

Charges to operations
23,874

 
28,685

Utilization
(25,070
)
 
(18,028
)
Change in estimate(1)
3,523

 
(545
)
Balance at the end of the period
$
43,348

 
$
41,021

(1) 
The Company records product warranty liabilities based on the latest quality and cost information available as of the date the revenue is recorded. The changes in estimate shown here are due to changes in overall actual failure rates, the mix of new versus used units related to replacement of failed units, and changes in the estimated cost of repair. As the Company's products mature over time, failure rates and repair costs generally decline leading to favorable changes in warranty reserves.
Letters of Credit and Bank Guarantees
The Company had $27.9 million of standby letters of credit and bank guarantees outstanding as of December 28, 2019. These consisted of $14.2 million related to customer performance guarantees, $0.4 million of value-added tax and customs' licenses, $5.9 million related to property leases, $6.8 million related to Coriant pre-acquisition restructuring plans, $0.5 million related to credit cards and $0.1 million for other liabilities.
Of the aforementioned standby letters of credit and bank guarantees outstanding, $4.1 million was backed by cash collateral from a third-party institution, and the Company accrues 2.25% annual fee and 0.13% annual fronting fee on the average LOC balances outstanding on the cash collateral.
The Company had $30.0 million of standby letters of credit and bank guarantees outstanding as of December 29, 2018. These consisted of $2.9 million related to property leases, $23.4 million related to customer performance guarantees, $1.4 million related to a value added tax and customs authorities' licenses and $1.8 million related to Coriant pre-acquisition restructuring plans and $0.5 million related to credit cards.
As of December 28, 2019 and December 29, 2018, the Company has a line of credit for approximately $150.0 million and $1.6 million, respectively to support the issuance of letters of credit, of which $4.1 million and zero had been issued and outstanding, respectively. The Company has pledged approximately $180.9 million and $4.9 million of assets of a subsidiary to secure this line of credit and other obligations as of December 28, 2019 and December 29, 2018, respectively.