Accrued Warranties

9 Months Ended

Apr. 01, 2016

Product Warranties Disclosures [Abstract]

Accrued Warranties

Accrued Warranties

Changes in our liability for standard product warranties, which is included as a component of the “Other accrued items” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited), during the three quarters ended April 1, 2016 were as follows:

	(In millions)
Balance at July 3, 2015	$	36
Warranty provision for sales	15
Settlements	(14		)
Other adjustments to warranty liability, including those for foreign currency translation	(2		)
Balance at April 1, 2016	$	35

We also sell extended product warranties and recognize revenue from these arrangements over the warranty period. Costs of warranty services under these arrangements are recognized as incurred. Deferred revenue associated with extended product warranties was $28 million at April 1, 2016 and $36 million at July 3, 2015 and is included as a component of the “Advance payments and unearned income” and “Other long-term liabilities” line items in the accompanying Condensed Consolidated Balance Sheet (Unaudited).