Accrued Warranties

9 Months Ended

Mar. 31, 2017

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 our Condensed Consolidated Balance Sheet (Unaudited), during the three quarters ended March 31, 2017 were as follows:

	(In millions)
Balance at July 1, 2016	$	32
Warranty provision for sales	11
Settlements	(13		)
Other, including adjustments for foreign currency translation	(3		)
Balance at March 31, 2017	$	27

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 $23 million at March 31, 2017 and $37 million at July 1, 2016 and is included as a component of the “Advance payments and unearned income” and “Other long-term liabilities” line items in our Condensed Consolidated Balance Sheet (Unaudited).