In the ordinary course of business, the Company provides standby letters of credit or other guarantee instruments to third parties as required for certain transactions. The Company has not recorded any liability in connection with these guarantee agreements since it is not probable that any amounts will be required to be paid under these guarantee agreements.

The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally provides warranty on 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 three months ended October 2, 2026 and October 3, 2025 were as follows:


	For the Three Months Ended
(Dollars in millions)	October 2, 2026		October 3, 2025
Balance, beginning of period	$	198	$	137
Warranties issued	36		22
Repairs and replacements	(17)		(18)
Changes in liability for pre-existing warranties, including expirations	1		5
Balance, end of period	$	218	$	146