Product Warranty

3 Months Ended

Mar. 31, 2014

PRODUCT WARRANTY

The warranty reserve activity for the three months ended March 31, 2014 and 2013 consisted of the following (in millions):



	Three Months Ended March 31,
	2014			2013
Balance at beginning of period	$	294.9		$	256.9
Accruals for warranties issued during the period	55.6			43.3
Settlements made (in cash or in kind) during the period	(46.1		)	(28.5		)
Foreign currency translation	0.6			(5.3		)
Balance at March 31	$	305.0		$	266.4

The Company’s agricultural equipment products are generally warranted against defects in material and workmanship for a period of one to four years. The Company accrues for future warranty costs at the time of sale based on historical warranty experience. Approximately $265.0 million and $255.9 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013, respectively. Approximately $40.0 million and $39.0 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013, respectively.