Product Warranty

6 Months Ended

Jun. 30, 2014

PRODUCT WARRANTY

The warranty reserve activity for the three and six months ended June 30, 2014 and 2013 consisted of the following (in millions):



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	305.0		$	266.4		$	294.9		$	256.9
Accruals for warranties issued during the period	43.3			66.2			98.9			109.5
Settlements made (in cash or in kind) during the period	(44.7		)	(38.6		)	(90.8		)	(67.1		)
Foreign currency translation	0.3			(0.2		)	0.9			(5.5		)
Balance at June 30	$	303.9		$	293.8		$	303.9		$	293.8

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 $262.6 million and $255.9 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013, respectively. Approximately $41.3 million and $39.0 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013, respectively.