Product Warranty

6 Months Ended

Jun. 30, 2015

PRODUCT WARRANTY

The warranty reserve activity for the three and six months ended June 30, 2015 and 2014 consisted of the following (in millions):



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Balance at beginning of period	$	252.9		$	305.0		$	284.6		$	294.9
Accruals for warranties issued during the period	43.3			43.3			77.3			98.9
Settlements made (in cash or in kind) during the period	(42.2		)	(44.7		)	(87.1		)	(90.8		)
Foreign currency translation	7.3			0.3			(13.5		)	0.9
Balance at June 30	$	261.3		$	303.9		$	261.3		$	303.9

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 $221.8 million and $245.7 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, respectively. Approximately $39.5 million and $38.9 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, respectively.