XML 25 R15.htm IDEA: XBRL DOCUMENT v3.23.3
Product Warranty
 9 Months Ended
Sep. 30, 2023
Guarantees and Product Warranties [Abstract]  
Product Warranty PRODUCT WARRANTY
    The warranty reserve activity for the three and nine months ended September 30, 2023 and 2022, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Balance at beginning of period$727.2 $589.5 $640.0 $592.5 
Accruals for warranties issued during the period123.9 86.1 321.4 231.3 
Settlements made (in cash or in kind) during the period(94.8)(81.8)(222.7)(189.5)
Foreign currency translation(21.1)(31.9)(3.5)(72.4)
Balance at September 30$735.2 $561.9 $735.2 $561.9 

    The Company’s agricultural equipment products generally are 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 $625.6 million, $546.0 million and $482.1 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively. Approximately $109.6 million, $94.0 million and $79.8 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2023, December 31, 2022, and September 30, 2022, respectively.

    The Company recognizes potential recoveries of the costs associated with warranties it provides when the collection is probable. When specifics of the recovery have been agreed upon with the Company’s suppliers through the confirmation of liability for the recovery, the Company records the recovery within “Accounts and notes receivable, net.” Estimates of the amount of warranty claim recoveries to be received from the Company’s suppliers based upon contractual supplier arrangements are recorded within “Other current assets.”