Warranties

We provide for the estimated costs that may be incurred under product warranties to remedy deficiencies of quality or performance of our products. These product warranties extend over either a specified period of time, units of production or machine hours, depending on the product subject to the warranty. We accrue a provision for estimated future warranty costs based on the historical relationship of warranty costs to sales. We periodically review the adequacy of the accrual for product warranties and adjust the warranty percentage and accrued warranty reserve for actual experience as necessary.

The following table reconciles the changes in the product warranty reserve:



	Quarter ended
(in thousands)	January 25, 2013			January 27, 2012
Balance, beginning of period	$	100,646		$	82,737
Accrual for warranty expensed during the period	12,479			11,355
Settlements made during the period	(25,252		)	(8,306		)
Effect of foreign currency translation	(446		)	(617		)
Adjusted acquired warranty accrual	—			16,647
Balance, end of period	$	87,427		$	101,816

An adjustment was made in the first quarter of fiscal 2012 to reflect a change in the liability of $10.0 million for pre-existing warranties related to the mining equipment business of LeTourneau Technologies, Inc., which was acquired in fiscal 2011.