Product Warranty

3 Months Ended

Mar. 31, 2015

PRODUCT WARRANTY

The warranty reserve activity for the three months ended March 31, 2015 and 2014 consisted of the following (in millions):



	Three Months Ended March 31,
	2015			2014
Balance at beginning of period	$	284.6		$	294.9
Accruals for warranties issued during the period	34.0			55.6
Settlements made (in cash or in kind) during the period	(44.9		)	(46.1		)
Foreign currency translation	(20.8		)	0.6
Balance at March 31	$	252.9		$	305.0

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 $217.0 million and $245.7 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014, respectively. Approximately $35.9 million and $38.9 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014, respectively.