Product Warranty

6 Months Ended

Jun. 30, 2022

Guarantees and Product Warranties [Abstract]

PRODUCT WARRANTY

The warranty reserve activity for the three and six months ended June 30, 2022 and 2021, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Balance at beginning of period	$	614.5	$	542.0	$	592.5	$	521.8

Accruals for warranties issued during the period	61.9		76.8		145.2		170.1
Settlements made (in cash or in kind) during the period	(50.0)		(47.4)		(107.7)		(102.7)
Foreign currency translation	(36.9)		7.9		(40.5)		(9.9)
Balance at June 30	$	589.5	$	579.3	$	589.5	$	579.3

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 $499.8 million, $492.7 million and $482.2 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Approximately $89.7 million, $99.8 million and $97.1 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2022, December 31, 2021, and June 30, 2021, respectively.

The Company recognizes 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.”