Product Warranty

6 Months Ended

Jun. 30, 2011

8.	PRODUCT WARRANTY

The warranty reserve activity for the three and six months ended June 30, 2011 and 2010 consisted of the following (in millions):


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Balance at beginning of period	$	218.2		$	174.9		$	199.5		$	181.6
Acquisitions								2.6
Accruals for warranties issued during the period		55.3			39.1			93.6			69.1
Settlements made (in cash or in kind) during the period		(39.4	)		(25.8	)		(69.4	)		(55.5	)
Foreign currency translation		3.4			(10.3	)		11.2			(17.3	)

Balance at June 30	$	237.5		$	177.9		$	237.5		$	177.9

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 $211.2 million and $179.0 million of warranty reserves are included in "Accrued expenses" in the Company's Condensed Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010, respectively. Approximately $26.3 million and $20.5 million of warranty reserves are included in "Other noncurrent liabilities" in the Company's Condensed Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010, respectively.