12. WARRANTIES AND CONTINGENCIES Warranties We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product shipments. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time products are sold. The standard warranty accrual balances are held in other accrued and other long-term liabilities on our condensed consolidated balance sheet. Our standard warranty terms typically extend between one and three years from the date of delivery, depending on the product. A summary of the standard warranty accrual activity is shown in the table below: Six Months Ended April 30, 2014 2013 (in millions) Beginning balance as of November 1 $ 69 $ 60 Accruals for warranties including change in estimate 43 45 Settlements made during the period (38 ) (43 ) Ending balance as of April 30 $ 74 $ 62 Accruals for warranties due within one year $ 52 $ 50 Accruals for warranties due after one year 22 12 Ending balance as of April 30 $ 74 $ 62 Contingencies We are involved in lawsuits, claims, investigations and proceedings, including patent, commercial and environmental matters. There are no matters pending that we currently believe are probable of having a material impact to our business, consolidated financial condition, results of operations or cash flows. On March 4, 2013, we made a report to the Inspector General of the Department of Defense ( DOD IG ) regarding pricing irregularities relating to certain sales of electronic measurement products to U.S. government agencies. We have conducted a thorough investigation with the help of external counsel, and we have approached the DOD IG with a proposed methodology for resolving possible overcharges to U.S. government purchasers resulting from these sales. Based on our investigation and our interactions with the DOD IG, we do not believe that this matter is reasonably possible of having a material impact on Agilent'