Product Warranties

12 Months Ended

Dec. 31, 2017

In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects for periods typically ranging from 12 months to 60 months with certain equipment having longer-term warranties. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct certain defects by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect our warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.

Below is a table summarizing the warranty activity for the years ended December 31, 2017 and 2016:



(in millions)	2017			2016
Balance at the beginning of the period	$	36.3		$	40.0
Accruals for warranties issued	33.3			22.1
Settlements made (in cash or in kind)	(34.4		)	(25.1		)
Currency translation impact	0.8			(0.7		)
Balance at the end of the period⁽¹⁾	$	36.0		$	36.3

⁽¹⁾ Long-term warranty liabilities are included in "Other long-term liabilities" and totaled $11.9 million and $8.4 million at December 31, 2017 and 2016, respectively.

The Company also offers extended warranties, which are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the warranty period. Total deferred revenue on warranties included in "Accrued expenses and other current liabilities" and "Other long-term liabilities" in the consolidated balance sheets at December 31, 2017 and 2016 was $6.7 million and $6.1 million, respectively.