Warranties

Reserves are recorded on our Consolidated Balance Sheets to reflect our contractual liabilities relating to warranty commitments to customers. Historically, estimates of warranty commitments have not differed materially from actual results; however, unanticipated product quality issues could result in material changes to estimates in future periods.

Changes in the carrying amount and accrued product warranty costs for the periods ended June 30, 2013 and 2012 are summarized as follows:



(in millions)	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
Balance at January 1,	$	6.6		$	6.5
Settlements made (in cash or in kind)	(3.0		)	(3.1		)
Current year accrual	7.0			3.4
Effect of foreign currency translation	—			(0.1		)
Balance at June 30,	$	10.6		$	6.7

Warranty expense was $7.0 million and $3.3 million for the six months ended June 30, 2013 and 2012, respectively. At June 30, 2013, $9.4 million was included in current liabilities and $1.2 million was included in non-current liabilities. At December 31, 2012, $5.8 million was included in current liabilities and $0.8 million was included in non-current liabilities. Approximately $3.3 million of the increase in the accrual is due to a new warranty claim in India.