Warranties

Reserves are recorded on our Consolidated Balance Sheets to reflect our contractual liabilities relating to warranty commitments to customers. Unanticipated quality issues could result in material changes to estimates.

Changes in the carrying amount and accrued product warranty costs are summarized as follows:



	Six Months Ended June 30,
(in millions)	2014			2013
Balance at January 1,	$	13.2		$	6.6
Settlements made (in cash or in kind)	(8.1		)	(3.0		)
Current year accrual	8.6			7.0
Effect of foreign currency translation	0.2			—
Balance at June 30,	$	13.9		$	10.6

Warranty expense was $8.8 million and $7.0 million for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014, $12.6 million was included in current liabilities and $1.3 million was included in non-current liabilities. At December 31, 2013, $11.9 million was included in current liabilities and $1.3 million was included in non-current liabilities.

The increase in this accrual balance at June 30, 2014 compared to June 30, 2013 is primarily due to additional accruals related to the two warranty claims which originated in 2013 at our French and Indian locations. Furthermore, in July 2014, the customer related to the claim at our French location has filed a lawsuit against the Company. See Note 18, "Subsequent Events" for a description of the lawsuit.