Warranties

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

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



	Nine Months Ended September 30,
(in millions)	2014			2013
Balance at January 1,	$	13.2		$	6.6
Settlements made (in cash or in kind)	(11.1		)	(5.7		)
Current year accrual	10.4			9.9
Effect of foreign currency translation	(0.4		)	(0.2		)
Balance at September 30,	$	12.1		$	10.6

Warranty expense was $10.4 million and $9.7 million for the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014, $10.8 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 September 30, 2014 compared to September 30, 2013 is primarily due to additional accruals related to the two warranty claims which originated in 2013 at our French and Indian locations. In July 2014, the customer related to the claim at our French location has filed a lawsuit against the Company. See Note 16, "Commitments and Contingencies" for a description of the lawsuit.