Warranties

Reserves are recorded on the consolidated balance sheet to reflect our contractual liabilities relating to warranty commitments to customers.

Changes in accrued product warranty costs for the periods ended September 30, 2012 and 2011 are summarized as follows:



(In Millions)	Nine Months Ended September 30, 2012			Nine Months Ended September 30, 2011
Balance at January 1,	$	6.5		$	5.9
Settlements made (in cash or in kind)	(4.6		)	(4.1		)
Current year accrual	5.0			4.9
Effect of foreign currency translation	0.0			(0.1		)
Balance at September 30,	$	6.9		$	6.6

Warranty expense was $5.0 million and $4.8 million for the nine months ended September 30, 2012 and 2011, respectively. At September 30, 2012, $6.1 million was included in current liabilities and $0.8 million was included in non-current liabilities. At December 31, 2011, $5.7 million was included in current liabilities and $0.8 million was included in non-current liabilities.