Warranties

Reserves are recorded on the consolidated balance sheet 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 March 31, 2013 and 2012 are summarized as follows:



(in millions)	Three Months Ended March 31, 2013			Three Months Ended March 31, 2012
Balance at January 1,	$	6.6		$	6.5
Settlements made (in cash or in kind)	(1.4		)	(1.6		)
Current year accrual	1.5			2.0
Effect of foreign currency translation	—			—
Balance at March 31,	$	6.7		$	6.9

Warranty expense was $1.5 million and $2.0 million for the three months ended March 31, 2013 and 2012, respectively. At March 31, 2013, $5.9 million was included in current liabilities and $0.8 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.