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 years ended December 31, 2013, 2012 and 2011 are summarized as follows:



(in millions)
Balance at January 1, 2011	$	5.9
Settlements of warranty claims (in cash or in kind)	(5.6		)
Current year accruals for warranties	6.5
Effect of foreign currency translation	(0.3		)
Balance at December 31, 2011	$	6.5
Settlements of warranty claims (in cash or in kind)	(6.3		)
Current year accruals for warranties	6.5
Effect of foreign currency translation	(0.1		)
Balance at December 31, 2012	$	6.6
Settlements of warranty claims (in cash or in kind)	(7.9		)
Current year accruals for warranties	14.8
Effect of foreign currency translation	(0.3		)
Balance at December 31, 2013	$	13.2

Warranty expense was $14.5 million, $6.4 million and $6.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013, $11.9 million was included in current liabilities and $1.3 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.

The increase in this accrual is primarily due to two warranty claims. At December 31, 2013 approximately $2.7 million of the increase in the 'Current year accrual' is due to a warranty issues in Europe and $5.6 million of the increase is due to a warranty issue in India. Settlements made of $7.9 million are net of the expected value of anticipated returned compressors associated with the warranty claim in India.