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 for the years ended December 31, 2014, 2013 and 2012 are summarized as follows:



(in millions)
Balance at January 1, 2012	$	6.5
Settlements made (in cash or in kind)	(6.3		)
Current year accrual	6.5
Effect of foreign currency translation	(0.1		)
Balance at December 31, 2012	$	6.6
Settlements made (in cash or in kind)	(7.9		)
Current year accrual	14.8
Effect of foreign currency translation	(0.3		)
Balance at December 31, 2013	$	13.2
Settlements made(in cash or in kind)	(13.7		)
Current year accrual	11.4
Effect of foreign currency translation	(0.2		)
Balance at December 31, 2014	$	10.7

Warranty expense was $11.4 million, $14.5 million and $6.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014, $9.6 million was included in current liabilities and $1.1 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 is primarily due to additional accruals related to 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 16, "Commitments and Contingencies" for a description of the lawsuit.