NOTE 7. 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 June 30, 2011 and 2010 are summarized as follows:


	Six Months			Six Months
	Ended			Ended
(In Millions)	June 30, 2011			June 30, 2010
Balance at January 1,	$	5.9		$	5.1
Settlements made (in cash or in kind)		(2.5	)		(2.3	)
Current year accrual		3.1			2.6
Adjustments to preexisting warranties		—			0.1
Effect of foreign currency translation		0.1			(0.1	)


Balance at June 30,	$	6.6		$	5.4

Warranty expense was $3.2 million and $2.6 million for the six months ended June 30, 2011 and 2010, respectively. At June 30, 2011, $5.9 million was included in current liabilities and $0.7 million was included in non-current liabilities. At December 31, 2010, $5.3 million was included in current liabilities and $0.6 million was included in non-current liabilities.