Warranties, Guarantees, Commitments and Contingencies Warranties Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of goods sold at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates and the allocation of warranty between short and long term are updated based upon the most current warranty claims information available. The following is a summary of changes in the Companys product warranty liability for the years ended December31, 2016 , 2015 and 2014 . Year Ended December 31, (Amounts in millions) 2016 2015 2014 Balance of warranty costs accrued, beginning of period $ 40.9 $ 45.2 $ 51.6 Warranty costs accrued 48.9 24.4 27.1 Warranty claims settled (38.1 ) (24.3 ) (28.0 ) Foreign exchange translation effects (2.4 ) (4.4 ) (5.5 ) Balance of warranty costs accrued, end of period $ 49.3 $ 40.9 $ 45.2 Current liability, included in current portion of warranties $ 32.2 $ 23.1 $ 25.8 Long-term liability, included in other liabilities $ 17.1 $ 17.8 $ 19.4 Warranty costs accrued $ 48.9 $ 24.4 $ 27.1 Less: received and anticipated recoveries from suppliers (27.4 ) $  $ (2.2 ) Warranty costs net of received and anticipated recoveries $ 21.5 $ 24.4 $ 24.9 In the third quarter of 2016, the Company initiated a recall and servi