Current Liabilities

Accrued expenses as of December 31, 2011 and 2010 consisted of accruals for the following (in thousands):



	2011		2010
Salaries and wages	$	42,174	$	46,658
Taxes other than income taxes, primarily Value Added Taxes	23,007		19,981
Warranty cost	19,842		18,252
Freight	11,087		11,189
Professional	7,252		7,333
Product liability, current portion	3,468		4,134
Rebates	3,681		3,320
Insurance	2,657		2,393
Interest	1,255		2,273
Derivative liability (foreign forward exchange contracts)	893		1,929
Severance	5,158		524
Other items, principally trade accruals	12,121		12,093
	$	132,595	$	130,079

Accrued rebates relate to several volume incentive programs the company offers its customers. The company accounts for these rebates as a reduction of revenue when the products are sold in accordance with the guidance in ASC 605-50, Customer Payments and Incentives.

Changes in accrued warranty costs were as follows (in thousands):



	2011			2010
Balance as of January 1	$	18,252		$	21,506
Warranties provided during the period	11,225			5,996
Settlements made during the period	(12,068		)	(9,681		)
Changes in liability for pre-existing warranties during the period, including expirations	2,433			431
Balance as of December 31	$	19,842		$	18,252

The increase in the liability for pre-existing warranties in 2011, as shown above, is the result of product recalls.