Current Liabilities

Accrued expenses as of December 31, 2012 and 2011 consisted of accruals for the following (in thousands):



	2012		2011
Salaries and wages	$	41,813	$	41,508
Taxes other than income taxes, primarily Value Added Taxes	24,600		23,107
Warranty cost	21,451		19,842
Freight	7,853		8,510
Professional	7,595		7,252
Product liability, current portion	3,323		3,468
Rebates	3,635		3,681
Insurance	2,674		2,657
Interest	1,268		1,255
Derivative liability (foreign forward exchange contracts)	1,373		893
Severance	5,211		4,905
Other items, principally trade accruals	14,393		11,615
	$	135,189	$	128,693

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):



	2012			2011
Balance as of January 1	$	19,842		$	18,252
Warranties provided during the period	11,298			11,225
Settlements made during the period	(13,002		)	(12,068		)
Changes in liability for pre-existing warranties during the period, including expirations	3,313			2,433
Balance as of December 31	$	21,451		$	19,842

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