Accrued Expenses

Accrued expenses consist of accruals for the following (in thousands):



	March 31, 2017		December 31, 2016
Salaries and wages	$	31,297	$	32,959
Warranty cost	23,226		23,302
Taxes other than income taxes, primarily value added taxes	17,304		19,194
Freight	5,226		5,211
Professional	4,599		4,728
Product liability, current portion	3,286		3,996
Severance	3,030		2,049
Deferred revenue	2,808		1,446
Interest	1,604		3,747
Rent	1,204		672
Derivative liabilities	1,025		1,783
Insurance	956		742
Rebates	609		356
Supplemental Executive Retirement Program liability	391		391
Other items, principally trade accruals	10,650		9,519
Accrued Expenses	$	107,215	$	110,095

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.

Generally, the company's products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sales to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company's warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such product field actions and recalls, which could warrant additional warranty reserve provision.

The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):



Balance as of January 1, 2017	$	23,302
Warranties provided during the period	2,893
Settlements made during the period	(3,177		)
Changes in liability for pre-existing warranties during the period, including expirations	208
Balance as of March 31, 2017	$	23,226