Accrued Expenses

12 Months Ended

Dec. 31, 2021

Accrued Expenses

Accrued expenses as of December 31, 2021 and 2020 consisted of accruals for the following (in thousands):


	2021		2020
Taxes other than income taxes, primarily value added taxes	$	24,012	$	32,710
Salaries and wages	23,217		34,029
Warranty	11,198		10,991
Professional	8,697		7,375
Rebates	6,569		8,644
Freight	5,460		3,190
Deferred revenue	4,156		3,516
IT service contracts	4,013		3,799
Interest	3,297		2,076
Product liability, current portion	2,362		2,453
Derivatives (foreign currency forward exchange contracts)	1,938		1,432
Insurance	625		878
Severance	400		6,249
Supplemental Executive Retirement Program liability Plan (SERP)	391		391
Rent	196		585
Other items, principally trade accruals	6,440		7,955
Accrued Expenses	$	102,971	$	126,273

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. In addition, the company has sold extended warranties that, while immaterial, require the company to defer the revenue associated with those warranties until earned. The company has established procedures to appropriately defer such revenue. 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 as a product field action and recalls, which could require additional warranty reserve provision.

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. Rebates are netted against gross accounts receivables. If rebates are in excess of such receivables, they are then classified as accrued expenses.

The reduction in accrued salaries and wages from December 31, 2020 to December 31, 2021 is primarily attributable to a reduction in performance bonus accrual.

The reduction in taxes other than income taxes from December 31, 2020 to December 31, 2021 is primarily attributable to payments deferred in 2020 from global pandemic relief programs.

The reduction in accrued severance from December 31, 2020 to December 31, 2021 primarily relates to payments of restructuring costs with respect to the German manufacturing facility consolidation.

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


	2021		2020
Balance as of January 1	$	10,991	$	11,626
Warranties provided during the period	6,361		6,144
Settlements made during the period	(6,718)		(8,043)
Changes in liability for pre-existing warranties during the period, including expirations	564		1,264
Balance as of December 31	$	11,198	$	10,991

Warranty reserves are subject to adjustment in future periods as new developments change the company's estimate of the total cost. In 2020, warranty expense includes a provision of $768,000 for a product recall which was related to a component on a respiratory product, recorded in the North America segment.