Accrued Expenses

Accrued expenses consist of (table in thousands):



	June 30, 2012		December 31, 2011
Salaries and benefits	$	886,315	$	961,587
Product warranties	262,059		254,554
Partner rebates	158,182		167,813
Restructuring, current (See Note 13)	68,561		61,541
Derivatives	76,337		50,963
Other	869,200		858,521
	$	2,320,654	$	2,354,979

Product Warranties

Systems sales include a standard product warranty. At the time of the sale, we accrue for systems’ warranty costs. The initial systems’ warranty accrual is based upon our historical experience, expected future costs and specific identification of systems’ requirements. Upon sale or expiration of the initial warranty, we may sell additional maintenance contracts to our customers. Revenue from these additional maintenance contracts is included in deferred revenue and recognized ratably over the service period. The following represents the activity in our warranty accrual for the three and six months ended June 30, 2012 and 2011 (table in thousands):



	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Balance, beginning of the period	$	263,181		$	243,634		$	254,554		$	236,131
Provision	39,802			42,415			88,055			88,240
Amounts charged to the accrual	(40,924		)	(37,654		)	(80,550		)	(75,976		)
Balance, end of the period	$	262,059		$	248,395		$	262,059		$	248,395

The provision includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods. It is not practicable to determine the amounts applicable to each of the components.