Accrued Expenses

12 Months Ended

Dec. 31, 2012

Accrued expenses consist of (table in thousands):



	December 31, 2012		December 31, 2011
Salaries and benefits	$	1,018,289	$	961,587
Product warranties	277,862		254,554
Partner rebates	187,413		167,813
Restructuring, current (See Note Q)	75,567		61,541
Derivatives	40,279		50,963
Other	922,649		858,521
	$	2,522,059	$	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 years ended December 31, 2012, 2011 and 2010 (table in thousands):



	Year Ended December 31,
	2012			2011			2010
Balance, beginning of the period	$	254,554		$	236,131		$	271,594
Provision	181,898			174,850			120,296
Amounts charged to the accrual	(158,590		)	(156,427		)	(155,759		)
Balance, end of the period	$	277,862		$	254,554		$	236,131

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.