Accrued Expenses

12 Months Ended

Dec. 31, 2011

Accrued Expenses

K.       Accrued Expenses

Accrued expenses consist of (table in thousands):

	December 31,		December 31,
	2011		2010
Salaries and benefits	$	961,587	$	884,243
Product warranties		254,554		236,131
Partner rebates		167,813		122,739
Restructuring, current (See Note Q)		61,541		61,933
Derivatives		50,963		36,879
Other		858,521		748,110
	$	2,354,979	$	2,090,035

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 our standard product warranty (table in thousands):

	Year Ended December 31,
	2011		2010		2009
Balance, beginning of the year	$	236,131	$	271,594	$	269,218
Provision		174,850		120,296		145,517
Amounts charged to the accrual		(156,427)		(155,759)		(143,141)
Balance, end of the year	$	254,554	$	236,131	$	271,594

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.