	September 30,	December 31,
	2011	2010
	$’M	$’M
	________________	________________
Trade accounts payable and accrued purchases	184.2	234.7
Accrued rebates – Medicaid	387.3	379.6
Accrued rebates – Managed care	203.8	170.3
Sales return reserve	79.4	69.8
Accrued bonuses	86.8	91.6
Accrued employee compensation and benefits payable	73.9	48.1
R&D accruals	66.2	60.7
Marketing accruals	31.3	26.5
Deferred revenue	7.3	13.7
Other accrued expenses	192.5	144.3
	________________	________________
	1,312.7	1,239.3
	________________	________________

There are potentially different interpretations as to how shipments of authorized generic ADDERALL XR to Teva and Impax should be included in the Medicaid rebate calculation. Since authorized generic launch in 2009 the Company has recorded its accrual for Medicaid rebates based on its best estimate of the rebate payable, consistent with the Company's interpretation of the Medicaid rebate legislation. Shire believes that its interpretation of the Medicaid rebate legislation is reasonable and correct. Additionally, from October 1, 2010 forward, provisions of the 2010 Affordable Care Act provide further clarity, in a manner consistent with the Company's interpretation, as to how shipments of authorized generics from that date should be included in the Medicaid rebate calculation.

However, the Centers for Medicare and Medicaid Services (“CMS”) could disagree with Shire's interpretation of the Medicaid rebate legislation for shipments of authorized generics prior to October 1, 2010. CMS could require Shire to apply an alternative interpretation of the Medicaid rebate legislation and request that Shire pays up to $212 million above the recorded liability. However, Shire believes it has a strong legal basis supporting its interpretation of the Medicaid rebate legislation, and that there would be a strong basis firstly to limit any additional payment to a level approximating the full, un-rebated cost to the States of ADDERALL XR (equivalent to approximately $134 million above the recorded liability), and secondly to initiate litigation to recover any amount paid in excess of the recorded liability. The result of any such litigation cannot be predicted.