Payroll expenses fell about 1 percent to $378.9 million, according to the AP's financial statement. The AP had 3,473 employees at the end of 2011, down 3.6 percent from 3,602 a year earlier, the AP said.The AP said investment in equipment was $31 million in 2011. About half of that went toward updating its video department to handle high-definition video, the AP said. Spending on equipment was $26 million in 2010 and is expected to fall to $20 million this year. ___ Nakashima reported from Los Angeles.