Accrued Expenses

6 Months Ended

Jun. 30, 2013

Accrued expenses consist of (table in millions):



	June 30, 2013		December 31, 2012
Salaries and benefits	$	932	$	1,018
Product warranties	291		278
Dividends payable (see Note 12)	212		—
Partner rebates	179		187
Restructuring, current (See Note 13)	88		76
Derivatives	32		40
Other	937		923
	$	2,671	$	2,522

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, 2013 and 2012 (table in millions):



	For the Three Months Ended						For the Six Months Ended
	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Balance, beginning of the period	$	283		$	263		$	278		$	255
Provision	51			40			96			88
Amounts charged to the accrual	(43		)	(41		)	(83		)	(81		)
Balance, end of the period	$	291		$	262		$	291		$	262

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.