Accrued Expenses

12 Months Ended

Dec. 31, 2013

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of (table in millions):

	December 31, 2013		December 31, 2012
Salaries and benefits	$	1,078	$	1,018
Product warranties	289		278
Dividends payable (see Note O)	205		—
Partner rebates	214		187
Restructuring, current (See Note Q)	84		76
Derivatives	23		40
Other	890		893
	$	2,783	$	2,492

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, 2013, 2012 and 2011 (table in millions):

	Year Ended December 31,
	2013			2012			2011
Balance, beginning of the period	$	278		$	255		$	236
Provision	198			182			175
Amounts charged to the accrual	(187		)	(159		)	(156		)
Balance, end of the period	$	289		$	278		$	255

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.