Accrued Expenses

3 Months Ended

Mar. 31, 2014

Accrued expenses consist of (table in millions):



	March 31, 2014		December 31, 2013
Salaries and benefits	$	897	$	1,078
Product warranties	274		289
Dividends payable (see Note 12)	211		205
Partner rebates	166		214
Restructuring, current (See Note 13)	154		84
Derivatives	17		23
Other	949		890
	$	2,668	$	2,783

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 months ended March 31, 2014 and 2013 (table in millions):



	March 31, 2014			March 31, 2013
Balance, beginning of the period	$	289		$	278
Provision	42			45
Amounts charged to the accrual	(57		)	(40		)
Balance, end of the period	$	274		$	283

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.