Accrued Expenses

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of (table in millions):

	December 31, 2014		December 31, 2013
Salaries and benefits	$	1,260	$	1,078
Product warranties	210		289
Dividends payable (see Note O)	237		205
Partner rebates	235		214
Restructuring, current (See Note Q)	115		84
Derivatives	75		23
Other	1,009		890
	$	3,141	$	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 years ended December 31, 2014, 2013 and 2012 (table in millions):

	Year Ended December 31,
	2014			2013			2012
Balance, beginning of the period	$	289		$	278		$	255
Provision	150			198			182
Amounts charged to the accrual	(229		)	(187		)	(159		)
Balance, end of the period	$	210		$	289		$	278

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.