Accrued Expenses

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of (table in millions):

	December 31, 2015		December 31, 2014
Salaries and benefits	$	1,189	$	1,260
Product warranties	172		207
Dividends payable (see Note N)	234		237
Partner rebates	221		235
Restructuring, current (See Note P)	333		115
Derivatives	82		75
Other	892		1,012
	$	3,123	$	3,141

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, 2015, 2014 and 2013 (table in millions):

	Year Ended December 31,
	2015			2014			2013
Balance, beginning of the period	$	207		$	286		$	270
Provision	148			146			179
Amounts charged to the accrual	(183		)	(225		)	(163		)
Balance, end of the period	$	172		$	207		$	286

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.