Accrued Expenses

3 Months Ended

Mar. 31, 2016

Accrued expenses consist of (table in millions):



	March 31, 2016		December 31, 2015
Salaries and benefits	$	957	$	1,189
Product warranties	151		172
Dividends payable (see Note 10)	239		234
Partner rebates	181		221
Restructuring, current (See Note 11)	250		333
Derivatives	85		82
Other	859		892
	$	2,722	$	3,123

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, 2016 and 2015 (table in millions):



	For the Three Months Ended
	March 31, 2016			March 31, 2015
Balance, beginning of the period	$	172		$	207
Provision	25			33
Amounts charged against the accrual	(46		)	(52		)
Balance, end of the period	$	151		$	188

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.