SUPPLEMENTAL FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

SUPPLEMENTAL FINANCIAL INFORMATION

4. SUPPLEMENTAL FINANCIAL INFORMATION

Net interest expense

	Three months ended
	March 31,
(in millions)	2018			2017
Interest expense, net of capitalized interest	$	22		$	20
Interest income		(10	)		(6	)
Net interest expense	$	12		$	14

Other (income) expense, net

	Three months ended
	March 31,
(in millions)	2018			2017
Foreign exchange	$	(15	)	$	—
Pension		(12	)		9
All other		9			2
Other (income) expense, net	$	(18	)	$	11

Inventories

	March 31,		December 31,
(in millions)	2018		2017
Raw materials	$	361	$	347
Work in process		166		116
Finished goods		1,054		1,012
Inventories	$	1,581	$	1,475

Property, plant and equipment, net

	March 31,			December 31,
(in millions)	2018			2017
Property, plant and equipment, at cost	$	10,390		$	10,148
Accumulated depreciation		(5,776	)		(5,560	)
Property, plant and equipment, net	$	4,614		$	4,588

In the first quarter of 2018, the estimated useful life of the company’s enterprise resource planning (ERP) software was extended from 2020 on a prospective basis based on the company’s commitment to upgrade, enhance and support its existing systems through 2028. This change in estimate resulted in a reduction of depreciation expense of $6 million and increase in net income of $4 million, or $0.01 per diluted share, for the three months ended March 31, 2018.