Supplemental Financial Information

6 Months Ended

Jun. 30, 2015

Note 2Supplemental Financial Information

Interest Expense, Net

	Three months ended June 30,				Six months ended June 30,
(in millions)	2015		2014		2015		2014
Interest expense	$ 172		$ 73		$ 304		$ 143
Interest income	(8	)	(4	)	(14	)	(9	)

Interest expense, net	$ 164		$ 69		$ 290		$ 134

Interest expense, net for the three and six months ended June 30, 2015 included $27 million and $86 million, respectively, of financing-related costs incurred in connection with the acquisition of Pharmacyclics, Inc. (Pharmacyclics). Refer to Note 4 for additional information.

Inventories

(in millions)	June 30, 2015	December 31, 2014
Finished goods	$ 478	$ 341
Work-in-process	1,019	629
Raw materials	126	154

Inventories, net	$ 1,623	$ 1,124

Inventories, net as of June 30, 2015 included $490 million acquired through the acquisition of Pharmacyclics. Refer to Note 4 for additional information.

Property and Equipment

(in millions)	June 30, 2015		December 31, 2014
Property and equipment, gross	$ 7,172		$ 7,105
Less accumulated depreciation	(4,655	)	(4,620	)

Property and equipment, net	$ 2,517		$ 2,485

Depreciation expense for the three months ended June 30, 2015 and 2014 was $104 million and $103 million, respectively, and was $194 million and $192 million for the six months ended June 30, 2015 and 2014, respectively.