Supplemental Financial Information

9 Months Ended

Sep. 30, 2015

Note 2Supplemental Financial Information

Interest Expense, Net

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2015		2014		2015		2014
Interest expense	$ 207		$ 148		$ 511		$ 290
Interest income	(10	)	(20	)	(24	)	(28	)

Interest expense, net	$ 197		$ 128		$ 487		$ 262

Interest expense, net included $86 million of financing-related costs incurred in connection with the acquisition of Pharmacyclics, Inc. (Pharmacyclics), which were incurred in the first half of 2015. Refer to Note 4 for additional information.

Inventories

(in millions)	September 30, 2015	December 31, 2014
Finished goods	640	$ 341
Work-in-process	1,063	629
Raw materials	138	154

Inventories, net	$ 1,841	$ 1,124

Inventories, net as of September 30, 2015 included $416 million acquired through the acquisition of Pharmacyclics. Refer to Note 4 for additional information.

Property and Equipment

(in millions)	September 30, 2015		December 31, 2014
Property and equipment, gross	$ 7,281		$ 7,105
Less accumulated depreciation	(4,735	)	(4,620	)

Property and equipment, net	$ 2,546		$ 2,485

Depreciation expense for the three months ended September 30, 2015 and 2014 was $102 million and $94 million, respectively, and was $296 million and $286 million for the nine months ended September 30, 2015 and 2014, respectively.