Balance Sheet Components

Selected balance sheet components consist of the following:



(In millions)	September 30, 2016		December 31, 2015
Inventories:
Raw materials	$	825.1	$	592.4
Work in process	469.8		387.0
Finished goods	1,392.6		971.6
	$	2,687.5	$	1,951.0



Property, plant and equipment:
Land and improvements	$	145.0	$	124.5
Buildings and improvements	1,074.9		950.6
Machinery and equipment	2,215.6		1,928.4
Construction in progress	344.8		290.5
Gross property, plant and equipment	3,780.3		3,294.0
Accumulated depreciation	1,496.1		1,310.1
Property, plant and equipment, net	$	2,284.2	$	1,983.9



Other current liabilities:
Legal and professional accruals, including litigation accruals	$	610.8	$	122.6
Payroll and employee benefit plan accruals	429.7		367.9
Accrued sales allowances	824.1		681.8
Accrued interest	114.3		25.1
Fair value of financial instruments	25.2		19.8
Compulsory acquisition proceeding	431.0		—
Other	1,210.7		624.7
	$	3,645.8	$	1,841.9

Included in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets was $156.8 million and $106.6 million of restricted cash at September 30, 2016 and December 31, 2015, respectively. During the nine months ended September 30, 2016, the Company recorded restricted cash of approximately $50 million related to amounts deposited in escrow, for potential contingent consideration payments related to the acquisition of the Topicals Business. An additional $100 million of restricted cash was classified in other long-term assets at December 31, 2015, principally related to amounts deposited in escrow, or restricted amounts, for potential contingent consideration payments related to the acquisition of Agila Specialties Private Limited (“Agila”), which the Company acquired in 2013 from Strides Arcolab Limited (“Strides”). At September 30, 2016, this amount was reclassified to current restricted cash in conjunction with the Strides Settlement, as defined in Note 18 Contingencies.

Included in legal and professional accruals, including litigation accruals at September 30, 2016 is $465 million for a settlement with the U.S. Department of Justice and other government agencies related to the classification of the EpiPen® Auto-Injector and EpiPen Jr® Auto-Injector (collectively, “EpiPen® Auto-Injector”) for purposes of the Medicaid Drug Rebate Program (the “Medicaid Drug Rebate Program Settlement”), as discussed further in Note 18 Contingencies.

At the close of the Meda transaction and at September 30, 2016, the Company recorded a current liability of $431 million related to the purchase of the non-tendered shares of Meda pursuant to the compulsory acquisition proceeding. Included in other current liabilities at September 30, 2016 is approximately $350 million of accrued expenses assumed from Meda.

Contingent consideration included in other current liabilities totaled $128.6 million and $35.0 million at September 30, 2016 and December 31, 2015, respectively. During the nine months ended September 30, 2016, the Company recorded contingent consideration of $16 million in other current liabilities related to the acquisition of the Topicals Business and made $15.5 million of contingent consideration payments. During the third quarter of 2016, the Company recorded approximately $90 million of additional contingent consideration in other current liabilities as a result of the Strides Settlement, as defined in Note 18 Contingencies. Contingent consideration included in other long-term obligations was $522.9 million and $491.4 million at September 30, 2016 and December 31, 2015, respectively.