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SUPPLEMENTAL FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL FINANCIAL INFORMATION SUPPLEMENTAL FINANCIAL INFORMATION
Inventories
Inventories at year-end were as follows:
(In millions)20222021
Raw materials$457.6 $393.6 
Work-in-progress255.1 233.1 
Finished goods297.2 280.5 
Inventories$1,009.9 $907.2 
Property, Plant and Equipment, Net
Major classes of property, plant and equipment, stated at cost, at year-end were as follows:
(In millions)20222021
Land$29.3 $28.6 
Buildings and improvements781.0 777.6 
Machinery and equipment2,667.8 2,582.2 
Construction-in-progress269.6 237.8 
Property, plant and equipment3,747.7 3,626.2 
Accumulated depreciation(2,207.5)(2,148.5)
Property, plant and equipment, net$1,540.2 $1,477.7 
Software
Capitalized software costs at year-end were as follows:
(In millions)20222021
Cost$390.6 $403.9 
Accumulated amortization(282.3)(280.6)
Software, net$108.3 $123.3 
Software amortization expense was $29.5 million in 2022, $30.1 million in 2021 and $29.0 million in 2020.
Allowance for Credit Losses
Given the short-term nature of trade receivables, our allowance for credit losses is based on the financial condition of customers, the aging of receivable balances, our historical collections experience, and current and expected future macroeconomic and market conditions, including as a result of COVID-19. Balances are written off in the period in which they are determined to be uncollectible.
The activity related to our allowance for credit losses was as follows:
(In millions)20222021
Balance at beginning of year$33.0 $44.6 
Provision for (reversal of) credit losses6.9 (4.7)
Amounts written off(4.3)(7.7)
Other, including foreign currency translation(1.2).8 
Balance at end of year$34.4 $33.0 
The provision for credit losses was $20.3 million in 2020 and reflected impacts on customers as a result of COVID-19.
Research and Development
Research and development expense, which is included in “Marketing, general and administrative expense” in the Consolidated Statements of Income, was as follows:
(In millions)202220212020
Research and development expense$136.1 $136.6 $112.8 
Supplemental Cash Flow Information
Cash paid for interest and income taxes was as follows:
(In millions)202220212020
Interest$80.9 $62.8 $69.6 
Income taxes, net of refunds204.8 253.4 203.4 
Foreign Currency Effects
Gains and losses resulting from foreign currency transactions are included in income in the period incurred. Transactions in foreign currencies (including receivables, payables and loans denominated in currencies other than the functional currency), including hedging impacts, were not material in 2022, 2021 or 2020.
Deferred Revenue
Deferred revenue primarily relates to constrained variable consideration on supply agreements for sales of products, as well as to payments received in advance of performance under a contract. Deferred revenue is recognized as revenue as or when we perform under a contract.
The following table shows the amounts and balance sheet locations of deferred revenue as of December 31, 2022 and January 1, 2022:
(In millions)December 31, 2022January 1, 2022
Other current liabilities$22.2 $24.7 
Long-term retirement benefits and other liabilities2.1 1.9 
Total deferred revenue$24.3 $26.6 
Revenue recognized from amounts included in deferred revenue as of January 1, 2022 was $23.5 million in 2022. Revenue recognized from amounts included in deferred revenue as of January 2, 2021 was $18.4 million in 2021. Revenue recognized from amounts included in deferred revenue as of December 28, 2019 was $12.0 million in 2020. This revenue was included in “Net sales” in the Consolidated Statements of Income.