OTHER FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2023

Other Financial Information [Abstract]

OTHER FINANCIAL INFORMATION

OTHER FINANCIAL INFORMATION

Accounts Receivable, Net

The following table summarizes our Accounts receivable, net:

	December 31,
(in millions)	2023		2022
Accounts receivable	$	5,495	$	5,464
Less: allowances for chargebacks	679		549
Less: allowances for cash discounts and other	101		83
Less: allowances for credit losses	56		55
Accounts receivable, net	$	4,660	$	4,777

The majority of our trade accounts receivable arises from product sales in the U.S. and Europe.

Inventories

The following table summarizes our Inventories:

	December 31,
(in millions)	2023		2022
Raw materials	$	1,246	$	1,177
Work in process	847		577
Finished goods	1,272		1,066
Total	$	3,366	$	2,820
Reported as:
Inventories	$	1,787	$	1,507
Other long-term assets(1)	1,578		1,313
Total	$	3,366	$	2,820

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(1)     Amounts primarily consist of raw materials.

Other Current Liabilities

The following table summarizes the components of Other current liabilities:

	December 31,
(in millions)	2023		2022
Compensation and employee benefits	$	1,201	$	1,018
Income taxes payable	1,208		959
Allowance for sales returns	387		422
Other	2,334		2,182
Other current liabilities	$	5,130	$	4,580

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in Accumulated other comprehensive income (loss) by component, net of tax:

(in millions)	Foreign Currency Translation		Unrealized Gains and Losses on Available-for-Sale Debt Securities, Net of Tax		Unrealized Gains and Losses on Cash Flow Hedges, Net of Tax		Total
Balance as of December 31, 2020	$	51	$	2	$	(113)	$	(60)
Net unrealized (loss) gain	(38)		(6)		129		85
Reclassifications to net income	—		—		58		58
Other comprehensive (loss) income, net	(38)		(6)		187		143
Balance as of December 31, 2021	$	13	$	(4)	$	74	$	83
Net unrealized (loss) gain	$	(11)	$	(30)	$	130	$	88
Reclassifications to net income	—		1		(171)		(170)
Other comprehensive loss, net	(11)		(29)		(41)		(81)
Balance as of December 31, 2022	$	2	$	(33)	$	33	$	2
Net unrealized gain (loss)	$	60	$	26	$	(12)	$	75
Reclassifications to net income	—		2		(51)		(49)
Other comprehensive income (loss), net	60		28		(62)		26
Balance as of December 31, 2023	$	62	$	(5)	$	(29)	$	28

Restructuring

During 2023, we incurred restructuring charges totaling $527 million primarily due to changes in our manufacturing strategy which included a decision to no longer utilize certain facilities. As a result of this decision, we determined that the related assets were fully impaired based on the difference between fair value and the carrying amount. The total charges consisted of write-offs of manufacturing assets of $381 million, write-offs of inventory of $89 million and other costs of $57 million. As a result, we recorded a $479 million charge to Cost of goods sold, a $20 million charge to Research and development expenses and a $28 million charge to Selling, general and administrative expenses on our Consolidated Statements of Income.