OTHER FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2024

Other Financial Information [Abstract]

OTHER FINANCIAL INFORMATION

OTHER FINANCIAL INFORMATION

Accounts Receivable, Net

The following table summarizes our Accounts receivable, net:

(in millions)	March 31, 2024		December 31, 2023
Accounts receivable	$	5,518	$	5,495
Less: allowances for chargebacks	693		679
Less: allowances for cash discounts and other	96		101
Less: allowances for credit losses	59		56
Accounts receivable, net	$	4,669	$	4,660

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

Inventories

The following table summarizes our Inventories:

(in millions)	March 31, 2024		December 31, 2023
Raw materials	$	1,237	$	1,246
Work in process	778		847
Finished goods	1,348		1,272
Total	$	3,363	$	3,366
Reported as:
Inventories	$	1,853	$	1,787
Other long-term assets(1)	1,510		1,578
Total	$	3,363	$	3,366

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(1)     Amounts primarily consist of raw materials.

Other Current Liabilities

The following table summarizes the components of Other current liabilities:

(in millions)	March 31, 2024		December 31, 2023
Compensation and employee benefits	$	755	$	1,201
Income taxes payable	1,198		1,208
Allowance for sales returns	376		387
Other	2,135		2,334
Other current liabilities	$	4,464	$	5,130

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in Accumulated other comprehensive income 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, 2023	$	62	$	(5)	$	(29)	$	28
Net unrealized (loss) gain	(17)		—		53		36
Reclassifications to net income	—		5		—		5
Net current period other comprehensive (loss) income	(17)		5		53		41
Balance as of March 31, 2024	$	45	$	—	$	24	$	69

(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, 2022	$	2	$	(33)	$	33	$	2
Net unrealized gain (loss)	(5)		8		(6)		(2)
Reclassifications to net income	—		1		(21)		(20)
Net current period other comprehensive (loss) income	(5)		9		(26)		(22)
Balance as of March 31, 2023	$	(3)	$	(24)	$	7	$	(20)

Restructuring

During the three months ended March 31, 2024, we incurred restructuring charges of $63 million primarily related to the initiation of reductions in our commercial and research and development workforce. We recorded $50 million of these charges in Research and development expenses and $13 million of these charges in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.