SUPPLEMENTAL BALANCE SHEET INFORMATION

Components of selected captions in our accompanying unaudited condensed consolidated balance sheets are as follows:

Trade accounts receivable, net



	As of
(in millions)	June 30, 2014			December 31, 2013
Accounts receivable	$	1,403		$	1,419
Less: allowance for doubtful accounts	(80		)	(81		)
Less: allowance for sales returns	(36		)	(31		)
	$	1,287		$	1,307

The following is a rollforward of our allowance for doubtful accounts for the second quarter and first half of 2014 and 2013:



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2014			2013			2014			2013
Beginning balance	$	75		$	86		$	81		$	88
Charges to expenses	6			3			4			6
Utilization of allowances	(1		)	(5		)	(5		)	(10		)
Ending balance	$	80		$	84		$	80		$	84

Inventories



	As of
(in millions)	June 30, 2014		December 31, 2013
Finished goods	$	634	$	598
Work-in-process	114		90
Raw materials	201		209
	$	949	$	897

Property, plant and equipment, net



	As of
(in millions)	June 30, 2014		December 31, 2013
Land	$	81	$	81
Buildings and improvements	950		917
Equipment, furniture and fixtures	2,554		2,461
Capital in progress	192		211
	3,777		3,670
Less: accumulated depreciation	2,243		2,124
	$	1,534	$	1,546

Depreciation expense was $69 million for the second quarter of 2014, $66 million for the second quarter of 2013, $134 million for the first half of 2014, and $127 million for the first half of 2013.

Accrued expenses



	As of
(in millions)	June 30, 2014		December 31, 2013
Payroll and related liabilities	$	410	$	488
Accrued contingent consideration	181		148
Legal reserves	81		84
Other	605		628
	$	1,277	$	1,348

Other long-term liabilities



	As of
(in millions)	June 30, 2014		December 31, 2013
Accrued income taxes	$	1,244	$	1,283
Legal reserves	745		523
Accrued contingent consideration	191		353
Other long-term liabilities	426		410
	$	2,606	$	2,569

Accrued warranties

We offer warranties on certain of our product offerings. The majority of our warranty liability as of June 30, 2014 related to implantable devices offered by our CRM business, which include defibrillator and pacemaker systems. Our CRM products come with a standard limited warranty covering the replacement of these devices. We offer a full warranty for a portion of the period post-implant, and a partial warranty over the substantial remainder of the useful life of the product. We estimate the costs that we may incur under our warranty programs based on the number of units sold, historical and anticipated rates of warranty claims and cost per claim, and record a liability equal to these estimated costs as cost of products sold at the time the product sale occurs. We reassess the adequacy of our recorded warranty liabilities on a quarterly basis and adjust these amounts as necessary. The current portion of our warranty accrual is included in other accrued expenses in the table above and the non-current portion of our warranty accrual is included in other long-term liabilities in the table above. Changes in our product warranty accrual during the first half of 2014 and 2013 consisted of the following (in millions):



	Six Months Ended June 30,
	2014			2013
Beginning Balance	$	28		$	26
Provision	2			5
Settlements/reversals	(6		)	(6		)
Ending Balance	$	24		$	25