NOTE G – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Cash, cash equivalents, restricted cash and restricted cash equivalents



	As of
(in millions)	September 30, 2018		December 31, 2017
Cash and cash equivalents	$	168	$	188
Restricted cash and restricted cash equivalents included in Other current assets	781		803
Restricted cash equivalents included in Other long-term assets	31		26
	$	980	$	1,017

Trade accounts receivable, net



	As of
(in millions)	September 30, 2018			December 31, 2017
Accounts receivable	$	1,646		$	1,645
Allowance for doubtful accounts	(66		)	(68		)
Allowance for sales returns (1)	—			(30		)
	$	1,580		$	1,548


(1)	Due to the adoption of FASB ASC Topic 606 effective January 1, 2018, the allowance for sales returns has been prospectively reclassified from Trade accounts receivable, net to Other current liabilities within the unaudited condensed consolidated balance sheets. Prior period balances remain unchanged.

The following is a rollforward of our allowance for doubtful accounts:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2018			2017			2018			2017
Beginning balance	$	63		$	74		$	68		$	73
Net charges to expenses	6			9			15			14
Utilization of allowances	(4		)	(2		)	(17		)	(6		)
Ending balance	$	66		$	81		$	66		$	81

Inventories



	As of
(in millions)	September 30, 2018		December 31, 2017
Finished goods	$	733	$	685
Work-in-process	103		110
Raw materials	298		284
	$	1,134	$	1,078

Property, plant and equipment, net



	As of
(in millions)	September 30, 2018			December 31, 2017
Land	$	101		$	102
Buildings and improvements	1,108			1,120
Equipment, furniture and fixtures	3,257			3,183
Capital in progress	261			219
	4,726			4,625
Accumulated depreciation	(2,996		)	(2,928		)
	$	1,730		$	1,697

Depreciation expense was $74 million for the third quarter of 2018, $71 million for the third quarter of 2017, $212 million for the first nine months of 2018 and $198 million for the first nine months of 2017.

Accrued expenses



	As of
(in millions)	September 30, 2018		December 31, 2017
Legal reserves	$	1,050	$	1,176
Payroll and related liabilities	590		591
Contingent consideration liability	144		36
Other	685		653
	$	2,469	$	2,456

Other long-term liabilities



	As of
(in millions)	September 30, 2018		December 31, 2017
Accrued income taxes	$	789	$	1,275
Legal reserves	112		436
Contingent consideration liability	161		133
Other	712		525
	$	1,774	$	2,370