Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2019

Supplemental Balance Sheet Information [Abstract]

SUPPLEMENTAL BALANCE SHEET INFORMATION

NOTE H – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Trade accounts receivable, net

	As of December 31,
(in millions)	2019			2018
Accounts receivable	$	1,902		$	1,676
Allowance for doubtful accounts	(74		)	(68		)
	$	1,828		$	1,608

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

	Year Ended December 31,
(in millions)	2019			2018			2017
Beginning balance	$	68		$	68		$	73
Net charges to expenses	23			19			14
Utilization of allowances	(17		)	(19		)	(18		)
Ending balance	$	74		$	68		$	68

Inventories

	As of December 31,
(in millions)	2019		2018
Finished goods	$	971	$	760
Work-in-process	192		100
Raw materials	416		306
	$	1,579	$	1,166

Other current assets

	As of December 31,
(in millions)	2019		2018
Restricted cash and restricted cash equivalents	$	346	$	655
Derivative assets	105		122
Licensing arrangements	186		—
Taxes receivable	105		37
Other	138		107
	$	880	$	921

Property, plant and equipment, net

	As of December 31,
(in millions)	2019		2018
Land	$	117	$	97
Buildings and improvements	1,198		1,100
Equipment, furniture and fixtures	3,411		3,224
Capital in progress	442		319
	5,169		4,740
Less: accumulated depreciation	3,089		2,958
	$	2,079	$	1,782

Depreciation expense was $311 million in 2019, $296 million in 2018 and $279 million in 2017.

Other long-term assets

	As of December 31,
(in millions)	2019		2018
Restricted cash equivalents	$	43	$	27
Operating lease right-of-use assets	336		—
Derivative assets	216		183
Investments	458		424
Licensing arrangements	332		—
Other	144		211
	$	1,529	$	845

Accrued expenses

	As of December 31,
(in millions)	2019		2018
Legal reserves	$	470	$	712
Payroll and related liabilities	708		630
Accrued contingent consideration	56		138
Rebates	298		229
Other	576		538
	$	2,109	$	2,246

Other current liabilities

	As of December 31,
(in millions)	2019		2018
Deferred revenue	$	144	$	115
Licensing arrangements	197		—
Taxes payable	265		125
Other	195		173
	$	800	$	412

Other long-term liabilities

	As of December 31,
(in millions)	2019		2018
Accrued income taxes	$	667	$	739
Legal reserves	227		217
Accrued contingent consideration	299		209
Licensing arrangements	374		—
Operating lease liabilities	276		—
Other	792		717
	$	2,635	$	1,882