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Supplemental Balance Sheet Information
 6 Months Ended
Jun. 30, 2022
Supplemental Balance Sheet Information [Abstract]  
SUPPLEMENTAL BALANCE SHEET INFORMATION
NOTE F – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Trade accounts receivable, net
 As of
(in millions)June 30, 2022December 31, 2021
Trade accounts receivable$2,034 $1,886 
Allowance for credit losses(117)(108)
 $1,917 $1,778 

The following is a roll forward of our Allowance for credit losses:
Three Months Ended June 30,Six Months Ended
June 30,
(in millions)2022202120222021
Beginning balance$113 $101 $108 $105 
Credit loss expense9 9 20 11 
Write-offs(5)(4)(11)(10)
Ending balance$117 $107 $117 $107 


In accordance with FASB ASC Topic 326, Financial Instruments - Credit Losses (FASB ASC Topic 326), we record credit loss reserves to Allowance for credit losses when we establish Trade accounts receivable if credit losses are expected over the asset's contractual life. We base our estimates of credit loss reserves on historical experience and adjust, as necessary, to reflect current conditions using reasonable and supportable forecasts not already reflected in the historical loss information. We utilize an accounts receivable aging approach to determine the reserve to record at accounts receivable commencement for certain customers, applying country or region-specific factors. In performing the assessment of outstanding accounts receivable, regardless of country or region, we may consider significant factors relevant to collectability, including those specific to a customer such as bankruptcy, lengthy average payment cycles and type of account.

We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic and geopolitical conditions. Our sales to government-owned or supported customers, particularly in southern Europe, are subject to an increased number of days outstanding prior to payment relative to other entities, and, in southern Europe, relative to those in other countries. More recently, we have seen an increase in the volume of our U.S. business conducted in ambulatory surgery centers and office-based laboratories. Many of these customers are smaller than those we have historically done business with and may have more limited liquidity. We have adjusted our estimates of credit loss reserves for these customers, regions and conditions based on collection trends.

Inventories
 As of
(in millions)June 30, 2022December 31, 2021
Finished goods$1,082 $1,029 
Work-in-process144 128 
Raw materials526 452 
 $1,752 $1,610 
Other current assets
 As of
(in millions)June 30, 2022December 31, 2021
Restricted cash and restricted cash equivalents$132 $188 
Derivative assets286 226 
Licensing arrangements94 132 
Other362 254 
 $874 $799 

Property, plant and equipment, net
 As of
(in millions)June 30, 2022December 31, 2021
Land$118 $109 
Buildings and improvements1,406 1,335 
Equipment, furniture and fixtures3,453 3,475 
Capital in progress537 605 
 5,514 5,525 
Less: accumulated depreciation3,268 3,273 
 $2,246 $2,252 

Depreciation expense was $80 million for the second quarter of 2022, $83 million for the second quarter of 2021, $156 million for the first six months of 2022, and $166 million for the first six months of 2021.

Other long-term assets
 As of
(in millions)June 30, 2022December 31, 2021
Restricted cash equivalents$50 $55 
Operating lease right-of-use assets400 435 
Derivative assets252 169 
Investments384 412 
Licensing arrangements88 114 
Indemnification asset163 — 
Other230 225 
 $1,569 $1,410 

Accrued expenses
 As of
(in millions)June 30, 2022December 31, 2021
Legal reserves$359 $264 
Payroll and related liabilities754 848 
Rebates335 350 
Contingent consideration133 289 
Other615 686 
 $2,197 $2,436 
Other current liabilities
 As of
(in millions)June 30, 2022December 31, 2021
Deferred revenue$222 $208 
Licensing arrangements112 138 
Taxes payable257 209 
Other193 228 
 $784 $783 

Other long-term liabilities
 As of
(in millions)June 30, 2022December 31, 2021
Accrued income taxes$550 $442 
Legal reserves155 284 
Contingent consideration86 197 
Licensing arrangements103 143 
Operating lease liabilities357 389 
Deferred revenue279 276 
Other458 489 
 $1,988 $2,220 
As a result of our 2019 acquisition of BTG plc. (BTG), we assumed a benefit obligation related to a defined benefit pension plan sponsored by BTG for eligible United Kingdom employees. During the second quarter of 2022, we transferred the benefit obligation and associated assets of the pension plan to third party insurers, and as a result, were relieved from primary responsibility of the benefit obligation and the related plan assets. The transaction did not have a material impact on our financial position or results of operations.