Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2024

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, 2024		December 31, 2023
Trade accounts receivable	$	2,505	$	2,338
Allowance for credit losses	(105)		(110)
	$	2,400	$	2,228

The following is a roll forward of our Allowance for credit losses:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Beginning balance	$	109	$	118	$	110	$	109
Credit loss expense	12		19		21		35
Write-offs	(16)		(10)		(26)		(16)
Ending balance	$	105	$	127	$	105	$	127

Inventories

	As of
(in millions)	June 30, 2024		December 31, 2023
Finished goods	$	1,558	$	1,537
Work-in-process	201		174
Raw materials	849		773
	$	2,608	$	2,484

Other current assets

	As of
(in millions)	June 30, 2024		December 31, 2023
Restricted cash and restricted cash equivalents	$	75	$	130
Derivative assets	267		159
Licensing arrangements	38		47
Other	376		285
	$	756	$	621

Property, plant and equipment, net

	As of
(in millions)	June 30, 2024		December 31, 2023
Land	$	140	$	140
Buildings and improvements	1,876		1,843
Equipment, furniture and fixtures	3,598		3,503
Capital in progress	897		857
	6,512		6,343
Less: accumulated depreciation	3,561		3,484
	$	2,951	$	2,859

Depreciation expense was $98 million for the second quarter of 2024, $88 million for the second quarter of 2023, $188 million for the first six months of 2024 and $170 million for the first six months of 2023.

Other long-term assets

	As of
(in millions)	June 30, 2024		December 31, 2023
Restricted cash equivalents	$	74	$	60
Operating lease right-of-use assets	416		439
Derivative assets	46		107
Investments	450		413
Licensing arrangements	13		30
Indemnification asset	172		176
Other	381		306
	$	1,551	$	1,531

Accrued expenses

	As of
(in millions)	June 30, 2024		December 31, 2023
Legal reserves	$	118	$	206
Payroll and related liabilities	948		1,051
Rebates	412		389
Contingent consideration	175		304
Other	667		696
	$	2,320	$	2,646

Other current liabilities

	As of
(in millions)	June 30, 2024		December 31, 2023
Deferred revenue	$	284	$	266
Licensing arrangements	40		49
Taxes payable	224		220
Other	222		278
	$	770	$	814

Other long-term liabilities

	As of
(in millions)	June 30, 2024		December 31, 2023
Accrued income taxes	$	356	$	470
Legal reserves	133		172
Contingent consideration	118		100
Licensing arrangements	20		41
Operating lease liabilities	365		390
Deferred revenue	316		311
Other	491		484
	$	1,800	$	1,967