Supplemental Balance Sheet Information

9 Months Ended

Sep. 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)	September 30, 2024		December 31, 2023
Trade accounts receivable	$	2,610	$	2,338
Allowance for credit losses	(109)		(110)
	$	2,501	$	2,228

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023		2024		2023
Beginning balance	$	105	$	127	$	110	$	109
Credit loss expense	10		10		30		44
Write-offs	(6)		(11)		(32)		(27)
Ending balance	$	109	$	126	$	109	$	126

Inventories

	As of
(in millions)	September 30, 2024		December 31, 2023
Finished goods	$	1,687	$	1,537
Work-in-process	206		174
Raw materials	860		773
	$	2,753	$	2,484

Other current assets

	As of
(in millions)	September 30, 2024		December 31, 2023
Restricted cash and restricted cash equivalents	$	70	$	130
Derivative assets	168		159
Licensing arrangements	33		47
Other	403		285
	$	674	$	621

Property, plant and equipment, net

	As of
(in millions)	September 30, 2024		December 31, 2023
Land	$	143	$	140
Buildings and improvements	1,912		1,843
Equipment, furniture and fixtures	3,673		3,503
Capital in progress	966		857
	6,694		6,343
Less: accumulated depreciation	3,622		3,484
	$	3,072	$	2,859

Depreciation expense was $102 million for the third quarter of 2024, $93 million for the third quarter of 2023, $290 million for the first nine months of 2024 and $263 million for the first nine months of 2023.

Other long-term assets

	As of
(in millions)	September 30, 2024		December 31, 2023
Restricted cash equivalents	$	78	$	60
Operating lease right-of-use assets	426		439
Derivative assets	20		107
Investments	532		413
Licensing arrangements	4		30
Indemnification asset	183		176
Other	400		306
	$	1,642	$	1,531

Accrued expenses

	As of
(in millions)	September 30, 2024		December 31, 2023
Legal reserves	$	126	$	206
Payroll and related liabilities	1,111		1,051
Rebates	460		389
Contingent consideration	62		304
Other	701		696
	$	2,460	$	2,646

Other current liabilities

	As of
(in millions)	September 30, 2024		December 31, 2023
Deferred revenue	$	290	$	266
Licensing arrangements	33		49
Taxes payable	286		220
Other	282		278
	$	891	$	814

Other long-term liabilities

	As of
(in millions)	September 30, 2024		December 31, 2023
Accrued income taxes	$	364	$	470
Legal reserves	124		172
Contingent consideration	109		100
Licensing arrangements	8		41
Operating lease liabilities	373		390
Deferred revenue	328		311
Other	535		484
	$	1,841	$	1,967