SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Trade accounts receivable, net



	As of
(in millions)	March 31, 2014			December 31, 2013
Accounts receivable	$	1,322		$	1,419
Less: allowance for doubtful accounts	(75		)	(81		)
Less: allowance for sales returns	(30		)	(31		)
	$	1,217		$	1,307

The following is a rollforward of our allowance for doubtful accounts for the first quarter of 2014 and 2013:



	Three Months Ended March 31,
(in millions)	2014			2013
Beginning balance	$	81		$	88
Charges to expenses	(2		)	3
Utilization of allowances	(4		)	(5		)
Ending balance	$	75		$	86

Inventories



	As of
(in millions)	March 31, 2014		December 31, 2013
Finished goods	$	611	$	598
Work-in-process	116		90
Raw materials	199		209
	$	926	$	897

Property, plant and equipment, net



	As of
(in millions)	March 31, 2014		December 31, 2013
Land	$	81	$	81
Buildings and improvements	919		917
Equipment, furniture and fixtures	2,492		2,461
Capital in progress	234		211
	3,726		3,670
Less: accumulated depreciation	2,187		2,124
	$	1,539	$	1,546

Depreciation expense was $65 million for the first quarter of 2014 and $61 million for the first quarter of 2013.

Accrued expenses



	As of
(in millions)	March 31, 2014		December 31, 2013
Payroll and related liabilities	$	370	$	488
Accrued contingent consideration	228		148
Legal reserves	98		84
Other	579		628
	$	1,275	$	1,348

Other long-term liabilities



	As of
(in millions)	March 31, 2014		December 31, 2013
Accrued income taxes	$	1,231	$	1,283
Accrued contingent consideration	244		353
Legal reserves	498		523
Other long-term liabilities	425		410
	$	2,398	$	2,569

Accrued warranties

We offer warranties on certain of our product offerings. The majority of our warranty liability as of March 31, 2014 related to implantable devices offered by our CRM business, which include defibrillator and pacemaker systems. Our CRM products come with a standard limited warranty covering the replacement of these devices. We offer a full warranty for a portion of the period post-implant, and a partial warranty over the substantial remainder of the useful life of the product. We estimate the costs that we may incur under our warranty programs based on the number of units sold, historical and anticipated rates of warranty claims and cost per claim, and record a liability equal to these estimated costs as cost of products sold at the time the product sale occurs. We reassess the adequacy of our recorded warranty liabilities on a quarterly basis and adjust these amounts as necessary. The current portion of our warranty accrual is included in other accrued expenses in the table above and the non-current portion of our warranty accrual is included in other long-term liabilities in the table above. Changes in our product warranty accrual during the first three months of 2014 and 2013 consisted of the following (in millions):



	Three Months Ended March 31,
	2014			2013
Beginning Balance	$	28		$	26
Provision	4			4
Settlements/reversals	(3		)	(3		)
Ending Balance	$	29		$	27