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)	June 30, 2015			December 31, 2014
Accounts receivable	$	1,313		$	1,288
Less: allowance for doubtful accounts	(77		)	(76		)
Less: allowance for sales returns	(41		)	(29		)
	$	1,195		$	1,183

The following is a rollforward of our allowance for doubtful accounts for the second quarter and first half of 2015 and 2014:



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2015			2014			2015			2014
Beginning balance	$	72		$	75		$	76		$	81
Charges to expenses	6			6			8			4
Utilization of allowances	(1		)	(1		)	(7		)	(5		)
Ending balance	$	77		$	80		$	77		$	80

Inventories



	As of
(in millions)	June 30, 2015		December 31, 2014
Finished goods	$	657	$	649
Raw materials	214		200
Work-in-process	97		97
	$	968	$	946

Property, plant and equipment, net



	As of
(in millions)	June 30, 2015		December 31, 2014
Land	$	80	$	80
Buildings and improvements	934		944
Equipment, furniture and fixtures	2,738		2,633
Capital in progress	185		189
	3,937		3,846
Less: accumulated depreciation	2,486		2,339
	$	1,451	$	1,507

Depreciation expense was $65 million for the second quarter of 2015, $69 million for the second quarter of 2014, $130 million for the first half of 2015 and $134 million for the first half of 2014.

Accrued expenses



	As of
(in millions)	June 30, 2015		December 31, 2014
Legal reserves	$	283	$	694
Payroll and related liabilities	415		512
Accrued contingent consideration	145		158
Other	558		586
	$	1,401	$	1,950

Other long-term liabilities



	As of
(in millions)	June 30, 2015		December 31, 2014
Accrued income taxes	$	1,264	$	1,231
Legal reserves	834		883
Accrued contingent consideration	96		116
Other long-term liabilities	444		436
	$	2,638	$	2,666

Accrued warranties

We offer warranties on certain of our product offerings. The majority of our warranty liability relates to implantable devices offered by our Cardiac Rhythm Management (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 half of 2015 and 2014 consisted of the following (in millions):



	Six Months Ended June 30,
	2015			2014
Beginning Balance	$	25		$	28
Provision	10			2
Settlements/reversals	(9		)	(6		)
Ending Balance	$	26		$	24