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, 2016			December 31, 2015
Accounts receivable	$	1,512		$	1,394
Less: allowance for doubtful accounts	(80		)	(75		)
Less: allowance for sales returns	(45		)	(44		)
	$	1,387		$	1,275

The following is a rollforward of our allowance for doubtful accounts for the second quarter and first half of 2016 and 2015:



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2016			2015			2016			2015
Beginning balance	$	80		$	72		$	75		$	76
Charges to expenses	3			6			7			8
Utilization of allowances	(3		)	(1		)	(2		)	(7		)
Ending balance	$	80		$	77		$	80		$	77

Inventories



	As of
(in millions)	June 30, 2016		December 31, 2015
Finished goods	$	654	$	706
Work-in-process	108		102
Raw materials	219		208
	$	981	$	1,016

Property, plant and equipment, net



	As of
(in millions)	June 30, 2016		December 31, 2015
Land	$	83	$	86
Buildings and improvements	966		981
Equipment, furniture and fixtures	2,904		2,793
Capital in progress	183		202
	4,136		4,062
Less: accumulated depreciation	2,649		2,572
	$	1,487	$	1,490

Depreciation expense was $62 million for the second quarter of 2016, $65 million for the second quarter of 2015, $126 million for the first half of 2016, and $130 million for the first half of 2015.

Accrued expenses



	As of
(in millions)	June 30, 2016		December 31, 2015
Legal reserves	$	1,075	$	773
Payroll and related liabilities	500		504
Accrued contingent consideration	102		119
Other	559		574
	$	2,236	$	1,970

Other long-term liabilities



	As of
(in millions)	June 30, 2016		December 31, 2015
Accrued income taxes	$	1,291	$	1,253
Legal reserves	1,300		1,163
Accrued contingent consideration	105		127
Other long-term liabilities	543		431
	$	3,239	$	2,974

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 for a period of time thereafter. 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 2016 and 2015 consisted of the following (in millions):



	Six Months Ended June 30,
	2016			2015
Beginning Balance	$	23		$	25
Provision	10			10
Settlements/reversals	(13		)	(9		)
Ending Balance	$	20		$	26