Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2019

Supplemental Balance Sheet Information [Abstract]

SUPPLEMENTAL BALANCE SHEET INFORMATION

NOTE F – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Cash, cash equivalents, restricted cash and restricted cash equivalents

	As of
(in millions)	June 30, 2019		December 31, 2018
Cash and cash equivalents	$	123	$	146
Restricted cash and restricted cash equivalents in Other current assets:
Restricted cash related to the proposed BTG Acquisition (1)	2,298		—
Other restricted cash and restricted cash equivalents	360		655
	2,657		655
Restricted cash equivalents in Other long-term assets	42		27
	$	2,823	$	829

(1) Refer to Note B – Acquisitions and Strategic Investments and Note E – Borrowings and Credit Arrangements for additional information regarding the proposed BTG Acquisition.

Trade accounts receivable, net

	As of
(in millions)	June 30, 2019			December 31, 2018
Accounts receivable	$	1,785		$	1,676
Allowance for doubtful accounts	(73		)	(68		)
	$	1,712		$	1,608

The following is a rollforward of our allowance for doubtful accounts:

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	72		$	67		$	68		$	68
Net charges to expenses	4			4			11			8
Utilization of allowances	(4		)	(8		)	(6		)	(14		)
Ending balance	$	73		$	63		$	73		$	63

Inventories

	As of
(in millions)	June 30, 2019		December 31, 2018
Finished goods	$	819	$	760
Work-in-process	113		100
Raw materials	367		306
	$	1,300	$	1,166

Property, plant and equipment, net

	As of
(in millions)	June 30, 2019		December 31, 2018
Land	$	97	$	97
Buildings and improvements	1,119		1,100
Equipment, furniture and fixtures	3,312		3,224
Capital in progress	332		319
	4,861		4,740
Less: accumulated depreciation	3,040		2,958
	$	1,820	$	1,782

Depreciation expense was $73 million for the second quarter of 2019, $70 million for the second quarter of 2018, $142 million for the first six months of 2019 and $137 million for the first six months of 2018.

Accrued expenses

	As of
(in millions)	June 30, 2019		December 31, 2018
Legal reserves	$	470	$	712
Payroll and related liabilities	582		630
Rebates	235		229
Contingent consideration	101		138
Other	543		538
	$	1,932	$	2,246

Other long-term liabilities

	As of
(in millions)	June 30, 2019		December 31, 2018
Income taxes	$	684	$	739
Legal reserves	134		217
Contingent consideration	293		209
Other	916		717
	$	2,027	$	1,882