Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2020

Supplemental Balance Sheet Information [Abstract]

NOTE I – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Trade accounts receivable, net


	As of December 31,
(in millions)	2020		2019
Trade accounts receivable	$	1,637	$	1,902
Allowance for credit losses	(105)		(74)

	$	1,531	$	1,828

The following is a rollforward of our Allowance for credit losses:


	Year Ended December 31,
(in millions)	2020		2019		2018
Beginning balance	$	74	$	68	$	68
Cumulative effect adjustment for adoption of ASU 2016-13	10		n/a		n/a
Credit loss expense	49		23		19
Write-offs	(27)		(17)		(19)
Ending balance	$	105	$	74	$	68

Note: Effective January 1, 2020, we adopted FASB ASC Topic 326 using the modified retrospective method, which requires that we recognize credit loss reserves when financial assets are established if credit losses are expected over the asset’s contractual life. Prior period amounts have not been restated and are presented in accordance with FASB ASC Topic 310. Please refer to Note R – New Accounting Pronouncements for additional information.

Inventories


	As of December 31,
(in millions)	2020		2019
Finished goods	$	893	$	971
Work-in-process	109		192
Raw materials	349		416
	$	1,351	$	1,579

Approximately 33 percent of our finished goods inventory as of December 31, 2020 and approximately 32 percent as of December 31, 2019 was at customer locations pursuant to consignment arrangements or held by sales representatives.

Other current assets


	As of December 31,
(in millions)	2020		2019
Restricted cash and restricted cash equivalents	$	208	$	346
Derivative assets	133		105
Licensing arrangements	148		186

Other	263		243
	$	751	$	880

Property, plant and equipment, net


	As of December 31,
(in millions)	2020		2019
Land	$	104	$	117
Buildings and improvements	1,292		1,198
Equipment, furniture and fixtures	3,465		3,411
Capital in progress	446		442
	5,308		5,169
Less: accumulated depreciation	3,224		3,089
	$	2,084	$	2,079

Depreciation expense was $333 million in 2020, $311 million in 2019 and $296 million in 2018.

Other long-term assets


	As of December 31,
(in millions)	2020		2019
Restricted cash equivalents	$	52	$	43
Operating lease right-of-use assets	458		336
Derivative assets	109		216
Investments	918		458
Licensing arrangements	218		332
Other	166		144
	$	1,921	$	1,529

Accrued expenses


	As of December 31,
(in millions)	2020		2019
Legal reserves	$	505	$	470
Payroll and related liabilities	681		708
Rebates	331		298
Contingent consideration	26		56
Other	656		576
	$	2,197	$	2,109

Other current liabilities


	As of December 31,
(in millions)	2020		2019
Deferred revenue	$	138	$	144
Licensing arrangements	153		197
Taxes payable	158		265
Liabilities held for sale	200		—
Other	307		195
	$	958	$	800

Other long-term liabilities


	As of December 31,
(in millions)	2020		2019
Accrued income taxes	$	547	$	667
Legal reserves	64		227
Contingent consideration	171		299
Licensing arrangements	253		374
Operating lease liabilities	401		276
Deferred revenue	257		257
Other	615		535
	$	2,309	$	2,635