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Supplemental Balance Sheet Information
 9 Months Ended
Sep. 30, 2021
Supplemental Balance Sheet Information [Abstract]  
SUPPLEMENTAL BALANCE SHEET INFORMATION
NOTE F – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Trade accounts receivable, net
 As of
(in millions)September 30, 2021December 31, 2020
Trade accounts receivable$1,778 $1,637 
Allowance for credit losses(108)(105)
 $1,669 $1,531 

The following is a rollforward of our Allowance for credit losses:
Three Months Ended September 30,Nine Months Ended
September 30,
(in millions)2021202020212020
Beginning balance$107 $94 $105 $74 
Cumulative effect adjustment(1)
n/an/an/a10 
Credit loss expense9 16 20 39 
Write-offs(7)(7)(17)(19)
Ending balance$108 $103 $108 $103 
(1)    Effective January 1, 2020, we adopted FASB ASC Topic 326, Financial Instruments - Credit Losses 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. Refer to Note R – New Accounting Pronouncements to our audited financial statements contained in Item 8 of our most recent Annual Report on Form 10-K for additional information.
In accordance with FASB ASC Topic 326, we record credit loss reserves to Allowance for credit losses when we establish Trade accounts receivable if credit losses are expected over the asset's contractual life. We base our estimates of credit loss reserves on historical experience and adjust, as necessary, to reflect current conditions using reasonable and supportable forecasts not already reflected in the historical loss information. We utilize an accounts receivable aging approach to determine the reserve to record at accounts receivable commencement for certain customers, applying country or region-specific factors. In performing the assessment of outstanding accounts receivable, regardless of country or region, we may consider significant factors relevant to collectability, including those specific to a customer such as bankruptcy, lengthy average payment cycles and type of account.

We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic conditions. Our sales to government-owned or supported customers, particularly in southern Europe, are subject to an increased number of days outstanding prior to payment relative to other countries. More recently, we have seen an increase in the volume of our U.S. business conducted in ambulatory surgery centers and office-based laboratories. Many of these customers are smaller than those we have historically done business with and may have limited liquidity. We have adjusted our estimates of credit loss reserves for these customers, regions and conditions based on collection trends.

Inventories
 As of
(in millions)September 30, 2021December 31, 2020
Finished goods$1,039 $893 
Work-in-process127 109 
Raw materials436 349 
 $1,603 $1,351 

Other current assets
 As of
(in millions)September 30, 2021December 31, 2020
Restricted cash and restricted cash equivalents$155 $208 
Derivative assets192 133 
Licensing arrangements142 148 
Other302 263 
 $792 $751 

Property, plant and equipment, net
 As of
(in millions)September 30, 2021December 31, 2020
Land$103 $104 
Buildings and improvements1,340 1,292 
Equipment, furniture and fixtures3,515 3,465 
Capital in progress465 446 
 5,423 5,308 
Less: accumulated depreciation3,314 3,224 
 $2,109 $2,084 

Depreciation expense was $88 million for the third quarter of 2021, $84 million for the third quarter of 2020, $254 million for the first nine months of 2021 and $238 million for the first nine months of 2020.
Other long-term assets
 As of
(in millions)September 30, 2021December 31, 2020
Restricted cash equivalents$57 $52 
Operating lease right-of-use assets415 458 
Derivative assets176 109 
Investments434 918 
Licensing arrangements138 218 
Other223 166 
 $1,444 $1,921 

Accrued expenses
 As of
(in millions)September 30, 2021December 31, 2020
Legal reserves$357 $505 
Payroll and related liabilities884 681 
Rebates351 331 
Contingent consideration liability253 26 
Other574 656 
 $2,418 $2,197 

Other current liabilities
 As of
(in millions)September 30, 2021December 31, 2020
Deferred revenue$160 $138 
Licensing arrangements142 153 
Taxes payable113 158 
Liabilities held for sale— 200 
Other255 307 
 $669 $958 

Other long-term liabilities
 As of
(in millions)September 30, 2021December 31, 2020
Accrued income taxes$541 $547 
Legal reserves191 64 
Contingent consideration liability195 171 
Licensing arrangements155 253 
Operating lease liabilities377 401 
Deferred revenue296 257 
Other542 615 
 $2,296 $2,309