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Supplemental Balance Sheet Information
 9 Months Ended
Sep. 30, 2022
Supplemental Balance Sheet Information [Abstract]  
SUPPLEMENTAL BALANCE SHEET INFORMATION
NOTE F – SUPPLEMENTAL BALANCE SHEET INFORMATION

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

Trade accounts receivable, net
 As of
(in millions)September 30, 2022December 31, 2021
Trade accounts receivable$1,986 $1,886 
Allowance for credit losses(114)(108)
 $1,871 $1,778 
The following is a roll forward of our Allowance for credit losses:
Three Months Ended September 30,Nine Months Ended
September 30,
(in millions)2022202120222021
Beginning balance$117 $107 $108 $105 
Credit loss expense7 9 26 20 
Write-offs(9)(7)(20)(17)
Ending balance$114 $108 $114 $108 

In accordance with FASB ASC Topic 326, Financial Instruments - Credit Losses (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, applying country or region-specific factors, to determine the reserve to record at accounts receivable commencement for certain customers. 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 and geopolitical 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 entities, and, in southern Europe, relative to those in other countries. In addition, 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 more 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, 2022December 31, 2021
Finished goods$1,107 $1,029 
Work-in-process149 128 
Raw materials533 452 
 $1,788 $1,610 
Other current assets
 As of
(in millions)September 30, 2022December 31, 2021
Restricted cash and restricted cash equivalents$112 $188 
Derivative assets367 226 
Licensing arrangements73 132 
Other332 254 
 $884 $799 
Property, plant and equipment, net
 As of
(in millions)September 30, 2022December 31, 2021
Land$117 $109 
Buildings and improvements1,461 1,335 
Equipment, furniture and fixtures3,372 3,475 
Capital in progress513 605 
 5,463 5,525 
Less: accumulated depreciation3,190 3,273 
 $2,273 $2,252 

Depreciation expense was $82 million for the third quarter of 2022, $88 million for the third quarter of 2021, $238 million for the first nine months of 2022, and $254 million for the first nine months of 2021.

Other long-term assets
 As of
(in millions)September 30, 2022December 31, 2021
Restricted cash equivalents$48 $55 
Operating lease right-of-use assets388 435 
Derivative assets285 169 
Investments389 412 
Licensing arrangements78 114 
Indemnification asset168 — 
Other247 225 
 $1,602 $1,410 

Accrued expenses
 As of
(in millions)September 30, 2022December 31, 2021
Legal reserves$174 $264 
Payroll and related liabilities777 848 
Rebates341 350 
Contingent consideration87 289 
Other596 686 
 $1,974 $2,436 

Other current liabilities
 As of
(in millions)September 30, 2022December 31, 2021
Deferred revenue$216 $208 
Licensing arrangements83 138 
Taxes payable234 209 
Other220 228 
 $752 $783 
Other long-term liabilities
 As of
(in millions)September 30, 2022December 31, 2021
Accrued income taxes$549 $442 
Legal reserves130 284 
Contingent consideration95 197 
Licensing arrangements84 143 
Operating lease liabilities350 389 
Deferred revenue278 276 
Other429 489 
 $1,916 $2,220 
As a result of our 2019 acquisition of BTG plc. (BTG), we assumed a benefit obligation related to a defined benefit pension plan sponsored by BTG for eligible United Kingdom employees. During the second quarter of 2022, we transferred the benefit obligation and associated assets of the pension plan to third party insurers, and as a result, were relieved from primary responsibility of the benefit obligation and the related plan assets. The transaction did not have a material impact on our financial position or results of operations.