Supplemental Balance Sheet Information

3 Months Ended

Mar. 31, 2024

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)	March 31, 2024		December 31, 2023
Trade accounts receivable	$	2,413	$	2,338
Allowance for credit losses	(109)		(110)
	$	2,304	$	2,228

The following is a roll forward of our Allowance for credit losses:

	Three Months Ended March 31,
(in millions)	2024		2023
Beginning balance	$	110	$	109
Credit loss expense	9		16
Write-offs	(10)		(6)
Ending balance	$	109	$	118

Inventories

	As of
(in millions)	March 31, 2024		December 31, 2023
Finished goods	$	1,555	$	1,537
Work-in-process	188		174
Raw materials	818		773
	$	2,561	$	2,484

Other current assets

	As of
(in millions)	March 31, 2024		December 31, 2023
Restricted cash and restricted cash equivalents	$	93	$	130
Derivative assets	177		159
Licensing arrangements	44		47
Other	357		285
	$	671	$	621

Property, plant and equipment, net

	As of
(in millions)	March 31, 2024		December 31, 2023
Land	$	141	$	140
Buildings and improvements	1,856		1,843
Equipment, furniture and fixtures	3,550		3,503
Capital in progress	880		857
	6,427		6,343
Less: accumulated depreciation	3,530		3,484
	$	2,897	$	2,859

Depreciation expense was $90 million for the first quarter of 2024 and $82 million for the first quarter of 2023.

Other long-term assets

	As of
(in millions)	March 31, 2024		December 31, 2023
Restricted cash equivalents	$	74	$	60
Operating lease right-of-use assets	430		439
Derivative assets	125		107
Investments	429		413
Licensing arrangements	22		30
Indemnification asset	175		176
Other	341		306
	$	1,596	$	1,531

Accrued expenses

	As of
(in millions)	March 31, 2024		December 31, 2023
Legal reserves	$	129	$	206
Payroll and related liabilities	749		1,051
Rebates	384		389
Contingent consideration	182		304
Other	639		696
	$	2,083	$	2,646

Other current liabilities

	As of
(in millions)	March 31, 2024		December 31, 2023
Deferred revenue	$	280	$	266
Licensing arrangements	45		49
Taxes payable	257		220
Other	246		278
	$	827	$	814

Other long-term liabilities

	As of
(in millions)	March 31, 2024		December 31, 2023
Accrued income taxes	$	466	$	470
Legal reserves	154		172
Contingent consideration	90		100
Licensing arrangements	26		41
Operating lease liabilities	382		390
Deferred revenue	314		311
Other	486		484
	$	1,919	$	1,967