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OTHER FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2024
Other Financial Information [Abstract]  
OTHER FINANCIAL INFORMATION OTHER FINANCIAL INFORMATION
Accounts Receivable, Net
The following table summarizes our Accounts receivable, net:
December 31,
(in millions)20242023
Accounts receivable$5,319 $5,495 
Less: allowances for chargebacks759 679 
Less: allowances for cash discounts and other89 101 
Less: allowances for credit losses52 56 
Accounts receivable, net$4,420 $4,660 
The majority of our trade accounts receivable arises from product sales in the U.S. and Europe.
Inventories
The following table summarizes our Inventories:
December 31,
(in millions)20242023
Raw materials$1,295 $1,246 
Work in process847 847 
Finished goods1,447 1,272 
Total$3,589 $3,366 
Reported as:
Inventories$1,710 $1,787 
Other long-term assets(1)
1,879 1,578 
Total$3,589 $3,366 
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(1)     Amounts primarily consist of raw materials.
Prepaid and Other Current Assets
The following table summarizes the components of Prepaid and other current assets:
December 31,
(in millions)20242023
Prepaid taxes$480 $559 
Equity securities1,577 1,086 
Other995 728 
Prepaid and other current assets$3,052 $2,374 
Other Current Liabilities
The following table summarizes the components of Other current liabilities:
December 31,
(in millions)20242023
Compensation and employee benefits$1,228 $1,201 
Income taxes payable1,646 1,208 
Allowance for sales returns321 387 
Other2,269 2,334 
Other current liabilities$5,464 $5,130 
Accumulated Other Comprehensive Income
The following table summarizes the changes in Accumulated other comprehensive income by component, net of tax:
(in millions)Foreign Currency Translation
Available-for-Sale Debt Securities(1)
Cash Flow Hedges(2)
Total
Balance as of December 31, 2021$13 $(4)$74 $83 
Net unrealized (loss) gain, net of tax impact of $0, $0, and $20, respectively
$(11)$(30)$130 $88 
Reclassifications to net income, net of tax impact of $0, $0, and $25, respectively(3)
— 1 (171)(170)
Other comprehensive loss, net(11)(29)(41)(81)
Balance as of December 31, 2022$2 $(33)$33 $2 
Net unrealized gain (loss), net of tax impact of $0, $0, and $(2), respectively
$60 $26 $(12)$75 
Reclassifications to net income, net of tax impact of $0, $0, and $7, respectively(3)
— 2 (51)(49)
Other comprehensive income (loss), net60 28 (62)26 
Balance as of December 31, 2023$62 $(5)$(29)$28 
Net unrealized (loss) gain, net of tax impact of $0, $0, and $21, respectively
$(26)$— $149 $124 
Reclassifications to net income, net of tax impact of $0, $0, and $3, respectively(3)
— 5 (24)(19)
Other comprehensive (loss) income, net(26)5 125 104 
Balance as of December 31, 2024$36 $— $96 $132 
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(1)     Reclassifications before tax were $5 million, $2 million and $1 million and are included in Other (income) expense, net on our Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022, respectively.
(2)    Reclassifications before tax were $27 million, $58 million and $196 million and are included in Product sales on our Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022, respectively. See Note 5. Derivative Financial Instruments.
(3)    Tax impacts of reclassifications are included in Income tax expense on our Consolidated Statements of Operations.
Restructuring
During 2024, we incurred restructuring charges of $188 million, primarily related to the initiation of reductions in our commercial and R&D workforce. We recorded $98 million of these charges in Research and development expenses and $91 million of these charges in Selling, general and administrative expenses on our Consolidated Statements of Operations. As of December 31, 2024, we have recorded a liability of $93 million on our Consolidated Balance Sheets associated with these restructuring charges, a majority of which we anticipate will be paid in the next 12 months.
During 2023, we incurred restructuring charges of $527 million primarily related to changes in our manufacturing strategy which included a decision to no longer utilize certain facilities. As a result of this decision, we determined that the related assets were fully impaired based on the difference between fair value and the carrying amount. The total charges consisted of write-offs of manufacturing assets of $381 million, write-offs of inventory of $89 million and other costs of $57 million. We recorded $479 million of these charges in Cost of goods sold, $20 million of these charges in Research and development expenses and $28 million of these charges in Selling, general and administrative expenses on our Consolidated Statements of Operations.
Other (Income) Expense, Net
The following table summarizes the components of Other (income) expense, net:
Year Ended December 31,
(in millions)202420232022
Loss from equity securities, net$274 $167 $657 
Interest income(281)(376)(106)
Other, net2 11 29 
Other (income) expense, net$(6)$(198)$581