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SUPPLEMENTAL FINANCIAL INFORMATION | 12 Months Ended
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Dec. 30, 2023
Supplemental Financial Information |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Inventories Inventories at year-end were as follows:
(In millions) |  | 2023 |  | 2022
Raw materials |  | $ | 415.4 |  |  | $ | 457.6 |
Work-in-progress |  | 238.2 |  |  | 255.1 |
Finished goods |  | 267.1 |  |  | 297.2 |
Inventories |  | $ | 920.7 |  |  | $ | 1,009.9 |
Property, Plant and Equipment, Net Major classes of property, plant and equipment, stated at cost, at year-end were as follows:
(In millions) |  | 2023 |  | 2022
Land |  | $ | 35.9 |  |  | $ | 29.3 |
Buildings and improvements |  | 817.9 |  |  | 781.0 |
Machinery and equipment |  | 2,799.5 |  |  | 2,667.8 |
Construction-in-progress |  | 317.1 |  |  | 269.6 |
Property, plant and equipment |  | 3,970.4 |  |  | 3,747.7 |
Accumulated depreciation |  | (2,344.6) |  |  | (2,207.5) |
Property, plant and equipment, net |  | $ | 1,625.8 |  |  | $ | 1,540.2 |
Software Capitalized software costs at year-end were as follows:
(In millions) |  | 2023 |  | 2022
Cost |  | $ | 362.4 |  |  | $ | 390.6 |
Accumulated amortization |  | (257.9) |  |  | (282.3) |
Software, net |  | $ | 104.5 |  |  | $ | 108.3 |
Software amortization expense was $23.4 million in 2023, $29.5 million in 2022 and $30.1 million in 2021. Allowance for Credit Losses Given the short-term nature of trade receivables, our allowance for credit losses is based on the financial condition of customers, the aging of receivable balances, our historical collections experience, and current and expected future macroeconomic and market conditions. Balances are written off in the period in which they are determined to be uncollectible. The activity related to our allowance for credit losses was as follows:
(In millions) |  | 2023 |  | 2022
Balance at beginning of year |  | $ | 34.4 |  |  | $ | 33.0 |
Provision for credit losses |  | 4.4 |  |  | 6.9 |
Amounts written off |  | (6.3) |  |  | (4.3) |
Other, including foreign currency translation |  | 1.9 |  |  | (1.2) |
Balance at end of year |  | $ | 34.4 |  |  | $ | 34.4 |
The reversal of credit losses was $4.7 million in 2021. Research and Development Research and development expense, which was included in “Marketing, general and administrative expense” in the Consolidated Statements of Income, was as follows:
(In millions) |  | 2023 |  | 2022 |  | 2021
Research and development expense |  | $ | 135.8 |  |  | $ | 136.1 |  |  | $ | 136.6 |
Supplemental Cash Flow Information Cash paid for interest and income taxes was as follows:
(In millions) |  | 2023 |  | 2022 |  | 2021
Interest |  | $ | 109.9 |  |  | $ | 80.9 |  |  | $ | 62.8 |
Income taxes, net of refunds |  | 234.9 |  |  | 204.8 |  |  | 253.4 |
Foreign Currency Effects Gains and losses resulting from foreign currency transactions are included in income in the period incurred. Transactions in foreign currencies (including receivables, payables and loans denominated in currencies other than the functional currency), including hedging impacts, were not material in 2023, 2022 or 2021. Deferred Revenue Deferred revenue primarily relates to constrained variable consideration on supply agreements for sales of products, as well as to payments received in advance of performance under a contract. Deferred revenue is recognized as revenue as or when we perform under a contract. The following table shows the amounts and balance sheet locations of deferred revenue as of December 30, 2023 and December 31, 2022:
(In millions) |  | December 30, 2023 |  | December 31, 2022
Other current liabilities |  | $ | 18.1 |  |  | $ | 22.2 |
Long-term retirement benefits and other liabilities |  | 1.3 |  |  | 2.1 |
Total deferred revenue |  | $ | 19.4 |  |  | $ | 24.3 |
Revenue recognized from amounts included in deferred revenue as of December 31, 2022 was $21.0 million in 2023. Revenue recognized from amounts included in deferred revenue as of January 1, 2022 was $23.5 million in 2022. Revenue recognized from amounts included in deferred revenue as of January 2, 2021 was $18.4 million in 2021. This revenue was included in “Net sales” in the Consolidated Statements of Income. Supplier Finance Programs We have agreements with third-party financial institutions to facilitate payments to suppliers. These third-party financial institutions offer voluntary supply chain finance programs that enable certain of our suppliers, at the supplier’s sole discretion, to sell our payment obligations to a financial institution on terms directly negotiated with the financial institution. Participating suppliers decide which payment obligations are sold to the financial institution and we have no economic interest in a supplier’s decision to sell these payment obligations. We make payments to the financial institution on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. Our obligations to our suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers' decisions to sell amounts under these arrangements. Amounts due under our supply chain finance programs are included in accounts payable on our Consolidated Balance Sheets and activities related to these programs are presented as operating activities in our Consolidated Statements of Cash Flows. As of December 30, 2023 and December 31, 2022, the amounts due to financial institutions for suppliers that participate in these programs were $397.4 million and $430.1 million, respectively.

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