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SUPPLEMENTAL FINANCIAL INFORMATION | 6 Months Ended
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Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Allowance for Doubtful Accounts The following table is a summary of the changes in our allowance for doubtful accounts for the three and six months ended June 30, 2023 and 2022.
| Three months ended June 30, | Six months ended June 30,
(in millions) | 2023 | 2022 | 2023 | 2022
Balance at beginning of period | $ | 122 |  | $ | 129 |  | $ | 114 |  | $ | 122 |
Charged to costs and expenses | 9 |  | 3 |  | 16 |  | 9 |
Write-offs | (5) |  | (1) |  | (6) |  | (2) |
Currency translation adjustments | 2 |  | (6) |  | 4 |  | (4) |
Balance at end of period | $ | 128 |  | $ | 125 |  | $ | 128 |  | $ | 125 |
Inventories
(in millions) | June 30, 2023 | December 31, 2022
Raw materials | $ | 742 |  | $ | 698 |
Work in process | 316 |  | 294 |
Finished goods | 1,839 |  | 1,687 |
Inventories | $ | 2,897 |  | $ | 2,679 |
Property, Plant and Equipment, Net
(in millions) | June 30, 2023 | December 31, 2022
Property, plant and equipment, at cost | $ | 11,028 |  | $ | 10,780 |
Accumulated depreciation | (6,534) |  | (6,085) |
Property, plant and equipment, net | $ | 4,494 |  | $ | 4,695 |
Impairment of Manufacturing Facility Our manufacturing facility in Opelika, Alabama is one of three Baxter manufacturing facilities that currently produce dialyzers used in hemodialysis (HD) treatments. The current competitive environment has increased the global supply of those products and, in connection with our initiatives to streamline our manufacturing footprint and improve our profitability, we have made the decision to cease production of dialyzers at the Opelika facility near the end of 2023. We believe that there is more than adequate availability of dialyzers in the United States and globally, and we intend to continue to manufacture those products at volumes aligned with the related market demand at our other manufacturing facilities that currently produce them. We review the carrying amounts of long-lived assets used in operations, other than goodwill and intangible assets not subject to amortization, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating recoverability, we group assets and liabilities at the lowest level such that the identified cash flows relating to the group are largely independent of other assets and liabilities. We then compare the carrying amounts of the assets (or asset groups) with the related estimated undiscounted future cash flows. In the event an asset (or asset group) is not recoverable, an impairment charge is recorded as the amount by which its carrying amount exceeds its fair value. As a result of our decision to cease dialyzer production at this manufacturing facility, we performed a trigger-based recoverability assessment of its long-lived assets, which consist of a building and manufacturing equipment, including specialized equipment used in the production of dialyzers. The carrying amount of that asset group exceeded the estimated undiscounted cash flows expected to be generated, and we recognized an impairment charge of $243 million, classified within cost of sales in the accompanying condensed consolidated statements of income (loss), during the second quarter of 2023 to reduce the carrying amounts to their estimated fair values. The fair values of the building and manufacturing equipment tested for impairment during the second quarter of 2023 were determined based on transaction prices of comparable assets (a market approach). Significant assumptions used in the determination of the fair values included the identification of representative comparable assets. Our long-lived asset fair value measurements are classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs. Interest Expense, Net
| Three months ended June 30, |  | Six months ended June 30,
(in millions) | 2023 | 2022 |  | 2023 | 2022
Interest expense, net of capitalized interest | $ | 132 |  | $ | 93 |  |  | $ | 259 |  | $ | 181 |
Interest income | (8) |  | (4) |  |  | (18) |  | (7) |
Interest expense, net | $ | 124 |  | $ | 89 |  |  | $ | 241 |  | $ | 174 |
Other (Income) Expense, Net
| Three months ended June 30, |  | Six months ended June 30,
(in millions) | 2023 | 2022 |  | 2023 | 2022
Foreign exchange (gains) losses, net | $ | 22 |  | $ | (15) |  |  | $ | 36 |  | $ | (26) |
Pension and other postretirement benefit plans | (11) |  | (7) |  |  | (21) |  | (12) |
Pension curtailment | — |  | (11) |  |  | — |  | (11) |
Change in fair value of marketable equity securities | 11 |  | (8) |  |  | 6 |  | (8) |
Non-marketable investment impairments | 23 |  | — |  |  | 23 |  | — |
Other, net | (3) |  | (3) |  |  | (4) |  | (3) |
Other (income) expense, net | $ | 42 |  | $ | (44) |  |  | $ | 40 |  | $ | (60) |
Non-Cash Operating and Investing Activities Right-of-use operating lease assets obtained in exchange for lease obligations for the six months ended June 30, 2023 and 2022 were $45 million and $23 million, respectively. Purchases of property, plant and equipment included in accounts payable as of June 30, 2023 and 2022 were $57 million and $62 million, respectively. Unsettled share repurchases included in accrued expenses and other current liabilities as of June 30, 2022 were $8 million

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