SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of estimated useful lives of property, plant and equipment

Depreciation is calculated using the straight-line method, commencing when the assets become available for productive use, based on the following estimated useful lives:



Land improvements		15 - 30 years
Buildings and improvements		Up to 40 years
Machinery and equipment		3 - 20 years
Other equipment		3 - 10 years
Equipment on operating lease		Up to 5 years
Leasehold improvements		Lesser of term of lease or 10 years

Schedule of estimated useful lives of intangible assets

Amortization is calculated primarily using the straight-line method based on the following estimated useful lives:



Product brands		2 - 20 years
Corporate brands		7 - 20 years
Product rights		3 - 15 years
Partner relationships		7 - 9 years
Out-licensed technology and other		8 - 10 years

Summary of variable consideration provisions

The following table presents the activity and ending balances of the Company’s variable consideration provisions for years ended December 31, 2019 and 2018.



(in millions)	Discounts and Allowances			Returns			Rebates			Chargebacks			Distribution Fees			Total
Reserve balance, January 1, 2018	$	167		$	863		$	1,094		$	274		$	148		$	2,546
Current period provision	865			293			2,551			1,966			212			5,887
Payments and credits	(857		)	(343		)	(2,621		)	(2,031		)	(197		)	(6,049		)
Reserve balance, December 31, 2018	175			813			1,024			209			163			2,384
Acquisition of Synergy	—			3			12			—			1			16
Current period provision	776			113			2,265			1,938			195			5,287
Payments and credits	(769		)	(238		)	(2,374		)	(1,979		)	(277		)	(5,637		)
Reserve balance, December 31, 2019	$	182		$	691		$	927		$	168		$	82		$	2,050