REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of variable consideration provisions

The following tables present the activity and ending balances of the Company’s variable consideration provisions for the three months ended March 31, 2023 and 2022.


	Three Months Ended March 31, 2023
(in millions)	Discounts and Allowances		Returns		Rebates		Chargebacks		Distribution Fees		Total
Reserve balances, January 1, 2023	$	188	$	427	$	1,023	$	196	$	76	$	1,910
Current period provisions	139		42		664		465		61		1,371
Payments and credits	(148)		(40)		(729)		(487)		(49)		(1,453)
Reserve balances, March 31, 2023	$	179	$	429	$	958	$	174	$	88	$	1,828

Included in Rebates in the table above are cooperative advertising credits due to customers of approximately $43 million and $40 million as of March 31, 2023 and January 1, 2023, respectively, which are reflected as a reduction of Trade receivables, net in the Condensed Consolidated Balance Sheets. There were no price appreciation credits during the three months ended March 31, 2023.


	Three Months Ended March 31, 2022
(in millions)	Discounts and Allowances		Returns		Rebates		Chargebacks		Distribution Fees		Total
Reserve balances, January 1, 2022	$	222	$	482	$	944	$	170	$	45	$	1,863
Current period provisions	134		19		581		471		51		1,256
Payments and credits	(162)		(54)		(599)		(359)		(53)		(1,227)
Reserve balances, March 31, 2022	$	194	$	447	$	926	$	282	$	43	$	1,892

Summary of activity in allowance for credit losses

The activity in the allowance for credit losses for trade receivables for the three months ended March 31, 2023 and 2022 is as follows.


(in millions)	2023		2022
Balance, beginning of period	$	33	$	35
Provision for expected credit losses	1		—
Write-offs charged against the allowance	(1)		—
Recoveries of amounts previously written off	3		3
Foreign exchange and other	(4)		—
Balance, end of period	$	32	$	38