Accrual for settlement related to bictegravir litigation

  
8.    OTHER FINANCIAL INFORMATIONAccounts receivable, netThe following table summarizes our Accounts receivable, net:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions) |  | September 30, 2022 |  | December 31, 2021 |
| Accounts receivable |  | $ | 5,006  |  |  | $ | 5,278  |  |
| Less: chargebacks |  | 514  |  |  | 671  |  |
| Less: cash discounts and other |  | 86  |  |  | 67  |  |
| Less: allowances for credit losses |  | 51  |  |  | 47  |  |
| Accounts receivable, net |  | $ | 4,354  |  |  | $ | 4,493  |  |

InventoriesThe following table summarizes our Inventories:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions) |  | September 30, 2022 |  | December 31, 2021 |
| Raw materials |  | $ | 1,133  |  |  | $ | 1,112  |  |
| Work in process |  | 430  |  |  | 590  |  |
| Finished goods |  | 1,039  |  |  | 1,032  |  |
| Total |  | $ | 2,602  |  |  | $ | 2,734  |  |
| Reported as: |  |  |  |  |
| Inventories |  | $ | 1,463  |  |  | $ | 1,618  |  |
| Other long-term assets(1) |  | 1,138  |  |  | 1,116  |  |
| Total |  | $ | 2,602  |  |  | $ | 2,734  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)     Amounts primarily consist of raw materials.Accrued and other current liabilities The following table summarizes the components of Accrued and other current liabilities:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions) |  | September 30, 2022 |  | December 31, 2021 |
| Compensation and employee benefits |  | $ | 752  |  |  | $ | 927  |  |
| Income taxes payable |  | 902  |  |  | 539  |  |
| Allowance for sales returns |  | 392  |  |  | 499  |  |
| Accrual for settlement related to bictegravir litigation(1) |  | —  |  |  | 1,250  |  |
| Other accrued liabilities |  | 1,819  |  |  | 2,930  |  |
| Total |  | $ | 3,865  |  |  | $ | 6,145  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)     See Note 10. Commitments and Contingencies for additional information.21
