Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation (Tables)

v3.8.0.1
Basis of Presentation (Tables)
 3 Months Ended
Mar. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The cumulative effect of the changes due to the adoption of ASC 606 and ASU No. 2016-16 were as follows:
(in millions)
Balance at December 31, 2017
Adjustments Due to ASC 606
Adjustments Due to ASU 2016-16
Balance at January 1, 2018
Assets:
 
 
 
 
Inventories
$
1,019

$
(22
)
$
—

$
997

Prepaid expenses and other current assets
51

—

(1
)
50

 
 
 
 
 
Liabilities:
 
 
 
 
Accrued liabilities
872

(36
)
—

836

 
 
 
 
 
Equity:
 
 
 
 
Accumulated deficit
(2,772
)
14

(1
)
(2,759
)

In accordance with the new revenue standard requirements, the impact of adoption on our condensed consolidated statement of operations was as follows:

Statement of Operations
Three months ended March 31, 2018
 
(in millions)
As Reported
Balances Without Adoption of ASC 606
Effect of Change Increase/(Decrease)
Net revenue
$
2,093

$
2,044

$
49

 
 
 
 
Costs and expenses:
 
 
 
Cost of goods sold
1,320

1,310

10

Operating
145

144

1

Selling, general and administrative, including transaction related costs and stock-based compensation
208

182

26

 
 
 
 
Income tax expense
(79
)
(76
)
3

 
 
 
 
Net income
207

198

9