Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation Adoption of new accounting pronouncements (Tables)

v3.10.0.1
Basis of Presentation Adoption of new accounting pronouncements (Tables)
 6 Months Ended
Jun. 30, 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 statements of operations was as follows:
Statements of Operations
Three months ended June 30, 2018
 
Six months ended June 30, 2018
 
(in millions)
As Reported
Balances Without Adoption of ASC 606
Effect of Change Increase/(Decrease)
As Reported
Balances Without Adoption of ASC 606
Effect of Change Increase/(Decrease)
Net revenue
$
2,083

2,062

21

4,176

4,106

70

 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
Cost of goods sold
1,286

1,287

(1
)
2,606

2,597

9

Operating
144

144

—

289

288

1

Selling, general and administrative, including transaction related costs and stock-based compensation
209

183

26

417

365

52

 
 
 
 
 
 
 
Income tax expense
(76
)
(77
)
(1
)
(155
)
(153
)
2

 
 
 
 
 
 
 
Net income
$
236

239

(3
)
443

437

6