Annual report pursuant to Section 13 and 15(d)

NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables)

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NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2022
Increase (Decrease) in Operating Capital [Abstract]  
Net change in operating assets and liabilities
Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities was composed of the following (in millions):
Year Ended December 31, 2022 2021 2020
(Increase) decrease in trade accounts receivable1
$ (69) $ (225) $ 882 
(Increase) decrease in inventories2
(960) (135) 99 
(Increase) decrease in prepaid expenses and other current assets 225  (241) 78 
Increase (decrease) in accounts payable and accrued expenses3
759  2,843  (860)
Increase (decrease) in accrued income taxes (360) (566) (16)
Increase (decrease) in other noncurrent liabilities4
(200) (351) 507 
Net change in operating assets and liabilities $ (605) $ 1,325  $ 690 
1The increase in trade accounts receivable in 2021 was primarily due to improved business performance. The decrease in trade accounts receivable in 2020 was primarily due to the impact of the COVID-19 pandemic and the start of our trade accounts receivable factoring program. Refer to Note 1 for additional information on our factoring program.
2The increase in inventories in 2022 was primarily due to improved business performance, higher costs and the buildup of inventory to manage potential supply chain disruptions.
3The increase in accounts payable and accrued expenses in 2021 was primarily due to an increase in trade accounts payable, higher marketing accruals, BodyArmor acquisition-related accruals and higher annual incentive accruals. The decrease in accounts payable and accrued expenses in 2020 was primarily due to the impact of the COVID-19 pandemic and lower annual incentive accruals. Refer to Note 2 for additional information regarding the BodyArmor acquisition.
4The increase in other noncurrent liabilities in 2020 was primarily due to the increase in income tax reserves related to the litigation with the IRS. Refer to Note 11.