Restructuring Plans

12 Months Ended

Dec. 31, 2015

Note 8 Restructuring Plans

AbbVie continuously evaluates its operations to identify opportunities to optimize its manufacturing and R&D operations, commercial infrastructure, and administrative costs and to respond to changes in its business environment, for example, in conjunction with the loss and expected loss of exclusivity of certain products. As a result, AbbVie management periodically approves individual restructuring plans to achieve these objectives. In 2015, 2014 and 2013, no such plans were individually material. Restructuring charges recorded in 2015, 2014 and 2013 were $138 million, $23 million, $83 million, respectively, and were primarily related to employee severance and contractual obligations. These charges were recorded in cost of products sold, R&D expenses, and SG&A expenses in the consolidated statements of earnings based on classification of the affected employees or operations.

The following summarizes the cash activity in the restructuring reserve for 2015, 2014 and 2013:

(in millions)

Accrued balance at December 31, 2012	$	233
2013 restructuring charges		76
Payments and other adjustments		(118	)

Accrued balance at December 31, 2013		191
2014 restructuring charges		16
Payments and other adjustments		(85	)

Accrued balance at December 31, 2014		122
2015 restructuring charges		126
Payments and other adjustments		(100	)

Accrued balance at December 31, 2015	$	148

Payments and other adjustments for 2013 included a $23 million reversal of a previously recorded restructuring reserve due to the company's re-evaluation of a prior year decision to exit a manufacturing facility.