Restructuring Plans

9 Months Ended

Sep. 30, 2015

Note 7Restructuring Plans

Restructuring charges recorded for the three and nine months ended September 30, 2015 were $22 million and $50 million, respectively, and were primarily recorded in SG&A expense, R&D expense, and cost of products sold in the condensed consolidated statements of earnings. For the nine months ended September 30, 2015, restructuring charges included asset impairments of $11 million. The remaining charges primarily related to employee severance.

Restructuring charges for the three and nine months ended September 30, 2014 were $7 million and $16 million, respectively. These charges were primarily recorded in cost of products sold in the condensed consolidated statements of earnings and primarily related to employee severance.

The following summarizes the cash activity in the restructuring reserve for the nine months ended September 30, 2015:

(in millions)
Accrued balance at December 31, 2014	$ 122
2015 restructuring charges	39
Payments and other adjustments	(53	)

Accrued balance at September 30, 2015	$ 108

The restructuring reserve balance as of September 30, 2015 primarily related to restructuring plans approved in years prior to 2013 to realign AbbVie’s worldwide manufacturing operations and selected commercial and R&D operations in the United States and internationally in order to reduce costs.