Integration and Restructuring Plans

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Allergan Integration Plan

Following the closing of the Allergan acquisition, AbbVie implemented an integration plan designed to reduce costs, integrate and optimize the combined organization. To achieve these integration objectives, AbbVie expects to incur total cumulative charges of approximately $2 billion of charges through 2022. These costs will consist of severance and employee benefit costs (cash severance, non-cash severance, including accelerated equity award compensation expense, retention and other termination benefits) and other integration expenses.

The following table summarizes the charges associated with the Allergan acquisition integration plan:


	Severance and employee benefits				Other integration
year ended December 31 (in millions)	2021		2020		2021		2020
Cost of products sold	$	5	$	109	$	127	$	21
Research and development	—		199		102		177
Selling, general and administrative	64		388		289		237
Total charges	$	69	$	696	$	518	$	435

The following table summarizes the cash activity in the recorded liability associated with the integration plan:


year ended December 31 (in millions)	Severance and employee benefits		Other integration

Charges	$	594	$	435
Payments and other adjustments	(227)		(415)
Accrued balance as of December 31, 2020	$	367	$	20
Charges	65		461
Payments and other adjustments	(210)		(448)
Accrued balance as of December 31, 2021	$	222	$	33

Other Restructuring

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. As a result, AbbVie management periodically approves individual restructuring plans to achieve these objectives. In 2021, 2020 and 2019, no such plans were individually significant. Restructuring charges recorded were $59 million in 2021, $60 million in 2020 and $234 million in 2019 and were primarily related to employee severance and contractual obligations. These charges were recorded in cost of products sold, R&D expense and SG&A expenses in the consolidated statements of earnings based on the classification of the affected employees or operations.

The following table summarizes the cash activity in the restructuring reserve for 2021, 2020 and 2019:


(in millions)
Accrued balance as of December 31, 2018	$	99
Restructuring charges	219
Payments and other adjustments	(178)
Accrued balance as of December 31, 2019	140
Restructuring charges	58
Payments and other adjustments	(108)
Accrued balance as of December 31, 2020	90
Restructuring charges	54
Payments and other adjustments	(111)
Accrued balance as of December 31, 2021	$	33