Business Restructuring Charges

6 Months Ended

Jun. 30, 2013

Restructuring And Related Activities [Abstract]

Business Restructuring Charges

NOTE 11 – BUSINESS RESTRUCTURING CHARGES

During the six month period of June 30, 2013, activity related to our business restructuring and facility rationalization activities primarily related to the cost optimization initiatives in conjunction with the acquisition of Actavis Group and additional steps to improve our operating cost structure and achieve operating excellence and efficiencies through our Global Supply Chain Initiative (“GSCI”) as follows (in millions):

	Accrual Balance at December 31, 2012		Charged to Expense		Cash Payments			Non-cash Adjustments			Accrual Balance at June 30, 2013
Cost of sales
Severance and retention	$	14.9	$	8.2	$	(0.8	)	$	0.9		$	23.2
Product transfer costs		0.5		5.6		(5.6	)		(0.2	)		0.3
Facility decommission costs		7.3		0.1		(1.5	)		—			5.9
Accelerated depreciation		—		13.6		—			(13.6	)		—
		22.7		27.5		(7.9	)		(12.9	)		29.4
Operating expenses
Research and development		3.4		2.8		(1.4	)		(1.1	)		3.7
Accelerated depreciation R & D		—		1.8		—			(1.8	)		—
Selling, general and administrative		39.0		6.8		(22.7	)		(0.7	)		22.4
Accelerated depreciation SG&A		—		2.2		—			(2.2	)
		42.4		13.6		(24.1	)		(5.8	)		26.1
Total	$	65.1	$	41.1	$	(32.0	)	$	(18.7	)	$	55.5

Product transfer costs consist of documentation, testing and shipping costs to transfer product to other facilities. Operating expenses include severance, retention and accelerated depreciation. Retention is expensed over the service period of employees. Activity related to our business restructuring and facility rationalization activities is primarily attributable to our Actavis Pharma segment.

During the three and six months ended June 30, 2013, the Company recognized restructuring charges of $24.7 million and $41.1 million, respectively.