AbbVie 2012 Annual Report Download - page 82
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An additional $69 million, $26 million and $7 million were subsequently recorded in 2012, 2011 and
2010, respectively, relating to these restructurings, primarily for accelerated depreciation.
Solvay Plans
In 2010, AbbVie management approved restructuring plans primarily related to the acquisition of
Solvay. This plan streamlined operations, improved efficiencies and reduced costs in certain Solvay sites
and functions as well as in certain AbbVie and Solvay commercial organizations in various countries. In
2010, AbbVie recorded a charge of $147 million, with $6 million classified in cost of products sold,
$126 million classified in R&D and $15 million classified in SG&A expenses. The following summarizes
the employee severance activity for this restructuring.
(in millions)
2010 employee severance charge $147
Payments and other adjustments (35)
Accrued balance at December 31, 2010 112
Payments and other adjustments (92)
Accrued balance at December 31, 2011 20
Payments and other adjustments (20)
Accrued balance at December 31, 2012 $ —
An additional $27 million and $17 million were recorded in 2011 and 2010, respectively, relating to this
restructuring, primarily for accelerated depreciation and asset impairments.
Note 7 Debt, Credit Facilities, and Commitments and Contingencies
Long-Term Debt
The following is a summary of long-term debt as of December 31, 2012.
Effective
interest rate
(in millions) in 2012(a) 2012
Floating rate notes due 2015 1.13% 500
1.2% notes due 2015 1.24% 3,500
1.75% notes due 2017 1.82% 4,000
2.0% notes due 2018 2.12% 1,000
2.9% notes due 2022 3.01% 3,100
4.4% notes due 2042 4.50% 2,600
Other — 104
Fair value hedges and unamortized bond discounts — (152)
Total long-term debt and lease obligations 14,652
Current portion 22
Noncurrent portion $14,630
(a) Excludes the effect of any related interest rate swaps.
In November 2012, AbbVie issued $14.7 billion aggregate principal amount of senior notes.
Approximately $3.0 billion of these senior notes were issued to Abbott as partial consideration for the
transfer of assets from Abbott to AbbVie. AbbVie used part of the net proceeds from the sale of senior
notes (other than the senior notes issued to Abbott) to finance the payment made in November 2012
76