AbbVie 2013 Annual Report Download - page 78
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The following summarizes the cash activity in the restructuring reserve for the years ended
December 31, 2013, 2012 and 2011. Restructuring reserves as of December 31, 2010 principally relates
to a restructuring plan approved by AbbVie management in 2010.
(in millions)
Accrued balance at December 31, 2010 $ 157
2011 restructuring charges 163
Payments and other adjustments (171)
Accrued balance at December 31, 2011 149
2012 restructuring charges 191
Payments and other adjustments (107)
Accrued balance at December 31, 2012 233
2013 restructuring charges 76
Payments and other adjustments (118)
Accrued balance at December 31, 2013 $ 191
Payments and other adjustments for 2013 includes 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. In 2012 and 2011, AbbVie recorded additional restructuring charges of
$69 million and $53 million, respectively, primarily for accelerated depreciation and, for 2011 only,
asset impairments.
Note 8 Debt, Credit Facilities, and Commitments and Contingencies
The following is a summary of long-term debt as of December 31, 2013 and 2012.
Effective Effective
interest rate interest rate
(in millions) in 2013(a) 2013 in 2012(a) 2012
Floating rate notes due 2015 1.14% $ 500 1.13% $ 500
1.2% notes due 2015 1.31% 3,500 1.24% 3,500
1.75% notes due 2017 1.86% 4,000 1.82% 4,000
2.0% notes due 2018 2.15% 1,000 2.12% 1,000
2.9% notes due 2022 2.97% 3,100 3.01% 3,100
4.4% notes due 2042 4.46% 2,600 4.50% 2,600
Other — 98 — 104
Fair value hedges — (432) — (81)
Unamortized bond discounts — (56) — (71)
Total long-term debt and lease obligations 14,310 14,652
Current portion 18 22
Noncurrent portion $14,292 $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
of a $10.2 billion distribution to Abbott, as provided by the terms of the separation agreement. The
debt was guaranteed by Abbott until AbbVie separated from Abbott on January 1, 2013.
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