Following the closing of the Allergan acquisition, AbbVie implemented an integration plan designed to reduce costs, integrate and optimize the combined organization and incurred total cumulative charges of $2.3 billion through 2022. These costs consisted 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 (benefits) associated with the Allergan acquisition integration plan:


	Severance and employee benefits						Other integration
year ended December 31 (in millions)	2022		2021		2020		2022		2021		2020
Cost of products sold	$	(4)	$	5	$	109	$	121	$	127	$	21
Research and development	—		—		199		23		102		177
Selling, general and administrative	(4)		64		388		403		289		237
Total charges (benefits)	$	(8)	$	69	$	696	$	547	$	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
Charges (benefits)	(8)		385
Payments and other adjustments	(116)		(409)
Accrued balance as of December 31, 2022	$	98	$	9

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 2022, 2021 and 2020, no such plans were individually significant. Restructuring charges recorded were $241 million in 2022, $59 million in 2021 and $60 million in 2020 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.


(in millions)
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
Restructuring charges	193
Payments and other adjustments	(50)
Accrued balance as of December 31, 2022	$	176