Restructuring Plans

3 Months Ended

Mar. 31, 2020

Restructuring Plans

Restructuring Plans

Note 7 — Restructuring Plans

From 2017 to 2020, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the Medical Devices segment, and Alere Inc. (Alere) into the Diagnostic Products segment, in order to leverage economies of scale and reduce costs. In the first three months of 2020, charges of $9 million were recognized, of which $3 million is recorded in Cost of products sold, $1 million is recorded in Research and development and $5 million as Selling, general and administrative expense.  The following summarizes the activity for the first three months of 2020 related to these actions and the status of the related accrual as of March 31, 2020:

(in millions)
Accrued balance at December 31, 2019	$	46
Restructuring charges recorded in 2020		9
Payments and other adjustments		(18)
Accrued balance at March 31, 2020	$	37

From 2017 to 2020, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including the nutritional, established pharmaceuticals and vascular businesses. In the first three months of 2020, charges of $23 million were recognized, of which $1 million is recorded in Cost of products sold, $1 million is recorded in Research and development and $21 million as Selling, general and administrative expense.  The following summarizes the activity for the first three months of 2020 related to these restructuring actions and the status of the related accrual as of March 31, 2020:

(in millions)
Accrued balance at December 31, 2019	$	79
Restructuring charges recorded in 2020		23
Payments and other adjustments		(8)
Accrued balance at March 31, 2020	$	94