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Restructuring and other cost savings initiatives | 12 Months Ended
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Dec. 31, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and other cost savings initiatives | Restructuring In 2014, we initiated a restructuring plan to invest in continuing innovation and the launch of our new pipeline molecules, while improving our cost structure. As part of the plan, we have closed facilities in Washington state and Colorado and are reducing the number of buildings we occupy at our headquarters in Thousand Oaks, California, as well as at other locations. We estimate that we will incur $825 million to $900 million of pre-tax charges in connection with our restructuring, including: (i) separation and other headcount-related costs of $560 million to $600 million with respect to staff reductions and (ii) asset-related charges of $265 million to $300 million that consist primarily of asset impairments, accelerated depreciation and other related costs resulting from the consolidation of our worldwide facilities. Through December 31, 2017, we have incurred $558 million of separation and other headcount-related costs and $239 million of net asset-related charges. In order to support our ongoing transformation and process improvement efforts, we expect that we will incur most of the remaining costs in 2018. The charges recorded during the years ended December 31, 2017 and 2016 were not material for all types of activities presented below. The following tables summarize charges recorded related to the restructuring plan by type of activity and the locations recognized within the Consolidated Statements of Income (in millions):
|  | Year ended December 31, 2015
|  | Separation costs |  | Asset impairments/ disposals |  | Accelerated depreciation |  | Other |  | Total
Cost of sales |  | $ | — |  |  | $ | — |  |  | $ | 50 |  |  | $ | 2 |  |  | $ | 52 |
Research and development |  | — |  |  | — |  |  | 36 |  |  | 28 |  |  | 64 |
Selling, general and administrative |  | — |  |  | — |  |  | 14 |  |  | 42 |  |  | 56 |
Other |  | 49 |  |  | (111 | ) |  | — |  |  | 4 |  |  | (58 | )
Total |  | $ | 49 |  |  | $ | (111 | ) |  | $ | 100 |  |  | $ | 76 |  |  | $ | 114 |
|  | Year ended December 31, 2014
|  | Separation costs |  | Asset impairments |  | Accelerated depreciation |  | Other |  | Total
Cost of sales |  | $ | — |  |  | $ | 81 |  |  | $ | 23 |  |  | $ | — |  |  | $ | 104 |
Research and development |  | — |  |  | — |  |  | 28 |  |  | 21 |  |  | 49 |
Selling, general and administrative |  | — |  |  | — |  |  | 4 |  |  | 5 |  |  | 9 |
Other |  | 377 |  |  | 6 |  |  | — |  |  | 13 |  |  | 396 |
Total |  | $ | 377 |  |  | $ | 87 |  |  | $ | 55 |  |  | $ | 39 |  |  | $ | 558 |
We recognized asset impairment and accelerated depreciation charges in connection with our decision to exit Boulder and Longmont, Colorado, and Bothell and Seattle, Washington, and in connection with the consolidation of facilities in Thousand Oaks, California. The decision to close these manufacturing and R&D facilities was based principally on optimizing the utilization of our sites in the United States, which includes an expansion of our presence in the key U.S. biotechnology hubs of South San Francisco, California, and Cambridge, Massachusetts. During the year ended December 31, 2015, we recognized gains from the sale of assets related to these site closures. The following table summarizes the expenses (excluding non-cash charges) and payments related to the restructuring plan (in millions):
| Years ended December 31,
| Separation costs |  | Other |  | Total
Restructuring liabilities as of December 31, 2013 | $ | — |  |  | $ | — |  |  | $ | — |
Expense | 353 |  |  | 32 |  |  | 385 |
Payments | (132 | ) |  | (9 | ) |  | (141 | )
Restructuring liabilities as of December 31, 2014 | 221 |  |  | 23 |  |  | 244 |
Expense | 52 |  |  | 80 |  |  | 132 |
Payments | (178 | ) |  | (80 | ) |  | (258 | )
Restructuring liabilities as of December 31, 2015 | 95 |  |  | 23 |  |  | 118 |
Expense | 6 |  |  | 13 |  |  | 19 |
Payments | (90 | ) |  | (27 | ) |  | (117 | )
Restructuring liabilities as of December 31, 2016 | 11 |  |  | 9 |  |  | 20 |
Expense | 72 |  |  | 7 |  |  | 79 |
Payments | (20 | ) |  | $ | (11 | ) |  | (31 | )
Restructuring liabilities as of December 31, 2017 | $ | 63 |  |  | $ | 5 |  |  | $ | 68 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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