Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35565 | |
Entity Registrant Name | AbbVie Inc. | |
Entity Central Index Key | 0001551152 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0375147 | |
Entity Address, Address Line One | 1 North Waukegan Road | |
Entity Address, City or Town | North Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60064-6400 | |
City Area Code | 847 | |
Local Phone Number | 932-7900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,476,742,215 | |
Common Stock [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ABBV | |
Security Exchange Name | NYSE | |
Common Stock [Member] | CHICAGO STOCK EXCHANGE, INC [Member] | ||
Entity Information | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ABBV | |
Security Exchange Name | CHX | |
Sec 1.375 Senior Notes Due 2024 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information | ||
Title of 12(b) Security | 1.375% Senior Notes due 2024 | |
Trading Symbol | ABBV24 | |
Security Exchange Name | NYSE | |
Sec 0.750 Senior Notes Due 2027 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information | ||
Title of 12(b) Security | 0.750% Senior Notes due 2027 | |
Trading Symbol | ABBV27 | |
Security Exchange Name | NYSE | |
Sec 2.125 Senior Notes due 2028 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information | ||
Title of 12(b) Security | 2.125% Senior Notes due 2028 | |
Trading Symbol | ABBV28 | |
Security Exchange Name | NYSE | |
Sec 1.250 Senior Notes due 2031 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information | ||
Title of 12(b) Security | 1.250% Senior Notes due 2031 | |
Trading Symbol | ABBV31 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net revenues | $ 8,619 | $ 7,828 |
Cost of products sold | 1,942 | 1,694 |
Selling, general and administrative | 1,695 | 1,680 |
Research and development | 1,379 | 1,289 |
Acquired in-process research and development | 0 | 155 |
Total operating costs and expenses | 5,016 | 4,818 |
Operating earnings | 3,603 | 3,010 |
Interest expense, net | 428 | 325 |
Net foreign exchange loss | 5 | 6 |
Other expense, net | 72 | 135 |
Earnings before income tax expense | 3,098 | 2,544 |
Income tax expense | 88 | 88 |
Net earnings | $ 3,010 | $ 2,456 |
Per share data | ||
Basic earnings per share (in dollars per share) | $ 2.02 | $ 1.65 |
Diluted earnings per share (in dollars per share) | $ 2.02 | $ 1.65 |
Weighted-average basic shares outstanding (in shares) | 1,481 | 1,480 |
Weighted-average diluted shares outstanding (in shares) | 1,484 | 1,483 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 3,010 | $ 2,456 |
Foreign currency translation adjustments, net of tax expense (benefit) of $(8) for the three months ended March 31, 2020 and $1 for the three months ended March 31, 2019 | (227) | (103) |
Net investment hedging activities, net of tax expense (benefit) of $20 for the three months ended March 31, 2020 and $19 for the three months ended March 31, 2019 | 72 | 65 |
Pension and post-employment benefits, net of tax expense (benefit) of $15 for the three months ended March 31, 2020 and $6 for the three months ended March 31, 2019 | 56 | 25 |
Marketable security activities, net of tax expense (benefit) of $— for the three months ended March 31, 2020 and $— for the three months ended March 31, 2019 | 0 | 7 |
Cash flow hedging activities, net of tax expense (benefit) of $(2) for the three months ended March 31, 2020 and $(7) for the three months ended March 31, 2019 | (2) | (30) |
Other comprehensive loss | (101) | (36) |
Comprehensive income | $ 2,909 | $ 2,420 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax expense (benefit) | $ (8) | $ 1 |
Net investment hedging activities, tax expense (benefit) | 20 | 19 |
Pension and post-employment benefits, tax expense (benefit) | 15 | 6 |
Marketable security activities, tax expense (benefit) | 0 | 0 |
Cash flow hedging activities, tax expense (benefit) | $ (2) | $ (7) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and equivalents | $ 41,142 | $ 39,924 |
Accounts receivable, net | 6,362 | 5,428 |
Inventories | 1,844 | 1,813 |
Prepaid expenses and other | 2,410 | 2,354 |
Total current assets | 51,758 | 49,519 |
Investments | 78 | 93 |
Property and equipment, net | 2,961 | 2,962 |
Intangible assets, net | 18,203 | 18,649 |
Goodwill | 15,561 | 15,604 |
Other assets | 2,638 | 2,288 |
Total assets | 91,199 | 89,115 |
Current liabilities | ||
Short-term borrowings | 6 | 0 |
Current portion of long-term debt and finance lease obligations | 3,756 | 3,753 |
Accounts payable and accrued liabilities | 12,709 | 11,832 |
Total current liabilities | 16,471 | 15,585 |
Long-term debt and finance lease obligations | 63,284 | 62,975 |
Deferred income taxes | 959 | 1,130 |
Other long-term liabilities | 17,900 | 17,597 |
Commitments and contingencies | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,786,240,964 shares issued as of March 31, 2020 and 1,781,582,608 as of December 31, 2019 | 18 | 18 |
Common stock held in treasury, at cost, 309,566,303 shares as of March 31, 2020 and 302,671,146 as of December 31, 2019 | (25,110) | (24,504) |
Additional paid-in capital | 15,401 | 15,193 |
Retained earnings | 5,973 | 4,717 |
Accumulated other comprehensive loss | (3,697) | (3,596) |
Total stockholders’ equity (deficit) | (7,415) | (8,172) |
Total liabilities and equity | $ 91,199 | $ 89,115 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Common stock, issued (in shares) | 1,786,240,964 | 1,781,582,608 |
Common stock held in treasury, at cost (in shares) | 309,566,303 | 302,671,146 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock | Treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Beginning balance at Dec. 31, 2018 | $ (8,446) | $ 18 | $ (24,108) | $ 14,756 | $ 3,368 | $ (2,480) |
Beginning balance (in shares) at Dec. 31, 2018 | 1,479 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 2,456 | $ 0 | 0 | 0 | 2,456 | 0 |
Other comprehensive loss, net of tax | (36) | 0 | 0 | 0 | 0 | (36) |
Dividends declared | (1,590) | 0 | 0 | 0 | (1,590) | 0 |
Purchases of treasury stock | (419) | $ 0 | (419) | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (5) | |||||
Stock-based compensation plans and other | 209 | $ 0 | 25 | 184 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 4 | |||||
Ending balance at Mar. 31, 2019 | (7,826) | $ 18 | (24,502) | 14,940 | 4,234 | (2,516) |
Ending balance (in shares) at Mar. 31, 2019 | 1,478 | |||||
Beginning balance at Dec. 31, 2019 | (8,172) | $ 18 | (24,504) | 15,193 | 4,717 | (3,596) |
Beginning balance (in shares) at Dec. 31, 2019 | 1,479 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 3,010 | $ 0 | 0 | 0 | 3,010 | 0 |
Other comprehensive loss, net of tax | (101) | 0 | 0 | 0 | 0 | (101) |
Dividends declared | (1,754) | 0 | 0 | 0 | (1,754) | 0 |
Purchases of treasury stock | (643) | $ 0 | (643) | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (7) | |||||
Stock-based compensation plans and other | 245 | $ 0 | 37 | 208 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 5 | |||||
Ending balance at Mar. 31, 2020 | $ (7,415) | $ 18 | $ (25,110) | $ 15,401 | $ 5,973 | $ (3,697) |
Ending balance (in shares) at Mar. 31, 2020 | 1,477 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net earnings | $ 3,010 | $ 2,456 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Depreciation | 115 | 118 |
Amortization of intangible assets | 444 | 385 |
Change in fair value of contingent consideration liabilities | 72 | 169 |
Stock-based compensation | 219 | 189 |
Upfront costs and milestones related to collaborations | 40 | 195 |
Other, net | 1 | (33) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,025) | (316) |
Inventories | (107) | (128) |
Prepaid expenses and other assets | (19) | (112) |
Accounts payable and other liabilities | 1,065 | 94 |
Cash flows from operating activities | 3,815 | 3,017 |
Cash flows from investing activities | ||
Acquisitions and investments | (12) | (320) |
Acquisitions of property and equipment | (125) | (107) |
Purchases of investment securities | (13) | (194) |
Sales and maturities of investment securities | 26 | 594 |
Other | (5) | 0 |
Cash flows from investing activities | (129) | (27) |
Cash flows from financing activities | ||
Net change in commercial paper borrowings | 0 | (200) |
Repayments of other short-term borrowings | 0 | (3,000) |
Dividends paid | (1,763) | (1,588) |
Purchases of treasury stock | (643) | (620) |
Proceeds from the exercise of stock options | 12 | 4 |
Payments of contingent consideration liabilities | (53) | 0 |
Other, net | 25 | 21 |
Cash flows from financing activities | (2,422) | (5,383) |
Effect of exchange rate changes on cash and equivalents | (46) | 1 |
Net change in cash and equivalents | 1,218 | (2,392) |
Cash and equivalents, beginning of period | 39,924 | 7,289 |
Cash and equivalents, end of period | $ 41,142 | $ 4,897 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Historical Presentation The unaudited interim condensed consolidated financial statements of AbbVie Inc. (AbbVie or the company) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements and notes included in the company’s Annual Report on Form 10-K for the year ended December 31, 2019 . It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of the company’s financial position and operating results. Net revenues and net earnings for any interim period are not necessarily indicative of future or annual results. Certain reclassifications were made to conform the prior period interim condensed consolidated financial statements to the current period presentation. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU No. 2016-13 In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) . The standard changes how credit losses are measured for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. AbbVie adopted the standard in the first quarter of 2020. The adoption did not have a material impact on the company's consolidated financial statements. Upon adoption of the standard, accounts receivable are stated at amortized cost less allowance for credit losses. The allowance for credit losses reflects the best estimate of future losses over the contractual life of outstanding accounts receivable and is determined on the basis of historical experience, specific allowances for known troubled accounts, other currently available information including customer financial condition, and both current and forecasted economic conditions. The allowance for credit losses was $46 million at March 31, 2020 . There were no significant changes in credit loss risk factors that impacted the company's recorded allowance during the three months ended March 31, 2020 . Recent Accounting Pronouncements Not Yet Adopted ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) . The standard includes simplifications related to accounting for income taxes including removing certain exceptions related to the approach for intraperiod tax allocation and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for AbbVie starting with the first quarter of 2021. AbbVie is currently assessing the impact of this guidance on its consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Financial Information | |
Supplemental Financial Information | Supplemental Financial Information Interest Expense, Net Three months ended (in millions) 2020 2019 Interest expense $ 563 $ 387 Interest income (135 ) (62 ) Interest expense, net $ 428 $ 325 Inventories (in millions) March 31, 2020 December 31, 2019 Finished goods $ 546 $ 485 Work-in-process 932 942 Raw materials 366 386 Inventories $ 1,844 $ 1,813 Property and Equipment (in millions) March 31, 2020 December 31, 2019 Property and equipment, gross $ 8,250 $ 8,188 Accumulated depreciation (5,289 ) (5,226 ) Property and equipment, net $ 2,961 $ 2,962 Depreciation expense was $115 million for the three months ended March 31, 2020 and $118 million for the three months ended March 31, 2019 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share AbbVie grants certain restricted stock units (RSUs) that are considered to be participating securities. Due to the presence of participating securities, AbbVie calculates earnings per share (EPS) using the more dilutive of the treasury stock or the two-class method. For all periods presented, the two-class method was more dilutive. The following table summarizes the impact of the two-class method: Three months ended (in millions, except per share data) 2020 2019 Basic EPS Net earnings $ 3,010 $ 2,456 Earnings allocated to participating securities 14 12 Earnings available to common shareholders $ 2,996 $ 2,444 Weighted-average basic shares outstanding 1,481 1,480 Basic earnings per share $ 2.02 $ 1.65 Diluted EPS Net earnings $ 3,010 $ 2,456 Earnings allocated to participating securities 14 12 Earnings available to common shareholders $ 2,996 $ 2,444 Weighted-average shares of common stock outstanding 1,481 1,480 Effect of dilutive securities 3 3 Weighted-average diluted shares outstanding 1,484 1,483 Diluted earnings per share $ 2.02 $ 1.65 Certain shares issuable under stock-based compensation plans were excluded from the computation of EPS because the effect would have been antidilutive. The number of common shares excluded was insignificant for all periods presented. |
Licensing, Acquisitions, and Ot
Licensing, Acquisitions, and Other Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Licensing, Acquisitions, and Other Arrangements | |
Licensing, Acquisitions, and Other Arrangements | Licensing, Acquisitions and Other Arrangements Proposed Acquisition of Allergan plc On June 25, 2019, AbbVie announced that it entered into a definitive transaction agreement under which AbbVie will acquire Allergan plc (Allergan) in a cash and stock transaction for a transaction equity value of approximately $63 billion , based on the closing price of AbbVie’s common stock of $78.45 on June 24, 2019. Under the terms of the transaction agreement, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share. On October 14, 2019, Allergan shareholders approved the proposed transaction. Allergan is a global pharmaceutical leader focused on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients around the world. Allergan markets a portfolio of brands and products primarily focused on key therapeutic areas including aesthetics, eye care, neuroscience, gastroenterology and women's health. The transaction is subject to customary closing conditions and regulatory approvals. In March 2020, AbbVie and Allergan signed a consent decree agreement with the staff of the U.S. Federal Trade Commission (FTC) regarding the proposed acquisition. Under the terms of the consent decree, the companies have agreed to divest brazikumab, Allergan's IL-23 inhibitor pipeline product, to AstraZeneca and Zenpep, a treatment for exocrine pancreatic insufficiency, to Nestle. Nestle will also acquire Viokace, another pancreatic enzyme preparation, as part of the same transaction. In March 2020, AbbVie and Allergan received final approval from the European Commission to close the pending transaction which was conditional upon the divestiture of brazikumab. In May 2020, AbbVie and Allergan received final approval from the FTC and the Irish High Court to close the transaction. The transaction is expected to close in May 2020. In anticipation of the proposed acquisition, AbbVie entered into several debt and financing arrangements. See Note 8 for additional information. Other Licensing & Acquisitions Activity Cash outflows related to other acquisitions and investments totaled $12 million for the three months ended March 31, 2020 and $320 million for the three months ended March 31, 2019 . AbbVie recorded no acquired in-process research and development (IPR&D) charges for the three months ended March 31, 2020 and recorded acquired IPR&D charges of $155 million for the three months ended March 31, 2019 . |
Collaboration with Janssen Biot
Collaboration with Janssen Biotech, Inc. | 3 Months Ended |
Mar. 31, 2020 | |
Collaboration with Janssen Biotech, Inc. | |
Collaboration with Janssen Biotech, Inc. | Collaboration with Janssen Biotech, Inc. In December 2011, Pharmacyclics, a wholly-owned subsidiary of AbbVie, entered into a worldwide collaboration and license agreement with Janssen Biotech, Inc. and its affiliates (Janssen), one of the Janssen Pharmaceutical companies of Johnson & Johnson, for the joint development and commercialization of IMBRUVICA, a novel, orally active, selective covalent inhibitor of Bruton's tyrosine kinase (BTK) and certain compounds structurally related to IMBRUVICA, for oncology and other indications, excluding all immune and inflammatory mediated diseases or conditions and all psychiatric or psychological diseases or conditions, in the United States and outside the United States. The collaboration provides Janssen with an exclusive license to commercialize IMBRUVICA outside of the United States and co-exclusively with AbbVie in the United States. Both parties are responsible for the development, manufacturing and marketing of any products generated as a result of the collaboration. The collaboration has no set duration or specific expiration date and provides for potential future development, regulatory and approval milestone payments of up to $200 million to AbbVie. The collaboration also includes a cost sharing arrangement for associated collaboration activities. Except in certain cases, Janssen is responsible for approximately 60% of collaboration development costs and AbbVie is responsible for the remaining 40% of collaboration development costs. In the United States, both parties have co-exclusive rights to commercialize the products; however, AbbVie is the principal in the end-customer product sales. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of products. Sales of IMBRUVICA are included in AbbVie's net revenues . Janssen's share of profits is included in AbbVie's cost of products sold . Other costs incurred under the collaboration are reported in their respective expense line items, net of Janssen's share. Outside the United States, Janssen is responsible for and has exclusive rights to commercialize IMBRUVICA. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of products. AbbVie's share of profits is included in AbbVie's net revenues . Other costs incurred under the collaboration are reported in their respective expense line items, net of Janssen's share. The following table shows the profit and cost sharing relationship between Janssen and AbbVie: Three months ended (in millions) 2020 2019 United States - Janssen's share of profits (included in cost of products sold) $ 450 $ 386 International - AbbVie's share of profits (included in net revenues) 266 193 Global - AbbVie's share of other costs (included in respective line items) 70 72 AbbVie’s receivable from Janssen, included in accounts receivable, net, was $298 million at March 31, 2020 and $235 million at December 31, 2019 . AbbVie’s payable to Janssen, included in accounts payable and accrued liabilities, was $445 million at March 31, 2020 and $455 million at December 31, 2019 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill: (in millions) Balance as of December 31, 2019 $ 15,604 Foreign currency translation adjustments (43 ) Balance as of March 31, 2020 $ 15,561 The company performs its annual goodwill impairment assessment in the third quarter, or earlier if impairment indicators exist. As of March 31, 2020 , there were no accumulated goodwill impairment losses. Intangible Assets, Net The following table summarizes intangible assets: March 31, 2020 December 31, 2019 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 19,538 $ (6,687 ) $ 12,851 $ 19,547 $ (6,405 ) $ 13,142 License agreements 7,798 (2,446 ) 5,352 7,798 (2,291 ) 5,507 Total intangible assets, net $ 27,336 $ (9,133 ) $ 18,203 $ 27,345 $ (8,696 ) $ 18,649 Amortization expense was $444 million for the three months ended March 31, 2020 and $385 million for the three months ended March 31, 2019 . Amortization expense was included in cost of products sold in the condensed consolidated statements of earnings . No intangible asset impairment charges were recorded for the three months ended March 31, 2020 and 2019 . |
Restructuring Plans
Restructuring Plans | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plans | Restructuring Plans AbbVie recorded restructuring charges of $17 million for the three months ended March 31, 2020 and $167 million for the three months ended March 31, 2019 . The following table summarizes the cash activity in the restructuring reserve for the three months ended March 31, 2020 : (in millions) Accrued balance as of December 31, 2019 $ 140 Restructuring charges 17 Payments and other adjustments (38 ) Accrued balance as of March 31, 2020 $ 119 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measures | Financial Instruments and Fair Value Measures Risk Management Policy See Note 11 to the company's Annual Report on Form 10-K for the year ended December 31, 2019 for a summary of AbbVie's risk management policy and use of derivative instruments. Financial Instruments Various AbbVie foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany transactions denominated in a currency other than the functional currency of the local entity. These contracts, with notional amounts totaling $842 million at March 31, 2020 and $957 million at December 31, 2019 , are designated as cash flow hedges and are recorded at fair value. The durations of these forward exchange contracts were generally less than 18 months . Accumulated gains and losses as of March 31, 2020 are reclassified from accumulated other comprehensive income (AOCI) and included in cost of products sold at the time the products are sold, generally not exceeding six months from the date of settlement. In the third quarter of 2019, the company entered into treasury rate lock agreements with notional amounts totaling $10.0 billion to hedge exposure to variability in future cash flows resulting from changes in interest rates related to the issuance of long-term debt in connection with the proposed acquisition of Allergan. The treasury rate lock agreements were designated as cash flow hedges and recorded at fair value. The agreements were net settled upon issuance of the senior notes in November 2019 and the resulting net gain was recognized in other comprehensive income (loss). This gain is reclassified to interest expense, net over the term of the related debt. In the fourth quarter of 2019, the company entered into interest rate swap contracts with notional amounts totaling $2.3 billion at March 31, 2020 and December 31, 2019 . The effect of the hedge contracts is to change a floating-rate interest obligation to a fixed rate for that portion of the floating-rate debt. The contracts were designated as cash flow hedges and are recorded at fair value. Realized and unrealized gains or losses are included in AOCI and are reclassified to interest expense, net over the lives of the floating-rate debt. The company also enters into foreign currency forward exchange contracts to manage its exposure to foreign currency denominated trade payables and receivables and intercompany loans. These contracts are not designated as hedges and are recorded at fair value. Resulting gains or losses are reflected in net foreign exchange gain or loss in the condensed consolidated statements of earnings and are generally offset by losses or gains on the foreign currency exposure being managed. These contracts had notional amounts totaling $8.2 billion at March 31, 2020 and $7.1 billion at December 31, 2019 . The company also uses foreign currency forward exchange contracts or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. The company had foreign currency forward exchange contracts with notional amounts totaling €971 million , £204 million and CHF62 million as well as €3.6 billion aggregate principal amount of senior Euro notes designated as net investment hedges at March 31, 2020 and December 31, 2019 . The company uses the spot method of assessing hedge effectiveness for derivative instruments designated as net investment hedges. Realized and unrealized gains and losses from these hedges are included in AOCI and the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in interest expense, net over the life of the hedging instrument. AbbVie is a party to interest rate swap contracts designated as fair value hedges with notional amounts totaling $6.3 billion at March 31, 2020 and $10.8 billion at December 31, 2019 . The effect of the hedge contracts is to change a fixed-rate interest obligation to a floating rate for that portion of the debt. AbbVie records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount. No amounts are excluded from the assessment of effectiveness for cash flow hedges or fair value hedges. The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets : Fair value – Fair value – (in millions) Balance sheet caption March 31, 2020 December 31, 2019 Balance sheet caption March 31, 2020 December 31, 2019 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 35 $ 3 Accounts payable and accrued liabilities $ — $ 14 Designated as cash flow hedges Other assets 2 — Other long-term liabilities — — Designated as net investment hedges Prepaid expenses and other 22 — Accounts payable and accrued liabilities 1 24 Not designated as hedges Prepaid expenses and other 43 19 Accounts payable and accrued liabilities 12 18 Interest rate swap contracts Designated as cash flow hedges Other assets — 3 Other long-term liabilities 44 — Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities — 2 Designated as fair value hedges Other assets 133 28 Other long-term liabilities — 74 Total derivatives $ 235 $ 53 $ 57 $ 132 While certain derivatives are subject to netting arrangements with the company’s counterparties, the company does not offset derivative assets and liabilities within the condensed consolidated balance sheets . The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): Three months ended (in millions) 2020 2019 Foreign currency forward exchange contracts Designated as cash flow hedges $ 49 $ 3 Designated as net investment hedges 40 — Interest rate swap contracts designated as cash flow hedges (46 ) — Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax gains of $34 million into cost of products sold for foreign currency cash flow hedges, pre-tax losses of $2 million into interest expense, net for interest rate swap cash flow hedges and pre-tax gains of $24 million into interest expense, net for treasury rate lock agreement cash flow hedges during the next 12 months. Related to AbbVie’s non-derivative, foreign currency denominated debt designated as net investment hedges, the company recognized in other comprehensive income (loss) pre-tax gains of $60 million for the three months ended March 31, 2020 and $84 million for the three months ended March 31, 2019 . The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings , including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI. Three months ended (in millions) Statement of earnings caption 2020 2019 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ — $ 40 Designated as net investment hedges Interest expense, net 8 — Not designated as hedges Net foreign exchange loss 2 15 Treasury rate lock agreements designated as cash flow hedges Interest expense, net 6 — Interest rate swap contracts Designated as cash flow hedges Interest expense, net 1 — Designated as fair value hedges Interest expense, net 360 112 Debt designated as hedged item in fair value hedges Interest expense, net (360 ) (112 ) Fair Value Measures The fair value hierarchy consists of the following three levels: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access; • Level 2 – Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and • Level 3 – Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company’s management about the assumptions market participants would use in pricing the asset or liability. The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of March 31, 2020 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 41,142 $ 1,272 $ 39,870 $ — Debt securities 3 — 3 — Interest rate swap contracts 133 — 133 — Foreign currency contracts 102 — 102 — Total assets $ 41,380 $ 1,272 $ 40,108 $ — Liabilities Interest rate swap contracts $ 44 $ — $ 44 $ — Foreign currency contracts 13 — 13 — Contingent consideration 7,359 — — 7,359 Total liabilities $ 7,416 $ — $ 57 $ 7,359 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of December 31, 2019 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 39,924 $ 1,542 $ 38,382 $ — Debt securities 3 — 3 — Equity securities 24 24 — — Interest rate swap contracts 31 — 31 — Foreign currency contracts 22 — 22 — Total assets $ 40,004 $ 1,566 $ 38,438 $ — Liabilities Interest rate swap contracts $ 76 $ — $ 76 $ — Foreign currency contracts 56 — 56 — Contingent consideration 7,340 — — 7,340 Total liabilities $ 7,472 $ — $ 132 $ 7,340 The derivatives entered into by the company were valued using observable market inputs including published interest rate curves and both forward and spot prices for foreign currencies. The fair value measurements of the contingent consideration liabilities were determined based on significant unobservable inputs, including the discount rate, estimated probabilities and timing of achieving specified development, regulatory and commercial milestones and the estimated amount of future sales of the acquired products. The potential contingent consideration payments are estimated by applying a probability-weighted expected payment model for contingent milestone payments and a Monte Carlo simulation model for contingent royalty payments, which are then discounted to present value. Changes to the fair value of the contingent consideration liabilities can result from changes to one or a number of inputs, including discount rates, the probabilities of achieving the milestones, the time required to achieve the milestones and estimated future sales. Significant judgment is employed in determining the appropriateness of certain of these inputs. Changes to the inputs described above could have a material impact on the company's financial position and results of operations in any given period. The fair value of the company's contingent consideration liabilities as of March 31, 2020 was calculated using the following significant unobservable inputs: Range Weighted average (a) Discount rate 2.2% - 3.5% 2.8 % Probability of payment for unachieved milestones 16% - 57% 54 % Probability of payment for royalties by indication (b) 16% - 100% 89 % Projected year of payments 2020 - 2034 2027 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) Excludes early stage indications with 0% estimated probability of payment and includes approved indications with 100% probability of payment. Excluding approved indications, the estimated probability of payment ranged from 16% to 56% at March 31, 2020 . There have been no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy. The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs: Three months ended (in millions) 2020 2019 Beginning balance $ 7,340 $ 4,483 Change in fair value recognized in net earnings 72 169 Payments (53 ) — Ending balance $ 7,359 $ 4,652 The change in fair value recognized in net earnings is recorded in other expense, net in the condensed consolidated statements of earnings . Certain financial instruments are carried at historical cost or some basis other than fair value. The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of March 31, 2020 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant other observable Significant Liabilities Short-term borrowings $ 6 $ 6 $ — $ 6 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 3,756 3,757 3,750 7 — Long-term debt and finance lease obligations, excluding fair value hedges 62,974 66,176 66,157 19 — Total liabilities $ 66,736 $ 69,939 $ 69,907 $ 32 $ — The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2019 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant other observable Significant Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 3,755 $ 3,760 $ 3,753 $ 7 $ — Long-term debt and finance lease obligations, excluding fair value hedges 63,021 66,651 66,631 20 — Total liabilities $ 66,776 $ 70,411 $ 70,384 $ 27 $ — AbbVie also holds investments in equity securities that do not have readily determinable fair values. The company records these investments at cost and remeasures them to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $75 million as of March 31, 2020 and $66 million as of December 31, 2019 . No significant cumulative upward or downward adjustments have been recorded for these investments as of March 31, 2020 . Concentrations of Risk Of total net accounts receivable, three U.S. wholesalers accounted for 70% as of March 31, 2020 and 68% as of December 31, 2019 , and substantially all of AbbVie’s net revenues in the United States were to these three wholesalers. HUMIRA (adalimumab) is AbbVie’s single largest product and accounted for approximately 55% of AbbVie’s total net revenues for the three months ended March 31, 2020 and 57% for the three months ended March 31, 2019 . Debt and Credit Facilities Allergan-Related Financing In connection with the proposed acquisition of Allergan, in November 2019, the company issued $30.0 billion aggregate principal amount of unsecured senior notes. Additional information on the terms of these notes is included in the company’s Annual Report on Form 10-K for the year ended December 31, 2019 . AbbVie expects to use the net proceeds to fund a portion of the aggregate cash consideration due to Allergan shareholders in connection with the proposed acquisition described in Note 4 and to pay related fees and expenses. Pending the consummation of the proposed Allergan acquisition, the net proceeds from the offering are permitted to be invested temporarily in short-term investments. All of the notes are subject to special mandatory redemption at a redemption price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest if the proposed acquisition of Allergan is not completed by January 30, 2021 or the company notifies the trustee in respect of the notes that it will not pursue the consummation of the proposed Allergan acquisition. In July 2019, AbbVie entered into a term loan credit agreement with an aggregate principal amount of $6.0 billion consisting of a $1.5 billion 364 -day term loan tranche, a $2.5 billion three-year term loan tranche and a $2.0 billion five-year term loan tranche. No amounts were drawn under the term loan credit agreement at March 31, 2020 . In October 2019, AbbVie commenced offers to exchange any and all outstanding notes of certain series issued by Allergan for up to $15.5 billion aggregate principal amount and €3.7 billion aggregate principal amount of new notes to be issued by AbbVie and cash, subject to conditions including the closing of the pending acquisition of Allergan. Concurrently with the offers to exchange the Allergan notes for AbbVie notes, the company solicited consents to adopt certain proposed amendments to each of the indentures governing the Allergan notes to, among other things, eliminate substantially all of the restrictive covenants in such indentures. In November 2019, the company announced that the requisite number of consents had been received to adopt the proposed amendments with respect to all Allergan notes and that Allergan executed a supplemental indenture with respect to each Allergan indenture implementing the amendments, which will become operative only upon settlement of the exchange offers. The expiration of the exchange offers is expected to occur on or about the closing date of AbbVie’s acquisition of Allergan. Short-Term Borrowings There were no commercial paper borrowings outstanding as of March 31, 2020 and December 31, 2019 . There were no commercial paper borrowings issued during the three months ended March 31, 2020 . The weighted-average interest rate on commercial paper borrowings was 2.8% for the three months ended March 31, 2019 . In March 2019, AbbVie repaid its $3.0 billion 364 -day term loan credit agreement that was scheduled to mature in June 2019 . |
Post-Employment Benefits
Post-Employment Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Post-Employment Benefits | Post-Employment Benefits The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined Other post- Three months ended Three months ended (in millions) 2020 2019 2020 2019 Service cost $ 92 $ 67 $ 12 $ 6 Interest cost 61 64 9 6 Expected return on plan assets (135 ) (119 ) — — Amortization of actuarial losses and prior service cost (credit) 55 26 6 (1 ) Net periodic benefit cost $ 73 $ 38 $ 27 $ 11 The components of net periodic benefit cost other than service cost are included in other expense, net in the condensed consolidated statements of earnings . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Stock-Based Compensation Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and is summarized as follows: Three months ended (in millions) 2020 2019 Cost of products sold $ 15 $ 15 Research and development 92 72 Selling, general and administrative 112 102 Pre-tax compensation expense 219 189 Tax benefit 39 33 After-tax compensation expense $ 180 $ 156 Stock Options During the three months ended March 31, 2020 , primarily in connection with the company's annual grant, AbbVie granted 2.0 million stock options with a weighted-average grant-date fair value of $12.14 . As of March 31, 2020 , $16 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years . RSUs and Performance Shares During the three months ended March 31, 2020 , primarily in connection with the company's annual grant, AbbVie granted 5.0 million RSUs and performance shares with a weighted-average grant-date fair value of $94.29 . As of March 31, 2020 , $548 million of unrecognized compensation cost related to RSUs and performance shares is expected to be recognized as expense over approximately the next two years . Cash Dividends The following table summarizes quarterly cash dividends declared during 2020 and 2019 : 2020 2019 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 02/20/20 05/15/20 $ 1.18 11/01/19 02/14/20 $ 1.18 09/06/19 11/15/19 $ 1.07 06/20/19 08/15/19 $ 1.07 02/21/19 05/15/19 $ 1.07 Stock Repurchase Program The company's stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions at management's discretion. The program has no time limit and can be discontinued at any time. Shares repurchased under this program are recorded at acquisition cost, including related expenses, and are available for general corporate purposes. Under this authorization, AbbVie repurchased 6 million shares for $500 million during the three months ended March 31, 2020 and 4 million shares for $300 million during the three months ended March 31, 2019 . AbbVie's remaining stock repurchase authorization was approximately $3.5 billion as of March 31, 2020 . Accumulated Other Comprehensive Loss The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020 : (in millions) Foreign currency Net investment hedging activities Pension and post-employment Cash flow hedging Total Balance as of December 31, 2019 $ (928 ) $ 9 $ (2,965 ) $ 288 $ (3,596 ) Other comprehensive income (loss) before reclassifications (227 ) 78 8 4 (137 ) Net losses (gains) reclassified from accumulated other comprehensive loss — (6 ) 48 (6 ) 36 Net current-period other comprehensive income (loss) (227 ) 72 56 (2 ) (101 ) Balance as of March 31, 2020 $ (1,155 ) $ 81 $ (2,909 ) $ 286 $ (3,697 ) Other comprehensive loss for the three months ended March 31, 2020 included foreign currency translation adjustments totaling a loss of $227 million , which was principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets. The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 : (in millions) Foreign currency Net investment hedging activities Pension and post- Marketable security activities Cash flow hedging Total Balance as of December 31, 2018 $ (830 ) $ (65 ) $ (1,722 ) $ (10 ) $ 147 $ (2,480 ) Other comprehensive income (loss) before reclassifications (103 ) 65 5 7 5 (21 ) Net losses (gains) reclassified from accumulated other comprehensive loss — — 20 — (35 ) (15 ) Net current-period other comprehensive income (loss) (103 ) 65 25 7 (30 ) (36 ) Balance as of March 31, 2019 $ (933 ) $ — $ (1,697 ) $ (3 ) $ 117 $ (2,516 ) Other comprehensive loss for the three months ended March 31, 2019 included foreign currency translation adjustments totaling a loss of $103 million , which was principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets. The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended (in millions) (brackets denote gains) 2020 2019 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (8 ) $ — Tax expense 2 — Total reclassifications, net of tax $ (6 ) $ — Pension and post-employment benefits Amortization of actuarial losses and other (b) $ 61 $ 25 Tax benefit (13 ) (5 ) Total reclassifications, net of tax $ 48 $ 20 Cash flow hedging activities Gains on foreign currency forward exchange contracts (c) $ — $ (40 ) Gains on treasury rate lock agreements and interest rate swap contracts (a) (7 ) — Tax expense 1 5 Total reclassifications, net of tax $ (6 ) $ (35 ) (a) Amounts are included in interest expense, net (see Note 8 ). (b) Amounts are included in the computation of net periodic benefit cost (see Note 9 ). (c) Amounts are included in cost of products sold (see Note 8 ). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 3% for the three months ended March 31, 2020 and 2019 . The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to the benefit from foreign operations which reflects the impact of lower income tax rates in locations outside the United States, tax incentives in Puerto Rico and other foreign tax jurisdictions and business development activities . The effective tax rate for the three months ended March 31, 2020 included the beneficial tax impact of a change in tax rate in a foreign jurisdiction, while the effective tax rate for the three months ended March 31, 2019 included a tax benefit related to the favorable resolution of various tax positions . Due to the potential for resolution of federal, state and foreign examinations and the expiration of various statutes of limitations, it is reasonably possible that the company’s gross unrecognized tax benefits balance may change within the next 12 months by up to $50 million . |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Contingencies | Legal Proceedings and Contingencies AbbVie is subject to contingencies, such as various claims, legal proceedings and investigations regarding product liability, intellectual property, commercial, securities and other matters that arise in the normal course of business. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount within a probable range is recorded. The recorded accrual balance for litigation was approximately $300 million as of March 31, 2020 and $290 million as of December 31, 2019 . Initiation of new legal proceedings or a change in the status of existing proceedings may result in a change in the estimated loss accrued by AbbVie. While it is not feasible to predict the outcome of all proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on AbbVie’s consolidated financial position, results of operations or cash flows. Subject to certain exceptions specified in the separation agreement by and between Abbott Laboratories (Abbott) and AbbVie, AbbVie assumed the liability for, and control of, all pending and threatened legal matters related to its business, including liabilities for any claims or legal proceedings related to products that had been part of its business, but were discontinued prior to the distribution, as well as assumed or retained liabilities, and will indemnify Abbott for any liability arising out of or resulting from such assumed legal matters. One lawsuit against Unimed Pharmaceuticals, LLC, Solvay Pharmaceuticals, Inc. (a company Abbott acquired in February 2010 and now known as AbbVie Products LLC) and others remains pending in the United States District Court for the Northern District of Georgia for pre-trial purposes under the Multi-District Litigation (MDL) Rules as In re: AndroGel Antitrust Litigation , MDL No. 2084. This case, brought by a direct AndroGel purchaser, generally alleges Solvay's 2006 patent litigation settlement agreements and related agreements with three generic companies violate federal antitrust laws. The plaintiff seeks monetary damages and attorneys' fees. In September 2014, the FTC filed a lawsuit, FTC v. AbbVie Inc., et al. , against AbbVie and others in the United States District Court for the Eastern District of Pennsylvania, alleging that the 2011 patent litigation with two generic companies regarding AndroGel was sham litigation and the settlements of that litigation violated federal antitrust law. In May 2015, the court dismissed the FTC’s settlement-related claim. In June 2018, following a bench trial, the court found for the FTC on its sham litigation claim and ordered a disgorgement remedy of $448 million , plus prejudgment interest. The court denied the FTC’s request for injunctive relief. AbbVie is appealing the court’s liability and disgorgement rulings and, based on an assessment of the merits of that appeal, no liability has been accrued for this matter. The FTC is also appealing aspects of the court’s trial ruling and the dismissal of its settlement-related claim. In July 2018, a purported class action was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of direct AndroGel purchasers based on the trial court’s ruling in the FTC’s case. In September 2019, two individual direct AndroGel purchasers substituted in as the plaintiffs in that lawsuit and withdrew the class allegations. That case, which was pending as Rochester Drug Co-Operative, Inc., et al. v. AbbVie Inc., et al. , was settled in December 2019 and will be dismissed. In August 2019, direct purchasers of AndroGel filed a lawsuit, King Drug Co. of Florence, Inc., et al. v. AbbVie Inc., et al. , against AbbVie and others in the United States District Court for the Eastern District of Pennsylvania, making allegations similar to those in In re: AndroGel Antitrust Litigation (No. II) , MDL No. 2084 (above) and FTC v. AbbVie Inc. (above). Lawsuits are pending against AbbVie and others generally alleging that the 2005 patent litigation settlement involving Niaspan entered into between Kos Pharmaceuticals, Inc. (a company acquired by Abbott in 2006 and presently a subsidiary of AbbVie) and a generic company violates federal and state antitrust laws and state unfair and deceptive trade practices and unjust enrichment laws. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys' fees. The lawsuits consist of four individual plaintiff lawsuits and two consolidated purported class actions: one brought by Niaspan direct purchasers and one brought by Niaspan end-payers. The cases are pending in the United States District Court for the Eastern District of Pennsylvania for coordinated or consolidated pre-trial proceedings under the MDL Rules as In re: Niaspan Antitrust Litigation , MDL No. 2460. In August 2019, the court certified a class of direct purchasers of Niaspan. In October 2016, the Orange County, California District Attorney’s Office filed a lawsuit on behalf of the State of California regarding the Niaspan patent litigation settlement in Orange County Superior Court, asserting a claim under the unfair competition provision of the California Business and Professions Code seeking injunctive relief, restitution, civil penalties and attorneys’ fees. In May 2018, the California Court of Appeal ruled that the District Attorney’s Office may not bring monetary claims beyond the scope of Orange County, which the District Attorney’s Office is appealing. Between March and May 2019, 12 putative class action lawsuits were filed in the United States District Court for the Northern District of Illinois by indirect HUMIRA purchasers, alleging that AbbVie’s settlements with biosimilar manufacturers and AbbVie’s HUMIRA patent portfolio violate state and federal antitrust laws. The court consolidated these lawsuits as In re: Humira (Adalimumab) Antitrust Litigation . In July 2019, the New Mexico Attorney General filed a lawsuit, State of New Mexico ex rel. Balderas v. AbbVie Inc., et al. , in New Mexico District Court for Santa Fe County against AbbVie and other companies alleging their marketing of AndroGel violated New Mexico’s Unfair Practices Act. In September 2018, the Commissioner of the California Department of Insurance intervened in a qui tam lawsuit, State of California and Lazaro Suarez v. AbbVie Inc., et al. , brought under the California Insurance Frauds Prevention Act, in California Superior Court for Alameda County. The Department of Insurance’s complaint alleges that, through patient and reimbursement support services and other services and items of value provided in connection with HUMIRA, AbbVie caused the submission of fraudulent commercial insurance claims for HUMIRA in violation of the California statute. The complaint seeks injunctive relief, an assessment of up to three times the amount of the claims at issue, and civil penalties. In addition, a federal securities lawsuit ( Holwill v. AbbVie Inc., et al .) is pending in the United States District Court for the Northern District of Illinois) against AbbVie, its chief executive officer and former chief financial officer, alleging that reasons stated for HUMIRA sales growth in financial filings between 2013 and 2017 were misleading because they omitted the conduct alleged in the Department of Insurance’s complaint. In February 2020, a shareholder derivative lawsuit that had previously been filed in the United States District Court for the Northern District of Illinois and then voluntarily dismissed was refiled in the United States District Court for the District of Delaware. The lawsuit, Elfers v. Gonzalez, et al. , alleges that certain AbbVie directors and officers breached their fiduciary duties in connection with HUMIRA patient and reimbursement support services and other services and items of value, as alleged in the State of California case discussed above, and in connection with the announcements of results of AbbVie’s 2018 Dutch auction tender offer. In June 2016, a lawsuit, Elliott Associates, L.P., et al. v. AbbVie Inc. , was filed by five investment funds against AbbVie in the Cook County, Illinois Circuit Court alleging that AbbVie made misrepresentations and omissions in connec tion with its proposed t ransaction with Shire. Similar lawsuits were filed between July 2017 and October 2019 against AbbVie and in some instances its chief executive officer in the same court by additional investment funds. Plaintiffs seek compensatory and punitive damages. Product liability cases were filed in which plaintiffs generally allege that AbbVie and other manufacturers of TRTs did not adequately warn about risks of certain injuries, primarily heart attacks, strokes and blood clots. Approximately 3,500 claims against AbbVie are consolidated for pre-trial purposes in the United States District Court for the Northern District of Illinois under the MDL Rules as In re: Testosterone Replacement Therapy Products Liability Litigation , MDL No. 2545. Approximately 175 claims against AbbVie are pending in various state courts. Plaintiffs generally seek compensatory and punitive damages. In November 2018, AbbVie entered into a Master Settlement Agreement with the Plaintiffs’ Steering Committee in the MDL encompassing existing claims in all courts. All proceedings in pending cases are effectively stayed during the settlement administration process. Product liability cases are pending in which plaintiffs generally allege that AbbVie did not adequately warn about risk of certain injuries, primarily various birth defects, arising from use of Depakote. Approximately 100 cases are pending in the United States District Court for the Southern District of Illinois, and approximately 14 others are pending in various federal and state courts. Plaintiffs generally seek compensatory and punitive damages. Approximately eighty percent of these pending cases, plus other unfiled claims, are subject to confidential settlement agreements and are expected to be dismissed with prejudice. In March 2017, AbbVie filed a lawsuit, AbbVie Inc. v. Novartis Vaccines and Diagnostics, Inc. and Grifols Worldwide Operations Ltd., in the United States District Court for the Northern District of California against Novartis Vaccines and Grifols Worldwide seeking a declaratory judgment that 11 HCV-related patents licensed to AbbVie in 2002 are invalid. Pharmacyclics LLC, a wholly owned subsidiary of AbbVie, is seeking to enforce its patent rights relating to ibrutinib capsules (a drug Pharmacyclics sells under the trademark IMBRUVICA®). In February 2018 and March 2020, cases were filed in the United States District Court for the District of Delaware against the following defendants: Sun Pharma Global FZE and Sun Pharmaceutical Industries Ltd.; Zydus Worldwide DMCC and Cadila Healthcare Limited; and Sandoz Inc., and Lek Pharmaceuticals D.D. In each case, Pharmacyclics alleges the defendant’s proposed generic ibrutinib product infringes certain Pharmacyclics patents and seeks declaratory and injunctive relief. Janssen Biotech, Inc. which is in a global collaboration with Pharmacyclics concerning the development and marketing of IMBRUVICA, is the co-plaintiff in these suits. Pharmacyclics LLC, a wholly owned subsidiary of AbbVie, is seeking to enforce its patent rights relating to ibrutinib tablets (a drug Pharmacyclics sells under the trademark IMBRUVICA®). Cases were filed in the United States District Court for the District of Delaware in March 2019 and March 2020 against Alvogen Pine Brook LLC and Natco Pharma Ltd., and in April 2020 against Zydus Worldwide DMCC and Cadila Healthcare Limited. In each case, Pharmacyclics alleges defendants’ proposed generic ibrutinib tablet product infringes certain Pharmacyclics patents. Pharmacyclics seeks declaratory and injunctive relief. Janssen Biotech, Inc. which is in a global collaboration with Pharmacyclics concerning the development and marketing of IMBRUVICA, is the co-plaintiff in this suit. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information AbbVie operates in one business segment—pharmaceutical products. The following table details AbbVie’s worldwide net revenues: Three months ended (in millions) 2020 2019 Immunology HUMIRA United States $ 3,656 $ 3,215 International 1,047 1,231 Total $ 4,703 $ 4,446 SKYRIZI United States $ 266 $ — International 34 — Total $ 300 $ — RINVOQ United States $ 82 $ — International 4 — Total $ 86 $ — Hematologic Oncology IMBRUVICA United States $ 966 $ 829 Collaboration revenues 266 193 Total $ 1,232 $ 1,022 VENCLEXTA United States $ 201 $ 105 International 116 46 Total $ 317 $ 151 HCV MAVYRET United States $ 234 $ 403 International 325 387 Total $ 559 $ 790 VIEKIRA International $ 5 $ 25 Other Key Products Creon United States $ 276 $ 227 Lupron United States $ 195 $ 191 International 38 38 Total $ 233 $ 229 Synthroid United States $ 205 $ 182 Synagis International $ 270 $ 287 Duodopa United States $ 25 $ 22 International 99 89 Total $ 124 $ 111 Sevoflurane United States $ 16 $ 17 International 63 75 Total $ 79 $ 92 Kaletra United States $ 14 $ 13 International 72 65 Total $ 86 $ 78 ORILISSA United States $ 30 $ 13 International 1 — Total $ 31 $ 13 AndroGel United States $ 8 $ 74 All other $ 105 $ 101 Total net revenues $ 8,619 $ 7,828 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU No. 2016-13 In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) . The standard changes how credit losses are measured for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. AbbVie adopted the standard in the first quarter of 2020. The adoption did not have a material impact on the company's consolidated financial statements. Upon adoption of the standard, accounts receivable are stated at amortized cost less allowance for credit losses. The allowance for credit losses reflects the best estimate of future losses over the contractual life of outstanding accounts receivable and is determined on the basis of historical experience, specific allowances for known troubled accounts, other currently available information including customer financial condition, and both current and forecasted economic conditions. The allowance for credit losses was $46 million at March 31, 2020 . There were no significant changes in credit loss risk factors that impacted the company's recorded allowance during the three months ended March 31, 2020 . Recent Accounting Pronouncements Not Yet Adopted ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) . The standard includes simplifications related to accounting for income taxes including removing certain exceptions related to the approach for intraperiod tax allocation and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for AbbVie starting with the first quarter of 2021. AbbVie is currently assessing the impact of this guidance on its consolidated financial statements. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Financial Information | |
Schedule of interest expense, net | Interest Expense, Net Three months ended (in millions) 2020 2019 Interest expense $ 563 $ 387 Interest income (135 ) (62 ) Interest expense, net $ 428 $ 325 |
Schedule of inventories | Inventories (in millions) March 31, 2020 December 31, 2019 Finished goods $ 546 $ 485 Work-in-process 932 942 Raw materials 366 386 Inventories $ 1,844 $ 1,813 |
Schedule of property and equipment | Property and Equipment (in millions) March 31, 2020 December 31, 2019 Property and equipment, gross $ 8,250 $ 8,188 Accumulated depreciation (5,289 ) (5,226 ) Property and equipment, net $ 2,961 $ 2,962 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share, impact of two-class method | The following table summarizes the impact of the two-class method: Three months ended (in millions, except per share data) 2020 2019 Basic EPS Net earnings $ 3,010 $ 2,456 Earnings allocated to participating securities 14 12 Earnings available to common shareholders $ 2,996 $ 2,444 Weighted-average basic shares outstanding 1,481 1,480 Basic earnings per share $ 2.02 $ 1.65 Diluted EPS Net earnings $ 3,010 $ 2,456 Earnings allocated to participating securities 14 12 Earnings available to common shareholders $ 2,996 $ 2,444 Weighted-average shares of common stock outstanding 1,481 1,480 Effect of dilutive securities 3 3 Weighted-average diluted shares outstanding 1,484 1,483 Diluted earnings per share $ 2.02 $ 1.65 |
Collaboration with Janssen Bi_2
Collaboration with Janssen Biotech, Inc. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Collaboration with Janssen Biotech, Inc. | |
Schedule of profit and cost sharing relationship | The following table shows the profit and cost sharing relationship between Janssen and AbbVie: Three months ended (in millions) 2020 2019 United States - Janssen's share of profits (included in cost of products sold) $ 450 $ 386 International - AbbVie's share of profits (included in net revenues) 266 193 Global - AbbVie's share of other costs (included in respective line items) 70 72 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the carrying amount of goodwill | The following table summarizes the changes in the carrying amount of goodwill: (in millions) Balance as of December 31, 2019 $ 15,604 Foreign currency translation adjustments (43 ) Balance as of March 31, 2020 $ 15,561 |
Summary of definite-lived intangible assets | The following table summarizes intangible assets: March 31, 2020 December 31, 2019 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 19,538 $ (6,687 ) $ 12,851 $ 19,547 $ (6,405 ) $ 13,142 License agreements 7,798 (2,446 ) 5,352 7,798 (2,291 ) 5,507 Total intangible assets, net $ 27,336 $ (9,133 ) $ 18,203 $ 27,345 $ (8,696 ) $ 18,649 |
Summary of indefinite-lived intangible assets | The following table summarizes intangible assets: March 31, 2020 December 31, 2019 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 19,538 $ (6,687 ) $ 12,851 $ 19,547 $ (6,405 ) $ 13,142 License agreements 7,798 (2,446 ) 5,352 7,798 (2,291 ) 5,507 Total intangible assets, net $ 27,336 $ (9,133 ) $ 18,203 $ 27,345 $ (8,696 ) $ 18,649 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of the cash activity in the restructuring reserve | The following table summarizes the cash activity in the restructuring reserve for the three months ended March 31, 2020 : (in millions) Accrued balance as of December 31, 2019 $ 140 Restructuring charges 17 Payments and other adjustments (38 ) Accrued balance as of March 31, 2020 $ 119 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of amounts and location of derivatives on the condensed consolidated balance sheets | The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets : Fair value – Fair value – (in millions) Balance sheet caption March 31, 2020 December 31, 2019 Balance sheet caption March 31, 2020 December 31, 2019 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 35 $ 3 Accounts payable and accrued liabilities $ — $ 14 Designated as cash flow hedges Other assets 2 — Other long-term liabilities — — Designated as net investment hedges Prepaid expenses and other 22 — Accounts payable and accrued liabilities 1 24 Not designated as hedges Prepaid expenses and other 43 19 Accounts payable and accrued liabilities 12 18 Interest rate swap contracts Designated as cash flow hedges Other assets — 3 Other long-term liabilities 44 — Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities — 2 Designated as fair value hedges Other assets 133 28 Other long-term liabilities — 74 Total derivatives $ 235 $ 53 $ 57 $ 132 |
Schedule of pre-tax amounts of derivatives designated as cash flow hedges recognized in other comprehensive income (loss) | The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): Three months ended (in millions) 2020 2019 Foreign currency forward exchange contracts Designated as cash flow hedges $ 49 $ 3 Designated as net investment hedges 40 — Interest rate swap contracts designated as cash flow hedges (46 ) — |
Schedule of pre-tax amounts of derivatives designated as net investment hedges recognized in other comprehensive income (loss) | The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): Three months ended (in millions) 2020 2019 Foreign currency forward exchange contracts Designated as cash flow hedges $ 49 $ 3 Designated as net investment hedges 40 — Interest rate swap contracts designated as cash flow hedges (46 ) — |
Summary of pre-tax amounts and location of derivatives recognized in the condensed consolidated statements of earnings | The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings , including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI. Three months ended (in millions) Statement of earnings caption 2020 2019 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ — $ 40 Designated as net investment hedges Interest expense, net 8 — Not designated as hedges Net foreign exchange loss 2 15 Treasury rate lock agreements designated as cash flow hedges Interest expense, net 6 — Interest rate swap contracts Designated as cash flow hedges Interest expense, net 1 — Designated as fair value hedges Interest expense, net 360 112 Debt designated as hedged item in fair value hedges Interest expense, net (360 ) (112 ) |
Summary of bases used to measure assets and liabilities carried at fair value on a recurring basis | The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of March 31, 2020 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 41,142 $ 1,272 $ 39,870 $ — Debt securities 3 — 3 — Interest rate swap contracts 133 — 133 — Foreign currency contracts 102 — 102 — Total assets $ 41,380 $ 1,272 $ 40,108 $ — Liabilities Interest rate swap contracts $ 44 $ — $ 44 $ — Foreign currency contracts 13 — 13 — Contingent consideration 7,359 — — 7,359 Total liabilities $ 7,416 $ — $ 57 $ 7,359 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of December 31, 2019 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 39,924 $ 1,542 $ 38,382 $ — Debt securities 3 — 3 — Equity securities 24 24 — — Interest rate swap contracts 31 — 31 — Foreign currency contracts 22 — 22 — Total assets $ 40,004 $ 1,566 $ 38,438 $ — Liabilities Interest rate swap contracts $ 76 $ — $ 76 $ — Foreign currency contracts 56 — 56 — Contingent consideration 7,340 — — 7,340 Total liabilities $ 7,472 $ — $ 132 $ 7,340 |
Summary of significant level 3 unobservable inputs | The fair value of the company's contingent consideration liabilities as of March 31, 2020 was calculated using the following significant unobservable inputs: Range Weighted average (a) Discount rate 2.2% - 3.5% 2.8 % Probability of payment for unachieved milestones 16% - 57% 54 % Probability of payment for royalties by indication (b) 16% - 100% 89 % Projected year of payments 2020 - 2034 2027 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) Excludes early stage indications with 0% estimated probability of payment and includes approved indications with 100% probability of payment. Excluding approved indications, the estimated probability of payment ranged from 16% to 56% at March 31, 2020 . |
Schedule of changes in fair value of Level 3 inputs | The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs: Three months ended (in millions) 2020 2019 Beginning balance $ 7,340 $ 4,483 Change in fair value recognized in net earnings 72 169 Payments (53 ) — Ending balance $ 7,359 $ 4,652 |
Schedule of book values, approximate fair values and bases used to measure certain financial instruments | The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of March 31, 2020 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant other observable Significant Liabilities Short-term borrowings $ 6 $ 6 $ — $ 6 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 3,756 3,757 3,750 7 — Long-term debt and finance lease obligations, excluding fair value hedges 62,974 66,176 66,157 19 — Total liabilities $ 66,736 $ 69,939 $ 69,907 $ 32 $ — The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2019 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant other observable Significant Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 3,755 $ 3,760 $ 3,753 $ 7 $ — Long-term debt and finance lease obligations, excluding fair value hedges 63,021 66,651 66,631 20 — Total liabilities $ 66,776 $ 70,411 $ 70,384 $ 27 $ — |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Summary of net periodic benefit costs relating to the company's defined benefit and other post-employment plans | The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined Other post- Three months ended Three months ended (in millions) 2020 2019 2020 2019 Service cost $ 92 $ 67 $ 12 $ 6 Interest cost 61 64 9 6 Expected return on plan assets (135 ) (119 ) — — Amortization of actuarial losses and prior service cost (credit) 55 26 6 (1 ) Net periodic benefit cost $ 73 $ 38 $ 27 $ 11 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of share-based compensation expense | Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and is summarized as follows: Three months ended (in millions) 2020 2019 Cost of products sold $ 15 $ 15 Research and development 92 72 Selling, general and administrative 112 102 Pre-tax compensation expense 219 189 Tax benefit 39 33 After-tax compensation expense $ 180 $ 156 |
Summary of quarterly cash dividends | The following table summarizes quarterly cash dividends declared during 2020 and 2019 : 2020 2019 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 02/20/20 05/15/20 $ 1.18 11/01/19 02/14/20 $ 1.18 09/06/19 11/15/19 $ 1.07 06/20/19 08/15/19 $ 1.07 02/21/19 05/15/19 $ 1.07 |
Summary of changes in balances of each component of accumulated other comprehensive loss | The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020 : (in millions) Foreign currency Net investment hedging activities Pension and post-employment Cash flow hedging Total Balance as of December 31, 2019 $ (928 ) $ 9 $ (2,965 ) $ 288 $ (3,596 ) Other comprehensive income (loss) before reclassifications (227 ) 78 8 4 (137 ) Net losses (gains) reclassified from accumulated other comprehensive loss — (6 ) 48 (6 ) 36 Net current-period other comprehensive income (loss) (227 ) 72 56 (2 ) (101 ) Balance as of March 31, 2020 $ (1,155 ) $ 81 $ (2,909 ) $ 286 $ (3,697 ) The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 : (in millions) Foreign currency Net investment hedging activities Pension and post- Marketable security activities Cash flow hedging Total Balance as of December 31, 2018 $ (830 ) $ (65 ) $ (1,722 ) $ (10 ) $ 147 $ (2,480 ) Other comprehensive income (loss) before reclassifications (103 ) 65 5 7 5 (21 ) Net losses (gains) reclassified from accumulated other comprehensive loss — — 20 — (35 ) (15 ) Net current-period other comprehensive income (loss) (103 ) 65 25 7 (30 ) (36 ) Balance as of March 31, 2019 $ (933 ) $ — $ (1,697 ) $ (3 ) $ 117 $ (2,516 ) |
Schedule of the significant amounts reclassified out of each component of accumulated other comprehensive loss | The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended (in millions) (brackets denote gains) 2020 2019 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (8 ) $ — Tax expense 2 — Total reclassifications, net of tax $ (6 ) $ — Pension and post-employment benefits Amortization of actuarial losses and other (b) $ 61 $ 25 Tax benefit (13 ) (5 ) Total reclassifications, net of tax $ 48 $ 20 Cash flow hedging activities Gains on foreign currency forward exchange contracts (c) $ — $ (40 ) Gains on treasury rate lock agreements and interest rate swap contracts (a) (7 ) — Tax expense 1 5 Total reclassifications, net of tax $ (6 ) $ (35 ) (a) Amounts are included in interest expense, net (see Note 8 ). (b) Amounts are included in the computation of net periodic benefit cost (see Note 9 ). (c) Amounts are included in cost of products sold (see Note 8 ). |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of worldwide net revenues | AbbVie operates in one business segment—pharmaceutical products. The following table details AbbVie’s worldwide net revenues: Three months ended (in millions) 2020 2019 Immunology HUMIRA United States $ 3,656 $ 3,215 International 1,047 1,231 Total $ 4,703 $ 4,446 SKYRIZI United States $ 266 $ — International 34 — Total $ 300 $ — RINVOQ United States $ 82 $ — International 4 — Total $ 86 $ — Hematologic Oncology IMBRUVICA United States $ 966 $ 829 Collaboration revenues 266 193 Total $ 1,232 $ 1,022 VENCLEXTA United States $ 201 $ 105 International 116 46 Total $ 317 $ 151 HCV MAVYRET United States $ 234 $ 403 International 325 387 Total $ 559 $ 790 VIEKIRA International $ 5 $ 25 Other Key Products Creon United States $ 276 $ 227 Lupron United States $ 195 $ 191 International 38 38 Total $ 233 $ 229 Synthroid United States $ 205 $ 182 Synagis International $ 270 $ 287 Duodopa United States $ 25 $ 22 International 99 89 Total $ 124 $ 111 Sevoflurane United States $ 16 $ 17 International 63 75 Total $ 79 $ 92 Kaletra United States $ 14 $ 13 International 72 65 Total $ 86 $ 78 ORILISSA United States $ 30 $ 13 International 1 — Total $ 31 $ 13 AndroGel United States $ 8 $ 74 All other $ 105 $ 101 Total net revenues $ 8,619 $ 7,828 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Mar. 31, 2020USD ($) |
Accounting Standards Update No. 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounts receivable, allowance for credit losses | $ 46 |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Interest Expense, Net | |||
Interest expense | $ 563 | $ 387 | |
Interest income | (135) | (62) | |
Interest expense, net | 428 | 325 | |
Inventories | |||
Finished goods | 546 | $ 485 | |
Work-in-process | 932 | 942 | |
Raw materials | 366 | 386 | |
Inventories | 1,844 | 1,813 | |
Property and Equipment | |||
Property and equipment, gross | 8,250 | 8,188 | |
Accumulated depreciation | (5,289) | (5,226) | |
Property and equipment, net | 2,961 | $ 2,962 | |
Depreciation expense | $ 115 | $ 118 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic EPS | ||
Net earnings | $ 3,010 | $ 2,456 |
Earnings allocated to participating securities | 14 | 12 |
Earnings available to common shareholders | $ 2,996 | $ 2,444 |
Weighted-average basic shares outstanding (in shares) | 1,481 | 1,480 |
Basic earnings per share (in dollars per share) | $ 2.02 | $ 1.65 |
Diluted EPS | ||
Net earnings | $ 3,010 | $ 2,456 |
Earnings allocated to participating securities | 14 | 12 |
Earnings available to common shareholders | $ 2,996 | $ 2,444 |
Weighted-average basic shares outstanding (in shares) | 1,481 | 1,480 |
Effect of dilutive securities (in shares) | 3 | 3 |
Weighted-average diluted shares outstanding (in shares) | 1,484 | 1,483 |
Diluted earnings per share (in dollars per share) | $ 2.02 | $ 1.65 |
Licensing, Acquisitions, and _2
Licensing, Acquisitions, and Other Arrangements - Proposed Acquisition of Allergan plc (Details) - USD ($) $ / shares in Units, $ in Billions | 1 Months Ended | |
May 31, 2020 | Jun. 24, 2019 | |
Business Acquisition | ||
Closing price of AbbVie's common stock | $ 78.45 | |
Allergan plc | Scenario, forecast | ||
Business Acquisition | ||
Total consideration | $ 63 | |
Shares of AbbVie stock received by Allergan shareholders | 0.8660 | |
Cash per share received by Allergan shareholders | $ 120.30 |
Licensing, Acquisitions, and _3
Licensing, Acquisitions, and Other Arrangements - Other Licensing & Acquisitions Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Licensing, Acquisitions, and Other Arrangements | ||
Cash outflows related to acquisitions and investments | $ 12 | $ 320 |
Acquired in-process research and development | $ 0 | $ 155 |
Collaboration with Janssen Bi_3
Collaboration with Janssen Biotech, Inc. (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Collaborative and license agreements | |||
Accounts receivable, net | $ 6,362 | $ 5,428 | |
Accounts payable and accrued liabilities | $ 12,709 | 11,832 | |
Collaborative arrangement | |||
Collaborative and license agreements | |||
Share of collaboration development costs responsible by the entity (as a percent) | 40.00% | ||
Global - AbbVie's share of other costs (included in respective line items) | $ 70 | $ 72 | |
Collaborative arrangement | International | |||
Collaborative and license agreements | |||
International - AbbVie's share of profits (included in net revenues) | 266 | 193 | |
Janssen Biotech Inc | Collaborative arrangement | |||
Collaborative and license agreements | |||
Milestone payments | $ 200 | ||
Share of collaboration development costs responsible by Janssen (as a percent) | 60.00% | ||
Accounts receivable, net | $ 298 | 235 | |
Accounts payable and accrued liabilities | 445 | $ 455 | |
Janssen Biotech Inc | Collaborative arrangement | United States | |||
Collaborative and license agreements | |||
United States - Janssen's share of profits (included in cost of products sold) | $ 450 | $ 386 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Changes in the carrying amount of goodwill | |
Balance at the beginning of the period | $ 15,604,000,000 |
Foreign currency translation adjustments | (43,000,000) |
Balance at the end of the period | 15,561,000,000 |
Accumulated goodwill impairment losses | |
Accumulated goodwill impairment losses | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets | |||
Gross carrying amount | $ 27,336,000,000 | $ 27,345,000,000 | |
Accumulated amortization | (9,133,000,000) | (8,696,000,000) | |
Net carrying amount | 18,203,000,000 | 18,649,000,000 | |
Amortization expense | 444,000,000 | $ 385,000,000 | |
Definite-lived intangible assets impairment charges | 0 | 0 | |
Indefinite-lived intangible asset impairment charges | 0 | $ 0 | |
Developed product rights | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 19,538,000,000 | 19,547,000,000 | |
Accumulated amortization | (6,687,000,000) | (6,405,000,000) | |
Net carrying amount | 12,851,000,000 | 13,142,000,000 | |
License agreements | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 7,798,000,000 | 7,798,000,000 | |
Accumulated amortization | (2,446,000,000) | (2,291,000,000) | |
Net carrying amount | $ 5,352,000,000 | $ 5,507,000,000 |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 17 | $ 167 |
Restructuring reserve activity | ||
Accrued balance beginning of the period | 140 | |
Restructuring charges | (17) | |
Payments and other adjustments | (38) | |
Accrued balance end of the period | $ 119 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measures - Financial Instruments (Details) £ in Millions, SFr in Millions, $ in Millions | 3 Months Ended | ||||||||
Mar. 31, 2020USD ($) | Mar. 31, 2020GBP (£) | Mar. 31, 2020EUR (€) | Mar. 31, 2020CHF (SFr) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2019CHF (SFr) | Sep. 30, 2019USD ($) | |
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | $ 235 | $ 53 | |||||||
Fair value - Derivatives in liability position | 57 | 132 | |||||||
Designated as hedging instrument | Net investment hedges | Senior notes | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Principal amount of unsecured senior notes | € | € 3,600,000,000 | € 3,600,000,000 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Notional amount of derivative instruments | $ 842 | 957 | |||||||
Duration of forward exchange contracts | 18 months | ||||||||
Approximate length of time over which accumulated gains and losses will be recognized in Cost of products sold | 6 months | ||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | Prepaid expenses and other | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | $ 35 | 3 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | Accounts payable and accrued liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | 0 | 14 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | Other assets | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | 2 | 0 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | Other long-term liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | 0 | 0 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Notional amount of derivative instruments | £ 204 | € 971,000,000 | SFr 62 | £ 204 | € 971,000,000 | SFr 62 | |||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | Prepaid expenses and other | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | 22 | 0 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | Accounts payable and accrued liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | 1 | 24 | |||||||
Designated as hedging instrument | Treasury rate lock agreements | Cash flow hedges | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Notional amount of derivative instruments | $ 10,000 | ||||||||
Designated as hedging instrument | Interest rate contracts | Cash flow hedges | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Notional amount of derivative instruments | 2,300 | ||||||||
Designated as hedging instrument | Interest rate contracts | Cash flow hedges | Other assets | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | 0 | 3 | |||||||
Designated as hedging instrument | Interest rate contracts | Cash flow hedges | Other long-term liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | 44 | 0 | |||||||
Designated as hedging instrument | Interest rate contracts | Fair value hedges | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Notional amount of derivative instruments | 6,300 | 10,800 | |||||||
Designated as hedging instrument | Interest rate contracts | Fair value hedges | Prepaid expenses and other | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | 0 | 0 | |||||||
Designated as hedging instrument | Interest rate contracts | Fair value hedges | Accounts payable and accrued liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | 0 | 2 | |||||||
Designated as hedging instrument | Interest rate contracts | Fair value hedges | Other assets | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | 133 | 28 | |||||||
Designated as hedging instrument | Interest rate contracts | Fair value hedges | Other long-term liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | 0 | 74 | |||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Notional amount of derivative instruments | 8,200 | 7,100 | |||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in asset position | 43 | 19 | |||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | Accounts payable and accrued liabilities | |||||||||
Derivative instruments, notional amount and fair value | |||||||||
Fair value - Derivatives in liability position | $ 12 | $ 18 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measures - Amount Of Gain/(Loss) Recognized For Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cost of products sold | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) to be transferred into cost of products sold for foreign currency cash flow hedges during the next 12 months | $ 34 | |
Interest expense, net | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) to be transferred into interest expense, net for interest rate swap cash flow hedges during the next 12 months | (2) | |
Pre-tax gains (losses) to be transferred into interest expense, net for treasury rate lock agreement cash flow hedges during the next 12 months | 24 | |
Interest expense, net | Fair value hedges | ||
Gain (loss) on derivatives | ||
Debt designated as hedged item in fair value hedges gain (loss) recognized in the consolidated statements of earnings | (360) | $ (112) |
Designated as hedging instrument | Senior notes | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) from net investment hedge instruments recognized in other comprehensive income | 60 | 84 |
Foreign currency forward exchange contracts | Designated as hedging instrument | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | 49 | 3 |
Pre-tax gains (losses) from net investment hedge instruments recognized in other comprehensive income | 40 | 0 |
Foreign currency forward exchange contracts | Designated as hedging instrument | Cost of products sold | Cash flow hedges | ||
Gain (loss) on derivatives | ||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | 0 | 40 |
Foreign currency forward exchange contracts | Designated as hedging instrument | Interest expense, net | Net investment hedges | ||
Gain (loss) on derivatives | ||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | 8 | 0 |
Foreign currency forward exchange contracts | Not designated as hedges | Net foreign exchange loss | ||
Gain (loss) on derivatives | ||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | 2 | 15 |
Designated as fair value hedges | Designated as hedging instrument | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | (46) | 0 |
Designated as fair value hedges | Designated as hedging instrument | Interest expense, net | Cash flow hedges | ||
Gain (loss) on derivatives | ||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | 1 | 0 |
Designated as fair value hedges | Designated as hedging instrument | Interest expense, net | Fair value hedges | ||
Gain (loss) on derivatives | ||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | 360 | 112 |
Treasury rate lock agreements | Designated as hedging instrument | Interest expense, net | Cash flow hedges | ||
Gain (loss) on derivatives | ||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | $ 6 | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measures - Fair Value Measures (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Foreign currency contracts | $ 235 | $ 53 |
Liabilities | ||
Foreign currency contracts | 57 | 132 |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Total liabilities | 69,907 | 70,384 |
Fair Value, Recurring [Member] | ||
Assets | ||
Cash and equivalents | 41,142 | 39,924 |
Debt securities | 3 | 3 |
Equity securities | 24 | |
Interest rate swap contracts | 133 | 31 |
Total assets | 41,380 | 40,004 |
Liabilities | ||
Interest rate swap contracts | 44 | 76 |
Contingent consideration | 7,359 | 7,340 |
Total liabilities | 7,416 | 7,472 |
Fair Value, Recurring [Member] | Foreign currency contracts | ||
Assets | ||
Foreign currency contracts | 102 | 22 |
Liabilities | ||
Foreign currency contracts | 13 | 56 |
Fair Value, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Cash and equivalents | 1,272 | 1,542 |
Debt securities | 0 | 0 |
Equity securities | 24 | |
Interest rate swap contracts | 0 | 0 |
Total assets | 1,272 | 1,566 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) | Foreign currency contracts | ||
Assets | ||
Foreign currency contracts | 0 | 0 |
Liabilities | ||
Foreign currency contracts | 0 | 0 |
Fair Value, Recurring [Member] | Significant other observable inputs (Level 2) | ||
Assets | ||
Cash and equivalents | 39,870 | 38,382 |
Debt securities | 3 | 3 |
Equity securities | 0 | |
Interest rate swap contracts | 133 | 31 |
Total assets | 40,108 | 38,438 |
Liabilities | ||
Interest rate swap contracts | 44 | 76 |
Contingent consideration | 0 | 0 |
Total liabilities | 57 | 132 |
Fair Value, Recurring [Member] | Significant other observable inputs (Level 2) | Foreign currency contracts | ||
Assets | ||
Foreign currency contracts | 102 | 22 |
Liabilities | ||
Foreign currency contracts | 13 | 56 |
Fair Value, Recurring [Member] | Significant unobservable inputs (Level 3) | ||
Assets | ||
Cash and equivalents | 0 | 0 |
Debt securities | 0 | 0 |
Equity securities | 0 | |
Interest rate swap contracts | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Contingent consideration | 7,359 | 7,340 |
Total liabilities | 7,359 | 7,340 |
Fair Value, Recurring [Member] | Significant unobservable inputs (Level 3) | Foreign currency contracts | ||
Assets | ||
Foreign currency contracts | 0 | 0 |
Liabilities | ||
Foreign currency contracts | $ 0 | $ 0 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measures - Significant Level 3 Unobservable Inputs (Details) | Mar. 31, 2020 | |
Probability of payment for early stage indications | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0 | [1],[2] |
Probability of payment for approved indications | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 1 | [1],[2] |
Weighted average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.028 | [2] |
Weighted average | Probability of payment for unachieved milestones | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.54 | [2] |
Weighted average | Probability of payment for royalties by indication | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.89 | [1],[2] |
Weighted average | Projected year of payments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 2,027 | |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.022 | |
Minimum | Probability of payment for unachieved milestones | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.16 | |
Minimum | Probability of payment for royalties by indication | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.16 | [1] |
Minimum | Projected year of payments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 2,020 | |
Minimum | Probability of payment for royalties excluding early stage or approved indications | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.16 | [1] |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.035 | |
Maximum | Probability of payment for unachieved milestones | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.57 | |
Maximum | Probability of payment for royalties by indication | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 1 | [1] |
Maximum | Projected year of payments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 2,034 | |
Maximum | Probability of payment for royalties excluding early stage or approved indications | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant unobservable input for contingent consideration | 0.56 | [1] |
[1] | (b) Excludes early stage indications with 0% estimated probability of payment and includes approved indications with 100% probability of payment. Excluding approved indications, the estimated probability of payment ranged from 16% to 56% at March 31, 2020 . | |
[2] | (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measures - Transfers of Assets or Liabilities Into or Out of Level 3 of the Fair Value Hierarchy (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Transfers of assets or liabilities between the fair value measurement levels | ||
Transfers of assets into Level 3 of the fair value hierarchy | $ 0 | |
Transfers of assets out of Level 3 of the fair value hierarchy | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net [Abstract] | ||
Transfers of liabilities into Level 3 of the fair value hierarchy | 0 | |
Transfers of liabilities out of Level 3 of the fair value hierarchy | 0 | |
Reconciliation of the fair value measurements that use significant unobservable inputs (Level 3) | ||
Beginning balance | 7,340,000,000 | $ 4,483,000,000 |
Change in fair value recognized in net earnings | (72,000,000) | (169,000,000) |
Payments | (53,000,000) | 0 |
Ending balance | $ 7,359,000,000 | $ 4,652,000,000 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measures - Bases Used To Measure The Approximate Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Liabilities | ||
Carrying amount of investments in equity securities that do not have readily determinable fair values | $ 75 | $ 66 |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 3,750 | 3,753 |
Long-term debt and finance lease obligations, excluding fair value hedges | 66,157 | 66,631 |
Total liabilities | 69,907 | 70,384 |
Book value | ||
Liabilities | ||
Short-term Debt, Fair Value | 6 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 3,756 | 3,755 |
Long-term debt and finance lease obligations, excluding fair value hedges | 62,974 | 63,021 |
Total liabilities | 66,736 | 66,776 |
Approximate fair value | ||
Liabilities | ||
Short-term Debt, Fair Value | 6 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 3,757 | 3,760 |
Long-term debt and finance lease obligations, excluding fair value hedges | 66,176 | 66,651 |
Total liabilities | 69,939 | 70,411 |
Approximate fair value | Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Short-term Debt, Fair Value | 0 | |
Approximate fair value | Significant other observable inputs (Level 2) | ||
Liabilities | ||
Short-term Debt, Fair Value | 6 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 7 | 7 |
Long-term debt and finance lease obligations, excluding fair value hedges | 19 | 20 |
Total liabilities | 32 | 27 |
Approximate fair value | Significant unobservable inputs (Level 3) | ||
Liabilities | ||
Short-term Debt, Fair Value | 0 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 0 | 0 |
Long-term debt and finance lease obligations, excluding fair value hedges | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Measures - Concentrations of Risk (Details) - wholesaler | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts receivable, net | |||
Concentration of Risk | |||
Number of principal customers | 3 | ||
Accounts receivable, net | Geographic Risk | |||
Concentration of Risk | |||
Concentrations risk (as a percent) | 70.00% | 68.00% | |
Total revenues | HUMIRA | |||
Concentration of Risk | |||
Concentrations risk (as a percent) | 55.00% | 57.00% |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Measures - Debt and Credit Facilities (Details) | Jul. 12, 2019USD ($) | Nov. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Oct. 25, 2019USD ($) | Oct. 25, 2019EUR (€) |
Senior notes | Senior notes issued in 2019 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt | $ 30,000,000,000 | ||||
Special mandatory redemption price pending the proposed acquisition | 101.00% | ||||
Senior notes | Allergan notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount of borrowings | $ 15,500,000,000 | ||||
Senior notes | Allergan Euro notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount of borrowings | € | € 3,700,000,000 | ||||
Term loan facilities | July 2019 term loan agreement | |||||
Debt Instrument [Line Items] | |||||
Principal amount of borrowings | $ 6,000,000,000 | ||||
Term loan facilities | July 2019 three-year term loan tranche | |||||
Debt Instrument [Line Items] | |||||
Principal amount of borrowings | $ 2,500,000,000 | ||||
Term loan credit agreement term | 3 years | ||||
Term loan facilities | July 2019 five-year term loan tranche | |||||
Debt Instrument [Line Items] | |||||
Principal amount of borrowings | $ 2,000,000,000 | ||||
Term loan credit agreement term | 5 years | ||||
Bridge credit agreement | June 2019 bridge credit agreement | |||||
Debt Instrument [Line Items] | |||||
Amount drawn under credit agreement | $ 0 | ||||
Term loan facilities | July 2019 364-day term loan tranche | |||||
Debt Instrument [Line Items] | |||||
Principal amount of borrowings | $ 1,500,000,000 | ||||
Term loan credit agreement term | 364 days |
Financial Instruments and Fa_11
Financial Instruments and Fair Value Measures - Short-Term Borrowings (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Short-Term Borrowings | |||||
Short-term borrowings | $ 6 | $ 0 | |||
Proceeds from commercial paper borrowings issued | 0 | ||||
Repayments of other short-term borrowings | 0 | $ 3,000 | |||
Commercial paper | |||||
Short-Term Borrowings | |||||
Short-term borrowings | $ 0 | $ 0 | |||
Weighted-average interest rate on commercial paper (as a percent) | 2.80% | 2.80% | |||
Term loan facilities | May 2018 term loan credit agreement | |||||
Short-Term Borrowings | |||||
Repayments of other short-term borrowings | $ 3,000 | ||||
Term loan credit agreement term | 364 days |
Post-Employment Benefits (Detai
Post-Employment Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined benefit plans | ||
Defined benefit and other post-employment plans | ||
Service cost | $ 92 | $ 67 |
Interest cost | 61 | 64 |
Expected return on plan assets | (135) | (119) |
Amortization of actuarial losses and prior service cost (credit) | 55 | 26 |
Net periodic benefit cost | 73 | 38 |
Other post-employment plans | ||
Defined benefit and other post-employment plans | ||
Service cost | 12 | 6 |
Interest cost | 9 | 6 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial losses and prior service cost (credit) | 6 | (1) |
Net periodic benefit cost | $ 27 | $ 11 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | $ 219 | $ 189 |
Tax benefit | 39 | 33 |
After-tax compensation expense | 180 | 156 |
Cost of products sold | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | 15 | 15 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | 92 | 72 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | $ 112 | $ 102 |
Equity - Stock Options (Details
Equity - Stock Options (Details) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock options granted (in shares) | shares | 2 |
Weighted-average grant-date fair value of the stock options granted (in dollars per share) | $ / shares | $ 12.14 |
Unrecognized compensation cost | $ | $ 16 |
Period for recognition of unrecognized compensation cost | 2 years |
Equity - RSUs and Performance S
Equity - RSUs and Performance Shares (Details) - RSUs and Performance Shares $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Shares granted (in shares) | shares | 5 |
Fair market value of awards vested (in dollars per share) | $ / shares | $ 94.29 |
Unrecognized compensation cost | $ | $ 548 |
Period for recognition of unrecognized compensation cost | 2 years |
Equity - Cash Dividends (Detail
Equity - Cash Dividends (Details) - $ / shares | Feb. 20, 2020 | Nov. 01, 2019 | Sep. 06, 2019 | Jun. 20, 2019 | Feb. 21, 2019 |
Equity [Abstract] | |||||
Cash dividends declared per common share (in dollars per share) | $ 1.18 | $ 1.18 | $ 1.07 | $ 1.07 | $ 1.07 |
Equity - Stock Repurchase Progr
Equity - Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity, Class of Treasury Stock | ||
Payment for shares repurchased | $ 643 | $ 419 |
Remaining share repurchase authorization amount | $ 3,500 | |
December 2018 Stock Repurchase Authorization | ||
Equity, Class of Treasury Stock | ||
Shares repurchased (in shares) | 6 | 4 |
Payment for shares repurchased | $ 500 | $ 300 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | $ (8,172) | $ (8,446) |
Other comprehensive loss | (101) | (36) |
Ending balance | (7,415) | (7,826) |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (3,596) | (2,480) |
Other comprehensive income (loss) before reclassifications | (137) | (21) |
Net losses (gains) reclassified from accumulated other comprehensive loss | 36 | (15) |
Other comprehensive loss | (101) | (36) |
Ending balance | (3,697) | (2,516) |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (928) | (830) |
Other comprehensive income (loss) before reclassifications | (227) | (103) |
Net losses (gains) reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive loss | (227) | (103) |
Ending balance | (1,155) | (933) |
Net investment hedging activities | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | 9 | (65) |
Other comprehensive income (loss) before reclassifications | 78 | 65 |
Net losses (gains) reclassified from accumulated other comprehensive loss | (6) | 0 |
Other comprehensive loss | 72 | 65 |
Ending balance | 81 | 0 |
Pension and post-employment benefits | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (2,965) | (1,722) |
Other comprehensive income (loss) before reclassifications | 8 | 5 |
Net losses (gains) reclassified from accumulated other comprehensive loss | 48 | 20 |
Other comprehensive loss | 56 | 25 |
Ending balance | (2,909) | (1,697) |
Marketable security activities | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (10) | |
Other comprehensive income (loss) before reclassifications | 7 | |
Net losses (gains) reclassified from accumulated other comprehensive loss | 0 | |
Other comprehensive loss | 7 | |
Ending balance | (3) | |
Cash flow hedging activities | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | 288 | 147 |
Other comprehensive income (loss) before reclassifications | 4 | 5 |
Net losses (gains) reclassified from accumulated other comprehensive loss | (6) | (35) |
Other comprehensive loss | (2) | (30) |
Ending balance | $ 286 | $ 117 |
Equity - Amounts Reclassified O
Equity - Amounts Reclassified Out Of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Significant amounts reclassified out of each component of AOCI | |||
Gains on derivative amount excluded from effectiveness testing | $ 428 | $ 325 | |
Tax expense (benefit) | 88 | 88 | |
Total reclassifications, net of tax | (3,010) | (2,456) | |
Losses (gains) on foreign currency forward exchange contracts | 1,942 | 1,694 | |
Pension and post-employment benefits | |||
Significant amounts reclassified out of each component of AOCI | |||
Amortization of actuarial losses and other | [1] | 61 | 25 |
Tax benefit | (13) | (5) | |
Total reclassifications, net of tax | 48 | 20 | |
Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||
Significant amounts reclassified out of each component of AOCI | |||
Tax expense (benefit) | 1 | 5 | |
Total reclassifications, net of tax | (6) | (35) | |
Reclassification out of accumulated other comprehensive loss | Net investment hedging activity | Net investment hedging activities | |||
Significant amounts reclassified out of each component of AOCI | |||
Gains on derivative amount excluded from effectiveness testing | [2] | (8) | 0 |
Tax expense (benefit) | 2 | 0 | |
Total reclassifications, net of tax | (6) | 0 | |
Foreign currency forward exchange contracts | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||
Significant amounts reclassified out of each component of AOCI | |||
Losses (gains) on foreign currency forward exchange contracts | [3] | 0 | (40) |
Treasury rate lock agreements | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||
Significant amounts reclassified out of each component of AOCI | |||
Gains on derivative amount excluded from effectiveness testing | [2] | $ 7 | $ 0 |
[1] | (b) Amounts are included in the computation of net periodic benefit cost (see Note 9 ). | ||
[2] | (a) Amounts are included in interest expense, net (see Note 8 | ||
[3] | (c) Amounts are included in cost of products sold (see Note 8 ). |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 3.00% | 3.00% |
U.S. statutory tax rate | 21.00% | 21.00% |
Potential change in unrecognized tax benefits | $ 50 |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies (Details) | 1 Months Ended | 3 Months Ended | ||||||||||
Sep. 30, 2019direct_purchaser | Jun. 30, 2018USD ($) | Mar. 31, 2017 | Jun. 30, 2016investment_fund | Sep. 30, 2014company | Mar. 31, 2020USD ($)claim | Mar. 31, 2020USD ($)companyclaim | Mar. 31, 2020USD ($)direct_purchaserclaim | Mar. 31, 2020USD ($)lawsuitclaim | Mar. 31, 2020USD ($)claimclass_action | Mar. 31, 2020USD ($)claimend_payor_purchaser | Dec. 31, 2019USD ($) | |
Legal Proceedings and Contingencies | ||||||||||||
Recorded accrual balance for litigation | $ | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 290,000,000 | |||||
Percentage of claims subject to settlement agreements | 80.00% | |||||||||||
Depakote | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
Number of claims pending | claim | 100 | 100 | 100 | 100 | 100 | 100 | ||||||
AndroGel Antitrust Litigation | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
Recorded accrual balance for litigation | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Number of generic companies with whom certain litigation related agreements were entered into | company | 2 | 3 | ||||||||||
Number of healthcare benefit providers acting as plaintiff in lawsuit | direct_purchaser | 2 | |||||||||||
AndroGel Antitrust Litigation | Disgorgement remedy | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
Damages awarded against company | $ | $ 448,000,000 | |||||||||||
Niaspan | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
Number of healthcare benefit providers acting as plaintiff in lawsuit | 1 | 1 | ||||||||||
Number of individual plaintiff lawsuits | lawsuit | 4 | |||||||||||
Number of purported class actions | class_action | 2 | |||||||||||
Elliott Associates, L.P. | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
Number of parties to lawsuit (in investment funds) | investment_fund | 5 | |||||||||||
Testosterone Replacement Therapy Products Liability Litigation | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
Number of claims consolidated for pre-trial purposes | claim | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | ||||||
Number of claims pending | claim | 175 | 175 | 175 | 175 | 175 | 175 | ||||||
Novartis Vaccines and Diagnostics Inc and Grifols Worldwide Operations Ltd | ||||||||||||
Legal Proceedings and Contingencies | ||||||||||||
HCV-related patents | 11 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Total net revenues | $ 8,619 | $ 7,828 |
All other | ||
Disaggregation of Revenue | ||
Net revenues | 105 | 101 |
Immunology | HUMIRA | ||
Disaggregation of Revenue | ||
Net revenues | 4,703 | 4,446 |
Immunology | HUMIRA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 3,656 | 3,215 |
Immunology | HUMIRA | International | ||
Disaggregation of Revenue | ||
Net revenues | 1,047 | 1,231 |
Immunology | SKYRIZI | ||
Disaggregation of Revenue | ||
Net revenues | 300 | 0 |
Immunology | SKYRIZI | United States | ||
Disaggregation of Revenue | ||
Net revenues | 266 | 0 |
Immunology | SKYRIZI | International | ||
Disaggregation of Revenue | ||
Net revenues | 34 | 0 |
Immunology | RINVOQ | ||
Disaggregation of Revenue | ||
Net revenues | 86 | 0 |
Immunology | RINVOQ | United States | ||
Disaggregation of Revenue | ||
Net revenues | 82 | 0 |
Immunology | RINVOQ | International | ||
Disaggregation of Revenue | ||
Net revenues | 4 | 0 |
Hematologic Oncology | IMBRUVICA | ||
Disaggregation of Revenue | ||
Net revenues | 1,232 | 1,022 |
Hematologic Oncology | IMBRUVICA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 966 | 829 |
Hematologic Oncology | IMBRUVICA | International | ||
Disaggregation of Revenue | ||
Collaboration revenues | 266 | 193 |
Hematologic Oncology | VENCLEXTA | ||
Disaggregation of Revenue | ||
Net revenues | 317 | 151 |
Hematologic Oncology | VENCLEXTA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 201 | 105 |
Hematologic Oncology | VENCLEXTA | International | ||
Disaggregation of Revenue | ||
Net revenues | 116 | 46 |
HCV | MAVYRET | ||
Disaggregation of Revenue | ||
Net revenues | 559 | 790 |
HCV | MAVYRET | United States | ||
Disaggregation of Revenue | ||
Net revenues | 234 | 403 |
HCV | MAVYRET | International | ||
Disaggregation of Revenue | ||
Net revenues | 325 | 387 |
HCV | VIEKIRA | International | ||
Disaggregation of Revenue | ||
Net revenues | 5 | 25 |
Other Key Products | Creon | United States | ||
Disaggregation of Revenue | ||
Net revenues | 276 | 227 |
Other Key Products | Lupron | ||
Disaggregation of Revenue | ||
Net revenues | 233 | 229 |
Other Key Products | Lupron | United States | ||
Disaggregation of Revenue | ||
Net revenues | 195 | 191 |
Other Key Products | Lupron | International | ||
Disaggregation of Revenue | ||
Net revenues | 38 | 38 |
Other Key Products | Synthroid | United States | ||
Disaggregation of Revenue | ||
Net revenues | 205 | 182 |
Other Key Products | Synagis | International | ||
Disaggregation of Revenue | ||
Net revenues | 270 | 287 |
Other Key Products | Duodopa | ||
Disaggregation of Revenue | ||
Net revenues | 124 | 111 |
Other Key Products | Duodopa | United States | ||
Disaggregation of Revenue | ||
Net revenues | 25 | 22 |
Other Key Products | Duodopa | International | ||
Disaggregation of Revenue | ||
Net revenues | 99 | 89 |
Other Key Products | Sevoflurane | ||
Disaggregation of Revenue | ||
Net revenues | 79 | 92 |
Other Key Products | Sevoflurane | United States | ||
Disaggregation of Revenue | ||
Net revenues | 16 | 17 |
Other Key Products | Sevoflurane | International | ||
Disaggregation of Revenue | ||
Net revenues | 63 | 75 |
Other Key Products | Kaletra | ||
Disaggregation of Revenue | ||
Net revenues | 86 | 78 |
Other Key Products | Kaletra | United States | ||
Disaggregation of Revenue | ||
Net revenues | 14 | 13 |
Other Key Products | Kaletra | International | ||
Disaggregation of Revenue | ||
Net revenues | 72 | 65 |
Other Key Products | ORILISSA | ||
Disaggregation of Revenue | ||
Net revenues | 31 | 13 |
Other Key Products | ORILISSA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 30 | 13 |
Other Key Products | ORILISSA | International | ||
Disaggregation of Revenue | ||
Net revenues | 1 | 0 |
Other Key Products | AndroGel | United States | ||
Disaggregation of Revenue | ||
Net revenues | $ 8 | $ 74 |