Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35565 | ||
Entry Registrant Name | AbbVie Inc. | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 235,629,692,915 | ||
Entity Common Stock, Shares Outstanding | 1,766,473,359 | ||
Documents Incorporated by Reference | Portions of the 2024 AbbVie Inc. Proxy Statement are incorporated by reference into Part III. The Definitive Proxy Statement will be filed on or about March 18, 2024. | ||
Entity Central Index Key | 0001551152 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Common stock | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ABBV | ||
Security Exchange Name | NYSE | ||
Common stock | CHICAGO STOCK EXCHANGE, INC | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ABBV | ||
Security Exchange Name | CHX | ||
Sec 1.375 Senior Notes Due 2024 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.375% Senior Notes due 2024 | ||
Trading Symbol | ABBV24 | ||
Security Exchange Name | NYSE | ||
Sec 1.250 Senior Notes Due 2024 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2024 | ||
Trading Symbol | ABBV24B | ||
Security Exchange Name | NYSE | ||
Sec 0.750 Senior Notes Due 2027 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.750% Senior Notes due 2027 | ||
Trading Symbol | ABBV27 | ||
Security Exchange Name | NYSE | ||
Sec 2.125 Senior Notes due 2028 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.125% Senior Notes due 2028 | ||
Trading Symbol | ABBV28 | ||
Security Exchange Name | NYSE | ||
Sec 2.625 Senior Notes Due 2028 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.625% Senior Notes due 2028 | ||
Trading Symbol | ABBV28B | ||
Security Exchange Name | NYSE | ||
Sec 2.125 Senior Notes Due 2029 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.125% Senior Notes due 2029 | ||
Trading Symbol | ABBV29 | ||
Security Exchange Name | NYSE | ||
Sec 1.250 Senior Notes Due 2031 | NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2031 | ||
Trading Symbol | ABBV31 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 42 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net revenues | $ 54,318 | $ 58,054 | $ 56,197 |
Cost of products sold | 20,415 | 17,414 | 17,446 |
Selling, general and administrative | 12,872 | 15,260 | 12,349 |
Research and development | 7,675 | 6,510 | 6,922 |
Acquired IPR&D and milestones | 778 | 697 | 1,124 |
Other operating expense (income), net | (179) | 56 | 432 |
Total operating costs and expenses | 41,561 | 39,937 | 38,273 |
Operating earnings | 12,757 | 18,117 | 17,924 |
Interest expense, net | 1,684 | 2,044 | 2,384 |
Net foreign exchange loss | 146 | 148 | 51 |
Other expense, net | 4,677 | 2,448 | 2,500 |
Earnings before income tax expense | 6,250 | 13,477 | 12,989 |
Income tax expense | 1,377 | 1,632 | 1,440 |
Net earnings | 4,873 | 11,845 | 11,549 |
Net earnings attributable to noncontrolling interest | 10 | 9 | 7 |
Net earnings attributable to AbbVie Inc. | $ 4,863 | $ 11,836 | $ 11,542 |
Per share data | |||
Basic earnings per share (in dollars per share) | $ 2.73 | $ 6.65 | $ 6.48 |
Diluted earnings per share (in dollars per share) | $ 2.72 | $ 6.63 | $ 6.45 |
Weighted-average basic shares outstanding (in shares) | 1,768 | 1,771 | 1,770 |
Weighted-average diluted shares outstanding (in shares) | 1,773 | 1,778 | 1,777 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 4,873 | $ 11,845 | $ 11,549 |
Foreign currency translation adjustments, net of tax expense (benefit) of $15 in 2023, $(10) in 2022 and $(35) in 2021 | 407 | (943) | (1,153) |
Net investment hedging activities, net of tax expense (benefit) of $(109) in 2023, $152 in 2022 and $193 in 2021 | (399) | 555 | 699 |
Pension and post-employment benefits, net of tax expense (benefit) of $(6) in 2023, $272 in 2022 and $124 in 2021 | (30) | 1,088 | 521 |
Cash flow hedging activities, net of tax expense (benefit) of $(19) in 2023, $5 in 2022 and $20 in 2021 | (84) | 0 | 151 |
Other comprehensive income (loss) | (106) | 700 | 218 |
Comprehensive income | 4,767 | 12,545 | 11,767 |
Comprehensive income attributable to noncontrolling interest | 10 | 9 | 7 |
Comprehensive income attributable to AbbVie Inc. | $ 4,757 | $ 12,536 | $ 11,760 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax expense (benefit) | $ 15 | $ (10) | $ (35) |
Net investment hedging activities, tax expense (benefit) | (109) | 152 | 193 |
Pension and post-employment benefits, tax expense (benefit) | (6) | 272 | 124 |
Cash flow hedging activities, tax expense (benefit) | $ (19) | $ 5 | $ 20 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and equivalents | $ 12,814 | $ 9,201 |
Short-term investments | 2 | 28 |
Accounts receivable, net | 11,155 | 11,254 |
Inventories | 4,099 | 3,579 |
Prepaid expenses and other | 4,932 | 4,401 |
Total current assets | 33,002 | 28,463 |
Investments | 304 | 241 |
Property and equipment, net | 4,989 | 4,935 |
Intangible assets, net | 55,610 | 67,439 |
Goodwill | 32,293 | 32,156 |
Other assets | 8,513 | 5,571 |
Total assets | 134,711 | 138,805 |
Current liabilities | ||
Short-term borrowings | 0 | 1 |
Current portion of long-term debt and finance lease obligations | 7,191 | 4,135 |
Accounts payable and accrued liabilities | 30,650 | 25,402 |
Total current liabilities | 37,841 | 29,538 |
Long-term debt and finance lease obligations | 52,194 | 59,135 |
Deferred income taxes | 1,952 | 2,190 |
Other long-term liabilities | 32,327 | 30,655 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,823,046,087 shares issued as of December 31, 2023 and 1,813,770,294 as of December 31, 2022 | 18 | 18 |
Common stock held in treasury, at cost, 57,105,354 shares as of December 31, 2023 and 44,589,000 as of December 31, 2022 | (6,533) | (4,594) |
Additional paid-in capital | 20,180 | 19,245 |
Retained earnings (accumulated deficit) | (1,000) | 4,784 |
Accumulated other comprehensive loss | (2,305) | (2,199) |
Total stockholders' equity | 10,360 | 17,254 |
Noncontrolling interest | 37 | 33 |
Total equity | 10,397 | 17,287 |
Total liabilities and equity | $ 134,711 | $ 138,805 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 1,823,046,087 | 1,813,770,294 |
Common stock held in treasury, at cost (in shares) | 57,105,354 | 44,589,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Treasury Stock, Common | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive loss | Noncontrolling interest |
Beginning balance at Dec. 31, 2020 | $ 13,097 | $ 18 | $ (2,264) | $ 17,384 | $ 1,055 | $ (3,117) | $ 21 |
Beginning balance (in shares) at Dec. 31, 2020 | 1,765 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 11,542 | $ 0 | 0 | 0 | 11,542 | 0 | 0 |
Other comprehensive income, net of tax | 218 | 0 | 0 | 0 | 0 | 218 | 0 |
Dividends declared | (9,470) | 0 | 0 | 0 | (9,470) | 0 | 0 |
Purchases of treasury stock | (934) | $ 0 | (934) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (8) | ||||||
Stock-based compensation plans and other | 976 | $ 0 | 55 | 921 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 11 | ||||||
Change in noncontrolling interest | 7 | $ 0 | 0 | 0 | 0 | 0 | 7 |
Ending balance at Dec. 31, 2021 | 15,436 | $ 18 | (3,143) | 18,305 | 3,127 | (2,899) | 28 |
Ending balance (in shares) at Dec. 31, 2021 | 1,768 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 11,836 | $ 0 | 0 | 0 | 11,836 | 0 | 0 |
Other comprehensive income, net of tax | 700 | 0 | 0 | 0 | 0 | 700 | 0 |
Dividends declared | (10,179) | 0 | 0 | 0 | (10,179) | 0 | 0 |
Purchases of treasury stock | (1,487) | $ 0 | (1,487) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (10) | ||||||
Stock-based compensation plans and other | 976 | $ 0 | 36 | 940 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 11 | ||||||
Change in noncontrolling interest | 5 | $ 0 | 0 | 0 | 0 | 0 | 5 |
Ending balance at Dec. 31, 2022 | 17,287 | $ 18 | (4,594) | 19,245 | 4,784 | (2,199) | 33 |
Ending balance (in shares) at Dec. 31, 2022 | 1,769 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 4,863 | $ 0 | 0 | 0 | 4,863 | 0 | 0 |
Other comprehensive income, net of tax | (106) | 0 | 0 | 0 | 0 | (106) | 0 |
Dividends declared | (10,647) | 0 | 0 | 0 | (10,647) | 0 | 0 |
Purchases of treasury stock | (1,978) | $ 0 | (1,978) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (12) | ||||||
Stock-based compensation plans and other | 974 | $ 0 | 39 | 935 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 9 | ||||||
Change in noncontrolling interest | 4 | $ 0 | 0 | 0 | 0 | 0 | 4 |
Ending balance at Dec. 31, 2023 | $ 10,397 | $ 18 | $ (6,533) | $ 20,180 | $ (1,000) | $ (2,305) | $ 37 |
Ending balance (in shares) at Dec. 31, 2023 | 1,766 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net earnings | $ 4,873 | $ 11,845 | $ 11,549 |
Adjustments to reconcile net earnings to net cash from operating activities: | |||
Depreciation | 752 | 778 | 803 |
Amortization of intangible assets | 7,946 | 7,689 | 7,718 |
Deferred income taxes | (2,889) | (1,931) | (898) |
Change in fair value of contingent consideration liabilities | 5,128 | 2,761 | 2,679 |
Payments of contingent consideration liabilities | (870) | (164) | (91) |
Stock-based compensation | 747 | 671 | 692 |
Acquired IPR&D and milestones | 778 | 697 | 1,124 |
Other charges related to collaborations | 0 | 0 | 500 |
Gain on divestitures | 0 | (172) | (68) |
Non-cash litigation reserve adjustments, net of cash payments | (443) | 2,243 | 163 |
Impairment of intangible assets | 4,229 | 770 | 50 |
Other, net | (225) | (150) | (213) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 66 | (1,455) | (1,321) |
Inventories | (417) | (686) | (142) |
Prepaid expenses and other assets | (188) | (264) | (197) |
Accounts payable and other liabilities | 3,840 | 1,769 | 1,719 |
Income tax assets and liabilities, net | (488) | 542 | (1,290) |
Cash flows from operating activities | 22,839 | 24,943 | 22,777 |
Cash flows from investing activities | |||
Acquisition of businesses, net of cash acquired | 0 | (255) | (525) |
Other acquisitions and investments | (1,223) | (539) | (1,377) |
Acquisitions of property and equipment | (777) | (695) | (787) |
Purchases of investment securities | (77) | (1,438) | (119) |
Sales and maturities of investment securities | 55 | 1,530 | 98 |
Other, net | 13 | 774 | 366 |
Cash flows from investing activities | (2,009) | (623) | (2,344) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 2,000 | 1,000 | |
Repayments of long-term debt and finance lease obligations | (4,149) | (14,433) | (9,414) |
Debt issuance costs | (38) | 0 | 0 |
Dividends paid | (10,539) | (10,043) | (9,261) |
Purchases of treasury stock | (1,972) | (1,487) | (934) |
Proceeds from the exercise of stock options | 180 | 262 | 244 |
Payments of contingent consideration liabilities | (752) | (1,132) | (698) |
Other, net | 48 | 30 | 24 |
Cash flows from financing activities | (17,222) | (24,803) | (19,039) |
Effect of exchange rate changes on cash and equivalents | 5 | (62) | (97) |
Net change in cash and equivalents | 3,613 | (545) | 1,297 |
Cash and equivalents, beginning of year | 9,201 | 9,746 | 8,449 |
Cash and equivalents, end of year | 12,814 | 9,201 | 9,746 |
Other supplemental information | |||
Interest paid, net of portion capitalized | 2,469 | 2,546 | 2,712 |
Income taxes paid | $ 4,702 | $ 2,988 | $ 3,648 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background Background The principal business of AbbVie Inc. (AbbVie or the company) is the discovery, development, manufacturing and sale of a broad line of therapies that address some of the world's most complex and serious diseases. AbbVie's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses. Certain products (including aesthetic products and devices) are also sold directly to physicians and other licensed healthcare providers. In the United States, AbbVie distributes pharmaceutical products principally through independent wholesale distributors, with some sales directly to retailers, pharmacies, patients or other customers. Outside the United States, AbbVie sells products primarily to wholesalers or through distributors, and depending on the market works through largely centralized national payers systems to agree on reimbursement terms. AbbVie was incorporated in Delaware on April 10, 2012. On January 1, 2013, AbbVie became an independent, publicly-traded company as a result of the distribution by Abbott Laboratories (Abbott) of 100% of the outstanding common stock of AbbVie to Abbott's shareholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for rebates, pension and other post-employment benefits, income taxes, litigation, valuation of goodwill and intangible assets, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures. Basis of Consolidation The consolidated financial statements include the accounts of AbbVie and all of its subsidiaries in which a controlling interest is maintained. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, where AbbVie is determined to be the primary beneficiary. Investments in companies over which AbbVie has a significant influence but not a controlling interest are accounted for using the equity method with AbbVie's share of earnings or losses reported in other expense, net in the consolidated statements of earnings. Intercompany balances and transactions are eliminated. Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period presentation. Revenue Recognition AbbVie recognizes revenue when control of promised goods or services is transferred to the company’s customers, in an amount that reflects the consideration AbbVie expects to be entitled to in exchange for those goods or services. Sales, value add and other taxes collected concurrent with revenue-producing activities are excluded from revenue. AbbVie generates revenue primarily from product sales. For the majority of sales, the company transfers control, invoices the customer and recognizes revenue upon shipment to the customer. The company recognizes shipping and handling costs as an expense in cost of products sold when the company transfers control to the customer. Payment terms vary depending on the type and location of the customer, are based on customary commercial terms and are generally less than one year. AbbVie does not adjust revenue for the effects of a significant financing component for contracts where AbbVie expects the period between the transfer of the good or service and collection to be one year or less. Cash discounts, rebates and chargebacks, sales incentives, product returns and certain other adjustments are accounted for as variable consideration. Provisions for variable consideration are based on current pricing, executed contracts, government pricing legislation and historical data and are provided for in the period the related revenues are recorded. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer. For each type of rebate, factors used in the calculation of the accrual include the identification of the products subject to the rebate, the applicable price terms and the estimated lag time between sale and payment of the rebate, which can be significant. In addition to revenue from contracts with customers, the company also recognizes certain collaboration revenues. See Note 6 for additional information related to the collaborations with Janssen Biotech, Inc. and Genentech, Inc. Additionally, see Note 16 for disaggregation of revenue by product and geography. Research and Development Expenses Internal R&D costs are expensed as incurred. Clinical trial costs incurred by third parties are expensed as the contracted work is performed. Acquired IPR&D and Milestones Expenses In an asset acquisition, payments incurred prior to regulatory approval to acquire rights to in-process R&D projects are expensed as acquired IPR&D and milestones expense in the consolidated statements of earnings unless the project has an alternative future use. These costs include upfront and development milestone payments related to R&D collaborations, licensing arrangements, or other asset acquisitions that provide rights to develop, manufacture and/or sell pharmaceutical products. Where contingent development milestone payments are due to third parties, prior to regulatory approval, the payment obligations are expensed when the milestone results are achieved. Regulatory and commercial milestone payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the remaining useful life of the related product. Business Combinations AbbVie utilizes the acquisition method of accounting for business combinations. This method requires, among other things, that results of operations of acquired companies are included in AbbVie's results of operations beginning on the acquisition date and that assets acquired and liabilities assumed are recognized at fair value as of the acquisition date. Any excess of the fair value of consideration transferred over the fair value of the net assets acquired is recognized as goodwill. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liabilities are recognized in other expense, net in the consolidated statements of earnings. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred. In a business combination, the fair value of IPR&D projects acquired is capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. R&D costs incurred by the company after the acquisition are expensed to R&D as incurred. Collaborations and Other Arrangements The company enters into collaborative agreements with third parties to develop and commercialize drug candidates. Collaborative activities may include joint research and development and commercialization of new products. AbbVie generally receives certain licensing rights under these arrangements. These collaborations often require upfront payments and may include additional milestone, research and development cost sharing, royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development and commercialization. Upfront payments associated with collaborative arrangements and subsequent payments made to the partner for the achievement of development milestones prior to regulatory approval are expensed to acquired IPR&D and milestones expense in the consolidated statements of earnings. Regulatory and commercial milestone payments made to the partner subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the estimated useful life of the related asset. Royalties are expensed to cost of products sold in the consolidated statements of earnings when incurred. Advertising Costs associated with advertising are expensed as incurred and are included in selling, general and administrative (SG&A) expense in the consolidated statements of earnings. Advertising expenses were $2.2 billion in 2023, $2.0 billion in 2022 and $2.1 billion in 2021. Pension and Other Post-Employment Benefits AbbVie records annual expenses relating to its defined benefit pension and other post-employment benefit plans based on calculations which utilize various actuarial assumptions including discount rates, rates of return on assets, compensation increases, turnover rates and health care cost trend rates. AbbVie reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive income (loss) (AOCI), net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are generally amortized to net periodic benefit cost over a five-year period. Income Taxes Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pre-tax earnings based on current tax laws. Deferred taxes are provided using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. Cash and Equivalents Cash and equivalents include money market funds and time deposits with original maturities of three months or less. Investments Investments consist primarily of equity securities, held-to-maturity debt securities, marketable debt securities and time deposits. Investments in equity securities that have readily determinable fair values are recorded at fair value. Investments in equity securities that do not have readily determinable fair values are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. Held-to-maturity debt securities are recorded at cost. Gains or losses on investments are included in other expense, net in the consolidated statements of earnings. Investments in marketable debt securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in AOCI on the consolidated balance sheets until realized, at which time the gains or losses are recognized in earnings. AbbVie periodically assesses its marketable debt securities for impairment and credit losses. When a decline in the fair value of marketable debt security is due to credit related factors, an allowance for credit losses is recorded with a corresponding charge to other expense, net in the consolidated statements of earnings. When AbbVie determines that a non-credit related impairment has occurred, the amortized cost basis of the investment, net of allowance for credit losses, is written down with a charge to other expense, net in the consolidated statements of earnings and an available-for-sale investment's unrealized loss is reclassified from AOCI to other expense, net in the consolidated statements of earnings. Realized gains and losses on sales of investments are computed using the first-in, first-out method adjusted for any impairments and credit losses that were recorded in net earnings. Accounts Receivable 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. Inventories Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs. Inventories consisted of the following: as of December 31 (in millions) 2023 2022 Finished goods $ 1,356 $ 1,162 Work-in-process 1,643 1,417 Raw materials 1,100 1,000 Inventories $ 4,099 $ 3,579 Property and Equipment as of December 31 (in millions) 2023 2022 Land $ 286 $ 286 Buildings 2,827 2,737 Equipment 7,449 7,107 Construction in progress 1,073 856 Property and equipment, gross 11,635 10,986 Less accumulated depreciation (6,646) (6,051) Property and equipment, net $ 4,989 $ 4,935 Depreciation for property and equipment is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life for buildings ranges from 10 to 50 years. Buildings include leasehold improvements which are amortized over the lesser of the remainder of the lease term or the useful life of the leasehold improvement. The estimated useful life for equipment ranges from 2 to 25 years. Equipment includes certain computer software and software development costs incurred in connection with developing or obtaining software for internal use and is amortized over 3 to 10 years. Depreciation expense was $752 million in 2023, $778 million in 2022 and $803 million in 2021. Leases Short-term leases with a term of 12 months or less are not recorded on the balance sheet. For leases commencing or modified in 2019 or later, AbbVie does not separate lease components from non-lease components. The company records lease liabilities based on the present value of lease payments over the lease term. AbbVie generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the company's control. AbbVie includes optional renewal periods in the lease term only when it is reasonably certain that AbbVie will exercise its option. Variable lease payments include payments to lessors for taxes, maintenance, insurance and other operating costs as well as payments that are adjusted based on an index or rate. The company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. Litigation and Contingencies Loss contingency provisions are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. When a best estimate cannot be made, the minimum loss contingency amount in a probable range is recorded. Legal fees are expensed as incurred. AbbVie accrues for product liability claims on an undiscounted basis. The liabilities are evaluated quarterly and adjusted if necessary as additional information becomes available. Receivables for insurance recoveries for product liability claims, if any, are recorded as assets on an undiscounted basis when it is probable that a recovery will be realized. Goodwill and Intangible Assets Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow model. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital and terminal values of market participants. Definite-lived intangibles are amortized over their estimated useful lives using the estimated pattern of economic benefit. AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. AbbVie first compares the projected undiscounted cash flows to be generated by the asset to its carrying value. If the undiscounted cash flows of an intangible asset are less than the carrying value, the intangible asset is written down to its fair value. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest level for which cash flows are largely independent of the cash flows of other assets and liabilities. Goodwill and indefinite-lived assets are not amortized but are subject to an impairment review annually and more frequently when indicators of impairment exist. An impairment of goodwill could occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. An impairment of indefinite-lived intangible assets would occur if the fair value of the intangible asset is less than the carrying value. The company tests its goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed. AbbVie tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value is less than its carrying amount, a quantitative impairment test is performed. For its quantitative impairment tests, the company uses an estimated future cash flow approach that requires significant judgment with respect to future volume, revenue and expense growth rates, changes in working capital use, the selection of an appropriate discount rate, asset groupings and other assumptions and estimates. The estimates and assumptions used are consistent with the company's business plans and a market participant's views. The use of alternative estimates and assumptions could increase or decrease projected cash flows and the estimated fair value of the related intangible assets. Future changes to these estimates and assumptions could have a material impact on the company's results of operations. Actual results may differ from the company's estimates. Foreign Currency Translation Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income. The net assets of subsidiaries in highly inflationary economies are remeasured as if the functional currency were the reporting currency. The remeasurement is recognized in net foreign exchange loss in the consolidated statements of earnings. Derivatives All derivative instruments are recognized as either assets or liabilities at fair value on the consolidated balance sheets and are classified as current or long-term based on the scheduled maturity of the instrument. For derivatives formally designated as hedges, the company assesses at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in the fair value or cash flows of the hedged item. The changes in fair value of a derivative designated as a fair value hedge and of the hedged item attributable to the hedged risk are recognized in earnings immediately. The effective portions of changes in the fair value of a derivative designated as a cash flow hedge are reported in AOCI and are subsequently recognized in earnings consistent with the underlying hedged item. If it is determined that a derivative is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If a hedged forecasted transaction becomes probable of not occurring, any gains or losses are reclassified from AOCI to earnings. Derivatives that are not designated as hedges are adjusted to fair value through current earnings. The company also uses derivative instruments or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. Realized and unrealized gains and losses from these hedges are included in AOCI. Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing section of the consolidated statements of cash flows. Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted ASU No. 2023-09 In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740) . The standard requires disaggregation of the effective rate reconciliation into standard categories, enhances disclosure of income taxes paid, and modifies other income tax-related disclosures. The standard will be effective for AbbVie starting in annual periods in 2025, with early adoption permitted. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. ASU No. 2023-07 In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting - Improving Reportable Segment Disclosures (Topic 280) . The standard requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The standard is effective for AbbVie starting in annual periods in 2024 and interim periods in 2025, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information | |
Supplemental Financial Information | Supplemental Financial Information Interest Expense, Net years ended December 31 (in millions) 2023 2022 2021 Interest expense $ 2,224 $ 2,230 $ 2,423 Interest income (540) (186) (39) Interest expense, net $ 1,684 $ 2,044 $ 2,384 Accounts Payable and Accrued Liabilities as of December 31 (in millions) 2023 2022 Sales rebates $ 13,627 $ 10,717 Dividends payable 2,783 2,680 Accounts payable 3,688 2,934 Current portion of contingent consideration liabilities 1,952 1,469 Salaries, wages and commissions 1,802 1,371 Royalty and license arrangements 360 412 Other 6,438 5,819 Accounts payable and accrued liabilities $ 30,650 $ 25,402 Other Long-Term Liabilities as of December 31 (in millions) 2023 2022 Contingent consideration liabilities $ 17,938 $ 14,915 Liabilities for unrecognized tax benefits 6,681 6,502 Income taxes payable 2,182 2,985 Pension and other post-employment benefits 1,538 1,638 Other 3,988 4,615 Other long-term liabilities $ 32,327 $ 30,655 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
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: Years ended December 31, (in millions, except per share data) 2023 2022 2021 Basic EPS Net earnings attributable to AbbVie Inc. $ 4,863 $ 11,836 $ 11,542 Earnings allocated to participating securities 43 54 74 Earnings available to common shareholders $ 4,820 $ 11,782 $ 11,468 Weighted average basic shares of common stock outstanding 1,768 1,771 1,770 Basic earnings per share attributable to AbbVie Inc. $ 2.73 $ 6.65 $ 6.48 Diluted EPS Net earnings attributable to AbbVie Inc. $ 4,863 $ 11,836 $ 11,542 Earnings allocated to participating securities 43 54 74 Earnings available to common shareholders $ 4,820 $ 11,782 $ 11,468 Weighted average shares of common stock outstanding 1,768 1,771 1,770 Effect of dilutive securities 5 7 7 Weighted average diluted shares of common stock outstanding 1,773 1,778 1,777 Diluted earnings per share attributable to AbbVie Inc. $ 2.72 $ 6.63 $ 6.45 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 | 12 Months Ended |
Dec. 31, 2023 | |
Licensing, Acquisitions, and Other Arrangements | |
Licensing, Acquisitions, and Other Arrangements | Licensing, Acquisitions and Other Arrangements Proposed Acquisition of Cerevel Therapeutics Holdings, Inc. On December 6, 2023, AbbVie announced that it entered into a definitive agreement under which AbbVie will acquire Cerevel Therapeutics Holdings, Inc. (Cerevel Therapeutics). Under the terms of the agreement, AbbVie will acquire all outstanding shares of Cerevel Therapeutics for $45.00 per share in cash for a total value of approximately $8.7 billion. The transaction is expected to close in 2024 subject to regulatory approvals and other customary closing conditions. Cerevel Therapeutics is a clinical-stage biotechnology company focused on the discovery and development of differentiated therapies for Neuroscience diseases. Cerevel Therapeutics neuroscience pipeline includes multiple clinical-stage and preclinical candidates with the potential to treat several diseases including schizophrenia, Parkinson's disease and mood disorders. Acquisition of ImmunoGen, Inc. Subsequent to 2023, on February 12, 2024, AbbVie completed its previously announced acquisition of ImmunoGen, Inc. (ImmunoGen). Under the terms of the agreement, AbbVie acquired all outstanding shares of ImmunoGen for $31.26 per share in cash for a total value of approximately $10.1 billion. Due to the proximity of the closing date of the acquisition to the date of filing this Annual Report on Form 10-K, the initial accounting for the acquisition is not complete. Significant, relevant information needed to complete the initial accounting, including the identification and measurement of the fair value of assets acquired and liabilities assumed, is pending. As a result, it is not practicable to disclose the preliminary allocation of the purchase price to assets acquired and liabilities assumed or provide other related disclosures. The accounting impact of this acquisition and the operating results of ImmunoGen will be included in the consolidated financial statements beginning in the first quarter of 2024. ImmunoGen is a commercial-stage biotechnology company focused on the discovery, development and commercialization of antibody-drug conjugates (ADC) for cancer patients. ImmunoGen's oncology portfolio includes its flagship cancer therapy Elahere, a first-in-class ADC approved for platinum-resistant ovarian cancer, and a pipeline of promising next-generation ADC's targeting hematologic malignancies and solid tumors. In connection with these acquisitions, AbbVie entered into several debt and financing arrangements. See Note 10 for additional information. Acquisition of DJS Antibodies Ltd In October 2022, AbbVie entered into an agreement to acquire DJS Antibodies Ltd (DJS) including its lead program DJS-002 and proprietary HEPTAD platform. DJS-002 is an LPAR1 antagonist antibody currently in preclinical studies for the treatment of Idiopathic Pulmonary Fibrosis and other fibrotic diseases. HEPTAD platform is a potential novel approach to antibody discovery with specific capabilities targeting transmembrane protein targets. The aggregate purchase price of $287 million was comprised of a $255 million upfront cash payment and $32 million for the acquisition date fair value of contingent consideration liabilities, for which AbbVie may owe up to $95 million in future payments upon achievement of certain development milestones. The transaction was accounted for as a business combination using the acquisition method of accounting. As of the acquisition date, AbbVie acquired $233 million of intangible assets for in-process research and development, $22 million of intangible assets for developed product rights and $60 million of deferred tax liabilities. Other assets and liabilities assumed were insignificant. The acquisition resulted in the recognition of $92 million of goodwill which is not deductible for tax purposes. Acquisition of Soliton, Inc. In December 2021, AbbVie completed its previously announced acquisition of Soliton, Inc. (Soliton). Soliton's RESONIC (Rapid Acoustic Pulse device) has U.S. Food and Drug Administration (FDA) 510(k) clearance for the long-term improvement in the appearance of cellulite up to one year. The transaction was accounted for as a business combination using the acquisition method of accounting. Total consideration transferred allocated to the purchase price consisted of cash consideration of $535 million paid to holders of Soliton common stock, equity-based awards and warrants. As of the transaction date, AbbVie acquired $407 million of intangible assets for developed product rights and assumed deferred tax liabilities totaling $63 million. Other assets and liabilities were insignificant. The acquisition resulted in the recognition of $177 million of goodwill which is not deductible for tax purposes. Other Licensing & Acquisitions Activity Cash outflows related to other acquisitions and investments totaled $1.2 billion in 2023, $539 million in 2022 and $1.4 billion in 2021. AbbVie recorded acquired IPR&D and milestones expense of $778 million in 2023, $697 million in 2022 and $1.1 billion in 2021. Significant arrangements impacting 2023, 2022 and 2021, some of which require contingent milestone payments, are summarized below. Syndesi Therapeutics SA In February 2022, AbbVie acquired Syndesi Therapeutics SA and its portfolio of novel modulators of the synaptic vesicle protein 2A, including its lead molecule ABBV-552, previously named SDI-118, and accounted for the transaction as an asset acquisition. ABBV-552 is a small molecule, which is being evaluated to target nerve terminals to enhance synaptic efficiency. Under the terms of the agreement, AbbVie made an upfront payment of $130 million which was recorded to acquired IPR&D and milestones expense in the consolidated statement of earnings in the first quarter of 2022. The agreement also includes additional future payments of up to $870 million upon the achievement of certain development, regulatory and commercial milestones. Juvise Pharmaceuticals In June 2022, AbbVie and Laboratories Juvise Pharmaceuticals (Juvise) entered into an asset purchase agreement where Juvise acquired worldwide commercial rights of a mature brand Pylera, which is used for the treatment of peptic ulcers with an infection by the bacterium Helicobacter pylori. The transaction was accounted for as the sale of an asset. Upon completion of the transaction, AbbVie received net cash proceeds of $215 million and recognized a pre-tax gain of $172 million which was recorded in other operating income in the consolidated statement of earnings in the second quarter of 2022. Calico Life Sciences LLC In July 2021, AbbVie and Calico Life Sciences LLC (Calico) entered into an extension of their collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. This is the second collaboration extension and builds on the partnership established in 2014 and extended in 2018. Under the terms of the agreement, AbbVie and Calico will each contribute an additional $500 million, and the term is extended for an additional three years. AbbVie’s contribution is payable in two equal installments beginning in 2023. Calico will be responsible for research and early development until 2025 and will advance collaboration projects into Phase 2a through 2030. Following completion of the Phase 2a studies, AbbVie will have the option to exclusively license the collaboration compounds. Upon exercise, AbbVie would be responsible for late-stage development and commercial activities. Collaboration costs and profits will be shared equally by both parties post option exercise. During the third quarter of 2021, AbbVie recorded $500 million as other operating expense in the consolidated statement of earnings related to its commitments under the agreement. TeneoOne and TNB-383B In September 2021, AbbVie acquired TeneoOne, an affiliate of Teneobio, Inc., and TNB-383B, a BCMA-targeting immunotherapeutic for the potential treatment of relapsed or refractory multiple myeloma (R/R MM). In February 2019, AbbVie and TeneoOne entered a strategic transaction to develop and commercialize TNB-383B, a bispecific antibody that simultaneously targets BCMA and CD3 and is designed to direct the body's own immune system to target and kill BCMA-expressing tumor cells. AbbVie exercised its exclusive right to acquire TeneoOne and TNB-383B based on an interim analysis of an ongoing Phase 1 study and accounted for the transaction as an asset acquisition. Under the terms of the agreement, AbbVie made an exercise payment of $400 million which was recorded to acquired IPR&D and milestones expense in the consolidated statement of earnings in the third quarter of 2021. The agreement also included additional payments of up to $250 million upon the achievement of certain development, regulatory and commercial milestones. REGENXBIO Inc. In September 2021, AbbVie and REGENXBIO Inc. (REGENXBIO) entered into a collaboration to develop and commercialize RGX-314, an investigational gene therapy for wet age-related macular degeneration, diabetic retinopathy and other chronic retinal diseases. The collaboration provides AbbVie with an exclusive global license to develop and commercialize RGX-314. REGENXBIO will be responsible for completion of ongoing trials, AbbVie and REGENXBIO will collaborate and share costs of additional trials and AbbVie will lead the clinical development and commercialization of RGX-314 globally. REGENXBIO and AbbVie will share equally in pre-tax profits from net revenues of RGX-314 in the U.S. and AbbVie will pay REGENXBIO tiered royalties on net revenues outside the U.S. Upon closing in the fourth quarter of 2021, AbbVie made an upfront payment of $370 million to exclusively license RGX-314 which was recorded to acquired IPR&D and milestones expense in the consolidated statement of earnings for the year ended December 31, 2021 . The agreement also included additional payments of up to $1.4 billion upon the achievement of certain development, regulatory and commercial milestones. Other Arrangements In addition to the significant arrangements described above, AbbVie entered into several other arrangements resulting in charges related to upfront payments of $582 million in 2023, $315 million in 2022 and $192 million in 2021. |
Collaborations
Collaborations | 12 Months Ended |
Dec. 31, 2023 | |
Collaborative Arrangements [Abstract] | |
Collaborations | Collaborations The company has ongoing transactions with other entities through collaboration agreements. The following represent the significant collaboration agreements impacting 2023, 2022 and 2021. 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 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: years ended December 31 (in millions) 2023 2022 2021 United States - Janssen's share of profits (included in cost of products sold) $ 1,245 $ 1,607 $ 2,018 International - AbbVie's share of profits (included in net revenues) 931 1,142 1,087 Global - AbbVie's share of other costs (included in respective line items) 228 268 304 AbbVie’s receivable from Janssen, included in accounts receivable, net, was $236 million at December 31, 2023 and $295 million at December 31, 2022. AbbVie’s payable to Janssen, included in accounts payable and accrued liabilities, was $307 million at December 31, 2023 and $379 million at December 31, 2022. Collaboration with Genentech, Inc. AbbVie and Genentech, Inc. (Genentech), a member of the Roche Group, are parties to a collaboration and license agreement executed in 2007 to jointly research, develop and commercialize human therapeutic products containing BCL-2 inhibitors and certain other compound inhibitors which includes Venclexta, a BCL-2 inhibitor used to treat certain hematological malignancies. AbbVie shares equally with Genentech all pre-tax profits and losses from the development and commercialization of Venclexta in the United States. AbbVie pays royalties on Venclexta net revenues outside the United States. AbbVie manufactures and distributes Venclexta globally and is the principal in the end-customer product sales. Sales of Venclexta are included in AbbVie's net revenues. Genentech's share of United States profits is included in AbbVie's cost of products sold. AbbVie records sales and marketing costs associated with the United States collaboration as part of SG&A expenses and global development costs as part of R&D expenses, net of Genentech’s share. Royalties paid for Venclexta revenues outside the United States are also included in AbbVie’s cost of products sold. The following table shows the profit and cost sharing relationship between Genentech and AbbVie: years ended December 31 (in millions) 2023 2022 2021 Genentech's share of profits, including royalties (included in cost of products sold) $ 869 $ 778 $ 703 AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) 41 37 40 AbbVie's share of development costs (included in R&D) 109 121 140 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
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, 2021 $ 32,379 Additions (a) 92 Foreign currency translation adjustments and other (315) Balance as of December 31, 2022 32,156 Foreign currency translation adjustments and other 137 Balance as of December 31, 2023 $ 32,293 (a) Goodwill additions related to the acquisition of DJS in the fourth quarter of 2022 (see Note 5). The company performs its annual goodwill impairment assessment in the third quarter, or earlier if impairment indicators exist. As of December 31, 2023 and 2022, there were no accumulated goodwill impairment losses. Intangible Assets, Net The following table summarizes intangible assets: 2023 2022 as of December 31 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 75,142 $ (22,455) $ 52,687 $ 87,698 $ (25,003) $ 62,695 License agreements 8,191 (5,571) 2,620 8,474 (4,642) 3,832 Total definite-lived intangible assets 83,333 (28,026) 55,307 96,172 (29,645) 66,527 Indefinite-lived intangible assets 303 — 303 912 — 912 Total intangible assets, net $ 83,636 $ (28,026) $ 55,610 $ 97,084 $ (29,645) $ 67,439 Definite-Lived Intangible Assets In the fourth quarter of 2023, the company made a decision to reduce current sales and marketing investment related to both CoolSculpting, a body contouring technology for aesthetic nonsurgical fat reduction, and Liletta, an on-market women’s health product. Each of these strategic decisions contributed to significant decreases in the estimated future cash flows for the respective products and represented triggering events that required an evaluation of the underlying definite-lived intangible assets for impairment. The company used a discounted cash flow analysis for both products. For CoolSculpting, the fair value of $290 million was lower than the carrying value of $1.3 billion resulting in a partial impairment of both the gross and net carrying amount. For Liletta, the fair value of $241 million was lower than the carrying value of $561 million resulting in a partial impairment of both the gross and net carrying amount. Based on the revised cash flows, the company recorded a pre-tax impairment charge of $1.4 billion to costs of products sold in the consolidated statement of earnings for the fourth quarter of 2023. In August 2023, as part of the Inflation Reduction Act of 2022, the company’s oncology product Imbruvica sold in the United States (U.S.) was included on the list of products selected for negotiation by the Centers for Medicare & Medicaid Services. The selection resulted in a significant decrease in the estimated future cash flows for the product and represented a triggering event which required the company to evaluate the underlying definite-lived intangible asset for impairment. The company utilized a discounted cash flow analysis to determine the fair value of $1.9 billion, which was lower than the carrying value of $4.0 billion and resulted in a partial impairment of both the gross and net carrying amount as of August 29, 2023. Based on the revised cash flows, the company recorded a pre-tax impairment charge of $2.1 billion to cost of products sold In September 2022, the company made a strategic decision to reduce ongoing sales and marketing investment related to Vuity, an on-market product to treat presbyopia. This strategic decision contributed to a significant decrease in the estimated future cash flows for the product and represented a triggering event which required the company to evaluate the underlying definite lived-intangible asset for impairment. The company utilized a discounted cash flow analysis to estimate the fair value of the intangible asset resulting in a full impairment of both the gross and net carrying amount. Based on the revised cash flows, the company recorded a pre-tax impairment charge of $770 million to cost of products sold in the consolidated statement of earnings for the third quarter of 2022. Fair value measurements for the above evaluations were based on Level 3 inputs including estimated net revenues, cost of products sold, R&D costs, selling and marketing costs and discount rate. Definite-lived intangible assets are amortized over their estimated useful lives, which range between 1 to 16 years with an average of 12 years for developed product rights and 11 years for license agreements. Amortization expense was $7.9 billion in 2023, $7.7 billion in 2022 and $7.7 billion in 2021 and was included in cost of products sold in the consolidated statements of earnings. The anticipated annual amortization expense for definite-lived intangible assets recorded as of December 31, 2023 is as follows: (in billions) 2024 2025 2026 2027 2028 Anticipated annual amortization expense $ 7.4 $ 7.0 $ 6.3 $ 5.6 $ 5.7 Indefinite-Lived Intangible Assets Indefinite-lived intangible assets represent acquired IPR&D associated with products that have not yet received regulatory approval. The company performs its annual impairment assessment of indefinite-lived intangible assets in the third quarter, or earlier if impairment indicators exist. During the first quarter of 2023, the company made a decision to revise the research and development plan for AGN-151607, a novel investigational neurotoxin for the prevention of postoperative atrial fibrillation in cardiac surgery patients. This decision contributed to a delay in the estimated timing of regulatory approval as well as a significant decrease in estimated future cash flows of the product and represented a triggering event which required the company to evaluate the underlying indefinite-lived intangible asset for impairment. The company utilized a discounted cash flow analysis to estimate the fair value which was below the carrying value of the intangible asset. Based on the revised cash flows, the company recorded a pre-tax impairment charge of $630 million to research and development expense in the consolidated statement of earnings for the first quarter of 2023. |
Integration and Restructuring P
Integration and Restructuring Plans | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Integration and Restructuring Plans | Integration and Restructuring Plans Allergan Integration Plan Following the closing of the Allergan acquisition, AbbVie implemented an integration plan designed to reduce costs, integrate and optimize the combined organization and incurred total cumulative charges of $2.5 billion through 2023. These costs consisted of severance and employee benefit costs (cash severance, non-cash severance, including accelerated equity award compensation expense, retention and other termination benefits) and other integration expenses. The following table summarizes the charges associated with the Allergan acquisition integration plan: year ended December 31 (in millions) 2023 2022 2021 Cost of products sold $ 89 $ 117 $ 132 Research and development 7 23 102 Selling, general and administrative 192 399 353 Total charges $ 288 $ 539 $ 587 The following table summarizes the cash activity in the recorded liability associated with the integration plan: year ended December 31 (in millions) Accrued balance as of December 31, 2020 $ 387 Charges 526 Payments and other adjustments (658) Accrued balance as of December 31, 2021 255 Charges 377 Payments and other adjustments (525) Accrued balance as of December 31, 2022 107 Charges 274 Payments and other adjustments (338) Accrued balance as of December 31, 2023 $ 43 Other Restructuring AbbVie continuously evaluates its operations to identify opportunities to optimize its manufacturing and R&D operations, commercial infrastructure and administrative costs and to respond to changes in its business environment. As a result, AbbVie management periodically approves individual restructuring plans to achieve these objectives. In 2023, 2022 and 2021, no such plans were individually significant. Restructuring charges recorded were $132 million in 2023, $241 million in 2022 and $59 million in 2021 and were primarily related to employee severance and contractual obligations. These charges were recorded in cost of products sold, R&D expense and SG&A expenses in the consolidated statements of earnings based on the classification of the affected employees or operations. The following table summarizes the cash activity in the restructuring reserve for 2023, 2022 and 2021: (in millions) Accrued balance as of December 31, 2020 $ 90 Charges 54 Payments and other adjustments (111) Accrued balance as of December 31, 2021 33 Charges 193 Payments and other adjustments (50) Accrued balance as of December 31, 2022 176 Charges 107 Payments and other adjustments (87) Accrued balance as of December 31, 2023 $ 196 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheets: as of December 31 (in millions) Balance sheet caption 2023 2022 Assets Operating Other assets $ 744 $ 737 Finance Property and equipment, net 35 25 Total lease assets $ 779 $ 762 Liabilities Operating Current Accounts payable and accrued liabilities $ 166 $ 166 Noncurrent Other long-term liabilities 735 754 Finance Current Current portion of long-term debt and finance lease obligations 15 17 Noncurrent Long-term debt and finance lease obligations 27 17 Total lease liabilities $ 943 $ 954 The following table summarizes the lease costs recognized in the consolidated statements of earnings: years ended December 31 (in millions) 2023 2022 2021 Operating lease cost $ 189 $ 201 $ 226 Short-term lease cost 28 67 56 Variable lease cost 88 71 71 Total lease cost $ 305 $ 339 $ 353 In December 2022, the company entered into an agreement to sublease a portion of its Madison, New Jersey office space through the end of the original lease maturity in 2030. As a result of this agreement, the company recognized an impairment loss on its right-of-use asset of $69 million and wrote-off the related leasehold improvements of $37 million. These losses were recorded to SG&A expense Sublease income and finance lease costs were insignificant in 2023, 2022 and 2021. The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: years ended December 31 2023 2022 2021 Weighted-average remaining lease term (years) Operating 7 8 7 Finance 3 2 3 Weighted-average discount rate Operating 3.0 % 2.6 % 2.4 % Finance 3.6 % 1.5 % 1.1 % The following table presents supplementary cash flow information regarding the company's leases: years ended December 31 (in millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 214 $ 212 $ 236 Right-of-use assets obtained in exchange for new operating lease liabilities 173 235 66 Finance lease cash flows were insignificant in 2023, 2022 and 2021. The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2023: (in millions) Operating Finance Total (a) 2024 $ 194 $ 15 $ 209 2025 169 14 183 2026 145 12 157 2027 115 2 117 2028 93 — 93 Thereafter 292 — 292 Total lease payments 1,008 43 1,051 Less: Interest 107 1 108 Present value of lease liabilities $ 901 $ 42 $ 943 (a) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Leases | Leases AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheets: as of December 31 (in millions) Balance sheet caption 2023 2022 Assets Operating Other assets $ 744 $ 737 Finance Property and equipment, net 35 25 Total lease assets $ 779 $ 762 Liabilities Operating Current Accounts payable and accrued liabilities $ 166 $ 166 Noncurrent Other long-term liabilities 735 754 Finance Current Current portion of long-term debt and finance lease obligations 15 17 Noncurrent Long-term debt and finance lease obligations 27 17 Total lease liabilities $ 943 $ 954 The following table summarizes the lease costs recognized in the consolidated statements of earnings: years ended December 31 (in millions) 2023 2022 2021 Operating lease cost $ 189 $ 201 $ 226 Short-term lease cost 28 67 56 Variable lease cost 88 71 71 Total lease cost $ 305 $ 339 $ 353 In December 2022, the company entered into an agreement to sublease a portion of its Madison, New Jersey office space through the end of the original lease maturity in 2030. As a result of this agreement, the company recognized an impairment loss on its right-of-use asset of $69 million and wrote-off the related leasehold improvements of $37 million. These losses were recorded to SG&A expense Sublease income and finance lease costs were insignificant in 2023, 2022 and 2021. The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: years ended December 31 2023 2022 2021 Weighted-average remaining lease term (years) Operating 7 8 7 Finance 3 2 3 Weighted-average discount rate Operating 3.0 % 2.6 % 2.4 % Finance 3.6 % 1.5 % 1.1 % The following table presents supplementary cash flow information regarding the company's leases: years ended December 31 (in millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 214 $ 212 $ 236 Right-of-use assets obtained in exchange for new operating lease liabilities 173 235 66 Finance lease cash flows were insignificant in 2023, 2022 and 2021. The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2023: (in millions) Operating Finance Total (a) 2024 $ 194 $ 15 $ 209 2025 169 14 183 2026 145 12 157 2027 115 2 117 2028 93 — 93 Thereafter 292 — 292 Total lease payments 1,008 43 1,051 Less: Interest 107 1 108 Present value of lease liabilities $ 901 $ 42 $ 943 (a) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Debt, Credit Facilities and Com
Debt, Credit Facilities and Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Debt, Credit Facilities and Commitments and Contingencies | |
Debt, Credit Facilities and Commitments and Contingencies | Debt, Credit Facilities and Commitments and Contingencies The following table summarizes long-term debt: as of December 31 (dollars in millions) 2023 Effective interest rate (a) 2023 2022 Effective interest rate (a) 2022 1.50-3.75% aggregate notes due 2023 0.49-3.84% $ — 0.49-3.84% $ 3,132 Floating rate term loans due 2023 5.07 % — 2.45 % 1,000 2.60% senior notes due 2024 2.69 % 3,750 2.69 % 3,750 1.375% senior euro notes due 2024 (€1,450 principal) 1.46 % 1,610 1.46 % 1,543 3.85% senior notes due 2024 2.07 % 1,032 2.07 % 1,032 1.25% senior euro notes due 2024 (€700 principal) 0.65 % 777 0.65 % 745 3.60% senior notes due 2025 3.66 % 3,750 3.66 % 3,750 3.80% senior notes due 2025 2.09 % 3,021 2.09 % 3,021 Floating rate term loans due 2025 5.95 % 2,000 2.82 % 2,000 2.95% senior notes due 2026 3.02 % 4,000 3.02 % 4,000 3.20% senior notes due 2026 3.28 % 2,000 3.28 % 2,000 0.75% senior euro notes due 2027 (€750 principal) 0.86 % 833 0.86 % 798 4.25% senior notes due 2028 4.38 % 1,750 4.38 % 1,750 2.125% senior euro notes due 2028 (€750 principal) 2.18 % 833 2.18 % 798 2.625% senior euro notes due 2028 (€500 principal) 1.20 % 555 1.20 % 532 3.20% senior notes due 2029 3.25 % 5,500 3.25 % 5,500 2.125% senior euro notes due 2029 (€550 principal) 1.19 % 611 1.19 % 585 1.25% senior euro notes due 2031 (€650 principal) 1.30 % 722 1.30 % 691 4.55% senior notes due 2035 3.52 % 1,789 3.52 % 1,789 4.50% senior notes due 2035 4.58 % 2,500 4.58 % 2,500 4.30% senior notes due 2036 4.37 % 1,000 4.37 % 1,000 4.05% senior notes due 2039 4.11 % 4,000 4.11 % 4,000 4.40% senior notes due 2042 4.46 % 2,600 4.46 % 2,600 4.625% senior notes due 2042 4.00 % 457 4.00 % 457 4.85% senior notes due 2044 4.11 % 1,074 4.11 % 1,074 4.70% senior notes due 2045 4.73 % 2,700 4.73 % 2,700 4.75% senior notes due 2045 4.20 % 881 4.20 % 881 4.45% senior notes due 2046 4.50 % 2,000 4.50 % 2,000 4.875% senior notes due 2048 4.94 % 1,750 4.94 % 1,750 4.25% senior notes due 2049 4.29 % 5,750 4.29 % 5,750 Fair value hedges (266) (346) Unamortized bond discounts (106) (116) Unamortized deferred financing costs (198) (222) Unamortized bond premiums (b) 668 793 Other 42 33 Total long-term debt and finance lease obligations 59,385 63,270 Current portion 7,191 4,135 Noncurrent portion $ 52,194 $ 59,135 (a) Excludes the effect of any related interest rate swaps. (b) Represents unamortized purchase price adjustments of Allergan debt. Senior notes and floating rate term loans are redeemable prior to maturity at a redemption price equal to the principal amount plus a make-whole premium and AbbVie may redeem these debt securities at par generally between one and six months prior to maturity. At December 31, 2023, the company was in compliance with its senior note covenants and term loan covenants. Maturities of Long-Term Debt as of and for the years ending December 31 (in millions) 2024 $ 7,170 2025 8,771 2026 6,000 2027 833 2028 3,138 Thereafter 33,333 Total obligations and commitments 59,245 Fair value hedges, unamortized bond premiums/discounts, deferred financing costs and finance lease obligations 140 Total long-term debt and finance lease obligations $ 59,385 Repayment and Issuance of Long-Term Debt In 2023, the company repaid a $1.0 billion floating rate three-year term loan, $350 million aggregate principal amount of 2.80% senior notes and $1.0 billion aggregate principal amount of 2.85% senior notes at maturity. During the quarter ended December 31, 2023, the company also repaid €500 million aggregate principal amount of 1.50% senior euro notes and $1.3 billion aggregate principal amount of 3.75% senior notes at maturity. In 2022, the company repaid $2.9 billion aggregate principal amount of 3.450% senior notes, $1.7 billion aggregate principal amount of 3.25% senior notes and $1.0 billion aggregate principal amount of 3.2% senior notes. These repayments were ma de by exercising, under the terms of the notes ranging between 60 and 90-day early redemptions at 100% of the principal amount. During the quarter ended December 31, 2022, the company also paid $3.1 billion aggregate principal amount of 2.9% senior notes, $3.0 billion aggregate principal amount of 2.3% senior notes and $750 million aggregate principal amount of floating rate senior notes at maturity. Additionally in 2022, the company refinanced its $2.0 billion floating rate five-year term loan. As part of the refinancing, the company repaid the existing $2.0 billion term loan due May 2025 and borrowed $2.0 billion under a new term loan at a lower floating rate. All other significant terms of the loan, including the maturity date, remained unchanged after the refinancing. Financing Related to ImmunoGen and Cerevel Therapeutics Acquisitions In connection with the acquisition of ImmunoGen and proposed acquisition of Cerevel Therapeutics, on December 6, 2023, AbbVie entered into a $9.0 billion 364-day bridge credit agreement and on December 21, 2023, AbbVie entered into a 364-day term loan credit agreement with an aggregate principal amount of $5.0 billion. No amounts were drawn under the bridge credit agreement or term loan credit agreement as of December 31, 2023 . Subsequent to 2023, on February 12, 2024, AbbVie borrowed $5.0 billion under the term loan credit agreement. See Note 5 for additional information. Short-Term Borrowings No commercial paper borrowings were issued during 2023 or 2022 and there were no commercial paper borrowings outstanding as of December 31, 2023 and December 31, 2022. Subsequent to 2023, AbbVie issued commercial paper borrowings of which $1.7 billion were outstanding as of the date of filing this Annual Report on Form 10-K. In March 2023, AbbVie entered into an amended and restated five-year revolving credit facility. The amendment increased the unsecured revolving credit facility commitments from $4.0 billion to $5.0 billion and extended the maturity date of the facility from August 2023 to March 2028. This amended facility enables the company to borrow funds on an unsecured basis at variable interest rates and contains various covenants. At December 31, 2023, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant. No amounts were outstanding under the company's credit facilities as of December 31, 2023 and December 31, 2022. Contingencies and Guarantees In connection with the separation, AbbVie has indemnified Abbott for all liabilities resulting from the operation of AbbVie's business other than income tax liabilities with respect to periods prior to the distribution date and other liabilities as agreed to by AbbVie and Abbott. AbbVie has no material exposures to off-balance sheet arrangements and no special-purpose entities. In the ordinary course of business, AbbVie has periodically entered into third-party agreements, such as the assignment of product rights, which have resulted in AbbVie becoming secondarily liable for obligations for which AbbVie had previously been primarily liable. Based upon past experience, the likelihood of payments under these agreements is remote. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 12 Months Ended | |
Dec. 31, 2023 | ||
Fair Value Disclosures [Abstract] | ||
Financial Instruments and Fair Value Measures | Financial Instruments and Fair Value Measures Risk Management Policy The company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. AbbVie's hedging policy attempts to manage these risks to an acceptable level based on the company's judgment of the appropriate trade-off between risk, opportunity and costs. The company uses derivative and nonderivative instruments to reduce its exposure to foreign currency exchange rates. AbbVie also periodically enters into interest rate swaps in which the company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. Derivative instruments are not used for trading purposes or to manage exposure to changes in interest rates for investment securities, and none of the company's outstanding derivative instruments contain credit risk related contingent features; collateral is generally not required. 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 In 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 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 2019 and the resulting net gain was included in AOCI . This gain is reclassified to interest expense, net over the term of the related debt. The company was a party to interest rate swap contracts designated as cash flow hedges that matured in November 2022. The effect of the hedge contracts was to change a floating-rate interest obligation to a fixed rate for that portion of the floating-rate debt. Realized and unrealized gains or losses were included in AOCI and reclassified to interest expense, net over the lives of the floating-rate debt. In June 2023, the company entered into a cross-currency swap contract that matured in November 2023 with a notional amount totaling €433 million to hedge the company’s exposure to changes in future cash flows of foreign currency denominated debt related to changes in foreign exchange rates. The cross-currency swap contract was designated as a cash flow hedge and effectively converted the interest and principal payments of the related foreign currency denominated debt to U.S. dollars. The unrealized gains and losses on the contract were included in AOCI and reclassified to net foreign exchange loss over the term of the related 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 gains or loss in the 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 $7.9 billion at December 31, 2023 and $6.5 billion at December 31, 2022. 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 an aggregate principal amount of senior Euro notes designated as net investment hedges of €5.4 billion at December 31, 2023 and €5.9 billion December 31, 2022. In addition, the company had foreign currency forward exchange contracts designated as net investment hedges with notional amounts totaling €4.9 billion, SEK1.4 billion, CAD750 million and CHF50 million at December 31, 2023 and €4.3 billion, SEK2.0 billion, CAD750 million and CHF90 million at December 31, 2022. 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. The company is a party to interest rate swap contracts designated as fair value hedges with notional amounts totaling $5.0 billion at December 31, 2023 and $4.5 billion at December 31, 2022. 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 consolidated balance sheets: Fair value - Derivatives in asset position Fair value - as of December 31 (in millions) Balance sheet caption 2023 2022 Balance sheet caption 2023 2022 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 12 $ 49 Accounts payable and accrued liabilities $ 32 $ 8 Designated as cash flow hedges Other assets — 1 Other long-term liabilities — — Designated as net investment hedges Prepaid expenses and other 13 6 Accounts payable and accrued liabilities 66 36 Designated as net investment hedges Other assets — 74 Other long-term liabilities 69 47 Not designated as hedges Prepaid expenses and other 41 33 Accounts payable and accrued liabilities 36 41 Interest rate swap contracts Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities — 17 Designated as fair value hedges Other assets — — Other long-term liabilities 293 375 Total derivatives $ 66 $ 163 $ 496 $ 524 While certain derivatives are subject to netting arrangements with the company's counterparties, the company does not offset derivative assets and liabilities within the consolidated balance sheets. The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): years ended in December 31 (in millions) 2023 2022 2021 Foreign currency forward exchange contracts Designated as cash flow hedges $ (2) $ 103 $ 82 Designated as net investment hedges (144) 395 341 Cross-currency swap contracts designated as cash flow hedges (6) — — Interest rate swap contracts designated as cash flow hedges — 6 2 Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax gains of $7 million into cost of products sold for foreign currency cash flow hedges and pre-tax gains of $23 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 losses of $252 million in 2023, pre-tax gains of $406 million in 2022 and pre-tax gains of $577 million in 2021. The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI. years ended December 31 (in millions) Statement of earnings caption 2023 2022 2021 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 77 $ 82 $ (87) Designated as net investment hedges Interest expense, net 112 94 26 Not designated as hedges Net foreign exchange loss 33 (156) (100) Treasury rate lock agreements designated as cash flow hedges Interest expense, net 24 23 24 Cross-currency swap contracts designated as cash flow hedges Net foreign exchange loss (6) — — Interest rate swap contracts Designated as cash flow hedges Interest expense, net — (1) (24) Designated as fair value hedges Interest expense, net 98 (402) (127) Debt designated as hedged item in fair value hedges Interest expense, net (98) 402 127 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 consolidated balance sheet as of December 31, 2023: Basis of fair value measurement (in millions) Total Quoted prices in active markets for Significant other observable Significant unobservable inputs Assets Cash and equivalents $ 12,814 $ 6,223 $ 6,591 $ — Money market funds and time deposits 10 — 10 — Debt securities 26 — 26 — Equity securities 111 86 25 — Foreign currency contracts 66 — 66 — Total assets $ 13,027 $ 6,309 $ 6,718 $ — Liabilities Interest rate swap contracts $ 293 $ — $ 293 $ — Foreign currency contracts 203 — 203 — Contingent consideration 19,890 — — 19,890 Total liabilities $ 20,386 $ — $ 496 $ 19,890 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2022: Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant unobservable inputs Assets Cash and equivalents $ 9,201 $ 4,201 $ 5,000 $ — Money market funds and time deposits 21 — 21 — Debt securities 28 — 28 — Equity securities 91 59 32 — Foreign currency contracts 163 — 163 — Total assets $ 9,504 $ 4,260 $ 5,244 $ — Liabilities Interest rate swap contracts $ 392 $ — $ 392 $ — Foreign currency contracts 132 — 132 — Contingent consideration 16,384 — — 16,384 Total liabilities $ 16,908 $ — $ 524 $ 16,384 Money market funds and time deposits are valued using relevant observable market inputs including quoted prices for similar assets and interest rate curves. Equity securities primarily consist of investments for which the fair values were determined by using the published market prices per unit multiplied by the number of units held, without consideration of transaction costs. 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 was calculated using the following significant unobservable inputs: 2023 2022 years ended December 31 (in millions) Range Weighted Average (a) Range Weighted Average (a) Discount rate 4.3% - 5.9% 4.5% 4.7% - 5.1% 4.8 % Probability of payment for unachieved milestones (b) N/A - N/A N/A 100% - 100% 100 % Probability of payment for royalties by indication (C) 89% - 100% 99% 56% - 100% 99 % Projected year of payments 2024 - 2034 2027 2023 - 2034 2028 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) All significant milestones were achieved and paid as of December 31, 2023. (c) Excluding approved indications, the estimated probability of payment was 89% at December 31, 2023 and was 56% at December 31, 2022. 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: years ended December 31 (in millions) 2023 2022 2021 Beginning balance $ 16,384 $ 14,887 $ 12,997 Additions (a) — 32 — Change in fair value recognized in net earnings 5,128 2,761 2,679 Payments (1,622) (1,296) (789) Ending balance $ 19,890 $ 16,384 $ 14,887 (a) Additions during the year ended December 31, 2022, represent contingent consideration liabilities assumed in the DJS acquisition. The change in fair value recognized in net earnings is recorded in other expense, net in the consolidated statements of earnings and included charges of $5.1 billion in 2023, $2.8 billion in 2022 and $2.7 billion in 2021. In 2023, the change in fair value reflected higher estimated Skyrizi sales driven by stronger market share uptake, the passage of time and lower discount rates. In 2022, the change in fair value reflected higher estimated Skyrizi sales driven by stronger market share uptake and the passage of time, partially offset by higher discount rates. In 2021, the change in fair value reflected higher estimated Skyrizi sales driven by stronger market share uptake, favorable clinical trial results and the passage of time, partially offset by higher discount rates. Contingent consideration payments of amounts up to the initial acquisition date fair value are classified as cash outflows from financing activities and payments of amounts in excess of the initial acquisition date fair value are classified as cash outflows from operating activities in the consolidated statements of cash flows. 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 December 31, 2023 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair values Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 7,191 $ 7,069 $ 6,862 $ 207 $ — Long-term debt and finance lease obligations, excluding fair value hedges 52,460 49,541 48,983 558 — Total liabilities $ 59,651 $ 56,610 $ 55,845 $ 765 $ — The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2022 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair values Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Liabilities Short-term borrowings $ 1 $ 1 $ — $ 1 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 4,152 4,121 3,930 191 — Long-term debt and finance lease obligations, excluding fair value hedges 59,463 54,073 53,365 708 — Total liabilities $ 63,616 $ 58,195 $ 57,295 $ 900 $ — 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 $159 million as of December 31, 2023 and $129 million as of December 31, 2022. No significant cumulative upward or downward adjustments have been recorded for these investments as of December 31, 2023. Concentrations of Risk Of total net accounts receivable, three U.S. wholesalers accounted for 81% as of December 31, 2023 and 82% as of December 31, 2022, and substantially all of AbbVie's pharmaceutical product net revenues in the United States were to these three wholesalers. Humira (adalimumab) is AbbVie's single largest product and accounted for approximately 27% of AbbVie's total net revenues in 2023, 37% in 2022 and 37% in 2021. | [1] |
[1] Additions during the year ended December 31, 2022, represent contingent consideration liabilities assumed in the DJS acquisition. |
Post-Employment Benefits
Post-Employment Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Post-Employment Benefits | Post-Employment Benefits AbbVie sponsors various pension and other post-employment benefit plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. In addition, AbbVie provides medical benefits, primarily to eligible retirees in the United States and Puerto Rico, through other post-retirement benefit plans. Net obligations for these plans have been reflected on the consolidated balance sheets as of December 31, 2023 and 2022. The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans: Defined benefit plans Other post-employment plans as of and for the years ended December 31 (in millions) 2023 2022 2023 2022 Projected benefit obligations Beginning of period $ 8,588 $ 12,006 $ 667 $ 850 Service cost 270 454 37 51 Interest cost 432 297 37 23 Employee contributions — 1 — — Amendments — — — (2) Actuarial (gain) loss 491 (3,668) 89 (229) Benefits paid (316) (294) (35) (25) Other, primarily foreign currency translation adjustments 79 (208) 1 (1) End of period 9,544 8,588 796 667 Fair value of plan assets Beginning of period 8,472 10,655 — — Actual return on plan assets 1,230 (2,031) — — Company contributions 366 357 35 25 Employee contributions — 1 — — Benefits paid (316) (294) (35) (25) Other, primarily foreign currency translation adjustments 87 (216) — — End of period 9,839 8,472 — — Funded status, end of period $ 295 $ (116) $ (796) $ (667) Amounts recognized on the consolidated balance sheets Other assets $ 1,086 $ 896 $ — $ — Accounts payable and accrued liabilities (17) (14) (32) (27) Other long-term liabilities (774) (998) (764) (640) Net obligation $ 295 $ (116) $ (796) $ (667) Actuarial loss, net $ 2,290 $ 2,365 $ 282 $ 205 Prior service cost (credit) 1 3 (297) (333) Accumulated other comprehensive loss (income) $ 2,291 $ 2,368 $ (15) $ (128) Related to international defined benefit plans the projected benefit obligations in the table above included $2.4 billion at December 31, 2023 and $2.1 billion at December 31, 2022. For plans reflected in the table above, the accumulated benefit obligations were $8.6 billion at December 31, 2023 and $7.7 billion at December 31, 2022. The 2023 actuarial loss of $491 million for qualified pension plans and actuarial loss of $89 million for other post-employment plans were primarily driven by a decrease in the discount rate and changes to experience impact and medical trends assumptions. The 2022 actuarial gain of $3.7 billion for qualified pension plans and actuarial gain of $229 million for other post-employment plans were primarily driven by an increase in the discount rate. Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets as of December 31 (in millions) 2023 2022 Accumulated benefit obligation $ 1,410 $ 1,211 Fair value of plan assets 890 746 Information For Pension Plans With A Projected Benefit Obligation In Excess Of Plan Assets as of December 31 (in millions) 2023 2022 Projected benefit obligation $ 6,343 $ 5,592 Fair value of plan assets 5,552 4,580 AbbVie's U.S. pension plan was modified to close the plan to new entrants effective January 1, 2022. In addition, a change to AbbVie's U.S. retiree health benefit plan was approved in 2020 and communicated to employees and retirees in October 2020. Beginning in 2022, Medicare-eligible retirees and Medicare-eligible dependents choose health care coverage from insurance providers through a private Medicare exchange. AbbVie will continue to provide financial support to Medicare-eligible retirees. Amounts Recognized in Other Comprehensive Income (Loss) The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss): years ended December 31 (in millions) 2023 2022 2021 Defined benefit plans Actuarial gain $ (16) $ (925) $ (345) Amortization of prior service cost (1) (2) (2) Amortization of actuarial loss (16) (231) (288) Foreign exchange loss (gain) and other (44) 17 (27) Total gain $ (77) $ (1,141) $ (662) Other post-employment plans Actuarial loss (gain) $ 89 $ (229) $ 10 Prior service credit — (2) — Amortization of prior service credit 36 38 39 Amortization of actuarial loss (12) (26) (32) Total loss (gain) $ 113 $ (219) $ 17 Net Periodic Benefit Cost years ended December 31 (in millions) 2023 2022 2021 Defined benefit plans Service cost $ 270 $ 454 $ 440 Interest cost 432 297 237 Expected return on plan assets (723) (712) (663) Amortization of prior service cost 1 2 2 Amortization of actuarial loss 16 231 288 Net periodic benefit cost (credit) $ (4) $ 272 $ 304 Other post-employment plans Service cost $ 37 $ 51 $ 48 Interest cost 37 23 19 Amortization of prior service credit (36) (38) (39) Amortization of actuarial loss 12 26 32 Net periodic benefit cost $ 50 $ 62 $ 60 The components of net periodic benefit cost other than service cost are included in other expense, net in the consolidated statements of earnings. Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date as of December 31 2023 2022 Defined benefit plans Discount rate 4.8 % 5.0 % Rate of compensation increases 4.8 % 5.5 % Cash balance interest crediting rate 4.4 % 2.7 % Other post-employment plans Discount rate 5.1 % 5.3 % The assumptions used in calculating the December 31, 2023 measurement date benefit obligations will be used in the calculation of net periodic benefit cost in 2024. Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost years ended December 31 2023 2022 2021 Defined benefit plans Discount rate for determining service cost 5.0 % 3.0 % 2.6 % Discount rate for determining interest cost 4.9 % 2.6 % 2.2 % Expected long-term rate of return on plan assets 7.3 % 7.1 % 7.1 % Expected rate of change in compensation 4.8 % 5.2 % 4.6 % Cash balance interest crediting rate 2.7 % 2.7 % 2.8 % Other post-employment plans Discount rate for determining service cost 5.3 % 3.3 % 3.0 % Discount rate for determining interest cost 5.1 % 2.7 % 2.2 % For the December 31, 2023 post-retirement health care obligations remeasurement, the company assumed a 7.4% pre-65 (2.1% post-65) annual rate of increase in the per capita cost of covered health care benefits. The pre-65 rate was assumed to decrease gradually to 4.5% (1.8% post-65) in 2032 and remain at that level thereafter. For purposes of measuring the 2023 post-retirement health care costs, the company assumed a 6.2% pre-65 (2.0% post-65) annual rate of increase in the per capita cost of covered health care benefits. The pre-65 rate was assumed to decrease gradually to 4.5% (1.8% post-65) for 2030 and remain at that level thereafter. Defined Benefit Pension Plan Assets Basis of fair value measurement as of December 31 (in millions) 2023 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Equities U.S. large cap (a) $ 1,018 $ 1,018 $ — $ — U.S. mid cap (b) 173 173 — — International (c) 488 488 — — Fixed income securities U.S. government securities (d) 246 62 184 — Corporate debt instruments (d) 714 155 559 — Non-U.S. government securities (d) 461 301 160 — Other (d) 126 124 2 — Absolute return funds (e) 155 66 89 — Other (f) 414 413 1 — Total $ 3,795 $ 2,800 $ 995 $ — Total assets measured at NAV 6,044 Fair value of plan assets $ 9,839 Basis of fair value measurement as of December 31 (in millions) 2022 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Equities U.S. large cap (a) $ 949 $ 949 $ — $ — U.S. mid cap (b) 157 157 — — International (c) 327 327 — — Fixed income securities U.S. government securities (d) 237 69 168 — Corporate debt instruments (d) 680 144 536 — Non-U.S. government securities (d) 548 402 146 — Other (d) 84 81 3 — Absolute return funds (e) 91 4 87 — Real assets 9 9 — — Other (f) 278 277 1 — Total $ 3,360 $ 2,419 $ 941 $ — Total assets measured at NAV 5,112 Fair value of plan assets $ 8,472 (a) A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. (b) A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. (c) A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. (d) Securities held by actively managed accounts, index funds and mutual funds. (e) Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. (f) Investments in cash and cash equivalents. Equities and registered investment companies having quoted prices are valued at the published market prices. Fixed income securities that are valued using significant other observable inputs are quoted at prices obtained from independent financial service industry-recognized vendors. Investments held in pooled investment funds, common collective trusts or limited partnerships are valued at the net asset value (NAV) practical expedient to estimate fair value. The NAV is provided by the fund administrator and is based on the value of the underlying assets owned by the fund minus its liabilities. The investment mix of equity securities, fixed income and other asset allocation strategies is based upon achieving a desired return, balancing higher return, more volatile equity securities and lower return, less volatile fixed income securities. Investment allocations are established for each plan and are generally made across a range of markets, industry sectors, capitalization sizes and in the case of fixed income securities, maturities and credit quality. The 2023 target investment allocation for the AbbVie Pension Plan was 62.5% in equity securities, 22.5% in fixed income securities and 15% in asset allocation strategies and other holdings. There are no known significant concentrations of risk in the plan assets of the AbbVie Pension Plan or of any other plans. The expected return on plan assets assumption for each plan is based on management's expectations of long-term average rates of return to be achieved by the underlying investment portfolio. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions. Expected Benefit Payments The following table summarizes total benefit payments expected to be paid to plan participants including payments funded from both plan and company assets: years ending December 31 (in millions) Defined Other 2024 $ 339 $ 33 2025 364 37 2026 387 41 2027 413 44 2028 434 47 2029 to 2033 2,580 292 Defined Contribution Plan AbbVie maintains defined contribution savings plans for the benefit of its eligible employees. The expense recognized for these plans was $398 million in 2023, $474 million in 2022 and $267 million in 2021. AbbVie provides certain other post-employment benefits, primarily salary continuation arrangements, to qualifying employees and accrues for the related cost over the service lives of the employees. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Stock-Based Compensation In May 2021, stockholders of the company approved the AbbVie Amended and Restated 2013 Incentive Stock Program (the Amended Plan), which amends and restates the AbbVie 2013 Incentive Stock Program (2013 ISP). AbbVie grants stock-based awards to eligible employees pursuant to the Amended Plan, which provides for several different forms of benefits, including non-qualified stock options, RSUs and various performance-based awards. Under the Amended Plan, a total of 144 million shares of AbbVie common stock have been reserved for issuance as awards to AbbVie employees. AbbVie measures compensation expense for stock-based awards based on the grant date fair value of the awards and the estimated number of awards that are expected to vest. Forfeitures are estimated based on historical experience at the time of grant and are revised in subsequent periods if actual forfeitures differ from those estimates. Compensation cost for stock-based awards is amortized over the service period, which could be shorter than the vesting period if an employee is retirement eligible. Retirement eligible employees generally are those who are age 55 or older and have at least 10 years of service. Stock-based compensation expense is principally related to awards issued pursuant to the 2013 ISP and the Amended Plan and is summarized as follows: years ended December 31 (in millions) 2023 2022 2021 Cost of products sold $ 46 $ 38 $ 46 Research and development 278 232 226 Selling, general and administrative 423 401 420 Pre-tax compensation expense 747 671 692 Tax benefit 136 122 126 After-tax compensation expense $ 611 $ 549 $ 566 Realized excess tax benefits associated with stock-based compensation totaled $90 million in 2023, $116 million in 2022 and $50 million in 2021. Stock Options Stock options awarded to employees typically have a contractual term of 10 years and generally vest in one-third increments over a 3-year period. The exercise price is equal to at least 100% of the market value on the date of grant. The fair value is determined using the Black-Scholes model. The weighted-average grant-date fair values of stock options granted were $29.89 in 2023, $22.83 in 2022 and $16.28 in 2021. The following table summarizes AbbVie stock option activity in 2023: (options in thousands, aggregate intrinsic value in millions) Options Weighted- average Weighted-average remaining Aggregate intrinsic value Outstanding at December 31, 2022 9,320 $ 91.84 4.8 $ 650 Granted 642 149.30 Exercised (2,410) 73.21 Lapsed and forfeited (71) 90.43 Outstanding at December 31, 2023 7,481 $ 102.80 5.0 $ 390 Exercisable at December 31, 2023 5,954 $ 93.85 4.2 $ 364 The total intrinsic value of options exercised was $189 million in 2023, $295 million in 2022 and $239 million in 2021. The total fair value of options vested during 2023 was $21 million. As of December 31, 2023, $6 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 RSUs awarded to employees other than senior executives and other key employees generally vest in ratable increments over a three The majority of the equity awards AbbVie grants to its senior executives and other key employees are performance-based. Equity awards granted to senior executives and other key employees consist of a combination of performance-vested RSUs and performance shares as well as non-qualified stock options described above. The performance-vested RSUs have the potential to vest in one-third increments during a three-year performance period and may be earned based on AbbVie’s return on invested capital (ROIC) performance relative to a defined peer group of pharmaceutical, biotech and life science companies. The recipient may receive one share of AbbVie common stock for each vested award. The performance shares have the potential to vest over a three-year performance period and may be earned based on AbbVie’s EPS achievement and AbbVie’s total stockholder return (TSR) (a market condition) relative to a defined peer group of pharmaceutical, biotech and life sciences companies. Dividend equivalents on performance-vested RSUs and performance shares accrue during the performance period and are payable at vesting only to the extent that shares are earned. The weighted-average grant-date fair value of RSUs and performance shares generally is determined based on the number of shares/units granted and the quoted price of AbbVie’s common stock on the date of grant. The weighted-average grant-date fair values of performance shares with a TSR market condition are determined using the Monte Carlo simulation model. The following table summarizes AbbVie RSU and performance share activity for 2023: (share units in thousands) Share units Weighted-average grant date fair value Outstanding at December 31, 2022 13,031 $ 116.84 Granted 5,872 141.63 Vested (6,790) 107.96 Forfeited (1,374) 113.65 Outstanding at December 31, 2023 10,739 $ 136.42 The fair market value of RSUs and performance shares (as applicable) vested was $1.0 billion in 2023, $1.0 billion in 2022 and $718 million in 2021. As of December 31, 2023, $571 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 Cash dividends declared per common share totaled $5.99 in 2023, $5.71 in 2022 and $5.31 in 2021. The following table summarizes quarterly cash dividends declared during 2023, 2022 and 2021: 2023 2022 2021 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 10/26/23 02/15/24 $1.55 10/28/22 02/15/23 $1.48 10/29/21 02/15/22 $1.41 09/08/23 11/15/23 $1.48 09/09/22 11/15/22 $1.41 09/10/21 11/15/21 $1.30 06/22/23 08/15/23 $1.48 06/23/22 08/15/22 $1.41 06/17/21 08/16/21 $1.30 02/16/23 05/15/23 $1.48 02/17/22 05/16/22 $1.41 02/18/21 05/14/21 $1.30 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. On February 16, 2023, AbbVie's board of directors authorized a $5.0 billion increase to the existing stock repurchase authorization. AbbVie repurchased 10 million shares for $1.6 billion in 2023, 8 million shares for $1.1 billion in 2022 and 6 million shares for $670 million in 2021. AbbVie's remaining stock repurchase authorization was $4.8 billion as of December 31, 2023. Accumulated Other Comprehensive Loss The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for 2023, 2022 and 2021: (in millions) (brackets denote losses) Foreign currency translation adjustments Net investment hedging activities Pension Cash flow hedging activities Total Balance as of December 31, 2020 $ 583 $ (790) $ (3,067) $ 157 $ (3,117) Other comprehensive income (loss) before reclassifications (1,153) 720 298 76 (59) Net losses (gains) reclassified from accumulated other comprehensive loss — (21) 223 75 277 Net current-period other comprehensive income (loss) (1,153) 699 521 151 218 Balance as of December 31, 2021 (570) (91) (2,546) 308 (2,899) Other comprehensive income (loss) before reclassifications (943) 629 915 91 692 Net losses (gains) reclassified from accumulated other comprehensive loss — (74) 173 (91) 8 Net current-period other comprehensive income (loss) (943) 555 1,088 — 700 Balance as of December 31, 2022 (1,513) 464 (1,458) 308 (2,199) Other comprehensive income (loss) before reclassifications 407 (311) (23) (10) 63 Net gains reclassified from accumulated other comprehensive loss — (88) (7) (74) (169) Net current-period other comprehensive income (loss) 407 (399) (30) (84) (106) Balance as of December 31, 2023 $ (1,106) $ 65 $ (1,488) $ 224 $ (2,305) Other comprehensive income (loss) for 2023 included foreign currency translation adjustments totaling gains of $407 million principally due to the impact of the strengthening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling losses of $399 million. Other comprehensive income for 2022 included pension and post-employment benefit plan gains of $1.1 billion primarily due to actuarial gains driven by higher discount rates partially offset by losses on plan assets. Other comprehensive income (loss) for 2022 also included foreign currency translation adjustments totaling losses of $943 million principally due to the impact of the weakening of the Euro on the translation of the company's Euro-denominated assets and the offsetting impact of net investment hedging activities totaling gains of $555 million. Other comprehensive income (loss) for 2021 included foreign currency translation adjustments totaling losses of $1.2 billion principally due to the impact of the weakening of the Euro on the translation of the company's Euro-denominated assets and the offsetting impact of net investment hedging activities totaling gains of $699 million. The table below presents the impact on AbbVie's consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: years ended December 31 (in millions) (brackets denote gains) 2023 2022 2021 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (112) $ (94) $ (26) Tax expense 24 20 5 Total reclassifications, net of tax $ (88) $ (74) $ (21) Pension and post-employment benefits Amortization of actuarial losses (gains) and other (b) $ (7) $ 221 $ 283 Tax expense (benefit) — (48) (60) Total reclassifications, net of tax $ (7) $ 173 $ 223 Cash flow hedging activities Losses (gains) on foreign currency forward exchange contracts (c) $ (77) $ (82) $ 87 Gains on treasury rate lock agreements (a) (24) (23) (24) Losses on interest rate swap contracts (a) — 1 24 Losses on cross-currency swap contracts (d) 6 — — Tax expense (benefit) 21 13 (12) Total reclassifications, net of tax $ (74) $ (91) $ 75 (a) Amounts are included in interest expense, net (see Note 11). (b) Amounts are included in the computation of net periodic benefit cost (see Note 12). (c) Amounts are included in cost of products sold (see Note 11). (d) Amounts are included in net foreign exchange loss (see Note 11). Other In addition to common stock, AbbVie's authorized capital includes 200 million shares of preferred stock, par value $0.01. As of December 31, 2023, no shares of preferred stock were issued or outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings Before Income Tax Expense years ended December 31 (in millions) 2023 2022 2021 Domestic $ (3,475) $ (4,608) $ (1,644) Foreign 9,725 18,085 14,633 Total earnings before income tax expense $ 6,250 $ 13,477 $ 12,989 Income Tax Expense years ended December 31 (in millions) 2023 2022 2021 Current Domestic $ 3,272 $ 2,647 $ 1,987 Foreign 994 916 351 Total current taxes $ 4,266 $ 3,563 $ 2,338 Deferred Domestic $ (2,324) $ (1,512) $ (839) Foreign (565) (419) (59) Total deferred taxes $ (2,889) $ (1,931) $ (898) Total income tax expense $ 1,377 $ 1,632 $ 1,440 Effective Tax Rate Reconciliation years ended December 31 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % Effect of foreign operations 8.0 (4.4) (5.4) U.S. tax credits (3.1) (2.8) (2.8) Non-deductible expenses 1.5 0.6 0.3 Tax law changes (3.8) (2.4) (2.0) Tax audits and settlements (1.1) 0.9 (0.4) All other, net (0.5) (0.8) 0.4 Effective tax rate 22.0 % 12.1 % 11.1 % The effective income tax rate fluctuates year to year due to the allocation of the company's taxable earnings among jurisdictions, as well as certain discrete factors and events in each year, including changes in tax law and business development activities. The effective income tax rates in 2023, 2022 and 2021 differed from the statutory tax rate principally due to the impact of foreign operations with lower income tax rates in locations outside the United States, the U.S. global minimum tax, changes in fair value of contingent consideration, tax credits and incentives in the United States, Puerto Rico and other foreign tax jurisdictions, and business development activities. The effective income tax rate in 2023 was higher than prior periods due to increased changes in fair value of contingent consideration, intangible asset impairments and the impacts of the transition from the Puerto Rico excise tax to an income tax. In 2022, Puerto Rico enacted Act 52-2022 (the Puerto Rico Act) allowing for a transition from a Puerto Rico excise tax levied on gross inventory purchases to an income-based tax beginning in 2023. The company completed the transition requirements of the Puerto Rico Act in 2022, resulting in the remeasurement of certain deferred tax assets and liabilities based on income tax rates at which they are expected to reverse in the future. The net tax benefit recognized in 2022 from the remeasurement of deferred taxes related to the Puerto Rico Act was $323 million. The Tax Cuts and Jobs Act (the Act) was signed into law in December 2017, resulting in significant changes to the U.S. corporate tax system, including a one-time transition tax on a mandatory deemed repatriation of earnings of certain foreign subsidiaries that were previously untaxed. The Act also created a U.S. global minimum tax on certain foreign sourced earnings. The company’s accounting policy for the minimum tax on foreign sourced earnings is to report the tax effects on the basis that the minimum tax will be recognized in tax expense in the year it is incurred as a period expense. Deferred Tax Assets and Liabilities as of December 31 (in millions) 2023 2022 Deferred tax assets Compensation and employee benefits $ 519 $ 497 Accruals and reserves 1,113 1,023 Chargebacks and rebates 1,431 991 Advance payments 298 547 Net operating losses and other carryforwards 14,316 10,391 Other 2,259 1,710 Total deferred tax assets 19,936 15,159 Valuation allowances (13,478) (9,627) Total net deferred tax assets 6,458 5,532 Deferred tax liabilities Excess of book basis over tax basis of intangible assets (1,535) (3,590) Excess of book basis over tax basis in investments (374) (340) Other (746) (772) Total deferred tax liabilities (2,655) (4,702) Net deferred tax assets $ 3,803 $ 830 The increase in net deferred tax assets is primarily related to capitalization of R&D expense and increases in accruals and reserves, offset by a decrease in advance payments. The decrease in deferred tax liabilities is primarily related to amortization and impairments of intangible assets. In 2023, Bermuda enacted the Corporate Income Tax Act (“Bermuda Tax Act”), which implements a 15% corporate income tax effective beginning in 2025. The enactment of the Bermuda Tax Act resulted in the remeasurement of certain deferred tax assets and liabilities based on income tax rates at which they are expected to reverse in the future. The remeasurement related primarily to net operating losses and reflected an increase of $3.6 billion to deferred tax assets and an offsetting increase to valuation allowances, resulting in no net impact to deferred tax assets as such losses are not expected to be realized in the foreseeable future. The company had valuation allowances of $13.5 billion as of December 31, 2023 and $9.6 billion as of December 31, 2022. These were principally related to foreign and state net operating losses and other credit carryforwards that are not expected to be realized. As of December 31, 2023, the company had U.S. federal, state and foreign credit carryforwards of $372 million as well as U.S. federal, state and foreign net operating loss carryforwards of $33.6 billion, which will expire at various times through 2043. The company also had foreign loss carryforwards of $31.3 billion that have no expiration. Unremitted foreign earnings subject to the Act’s transition tax are not considered indefinitely reinvested. Post-2017 earnings subject to the U.S. minimum tax on foreign sourced earnings or eligible for the 100 percent foreign dividends received deduction are also not considered indefinitely reinvested earnings. However, the company generally considers instances of outside basis differences in foreign subsidiaries that would incur additional U.S. tax upon reversal (e.g., capital gain distributions) to be permanent in duration. The unrecognized tax liability is not practicable to determine. Unrecognized Tax Benefits years ended December 31 (in millions) 2023 2022 2021 Beginning balance $ 5,670 $ 5,489 $ 5,264 Increase due to current year tax positions 129 88 208 Increase due to prior year tax positions 109 243 137 Decrease due to prior year tax positions (21) (33) (62) Settlements (86) (7) (24) Lapse of statutes of limitations (39) (110) (34) Ending balance $ 5,762 $ 5,670 $ 5,489 If recognized, the net amount of potential tax benefits that would impact the company's effective tax rate is $5.6 billion in 2023 and $5.5 billion in 2022. The "Increase due to current year tax positions" and "Increase due to prior year tax positions" in the table above include amounts related to federal, state and international tax items. AbbVie recognizes interest and penalties related to income tax matters in income tax expense in the consolidated statements of earnings. AbbVie recognized gross income tax expense of $430 million in 2023, $339 million in 2022 and $161 million in 2021, for interest and penalties related to income tax matters. AbbVie had an accrual for the payment of gross interest and penalties of $1.6 billion at December 31, 2023, $1.1 billion at December 31, 2022 and $803 million at December 31, 2021. The company is routinely audited by the tax authorities in significant jurisdictions and a number of audits are currently underway. It is reasonably possible during the next 12 months that uncertain tax positions may be settled, which could result in a decrease in the gross amount of unrecognized tax benefits. Due to the potential for resolution of federal, state and foreign examinations and the expiration of various statutes of limitation, the company's gross unrecognized tax benefits balance may change within the next 12 months up to $476 million. All significant federal, state, local and international matters have been concluded for years through 2009. The company believes adequate provision has been made for all income tax uncertainties. |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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. The most significant matters are described below. 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. For litigation matters discussed below for which a loss is probable or reasonably possible, the company is unable to estimate the possible loss or range of loss, if any, beyond the amounts accrued. 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. Antitrust Litigation 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 violated 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 pending in federal court consist of six individual plaintiff lawsuits and a certified class action by Niaspan direct purchasers. 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 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 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, alleging that 2006 patent litigation settlements and related agreements by Solvay Pharmaceuticals, Inc. (a company Abbott acquired in February 2010 and now known as AbbVie Products LLC) with three generic companies violated federal antitrust law, and also alleging that 2011 patent litigation by Abbott with two generic companies regarding AndroGel was sham litigation and the settlements of those litigations violated federal antitrust law. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys’ fees. In November 2022, the State of Oregon filed a lawsuit in the Multnomah County, Oregon Circuit Court making similar allegations regarding the 2011 patent litigation with one of the generic companies. Lawsuits were filed against Forest Laboratories, LLC and others generally alleging that 2012 and 2013 patent litigation settlements involving Bystolic with six generic manufacturers violated 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, purported class actions filed on behalf of direct and indirect purchasers of Bystolic, were consolidated as In re: Bystolic Antitrust Litigation in the United States District Court for the Southern District of New York. In February 2023, the court granted Forest Laboratories’ motion to dismiss the cases, dismissing them with prejudice. Plaintiffs are appealing the court’s motion to dismiss ruling. Government Proceedings Lawsuits are pending against Allergan and several other manufacturers generally alleging that they improperly promoted and sold prescription opioid products. Approximately 590 lawsuits are pending against Allergan in federal and state courts. Most of the federal court lawsuits are consolidated for pre-trial purposes in the United States District Court for the Northern District of Ohio under the MDL rules as In re: National Prescription Opiate Litigation, MDL No. 2804. Approximately 140 of the lawsuits are pending in various state courts. The plaintiffs in these lawsuits, which include states, counties, cities, other municipal entities, Native American tribes, union trust funds and other third-party payors, private hospitals and personal injury claimants, generally seek compensatory and punitive damages. Of these approximately 590 lawsuits, approximately 175 of them are brought by states, counties, cities, and other municipal entities, approximately 140 of which are in the process of being dismissed pursuant to the previously announced settlement for which AbbVie recorded a charge of $2.1 billion to selling, general and administrative expense in the consolidated statement of earnings in the second quarter of 2022. In March 2023, AbbVie Inc. filed a petition in the United States Tax Court, AbbVie Inc. and Subsidiaries v. Commissioner of Internal Revenue. The petition disputes the Internal Revenue Service determination concerning a $572 million income tax benefit recorded in 2014 related to a payment made to a third party for the termination of a proposed business combination. Shareholder and Securities Litigation In October 2018, a federal securities lawsuit, Holwill v. AbbVie Inc., et al., was filed 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 2018 were misleading because they omitted alleged misconduct in connection with Humira patient and reimbursement support services and other services and items of value that allegedly induced Humira prescriptions. In September 2021, the court granted plaintiffs' motion to certify a class. Lawsuits were filed against Allergan and certain of its former officers alleging they made misrepresentations and omissions regarding Allergan's textured breast implants. The lawsuits, which were filed by Allergan shareholders, have been consolidated in the United States District Court for the Southern District of New York as In re: Allergan plc Securities Litigation. The plaintiffs generally seek compensatory damages and attorneys’ fees. In September 2019, the court partially granted Allergan's motion to dismiss. In September 2021, the court granted plaintiffs' motion to certify a class. In December 2022, the court granted Allergan's motion for summary judgment on the remaining claims, dismissing them with prejudice. Plaintiffs are appealing the court's motion to dismiss and summary judgment rulings. In May and July 2022, two shareholder derivative lawsuits, Treppel Family Trust v. Gonzalez et al., and Katcher v. Gonzalez, et al., were filed in the United States District Court for the Northern District of Illinois, alleging that certain AbbVie directors and officers breached fiduciary and other legal duties in making or allowing alleged misstatements regarding the potential effect that safety information about another company’s product would have on the Food and Drug Administration’s approval and labeling for AbbVie’s Rinvoq. Product Liability and General Litigation In April 2023, a putative class action lawsuit, Camargo v. AbbVie Inc., was filed in the United States District Court for the Northern District of Illinois on behalf of Humira patients who paid for Humira based on its list price or who, after losing insurance coverage, discontinued Humira because they could not pay based on its list price, alleging that Humira’s list price is excessive in violation of multiple states’ unfair and deceptive trade practices statutes. The plaintiff generally seeks monetary damages, injunctive relief, and attorneys’ fees. In 2018, a qui tam lawsuit, U.S. ex rel. Silbersher v. Allergan Inc., et al., was filed in the United States District Court for the Northern District of California against several Allergan entities and others, alleging that their conduct before the U.S. Patent Office resulted in false claims for payment being made to federal and state healthcare payors for Namenda XR and Namzaric. The plaintiff-relator sought damages and attorneys' fees under the federal False Claims Act and state law analogues. The federal government and state governments declined to intervene in the lawsuit. In March 2023, the court granted Allergan’s motion to dismiss, dismissing plaintiff-relator’s federal law claims with prejudice and state law claims without prejudice. The plaintiff-relator is appealing the court’s motion to dismiss ruling. Intellectual Property Litigation AbbVie Inc. is seeking to enforce patent rights relating to venetoclax (a drug sold under the trademark Venclexta). Litigation was filed in the United States District Court for the District of Delaware in July 2020 against Dr. Reddy’s Laboratories, Ltd. and Dr. Reddy’s Laboratories, Inc.; and Alembic Pharmaceuticals Ltd., Alembic Pharmaceuticals, Inc., and Alembic Global Holdings SA. AbbVie alleges defendants’ proposed generic venetoclax products infringe certain patents and seeks declaratory and injunctive relief. Genentech, Inc., which is in a global collaboration with AbbVie concerning the development and marketing of Venclexta, is the co-plaintiff in this suit. AbbVie Inc. is seeking to enforce patent rights relating to upadacitinib (a drug sold under the trademark Rinvoq). Litigation was filed in the United States District Court for the District of Delaware in November 2023 against Hetero USA, Inc., Hetero Labs Limited, Hetero Labs Limited Unit-V, Aurobindo Pharma USA, Inc., Aurobindo Pharma Ltd., Sandoz, Inc. Sandoz Private Limited, Sandoz GMBH, Intas Pharmaceuticals Ltd., Accord Healthcare, Inc., and Sun Pharmaceutical Industries, Ltd. AbbVie alleges defendants’ proposed generic upadacitinib products infringe certain patents and seeks declaratory and injunctive relief. |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | Segment and Geographic Area Information AbbVie operates as a single global business segment dedicated to the research and development, manufacturing, commercialization and sale of innovative medicines and therapies. This operating structure enables the Chief Executive Officer, as chief operating decision maker (CODM), to allocate resources and assess business performance on a global basis in order to achieve established long-term strategic goals. Consistent with this structure, a global research and development and supply chain organization is responsible for the discovery, manufacturing and supply of products. Commercial efforts that coordinate the marketing, sales and distribution of these products are organized by geographic region or therapeutic area. All of these activities are supported by a global corporate administrative staff. The determination of a single business segment is consistent with the consolidated financial information regularly reviewed by the CODM for purposes of assessing performance, allocating resources and planning and forecasting future periods. Substantially all of AbbVie's pharmaceutical product net revenues in the United States are to three wholesalers. Outside the United States, products are sold primarily to health care providers or through distributors, depending on the market served. The following tables detail AbbVie's worldwide net revenues: years ended December 31 (in millions) 2023 2022 2021 Immunology Humira United States $ 12,160 $ 18,619 $ 17,330 International 2,244 2,618 3,364 Total $ 14,404 $ 21,237 $ 20,694 Skyrizi United States $ 6,753 $ 4,484 $ 2,486 International 1,010 681 453 Total $ 7,763 $ 5,165 $ 2,939 Rinvoq United States $ 2,824 $ 1,794 $ 1,271 International 1,145 728 380 Total $ 3,969 $ 2,522 $ 1,651 Oncology Imbruvica United States $ 2,665 $ 3,426 $ 4,321 Collaboration revenues 931 1,142 1,087 Total $ 3,596 $ 4,568 $ 5,408 Venclexta United States $ 1,087 $ 1,009 $ 934 International 1,201 1,000 886 Total $ 2,288 $ 2,009 $ 1,820 Epkinly Collaboration Revenues $ 28 $ — $ — International 3 — — Total $ 31 $ — $ — Aesthetics Botox Cosmetic United States $ 1,670 $ 1,654 $ 1,424 International 1,012 961 808 Total $ 2,682 $ 2,615 $ 2,232 Juvederm Collection United States $ 519 $ 548 $ 658 International 859 880 877 Total $ 1,378 $ 1,428 $ 1,535 Other Aesthetics United States $ 1,060 $ 1,122 $ 1,268 International 174 168 198 Total $ 1,234 $ 1,290 $ 1,466 Neuroscience Botox Therapeutic United States $ 2,476 $ 2,255 $ 2,012 International 515 464 439 Total $ 2,991 $ 2,719 $ 2,451 Vraylar United States $ 2,755 $ 2,037 $ 1,728 International 4 1 — Total $ 2,759 $ 2,038 $ 1,728 Duodopa United States $ 97 $ 95 $ 102 International 371 363 409 Total $ 468 $ 458 $ 511 Ubrelvy United States $ 803 $ 680 $ 552 International 12 — — Total $ 815 $ 680 $ 552 Qulipta United States $ 405 $ 158 $ — International 3 — — Total $ 408 $ 158 $ — years ended December 31 (in millions) 2023 2022 2021 Other Neuroscience United States $ 254 $ 456 $ 667 International 22 19 18 Total $ 276 $ 475 $ 685 Eye Care Ozurdex United States $ 143 $ 139 $ 130 International 329 289 288 Total $ 472 $ 428 $ 418 Lumigan/Ganfort United States $ 173 $ 242 $ 273 International 259 272 306 Total $ 432 $ 514 $ 579 Alphagan/Combigan United States $ 121 $ 202 $ 373 International 151 144 156 Total $ 272 $ 346 $ 529 Restasis United States $ 382 $ 621 $ 1,234 International 54 45 56 Total $ 436 $ 666 $ 1,290 Other Eye Care United States $ 433 $ 399 $ 393 International 370 348 358 Total $ 803 $ 747 $ 751 Other Key Products Mavyret United States $ 659 $ 755 $ 754 International 771 786 956 Total $ 1,430 $ 1,541 $ 1,710 Creon United States $ 1,268 $ 1,278 $ 1,191 Linzess/Constella United States $ 1,073 $ 1,003 $ 1,006 International 35 32 32 Total $ 1,108 $ 1,035 $ 1,038 All other $ 3,035 $ 4,137 $ 5,019 Total net revenues $ 54,318 $ 58,054 $ 56,197 Net revenues to external customers by geographic area, based on product shipment destination, were as follows: years ended December 31 (in millions) 2023 2022 2021 United States $ 41,883 $ 45,713 $ 43,510 Germany 1,266 1,340 1,223 Canada 1,076 1,159 1,397 Japan 1,008 956 1,090 China 950 912 857 France 780 787 936 Spain 501 506 519 Italy 484 444 506 Australia 472 508 533 Brazil 439 430 368 United Kingdom 417 462 497 All other countries 5,042 4,837 4,761 Total net revenues $ 54,318 $ 58,054 $ 56,197 Long-lived assets, primarily net property and equipment, by geographic area were as follows: as of December 31 (in millions) 2023 2022 United States and Puerto Rico $ 3,139 $ 3,243 Europe 1,433 1,369 All other 417 323 Total long-lived assets $ 4,989 $ 4,935 |
Fourth Quarter Financial Result
Fourth Quarter Financial Results (unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Fourth Quarter Financial Results (unaudited) | Fourth Quarter Financial Results (unaudited) quarter ended December 31 (in millions except per share data) 2023 Net revenues $ 14,301 Gross margin 8,597 Net earnings attributable to AbbVie Inc. 822 Basic earnings per share attributable to AbbVie Inc. $ 0.46 Diluted earnings per share attributable to AbbVie Inc. $ 0.46 Cash dividends declared per common share $ 1.55 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for rebates, pension and other post-employment benefits, income taxes, litigation, valuation of goodwill and intangible assets, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures. |
Basis of Consolidation | Basis of Consolidation |
Revenue Recognition | Revenue Recognition AbbVie recognizes revenue when control of promised goods or services is transferred to the company’s customers, in an amount that reflects the consideration AbbVie expects to be entitled to in exchange for those goods or services. Sales, value add and other taxes collected concurrent with revenue-producing activities are excluded from revenue. AbbVie generates revenue primarily from product sales. For the majority of sales, the company transfers control, invoices the customer and recognizes revenue upon shipment to the customer. The company recognizes shipping and handling costs as an expense in cost of products sold when the company transfers control to the customer. Payment terms vary depending on the type and location of the customer, are based on customary commercial terms and are generally less than one year. AbbVie does not adjust revenue for the effects of a significant financing component for contracts where AbbVie expects the period between the transfer of the good or service and collection to be one year or less. Cash discounts, rebates and chargebacks, sales incentives, product returns and certain other adjustments are accounted for as variable consideration. Provisions for variable consideration are based on current pricing, executed contracts, government pricing legislation and historical data and are provided for in the period the related revenues are recorded. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer. For each type of rebate, factors used in the calculation of the accrual include the identification of the products subject to the rebate, the applicable price terms and the estimated lag time between sale and payment of the rebate, which can be significant. In addition to revenue from contracts with customers, the company also recognizes certain collaboration revenues. See Note 6 for additional information related to the collaborations with Janssen Biotech, Inc. and Genentech, Inc. Additionally, see Note 16 for disaggregation of revenue by product and geography. |
Research and Development Expenses | Research and Development Expenses |
Acquired In-Process Research and Development | Acquired IPR&D and Milestones Expenses |
Business Combinations | Business Combinations AbbVie utilizes the acquisition method of accounting for business combinations. This method requires, among other things, that results of operations of acquired companies are included in AbbVie's results of operations beginning on the acquisition date and that assets acquired and liabilities assumed are recognized at fair value as of the acquisition date. Any excess of the fair value of consideration transferred over the fair value of the net assets acquired is recognized as goodwill. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liabilities are recognized in other expense, net in the consolidated statements of earnings. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred. |
Collaborations and Other Arrangements | Collaborations and Other Arrangements The company enters into collaborative agreements with third parties to develop and commercialize drug candidates. Collaborative activities may include joint research and development and commercialization of new products. AbbVie generally receives certain licensing rights under these arrangements. These collaborations often require upfront payments and may include additional milestone, research and development cost sharing, royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development and commercialization. Upfront payments associated with collaborative arrangements and subsequent payments made to the partner for the achievement of development milestones prior to regulatory approval are expensed to acquired IPR&D and milestones expense in the consolidated statements of earnings. Regulatory and commercial milestone payments made to the partner subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the estimated useful life of the related asset. Royalties are expensed to cost of products sold in the consolidated statements of earnings when incurred. |
Advertising | Advertising |
Pension and Other Post-Employment Benefits | Pension and Other Post-Employment Benefits AbbVie records annual expenses relating to its defined benefit pension and other post-employment benefit plans based on calculations which utilize various actuarial assumptions including discount rates, rates of return on assets, compensation increases, turnover rates and health care cost trend rates. AbbVie reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive income (loss) (AOCI), net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are generally amortized to net periodic benefit cost over a five-year period. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pre-tax earnings based on current tax laws. Deferred taxes are provided using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. |
Cash and Equivalents | Cash and Equivalents Cash and equivalents include money market funds and time deposits with original maturities of three months or less. |
Investments | Investments Investments consist primarily of equity securities, held-to-maturity debt securities, marketable debt securities and time deposits. Investments in equity securities that have readily determinable fair values are recorded at fair value. Investments in equity securities that do not have readily determinable fair values are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. Held-to-maturity debt securities are recorded at cost. Gains or losses on investments are included in other expense, net in the consolidated statements of earnings. Investments in marketable debt securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in AOCI on the consolidated balance sheets until realized, at which time the gains or losses are recognized in earnings. AbbVie periodically assesses its marketable debt securities for impairment and credit losses. When a decline in the fair value of marketable debt security is due to credit related factors, an allowance for credit losses is recorded with a corresponding charge to other expense, net in the consolidated statements of earnings. When AbbVie determines that a non-credit related impairment has occurred, the amortized cost basis of the investment, net of allowance for credit losses, is written down with a charge to other expense, net in the consolidated statements of earnings and an available-for-sale investment's unrealized loss is reclassified from AOCI to other expense, net in the consolidated statements of earnings. Realized gains and losses on sales of investments are computed using the first-in, first-out method adjusted for any impairments and credit losses that were recorded in net earnings. |
Accounts Receivable | Accounts Receivable 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. |
Inventories | Inventories |
Property and Equipment | Depreciation for property and equipment is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life for buildings ranges from 10 to 50 years. Buildings include leasehold improvements which are amortized over the lesser of the remainder of the lease term or the useful life of the leasehold improvement. The estimated useful life for equipment ranges from 2 to 25 years. Equipment includes certain computer software and software development costs incurred in connection with developing or obtaining software for internal use and is amortized over 3 to 10 years. |
Leases | Leases Short-term leases with a term of 12 months or less are not recorded on the balance sheet. For leases commencing or modified in 2019 or later, AbbVie does not separate lease components from non-lease components. The company records lease liabilities based on the present value of lease payments over the lease term. AbbVie generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the company's control. AbbVie includes optional renewal periods in the lease term only when it is reasonably certain that AbbVie will exercise its option. Variable lease payments include payments to lessors for taxes, maintenance, insurance and other operating costs as well as payments that are adjusted based on an index or rate. The company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. |
Short-Term Leases | Short-term leases with a term of 12 months or less are not recorded on the balance sheet. |
Litigation and Contingencies | Litigation and Contingencies Loss contingency provisions are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. When a best estimate cannot be made, the minimum loss contingency amount in a probable range is recorded. Legal fees are expensed as incurred. AbbVie accrues for product liability claims on an undiscounted basis. The liabilities are evaluated quarterly and adjusted if necessary as additional information becomes available. Receivables for insurance recoveries for product liability claims, if any, are recorded as assets on an undiscounted basis when it is probable that a recovery will be realized. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow model. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital and terminal values of market participants. Definite-lived intangibles are amortized over their estimated useful lives using the estimated pattern of economic benefit. AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. AbbVie first compares the projected undiscounted cash flows to be generated by the asset to its carrying value. If the undiscounted cash flows of an intangible asset are less than the carrying value, the intangible asset is written down to its fair value. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest level for which cash flows are largely independent of the cash flows of other assets and liabilities. Goodwill and indefinite-lived assets are not amortized but are subject to an impairment review annually and more frequently when indicators of impairment exist. An impairment of goodwill could occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. An impairment of indefinite-lived intangible assets would occur if the fair value of the intangible asset is less than the carrying value. The company tests its goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed. AbbVie tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value is less than its carrying amount, a quantitative impairment test is performed. For its quantitative impairment tests, the company uses an estimated future cash flow approach that requires significant judgment with respect to future volume, revenue and expense growth rates, changes in working capital use, the selection of an appropriate discount rate, asset groupings and other assumptions and estimates. The estimates and assumptions used are consistent with the company's business plans and a market participant's views. The use of alternative estimates and assumptions could increase or decrease projected cash flows and the estimated fair value of the related intangible assets. Future changes to these estimates and assumptions could have a material impact on the company's results of operations. Actual results may differ from the company's estimates. |
Foreign Currency Translation | Foreign Currency Translation |
Derivatives | Derivatives All derivative instruments are recognized as either assets or liabilities at fair value on the consolidated balance sheets and are classified as current or long-term based on the scheduled maturity of the instrument. For derivatives formally designated as hedges, the company assesses at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in the fair value or cash flows of the hedged item. The changes in fair value of a derivative designated as a fair value hedge and of the hedged item attributable to the hedged risk are recognized in earnings immediately. The effective portions of changes in the fair value of a derivative designated as a cash flow hedge are reported in AOCI and are subsequently recognized in earnings consistent with the underlying hedged item. If it is determined that a derivative is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If a hedged forecasted transaction becomes probable of not occurring, any gains or losses are reclassified from AOCI to earnings. Derivatives that are not designated as hedges are adjusted to fair value through current earnings. The company also uses derivative instruments or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. Realized and unrealized gains and losses from these hedges are included in AOCI. Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing section of the consolidated statements of cash flows. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted ASU No. 2023-09 In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740) . The standard requires disaggregation of the effective rate reconciliation into standard categories, enhances disclosure of income taxes paid, and modifies other income tax-related disclosures. The standard will be effective for AbbVie starting in annual periods in 2025, with early adoption permitted. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. ASU No. 2023-07 In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting - Improving Reportable Segment Disclosures (Topic 280) . The standard requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The standard is effective for AbbVie starting in annual periods in 2024 and interim periods in 2025, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of inventories | Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs. Inventories consisted of the following: as of December 31 (in millions) 2023 2022 Finished goods $ 1,356 $ 1,162 Work-in-process 1,643 1,417 Raw materials 1,100 1,000 Inventories $ 4,099 $ 3,579 |
Schedule of property and equipment | Property and Equipment as of December 31 (in millions) 2023 2022 Land $ 286 $ 286 Buildings 2,827 2,737 Equipment 7,449 7,107 Construction in progress 1,073 856 Property and equipment, gross 11,635 10,986 Less accumulated depreciation (6,646) (6,051) Property and equipment, net $ 4,989 $ 4,935 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information | |
Schedule of interest expense, net | Interest Expense, Net years ended December 31 (in millions) 2023 2022 2021 Interest expense $ 2,224 $ 2,230 $ 2,423 Interest income (540) (186) (39) Interest expense, net $ 1,684 $ 2,044 $ 2,384 |
Schedule of accounts payable and accrued liabilities | Accounts Payable and Accrued Liabilities as of December 31 (in millions) 2023 2022 Sales rebates $ 13,627 $ 10,717 Dividends payable 2,783 2,680 Accounts payable 3,688 2,934 Current portion of contingent consideration liabilities 1,952 1,469 Salaries, wages and commissions 1,802 1,371 Royalty and license arrangements 360 412 Other 6,438 5,819 Accounts payable and accrued liabilities $ 30,650 $ 25,402 |
Schedule of other long-term liabilities | Other Long-Term Liabilities as of December 31 (in millions) 2023 2022 Contingent consideration liabilities $ 17,938 $ 14,915 Liabilities for unrecognized tax benefits 6,681 6,502 Income taxes payable 2,182 2,985 Pension and other post-employment benefits 1,538 1,638 Other 3,988 4,615 Other long-term liabilities $ 32,327 $ 30,655 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: Years ended December 31, (in millions, except per share data) 2023 2022 2021 Basic EPS Net earnings attributable to AbbVie Inc. $ 4,863 $ 11,836 $ 11,542 Earnings allocated to participating securities 43 54 74 Earnings available to common shareholders $ 4,820 $ 11,782 $ 11,468 Weighted average basic shares of common stock outstanding 1,768 1,771 1,770 Basic earnings per share attributable to AbbVie Inc. $ 2.73 $ 6.65 $ 6.48 Diluted EPS Net earnings attributable to AbbVie Inc. $ 4,863 $ 11,836 $ 11,542 Earnings allocated to participating securities 43 54 74 Earnings available to common shareholders $ 4,820 $ 11,782 $ 11,468 Weighted average shares of common stock outstanding 1,768 1,771 1,770 Effect of dilutive securities 5 7 7 Weighted average diluted shares of common stock outstanding 1,773 1,778 1,777 Diluted earnings per share attributable to AbbVie Inc. $ 2.72 $ 6.63 $ 6.45 |
Collaborations (Tables)
Collaborations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Janssen Biotech, Inc | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |
Schedule of profit and cost sharing relationship | The following table shows the profit and cost sharing relationship between Janssen and AbbVie: years ended December 31 (in millions) 2023 2022 2021 United States - Janssen's share of profits (included in cost of products sold) $ 1,245 $ 1,607 $ 2,018 International - AbbVie's share of profits (included in net revenues) 931 1,142 1,087 Global - AbbVie's share of other costs (included in respective line items) 228 268 304 |
Genentech, Inc. | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |
Schedule of profit and cost sharing relationship | The following table shows the profit and cost sharing relationship between Genentech and AbbVie: years ended December 31 (in millions) 2023 2022 2021 Genentech's share of profits, including royalties (included in cost of products sold) $ 869 $ 778 $ 703 AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) 41 37 40 AbbVie's share of development costs (included in R&D) 109 121 140 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2021 $ 32,379 Additions (a) 92 Foreign currency translation adjustments and other (315) Balance as of December 31, 2022 32,156 Foreign currency translation adjustments and other 137 Balance as of December 31, 2023 $ 32,293 (a) |
Schedule of definite-lived intangible assets | The following table summarizes intangible assets: 2023 2022 as of December 31 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 75,142 $ (22,455) $ 52,687 $ 87,698 $ (25,003) $ 62,695 License agreements 8,191 (5,571) 2,620 8,474 (4,642) 3,832 Total definite-lived intangible assets 83,333 (28,026) 55,307 96,172 (29,645) 66,527 Indefinite-lived intangible assets 303 — 303 912 — 912 Total intangible assets, net $ 83,636 $ (28,026) $ 55,610 $ 97,084 $ (29,645) $ 67,439 |
Schedule of indefinite-lived intangible assets | The following table summarizes intangible assets: 2023 2022 as of December 31 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 75,142 $ (22,455) $ 52,687 $ 87,698 $ (25,003) $ 62,695 License agreements 8,191 (5,571) 2,620 8,474 (4,642) 3,832 Total definite-lived intangible assets 83,333 (28,026) 55,307 96,172 (29,645) 66,527 Indefinite-lived intangible assets 303 — 303 912 — 912 Total intangible assets, net $ 83,636 $ (28,026) $ 55,610 $ 97,084 $ (29,645) $ 67,439 |
Schedule of anticipated annual amortization expense | The anticipated annual amortization expense for definite-lived intangible assets recorded as of December 31, 2023 is as follows: (in billions) 2024 2025 2026 2027 2028 Anticipated annual amortization expense $ 7.4 $ 7.0 $ 6.3 $ 5.6 $ 5.7 |
Integration and Restructuring_2
Integration and Restructuring Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Allergan integration plan | |
Restructuring charges | |
Summary of charges associated with integration plan | The following table summarizes the charges associated with the Allergan acquisition integration plan: year ended December 31 (in millions) 2023 2022 2021 Cost of products sold $ 89 $ 117 $ 132 Research and development 7 23 102 Selling, general and administrative 192 399 353 Total charges $ 288 $ 539 $ 587 |
Summary of cash activity in the restructuring reserve | The following table summarizes the cash activity in the recorded liability associated with the integration plan: year ended December 31 (in millions) Accrued balance as of December 31, 2020 $ 387 Charges 526 Payments and other adjustments (658) Accrued balance as of December 31, 2021 255 Charges 377 Payments and other adjustments (525) Accrued balance as of December 31, 2022 107 Charges 274 Payments and other adjustments (338) Accrued balance as of December 31, 2023 $ 43 |
Other restructuring | |
Restructuring charges | |
Summary of cash activity in the restructuring reserve | The following table summarizes the cash activity in the restructuring reserve for 2023, 2022 and 2021: (in millions) Accrued balance as of December 31, 2020 $ 90 Charges 54 Payments and other adjustments (111) Accrued balance as of December 31, 2021 33 Charges 193 Payments and other adjustments (50) Accrued balance as of December 31, 2022 176 Charges 107 Payments and other adjustments (87) Accrued balance as of December 31, 2023 $ 196 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of amounts and location of operating and finance leases on the consolidated balance sheets | The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheets: as of December 31 (in millions) Balance sheet caption 2023 2022 Assets Operating Other assets $ 744 $ 737 Finance Property and equipment, net 35 25 Total lease assets $ 779 $ 762 Liabilities Operating Current Accounts payable and accrued liabilities $ 166 $ 166 Noncurrent Other long-term liabilities 735 754 Finance Current Current portion of long-term debt and finance lease obligations 15 17 Noncurrent Long-term debt and finance lease obligations 27 17 Total lease liabilities $ 943 $ 954 |
Summary of lease costs recognized in the condensed consolidated statements of earnings | The following table summarizes the lease costs recognized in the consolidated statements of earnings: years ended December 31 (in millions) 2023 2022 2021 Operating lease cost $ 189 $ 201 $ 226 Short-term lease cost 28 67 56 Variable lease cost 88 71 71 Total lease cost $ 305 $ 339 $ 353 In December 2022, the company entered into an agreement to sublease a portion of its Madison, New Jersey office space through the end of the original lease maturity in 2030. As a result of this agreement, the company recognized an impairment loss on its right-of-use asset of $69 million and wrote-off the related leasehold improvements of $37 million. These losses were recorded to SG&A expense |
Schedule of weighted-average remaining lease term and weighted-average discount rate for operating and finance leases | The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: years ended December 31 2023 2022 2021 Weighted-average remaining lease term (years) Operating 7 8 7 Finance 3 2 3 Weighted-average discount rate Operating 3.0 % 2.6 % 2.4 % Finance 3.6 % 1.5 % 1.1 % |
Schedule of supplementary cash flow information regarding the company's leases | The following table presents supplementary cash flow information regarding the company's leases: years ended December 31 (in millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 214 $ 212 $ 236 Right-of-use assets obtained in exchange for new operating lease liabilities 173 235 66 |
Summary of future maturities of AbbVie's operating lease liabilities | The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2023: (in millions) Operating Finance Total (a) 2024 $ 194 $ 15 $ 209 2025 169 14 183 2026 145 12 157 2027 115 2 117 2028 93 — 93 Thereafter 292 — 292 Total lease payments 1,008 43 1,051 Less: Interest 107 1 108 Present value of lease liabilities $ 901 $ 42 $ 943 (a) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Summary of future maturities of AbbVie's finance lease liabilities | The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2023: (in millions) Operating Finance Total (a) 2024 $ 194 $ 15 $ 209 2025 169 14 183 2026 145 12 157 2027 115 2 117 2028 93 — 93 Thereafter 292 — 292 Total lease payments 1,008 43 1,051 Less: Interest 107 1 108 Present value of lease liabilities $ 901 $ 42 $ 943 (a) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Debt, Credit Facilities and C_2
Debt, Credit Facilities and Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt, Credit Facilities and Commitments and Contingencies | |
Summary of long-term debt | The following table summarizes long-term debt: as of December 31 (dollars in millions) 2023 Effective interest rate (a) 2023 2022 Effective interest rate (a) 2022 1.50-3.75% aggregate notes due 2023 0.49-3.84% $ — 0.49-3.84% $ 3,132 Floating rate term loans due 2023 5.07 % — 2.45 % 1,000 2.60% senior notes due 2024 2.69 % 3,750 2.69 % 3,750 1.375% senior euro notes due 2024 (€1,450 principal) 1.46 % 1,610 1.46 % 1,543 3.85% senior notes due 2024 2.07 % 1,032 2.07 % 1,032 1.25% senior euro notes due 2024 (€700 principal) 0.65 % 777 0.65 % 745 3.60% senior notes due 2025 3.66 % 3,750 3.66 % 3,750 3.80% senior notes due 2025 2.09 % 3,021 2.09 % 3,021 Floating rate term loans due 2025 5.95 % 2,000 2.82 % 2,000 2.95% senior notes due 2026 3.02 % 4,000 3.02 % 4,000 3.20% senior notes due 2026 3.28 % 2,000 3.28 % 2,000 0.75% senior euro notes due 2027 (€750 principal) 0.86 % 833 0.86 % 798 4.25% senior notes due 2028 4.38 % 1,750 4.38 % 1,750 2.125% senior euro notes due 2028 (€750 principal) 2.18 % 833 2.18 % 798 2.625% senior euro notes due 2028 (€500 principal) 1.20 % 555 1.20 % 532 3.20% senior notes due 2029 3.25 % 5,500 3.25 % 5,500 2.125% senior euro notes due 2029 (€550 principal) 1.19 % 611 1.19 % 585 1.25% senior euro notes due 2031 (€650 principal) 1.30 % 722 1.30 % 691 4.55% senior notes due 2035 3.52 % 1,789 3.52 % 1,789 4.50% senior notes due 2035 4.58 % 2,500 4.58 % 2,500 4.30% senior notes due 2036 4.37 % 1,000 4.37 % 1,000 4.05% senior notes due 2039 4.11 % 4,000 4.11 % 4,000 4.40% senior notes due 2042 4.46 % 2,600 4.46 % 2,600 4.625% senior notes due 2042 4.00 % 457 4.00 % 457 4.85% senior notes due 2044 4.11 % 1,074 4.11 % 1,074 4.70% senior notes due 2045 4.73 % 2,700 4.73 % 2,700 4.75% senior notes due 2045 4.20 % 881 4.20 % 881 4.45% senior notes due 2046 4.50 % 2,000 4.50 % 2,000 4.875% senior notes due 2048 4.94 % 1,750 4.94 % 1,750 4.25% senior notes due 2049 4.29 % 5,750 4.29 % 5,750 Fair value hedges (266) (346) Unamortized bond discounts (106) (116) Unamortized deferred financing costs (198) (222) Unamortized bond premiums (b) 668 793 Other 42 33 Total long-term debt and finance lease obligations 59,385 63,270 Current portion 7,191 4,135 Noncurrent portion $ 52,194 $ 59,135 (a) Excludes the effect of any related interest rate swaps. (b) Represents unamortized purchase price adjustments of Allergan debt. |
Summary of maturities of long-term debt | as of and for the years ending December 31 (in millions) 2024 $ 7,170 2025 8,771 2026 6,000 2027 833 2028 3,138 Thereafter 33,333 Total obligations and commitments 59,245 Fair value hedges, unamortized bond premiums/discounts, deferred financing costs and finance lease obligations 140 Total long-term debt and finance lease obligations $ 59,385 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measures (Tables) | 12 Months Ended | |
Dec. 31, 2023 | ||
Fair Value Disclosures [Abstract] | ||
Summary of amounts and location of derivatives on the consolidated balance sheets | The following table summarizes the amounts and location of AbbVie's derivative instruments on the consolidated balance sheets: Fair value - Derivatives in asset position Fair value - as of December 31 (in millions) Balance sheet caption 2023 2022 Balance sheet caption 2023 2022 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 12 $ 49 Accounts payable and accrued liabilities $ 32 $ 8 Designated as cash flow hedges Other assets — 1 Other long-term liabilities — — Designated as net investment hedges Prepaid expenses and other 13 6 Accounts payable and accrued liabilities 66 36 Designated as net investment hedges Other assets — 74 Other long-term liabilities 69 47 Not designated as hedges Prepaid expenses and other 41 33 Accounts payable and accrued liabilities 36 41 Interest rate swap contracts Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities — 17 Designated as fair value hedges Other assets — — Other long-term liabilities 293 375 Total derivatives $ 66 $ 163 $ 496 $ 524 | |
Schedule of pre-tax amounts of derivatives 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): years ended in December 31 (in millions) 2023 2022 2021 Foreign currency forward exchange contracts Designated as cash flow hedges $ (2) $ 103 $ 82 Designated as net investment hedges (144) 395 341 Cross-currency swap contracts designated as cash flow hedges (6) — — Interest rate swap contracts designated as cash flow hedges — 6 2 | |
Summary of pre-tax amounts and location of derivatives recognized in the consolidated statement of earnings | The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI. years ended December 31 (in millions) Statement of earnings caption 2023 2022 2021 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 77 $ 82 $ (87) Designated as net investment hedges Interest expense, net 112 94 26 Not designated as hedges Net foreign exchange loss 33 (156) (100) Treasury rate lock agreements designated as cash flow hedges Interest expense, net 24 23 24 Cross-currency swap contracts designated as cash flow hedges Net foreign exchange loss (6) — — Interest rate swap contracts Designated as cash flow hedges Interest expense, net — (1) (24) Designated as fair value hedges Interest expense, net 98 (402) (127) Debt designated as hedged item in fair value hedges Interest expense, net (98) 402 127 | |
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 consolidated balance sheet as of December 31, 2023: Basis of fair value measurement (in millions) Total Quoted prices in active markets for Significant other observable Significant unobservable inputs Assets Cash and equivalents $ 12,814 $ 6,223 $ 6,591 $ — Money market funds and time deposits 10 — 10 — Debt securities 26 — 26 — Equity securities 111 86 25 — Foreign currency contracts 66 — 66 — Total assets $ 13,027 $ 6,309 $ 6,718 $ — Liabilities Interest rate swap contracts $ 293 $ — $ 293 $ — Foreign currency contracts 203 — 203 — Contingent consideration 19,890 — — 19,890 Total liabilities $ 20,386 $ — $ 496 $ 19,890 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2022: Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant unobservable inputs Assets Cash and equivalents $ 9,201 $ 4,201 $ 5,000 $ — Money market funds and time deposits 21 — 21 — Debt securities 28 — 28 — Equity securities 91 59 32 — Foreign currency contracts 163 — 163 — Total assets $ 9,504 $ 4,260 $ 5,244 $ — Liabilities Interest rate swap contracts $ 392 $ — $ 392 $ — Foreign currency contracts 132 — 132 — Contingent consideration 16,384 — — 16,384 Total liabilities $ 16,908 $ — $ 524 $ 16,384 | |
Summary of significant level 3 unobservable inputs | The fair value of the company's contingent consideration liabilities was calculated using the following significant unobservable inputs: 2023 2022 years ended December 31 (in millions) Range Weighted Average (a) Range Weighted Average (a) Discount rate 4.3% - 5.9% 4.5% 4.7% - 5.1% 4.8 % Probability of payment for unachieved milestones (b) N/A - N/A N/A 100% - 100% 100 % Probability of payment for royalties by indication (C) 89% - 100% 99% 56% - 100% 99 % Projected year of payments 2024 - 2034 2027 2023 - 2034 2028 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) All significant milestones were achieved and paid as of December 31, 2023. (c) Excluding approved indications, the estimated probability of payment was 89% at December 31, 2023 and was 56% at December 31, 2022. | [1],[2] |
Summary 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: years ended December 31 (in millions) 2023 2022 2021 Beginning balance $ 16,384 $ 14,887 $ 12,997 Additions (a) — 32 — Change in fair value recognized in net earnings 5,128 2,761 2,679 Payments (1,622) (1,296) (789) Ending balance $ 19,890 $ 16,384 $ 14,887 (a) Additions during the year ended December 31, 2022, represent contingent consideration liabilities assumed in the DJS acquisition. | |
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 December 31, 2023 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair values Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 7,191 $ 7,069 $ 6,862 $ 207 $ — Long-term debt and finance lease obligations, excluding fair value hedges 52,460 49,541 48,983 558 — Total liabilities $ 59,651 $ 56,610 $ 55,845 $ 765 $ — The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2022 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair values Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Liabilities Short-term borrowings $ 1 $ 1 $ — $ 1 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 4,152 4,121 3,930 191 — Long-term debt and finance lease obligations, excluding fair value hedges 59,463 54,073 53,365 708 — Total liabilities $ 63,616 $ 58,195 $ 57,295 $ 900 $ — | |
[1] Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) All significant milestones were achieved and paid as of December 31, 2023. Excluding approved indications, the estimated probability of payment was 89% at December 31, 2023 and was 56% at December 31, 2022. |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Schedule of benefit plan information | The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans: Defined benefit plans Other post-employment plans as of and for the years ended December 31 (in millions) 2023 2022 2023 2022 Projected benefit obligations Beginning of period $ 8,588 $ 12,006 $ 667 $ 850 Service cost 270 454 37 51 Interest cost 432 297 37 23 Employee contributions — 1 — — Amendments — — — (2) Actuarial (gain) loss 491 (3,668) 89 (229) Benefits paid (316) (294) (35) (25) Other, primarily foreign currency translation adjustments 79 (208) 1 (1) End of period 9,544 8,588 796 667 Fair value of plan assets Beginning of period 8,472 10,655 — — Actual return on plan assets 1,230 (2,031) — — Company contributions 366 357 35 25 Employee contributions — 1 — — Benefits paid (316) (294) (35) (25) Other, primarily foreign currency translation adjustments 87 (216) — — End of period 9,839 8,472 — — Funded status, end of period $ 295 $ (116) $ (796) $ (667) Amounts recognized on the consolidated balance sheets Other assets $ 1,086 $ 896 $ — $ — Accounts payable and accrued liabilities (17) (14) (32) (27) Other long-term liabilities (774) (998) (764) (640) Net obligation $ 295 $ (116) $ (796) $ (667) Actuarial loss, net $ 2,290 $ 2,365 $ 282 $ 205 Prior service cost (credit) 1 3 (297) (333) Accumulated other comprehensive loss (income) $ 2,291 $ 2,368 $ (15) $ (128) |
Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets | Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets as of December 31 (in millions) 2023 2022 Accumulated benefit obligation $ 1,410 $ 1,211 Fair value of plan assets 890 746 |
Information For Pension Plans With A Projected Benefit Obligation In Excess Of Plan Assets | Information For Pension Plans With A Projected Benefit Obligation In Excess Of Plan Assets as of December 31 (in millions) 2023 2022 Projected benefit obligation $ 6,343 $ 5,592 Fair value of plan assets 5,552 4,580 |
Summary of pretax gains and losses included in other comprehensive income (loss) | The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss): years ended December 31 (in millions) 2023 2022 2021 Defined benefit plans Actuarial gain $ (16) $ (925) $ (345) Amortization of prior service cost (1) (2) (2) Amortization of actuarial loss (16) (231) (288) Foreign exchange loss (gain) and other (44) 17 (27) Total gain $ (77) $ (1,141) $ (662) Other post-employment plans Actuarial loss (gain) $ 89 $ (229) $ 10 Prior service credit — (2) — Amortization of prior service credit 36 38 39 Amortization of actuarial loss (12) (26) (32) Total loss (gain) $ 113 $ (219) $ 17 |
Summary of net periodic benefit cost relating to the company's defined benefit and other post-employment plans | Net Periodic Benefit Cost years ended December 31 (in millions) 2023 2022 2021 Defined benefit plans Service cost $ 270 $ 454 $ 440 Interest cost 432 297 237 Expected return on plan assets (723) (712) (663) Amortization of prior service cost 1 2 2 Amortization of actuarial loss 16 231 288 Net periodic benefit cost (credit) $ (4) $ 272 $ 304 Other post-employment plans Service cost $ 37 $ 51 $ 48 Interest cost 37 23 19 Amortization of prior service credit (36) (38) (39) Amortization of actuarial loss 12 26 32 Net periodic benefit cost $ 50 $ 62 $ 60 |
Schedule of weighted-average assumptions used in determining benefit obligations at the measurement date | Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date as of December 31 2023 2022 Defined benefit plans Discount rate 4.8 % 5.0 % Rate of compensation increases 4.8 % 5.5 % Cash balance interest crediting rate 4.4 % 2.7 % Other post-employment plans Discount rate 5.1 % 5.3 % |
Schedule of weighted-average assumptions used in determining net periodic benefit cost | Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost years ended December 31 2023 2022 2021 Defined benefit plans Discount rate for determining service cost 5.0 % 3.0 % 2.6 % Discount rate for determining interest cost 4.9 % 2.6 % 2.2 % Expected long-term rate of return on plan assets 7.3 % 7.1 % 7.1 % Expected rate of change in compensation 4.8 % 5.2 % 4.6 % Cash balance interest crediting rate 2.7 % 2.7 % 2.8 % Other post-employment plans Discount rate for determining service cost 5.3 % 3.3 % 3.0 % Discount rate for determining interest cost 5.1 % 2.7 % 2.2 % |
Schedule of defined benefit pension plan assets | Defined Benefit Pension Plan Assets Basis of fair value measurement as of December 31 (in millions) 2023 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Equities U.S. large cap (a) $ 1,018 $ 1,018 $ — $ — U.S. mid cap (b) 173 173 — — International (c) 488 488 — — Fixed income securities U.S. government securities (d) 246 62 184 — Corporate debt instruments (d) 714 155 559 — Non-U.S. government securities (d) 461 301 160 — Other (d) 126 124 2 — Absolute return funds (e) 155 66 89 — Other (f) 414 413 1 — Total $ 3,795 $ 2,800 $ 995 $ — Total assets measured at NAV 6,044 Fair value of plan assets $ 9,839 Basis of fair value measurement as of December 31 (in millions) 2022 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Equities U.S. large cap (a) $ 949 $ 949 $ — $ — U.S. mid cap (b) 157 157 — — International (c) 327 327 — — Fixed income securities U.S. government securities (d) 237 69 168 — Corporate debt instruments (d) 680 144 536 — Non-U.S. government securities (d) 548 402 146 — Other (d) 84 81 3 — Absolute return funds (e) 91 4 87 — Real assets 9 9 — — Other (f) 278 277 1 — Total $ 3,360 $ 2,419 $ 941 $ — Total assets measured at NAV 5,112 Fair value of plan assets $ 8,472 (a) A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. (b) A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. (c) A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. (d) Securities held by actively managed accounts, index funds and mutual funds. (e) Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. (f) Investments in cash and cash equivalents. |
Schedule of expected benefit payments | Expected Benefit Payments The following table summarizes total benefit payments expected to be paid to plan participants including payments funded from both plan and company assets: years ending December 31 (in millions) Defined Other 2024 $ 339 $ 33 2025 364 37 2026 387 41 2027 413 44 2028 434 47 2029 to 2033 2,580 292 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of share-based compensation expense | Stock-based compensation expense is principally related to awards issued pursuant to the 2013 ISP and the Amended Plan and is summarized as follows: years ended December 31 (in millions) 2023 2022 2021 Cost of products sold $ 46 $ 38 $ 46 Research and development 278 232 226 Selling, general and administrative 423 401 420 Pre-tax compensation expense 747 671 692 Tax benefit 136 122 126 After-tax compensation expense $ 611 $ 549 $ 566 |
Summary of AbbVie stock option activity | The following table summarizes AbbVie stock option activity in 2023: (options in thousands, aggregate intrinsic value in millions) Options Weighted- average Weighted-average remaining Aggregate intrinsic value Outstanding at December 31, 2022 9,320 $ 91.84 4.8 $ 650 Granted 642 149.30 Exercised (2,410) 73.21 Lapsed and forfeited (71) 90.43 Outstanding at December 31, 2023 7,481 $ 102.80 5.0 $ 390 Exercisable at December 31, 2023 5,954 $ 93.85 4.2 $ 364 |
Summary of AbbVie RSA and RSU activity | The following table summarizes AbbVie RSU and performance share activity for 2023: (share units in thousands) Share units Weighted-average grant date fair value Outstanding at December 31, 2022 13,031 $ 116.84 Granted 5,872 141.63 Vested (6,790) 107.96 Forfeited (1,374) 113.65 Outstanding at December 31, 2023 10,739 $ 136.42 |
Summary of quarterly cash dividends | The following table summarizes quarterly cash dividends declared during 2023, 2022 and 2021: 2023 2022 2021 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 10/26/23 02/15/24 $1.55 10/28/22 02/15/23 $1.48 10/29/21 02/15/22 $1.41 09/08/23 11/15/23 $1.48 09/09/22 11/15/22 $1.41 09/10/21 11/15/21 $1.30 06/22/23 08/15/23 $1.48 06/23/22 08/15/22 $1.41 06/17/21 08/16/21 $1.30 02/16/23 05/15/23 $1.48 02/17/22 05/16/22 $1.41 02/18/21 05/14/21 $1.30 |
Summary of changes in each component of accumulated other comprehensive loss, net of tax | The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for 2023, 2022 and 2021: (in millions) (brackets denote losses) Foreign currency translation adjustments Net investment hedging activities Pension Cash flow hedging activities Total Balance as of December 31, 2020 $ 583 $ (790) $ (3,067) $ 157 $ (3,117) Other comprehensive income (loss) before reclassifications (1,153) 720 298 76 (59) Net losses (gains) reclassified from accumulated other comprehensive loss — (21) 223 75 277 Net current-period other comprehensive income (loss) (1,153) 699 521 151 218 Balance as of December 31, 2021 (570) (91) (2,546) 308 (2,899) Other comprehensive income (loss) before reclassifications (943) 629 915 91 692 Net losses (gains) reclassified from accumulated other comprehensive loss — (74) 173 (91) 8 Net current-period other comprehensive income (loss) (943) 555 1,088 — 700 Balance as of December 31, 2022 (1,513) 464 (1,458) 308 (2,199) Other comprehensive income (loss) before reclassifications 407 (311) (23) (10) 63 Net gains reclassified from accumulated other comprehensive loss — (88) (7) (74) (169) Net current-period other comprehensive income (loss) 407 (399) (30) (84) (106) Balance as of December 31, 2023 $ (1,106) $ 65 $ (1,488) $ 224 $ (2,305) |
Schedule of the impact of significant amounts reclassified out of each component of accumulated other comprehensive loss | The table below presents the impact on AbbVie's consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: years ended December 31 (in millions) (brackets denote gains) 2023 2022 2021 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (112) $ (94) $ (26) Tax expense 24 20 5 Total reclassifications, net of tax $ (88) $ (74) $ (21) Pension and post-employment benefits Amortization of actuarial losses (gains) and other (b) $ (7) $ 221 $ 283 Tax expense (benefit) — (48) (60) Total reclassifications, net of tax $ (7) $ 173 $ 223 Cash flow hedging activities Losses (gains) on foreign currency forward exchange contracts (c) $ (77) $ (82) $ 87 Gains on treasury rate lock agreements (a) (24) (23) (24) Losses on interest rate swap contracts (a) — 1 24 Losses on cross-currency swap contracts (d) 6 — — Tax expense (benefit) 21 13 (12) Total reclassifications, net of tax $ (74) $ (91) $ 75 (a) Amounts are included in interest expense, net (see Note 11). (b) Amounts are included in the computation of net periodic benefit cost (see Note 12). (c) Amounts are included in cost of products sold (see Note 11). (d) Amounts are included in net foreign exchange loss (see Note 11). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of earnings before income tax expense | Earnings Before Income Tax Expense years ended December 31 (in millions) 2023 2022 2021 Domestic $ (3,475) $ (4,608) $ (1,644) Foreign 9,725 18,085 14,633 Total earnings before income tax expense $ 6,250 $ 13,477 $ 12,989 |
Schedule of income tax expense | Income Tax Expense years ended December 31 (in millions) 2023 2022 2021 Current Domestic $ 3,272 $ 2,647 $ 1,987 Foreign 994 916 351 Total current taxes $ 4,266 $ 3,563 $ 2,338 Deferred Domestic $ (2,324) $ (1,512) $ (839) Foreign (565) (419) (59) Total deferred taxes $ (2,889) $ (1,931) $ (898) Total income tax expense $ 1,377 $ 1,632 $ 1,440 |
Summary of effective tax rate reconciliation | Effective Tax Rate Reconciliation years ended December 31 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % Effect of foreign operations 8.0 (4.4) (5.4) U.S. tax credits (3.1) (2.8) (2.8) Non-deductible expenses 1.5 0.6 0.3 Tax law changes (3.8) (2.4) (2.0) Tax audits and settlements (1.1) 0.9 (0.4) All other, net (0.5) (0.8) 0.4 Effective tax rate 22.0 % 12.1 % 11.1 % |
Schedule of deferred tax assets and liabilities | Deferred Tax Assets and Liabilities as of December 31 (in millions) 2023 2022 Deferred tax assets Compensation and employee benefits $ 519 $ 497 Accruals and reserves 1,113 1,023 Chargebacks and rebates 1,431 991 Advance payments 298 547 Net operating losses and other carryforwards 14,316 10,391 Other 2,259 1,710 Total deferred tax assets 19,936 15,159 Valuation allowances (13,478) (9,627) Total net deferred tax assets 6,458 5,532 Deferred tax liabilities Excess of book basis over tax basis of intangible assets (1,535) (3,590) Excess of book basis over tax basis in investments (374) (340) Other (746) (772) Total deferred tax liabilities (2,655) (4,702) Net deferred tax assets $ 3,803 $ 830 |
Schedule of unrecognized tax benefits | Unrecognized Tax Benefits years ended December 31 (in millions) 2023 2022 2021 Beginning balance $ 5,670 $ 5,489 $ 5,264 Increase due to current year tax positions 129 88 208 Increase due to prior year tax positions 109 243 137 Decrease due to prior year tax positions (21) (33) (62) Settlements (86) (7) (24) Lapse of statutes of limitations (39) (110) (34) Ending balance $ 5,762 $ 5,670 $ 5,489 |
Segment and Geographic Area I_2
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of net revenues by product | The following tables detail AbbVie's worldwide net revenues: years ended December 31 (in millions) 2023 2022 2021 Immunology Humira United States $ 12,160 $ 18,619 $ 17,330 International 2,244 2,618 3,364 Total $ 14,404 $ 21,237 $ 20,694 Skyrizi United States $ 6,753 $ 4,484 $ 2,486 International 1,010 681 453 Total $ 7,763 $ 5,165 $ 2,939 Rinvoq United States $ 2,824 $ 1,794 $ 1,271 International 1,145 728 380 Total $ 3,969 $ 2,522 $ 1,651 Oncology Imbruvica United States $ 2,665 $ 3,426 $ 4,321 Collaboration revenues 931 1,142 1,087 Total $ 3,596 $ 4,568 $ 5,408 Venclexta United States $ 1,087 $ 1,009 $ 934 International 1,201 1,000 886 Total $ 2,288 $ 2,009 $ 1,820 Epkinly Collaboration Revenues $ 28 $ — $ — International 3 — — Total $ 31 $ — $ — Aesthetics Botox Cosmetic United States $ 1,670 $ 1,654 $ 1,424 International 1,012 961 808 Total $ 2,682 $ 2,615 $ 2,232 Juvederm Collection United States $ 519 $ 548 $ 658 International 859 880 877 Total $ 1,378 $ 1,428 $ 1,535 Other Aesthetics United States $ 1,060 $ 1,122 $ 1,268 International 174 168 198 Total $ 1,234 $ 1,290 $ 1,466 Neuroscience Botox Therapeutic United States $ 2,476 $ 2,255 $ 2,012 International 515 464 439 Total $ 2,991 $ 2,719 $ 2,451 Vraylar United States $ 2,755 $ 2,037 $ 1,728 International 4 1 — Total $ 2,759 $ 2,038 $ 1,728 Duodopa United States $ 97 $ 95 $ 102 International 371 363 409 Total $ 468 $ 458 $ 511 Ubrelvy United States $ 803 $ 680 $ 552 International 12 — — Total $ 815 $ 680 $ 552 Qulipta United States $ 405 $ 158 $ — International 3 — — Total $ 408 $ 158 $ — years ended December 31 (in millions) 2023 2022 2021 Other Neuroscience United States $ 254 $ 456 $ 667 International 22 19 18 Total $ 276 $ 475 $ 685 Eye Care Ozurdex United States $ 143 $ 139 $ 130 International 329 289 288 Total $ 472 $ 428 $ 418 Lumigan/Ganfort United States $ 173 $ 242 $ 273 International 259 272 306 Total $ 432 $ 514 $ 579 Alphagan/Combigan United States $ 121 $ 202 $ 373 International 151 144 156 Total $ 272 $ 346 $ 529 Restasis United States $ 382 $ 621 $ 1,234 International 54 45 56 Total $ 436 $ 666 $ 1,290 Other Eye Care United States $ 433 $ 399 $ 393 International 370 348 358 Total $ 803 $ 747 $ 751 Other Key Products Mavyret United States $ 659 $ 755 $ 754 International 771 786 956 Total $ 1,430 $ 1,541 $ 1,710 Creon United States $ 1,268 $ 1,278 $ 1,191 Linzess/Constella United States $ 1,073 $ 1,003 $ 1,006 International 35 32 32 Total $ 1,108 $ 1,035 $ 1,038 All other $ 3,035 $ 4,137 $ 5,019 Total net revenues $ 54,318 $ 58,054 $ 56,197 |
Schedule of net revenues to external customers by geographic area | Net revenues to external customers by geographic area, based on product shipment destination, were as follows: years ended December 31 (in millions) 2023 2022 2021 United States $ 41,883 $ 45,713 $ 43,510 Germany 1,266 1,340 1,223 Canada 1,076 1,159 1,397 Japan 1,008 956 1,090 China 950 912 857 France 780 787 936 Spain 501 506 519 Italy 484 444 506 Australia 472 508 533 Brazil 439 430 368 United Kingdom 417 462 497 All other countries 5,042 4,837 4,761 Total net revenues $ 54,318 $ 58,054 $ 56,197 |
Schedule of long-lived assets by geographic area | Long-lived assets, primarily net property and equipment, by geographic area were as follows: as of December 31 (in millions) 2023 2022 United States and Puerto Rico $ 3,139 $ 3,243 Europe 1,433 1,369 All other 417 323 Total long-lived assets $ 4,989 $ 4,935 |
Fourth Quarter Financial Resu_2
Fourth Quarter Financial Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of fourth quarter financial results | quarter ended December 31 (in millions except per share data) 2023 Net revenues $ 14,301 Gross margin 8,597 Net earnings attributable to AbbVie Inc. 822 Basic earnings per share attributable to AbbVie Inc. $ 0.46 Diluted earnings per share attributable to AbbVie Inc. $ 0.46 Cash dividends declared per common share $ 1.55 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | Jan. 01, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of outstanding common stock distributed to Abbott shareholders | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional information (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 2.2 | $ 2 | $ 2.1 |
Amortization period of differences between the expected and actual return on plan assets | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Finished goods | $ 1,356 | $ 1,162 |
Work-in-process | 1,643 | 1,417 |
Raw materials | 1,100 | 1,000 |
Inventories | $ 4,099 | $ 3,579 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment | |||
Property and equipment, gross | $ 11,635 | $ 10,986 | |
Less accumulated depreciation | (6,646) | (6,051) | |
Property and equipment, net | 4,989 | 4,935 | |
Depreciation expense | 752 | 778 | $ 803 |
Land | |||
Property and Equipment | |||
Property and equipment, gross | 286 | 286 | |
Buildings | |||
Property and Equipment | |||
Property and equipment, gross | $ 2,827 | 2,737 | |
Buildings | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 10 years | ||
Buildings | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 50 years | ||
Equipment | |||
Property and Equipment | |||
Property and equipment, gross | $ 7,449 | 7,107 | |
Equipment | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 2 years | ||
Amortization period of software costs included in equipment | 3 years | ||
Equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 25 years | ||
Amortization period of software costs included in equipment | 10 years | ||
Construction in progress | |||
Property and Equipment | |||
Property and equipment, gross | $ 1,073 | $ 856 |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Expense, Net | |||
Interest expense | $ 2,224 | $ 2,230 | $ 2,423 |
Interest income | (540) | (186) | (39) |
Interest expense, net | 1,684 | 2,044 | $ 2,384 |
Accounts Payable and Accrued Liabilities | |||
Sales rebates | 13,627 | 10,717 | |
Dividends payable | 2,783 | 2,680 | |
Accounts payable | 3,688 | 2,934 | |
Current portion of contingent consideration liabilities | 1,952 | 1,469 | |
Salaries, wages and commissions | 1,802 | 1,371 | |
Royalty and license arrangements | 360 | 412 | |
Other | 6,438 | 5,819 | |
Accounts payable and accrued liabilities | 30,650 | 25,402 | |
Other Long-Term Liabilities | |||
Contingent consideration liabilities | 17,938 | 14,915 | |
Liabilities for unrecognized tax benefits | 6,681 | 6,502 | |
Income taxes payable | 2,182 | 2,985 | |
Pension and other post-employment benefits | 1,538 | 1,638 | |
Other | 3,988 | 4,615 | |
Other long-term liabilities | $ 32,327 | $ 30,655 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic EPS | ||||
Net earnings attributable to AbbVie Inc. | $ 822 | $ 4,863 | $ 11,836 | $ 11,542 |
Earnings allocated to participating securities | 43 | 54 | 74 | |
Earnings available to common shareholders | $ 4,820 | $ 11,782 | $ 11,468 | |
Weighted-average basic shares outstanding (in shares) | 1,768 | 1,771 | 1,770 | |
Basic earnings per share (in dollars per share) | $ 0.46 | $ 2.73 | $ 6.65 | $ 6.48 |
Diluted EPS | ||||
Net earnings attributable to AbbVie Inc. | $ 822 | $ 4,863 | $ 11,836 | $ 11,542 |
Earnings allocated to participating securities | 43 | 54 | 74 | |
Earnings available to common shareholders | $ 4,820 | $ 11,782 | $ 11,468 | |
Weighted-average basic shares outstanding (in shares) | 1,768 | 1,771 | 1,770 | |
Effect of dilutive securities (in shares) | 5 | 7 | 7 | |
Weighted-average diluted shares outstanding (in shares) | 1,773 | 1,778 | 1,777 | |
Diluted earnings per share (in dollars per share) | $ 0.46 | $ 2.72 | $ 6.63 | $ 6.45 |
Licensing, Acquisitions, and _2
Licensing, Acquisitions, and Other Arrangement- Acquisitions of DJS (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||
Goodwill | $ 32,293 | $ 32,156 | $ 32,379 | |
DJS Antibodies LTD | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||
Total consideration | $ 287 | |||
Upfront cash payment | 255 | |||
Contingent consideration | 32 | |||
Maximum future payments upon achievement of certain milestones | 95 | |||
Intangible assets - Developed product rights | 233 | |||
Intangible assets - In-process research and development | 22 | |||
Deferred tax liabilities | 60 | |||
Goodwill | $ 92 |
Licensing, Acquisitions, and _3
Licensing, Acquisitions, and Other Arrangements - Acquisition of Soliton, Inc. (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition | |||
Goodwill | $ 32,379 | $ 32,293 | $ 32,156 |
Solition, Inc. | |||
Business Acquisition | |||
Total consideration | 535 | ||
Intangible assets - Developed product rights | 407 | ||
Deferred tax liabilities | 63 | ||
Goodwill | $ 177 |
Licensing, Acquisitions, and _4
Licensing, Acquisitions, and Other Arrangements - Other Licensing & Acquisitions Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 12, 2024 | Jan. 01, 2024 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2022 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Other acquisitions and investments | $ (1,223) | $ (539) | $ (1,377) | |||||||
Acquired IPR&D and milestones | 778 | 697 | 1,124 | |||||||
Gain (Loss) on Disposition of Other Assets | 0 | 172 | 68 | |||||||
Other operating expense (income), net | (179) | 56 | 432 | |||||||
Cerevel Therapeutics | Subsequent event | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Cash per share received by shareholders (in dollars per share) | $ 45 | |||||||||
ImmunoGen | Subsequent event | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Cash per share received by shareholders (in dollars per share) | $ 31.26 | |||||||||
Forecast | Cerevel Therapeutics | Subsequent event | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Total consideration | $ 8,700 | |||||||||
Forecast | ImmunoGen | Subsequent event | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Total consideration | $ 10,100 | |||||||||
Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Research and Development Milestone Expenses | 196 | 252 | 162 | |||||||
Syndesi Therapeutics SA | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Acquired IPR&D and milestones | $ 130 | |||||||||
Syndesi Therapeutics SA | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Potential additional milestone payments | $ 870 | |||||||||
Juvise Pharmaceuticals | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Proceeds from Sale of Other Assets | $ 215 | |||||||||
TeneoOne | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Acquired IPR&D and milestones | $ 400 | |||||||||
TeneoOne | Maximum | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Potential additional milestone payments | 250 | |||||||||
REGENXBIO Inc. | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Acquired IPR&D and milestones | $ 370 | |||||||||
REGENXBIO Inc. | Maximum | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Potential additional milestone payments | 1,400 | |||||||||
Other individually insignificant arrangements | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Acquired IPR&D and milestones | 582 | $ 315 | $ 192 | |||||||
Other individually insignificant arrangements | Maximum | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Potential additional milestone payments | $ 10,900 | |||||||||
Calico Life Sciences LLC | Collaborative arrangement | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Additional contribution to collaboration | 500 | |||||||||
Additional contribution to collaboration by partner | 500 | |||||||||
Other operating expense (income), net | $ (500) | |||||||||
Other operating income | Juvise Pharmaceuticals | ||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||||||
Gain (Loss) on Disposition of Other Assets | $ 172 |
Collaborations (Details)
Collaborations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
AbbVie's receivable from Janssen | $ 11,155 | $ 11,254 | |
AbbVie's payable to Janssen | $ 30,650 | 25,402 | |
Collaborative arrangement | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Share of collaboration development costs responsible by the entity (as a percent) | 40% | ||
Janssen Biotech, Inc | Collaborative arrangement | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Milestone payments | $ 200 | ||
Share of collaboration development costs responsible by Janssen (as a percent) | 60% | ||
Global - AbbVie's share of other costs (included in respective line items) | $ 228 | 268 | $ 304 |
AbbVie's receivable from Janssen | 236 | 295 | |
AbbVie's payable to Janssen | 307 | 379 | |
Janssen Biotech, Inc | Collaborative arrangement | United States | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Collaboration counterparty's share of collaborative arrangement expenses (included in cost of products sold) | 1,245 | 1,607 | 2,018 |
Janssen Biotech, Inc | Collaborative arrangement | International | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
International - AbbVie's share of profits (included in net revenues) | 931 | 1,142 | 1,087 |
Genentech, Inc. | Collaborative arrangement | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Collaboration counterparty's share of collaborative arrangement expenses (included in cost of products sold) | 869 | 778 | 703 |
AbbVie's share of development costs (included in R&D) | 109 | 121 | 140 |
Genentech, Inc. | Collaborative arrangement | United States | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) | $ 41 | $ 37 | $ 40 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | $ 32,156,000,000 | $ 32,379,000,000 | |
Additions | [1] | 92,000,000 | |
Foreign currency translation adjustments and other | 137,000,000 | (315,000,000) | |
Balance at the end of the period | 32,293,000,000 | 32,156,000,000 | |
Accumulated goodwill impairment losses | |||
Accumulated goodwill impairment losses | $ 0 | $ 0 | |
[1](see Note 5). |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Definite-lived intangible assets | ||
Gross carrying amount | $ 83,333 | $ 96,172 |
Accumulated amortization | (28,026) | (29,645) |
Net carrying amount | 55,307 | 66,527 |
Indefinite-lived intangible assets | 303 | 912 |
Total intangible assets gross carrying amount | 83,636 | 97,084 |
Total intangible assets, net | 55,610 | 67,439 |
Developed product rights | ||
Definite-lived intangible assets | ||
Gross carrying amount | 75,142 | 87,698 |
Accumulated amortization | (22,455) | (25,003) |
Net carrying amount | 52,687 | 62,695 |
License agreements | ||
Definite-lived intangible assets | ||
Gross carrying amount | 8,191 | 8,474 |
Accumulated amortization | (5,571) | (4,642) |
Net carrying amount | $ 2,620 | $ 3,832 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 29, 2023 | |
Definite-lived intangible assets | ||||||||
Impairment of intangible assets | $ 4,229 | $ 770 | $ 50 | |||||
Amortization of intangible assets | 7,946 | 7,689 | $ 7,718 | |||||
Finite-Lived Intangible Assets, Net | $ 55,307 | 55,307 | 66,527 | |||||
Finite-Lived Intangible Assets, Fair Value Disclosure | $ 4,000 | |||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | |||||||
Anticipated annual amortization expense | ||||||||
2024 | 7,400 | 7,400 | ||||||
2025 | 7,000 | 7,000 | ||||||
2026 | 6,300 | 6,300 | ||||||
2027 | 5,600 | 5,600 | ||||||
2028 | 5,700 | 5,700 | ||||||
Research and development | AGN-151607 | ||||||||
Definite-lived intangible assets | ||||||||
Impairment of intangible assets | $ 630 | |||||||
Imbruvica | ||||||||
Definite-lived intangible assets | ||||||||
Definite-lived intangible assets impairment charges | $ 2,100 | |||||||
Vuity | ||||||||
Definite-lived intangible assets | ||||||||
Definite-lived intangible assets impairment charges | $ 770 | |||||||
Coolsculpting | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Fair Value Disclosure | 1,300 | 1,300 | ||||||
Liletta | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Fair Value Disclosure | 561 | 561 | ||||||
Liletta and Coolsculpting | ||||||||
Definite-lived intangible assets | ||||||||
Definite-lived intangible assets impairment charges | 1,400 | |||||||
Developed product rights | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Net | 52,687 | 52,687 | 62,695 | |||||
Developed product rights | Imbruvica | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Net | $ 1,900 | |||||||
Developed product rights | Coolsculpting | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Net | 290 | 290 | ||||||
Developed product rights | Liletta | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Net | 241 | 241 | ||||||
License agreements | ||||||||
Definite-lived intangible assets | ||||||||
Finite-Lived Intangible Assets, Net | $ 2,620 | $ 2,620 | $ 3,832 | |||||
Minimum | ||||||||
Definite-lived intangible assets | ||||||||
Amortization period | 1 year | 1 year | ||||||
Maximum | ||||||||
Definite-lived intangible assets | ||||||||
Amortization period | 16 years | 16 years | ||||||
Weighted Average | Developed product rights | ||||||||
Definite-lived intangible assets | ||||||||
Amortization period | 12 years | 12 years | ||||||
Weighted Average | License agreements | ||||||||
Definite-lived intangible assets | ||||||||
Amortization period | 11 years | 11 years |
Integration and Restructuring_3
Integration and Restructuring Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring charges | |||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold, Research and development, Selling, general and administrative | Cost of products sold, Research and development, Selling, general and administrative | Cost of products sold, Research and development, Selling, general and administrative |
Allergan integration plan | |||
Restructuring charges | |||
Restructuring and Related Cost, Cost Incurred to Date | $ 2,500 | ||
Allergan integration plan | Employee Severance | |||
Restructuring charges | |||
Charges associated with integration or restructuring plans | 288 | $ 539 | $ 587 |
Restructuring reserve rollforward | |||
Accrued balance beginning of the period | 107 | 255 | 387 |
Integration and restructuring charges | 274 | 377 | 526 |
Payments and other adjustments | (338) | (525) | (658) |
Accrued balance end of the period | 43 | 107 | 255 |
Allergan integration plan | Employee Severance | Cost of products sold | |||
Restructuring charges | |||
Charges associated with integration or restructuring plans | 89 | 117 | 132 |
Allergan integration plan | Employee Severance | Research and development | |||
Restructuring charges | |||
Charges associated with integration or restructuring plans | 7 | 23 | 102 |
Allergan integration plan | Employee Severance | Selling, general and administrative | |||
Restructuring charges | |||
Charges associated with integration or restructuring plans | 192 | 399 | 353 |
Other restructuring | |||
Restructuring reserve rollforward | |||
Accrued balance beginning of the period | 176 | 33 | 90 |
Integration and restructuring charges | 107 | 193 | 54 |
Payments and other adjustments | (87) | (50) | (111) |
Accrued balance end of the period | 196 | 176 | 33 |
Other restructuring | Employee Severance | |||
Restructuring charges | |||
Charges associated with integration or restructuring plans | $ 132 | $ 241 | $ 59 |
Leases - Balance Sheet Disclosu
Leases - Balance Sheet Disclosure (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Operating lease assets | $ 744 | $ 737 | |
Finance lease assets | 35 | 25 | |
Total lease assets | $ 779 | $ 762 | |
Operating Lease assets balance sheet caption | Other assets | Other assets | |
Finance lease assets balance sheet caption | Property and equipment, net | Property and equipment, net | |
Liabilities | |||
Current operating lease liabilities | $ 166 | $ 166 | |
Noncurrent operating lease liabilities | 735 | 754 | |
Current finance lease liabilities | 15 | 17 | |
Noncurrent finance lease liabilities | 27 | 17 | |
Total lease liabilities | $ 943 | [1] | $ 954 |
Current operating lease liabilities balance sheet caption | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |
Noncurrent operating lease liabilities balance sheet caption | Other long-term liabilities | Other long-term liabilities | |
Current finance lease liabilities balance sheet caption | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations | |
Noncurrent finance lease liabilities balance sheet caption | Long-term debt and finance lease obligations | Long-term debt and finance lease obligations | |
[1] Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Leases - Cost (Details)
Leases - Cost (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 189 | $ 201 | $ 226 | |
Short-term lease cost | 28 | 67 | 56 | |
Variable lease cost | 88 | 71 | 71 | |
Total lease cost | $ 305 | $ 339 | $ 353 | |
Operating Lease, Impairment Loss | $ 69 | |||
Property and Equipment | ||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | |||
Operating Lease, Impairment Loss | 69 | |||
Leasehold Improvements | ||||
Property and Equipment | ||||
Impairment, Long-Lived Asset, Held-for-Use | $ 37 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | |||
Weighted-average remaining lease term for operating leases | 7 years | 8 years | 7 years |
Weighted-average remaining lease term for finance leases | 3 years | 2 years | 3 years |
Weighted-average discount rate for operating leases | 3% | 2.60% | 2.40% |
Weighted-average discount rate for finance leases | 3.60% | 1.50% | 1.10% |
Leases - Cash Flow Disclosure (
Leases - Cash Flow Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition | |||
Operating cash flows from operating leases | $ 214 | $ 212 | $ 236 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 173 | $ 235 | $ 66 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | ||
Operating leases | ||||
2024 | $ 194 | |||
2025 | 169 | |||
2026 | 145 | |||
2027 | 115 | |||
2028 | 93 | |||
Thereafter | 292 | |||
Total lease payments | 1,008 | |||
Less: Interest | 107 | |||
Present value of lease liabilities | 901 | |||
Finance leases | ||||
2024 | 15 | |||
2025 | 14 | |||
2026 | 12 | |||
2027 | 2 | |||
2028 | 0 | |||
Thereafter | 0 | |||
Total lease payments | 43 | |||
Less: Interest | 1 | |||
Present value of lease liabilities | 42 | |||
Total | ||||
2024 | [1] | 209 | ||
2025 | [1] | 183 | ||
2026 | [1] | 157 | ||
2027 | [1] | 117 | ||
2028 | [1] | 93 | ||
Thereafter | [1] | 292 | ||
Total lease payments | [1] | 1,051 | ||
Less: Interest | [1] | 108 | ||
Present value of lease liabilities | $ 943 | [1] | $ 954 | |
[1] Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Debt, Credit Facilities and C_3
Debt, Credit Facilities and Commitments and Contingencies - Summary of Long-Term Debt (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | ||
Long-term debt | |||||
Fair value hedges | $ 266 | $ 346 | |||
Unamortized bond discounts | 106 | 116 | |||
Unamortized deferred financing costs | (198) | (222) | |||
Unamortized bond premiums | [1] | 668 | 793 | ||
Total long-term debt and finance lease obligations | 59,385 | 63,270 | |||
Current portion | 7,191 | 4,135 | |||
Noncurrent portion | 52,194 | 59,135 | |||
Aggregate notes due 2023 | |||||
Long-term debt | |||||
Long-term debt and lease obligations, gross | $ 0 | $ 3,132 | |||
Aggregate notes due 2023 | Minimum | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 0.49% | 0.49% | 0.49% | |
Stated interest rate (as a percent) | 1.50% | 1.50% | |||
Aggregate notes due 2023 | Maximum | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 3.84% | 3.84% | 3.84% | |
Stated interest rate (as a percent) | 3.75% | 3.75% | |||
Other | |||||
Long-term debt | |||||
Long-term debt and lease obligations, gross | $ 42 | $ 33 | |||
Senior notes | 2.60% notes due 2024 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 2.69% | 2.69% | 2.69% | |
Long-term debt and lease obligations, gross | $ 3,750 | $ 3,750 | |||
Stated interest rate (as a percent) | 2.60% | 2.60% | |||
Senior notes | 1.375% notes due 2024 (€1,450 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 1.46% | 1.46% | 1.46% | |
Long-term debt and lease obligations, gross | $ 1,610 | $ 1,543 | |||
Stated interest rate (as a percent) | 1.375% | 1.375% | |||
Aggregate principal amount of debt | € | € 1,450,000,000 | ||||
Senior notes | 3.85% notes due 2024 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 2.07% | 2.07% | 2.07% | |
Long-term debt and lease obligations, gross | $ 1,032 | $ 1,032 | |||
Stated interest rate (as a percent) | 3.85% | 3.85% | |||
Senior notes | 1.25% notes due 2024 (€700 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 0.65% | 0.65% | 0.65% | |
Long-term debt and lease obligations, gross | $ 777 | $ 745 | |||
Stated interest rate (as a percent) | 1.25% | 1.25% | |||
Aggregate principal amount of debt | € | € 700,000,000 | ||||
Senior notes | 3.60% notes due 2025 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 3.66% | 3.66% | 3.66% | |
Long-term debt and lease obligations, gross | $ 3,750 | $ 3,750 | |||
Stated interest rate (as a percent) | 3.60% | 3.60% | |||
Senior notes | 3.80% notes due 2025 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 2.09% | 2.09% | 2.09% | |
Long-term debt and lease obligations, gross | $ 3,021 | $ 3,021 | |||
Stated interest rate (as a percent) | 3.80% | 3.80% | |||
Senior notes | 2.95% notes due 2026 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 3.02% | 3.02% | 3.02% | |
Long-term debt and lease obligations, gross | $ 4,000 | $ 4,000 | |||
Stated interest rate (as a percent) | 2.95% | 2.95% | |||
Senior notes | 3.20% notes due 2026 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 3.28% | 3.28% | 3.28% | |
Long-term debt and lease obligations, gross | $ 2,000 | $ 2,000 | |||
Stated interest rate (as a percent) | 3.20% | 3.20% | |||
Senior notes | 0.75% notes due 2027 (€750 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 0.86% | 0.86% | 0.86% | |
Long-term debt and lease obligations, gross | $ 833 | $ 798 | |||
Stated interest rate (as a percent) | 0.75% | 0.75% | |||
Aggregate principal amount of debt | € | € 750,000,000 | ||||
Senior notes | 4.25% notes due 2028 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.38% | 4.38% | 4.38% | |
Long-term debt and lease obligations, gross | $ 1,750 | $ 1,750 | |||
Stated interest rate (as a percent) | 4.25% | 4.25% | |||
Senior notes | 2.125% notes due 2028 (€750 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 2.18% | 2.18% | 2.18% | |
Long-term debt and lease obligations, gross | $ 833 | $ 798 | |||
Stated interest rate (as a percent) | 2.125% | 2.125% | |||
Aggregate principal amount of debt | € | € 750,000,000 | ||||
Senior notes | 2.625% notes due 2028 (€500 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 1.20% | 1.20% | 1.20% | |
Long-term debt and lease obligations, gross | $ 555 | $ 532 | |||
Stated interest rate (as a percent) | 2.625% | 2.625% | |||
Aggregate principal amount of debt | € | € 500,000,000 | ||||
Senior notes | 3.20% notes due 2029 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 3.25% | 3.25% | 3.25% | |
Long-term debt and lease obligations, gross | $ 5,500 | $ 5,500 | |||
Stated interest rate (as a percent) | 3.20% | 3.20% | |||
Senior notes | 2.125% notes due 2029 (€550 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 1.19% | 1.19% | 1.19% | |
Long-term debt and lease obligations, gross | $ 611 | $ 585 | |||
Stated interest rate (as a percent) | 2.125% | 2.125% | |||
Aggregate principal amount of debt | € | € 550,000,000 | ||||
Senior notes | 1.25% notes due 2031 (€650 principal) | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 1.30% | 1.30% | 1.30% | |
Long-term debt and lease obligations, gross | $ 722 | $ 691 | |||
Stated interest rate (as a percent) | 1.25% | 1.25% | |||
Aggregate principal amount of debt | € | € 650,000,000 | ||||
Senior notes | 4.55% notes due 2035 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 3.52% | 3.52% | 3.52% | |
Long-term debt and lease obligations, gross | $ 1,789 | $ 1,789 | |||
Stated interest rate (as a percent) | 4.55% | 4.55% | |||
Senior notes | 4.50% notes due 2035 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.58% | 4.58% | 4.58% | |
Long-term debt and lease obligations, gross | $ 2,500 | $ 2,500 | |||
Stated interest rate (as a percent) | 4.50% | 4.50% | |||
Senior notes | 4.30% notes due 2036 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.37% | 4.37% | 4.37% | |
Long-term debt and lease obligations, gross | $ 1,000 | $ 1,000 | |||
Stated interest rate (as a percent) | 4.30% | 4.30% | |||
Senior notes | 4.05% notes due 2039 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.11% | 4.11% | 4.11% | |
Long-term debt and lease obligations, gross | $ 4,000 | $ 4,000 | |||
Stated interest rate (as a percent) | 4.05% | 4.05% | |||
Senior notes | 4.40% notes due 2042 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.46% | 4.46% | 4.46% | |
Long-term debt and lease obligations, gross | $ 2,600 | $ 2,600 | |||
Stated interest rate (as a percent) | 4.40% | 4.40% | |||
Senior notes | 4.625% notes due 2042 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4% | 4% | 4% | |
Long-term debt and lease obligations, gross | $ 457 | $ 457 | |||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Senior notes | 4.85% notes due 2044 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.11% | 4.11% | 4.11% | |
Long-term debt and lease obligations, gross | $ 1,074 | $ 1,074 | |||
Stated interest rate (as a percent) | 4.85% | 4.85% | |||
Senior notes | 4.70% notes due 2045 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.73% | 4.73% | 4.73% | |
Long-term debt and lease obligations, gross | $ 2,700 | $ 2,700 | |||
Stated interest rate (as a percent) | 4.70% | 4.70% | |||
Senior notes | 4.75% notes due 2045 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.20% | 4.20% | 4.20% | |
Long-term debt and lease obligations, gross | $ 881 | $ 881 | |||
Stated interest rate (as a percent) | 4.75% | 4.75% | |||
Senior notes | 4.45% notes due 2046 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.50% | 4.50% | 4.50% | |
Long-term debt and lease obligations, gross | $ 2,000 | $ 2,000 | |||
Stated interest rate (as a percent) | 4.45% | 4.45% | |||
Senior notes | 4.875% notes due 2048 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 4.94% | 4.94% | 4.94% | |
Long-term debt and lease obligations, gross | $ 1,750 | $ 1,750 | |||
Stated interest rate (as a percent) | 4.875% | 4.875% | |||
Senior notes | 4.25% notes due 2049 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | 4.29% | 4.29% | 4.29% | [2] | |
Long-term debt and lease obligations, gross | $ 5,750 | $ 5,750 | |||
Stated interest rate (as a percent) | 4.25% | 4.25% | |||
Term loan facilities | Floating rate term loans due 2023 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 5.07% | 5.07% | 2.45% | |
Long-term debt and lease obligations, gross | $ 0 | $ 1,000 | |||
Term loan facilities | Floating rate term loans due 2025 | |||||
Long-term debt | |||||
Weighted-average effective interest rate | [2] | 5.95% | 5.95% | 2.82% | |
Long-term debt and lease obligations, gross | $ 2,000 | $ 2,000 | |||
[1] Represents unamortized purchase price adjustments of Allergan debt. Excludes the effect of any related interest rate swaps. |
Debt, Credit Facilities and C_4
Debt, Credit Facilities and Commitments and Contingencies - Summary of Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2024 | $ 7,170 | |
2025 | 8,771 | |
2026 | 6,000 | |
2027 | 833 | |
2028 | 3,138 | |
Thereafter | 33,333 | |
Long-term debt obligations, gross | 59,245 | |
Fair value hedges, unamortized bond premiums and discounts, deferred financing costs and finance lease obligations | 140 | |
Aggregate principal amount outstanding | $ 59,385 | $ 63,270 |
Debt, Credit Facilities and C_5
Debt, Credit Facilities and Commitments and Contingencies - Long-Term Debt - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 12, 2024 | Mar. 31, 2023 | Jan. 31, 2023 | Feb. 17, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Long-term debt | |||||||
Aggregate principal amount outstanding | $ 59,385 | $ 63,270 | |||||
Long-term debt obligations, gross | 59,245 | ||||||
Senior notes | Senior Notes 3.450 Percent Due 2022 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 2,900 | ||||||
Stated interest rate (as a percent) | 3.45% | ||||||
Senior notes | Senior Notes 3.25 Percent Due 2022 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 1,700 | ||||||
Stated interest rate (as a percent) | 3.25% | ||||||
Senior notes | 3.20% notes due 2022 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 1,000 | ||||||
Stated interest rate (as a percent) | 3.20% | ||||||
Senior notes | 2.90% notes due 2022 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 3,100 | ||||||
Stated interest rate (as a percent) | 2.90% | ||||||
Senior notes | Senior Notes 2.3 Percent Due 2022 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 3,000 | ||||||
Stated interest rate (as a percent) | 2.30% | ||||||
Senior notes | Floating rate notes due 2022 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 750 | ||||||
Senior notes | 2.80% notes due 2023 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 350 | ||||||
Stated interest rate (as a percent) | 2.80% | ||||||
Senior notes | 2.85% notes due 2023 | |||||||
Long-term debt | |||||||
Stated interest rate (as a percent) | 2.85% | ||||||
Senior notes | 1.50% notes due 2023 (€500 principal) | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 500 | ||||||
Stated interest rate (as a percent) | 1.50% | ||||||
Senior notes | 3.75% notes due 2023 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 1,300 | ||||||
Stated interest rate (as a percent) | 3.75% | ||||||
Term loan facilities | Floating Rate Term Loan Tranche Due May 2025 [Member] | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | 2,000 | ||||||
Long-term debt obligations, gross | 2,000 | ||||||
Term loan facilities | Floating rate term loans due 2025 | |||||||
Long-term debt | |||||||
Long-term debt obligations, gross | $ 2,000 | ||||||
Term loan facilities | Floating rate notes due 2023 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 1,000 | ||||||
Term loan facilities | 2.85% notes due 2023 | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ 1,000 | ||||||
Term loan facilities | December 2023 Term Loan Credit Agreement | Subsequent event | |||||||
Long-term debt | |||||||
Borrowings (repayments) of long-term debt | $ (5,000) |
Debt, Credit Facilities and C_6
Debt, Credit Facilities and Commitments and Contingencies - Short-Term Borrowings (Details) - USD ($) $ in Millions | 1 Months Ended | ||||||
Mar. 31, 2023 | Jan. 01, 2024 | Dec. 31, 2023 | Dec. 21, 2023 | Dec. 06, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | |
Short-term borrowings | |||||||
Short-term borrowings | $ 0 | $ 1 | |||||
December 2023 Bridge Credit Facility | |||||||
Short-term borrowings | |||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000 | $ 9,000 | |||||
Revolving credit facility | |||||||
Short-term borrowings | |||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000 | $ 4,000 | |||||
Revolving credit facility term | 5 years | ||||||
Revolving credit facility outstanding | 0 | 0 | |||||
Commercial Paper | |||||||
Short-term borrowings | |||||||
Short-term borrowings | $ 0 | $ 0 | |||||
Commercial Paper | Subsequent event | |||||||
Short-term borrowings | |||||||
Short-term borrowings | $ 1,700 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measures - Financial Instruments (Details) € in Millions, SFr in Millions, $ in Millions, kr in Billions | 12 Months Ended | ||||||||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 EUR (€) derivative | Dec. 31, 2023 USD ($) derivative | Dec. 31, 2023 SEK (kr) derivative | Dec. 31, 2023 CAD ($) derivative | Dec. 31, 2023 CHF (SFr) derivative | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 SEK (kr) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 CHF (SFr) | Dec. 31, 2020 USD ($) | |
Derivative instruments, notional amount and fair value | |||||||||||||
Number of outstanding derivative instruments containing credit risk contingent features | derivative | 0 | 0 | 0 | 0 | 0 | ||||||||
Amount excluded from the assessment of effectiveness for cash flow hedges | $ 0 | $ 0 | |||||||||||
Amount excluded from the assessment of effectiveness for fair value hedges | $ 0 | $ 0 | |||||||||||
Fair value - Derivatives in asset position | $ 66,000,000 | $ 163,000,000 | |||||||||||
Fair value - Derivatives in liability position | 496,000,000 | 524,000,000 | |||||||||||
Designated as hedging instrument | Net investment hedges | Senior notes | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Aggregate principal amount of senior Euro notes | € | € 5,400 | € 5,900 | |||||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | 1,800,000,000 | 1,700,000,000 | |||||||||||
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 | 12,000,000 | 49,000,000 | |||||||||||
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 | 32,000,000 | 8,000,000 | |||||||||||
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 | 0 | 1,000,000 | |||||||||||
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 | 4,900 | kr 1.4 | $ 750 | SFr 50 | € 4,300 | kr 2 | $ 750 | SFr 90 | |||||
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 | 13,000,000 | 6,000,000 | |||||||||||
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 | 66,000,000 | 36,000,000 | |||||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | Other assets | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Fair value - Derivatives in asset position | 0 | 74,000,000 | |||||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | Other long-term liabilities | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Fair value - Derivatives in liability position | 69,000,000 | 47,000,000 | |||||||||||
Designated as hedging instrument | Treasury rate lock agreements | Cash flow hedges | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | $ 10,000,000,000 | ||||||||||||
Designated as hedging instrument | Interest rate swap contracts | Fair value hedges | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | 5,000,000,000 | 4,500,000,000 | |||||||||||
Designated as hedging instrument | Interest rate swap 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 swap contracts | Fair value hedges | Accounts payable and accrued liabilities | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Fair value - Derivatives in liability position | 0 | 17,000,000 | |||||||||||
Designated as hedging instrument | Interest rate swap contracts | Fair value hedges | Other assets | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Fair value - Derivatives in asset position | 0 | 0 | |||||||||||
Designated as hedging instrument | Interest rate swap contracts | Fair value hedges | Other long-term liabilities | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Fair value - Derivatives in liability position | 293,000,000 | 375,000,000 | |||||||||||
Designated as hedging instrument | Cross-Currency Swap Contracts | Cash flow hedges | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | € | € 433 | ||||||||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | 7,900,000,000 | 6,500,000,000 | |||||||||||
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 | 41,000,000 | 33,000,000 | |||||||||||
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 | $ 36,000,000 | $ 41,000,000 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measures - Amount of Gain/(Loss) Recognized For Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cost of products sold | |||
Gain (loss) on derivatives | |||
Pre-tax losses to be transferred into cost of products sold for foreign currency cash flow hedges during the next 12 months | $ 7 | ||
Interest expense, net | |||
Gain (loss) on derivatives | |||
Pre-tax gains to be transferred into interest expense, net for treasury rate lock agreement cash flow hedges during the next 12 months | 23 | ||
Designated as hedging instrument | Senior notes | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from net investment hedges recognized in other comprehensive income | (252) | $ 406 | $ 577 |
Designated as hedging instrument | Interest expense, net | Senior notes | Fair value hedges | |||
Gain (loss) on derivatives | |||
Debt designated as hedged item in fair value hedges gains (losses) recognized in the consolidated statements of earnings | (98) | 402 | 127 |
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 | (2) | 103 | 82 |
Pre-tax gains (losses) from net investment hedges recognized in other comprehensive income | (144) | 395 | 341 |
Foreign currency forward exchange contracts | Designated as hedging instrument | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 77 | $ 82 | $ (87) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | Cost of products sold | Cost of products sold |
Foreign currency forward exchange contracts | Designated as hedging instrument | Net investment hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 112 | $ 94 | $ 26 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing |
Foreign currency forward exchange contracts | Not designated as hedging instrument | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 33 | $ (156) | $ (100) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss), Foreign Currency Transaction, before Tax | Gain (Loss), Foreign Currency Transaction, before Tax | Gain (Loss), Foreign Currency Transaction, before Tax |
Interest rate swap contracts | Designated as hedging instrument | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | $ 0 | $ 6 | $ 2 |
Interest rate swap contracts | Designated as hedging instrument | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 0 | $ (1) | $ (24) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing |
Interest rate swap contracts | Designated as hedging instrument | Fair value hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 98 | $ (402) | $ (127) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing |
Treasury rate lock agreements | Designated as hedging instrument | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 24 | $ 23 | $ 24 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing | Gain on derivative amount excluded from effectiveness testing |
Cross-Currency Swap Contracts | Designated as hedging instrument | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | $ (6) | $ 0 | $ 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss), Foreign Currency Transaction, before Tax | Gain (Loss), Foreign Currency Transaction, before Tax | Gain (Loss), Foreign Currency Transaction, before Tax |
Cross-Currency Swap Contracts | Designated as hedging instrument | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ (6) | $ 0 | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measures - Fair Value Measures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Investment, Type [Extensible Enumeration] | Money Market Funds [Member] | Money Market Funds [Member] | |
Foreign currency contracts | $ 66 | $ 163 | |
Liabilities | |||
Foreign currency contracts | 496 | 524 | |
Change in fair value recognized in net earnings | (5,128) | (2,761) | $ (2,679) |
Recurring | |||
Assets | |||
Cash and equivalents | 12,814 | 9,201 | |
Money market funds and time deposits | 10 | 21 | |
Debt securities | 26 | 28 | |
Equity securities | 111 | 91 | |
Total assets | 13,027 | 9,504 | |
Liabilities | |||
Interest rate swap contracts | 293 | 392 | |
Contingent consideration | 19,890 | 16,384 | |
Total liabilities | 20,386 | 16,908 | |
Recurring | Foreign currency contracts | |||
Assets | |||
Foreign currency contracts | 66 | 163 | |
Liabilities | |||
Foreign currency contracts | 203 | 132 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | |||
Assets | |||
Cash and equivalents | 6,223 | 4,201 | |
Money market funds and time deposits | 0 | 0 | |
Debt securities | 0 | 0 | |
Equity securities | 86 | 59 | |
Total assets | 6,309 | 4,260 | |
Liabilities | |||
Interest rate swap contracts | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Total liabilities | 0 | 0 | |
Recurring | 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 | |
Recurring | Significant other observable inputs (Level 2) | |||
Assets | |||
Cash and equivalents | 6,591 | 5,000 | |
Money market funds and time deposits | 10 | 21 | |
Debt securities | 26 | 28 | |
Equity securities | 25 | 32 | |
Total assets | 6,718 | 5,244 | |
Liabilities | |||
Interest rate swap contracts | 293 | 392 | |
Contingent consideration | 0 | 0 | |
Total liabilities | 496 | 524 | |
Recurring | Significant other observable inputs (Level 2) | Foreign currency contracts | |||
Assets | |||
Foreign currency contracts | 66 | 163 | |
Liabilities | |||
Foreign currency contracts | 203 | 132 | |
Recurring | Significant unobservable inputs (Level 3) | |||
Assets | |||
Cash and equivalents | 0 | 0 | |
Money market funds and time deposits | 0 | 0 | |
Debt securities | 0 | 0 | |
Equity securities | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities | |||
Interest rate swap contracts | 0 | 0 | |
Contingent consideration | 19,890 | 16,384 | |
Total liabilities | 19,890 | 16,384 | |
Recurring | 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) | Dec. 31, 2023 | Dec. 31, 2022 | |
Probability of payment for royalties excluding approved indications | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.89 | ||
Minimum | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.043 | 0.047 | |
Minimum | Probability of payment for unachieved milestones | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 1 | ||
Minimum | Probability of payment for royalties by indication | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [1] | 0.89 | 0.56 |
Minimum | Projected year of payments | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 2,024 | 2,023 | |
Minimum | Probability of payment for royalties excluding approved indications | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.56 | ||
Maximum | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.059 | 0.051 | |
Maximum | Probability of payment for unachieved milestones | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 1 | ||
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 | 1 |
Maximum | Projected year of payments | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 2,034 | 2,034 | |
Weighted Average | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [2] | 0.045 | 0.048 |
Weighted Average | Probability of payment for unachieved milestones | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [2] | 1 | |
Weighted Average | Probability of payment for royalties by indication | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [1],[2] | 0.99 | 0.99 |
Weighted Average | Projected year of payments | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [2] | 2,027 | 2,028 |
[1] Excluding approved indications, the estimated probability of payment was 89% at December 31, 2023 and was 56% at December 31, 2022. Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) All significant milestones were achieved and paid as of December 31, 2023. |
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 ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Transfers of assets 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 | ||||
Transfers of liabilities between the fair value measurement levels | |||||
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 | 16,384,000,000 | $ 14,887,000,000 | $ 12,997,000,000 | ||
Additions | $ 0 | [1] | $ 32,000,000 | $ 0 | [1] |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | ||
Change in fair value recognized in net earnings | $ (5,128,000,000) | $ (2,761,000,000) | $ (2,679,000,000) | ||
Payments | (1,622,000,000) | (1,296,000,000) | (789,000,000) | ||
Ending balance | $ 19,890,000,000 | $ 16,384,000,000 | $ 14,887,000,000 | ||
[1] Additions during the year ended December 31, 2022, represent contingent consideration liabilities assumed in the DJS acquisition. |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measures - Bases Used to Measure The Approximate Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Liabilities | ||
Carrying amount of investments in equity securities that do not have readily determinable fair values | $ 159 | $ 129 |
Book value | ||
Liabilities | ||
Short-term borrowings | 1 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 7,191 | 4,152 |
Long-term debt and finance lease obligations, excluding fair value hedges | 52,460 | 59,463 |
Total liabilities | 59,651 | 63,616 |
Estimate of Fair Value Measurement | ||
Liabilities | ||
Short-term borrowings | 1 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 7,069 | 4,121 |
Long-term debt and finance lease obligations, excluding fair value hedges | 49,541 | 54,073 |
Total liabilities | 56,610 | 58,195 |
Estimate of Fair Value Measurement | Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Short-term borrowings | 0 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 6,862 | 3,930 |
Long-term debt and finance lease obligations, excluding fair value hedges | 48,983 | 53,365 |
Total liabilities | 55,845 | 57,295 |
Estimate of Fair Value Measurement | Significant other observable inputs (Level 2) | ||
Liabilities | ||
Short-term borrowings | 1 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 207 | 191 |
Long-term debt and finance lease obligations, excluding fair value hedges | 558 | 708 |
Total liabilities | 765 | 900 |
Estimate of Fair Value Measurement | Significant unobservable inputs (Level 3) | ||
Liabilities | ||
Short-term borrowings | 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration of Risk | |||
Number of principal customers | 3 | ||
Net revenues | |||
Concentration of Risk | |||
Number of principal customers | 3 | ||
Net revenues | HUMIRA | Humira | |||
Concentration of Risk | |||
Concentrations risk (as a percent) | 27% | 37% | 37% |
Accounts receivable, net | Geographic Risk | Principal U.S. Customers | |||
Concentration of Risk | |||
Concentrations risk (as a percent) | 81% | 82% |
Post-Employment Benefits - Addi
Post-Employment Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 8,600 | $ 7,700 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Projected benefit obligation | 9,544 | 8,588 | $ 12,006 |
Actuarial (gain) loss | 491 | (3,668) | |
Amendments | $ 0 | 0 | |
Defined benefit plans | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target investment allocations for Pension Plan (as a percent) | 62.50% | ||
Defined benefit plans | Debt securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target investment allocations for Pension Plan (as a percent) | 22.50% | ||
Defined benefit plans | Asset allocation strategies and other holdings | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target investment allocations for Pension Plan (as a percent) | 15% | ||
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Projected benefit obligation | $ 796 | 667 | 850 |
Actuarial (gain) loss | $ 89 | (229) | |
Amendments | (2) | ||
Pre Sixty Five Years of Age | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual rate of increase in the per capita cost of covered health care obligation benefits assumed in the current year (as a percent) | 7.40% | ||
Ultimate per capita trend rate for health care costs from 2030 and thereafter (as a percent) | 4.50% | ||
Annual rate of increase in the per capita cost of covered health care cost benefits assumed in the current year (as a percent) | 6.20% | ||
Ultimate per capita trend rate for health care costs from 2029 and thereafter (as a percent) | 4.50% | ||
Post Sixty Five Years of Age | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual rate of increase in the per capita cost of covered health care obligation benefits assumed in the current year (as a percent) | 2.10% | ||
Ultimate per capita trend rate for health care costs from 2030 and thereafter (as a percent) | 1.80% | ||
Annual rate of increase in the per capita cost of covered health care cost benefits assumed in the current year (as a percent) | 2% | ||
Ultimate per capita trend rate for health care costs from 2029 and thereafter (as a percent) | 1.80% | ||
AbbVie Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan expenses recorded | $ 398 | 474 | $ 267 |
Foreign Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Projected benefit obligation | $ 2,400 | $ 2,100 |
Post-Employment Benefits - Bene
Post-Employment Benefits - Benefit Plan Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts recognized on the consolidated balance sheets | |||
Other long-term liabilities | $ (1,538) | $ (1,638) | |
Defined benefit plans | |||
Projected benefit obligations | |||
Beginning of period | 8,588 | 12,006 | |
Service cost | 270 | 454 | $ 440 |
Interest cost | 432 | 297 | 237 |
Employee contributions | 0 | 1 | |
Amendments | 0 | 0 | |
Actuarial (gain) loss | 491 | (3,668) | |
Benefits paid | (316) | (294) | |
Other, primarily foreign currency translation adjustments | 79 | (208) | |
End of period | 9,544 | 8,588 | 12,006 |
Fair value of plan assets | |||
Beginning of period | 8,472 | 10,655 | |
Actual return on plan assets | 1,230 | (2,031) | |
Company contributions | 366 | 357 | |
Employee contributions | 0 | 1 | |
Benefits paid | (316) | (294) | |
Other, primarily foreign currency translation adjustments | 87 | (216) | |
End of period | 9,839 | 8,472 | 10,655 |
Funded status, end of period | 295 | (116) | |
Amounts recognized on the consolidated balance sheets | |||
Other assets | 1,086 | 896 | |
Accounts payable and accrued liabilities | (17) | (14) | |
Other long-term liabilities | (774) | (998) | |
Net obligation | 295 | (116) | |
Actuarial loss, net | (2,290) | (2,365) | |
Prior service cost (credit) | 1 | 3 | |
Accumulated other comprehensive loss (income) | 2,291 | 2,368 | |
Other post-employment plans | |||
Projected benefit obligations | |||
Beginning of period | 667 | 850 | |
Service cost | 37 | 51 | 48 |
Interest cost | 37 | 23 | 19 |
Amendments | (2) | ||
Actuarial (gain) loss | 89 | (229) | |
Benefits paid | (35) | (25) | |
Other, primarily foreign currency translation adjustments | 1 | (1) | |
End of period | 796 | 667 | $ 850 |
Fair value of plan assets | |||
Company contributions | 35 | 25 | |
Benefits paid | (35) | (25) | |
Funded status, end of period | (796) | (667) | |
Amounts recognized on the consolidated balance sheets | |||
Accounts payable and accrued liabilities | (32) | (27) | |
Other long-term liabilities | (764) | (640) | |
Net obligation | (796) | (667) | |
Actuarial loss, net | (282) | (205) | |
Prior service cost (credit) | (297) | (333) | |
Accumulated other comprehensive loss (income) | $ (15) | $ (128) |
Post-Employment Benefits - Info
Post-Employment Benefits - Information For Pension Plans With A Projected Benefit Obligation And An Accumulated Benefit Obligation In Excess Of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Postemployment Benefits [Abstract] | ||
Accumulated benefit obligation | $ 1,410 | $ 1,211 |
Fair value of plan assets | 890 | 746 |
Projected benefit obligation | 6,343 | 5,592 |
Fair value of plan assets | $ 5,552 | $ 4,580 |
Post-Employment Benefits - Pret
Post-Employment Benefits - Pretax Gains and Losses Included in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial loss (gain) | $ (16) | $ (925) | $ (345) |
Amortization of prior service credit (cost) | (1) | (2) | (2) |
Amortization of actuarial loss | (16) | (231) | (288) |
Foreign exchange loss (gain) and other | (44) | 17 | (27) |
Total loss (gain) | (77) | (1,141) | (662) |
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial loss (gain) | 89 | (229) | 10 |
Amortization of prior service credit (cost) | 36 | 38 | 39 |
Amortization of actuarial loss | (12) | (26) | (32) |
Prior service credit | 0 | (2) | 0 |
Total loss (gain) | $ 113 | $ (219) | $ 17 |
Post-Employment Benefits - Net
Post-Employment Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 270 | $ 454 | $ 440 |
Interest cost | 432 | 297 | 237 |
Expected return on plan assets | (723) | (712) | (663) |
Amortization of prior service cost | 1 | 2 | 2 |
Amortization of actuarial loss | (16) | (231) | (288) |
Net periodic benefit cost (credit) | (4) | 272 | 304 |
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 37 | 51 | 48 |
Interest cost | 37 | 23 | 19 |
Amortization of prior service cost | (36) | (38) | (39) |
Amortization of actuarial loss | (12) | (26) | (32) |
Net periodic benefit cost (credit) | $ 50 | $ 62 | $ 60 |
Post-Employment Benefits - Weig
Post-Employment Benefits - Weighted-Average Assumptions Used in Determining Benefit Obligation at Measurement Date (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined benefit plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.80% | 5% |
Rate of compensation increases | 4.80% | 5.50% |
Cash balance interest crediting rate | 4.40% | 2.70% |
Other post-employment plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 5.10% | 5.30% |
Post-Employment Benefits - We_2
Post-Employment Benefits - Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate for determining service cost | 5% | 3% | 2.60% |
Discount rate for determining interest cost | 4.90% | 2.60% | 2.20% |
Expected long-term rate of return on plan assets | 7.30% | 7.10% | 7.10% |
Expected rate of change in compensation | 4.80% | 5.20% | 4.60% |
Cash balance interest crediting rate | 2.70% | 2.70% | 2.80% |
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate for determining service cost | 5.30% | 3.30% | 3% |
Discount rate for determining interest cost | 5.10% | 2.70% | 2.20% |
Post-Employment Benefits - Defi
Post-Employment Benefits - Defined Benefit Pension Plan Assets (Details) - Defined benefit plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | $ 9,839 | $ 8,472 | $ 10,655 | |
Fair value measured at Levels 1, 2 and 3 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 3,795 | 3,360 | ||
Fair value measured at Levels 1, 2 and 3 | U.S. large cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [1] | 1,018 | 949 | |
Fair value measured at Levels 1, 2 and 3 | U.S. mid cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [2] | 173 | 157 | |
Fair value measured at Levels 1, 2 and 3 | International | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [3] | 488 | 327 | |
Fair value measured at Levels 1, 2 and 3 | U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 246 | 237 | |
Fair value measured at Levels 1, 2 and 3 | Corporate debt instruments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 714 | 680 | |
Fair value measured at Levels 1, 2 and 3 | Non-U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 461 | 548 | |
Fair value measured at Levels 1, 2 and 3 | Other fixed income securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 126 | 84 | |
Fair value measured at Levels 1, 2 and 3 | Absolute return funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [5] | 155 | 91 | |
Fair value measured at Levels 1, 2 and 3 | Real assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 9 | |||
Fair value measured at Levels 1, 2 and 3 | Other plan assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [6] | 414 | 278 | |
Quoted prices in active markets for identical assets (Level 1) | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 2,800 | 2,419 | ||
Quoted prices in active markets for identical assets (Level 1) | U.S. large cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [1] | 1,018 | 949 | |
Quoted prices in active markets for identical assets (Level 1) | U.S. mid cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [2] | 173 | 157 | |
Quoted prices in active markets for identical assets (Level 1) | International | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [3] | 488 | 327 | |
Quoted prices in active markets for identical assets (Level 1) | U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 62 | 69 | |
Quoted prices in active markets for identical assets (Level 1) | Corporate debt instruments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 155 | 144 | |
Quoted prices in active markets for identical assets (Level 1) | Non-U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 301 | 402 | |
Quoted prices in active markets for identical assets (Level 1) | Other fixed income securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 124 | 81 | |
Quoted prices in active markets for identical assets (Level 1) | Absolute return funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [5] | 66 | 4 | |
Quoted prices in active markets for identical assets (Level 1) | Real assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 9 | |||
Quoted prices in active markets for identical assets (Level 1) | Other plan assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [6] | 413 | 277 | |
Significant other observable inputs (Level 2) | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 995 | 941 | ||
Significant other observable inputs (Level 2) | U.S. large cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Significant other observable inputs (Level 2) | U.S. mid cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Significant other observable inputs (Level 2) | International | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Significant other observable inputs (Level 2) | U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 184 | 168 | |
Significant other observable inputs (Level 2) | Corporate debt instruments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 559 | 536 | |
Significant other observable inputs (Level 2) | Non-U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 160 | 146 | |
Significant other observable inputs (Level 2) | Other fixed income securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 2 | 3 | |
Significant other observable inputs (Level 2) | Absolute return funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [5] | 89 | 87 | |
Significant other observable inputs (Level 2) | Real assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0 | |||
Significant other observable inputs (Level 2) | Other plan assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [6] | 1 | 1 | |
Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) | U.S. large cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Significant unobservable inputs (Level 3) | U.S. mid cap | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Significant unobservable inputs (Level 3) | International | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Significant unobservable inputs (Level 3) | U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Significant unobservable inputs (Level 3) | Corporate debt instruments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Significant unobservable inputs (Level 3) | Non-U.S. government securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Significant unobservable inputs (Level 3) | Other fixed income securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Significant unobservable inputs (Level 3) | Absolute return funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [5] | 0 | 0 | |
Significant unobservable inputs (Level 3) | Real assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | 0 | |||
Significant unobservable inputs (Level 3) | Other plan assets | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | [6] | 0 | 0 | |
Total assets measured at NAV | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Fair value of plan assets | $ 6,044 | $ 5,112 | ||
[1] A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. Securities held by actively managed accounts, index funds and mutual funds. Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. Investments in cash and cash equivalents. |
Post-Employment Benefits - Expe
Post-Employment Benefits - Expected Defined Benefit and Other Post-Employment Plan Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Defined benefit plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | $ 339 |
2025 | 364 |
2026 | 387 |
2027 | 413 |
2028 | 434 |
2029 to 2033 | 2,580 |
Other post-employment plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 33 |
2025 | 37 |
2026 | 41 |
2027 | 44 |
2028 | 47 |
2029 to 2033 | $ 292 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | 144 | ||
Retirement-eligible employees' age | 55 years | ||
Minimum number of years of services | 10 years | ||
Pre-tax compensation expense | $ 747 | $ 671 | $ 692 |
Tax benefit | 136 | 122 | 126 |
After-tax compensation expense | 611 | 549 | 566 |
Excess tax benefits realized from stock-based compensation | 90 | 116 | 50 |
Cost of products sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 46 | 38 | 46 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 278 | 232 | 226 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | $ 423 | $ 401 | $ 420 |
Equity - Stock Options (Details
Equity - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
Vesting period | 3 years | ||
Exercise price for awards granted as percentage of market value on the date of grant | 100% | ||
Weighted-average grant-date fair value of the stock options granted (in dollars per share) | $ 29.89 | $ 22.83 | $ 16.28 |
Options | |||
Outstanding at the beginning of the period (in shares) | 9,320 | ||
Granted (in shares) | 642 | ||
Exercised (in shares) | (2,410) | ||
Lapsed and forfeited (in shares) | (71) | ||
Outstanding at the end of the period (in shares) | 7,481 | 9,320 | |
Exercisable at the end of the period (in shares) | 5,954 | ||
Weighted- average exercise price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 91.84 | ||
Granted (in dollars per share) | 149.30 | ||
Exercised (in dollars per share) | 73.21 | ||
Lapsed and forfeited (in dollars per share) | 90.43 | ||
Outstanding at the end of the period (in dollars per share) | 102.80 | $ 91.84 | |
Exercisable at the end of the period (in dollars per share) | $ 93.85 | ||
Weighted-average remaining life (in years) | |||
Outstanding | 5 years | 4 years 9 months 18 days | |
Exercisable | 4 years 2 months 12 days | ||
Aggregate intrinsic value | |||
Outstanding | $ 390 | $ 650 | |
Exercisable | 364 | ||
Aggregate intrinsic value of options exercised | 189 | $ 295 | $ 239 |
Total fair value of options vested | 21 | ||
Unrecognized compensation cost | $ 6 | ||
Period for recognition of unrecognized compensation cost | 2 years |
Equity - RSUs and Performance S
Equity - RSUs and Performance Shares (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
RSUs | Minimum vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Maximum vesting period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Performance-vested RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Common stock received for each vested award (in shares) | 1 | ||
Weighted-average grant date fair value | |||
Incremental vesting | 0.33 | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Weighted-average grant date fair value | |||
Incremental vesting | 0.33 | ||
RSUs and performance shares | |||
Share units | |||
Shares units outstanding at the beginning of the period (in shares) | 13,031,000 | ||
Granted (in shares) | 5,872,000 | ||
Vested (in shares) | (6,790,000) | ||
Forfeited (in shares) | (1,374,000) | ||
Shares units outstanding at the end of the period (in shares) | 10,739,000 | 13,031,000 | |
Weighted-average grant date fair value | |||
Weighted average fair value outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 116.84 | ||
Granted (in dollars per share) | $ / shares | 141.63 | ||
Vested (in dollars per share) | $ / shares | 107.96 | ||
Forfeited (in dollars per share) | $ / shares | 113.65 | ||
Weighted average fair value outstanding at the end of the period (in dollars per share) | $ / shares | $ 136.42 | $ 116.84 | |
Fair market value of awards vested | $ | $ 1,000 | $ 1,000 | $ 718 |
Unrecognized compensation cost | $ | $ 571 | ||
Period for recognition of unrecognized compensation cost | 2 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Weighted-average grant date fair value | |||
Period for recognition of unrecognized compensation cost | 2 years | ||
Incremental vesting | 0.33 |
Equity - Cash Dividends (Detail
Equity - Cash Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 26, 2023 | Sep. 08, 2023 | Jun. 22, 2023 | Feb. 16, 2023 | Oct. 28, 2022 | Sep. 09, 2022 | Jun. 23, 2022 | Feb. 17, 2022 | Oct. 29, 2021 | Sep. 10, 2021 | Jun. 17, 2021 | Feb. 18, 2021 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ 1.55 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.41 | $ 1.41 | $ 1.41 | $ 1.41 | $ 1.30 | $ 1.30 | $ 1.30 | $ 1.55 | $ 5.99 | $ 5.71 | $ 5.31 |
Equity - Share Repurchase Progr
Equity - Share Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 16, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Payment for shares repurchased | $ 1,978 | $ 1,487 | $ 934 | |
December 2018 Stock Repurchase Authorization | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 10 | 8 | 6 | |
Payment for shares repurchased | $ 1,600 | $ 1,100 | $ 670 | |
Remaining share repurchase authorization amount | $ 4,800 | |||
Stock Repurchase Program, Increase in Authorized Amount | $ 5,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | $ 17,287 | $ 15,436 | $ 13,097 |
Other comprehensive income (loss) | (106) | 700 | 218 |
Ending balance | 10,397 | 17,287 | 15,436 |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (2,199) | (2,899) | (3,117) |
Other comprehensive income (loss) | (106) | 700 | 218 |
Ending balance | (2,305) | (2,199) | (2,899) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (1,513) | (570) | 583 |
Other comprehensive income (loss) before reclassifications | 407 | (943) | (1,153) |
Net gains reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss) | 407 | (943) | (1,153) |
Ending balance | (1,106) | (1,513) | (570) |
Net investment hedging activities | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | 464 | (91) | (790) |
Other comprehensive income (loss) before reclassifications | (311) | 629 | 720 |
Net gains reclassified from accumulated other comprehensive loss | (88) | (74) | (21) |
Other comprehensive income (loss) | (399) | 555 | 699 |
Ending balance | 65 | 464 | (91) |
Pension and post-employment benefits | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (1,458) | (2,546) | (3,067) |
Other comprehensive income (loss) before reclassifications | (23) | 915 | 298 |
Net gains reclassified from accumulated other comprehensive loss | (7) | 173 | 223 |
Other comprehensive income (loss) | (30) | 1,088 | 521 |
Ending balance | (1,488) | (1,458) | (2,546) |
Cash flow hedging activities | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | 308 | 308 | 157 |
Other comprehensive income (loss) before reclassifications | (10) | 91 | 76 |
Net gains reclassified from accumulated other comprehensive loss | (74) | (91) | 75 |
Other comprehensive income (loss) | (84) | 0 | 151 |
Ending balance | 224 | 308 | 308 |
Accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (2,199) | (2,899) | (3,117) |
Other comprehensive income (loss) before reclassifications | 63 | 692 | (59) |
Net gains reclassified from accumulated other comprehensive loss | (169) | 8 | 277 |
Other comprehensive income (loss) | (106) | 700 | 218 |
Ending balance | $ (2,305) | $ (2,199) | $ (2,899) |
Equity - Amounts Reclassified O
Equity - Amounts Reclassified Out Of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Significant amounts reclassified out of each component of AOCI | |||||
Gain on derivative amount excluded from effectiveness testing | $ (1,684) | $ (2,044) | $ (2,384) | ||
Tax expense (benefit) | 1,377 | 1,632 | 1,440 | ||
Total reclassifications, net of tax | $ (822) | (4,863) | (11,836) | (11,542) | |
Losses (gains) on foreign currency exchange contracts | 20,415 | 17,414 | 17,446 | ||
Other comprehensive income, net of tax | (106) | 700 | 218 | ||
Gain (Loss), Foreign Currency Transaction, before Tax | 146 | 148 | 51 | ||
Pension and post-employment benefits | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Amortization of actuarial losses and other | [1] | (7) | 221 | 283 | |
Tax expense (benefit) | 0 | (48) | (60) | ||
Total reclassifications, net of tax | (7) | 173 | 223 | ||
Other comprehensive income, net of tax | (30) | 1,088 | 521 | ||
Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Total reclassifications, net of tax | (74) | (91) | 75 | ||
Other comprehensive income, net of tax | (84) | 0 | 151 | ||
Foreign currency translation adjustments | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Total reclassifications, net of tax | 0 | 0 | 0 | ||
Other comprehensive income, net of tax | 407 | (943) | (1,153) | ||
Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Tax expense (benefit) | 21 | 13 | (12) | ||
Total reclassifications, net of tax | (74) | (91) | 75 | ||
Reclassification out of accumulated other comprehensive loss | Net investment hedges | Net investment hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Gain on derivative amount excluded from effectiveness testing | [2] | 112 | 94 | 26 | |
Tax expense (benefit) | 24 | 20 | 5 | ||
Total reclassifications, net of tax | (88) | (74) | (21) | ||
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 exchange contracts | [3] | (77) | (82) | 87 | |
Treasury rate lock agreements | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Gain on derivative amount excluded from effectiveness testing | [2] | (24) | (23) | (24) | |
Interest rate swap contracts | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Gain on derivative amount excluded from effectiveness testing | [2] | 0 | 1 | 24 | |
Cross-Currency Swap Contracts | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Gain (Loss), Foreign Currency Transaction, before Tax | $ 6 | $ 0 | $ 0 | ||
[1] Amounts are included in the computation of net periodic benefit cost (see Note 12). Amounts are included in interest expense, net (see Note 11). Amounts are included in cost of products sold (see Note 11). (d) Amounts are included in net foreign exchange loss (see Note 11). |
Equity - Other (Details)
Equity - Other (Details) | Dec. 31, 2023 $ / shares shares |
Equity [Abstract] | |
Preferred stock authorized (in shares) | 200,000,000 |
Preferred stock par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock issued (in shares) | 0 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (3,475) | $ (4,608) | $ (1,644) |
Foreign | 9,725 | 18,085 | 14,633 |
Earnings before income tax expense | $ 6,250 | $ 13,477 | $ 12,989 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Domestic | $ 3,272 | $ 2,647 | $ 1,987 |
Foreign | 994 | 916 | 351 |
Total current taxes | 4,266 | 3,563 | 2,338 |
Deferred | |||
Domestic | (2,324) | (1,512) | (839) |
Foreign | (565) | (419) | (59) |
Total deferred taxes | (2,889) | (1,931) | (898) |
Total income tax expense | $ 1,377 | $ 1,632 | $ 1,440 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
Effect of foreign operations | 8% | (4.40%) | (5.40%) |
U.S. tax credits | (3.10%) | (2.80%) | (2.80%) |
Non-deductible expenses | 1.50% | 0.60% | 0.30% |
Tax law changes | (3.80%) | (2.40%) | (2.00%) |
Tax audits and settlements | (1.10%) | 0.90% | (0.40%) |
All other, net | (0.50%) | (0.80%) | 0.40% |
Effective tax rate | 22% | 12.10% | 11.10% |
Effective income Tax Rate Reconciliation Puerto Rico Act | $ 323 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred tax assets | ||
Compensation and employee benefits | $ 519 | $ 497 |
Accruals and reserves | 1,113 | 1,023 |
Chargebacks and rebates | 1,431 | 991 |
Advance payments | 298 | 547 |
Net operating losses and other carryforwards | 14,316 | 10,391 |
Other | 2,259 | 1,710 |
Total deferred tax assets | 19,936 | 15,159 |
Valuation allowances | (13,478) | (9,627) |
Total net deferred tax assets | 6,458 | 5,532 |
Deferred tax liabilities | ||
Excess of book basis over tax basis of intangible assets | (1,535) | (3,590) |
Excess of book basis over tax basis in investments | (374) | (340) |
Other | (746) | (772) |
Total deferred tax liabilities | (2,655) | (4,702) |
Net deferred tax assets (liabilities) | 3,803 | 830 |
Tax Credit Carryforward | ||
Valuation allowances | (13,478) | $ (9,627) |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 3,600 | |
U.S. Federal and State | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | 372 | |
U.S. Federal, State and Non-U.S. | ||
Tax Credit Carryforward | ||
Operating loss carryforwards with expiration through 2041 | 33,600 | |
U.S. Federal and Non-U.S. | ||
Tax Credit Carryforward | ||
Operating loss carryforwards | $ 31,300 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized Tax Benefits | |||
Beginning balance | $ 5,670 | $ 5,489 | $ 5,264 |
Increase due to current year tax positions | 129 | 88 | 208 |
Increase due to prior year tax positions | 109 | 243 | 137 |
Decrease due to prior year tax positions | (21) | (33) | (62) |
Settlements | (86) | (7) | (24) |
Lapse of statutes of limitations | (39) | (110) | (34) |
Ending balance | 5,762 | 5,670 | 5,489 |
Net amount of potential tax benefits that would impact the entity's effective tax rate | 5,600 | 5,500 | |
Interest and penalties | 430 | 339 | 161 |
Accrued interest and penalties | 1,600 | $ 1,100 | $ 803 |
Reasonably possible amount that gross unrecognized tax benefits may change within the next twelve months, high end of range | $ 476 |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2019 company | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) company lawsuit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 claim | Dec. 31, 2023 claims | Jun. 30, 2022 USD ($) | |
Legal Proceedings and Contingencies | ||||||||
Income tax expense | $ | $ 1,377 | $ 1,632 | $ 1,440 | |||||
Niaspan | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of individual plaintiff lawsuits | lawsuit | 6 | |||||||
AndroGel antitrust litigation, King Drug Co. of Florence, Inc. v. AbbVie Inc. | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of generic companies with whom certain litigation related agreements were entered into | company | 3 | |||||||
Bystolic antitrust litigation | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of generic companies with whom certain litigation related agreements were entered into | company | 6 | |||||||
Prescription drug abuse litigation | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | claim | 590 | |||||||
Prescription drug abuse litigation in state courts | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 175 | 140 | ||||||
Tax court petition | ||||||||
Legal Proceedings and Contingencies | ||||||||
Income tax expense | $ | $ 572 | |||||||
Prescription Drug Abuse Litigation In State Courts In process of Being Dismissed | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | company | 140 | |||||||
Selling, general and administrative | Prescription drug abuse litigation in state courts | ||||||||
Legal Proceedings and Contingencies | ||||||||
Loss Contingency, Estimate of Possible Loss | $ | $ 2,100 |
Segment and Geographic Area I_3
Segment and Geographic Area Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment wholesaler | |
Segment Reporting [Abstract] | |
Number of Operating Segments | segment | 1 |
Number of Principal US Customers | wholesaler | 3 |
Segment and Geographic Area I_4
Segment and Geographic Area Information - Disaggregation of Revenue (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) wholesaler | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue | ||||
Net revenues | $ 54,318 | $ 58,054 | $ 56,197 | |
Collaborative Arrangement, Revenue Not from Contract with Customer, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total net revenues | Total net revenues | Total net revenues | |
Total net revenues | $ 14,301 | $ 54,318 | $ 58,054 | $ 56,197 |
Number of Principal US Customers | wholesaler | 3 | |||
United States | ||||
Disaggregation of Revenue | ||||
Net revenues | $ 41,883 | 45,713 | 43,510 | |
All other | ||||
Disaggregation of Revenue | ||||
Net revenues | 3,035 | 4,137 | 5,019 | |
Immunology | Humira | ||||
Disaggregation of Revenue | ||||
Net revenues | 14,404 | 21,237 | 20,694 | |
Immunology | Humira | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 12,160 | 18,619 | 17,330 | |
Immunology | Humira | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,244 | 2,618 | 3,364 | |
Immunology | Skyrizi | ||||
Disaggregation of Revenue | ||||
Net revenues | 7,763 | 5,165 | 2,939 | |
Immunology | Skyrizi | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 6,753 | 4,484 | 2,486 | |
Immunology | Skyrizi | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,010 | 681 | 453 | |
Immunology | Rinvoq | ||||
Disaggregation of Revenue | ||||
Net revenues | 3,969 | 2,522 | 1,651 | |
Immunology | Rinvoq | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,824 | 1,794 | 1,271 | |
Immunology | Rinvoq | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,145 | 728 | 380 | |
Oncology | Imbruvica | ||||
Disaggregation of Revenue | ||||
Net revenues | 3,596 | 4,568 | 5,408 | |
Oncology | Imbruvica | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,665 | 3,426 | 4,321 | |
Oncology | Imbruvica | International | ||||
Disaggregation of Revenue | ||||
Collaboration revenues | 931 | 1,142 | 1,087 | |
Oncology | Venclexta | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,288 | 2,009 | 1,820 | |
Oncology | Venclexta | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,087 | 1,009 | 934 | |
Oncology | Venclexta | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,201 | 1,000 | 886 | |
Oncology | Epkinly | ||||
Disaggregation of Revenue | ||||
Net revenues | 31 | |||
Collaboration revenues | 28 | 0 | 0 | |
Oncology | Epkinly | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 3 | 0 | 0 | |
Aesthetics | Botox Cosmetic | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,682 | 2,615 | 2,232 | |
Aesthetics | Botox Cosmetic | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,670 | 1,654 | 1,424 | |
Aesthetics | Botox Cosmetic | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,012 | 961 | 808 | |
Aesthetics | Juvederm Collection | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,378 | 1,428 | 1,535 | |
Aesthetics | Juvederm Collection | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 519 | 548 | 658 | |
Aesthetics | Juvederm Collection | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 859 | 880 | 877 | |
Aesthetics | Other Aesthetics | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,234 | 1,290 | 1,466 | |
Aesthetics | Other Aesthetics | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,060 | 1,122 | 1,268 | |
Aesthetics | Other Aesthetics | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 174 | 168 | 198 | |
Neuroscience | Botox Therapeutic | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,991 | 2,719 | 2,451 | |
Neuroscience | Botox Therapeutic | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,476 | 2,255 | 2,012 | |
Neuroscience | Botox Therapeutic | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 515 | 464 | 439 | |
Neuroscience | Vraylar | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,759 | 2,038 | 1,728 | |
Neuroscience | Vraylar | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,755 | 2,037 | 1,728 | |
Neuroscience | Vraylar | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 4 | 1 | 0 | |
Neuroscience | Duodopa | ||||
Disaggregation of Revenue | ||||
Net revenues | 468 | 458 | 511 | |
Neuroscience | Duodopa | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 97 | 95 | 102 | |
Neuroscience | Duodopa | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 371 | 363 | 409 | |
Neuroscience | Ubrelvy | ||||
Disaggregation of Revenue | ||||
Net revenues | 815 | 680 | 552 | |
Neuroscience | Ubrelvy | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 803 | 680 | 552 | |
Neuroscience | Ubrelvy | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 12 | 0 | 0 | |
Neuroscience | Qulipta | ||||
Disaggregation of Revenue | ||||
Net revenues | 408 | 158 | 0 | |
Neuroscience | Qulipta | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 405 | 158 | 0 | |
Neuroscience | Qulipta | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 3 | 0 | 0 | |
Neuroscience | Other Neuroscience | ||||
Disaggregation of Revenue | ||||
Net revenues | 276 | 475 | 685 | |
Neuroscience | Other Neuroscience | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 254 | 456 | 667 | |
Neuroscience | Other Neuroscience | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 22 | 19 | 18 | |
Eye Care | Lumigan/Ganfort | ||||
Disaggregation of Revenue | ||||
Net revenues | 432 | 514 | 579 | |
Eye Care | Lumigan/Ganfort | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 173 | 242 | 273 | |
Eye Care | Lumigan/Ganfort | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 259 | 272 | 306 | |
Eye Care | Alphagan/Combigan | ||||
Disaggregation of Revenue | ||||
Net revenues | 272 | 346 | 529 | |
Eye Care | Alphagan/Combigan | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 121 | 202 | 373 | |
Eye Care | Alphagan/Combigan | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 151 | 144 | 156 | |
Eye Care | Restasis | ||||
Disaggregation of Revenue | ||||
Net revenues | 436 | 666 | 1,290 | |
Eye Care | Restasis | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 382 | 621 | 1,234 | |
Eye Care | Restasis | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 54 | 45 | 56 | |
Eye Care | Other Eye Care | ||||
Disaggregation of Revenue | ||||
Net revenues | 803 | 747 | 751 | |
Eye Care | Other Eye Care | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 433 | 399 | 393 | |
Eye Care | Other Eye Care | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 370 | 348 | 358 | |
Eye Care | Ozurdex | ||||
Disaggregation of Revenue | ||||
Net revenues | 472 | 428 | 418 | |
Eye Care | Ozurdex | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 143 | 139 | 130 | |
Eye Care | Ozurdex | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 329 | 289 | 288 | |
Other Key Products | Mavyret | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,430 | 1,541 | 1,710 | |
Other Key Products | Mavyret | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 659 | 755 | 754 | |
Other Key Products | Mavyret | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 771 | 786 | 956 | |
Other Key Products | Creon | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,268 | 1,278 | 1,191 | |
Other Key Products | Linzess/Constella | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,108 | 1,035 | 1,038 | |
Other Key Products | Linzess/Constella | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,073 | 1,003 | 1,006 | |
Other Key Products | Linzess/Constella | International | ||||
Disaggregation of Revenue | ||||
Net revenues | $ 35 | $ 32 | $ 32 |
Segment and Geographic Area I_5
Segment and Geographic Area Information - Net Revenues to External Customers by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | $ 54,318 | $ 58,054 | $ 56,197 |
United States | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 41,883 | 45,713 | 43,510 |
Germany | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 1,266 | 1,340 | 1,223 |
Canada | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 1,076 | 1,159 | 1,397 |
Japan | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 1,008 | 956 | 1,090 |
China | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 950 | 912 | 857 |
France | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 780 | 787 | 936 |
Australia | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 472 | 508 | 533 |
Spain | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 501 | 506 | 519 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 417 | 462 | 497 |
Italy | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 484 | 444 | 506 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 439 | 430 | 368 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | $ 5,042 | $ 4,837 | $ 4,761 |
Segment and Geographic Area I_6
Segment and Geographic Area Information - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | $ 4,989 | $ 4,935 |
United States and Puerto Rico | ||
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | 3,139 | 3,243 |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | 1,433 | 1,369 |
All other | ||
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | $ 417 | $ 323 |
Fourth Quarter Financial Resu_3
Fourth Quarter Financial Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 26, 2023 | Sep. 08, 2023 | Jun. 22, 2023 | Feb. 16, 2023 | Oct. 28, 2022 | Sep. 09, 2022 | Jun. 23, 2022 | Feb. 17, 2022 | Oct. 29, 2021 | Sep. 10, 2021 | Jun. 17, 2021 | Feb. 18, 2021 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Net revenues | $ 14,301 | $ 54,318 | $ 58,054 | $ 56,197 | ||||||||||||
Gross margin | 8,597 | |||||||||||||||
Net earnings attributable to AbbVie Inc. | $ 822 | $ 4,863 | $ 11,836 | $ 11,542 | ||||||||||||
Basic earnings per share (in dollars per share) | $ 0.46 | $ 2.73 | $ 6.65 | $ 6.48 | ||||||||||||
Diluted earnings per share (in dollars per share) | 0.46 | 2.72 | 6.63 | 6.45 | ||||||||||||
Cash dividends declared per common share (in dollars per share) | $ 1.55 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.41 | $ 1.41 | $ 1.41 | $ 1.41 | $ 1.30 | $ 1.30 | $ 1.30 | $ 1.55 | $ 5.99 | $ 5.71 | $ 5.31 |