Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35565 | |
Entity Registrant Name | AbbVie Inc. | |
Entity Central Index Key | 0001551152 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0375147 | |
Entity Address, Address Line One | 1 North Waukegan Road | |
Entity Address, City or Town | North Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60064-6400 | |
City Area Code | 847 | |
Local Phone Number | 932-7900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,766,343,745 | |
NEW YORK STOCK EXCHANGE, INC. | Common stock | ||
Entity Information | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ABBV | |
NEW YORK STOCK EXCHANGE, INC. | Sec 0.750 Senior Notes Due 2027 | ||
Entity Information | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | 0.750% Senior Notes due 2027 | |
Trading Symbol | ABBV27 | |
NEW YORK STOCK EXCHANGE, INC. | Sec 2.125 Senior Notes due 2028 | ||
Entity Information | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | 2.125% Senior Notes due 2028 | |
Trading Symbol | ABBV28 | |
NEW YORK STOCK EXCHANGE, INC. | Sec 2.625 Senior Notes Due 2028 | ||
Entity Information | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | 2.625% Senior Notes due 2028 | |
Trading Symbol | ABBV28B | |
NEW YORK STOCK EXCHANGE, INC. | Sec 2.125 Senior Notes Due 2029 | ||
Entity Information | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | 2.125% Senior Notes due 2029 | |
Trading Symbol | ABBV29 | |
NEW YORK STOCK EXCHANGE, INC. | Sec 1.250 Senior Notes due 2031 | ||
Entity Information | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | 1.250% Senior Notes due 2031 | |
Trading Symbol | ABBV31 | |
CHICAGO STOCK EXCHANGE, INC | Common stock | ||
Entity Information | ||
Security Exchange Name | CHX | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ABBV |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net revenues | $ 14,462 | $ 13,865 | $ 26,772 | $ 26,090 |
Cost of products sold | 4,202 | 4,240 | 8,296 | 8,226 |
Selling, general and administrative | 3,377 | 3,268 | 6,692 | 6,307 |
Research and development | 1,948 | 1,733 | 3,887 | 4,025 |
Acquired IPR&D and milestones | 937 | 280 | 1,101 | 430 |
Other operating income | 0 | (169) | 0 | (179) |
Total operating costs and expenses | 10,464 | 9,352 | 19,976 | 18,809 |
Operating earnings | 3,998 | 4,513 | 6,796 | 7,281 |
Interest expense, net | 506 | 454 | 959 | 908 |
Net foreign exchange loss | 1 | 37 | 5 | 72 |
Other expense, net | 1,345 | 1,412 | 1,931 | 3,216 |
Earnings before income tax expense | 2,146 | 2,610 | 3,901 | 3,085 |
Income tax expense | 773 | 583 | 1,156 | 817 |
Net earnings | 1,373 | 2,027 | 2,745 | 2,268 |
Net earnings attributable to noncontrolling interest | 3 | 3 | 6 | 5 |
Net earnings attributable to AbbVie Inc. | $ 1,370 | $ 2,024 | $ 2,739 | $ 2,263 |
Per share data | ||||
Basic earnings per share (in dollars per share) | $ 0.77 | $ 1.14 | $ 1.54 | $ 1.27 |
Diluted earnings per share (in dollars per share) | $ 0.77 | $ 1.14 | $ 1.53 | $ 1.26 |
Weighted-average basic shares outstanding (in shares) | 1,768 | 1,767 | 1,769 | 1,768 |
Weighted-average diluted shares outstanding (in shares) | 1,771 | 1,771 | 1,772 | 1,773 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,373 | $ 2,027 | $ 2,745 | $ 2,268 |
Foreign currency translation adjustments, net of tax expense (benefit) of $(4) for the three months and $(24) the six months ended June 30, 2024 and $(6) for the three months and $6 six months ended June 30, 2023 | (157) | (16) | (553) | 178 |
Net investment hedging activities, net of tax expense (benefit) of $23 for the three months and $80 for the six months ended June 30, 2024 and $2 for the three months and $(58) six months ended June 30, 2023 | 84 | 11 | 291 | (213) |
Pension and post-employment benefits, net of tax expense (benefit) of $3 for the three months and $4 for the six months ended June 30, 2024 and $(4) for the three months and $10 for the six months ended June 30, 2023 | 8 | (2) | 18 | 36 |
Cash flow hedging activities, net of tax expense (benefit) of $(2) for the three months and $5 for the six months ended June 30, 2024 and $(4) for the three months and $(8) for the six months ended June 30, 2023 | 6 | (13) | 36 | (54) |
Other comprehensive loss | (59) | (20) | (208) | (53) |
Comprehensive income | 1,314 | 2,007 | 2,537 | 2,215 |
Comprehensive income attributable to noncontrolling interest | 3 | 3 | 6 | 5 |
Comprehensive income attributable to AbbVie Inc. | $ 1,311 | $ 2,004 | $ 2,531 | $ 2,210 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||||
Foreign currency translation adjustments, tax expense (benefit) | $ (4) | $ (6) | $ (24) | $ 6 |
Net investment hedging activities, tax expense (benefit) | 23 | 2 | 80 | (58) |
Pension and post-employment benefits, tax expense (benefit) | 3 | (4) | 4 | 10 |
Cash flow hedging activities, tax expense (benefit) | $ (2) | $ (4) | $ 5 | $ (8) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and equivalents | $ 13,130 | $ 12,814 |
Short-term investments | 27 | 2 |
Accounts receivable, net | 11,724 | 11,155 |
Inventories | 4,218 | 4,099 |
Prepaid expenses and other | 4,717 | 4,932 |
Total current assets | 33,816 | 33,002 |
Investments | 272 | 304 |
Property and equipment, net | 5,023 | 4,989 |
Intangible assets, net | 60,243 | 55,610 |
Goodwill | 33,386 | 32,293 |
Other assets | 9,197 | 8,513 |
Total assets | 141,937 | 134,711 |
Current liabilities | ||
Current portion of long-term debt and finance lease obligations | 12,586 | 7,191 |
Accounts payable and accrued liabilities | 29,329 | 30,650 |
Total current liabilities | 41,915 | 37,841 |
Long-term debt and finance lease obligations | 58,048 | 52,194 |
Deferred income taxes | 2,726 | 1,952 |
Other long-term liabilities | 32,427 | 32,327 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,830,226,561 shares issued as of June 30, 2024 and 1,823,046,087 as of December 31, 2023 | 18 | 18 |
Common stock held in treasury, at cost, 64,283,710 shares as of June 30, 2024 and 57,105,354 as of December 31, 2023 | (7,838) | (6,533) |
Additional paid-in capital | 20,879 | 20,180 |
Accumulated deficit | (3,768) | (1,000) |
Accumulated other comprehensive loss | (2,513) | (2,305) |
Total stockholders' equity | 6,778 | 10,360 |
Noncontrolling interest | 43 | 37 |
Total equity | 6,821 | 10,397 |
Total liabilities and equity | $ 141,937 | $ 134,711 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 1,830,226,561 | 1,823,046,087 |
Treasury Stock, Common, Shares | 64,283,710 | 57,105,354 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock | Treasury Stock, Common | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interest |
Beginning balance at Dec. 31, 2022 | $ 17,287 | $ 18 | $ (4,594) | $ 19,245 | $ 4,784 | $ (2,199) | $ 33 |
Beginning balance (in shares) at Dec. 31, 2022 | 1,769 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 2,263 | $ 0 | 0 | 0 | 2,263 | 0 | 0 |
Other comprehensive income (loss), net of tax | (53) | 0 | 0 | 0 | 0 | (53) | 0 |
Dividends declared | (5,258) | 0 | 0 | 0 | (5,258) | 0 | 0 |
Purchases of treasury stock | (1,965) | $ 0 | (1,965) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (12) | ||||||
Stock-based compensation plans and other | 625 | $ 0 | 31 | 594 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 8 | ||||||
Change in noncontrolling interest | (1) | $ 0 | 0 | 0 | 0 | 0 | (1) |
Ending balance at Jun. 30, 2023 | 12,898 | $ 18 | (6,528) | 19,839 | 1,789 | (2,252) | 32 |
Ending balance (in shares) at Jun. 30, 2023 | 1,765 | ||||||
Beginning balance at Mar. 31, 2023 | 13,303 | $ 18 | (6,524) | 19,619 | 2,393 | (2,232) | 29 |
Beginning balance (in shares) at Mar. 31, 2023 | 1,764 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 2,024 | $ 0 | 0 | 0 | 2,024 | 0 | 0 |
Other comprehensive income (loss), net of tax | (20) | 0 | 0 | 0 | 0 | (20) | 0 |
Dividends declared | (2,628) | 0 | 0 | 0 | (2,628) | 0 | 0 |
Purchases of treasury stock | (10) | $ 0 | (10) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | 0 | ||||||
Stock-based compensation plans and other | 226 | $ 0 | 6 | 220 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 1 | ||||||
Change in noncontrolling interest | 3 | $ 0 | 0 | 0 | 0 | 0 | 3 |
Ending balance at Jun. 30, 2023 | 12,898 | $ 18 | (6,528) | 19,839 | 1,789 | (2,252) | 32 |
Ending balance (in shares) at Jun. 30, 2023 | 1,765 | ||||||
Beginning balance at Dec. 31, 2023 | 10,397 | $ 18 | (6,533) | 20,180 | (1,000) | (2,305) | 37 |
Beginning balance (in shares) at Dec. 31, 2023 | 1,766 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 2,739 | $ 0 | 0 | 0 | 2,739 | 0 | 0 |
Other comprehensive income (loss), net of tax | (208) | 0 | 0 | 0 | 0 | (208) | 0 |
Dividends declared | (5,507) | 0 | 0 | 0 | (5,507) | 0 | 0 |
Purchases of treasury stock | (1,333) | $ 0 | (1,333) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (7) | ||||||
Stock-based compensation plans and other | 727 | $ 0 | 28 | 699 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 7 | ||||||
Change in noncontrolling interest | 6 | $ 0 | 0 | 0 | 0 | 0 | 6 |
Ending balance at Jun. 30, 2024 | 6,821 | $ 18 | (7,838) | 20,879 | (3,768) | (2,513) | 43 |
Ending balance (in shares) at Jun. 30, 2024 | 1,766 | ||||||
Beginning balance at Mar. 31, 2024 | 8,047 | $ 18 | (7,829) | 20,656 | (2,384) | (2,454) | 40 |
Beginning balance (in shares) at Mar. 31, 2024 | 1,766 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings attributable to AbbVie Inc. | 1,370 | $ 0 | 0 | 0 | 1,370 | 0 | 0 |
Other comprehensive income (loss), net of tax | (59) | 0 | 0 | 0 | 0 | (59) | 0 |
Dividends declared | (2,754) | 0 | 0 | 0 | (2,754) | 0 | 0 |
Purchases of treasury stock | (9) | $ 0 | (9) | 0 | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | 0 | ||||||
Stock-based compensation plans and other | 223 | $ 0 | 0 | 223 | 0 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 0 | ||||||
Change in noncontrolling interest | 3 | $ 0 | 0 | 0 | 0 | 0 | 3 |
Ending balance at Jun. 30, 2024 | $ 6,821 | $ 18 | $ (7,838) | $ 20,879 | $ (3,768) | $ (2,513) | $ 43 |
Ending balance (in shares) at Jun. 30, 2024 | 1,766 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Net earnings | $ 2,745 | $ 2,268 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Depreciation | 367 | 369 |
Amortization of intangible assets | 3,838 | 4,018 |
Deferred income taxes | (405) | (635) |
Change in fair value of contingent consideration liabilities | 2,136 | 3,424 |
Payment for Contingent Consideration Liability, Operating Activities | (876) | (16) |
Stock-based compensation | 566 | 492 |
Acquired IPR&D and milestones | 1,101 | 430 |
Non-cash litigation reserve adjustments, net of cash payments | 27 | (118) |
Impairment of intangible assets | 0 | 710 |
Other, net | (53) | (173) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (524) | (275) |
Inventories | (127) | (458) |
Prepaid expenses and other assets | 309 | 285 |
Accounts payable and other liabilities | (1,337) | 1,123 |
Income tax assets and liabilities, net | (1,456) | (932) |
Cash flows from operating activities | 6,311 | 10,512 |
Cash flows from investing activities | ||
Payments to Acquire Businesses, Net of Cash Acquired | (9,199) | |
Other acquisitions and investments | (1,033) | (513) |
Acquisitions of property and equipment | (434) | (353) |
Purchases of investment securities | (22) | (35) |
Sales and maturities of investment securities | 9 | 36 |
Other, net | (11) | 25 |
Cash flows from investing activities | (10,690) | (840) |
Cash flows from financing activities | ||
Proceeds from Short-Term Debt | 5,008 | 0 |
Repayments of other short-term borrowings | (5,008) | 0 |
Proceeds from issuance of long-term debt | 14,963 | |
Repayments of long-term debt and finance lease obligations | (3,448) | (2,353) |
Payments of Debt Issuance Costs | (99) | 0 |
Dividends paid | (5,522) | (5,286) |
Purchases of treasury stock | (1,333) | (1,965) |
Proceeds from the exercise of stock options | 137 | 113 |
Payments of contingent consideration liabilities | 0 | (641) |
Other, net | 24 | 20 |
Cash flows from financing activities | 4,722 | (10,112) |
Effect of exchange rate changes on cash and equivalents | (27) | (2) |
Net change in cash and equivalents | 316 | (442) |
Cash and equivalents, beginning of period | 12,814 | 9,201 |
Cash and equivalents, end of period | $ 13,130 | $ 8,759 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Historical Presentation The unaudited interim condensed consolidated financial statements of AbbVie Inc. (AbbVie or the company) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements and notes included in the company’s Annual Report on Form 10-K for the year ended December 31, 2023. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of the company’s financial position and operating results. Net revenues and net earnings for any interim period are not necessarily indicative of future or annual results. Certain other reclassifications were made to conform the prior period interim condensed consolidated financial statements to the current period presentation. On February 12, 2024, AbbVie completed its previously announced acquisition of ImmunoGen, Inc. (ImmunoGen). Refer to Note 4 and Note 8 for additional information regarding this acquisition. 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 - Improvements to Income Tax Disclosures (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 | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Financial Information | |
Supplemental Financial Information | Supplemental Financial Information Interest Expense, Net Three months ended Six months ended (in millions) 2024 2023 2024 2023 Interest expense $ 726 $ 552 $ 1,386 $ 1,105 Interest income (220) (98) (427) (197) Interest expense, net $ 506 $ 454 $ 959 $ 908 Inventories (in millions) June 30, December 31, Finished goods $ 1,189 $ 1,356 Work-in-process 1,930 1,643 Raw materials 1,099 1,100 Inventories $ 4,218 $ 4,099 Property and Equipment, Net (in millions) June 30, December 31, Property and equipment, gross $ 11,903 $ 11,635 Accumulated depreciation (6,880) (6,646) Property and equipment, net $ 5,023 $ 4,989 Depreciation expense was $184 million for the three months and $367 million for the six months ended June 30, 2024 and $190 million for the three months and $369 million for the six months ended June 30, 2023. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share AbbVie grants certain restricted stock units (RSUs) that are considered to be participating securities. Due to the presence of participating securities, AbbVie calculates earnings per share (EPS) using the more dilutive of the treasury stock or the two-class method. For all periods presented, the two-class method was more dilutive. The following table summarizes the impact of the two-class method: Three months ended Six months ended (in millions, except per share data) 2024 2023 2024 2023 Basic EPS Net earnings attributable to AbbVie Inc. $ 1,370 $ 2,024 $ 2,739 $ 2,263 Earnings allocated to participating securities 10 11 20 22 Earnings available to common shareholders $ 1,360 $ 2,013 $ 2,719 $ 2,241 Weighted-average basic shares outstanding 1,768 1,767 1,769 1,768 Basic earnings per share attributable to AbbVie Inc. $ 0.77 $ 1.14 $ 1.54 $ 1.27 Diluted EPS Net earnings attributable to AbbVie Inc. $ 1,370 $ 2,024 $ 2,739 $ 2,263 Earnings allocated to participating securities 10 11 20 22 Earnings available to common shareholders $ 1,360 $ 2,013 $ 2,719 $ 2,241 Weighted-average shares of common stock outstanding 1,768 1,767 1,769 1,768 Effect of dilutive securities 3 4 3 5 Weighted-average diluted shares outstanding 1,771 1,771 1,772 1,773 Diluted earnings per share attributable to AbbVie Inc. $ 0.77 $ 1.14 $ 1.53 $ 1.26 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 Oth
Licensing, Acquisitions and Other Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Licensing, Acquisitions, and Other Arrangements | |
Licensing, Acquisitions, and Other Arrangements | Licensing, Acquisitions and Other Arrangements Acquisition of Cerevel Therapeutics Holdings, Inc. Subsequent to June 30, 2024, on August 1, 2024, AbbVie completed its previously announced acquisition of Cerevel Therapeutics Holdings, Inc. (Cerevel Therapeutics). Under the terms of the agreement, AbbVie acquired all outstanding shares of Cerevel Therapeutics for $45.00 per share in cash for a total value of approximately $8.7 billion. 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. Due to the proximity of the closing date of the acquisition to the date of filing this Quarterly Report on Form 10-Q, 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 Cerevel Therapeutics will be included in the consolidated financial statements beginning in the third quarter of 2024. Acquisition of ImmunoGen, Inc. On February 12, 2024, AbbVie completed its previously announced acquisition of ImmunoGen. 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. The combination accelerates AbbVie’s entry into the solid tumor space and strengthens its oncology pipeline. Under the terms of the agreement, AbbVie acquired all outstanding shares of ImmunoGen for $31.26 per share in cash. The total fair value of the consideration transferred to owners of ImmunoGen common stock was $9.8 billion ($9.2 billion, net of cash acquired). The acquisition of ImmunoGen has been accounted for as a business combination using the acquisition method of accounting. The acquisition method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2024. As a result, AbbVie recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date. Finalization of the valuation during the measurement period could result in a change in the amounts recorded for the acquisition date fair value of intangible assets, goodwill and income taxes among other items. The completion of the valuation will occur no later than one year from the acquisition date. The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date: (in millions) Assets acquired and liabilities assumed Cash and equivalents $ 591 Accounts receivable 171 Inventories 211 Prepaid expenses and other current assets 40 Property and equipment, net 7 Intangible assets, net Developed product rights 7,200 License agreements 125 Acquired in-process research and development 1,280 Other noncurrent assets 273 Current portion of long-term debt (99) Accounts payable and accrued liabilities (312) Deferred income taxes (899) Other long-term liabilities (47) Total identifiable net assets 8,541 Goodwill 1,249 Total assets acquired and liabilities assumed $ 9,790 The fair value step-up adjustment to inventories of $179 million is being amortized to cost of products sold when the inventory is sold to customers, which is expected to be within approximately one year from the acquisition date. Intangible assets relate to $7.3 billion of definite-lived intangible assets and $1.3 billion of acquired in-process research and development (IPR&D) associated with products that have not yet received regulatory approval. The acquired definite-lived intangible assets consist of developed product rights and license agreements and are being amortized over a weighted-average estimated useful life of approximately 12 years using the estimated pattern of economic benefit. The estimated fair values of identifiable intangible assets were determined using the "income approach" which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Some of the more significant assumptions inherent in the development of these asset valuations include the estimated net cash flows for each year for each asset or product, the appropriate discount rate necessary to measure the risk inherent in each future cash flow stream, the life cycle of each asset, the potential regulatory and commercial success risk, competitive trends impacting the asset and each cash flow stream, as well as other factors. Other noncurrent assets primarily consist of $250 million of deferred tax assets. The current portion of long-term debt assumed by AbbVie was repaid concurrent with the acquisition at the fair value of $99 million. See Note 8 for additional information. Goodwill was calculated as the excess of the consideration transferred over the fair value of net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recognized from the acquisition of ImmunoGen represents expected synergies including, the ability to: (i) expand AbbVie’s product portfolio as well as the potential to increase revenue from future growth platforms, (ii) accelerate AbbVie’s clinical and commercial presence in the solid tumor space within oncology, (iii) leverage the respective strengths of each company, and (iv) enhance AbbVie’s existing ADC development efforts. The goodwill is not deductible for tax purposes. Following the acquisition date, the operating results of ImmunoGen have been included in the condensed consolidated financial statements. For the period from the acquisition date through June 30, 2024, net revenues attributable to ImmunoGen were $239 million and operating losses attributable to ImmunoGen were $562 million, inclusive of $349 million of cash-settled, post-closing expense for ImmunoGen employee incentive awards, $124 million of inventory fair value step-up amortization and $65 million of intangible asset amortization. AbbVie also issued 0.3 million RSUs to holders of ImmunoGen equity awards based on a conversion factor described in the transaction agreement. Stock compensation expense related to RSUs issued at the acquisition date was not significant. Acquisition-related expenses, which were comprised primarily of regulatory, financial advisory and legal fees, totaled $59 million for the six months ended June 30, 2024 and were included in selling, general and administrative (SG&A) expense in the condensed consolidated statements of earnings . Pro Forma Financial Information The following table presents the unaudited pro forma combined results of AbbVie and ImmunoGen for the three and six months ended June 30, 2024 and 2023 as if the acquisition of ImmunoGen had occurred on January 1, 2023: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Net revenues $ 14,462 $ 13,948 $ 26,827 $ 26,223 Net earnings 1,422 1,861 3,158 1,444 The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of AbbVie and ImmunoGen. In order to reflect the occurrence of the acquisition on January 1, 2023 as required, the unaudited pro forma financial information includes adjustments to reflect incremental amortization expense to be incurred based on the current preliminary fair values of the identifiable intangible assets acquired; the incremental cost of products sold related to the fair value adjustments associated with acquisition date inventory; the additional interest expense associated with the issuance of debt to finance the acquisition; and the reclassification of acquisition-related costs incurred during the three and six months ended June 30, 2024 to the six months ended June 30, 2023. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2023. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. Other Licensing & Acquisitions Activity Cash outflows related to other acquisitions and investments totaled $1.0 billion for the six months ended June 30, 2024 and $513 million for the six months ended June 30, 2023. The following table summarizes acquired IPR&D and milestones expense: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Upfront charges $ 927 $ 220 $ 1,006 $ 352 Development milestones 10 60 95 78 Acquired IPR&D and milestones $ 937 $ 280 $ 1,101 $ 430 Celsius Therapeutics, Inc. In June 2024, AbbVie acquired Celsius Therapeutics, Inc. (Celsius Therapeutics) including its lead pipeline asset CEL383. Celsius Therapeutics is a clinical-stage biotechnology company focused on the discovery and development of precision medicine in inflammatory bowel disease. The transaction was accounted as an asset acquisition as CEL383 represented substantially all of the fair value of the gross assets acquired. The upfront payment of $250 million was recorded in acquired IPR&D and milestones expense in the condensed consolidated statement of earnings in the second quarter of 2024. |
Collaborations
Collaborations | 6 Months Ended |
Jun. 30, 2024 | |
Collaborative Arrangements [Abstract] | |
Collaborations | Collaborations The company has ongoing transactions with other entities through collaboration agreements. The following represent the significant collaboration agreements impacting the periods ended June 30, 2024 and 2023. 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: Three months ended Six months ended (in millions) 2024 2023 2024 2023 United States - Janssen's share of profits (included in cost of products sold) $ 284 $ 312 $ 567 $ 609 International - AbbVie's share of profits (included in net revenues) 238 241 466 481 Global - AbbVie's share of other costs (included in respective line items) 40 57 82 112 AbbVie’s receivable from Janssen, included in accounts receivable, net, was $256 million at June 30, 2024 and $236 million at December 31, 2023. AbbVie’s payable to Janssen, included in accounts payable and accrued liabilities, was $270 million at June 30, 2024 and $307 million at December 31, 2023. 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 research and development (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: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Genentech's share of profits, including royalties (included in cost of products sold) $ 243 $ 214 $ 470 $ 416 AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) 6 8 15 19 AbbVie's share of development costs (included in R&D) 23 30 42 58 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 $ 32,293 Additions (a) 1,249 Foreign currency translation adjustments (156) Balance as of June 30, 2024 $ 33,386 (a) Goodwill additions related to the acquisition of ImmunoGen (see Note 4). The company performs its annual goodwill impairment assessment in the third quarter, or earlier if impairment indicators exist. As of June 30, 2024, there were no accumulated goodwill impairment losses. Intangible Assets, Net The following table summarizes intangible assets: June 30, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 81,497 $ (25,051) $ 56,446 $ 75,142 $ (22,455) $ 52,687 License agreements 8,315 (6,098) 2,217 8,191 (5,571) 2,620 Total definite-lived intangible assets 89,812 (31,149) 58,663 83,333 (28,026) 55,307 Indefinite-lived intangible assets 1,580 — 1,580 303 — 303 Total intangible assets, net $ 91,392 $ (31,149) $ 60,243 $ 83,636 $ (28,026) $ 55,610 Definite-Lived Intangible Assets The increase in definite-lived intangible assets during 2024 was primarily due to the acquisition of ImmunoGen. The intangible assets will be amortized using the estimated pattern of economic benefit. Refer to Note 4 for additional information regarding the acquisition. Amortization expense was $1.9 billion for the three months and $3.8 billion for the six months ended June 30, 2024 and $2.1 billion for the three months and $4.0 billion for the six months ended June 30, 2023. Amortization expense was included in cost of products sold in the condensed consolidated statements of earnings. 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. The increase in indefinite-lived intangible assets during 2024 was primarily due to the acquisition of ImmunoGen. Refer to Note 4 for additional information regarding the acquisition. research and development expense |
Restructuring Plans
Restructuring Plans | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Integration and Restructuring Plans | Restructuring Plans 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. As of June 30, 2024 and 2023, no such plans were individually significant. Restructuring charges were $49 million for the three months and $64 million for the six months ended June 30, 2024 and $18 million for the three months and $45 million for the six months ended June 30, 2023. These charges are recorded in cost of products sold, R&D expense and SG&A expense in the condensed consolidated statements of earnings based on the classification of the affected employees or the related operations. The following table summarizes the cash activity in the restructuring reserve for the six months ended June 30, 2024: (in millions) Accrued balance as of December 31, 2023 $ 196 Restructuring charges 63 Payments and other adjustments (77) Accrued balance as of June 30, 2024 $ 182 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 December 31, 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 ex penses. The Allergan integration plan was substantially complete as of December 31, 2023 and the remaining accrual as of June 30, 2024 is not significant. The following table summarizes the prior year charges associated with the Allergan acquisition integration plan: (in millions) Three Months Ended Six Months Ended Cost of products sold $ 32 $ 46 Research and development 1 1 Selling, general and administrative 51 95 Total charges $ 84 $ 142 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measures | Financial Instruments and Fair Value Measures Risk Management Policy See Note 11 to the company’s Annual Report on Form 10-K for the year ended December 31, 2023 for a summary of AbbVie’s risk management policy and use of derivative instruments. Financial Instruments Various AbbVie foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany transactions denominated in a currency other than the functional currency of the local entity. These contracts, with notional amounts totaling $1.3 billion at June 30, 2024 and $1.8 billion at December 31, 2023, are designated as cash flow hedges and are recorded at fair value. The durations of these forward exchange contracts were generally less than 18 months. Accumulated gains and losses as of June 30, 2024 are reclassified from accumulated other comprehensive income (loss) (AOCI) and included in cost of products sold at the time the products are sold, generally not exceeding six months from the date of settlement. In 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 recognized in AOCI. This gain is reclassified to interest expense, net over the term of the related 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 gain or loss in the condensed consolidated statements of earnings and are generally offset by losses or gains on the foreign currency exposure being managed. These contracts had notional amounts totaling $8.6 billion at June 30, 2024 and $7.9 billion at December 31, 2023. 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 €3.2 billion at June 30, 2024 and €5.4 billion at December 31, 2023. In addition, the company had foreign currency forward exchange contracts designated as net investment hedges with notional amounts totaling €7.1 billion, SEK1.9 billion, CAD750 million and CHF70 million at June 30, 2024 and €4.9 billion, SEK1.4 billion, CAD750 million and CHF50 million at December 31, 2023. 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 $3.5 billion at June 30, 2024 and $5.0 billion at December 31, 2023. The effect of the hedge contracts is to change a fixed-rate interest obligation to a floating rate for that portion of the debt. AbbVie records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount. No amounts are excluded from the assessment of effectiveness for cash flow hedges or fair value hedges. The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets: Fair value – Fair value – (in millions) Balance sheet caption June 30, December 31, Balance sheet caption June 30, December 31, Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 21 $ 12 Accounts payable and accrued liabilities $ 2 $ 32 Designated as cash flow hedges Other assets 1 — Other long-term liabilities — — Designated as net investment hedges Prepaid expenses and other 78 13 Accounts payable and accrued liabilities 17 66 Designated as net investment hedges Other assets 55 — Other long-term liabilities 4 69 Not designated as hedges Prepaid expenses and other 37 41 Accounts payable and accrued liabilities 14 36 Interest rate swap contracts Designated as fair value hedges Other assets — — Other long-term liabilities 304 293 Total derivatives $ 192 $ 66 $ 341 $ 496 While certain derivatives are subject to netting arrangements with the company’s counterparties, the company does not offset derivative assets and liabilities within the condensed consolidated balance sheets. The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive loss: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Foreign currency forward exchange contracts Designated as cash flow hedges $ 20 $ 14 $ 75 $ 5 Designated as net investment hedges 88 6 222 (88) Cross-currency swap contracts designated as cash flow hedges — 9 — 9 Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax gains of $55 million into cost of products sold for foreign currency cash flow hedges and pre-tax gains of $22 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 loss pre-tax gains of $50 million for the three months and $207 million for the six months ended June 30, 2024 and pre-tax gains of $36 million for the three months and pre-tax losses of $126 million for the six months ended June 30, 2023. The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI. Three months ended Six months ended (in millions) Statement of earnings caption 2024 2023 2024 2023 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 10 $ 26 $ 22 $ 56 Designated as net investment hedges Interest expense, net 31 29 58 57 Not designated as hedges Net foreign exchange loss 34 4 16 34 Treasury rate lock agreements designated as cash flow hedges Interest expense, net 6 6 12 12 Cross-currency swap contracts designated as cash flow hedges Net foreign exchange loss — 8 — 8 Interest rate swap contracts Designated as fair value hedges Interest expense, net 54 (21) (11) 14 Debt designated as hedged item in fair value hedges Interest expense, net (54) 21 11 (14) Fair Value Measures The fair value hierarchy consists of the following three levels: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access; • Level 2 – Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and • Level 3 – Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company’s management about the assumptions market participants would use in pricing the asset or liability. The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of June 30, 2024: 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 $ 13,130 $ 6,770 $ 6,360 $ — Money market funds and time deposits 10 — 10 — Debt securities 32 — 32 — Equity securities 97 69 28 — Foreign currency contracts 192 — 192 — Total assets $ 13,461 $ 6,839 $ 6,622 $ — Liabilities Interest rate swap contracts $ 304 $ — $ 304 $ — Foreign currency contracts 37 — 37 — Contingent consideration 21,150 — — 21,150 Total liabilities $ 21,491 $ — $ 341 $ 21,150 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of December 31, 2023: 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 $ 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 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: June 30, 2024 December 31, 2023 Range Weighted average (a) Range Weighted average (a) Discount rate 4.8% - 5.9% 5.0% 4.3% - 5.9% 4.5% Probability of payment for royalties by indication (b) 89% - 100% 100% 89% - 100% 99% Projected year of payments 2024 - 2034 2029 2024 - 2034 2027 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) Excluding approved indications, the estimated probability of payment was 89% at June 30, 2024 and December 31, 2023. 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 total contingent consideration liabilities which are measured using Level 3 inputs: Six months ended (in millions) 2024 2023 Beginning balance $ 19,890 $ 16,384 Change in fair value recognized in net earnings 2,136 3,424 Payments (876) (657) Ending balance $ 21,150 $ 19,151 The change in fair value recognized in net earnings is recorded in other expense, net in the condensed consolidated statements of earnings. 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 condensed 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 June 30, 2024 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant other Significant unobservable inputs Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 12,569 $ 12,388 $ 12,244 $ 144 $ — Long-term debt and finance lease obligations, excluding fair value hedges 58,352 54,084 53,678 406 — Total liabilities $ 70,921 $ 66,472 $ 65,922 $ 550 $ — 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 value Quoted prices in active markets for identical assets Significant other 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 $ — 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 $160 million as of June 30, 2024 and $159 million as of December 31, 2023. No significant cumulative upward or downward adjustments have been recorded for these investments as of June 30, 2024. Concentrations of Risk Of total net accounts receivable, three U.S. wholesalers accounted for 77% as of June 30, 2024 and 81% as of December 31, 2023, and substantially all of AbbVie’s pharmaceutical product net revenues in the United States were to these three wholesalers. Debt and Credit Facilities Financing Related to ImmunoGen and Cerevel Therapeutics Acquisitions In connection with the acquisitions of ImmunoGen and Cerevel Therapeutics, in February, 2024, the company issued $15.0 billion aggregate principal amount of unsecured senior notes. The notes are unsecured, unsubordinated obligations of AbbVie and will rank equally in right of payment with all of AbbVie’s existing and future unsecured, unsubordinated indebtedness, liabilities and other obligations. AbbVie may redeem the fixed-rate senior notes prior to maturity at a redemption price equal to the greater of the principal amount or the sum of present values of the remaining scheduled payments of principal and interest on the fixed-rate senior notes to be redeemed plus a make-whole premium. AbbVie may also redeem the fixed-rate senior notes at par between one and six months prior to maturity. In connection with the offering, debt issuance costs incurred totaled $99 million and debt discounts totaled $37 million, which are being amortized over the respective terms of the notes to interest expense, net in the condensed consolidated statements of earnings. AbbVie used the net proceeds received from the issuance of the notes to finance the acquisition of ImmunoGen, repay its term-loan, repay commercial paper borrowings, pay fees and expenses in respect of the foregoing, finance general corporate purposes and, together with cash on hand, fund AbbVie’s acquisition of Cerevel Therapeutics. See Note 4 for additional information. The following table summarizes issued debt in connection with the acquisitions of ImmunoGen and Cerevel Therapeutics: (in millions) Senior Notes 4.80% Senior Notes due 2027 $ 2,250 4.80% Senior Notes due 2029 2,500 4.95% Senior Notes due 2031 2,000 5.05% Senior Notes due 2034 3,000 5.35% Senior Notes due 2044 750 5.40% Senior Notes due 2054 3,000 5.50% Senior Notes due 2064 1,500 Total debt issued $ 15,000 In December 2023, AbbVie entered into a $9.0 billion 364-day bridge credit agreement and $5.0 billion 364-day term loan credit agreement. In February, 2024, AbbVie borrowed and repaid $5.0 billion under the term loan credit agreement. Interest charged on this borrowing was based on Secured Overnight Financing Rate Reference Rate (SOFR) +0.975% with an effective interest rate of 6.29%. Subsequent to the $15.0 billion issuance of senior notes, AbbVie terminated both the bridge and term loan credit agreements in the first quarter of 2024. In February 2024, concurrent with the acquisition, the company assumed and repaid an ImmunoGen senior secured term loan at a fair value of $99 million. Long-Term Debt Repayments In May 2024, the company repaid a €1.5 billion aggregate principal amount of 1.38% senior euro notes at maturity. In June 2024, the company repaid a €700 million aggregate principal amount of 1.25% senior euro notes and $1.0 billion aggregate principal amount of 3.85% senior notes at maturity. In January 2023, the company repaid a $1.0 billion floating rate three-year term loan that was scheduled to mature in May 2023. In March 2023, the company repaid a $350 million aggregate principal amount of 2.80% senior notes at maturity. In May 2023, the company repaid $1.0 billion aggregate principal amount of 2.85% senior notes at maturity. Short-Term Borrowings During the six months ended June 30, 2024, the company issued and redeemed $1.7 billion of commercial paper. There were no commercial paper borrowings outstanding as of June 30, 2024 and December 31, 2023. The weighted average interest rate on commercial paper borrowings was 5.54% for the six months ended June 30, 2024. 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 June 30, 2024, 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 June 30, 2024 and December 31, 2023. |
Post-Employment Benefits
Post-Employment Benefits | 6 Months Ended |
Jun. 30, 2024 | |
Postemployment Benefits [Abstract] | |
Post-Employment Benefits | Post-Employment Benefits The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined Other post- Three months ended Six months ended Three months ended Six months ended (in millions) 2024 2023 2024 2023 2024 2023 2024 2023 Service cost $ 71 $ 67 $ 143 $ 135 $ 10 $ 10 $ 21 $ 18 Interest cost 113 109 226 216 11 10 21 19 Expected return on plan assets (196) (182) (393) (362) — — — — Amortization of prior service cost (credit) — 1 — 1 (9) (9) (18) (18) Amortization of actuarial loss 13 4 26 8 5 3 9 6 Net periodic benefit cost $ 1 $ (1) $ 2 $ (2) $ 17 $ 14 $ 33 $ 25 The components of net periodic benefit cost other than service cost are included in other expense, net in the condensed consolidated statements of earnings. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Stock-Based Compensation Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and the AbbVie Amended and Restated 2013 Incentive Stock Program and is summarized as follows: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Cost of products sold $ 10 $ 9 $ 32 $ 29 Research and development 74 57 207 174 Selling, general and administrative 134 113 327 289 Pre-tax compensation expense 218 179 566 492 Tax benefit (34) (30) (94) (85) After-tax compensation expense $ 184 $ 149 $ 472 $ 407 In addition to stock-based compensation expense included in the table above and in connection with the acquisition of ImmunoGen, AbbVie incurred $349 million of cash-settled, post-closing expense for ImmunoGen employee incentive awards, of which $192 million was recorded in SG&A expenses, $126 million was recorded in R&D expenses and $31 million was recorded in cost of products sold in the condensed consolidated statements of earnings for the six months ended June 30, 2024. Refer to Note 4 for additional information regarding the ImmunoGen acquisition. Stock Options During the six months ended June 30, 2024, primarily in connection with the company's annual grant, AbbVie granted 0.6 million stock options with a weighted-average grant-date fair value of $31.53. As of June 30, 2024, $9 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years. RSUs and Performance Shares During the six months ended June 30, 2024, primarily in connection with the company's annual grant, AbbVie granted 5.0 million RSUs and performance shares with a weighted-average grant-date fair value of $176.13. In connection with the ImmunoGen acquisition, during the first quarter of 2024, AbbVie issued 0.3 million RSUs to holders of ImmunoGen equity awards based on a conversion factor described in the transaction agreement. Refer to Note 4 for additional information regarding the ImmunoGen acquisition. As of June 30, 2024, $840 million of unrecognized compensation cost related to RSUs and performance shares is expected to be recognized as expense over approximately the next two years. Cash Dividends The following table summarizes quarterly cash dividends declared during 2024 and 2023: 2024 2023 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 02/15/24 05/15/24 $ 1.55 10/26/23 02/15/24 $ 1.55 06/21/24 08/15/24 $ 1.55 09/08/23 11/15/23 $ 1.48 06/22/23 08/15/23 $ 1.48 02/16/23 05/15/23 $ 1.48 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 5 million shares for $959 million during the six months ended June 30, 2024 and 10 million shares for $1.6 billion during the six months ended June 30, 2023. AbbVie's remaining stock repurchase authorization was approximately $3.9 billion as of June 30, 2024. Accumulated Other Comprehensive Loss The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2024: (in millions) Foreign currency Net investment hedging activities Pension and post-employment Cash flow hedging Total Balance as of December 31, 2023 $ (1,106) $ 65 $ (1,488) $ 224 $ (2,305) Other comprehensive income (loss) before reclassifications (553) 336 5 62 (150) Net losses (gains) reclassified from accumulated other comprehensive loss — (45) 13 (26) (58) Net current-period other comprehensive income (loss) (553) 291 18 36 (208) Balance as of June 30, 2024 $ (1,659) $ 356 $ (1,470) $ 260 $ (2,513) Other comprehensive loss for the six months ended June 30, 2024 included foreign currency translation adjustments totaling a loss of $553 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 a gain of $291 million. The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2023: (in millions) Foreign currency Net investment hedging activities Pension Cash flow hedging Total Balance as of December 31, 2022 $ (1,513) $ 464 $ (1,458) $ 308 $ (2,199) Other comprehensive income (loss) before reclassifications 178 (168) 39 8 57 Net gains reclassified from accumulated other comprehensive loss — (45) (3) (62) (110) Net current-period other comprehensive income (loss) 178 (213) 36 (54) (53) Balance as of June 30, 2023 $ (1,335) $ 251 $ (1,422) $ 254 $ (2,252) Other comprehensive loss for the six months ended June 30, 2023 included foreign currency translation adjustments totaling a gain of $178 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 a loss of $213 million. The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended Six months ended (in millions) (brackets denote gains) 2024 2023 2024 2023 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (31) $ (29) $ (58) $ (57) Tax expense 7 6 13 12 Total reclassifications, net of tax $ (24) $ (23) $ (45) $ (45) Pension and post-employment benefits Amortization of actuarial losses (gains) and other (b) $ 9 $ (1) $ 17 $ (3) Tax benefit (3) — (4) — Total reclassifications, net of tax $ 6 $ (1) $ 13 $ (3) Cash flow hedging activities Gains on foreign currency forward exchange contracts (c) $ (10) $ (26) $ (22) $ (56) Gains on treasury rate lock agreements (a) (6) (6) (12) (12) Gains on cross-currency swap contracts (d) — (8) — (8) Tax expense 4 9 8 14 Total reclassifications, net of tax $ (12) $ (31) $ (26) $ (62) (a) Amounts are included in interest expense, net (see Note 8). (b) Amounts are included in the computation of net periodic benefit cost (see Note 9). (c) Amounts are included in cost of products sold (see Note 8). (d) Amounts are included in net foreign exchange loss (see Note 8). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 36% for the three months and 30% for the six months ended June 30, 2024 compared to 22% for the three months and 26% for the six months ended June 30, 2023. The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to the impact of foreign operations which reflects the impact of lower income tax rates in locations outside the United States, changes in fair value of contingent consideration and business development activities, including ImmunoGen acquisition-related costs. The increase in the effective tax rate for the three months ended June 30, 2024 over the prior year was primarily due to business development activities. The increase in the effective tax rate for the six months ended June 30, 2024 over the prior year was primarily due to business development activities in the current period, offset by decreased changes in fair value of contingent consideration and impairment of certain intangible assets in the prior period. It is reasonably possible that the company’s gross unrecognized tax benefits balance may change within the next 12 months by up to $162 million. The company has various federal, state and foreign examinations ongoing. Finalizing examinations with the relevant taxing authorities can include formal administrative and legal proceedings, and as a result, we cannot reasonably estimate the timing of resolution for certain unrecognized tax benefits. |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 federal multi-district litigation (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. In May 2024, the United States Court of Appeals for the Second Circuit affirmed that dismissal. Government Proceedings Lawsuits are pending against Allergan and several other manufacturers generally alleging that they improperly promoted and sold prescription opioid products. Approximately 460 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 52 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 460 lawsuits, approximately 45 of them are brought by states, counties, cities, and other municipal entities, approximately 25 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. 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. Lawsuits are pending against various Allergan entities in the United States and other countries including Brazil, Canada, South Korea, and the Netherlands, in which plaintiffs generally allege that they developed, or may develop, breast implant-associated anaplastic large cell lymphoma (ALCL) or other injuries from Allergan’s Biocell® textured breast implants, which were voluntarily withdrawn from worldwide markets in 2019. Approximately 130 ALCL lawsuits and 1,000 other lawsuits are coordinated for pre-trial purposes in the United States District Court for the District of New Jersey under the MDL rules as In re: Allergan Biocell Textured Breast Implant Product Liability Litigation, MDL No. 2921. Approximately 75 ALCL lawsuits and 460 other lawsuits are pending in various state courts. Approximately 50 ALCL and 800 other lawsuits are pending in other countries. Plaintiffs generally seek monetary damages, medical monitoring, and attorneys’ fees. 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, and Sun Pharmaceutical Industries, Ltd. AbbVie alleges defendants’ proposed generic upadacitinib products infringe certain patents and seeks declaratory and injunctive relief. AbbVie Inc. is seeking to enforce patent rights related to ubrogepant (a drug sold under the trademark Ubrelvy). Litigation was filed in the United States District Court for the District of New Jersey in March 2024 against Aurobindo Pharma U.S.A., Inc., Aurobindo Pharma Limited, and Apitoria Pharma Private Limited; Zydus Pharmaceuticals (USA) Inc. and Zydus Lifesciences Limited; MSN Pharmaceuticals Inc., MSN Laboratories Private Limited, and MSN Life Sciences Private Limited; and Hetero USA Inc., Hetero Labs Limited Unit-III, and Hetero Labs Limited. AbbVie alleges defendants’ proposed generic ubrogepant products infringe certain patents and seeks declaratory and injunctive relief. Merck Sharp & Dohme LLC, which exclusively licenses certain patents to AbbVie, is a co-plaintiff in the litigation. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment 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. The following table details AbbVie’s worldwide net revenues: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Immunology Humira United States $ 2,360 $ 3,452 $ 4,131 $ 6,400 International 454 560 953 1,153 Total $ 2,814 $ 4,012 $ 5,084 $ 7,553 Skyrizi United States $ 2,340 $ 1,634 $ 3,996 $ 2,773 International 387 249 739 470 Total $ 2,727 $ 1,883 $ 4,735 $ 3,243 Rinvoq United States $ 1,017 $ 645 $ 1,742 $ 1,094 International 413 273 781 510 Total $ 1,430 $ 918 $ 2,523 $ 1,604 Oncology Imbruvica United States $ 595 $ 666 $ 1,205 $ 1,304 Collaboration revenues 238 241 466 481 Total $ 833 $ 907 $ 1,671 $ 1,785 Venclexta United States $ 300 $ 265 $ 581 $ 530 International 337 306 670 579 Total $ 637 $ 571 $ 1,251 $ 1,109 Elahere (a) United States $ 128 $ — $ 192 $ — Epkinly Collaboration Revenues $ 29 $ — $ 51 $ — International 7 — 12 — Total $ 36 $ — $ 63 $ — Aesthetics Botox Cosmetic United States $ 450 $ 420 $ 839 $ 829 International 279 265 523 515 Total $ 729 $ 685 $ 1,362 $ 1,344 Juvederm Collection United States $ 138 $ 125 $ 244 $ 247 International 205 243 396 476 Total $ 343 $ 368 $ 640 $ 723 Other Aesthetics United States $ 275 $ 284 $ 556 $ 530 International 43 47 81 87 Total $ 318 $ 331 $ 637 $ 617 Neuroscience Botox Therapeutic United States $ 669 $ 614 $ 1,280 $ 1,201 International 145 134 282 266 Total $ 814 $ 748 $ 1,562 $ 1,467 Vraylar United States $ 773 $ 657 $ 1,465 $ 1,217 International 1 1 3 2 Total $ 774 $ 658 $ 1,468 $ 1,219 Three months ended Six months ended (in millions) 2024 2023 2024 2023 Duodopa United States $ 23 $ 24 $ 48 $ 49 International 90 93 180 186 Total $ 113 $ 117 $ 228 $ 235 Ubrelvy United States $ 227 $ 194 $ 424 $ 344 International 4 2 10 4 Total $ 231 $ 196 $ 434 $ 348 Qulipta United States $ 146 $ 95 $ 274 $ 161 International 4 1 7 1 Total $ 150 $ 96 $ 281 $ 162 Other Neuroscience United States $ 57 $ 65 $ 118 $ 140 International 23 5 36 9 Total $ 80 $ 70 $ 154 $ 149 Eye Care Ozurdex United States $ 35 $ 34 $ 69 $ 73 International 89 85 186 161 Total $ 124 $ 119 $ 255 $ 234 Lumigan/Ganfort United States $ 42 $ 51 $ 71 $ 114 International 61 68 123 135 Total $ 103 $ 119 $ 194 $ 249 Alphagan/Combigan United States $ 13 $ 32 $ 28 $ 60 International 36 33 80 76 Total $ 49 $ 65 $ 108 $ 136 Restasis United States $ 18 $ 82 $ 62 $ 161 International 14 17 27 30 Total $ 32 $ 99 $ 89 $ 191 Other Eye Care United States $ 131 $ 110 $ 236 $ 220 International 94 105 189 195 Total $ 225 $ 215 $ 425 $ 415 Other Key Products Mavyret United States $ 167 $ 193 $ 311 $ 364 International 202 194 407 387 Total $ 369 $ 387 $ 718 $ 751 Creon United States $ 372 $ 282 $ 657 $ 587 Linzess/Constella United States $ 211 $ 269 $ 468 $ 520 International 10 9 19 17 Total $ 221 $ 278 $ 487 $ 537 All other $ 810 $ 741 $ 1,554 $ 1,432 Total net revenues $ 14,462 $ 13,865 $ 26,772 $ 26,090 (a) Net revenues include ImmunoGen product revenues after the acquisition closing date of February 12, 2024. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Financial Information | |
Schedule of interest expense, net | Interest Expense, Net Three months ended Six months ended (in millions) 2024 2023 2024 2023 Interest expense $ 726 $ 552 $ 1,386 $ 1,105 Interest income (220) (98) (427) (197) Interest expense, net $ 506 $ 454 $ 959 $ 908 |
Schedule of inventories | Inventories (in millions) June 30, December 31, Finished goods $ 1,189 $ 1,356 Work-in-process 1,930 1,643 Raw materials 1,099 1,100 Inventories $ 4,218 $ 4,099 |
Schedule of property and equipment, net | Property and Equipment, Net (in millions) June 30, December 31, Property and equipment, gross $ 11,903 $ 11,635 Accumulated depreciation (6,880) (6,646) Property and equipment, net $ 5,023 $ 4,989 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share, impact of two-class method | The following table summarizes the impact of the two-class method: Three months ended Six months ended (in millions, except per share data) 2024 2023 2024 2023 Basic EPS Net earnings attributable to AbbVie Inc. $ 1,370 $ 2,024 $ 2,739 $ 2,263 Earnings allocated to participating securities 10 11 20 22 Earnings available to common shareholders $ 1,360 $ 2,013 $ 2,719 $ 2,241 Weighted-average basic shares outstanding 1,768 1,767 1,769 1,768 Basic earnings per share attributable to AbbVie Inc. $ 0.77 $ 1.14 $ 1.54 $ 1.27 Diluted EPS Net earnings attributable to AbbVie Inc. $ 1,370 $ 2,024 $ 2,739 $ 2,263 Earnings allocated to participating securities 10 11 20 22 Earnings available to common shareholders $ 1,360 $ 2,013 $ 2,719 $ 2,241 Weighted-average shares of common stock outstanding 1,768 1,767 1,769 1,768 Effect of dilutive securities 3 4 3 5 Weighted-average diluted shares outstanding 1,771 1,771 1,772 1,773 Diluted earnings per share attributable to AbbVie Inc. $ 0.77 $ 1.14 $ 1.53 $ 1.26 |
Licensing, Acquisitions and O_2
Licensing, Acquisitions and Other Arrangements (Tables) | 6 Months Ended | |
Feb. 12, 2024 | Jun. 30, 2024 | |
Licensing, Acquisitions, and Other Arrangements | ||
Schedule of fair value of assets acquired and liabilities assumed | The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date: (in millions) Assets acquired and liabilities assumed Cash and equivalents $ 591 Accounts receivable 171 Inventories 211 Prepaid expenses and other current assets 40 Property and equipment, net 7 Intangible assets, net Developed product rights 7,200 License agreements 125 Acquired in-process research and development 1,280 Other noncurrent assets 273 Current portion of long-term debt (99) Accounts payable and accrued liabilities (312) Deferred income taxes (899) Other long-term liabilities (47) Total identifiable net assets 8,541 Goodwill 1,249 Total assets acquired and liabilities assumed $ 9,790 | |
Schedule of unaudited pro forma combined results | The following table presents the unaudited pro forma combined results of AbbVie and ImmunoGen for the three and six months ended June 30, 2024 and 2023 as if the acquisition of ImmunoGen had occurred on January 1, 2023: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Net revenues $ 14,462 $ 13,948 $ 26,827 $ 26,223 Net earnings 1,422 1,861 3,158 1,444 | |
Schedule of Research and Development Assets Acquired Other than Through Business Combination | The following table summarizes acquired IPR&D and milestones expense: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Upfront charges $ 927 $ 220 $ 1,006 $ 352 Development milestones 10 60 95 78 Acquired IPR&D and milestones $ 937 $ 280 $ 1,101 $ 430 |
Collaborations (Tables)
Collaborations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Janssen Biotech Inc. | |
Collaborative and license agreements | |
Schedule of profit and cost sharing relationship | The following table shows the profit and cost sharing relationship between Janssen and AbbVie: Three months ended Six months ended (in millions) 2024 2023 2024 2023 United States - Janssen's share of profits (included in cost of products sold) $ 284 $ 312 $ 567 $ 609 International - AbbVie's share of profits (included in net revenues) 238 241 466 481 Global - AbbVie's share of other costs (included in respective line items) 40 57 82 112 |
Genentech, Inc. | |
Collaborative and license agreements | |
Schedule of profit and cost sharing relationship | The following table shows the profit and cost sharing relationship between Genentech and AbbVie: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Genentech's share of profits, including royalties (included in cost of products sold) $ 243 $ 214 $ 470 $ 416 AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) 6 8 15 19 AbbVie's share of development costs (included in R&D) 23 30 42 58 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 $ 32,293 Additions (a) 1,249 Foreign currency translation adjustments (156) Balance as of June 30, 2024 $ 33,386 |
Summary of definite-lived intangible assets | The following table summarizes intangible assets: June 30, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 81,497 $ (25,051) $ 56,446 $ 75,142 $ (22,455) $ 52,687 License agreements 8,315 (6,098) 2,217 8,191 (5,571) 2,620 Total definite-lived intangible assets 89,812 (31,149) 58,663 83,333 (28,026) 55,307 Indefinite-lived intangible assets 1,580 — 1,580 303 — 303 Total intangible assets, net $ 91,392 $ (31,149) $ 60,243 $ 83,636 $ (28,026) $ 55,610 |
Summary of indefinite-lived intangible assets | The following table summarizes intangible assets: June 30, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 81,497 $ (25,051) $ 56,446 $ 75,142 $ (22,455) $ 52,687 License agreements 8,315 (6,098) 2,217 8,191 (5,571) 2,620 Total definite-lived intangible assets 89,812 (31,149) 58,663 83,333 (28,026) 55,307 Indefinite-lived intangible assets 1,580 — 1,580 303 — 303 Total intangible assets, net $ 91,392 $ (31,149) $ 60,243 $ 83,636 $ (28,026) $ 55,610 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Allergan integration plan | ||
Restructuring charges | ||
Summary of charges associated with integration plan | The following table summarizes the prior year charges associated with the Allergan acquisition integration plan: (in millions) Three Months Ended Six Months Ended Cost of products sold $ 32 $ 46 Research and development 1 1 Selling, general and administrative 51 95 Total charges $ 84 $ 142 | |
Other restructuring | ||
Restructuring charges | ||
Summary of cash activity in the restructuring reserve | The following table summarizes the cash activity in the restructuring reserve for the six months ended June 30, 2024: (in millions) Accrued balance as of December 31, 2023 $ 196 Restructuring charges 63 Payments and other adjustments (77) Accrued balance as of June 30, 2024 $ 182 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of amounts and location of derivatives on the condensed consolidated balance sheets | The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets: Fair value – Fair value – (in millions) Balance sheet caption June 30, December 31, Balance sheet caption June 30, December 31, Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 21 $ 12 Accounts payable and accrued liabilities $ 2 $ 32 Designated as cash flow hedges Other assets 1 — Other long-term liabilities — — Designated as net investment hedges Prepaid expenses and other 78 13 Accounts payable and accrued liabilities 17 66 Designated as net investment hedges Other assets 55 — Other long-term liabilities 4 69 Not designated as hedges Prepaid expenses and other 37 41 Accounts payable and accrued liabilities 14 36 Interest rate swap contracts Designated as fair value hedges Other assets — — Other long-term liabilities 304 293 Total derivatives $ 192 $ 66 $ 341 $ 496 |
Schedule of pre-tax amounts of derivatives designated as cash flow hedges recognized in other comprehensive income (loss) | The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive loss: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Foreign currency forward exchange contracts Designated as cash flow hedges $ 20 $ 14 $ 75 $ 5 Designated as net investment hedges 88 6 222 (88) Cross-currency swap contracts designated as cash flow hedges — 9 — 9 |
Schedule of pre-tax amounts of derivatives designated as net investment hedges recognized in other comprehensive income (loss) | The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive loss: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Foreign currency forward exchange contracts Designated as cash flow hedges $ 20 $ 14 $ 75 $ 5 Designated as net investment hedges 88 6 222 (88) Cross-currency swap contracts designated as cash flow hedges — 9 — 9 |
Summary of pre-tax amounts and location of derivatives recognized in the condensed consolidated statements of earnings | The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI. Three months ended Six months ended (in millions) Statement of earnings caption 2024 2023 2024 2023 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 10 $ 26 $ 22 $ 56 Designated as net investment hedges Interest expense, net 31 29 58 57 Not designated as hedges Net foreign exchange loss 34 4 16 34 Treasury rate lock agreements designated as cash flow hedges Interest expense, net 6 6 12 12 Cross-currency swap contracts designated as cash flow hedges Net foreign exchange loss — 8 — 8 Interest rate swap contracts Designated as fair value hedges Interest expense, net 54 (21) (11) 14 Debt designated as hedged item in fair value hedges Interest expense, net (54) 21 11 (14) |
Summary of bases used to measure assets and liabilities carried at fair value on a recurring basis | The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of June 30, 2024: 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 $ 13,130 $ 6,770 $ 6,360 $ — Money market funds and time deposits 10 — 10 — Debt securities 32 — 32 — Equity securities 97 69 28 — Foreign currency contracts 192 — 192 — Total assets $ 13,461 $ 6,839 $ 6,622 $ — Liabilities Interest rate swap contracts $ 304 $ — $ 304 $ — Foreign currency contracts 37 — 37 — Contingent consideration 21,150 — — 21,150 Total liabilities $ 21,491 $ — $ 341 $ 21,150 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of December 31, 2023: 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 $ 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 |
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: June 30, 2024 December 31, 2023 Range Weighted average (a) Range Weighted average (a) Discount rate 4.8% - 5.9% 5.0% 4.3% - 5.9% 4.5% Probability of payment for royalties by indication (b) 89% - 100% 100% 89% - 100% 99% Projected year of payments 2024 - 2034 2029 2024 - 2034 2027 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) Excluding approved indications, the estimated probability of payment was 89% at June 30, 2024 and December 31, 2023. |
Schedule of changes in fair value of Level 3 inputs | The following table presents the changes in fair value of total contingent consideration liabilities which are measured using Level 3 inputs: Six months ended (in millions) 2024 2023 Beginning balance $ 19,890 $ 16,384 Change in fair value recognized in net earnings 2,136 3,424 Payments (876) (657) Ending balance $ 21,150 $ 19,151 |
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 June 30, 2024 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant other Significant unobservable inputs Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 12,569 $ 12,388 $ 12,244 $ 144 $ — Long-term debt and finance lease obligations, excluding fair value hedges 58,352 54,084 53,678 406 — Total liabilities $ 70,921 $ 66,472 $ 65,922 $ 550 $ — 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 value Quoted prices in active markets for identical assets Significant other 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 $ — |
Schedule of Long-Term Debt Instruments | The following table summarizes issued debt in connection with the acquisitions of ImmunoGen and Cerevel Therapeutics: (in millions) Senior Notes 4.80% Senior Notes due 2027 $ 2,250 4.80% Senior Notes due 2029 2,500 4.95% Senior Notes due 2031 2,000 5.05% Senior Notes due 2034 3,000 5.35% Senior Notes due 2044 750 5.40% Senior Notes due 2054 3,000 5.50% Senior Notes due 2064 1,500 Total debt issued $ 15,000 |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Postemployment Benefits [Abstract] | |
Summary of net periodic benefit costs relating to the company's defined benefit and other post-employment plans | The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined Other post- Three months ended Six months ended Three months ended Six months ended (in millions) 2024 2023 2024 2023 2024 2023 2024 2023 Service cost $ 71 $ 67 $ 143 $ 135 $ 10 $ 10 $ 21 $ 18 Interest cost 113 109 226 216 11 10 21 19 Expected return on plan assets (196) (182) (393) (362) — — — — Amortization of prior service cost (credit) — 1 — 1 (9) (9) (18) (18) Amortization of actuarial loss 13 4 26 8 5 3 9 6 Net periodic benefit cost $ 1 $ (1) $ 2 $ (2) $ 17 $ 14 $ 33 $ 25 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Summary of share-based compensation expense | Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and the AbbVie Amended and Restated 2013 Incentive Stock Program and is summarized as follows: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Cost of products sold $ 10 $ 9 $ 32 $ 29 Research and development 74 57 207 174 Selling, general and administrative 134 113 327 289 Pre-tax compensation expense 218 179 566 492 Tax benefit (34) (30) (94) (85) After-tax compensation expense $ 184 $ 149 $ 472 $ 407 |
Summary of quarterly cash dividends | The following table summarizes quarterly cash dividends declared during 2024 and 2023: 2024 2023 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 02/15/24 05/15/24 $ 1.55 10/26/23 02/15/24 $ 1.55 06/21/24 08/15/24 $ 1.55 09/08/23 11/15/23 $ 1.48 06/22/23 08/15/23 $ 1.48 02/16/23 05/15/23 $ 1.48 |
Summary of changes in balances of each component of accumulated other comprehensive loss | The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2024: (in millions) Foreign currency Net investment hedging activities Pension and post-employment Cash flow hedging Total Balance as of December 31, 2023 $ (1,106) $ 65 $ (1,488) $ 224 $ (2,305) Other comprehensive income (loss) before reclassifications (553) 336 5 62 (150) Net losses (gains) reclassified from accumulated other comprehensive loss — (45) 13 (26) (58) Net current-period other comprehensive income (loss) (553) 291 18 36 (208) Balance as of June 30, 2024 $ (1,659) $ 356 $ (1,470) $ 260 $ (2,513) The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2023: (in millions) Foreign currency Net investment hedging activities Pension Cash flow hedging Total Balance as of December 31, 2022 $ (1,513) $ 464 $ (1,458) $ 308 $ (2,199) Other comprehensive income (loss) before reclassifications 178 (168) 39 8 57 Net gains reclassified from accumulated other comprehensive loss — (45) (3) (62) (110) Net current-period other comprehensive income (loss) 178 (213) 36 (54) (53) Balance as of June 30, 2023 $ (1,335) $ 251 $ (1,422) $ 254 $ (2,252) |
Schedule of the significant amounts reclassified out of each component of accumulated other comprehensive loss | The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended Six months ended (in millions) (brackets denote gains) 2024 2023 2024 2023 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (31) $ (29) $ (58) $ (57) Tax expense 7 6 13 12 Total reclassifications, net of tax $ (24) $ (23) $ (45) $ (45) Pension and post-employment benefits Amortization of actuarial losses (gains) and other (b) $ 9 $ (1) $ 17 $ (3) Tax benefit (3) — (4) — Total reclassifications, net of tax $ 6 $ (1) $ 13 $ (3) Cash flow hedging activities Gains on foreign currency forward exchange contracts (c) $ (10) $ (26) $ (22) $ (56) Gains on treasury rate lock agreements (a) (6) (6) (12) (12) Gains on cross-currency swap contracts (d) — (8) — (8) Tax expense 4 9 8 14 Total reclassifications, net of tax $ (12) $ (31) $ (26) $ (62) (a) Amounts are included in interest expense, net (see Note 8). (b) Amounts are included in the computation of net periodic benefit cost (see Note 9). (c) Amounts are included in cost of products sold (see Note 8). (d) Amounts are included in net foreign exchange loss (see Note 8). |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of worldwide net revenues | The following table details AbbVie’s worldwide net revenues: Three months ended Six months ended (in millions) 2024 2023 2024 2023 Immunology Humira United States $ 2,360 $ 3,452 $ 4,131 $ 6,400 International 454 560 953 1,153 Total $ 2,814 $ 4,012 $ 5,084 $ 7,553 Skyrizi United States $ 2,340 $ 1,634 $ 3,996 $ 2,773 International 387 249 739 470 Total $ 2,727 $ 1,883 $ 4,735 $ 3,243 Rinvoq United States $ 1,017 $ 645 $ 1,742 $ 1,094 International 413 273 781 510 Total $ 1,430 $ 918 $ 2,523 $ 1,604 Oncology Imbruvica United States $ 595 $ 666 $ 1,205 $ 1,304 Collaboration revenues 238 241 466 481 Total $ 833 $ 907 $ 1,671 $ 1,785 Venclexta United States $ 300 $ 265 $ 581 $ 530 International 337 306 670 579 Total $ 637 $ 571 $ 1,251 $ 1,109 Elahere (a) United States $ 128 $ — $ 192 $ — Epkinly Collaboration Revenues $ 29 $ — $ 51 $ — International 7 — 12 — Total $ 36 $ — $ 63 $ — Aesthetics Botox Cosmetic United States $ 450 $ 420 $ 839 $ 829 International 279 265 523 515 Total $ 729 $ 685 $ 1,362 $ 1,344 Juvederm Collection United States $ 138 $ 125 $ 244 $ 247 International 205 243 396 476 Total $ 343 $ 368 $ 640 $ 723 Other Aesthetics United States $ 275 $ 284 $ 556 $ 530 International 43 47 81 87 Total $ 318 $ 331 $ 637 $ 617 Neuroscience Botox Therapeutic United States $ 669 $ 614 $ 1,280 $ 1,201 International 145 134 282 266 Total $ 814 $ 748 $ 1,562 $ 1,467 Vraylar United States $ 773 $ 657 $ 1,465 $ 1,217 International 1 1 3 2 Total $ 774 $ 658 $ 1,468 $ 1,219 Three months ended Six months ended (in millions) 2024 2023 2024 2023 Duodopa United States $ 23 $ 24 $ 48 $ 49 International 90 93 180 186 Total $ 113 $ 117 $ 228 $ 235 Ubrelvy United States $ 227 $ 194 $ 424 $ 344 International 4 2 10 4 Total $ 231 $ 196 $ 434 $ 348 Qulipta United States $ 146 $ 95 $ 274 $ 161 International 4 1 7 1 Total $ 150 $ 96 $ 281 $ 162 Other Neuroscience United States $ 57 $ 65 $ 118 $ 140 International 23 5 36 9 Total $ 80 $ 70 $ 154 $ 149 Eye Care Ozurdex United States $ 35 $ 34 $ 69 $ 73 International 89 85 186 161 Total $ 124 $ 119 $ 255 $ 234 Lumigan/Ganfort United States $ 42 $ 51 $ 71 $ 114 International 61 68 123 135 Total $ 103 $ 119 $ 194 $ 249 Alphagan/Combigan United States $ 13 $ 32 $ 28 $ 60 International 36 33 80 76 Total $ 49 $ 65 $ 108 $ 136 Restasis United States $ 18 $ 82 $ 62 $ 161 International 14 17 27 30 Total $ 32 $ 99 $ 89 $ 191 Other Eye Care United States $ 131 $ 110 $ 236 $ 220 International 94 105 189 195 Total $ 225 $ 215 $ 425 $ 415 Other Key Products Mavyret United States $ 167 $ 193 $ 311 $ 364 International 202 194 407 387 Total $ 369 $ 387 $ 718 $ 751 Creon United States $ 372 $ 282 $ 657 $ 587 Linzess/Constella United States $ 211 $ 269 $ 468 $ 520 International 10 9 19 17 Total $ 221 $ 278 $ 487 $ 537 All other $ 810 $ 741 $ 1,554 $ 1,432 Total net revenues $ 14,462 $ 13,865 $ 26,772 $ 26,090 (a) Net revenues include ImmunoGen product revenues after the acquisition closing date of February 12, 2024. |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Interest Expense, Net | |||||
Interest expense | $ 726 | $ 552 | $ 1,386 | $ 1,105 | |
Interest income | (220) | (98) | (427) | (197) | |
Interest expense, net | 506 | 454 | 959 | 908 | |
Inventories | |||||
Finished goods | 1,189 | 1,189 | $ 1,356 | ||
Work-in-process | 1,930 | 1,930 | 1,643 | ||
Raw materials | 1,099 | 1,099 | 1,100 | ||
Inventories | 4,218 | 4,218 | 4,099 | ||
Property and Equipment | |||||
Property and equipment, gross | 11,903 | 11,903 | 11,635 | ||
Accumulated depreciation | (6,880) | (6,880) | (6,646) | ||
Property and equipment, net | 5,023 | 5,023 | $ 4,989 | ||
Depreciation expense | $ 184 | $ 190 | $ 367 | $ 369 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic EPS | ||||
Net earnings attributable to AbbVie Inc. | $ 1,370 | $ 2,024 | $ 2,739 | $ 2,263 |
Earnings allocated to participating securities | 10 | 11 | 20 | 22 |
Earnings available to common shareholders | $ 1,360 | $ 2,013 | $ 2,719 | $ 2,241 |
Weighted-average basic shares outstanding (in shares) | 1,768 | 1,767 | 1,769 | 1,768 |
Basic earnings per share (in dollars per share) | $ 0.77 | $ 1.14 | $ 1.54 | $ 1.27 |
Diluted EPS | ||||
Net earnings attributable to AbbVie Inc. | $ 1,370 | $ 2,024 | $ 2,739 | $ 2,263 |
Earnings allocated to participating securities | 10 | 11 | 20 | 22 |
Earnings available to common shareholders | $ 1,360 | $ 2,013 | $ 2,719 | $ 2,241 |
Weighted-average basic shares outstanding (in shares) | 1,768 | 1,767 | 1,769 | 1,768 |
Effect of dilutive securities (in shares) | 3 | 4 | 3 | 5 |
Weighted-average diluted shares outstanding (in shares) | 1,771 | 1,771 | 1,772 | 1,773 |
Diluted earnings per share (in dollars per share) | $ 0.77 | $ 1.14 | $ 1.53 | $ 1.26 |
Licensing, Acquisitions and O_3
Licensing, Acquisitions and Other Arrangements - Acquisition of ImmunoGen (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||||
Feb. 12, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Business Acquisition | ||||||||
Amortization of intangible assets | $ 1,900 | $ 2,100 | $ 3,838 | $ 4,018 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||||
Goodwill | 33,386 | $ 33,386 | 33,386 | $ 32,293 | ||||
Pro Forma Information | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 9,199 | ||||||
ImmunoGen | ||||||||
Business Acquisition | ||||||||
Fair value step-up adjustment to inventories | $ 179 | |||||||
Weighted average useful life of acquired intangible assets | 12 years | |||||||
Net revenues attributable to ImmunoGen from acquisition date | 239 | |||||||
Operating earnings attributable to ImmunoGen from acquisition date | (562) | |||||||
Inventory fair value step-up amortization | 124 | |||||||
Amortization of intangible assets | 65 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||||
Cash and equivalents | 591 | |||||||
Accounts receivable | 171 | |||||||
Inventories | 211 | |||||||
Prepaid expenses and other current assets | 40 | |||||||
Property and equipment, net | 7 | |||||||
Intangible Assets - Developed product rights | 7,200 | |||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities License Agreements | 125 | |||||||
Intangible assets - In-process research and development | 1,280 | |||||||
Other noncurrent assets | 273 | |||||||
Accounts payable and accrued liabilities | (312) | |||||||
Current portion of long-term debt | (99) | |||||||
Deferred income taxes | (899) | |||||||
Other long-term liabilities | (47) | |||||||
Total identifiable net assets | 8,541 | |||||||
Goodwill | 1,249 | |||||||
Total assets acquired and liabilities assumed | 9,790 | |||||||
Pro Forma Information | ||||||||
Net revenues | 14,462 | 13,948 | 26,827 | 26,223 | ||||
Net earnings | $ 1,422 | $ 1,861 | $ 3,158 | $ 1,444 | ||||
Cash consideration paid to shareholders | 9,800 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 9,200 | |||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 250 | |||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 349 | |||||||
Intangible Assets - Developed product rights | 7,300 | |||||||
Intangible assets - In-process research and development | $ 1,300 | |||||||
Cash per share received by Cerevel Therapeutics shareholders (in dollars per share) | $ 31.26 | |||||||
ImmunoGen | Selling, general and administrative | ||||||||
Business Acquisition | ||||||||
Acquisition-related expenses | $ 59 |
Licensing, Acquisitions and O_4
Licensing, Acquisitions and Other Arrangements (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 06, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Collaborative and license agreements | ||||||
Cash outflows related to acquisitions and investments | $ (1,033) | $ (513) | ||||
Acquired IPR&D and milestones | $ 937 | $ 280 | 1,101 | 430 | ||
Cerevel Therapeutics | ||||||
Collaborative and license agreements | ||||||
Cash per share received by Cerevel Therapeutics shareholders (in dollars per share) | $ 45 | |||||
Total consideration | $ 8,700 | |||||
Celsius Therapeutics | ||||||
Collaborative and license agreements | ||||||
Cash consideration paid to shareholders | $ 250 | |||||
Collaborative arrangement | ||||||
Collaborative and license agreements | ||||||
Research and development milestone expenses | 10 | 60 | 95 | 78 | ||
Other Collaboration Arrangements | Collaborative arrangement | ||||||
Collaborative and license agreements | ||||||
Acquired IPR&D and milestones | $ 927 | $ 220 | $ 1,006 | $ 352 |
Collaborations (Details)
Collaborations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Collaborative and license agreements | |||||
AbbVie's receivable from Janssen | $ 11,724 | $ 11,724 | $ 11,155 | ||
AbbVie's payable to Janssen | 29,329 | 29,329 | 30,650 | ||
Janssen Biotech Inc. | Collaborative arrangement | |||||
Collaborative and license agreements | |||||
Milestone payments | 200 | $ 200 | |||
Share of collaboration development costs responsible by Janssen (as a percent) | 60% | ||||
Share of collaboration development costs responsible by the entity (as a percent) | 40% | ||||
Global - AbbVie's share of other costs (included in respective line items) | 40 | $ 57 | $ 82 | $ 112 | |
AbbVie's receivable from Janssen | 256 | 256 | 236 | ||
AbbVie's payable to Janssen | 270 | 270 | $ 307 | ||
Janssen Biotech Inc. | Collaborative arrangement | United States | |||||
Collaborative and license agreements | |||||
Collaboration counterparty's share of collaborative arrangement expenses (included in cost of products sold) | 284 | 312 | 567 | 609 | |
Janssen Biotech Inc. | Collaborative arrangement | International | |||||
Collaborative and license agreements | |||||
International - AbbVie's share of profits (included in net revenues) | 238 | 241 | 466 | 481 | |
Genentech, Inc. | Collaborative arrangement | |||||
Collaborative and license agreements | |||||
Collaboration counterparty's share of collaborative arrangement expenses (included in cost of products sold) | 243 | 214 | 470 | 416 | |
AbbVie's share of development costs (included in R&D) | 23 | 30 | 42 | 58 | |
Genentech, Inc. | Collaborative arrangement | United States | |||||
Collaborative and license agreements | |||||
AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) | $ 6 | $ 8 | $ 15 | $ 19 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Changes in the carrying amount of goodwill | |
Balance at the beginning of the period | $ 32,293,000,000 |
Additions | 1,249,000,000 |
Foreign currency translation adjustments | (156,000,000) |
Balance at the end of the period | 33,386,000,000 |
Accumulated goodwill impairment losses | |
Accumulated goodwill impairment losses | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets | ||||||
Gross carrying amount | $ 89,812 | $ 89,812 | $ 83,333 | |||
Accumulated amortization | (31,149) | (31,149) | (28,026) | |||
Net carrying amount | 58,663 | 58,663 | 55,307 | |||
Indefinite-lived intangible assets | 1,580 | 1,580 | 303 | |||
Total intangible assets gross carrying amount | 91,392 | 91,392 | 83,636 | |||
Intangible assets, net | 60,243 | 60,243 | 55,610 | |||
Amortization expense | 1,900 | $ 2,100 | 3,838 | $ 4,018 | ||
Indefinite-Lived Intangible Assets [Line Items] | ||||||
Impairment of intangible assets | 0 | $ 710 | ||||
Impairment, Intangible Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | ||||||
AGN-151607 | ||||||
Indefinite-Lived Intangible Assets [Line Items] | ||||||
Impairment of intangible assets | $ 630 | |||||
Developed product rights | ||||||
Finite-Lived Intangible Assets | ||||||
Gross carrying amount | 81,497 | 81,497 | 75,142 | |||
Accumulated amortization | (25,051) | (25,051) | (22,455) | |||
Net carrying amount | 56,446 | 56,446 | 52,687 | |||
License agreements | ||||||
Finite-Lived Intangible Assets | ||||||
Gross carrying amount | 8,315 | 8,315 | 8,191 | |||
Accumulated amortization | (6,098) | (6,098) | (5,571) | |||
Net carrying amount | $ 2,217 | $ 2,217 | $ 2,620 |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Allergan integration plan | |||||
Restructuring charges | |||||
Incurred total cumulative integration charges | $ 2,500 | ||||
Allergan integration plan | Severance and employee benefits | |||||
Restructuring charges | |||||
Charges associated with integration or restructuring plans | $ 84 | $ 142 | |||
Allergan integration plan | Cost of products sold | |||||
Restructuring charges | |||||
Charges associated with integration or restructuring plans | 32 | 46 | |||
Allergan integration plan | Research and development | |||||
Restructuring charges | |||||
Charges associated with integration or restructuring plans | 1 | 1 | |||
Allergan integration plan | Selling, general and administrative | |||||
Restructuring charges | |||||
Charges associated with integration or restructuring plans | 51 | 95 | |||
Other restructuring | |||||
Restructuring charges | |||||
Charges associated with integration or restructuring plans | $ 49 | $ 18 | $ 64 | $ 45 | |
Restructuring reserve rollforward | |||||
Accrued balance beginning of the period | 196 | ||||
Restructuring charges | 63 | ||||
Payments and other adjustments | (77) | ||||
Accrued balance end of the period | $ 182 | $ 182 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measures - Financial Instruments (Details) € in Millions, SFr in Millions, $ in Millions, kr in Billions | 6 Months Ended | ||||||||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 SEK (kr) | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 CHF (SFr) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 SEK (kr) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 CHF (SFr) | Jun. 30, 2023 EUR (€) | Dec. 31, 2019 USD ($) | |
Derivative instruments, notional amount and fair value | |||||||||||||
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 | 192,000,000 | $ 66,000,000 | |||||||||||
Fair value - Derivatives in liability position | 341,000,000 | 496,000,000 | |||||||||||
Designated as hedging instrument | Net investment hedges | Senior notes | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Principal amount of unsecured senior notes | € | € 3,200 | € 5,400 | |||||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | $ 1,300,000,000 | 1,800,000,000 | |||||||||||
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 | $ 21,000,000 | 12,000,000 | |||||||||||
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 | 2,000,000 | 32,000,000 | |||||||||||
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 | 1,000,000 | 0 | |||||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | Other long-term liabilities | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Fair value - Derivatives in liability position | 0 | 0 | |||||||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | |||||||||||||
Derivative instruments, notional amount and fair value | |||||||||||||
Notional amount of derivative instruments | € 7,100 | kr 1.9 | $ 750 | SFr 70 | € 4,900 | kr 1.4 | $ 750 | SFr 50 | |||||
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 | 78,000,000 | 13,000,000 | |||||||||||
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 | 17,000,000 | 66,000,000 | |||||||||||
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 | 55,000,000 | 0 | |||||||||||
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 | 4,000,000 | 69,000,000 | |||||||||||
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 | 3,500,000,000 | 5,000,000,000 | |||||||||||
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 | 304,000,000 | 293,000,000 | |||||||||||
Designated as hedging instrument | Cross Currency Swap Contract | 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 | 8,600,000,000 | 7,900,000,000 | |||||||||||
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 | 37,000,000 | 41,000,000 | |||||||||||
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 | $ 14,000,000 | $ 36,000,000 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measures - Amount Of Gain/(Loss) Recognized For Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cost of products sold | ||||
Gain (loss) on derivatives | ||||
Pre-tax gains (losses) to be transferred into cost of products sold for foreign currency cash flow hedges during the next 12 months | $ 55 | $ 55 | ||
Interest expense, net | ||||
Gain (loss) on derivatives | ||||
Pre-tax gains (losses) to be transferred into interest expense, net for treasury rate lock agreement cash flow hedges during the next 12 months | 22 | 22 | ||
Interest expense, net | Fair value hedges | ||||
Gain (loss) on derivatives | ||||
Debt designated as hedged item in fair value hedges gain (loss) recognized in the consolidated statements of earnings | (54) | $ 21 | 11 | $ (14) |
Designated as hedging instrument | Senior notes | ||||
Gain (loss) on derivatives | ||||
Pre-tax gains (losses) from net investment hedge instruments recognized in other comprehensive income | 50 | 36 | 207 | (126) |
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 | 20 | 14 | 75 | 5 |
Pre-tax gains (losses) from net investment hedge instruments recognized in other comprehensive income | 88 | 6 | 222 | (88) |
Foreign currency forward exchange contracts | Designated as hedging instrument | Cash flow hedges | ||||
Gain (loss) on derivatives | ||||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | $ 10 | 26 | 22 | $ 56 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | 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 consolidate statements of earnings | $ 31 | 29 | 58 | $ 57 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating | Interest Income (Expense), Nonoperating | ||
Foreign currency forward exchange contracts | Not designated as hedges | ||||
Gain (loss) on derivatives | ||||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | $ 34 | 4 | 16 | $ 34 |
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 | ||
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 | $ (62) | |||
Interest rate swap contracts | Designated as hedging instrument | Fair value hedges | ||||
Gain (loss) on derivatives | ||||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | $ 54 | (21) | $ (11) | $ 14 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating | Interest Income (Expense), Nonoperating | ||
Treasury rate lock agreements | Designated as hedging instrument | Cash flow hedges | ||||
Gain (loss) on derivatives | ||||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | 6 | $ 6 | $ 12 | $ 12 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating | Interest Income (Expense), Nonoperating | ||
Cross Currency Swap Contract | Designated as hedging instrument | ||||
Gain (loss) on derivatives | ||||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | $ 0 | $ 9 | $ 0 | $ 9 |
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 | Gain (Loss), Foreign Currency Transaction, before Tax |
Cross Currency Swap Contract | Designated as hedging instrument | Cash flow hedges | ||||
Gain (loss) on derivatives | ||||
Derivative instrument net gains (losses) recognized in the consolidate statements of earnings | $ 0 | $ 8 | $ 0 | $ 8 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measures - Fair Value Measures (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Investment, Type [Extensible Enumeration] | Money Market Funds [Member] | Money Market Funds [Member] |
Foreign currency contracts | $ 192 | $ 66 |
Liabilities | ||
Foreign currency contracts | 341 | 496 |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Total liabilities | 65,922 | 55,845 |
Fair Value, Recurring | ||
Assets | ||
Cash and equivalents | 13,130 | 12,814 |
Money market funds and time deposits | 10 | 10 |
Debt securities | 32 | 26 |
Equity securities | 97 | 111 |
Total assets | 13,461 | 13,027 |
Liabilities | ||
Interest rate swap contracts | 304 | 293 |
Contingent consideration | 21,150 | 19,890 |
Total liabilities | 21,491 | 20,386 |
Fair Value, Recurring | Foreign currency contracts | ||
Assets | ||
Foreign currency contracts | 192 | 66 |
Liabilities | ||
Foreign currency contracts | 37 | 203 |
Fair Value, Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Cash and equivalents | 6,770 | 6,223 |
Money market funds and time deposits | 0 | 0 |
Debt securities | 0 | 0 |
Equity securities | 69 | 86 |
Total assets | 6,839 | 6,309 |
Liabilities | ||
Interest rate swap contracts | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, 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 |
Fair Value, Recurring | Significant other observable inputs (Level 2) | ||
Assets | ||
Cash and equivalents | 6,360 | 6,591 |
Money market funds and time deposits | 10 | 10 |
Debt securities | 32 | 26 |
Equity securities | 28 | 25 |
Total assets | 6,622 | 6,718 |
Liabilities | ||
Interest rate swap contracts | 304 | 293 |
Contingent consideration | 0 | 0 |
Total liabilities | 341 | 496 |
Fair Value, Recurring | Significant other observable inputs (Level 2) | Foreign currency contracts | ||
Assets | ||
Foreign currency contracts | 192 | 66 |
Liabilities | ||
Foreign currency contracts | 37 | 203 |
Fair Value, 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 | 21,150 | 19,890 |
Total liabilities | 21,150 | 19,890 |
Fair Value, 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) | Jun. 30, 2024 | Dec. 31, 2023 | |
Weighted average | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [1] | 0.050 | 0.045 |
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] | 1 | 0.99 |
Weighted average | Projected year of payments | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [1] | 2,029 | 2,027 |
Minimum | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.048 | 0.043 | |
Minimum | Probability of payment for royalties by indication | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [2] | 0.89 | 0.89 |
Minimum | Projected year of payments | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 2,024 | 2,024 | |
Minimum | Probability of payment for royalties excluding approved indications | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.89 | ||
Maximum | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | 0.059 | 0.059 | |
Maximum | Probability of payment for royalties by indication | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant unobservable input for contingent consideration | [2] | 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 | |
Maximum | 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 | ||
[1] (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) Excluding approved indications, the estimated probability of payment was 89% at June 30, 2024 and 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 ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Transfers of assets or liabilities between the fair value measurement levels | ||
Transfers of assets into Level 3 of the fair value hierarchy | $ 0 | |
Transfers of assets out of Level 3 of the fair value hierarchy | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net [Abstract] | ||
Transfers of liabilities into Level 3 of the fair value hierarchy | 0 | |
Transfers of liabilities out of Level 3 of the fair value hierarchy | 0 | |
Reconciliation of the fair value measurements that use significant unobservable inputs (Level 3) | ||
Beginning balance | 19,890,000,000 | $ 16,384,000,000 |
Change in fair value recognized in net earnings | 2,136,000,000 | 3,424,000,000 |
Payments | (876,000,000) | (657,000,000) |
Ending balance | $ 21,150,000,000 | $ 19,151,000,000 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measures - Bases Used To Measure The Approximate Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities | ||
Carrying amount of investments in equity securities that do not have readily determinable fair values | $ 160 | $ 159 |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 12,244 | 6,862 |
Long-term debt and finance lease obligations, excluding fair value hedges | 53,678 | 48,983 |
Total liabilities | 65,922 | 55,845 |
Book value | ||
Liabilities | ||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 12,569 | 7,191 |
Long-term debt and finance lease obligations, excluding fair value hedges | 58,352 | 52,460 |
Total liabilities | 70,921 | 59,651 |
Approximate fair value | ||
Liabilities | ||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 12,388 | 7,069 |
Long-term debt and finance lease obligations, excluding fair value hedges | 54,084 | 49,541 |
Total liabilities | 66,472 | 56,610 |
Approximate fair value | Significant other observable inputs (Level 2) | ||
Liabilities | ||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 144 | 207 |
Long-term debt and finance lease obligations, excluding fair value hedges | 406 | 558 |
Total liabilities | 550 | 765 |
Approximate fair value | Significant unobservable inputs (Level 3) | ||
Liabilities | ||
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) - Accounts receivable, net - wholesaler | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Jun. 30, 2024 | |
Concentration of Risk | ||
Number of principal customers | 3 | |
Geographic risk | Principal US customers | ||
Concentration of Risk | ||
Concentrations risk (as a percent) | 81% | 77% |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Measures - Debt and Credit Facilities (Details) $ in Millions, € in Billions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | May 31, 2024 EUR (€) | May 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Feb. 12, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 21, 2023 USD ($) | Dec. 06, 2023 USD ($) | |
Short-Term Borrowings [Line Items] | ||||||||||||||
Proceeds from Short-Term Debt | $ 5,008 | $ 0 | ||||||||||||
Repayments of other short-term borrowings | 5,008 | $ 0 | ||||||||||||
Commercial paper | ||||||||||||||
Short-Term Borrowings [Line Items] | ||||||||||||||
Short-term borrowings | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Short-Term Debt, Weighted Average Interest Rate, over Time | 5.54% | |||||||||||||
Proceeds from Short-Term Debt | $ 1,700 | |||||||||||||
Repayments of Short-Term Debt | $ 1,700 | |||||||||||||
December 2023 Bridge Credit Facility | ||||||||||||||
Short-Term Borrowings [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 9,000 | |||||||||||||
364-day Term Loan Credit Agreement | ||||||||||||||
Short-Term Borrowings [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |||||||||||||
Term loan facilities | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Long-Term Debt, Weighted Average Interest Rate, over Time | 6.29% | |||||||||||||
Floating rate notes due 2023, refinanced | Term loan facilities | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Repayments of long-term debt | $ 1,000 | |||||||||||||
2.8% senior notes due 2023 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Repayments of long-term debt | $ 350 | |||||||||||||
Stated interest rate (as a percent) | 2.80% | 2.80% | 2.80% | |||||||||||
Senior Notes Issued in 2024 | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Debt Issuance Costs, Gross | $ 99 | $ 99 | $ 99 | |||||||||||
Debt Instrument, Unamortized Discount | 37 | 37 | 37 | |||||||||||
Senior Notes Issued in 2024 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | ||||||||||
Senior notes due 2027 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | 2,250 | |||||||||||||
4.80% Senior Notes due 2029 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | 2,500 | |||||||||||||
4.95% Senior Notes due 2031 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | 2,000 | |||||||||||||
5.05% Senior Notes due 2034 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | 3,000 | |||||||||||||
5.35% Senior Notes due 2044 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | 750 | |||||||||||||
5.40% Senior Notes due 2054 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | 3,000 | |||||||||||||
5.50% Senior Notes due 2064 | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Aggregate principal amount of debt | $ 1,500 | |||||||||||||
December 2023 Term Loan Credit Agreement | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.975% | |||||||||||||
Short-Term Borrowings [Line Items] | ||||||||||||||
Proceeds from Other Short-Term Debt | $ 5,000 | |||||||||||||
Repayments of other short-term borrowings | $ 5,000 | |||||||||||||
Senior Notes Due 2023 at 2.850 Percent | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Stated interest rate (as a percent) | 2.85% | |||||||||||||
Senior Notes Due 2023 at 2.850 Percent | Term loan facilities | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Repayments of long-term debt | $ (1,000) | |||||||||||||
1.38% Euro Senior Notes | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Stated interest rate (as a percent) | 1.38% | 1.38% | 1.38% | |||||||||||
1.38% Euro Senior Notes | Term loan facilities | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Repayments of long-term debt | € | € 1.5 | |||||||||||||
Senior Euro Notes Due 2024 At 1.250 Percent [Member] | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Stated interest rate (as a percent) | 1.25% | 1.25% | 1.25% | |||||||||||
Senior Euro Notes Due 2024 At 1.250 Percent [Member] | Term loan facilities | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Repayments of long-term debt | € | € 0.7 | |||||||||||||
Senior Euro Notes Due 2024 At 3.85 percent | Senior notes | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Stated interest rate (as a percent) | 3.85% | 3.85% | 3.85% | |||||||||||
Senior Euro Notes Due 2024 At 3.85 percent | Term loan facilities | ||||||||||||||
Debt and Credit Facilities [Line Items] | ||||||||||||||
Repayments of long-term debt | $ 1,000 | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Short-Term Borrowings [Line Items] | ||||||||||||||
Line of Credit Facility, Expiration Period | 5 years | 5 years | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | $ 4,000 | $ 5,000 | $ 5,000 | ||||||||||
Long-Term Line of Credit | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Employment Benefits (Detai
Post-Employment Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined benefit plans | ||||
Defined benefit and other post-employment plans | ||||
Service cost | $ 71 | $ 67 | $ 143 | $ 135 |
Interest cost | 113 | 109 | 226 | 216 |
Expected return on plan assets | (196) | (182) | (393) | (362) |
Amortization of prior service cost (credit) | 0 | 1 | 0 | 1 |
Amortization of actuarial loss | 13 | 4 | 26 | 8 |
Net periodic benefit cost | 1 | (1) | 2 | (2) |
Other post-employment plans | ||||
Defined benefit and other post-employment plans | ||||
Service cost | 10 | 10 | 21 | 18 |
Interest cost | 11 | 10 | 21 | 19 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (9) | (9) | (18) | (18) |
Amortization of actuarial loss | 5 | 3 | 9 | 6 |
Net periodic benefit cost | $ 17 | $ 14 | $ 33 | $ 25 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Pre-tax compensation expense | $ 218 | $ 179 | $ 566 | $ 492 |
Tax benefit | (34) | (30) | (94) | (85) |
After-tax compensation expense | 184 | 149 | 472 | 407 |
Cost of products sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Pre-tax compensation expense | 10 | 9 | 32 | 29 |
Employee Benefits and Share-Based Compensation | 31 | |||
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Pre-tax compensation expense | 74 | 57 | 207 | 174 |
Employee Benefits and Share-Based Compensation | 126 | |||
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Pre-tax compensation expense | $ 134 | $ 113 | 327 | $ 289 |
Employee Benefits and Share-Based Compensation | $ 192 |
Equity - Stock Options (Details
Equity - Stock Options (Details) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock options granted (in shares) | shares | 0.6 |
Weighted-average grant-date fair value of the stock options granted (in dollars per share) | $ / shares | $ 31.53 |
Unrecognized compensation cost | $ | $ 9 |
Period for recognition of unrecognized compensation cost | 2 years |
Equity - RSUs and Performance S
Equity - RSUs and Performance Shares (Details) $ / shares in Units, shares in Thousands, $ in Millions | 5 Months Ended | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) $ / shares shares | |
RSUs and Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares granted (in shares) | 5,000 | |
Fair market value of awards vested (in dollars per share) | $ / shares | $ 176.13 | $ 176.13 |
Unrecognized compensation cost | $ | $ 840 | $ 840 |
Period for recognition of unrecognized compensation cost | 2 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares granted (in shares) | 300 |
Equity - Cash Dividends (Detail
Equity - Cash Dividends (Details) - $ / shares | Jun. 21, 2024 | Feb. 15, 2024 | Oct. 26, 2023 | Sep. 08, 2023 | Jun. 22, 2023 | Feb. 16, 2023 |
Dividend Declared [Member] | ||||||
Dividends Payable | ||||||
Cash dividends declared per common share (in dollars per share) | $ 1.55 | $ 1.55 | $ 1.55 | $ 1.48 | $ 1.48 | $ 1.48 |
Equity - Stock Repurchase Progr
Equity - Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Feb. 16, 2023 | |
Equity, Class of Treasury Stock | |||||
Payment for shares repurchased | $ 9 | $ 10 | $ 1,333 | $ 1,965 | |
Remaining share repurchase authorization amount | $ 3,900 | $ 3,900 | |||
December 2018 Stock Repurchase Authorization | |||||
Equity, Class of Treasury Stock | |||||
Increase to existing stock repurchase authorization | $ 5,000 | ||||
Shares repurchased (in shares) | 5 | 10 | |||
Payment for shares repurchased | $ 959 | $ 1,600 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 8,047 | $ 13,303 | $ 10,397 | $ 17,287 |
Other comprehensive loss | (59) | (20) | (208) | (53) |
Ending balance | 6,821 | 12,898 | 6,821 | 12,898 |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (1,106) | (1,513) | ||
Other comprehensive income (loss) before reclassifications | (553) | 178 | ||
Net losses (gains) reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Other comprehensive loss | (553) | 178 | ||
Ending balance | (1,659) | (1,335) | (1,659) | (1,335) |
Net investment hedging activities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 65 | 464 | ||
Other comprehensive income (loss) before reclassifications | 336 | (168) | ||
Net losses (gains) reclassified from accumulated other comprehensive loss | (45) | (45) | ||
Other comprehensive loss | 291 | (213) | ||
Ending balance | 356 | 251 | 356 | 251 |
Pension and post-employment benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (1,488) | (1,458) | ||
Other comprehensive income (loss) before reclassifications | 5 | 39 | ||
Net losses (gains) reclassified from accumulated other comprehensive loss | 6 | (1) | 13 | (3) |
Other comprehensive loss | 18 | 36 | ||
Ending balance | (1,470) | (1,422) | (1,470) | (1,422) |
Cash flow hedging activities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 224 | 308 | ||
Other comprehensive income (loss) before reclassifications | 62 | 8 | ||
Net losses (gains) reclassified from accumulated other comprehensive loss | (26) | (62) | ||
Other comprehensive loss | 36 | (54) | ||
Ending balance | 260 | 254 | 260 | 254 |
Accumulated other comprehensive income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (2,305) | (2,199) | ||
Other comprehensive income (loss) before reclassifications | (150) | 57 | ||
Net losses (gains) reclassified from accumulated other comprehensive loss | (58) | (110) | ||
Other comprehensive loss | (208) | (53) | ||
Ending balance | $ (2,513) | $ (2,252) | $ (2,513) | $ (2,252) |
Equity - Amounts Reclassified O
Equity - Amounts Reclassified Out Of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Significant amounts reclassified out of each component of AOCI | |||||
Gains on derivative amount excluded from effectiveness testing | $ 506 | $ 454 | $ 959 | $ 908 | |
Foreign Currency Transaction Gain (Loss), before Tax | 1 | 37 | 5 | 72 | |
Tax expense (benefit) | 773 | 583 | 1,156 | 817 | |
Total reclassifications, net of tax | (1,370) | (2,024) | (2,739) | (2,263) | |
Losses (gains) on foreign currency forward exchange contracts | 4,202 | 4,240 | 8,296 | 8,226 | |
Pension and post-employment benefits | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Amortization of actuarial losses and other | [1] | 9 | (1) | 17 | (3) |
Tax benefit | (3) | 0 | (4) | 0 | |
Total reclassifications, net of tax | 6 | (1) | 13 | (3) | |
Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Total reclassifications, net of tax | (26) | (62) | |||
Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Tax expense (benefit) | 4 | 9 | 8 | 14 | |
Total reclassifications, net of tax | (12) | (31) | (26) | (62) | |
Reclassification out of accumulated other comprehensive loss | Net investment hedges | Net investment hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Gains on derivative amount excluded from effectiveness testing | [2] | (31) | (29) | (58) | (57) |
Tax expense (benefit) | 7 | 6 | 13 | 12 | |
Total reclassifications, net of tax | (24) | (23) | (45) | (45) | |
Foreign currency forward exchange contracts | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Losses (gains) on foreign currency forward exchange contracts | [3] | (10) | (26) | (22) | (56) |
Treasury rate lock agreements | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Gains on derivative amount excluded from effectiveness testing | [2] | (6) | (6) | (12) | (12) |
Cross Currency Swap Contract | Reclassification out of accumulated other comprehensive loss | Cash flow hedging activities | |||||
Significant amounts reclassified out of each component of AOCI | |||||
Foreign Currency Transaction Gain (Loss), before Tax | $ 0 | $ (8) | $ 0 | $ (8) | |
[1] (b) Amounts are included in the computation of net periodic benefit cost (see Note 9). (c) Amounts are included in cost of products sold (see Note 8). |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 36% | 22% | 30% | 26% |
U.S. statutory tax rate | 21% | 21% | ||
Potential change in unrecognized tax benefits | $ 162 | $ 162 |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 31, 2019 company | Jun. 30, 2024 USD ($) company | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) company lawsuit | Jun. 30, 2023 USD ($) | Jun. 30, 2024 claims | Jun. 30, 2024 claim | Sep. 30, 2022 USD ($) | |
Legal Proceedings and Contingencies | ||||||||
Income tax expense | $ | $ 773 | $ 583 | $ 1,156 | $ 817 | ||||
Niaspan | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of individual plaintiff lawsuits | lawsuit | 6 | |||||||
AndroGel antitrust litigation, King Drug Co. of Florence, Inc., et al. v. AbbVie Inc., et al. | ||||||||
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 | 460 | |||||||
Prescription drug abuse litigation in state courts | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 45 | 45 | 52 | |||||
Prescription drug abuse litigation in state courts | Selling, general and administrative | ||||||||
Legal Proceedings and Contingencies | ||||||||
Litigation charge related to potential settlement | $ | $ 2,100 | |||||||
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 | 25 | 25 | ||||||
Product Liability Litigation [Member] | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 130 | |||||||
Product Liability Other Litigation | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 1,000 | |||||||
Product Liability ALCL Litigation in State Court | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 75 | |||||||
Product Liability Other Litigation in State Court | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 460 | |||||||
Product Liability ALCL Litigation in Other Countries | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 50 | |||||||
Product Liability Other Litigation in Other Countries | ||||||||
Legal Proceedings and Contingencies | ||||||||
Number of claims pending | 800 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue | ||||
Total net revenues | $ 14,462 | $ 13,865 | $ 26,772 | $ 26,090 |
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 |
All other | ||||
Disaggregation of Revenue | ||||
Net revenues | $ 810 | $ 741 | $ 1,554 | $ 1,432 |
Immunology | Humira | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,814 | 4,012 | 5,084 | 7,553 |
Immunology | Humira | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,360 | 3,452 | 4,131 | 6,400 |
Immunology | Humira | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 454 | 560 | 953 | 1,153 |
Immunology | Skyrizi | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,727 | 1,883 | 4,735 | 3,243 |
Immunology | Skyrizi | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,340 | 1,634 | 3,996 | 2,773 |
Immunology | Skyrizi | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 387 | 249 | 739 | 470 |
Immunology | Rinvoq | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,430 | 918 | 2,523 | 1,604 |
Immunology | Rinvoq | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,017 | 645 | 1,742 | 1,094 |
Immunology | Rinvoq | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 413 | 273 | 781 | 510 |
Hematologic Oncology | Imbruvica | ||||
Disaggregation of Revenue | ||||
Net revenues | 833 | 907 | 1,671 | 1,785 |
Hematologic Oncology | Imbruvica | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 595 | 666 | 1,205 | 1,304 |
Hematologic Oncology | Imbruvica | International | ||||
Disaggregation of Revenue | ||||
Collaboration revenues | 238 | 241 | 466 | 481 |
Hematologic Oncology | Venclexta | ||||
Disaggregation of Revenue | ||||
Net revenues | 637 | 571 | 1,251 | 1,109 |
Hematologic Oncology | Venclexta | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 300 | 265 | 581 | 530 |
Hematologic Oncology | Venclexta | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 337 | 306 | 670 | 579 |
Hematologic Oncology | Epkinly | ||||
Disaggregation of Revenue | ||||
Net revenues | 36 | 0 | 63 | 0 |
Collaboration revenues | 29 | 0 | 51 | 0 |
Hematologic Oncology | Epkinly | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 7 | 0 | 12 | 0 |
Hematologic Oncology | Elahere | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 128 | 0 | 192 | 0 |
Aesthetics | Botox Cosmetic | ||||
Disaggregation of Revenue | ||||
Net revenues | 729 | 685 | 1,362 | 1,344 |
Aesthetics | Botox Cosmetic | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 450 | 420 | 839 | 829 |
Aesthetics | Botox Cosmetic | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 279 | 265 | 523 | 515 |
Aesthetics | Juvederm Collection | ||||
Disaggregation of Revenue | ||||
Net revenues | 343 | 368 | 640 | 723 |
Aesthetics | Juvederm Collection | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 138 | 125 | 244 | 247 |
Aesthetics | Juvederm Collection | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 205 | 243 | 396 | 476 |
Aesthetics | Other Aesthetics | ||||
Disaggregation of Revenue | ||||
Net revenues | 318 | 331 | 637 | 617 |
Aesthetics | Other Aesthetics | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 275 | 284 | 556 | 530 |
Aesthetics | Other Aesthetics | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 43 | 47 | 81 | 87 |
Neuroscience | Botox Therapeutic | ||||
Disaggregation of Revenue | ||||
Net revenues | 814 | 748 | 1,562 | 1,467 |
Neuroscience | Botox Therapeutic | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 669 | 614 | 1,280 | 1,201 |
Neuroscience | Botox Therapeutic | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 145 | 134 | 282 | 266 |
Neuroscience | Vraylar | ||||
Disaggregation of Revenue | ||||
Net revenues | 774 | 658 | 1,468 | 1,219 |
Neuroscience | Vraylar | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 773 | 657 | 1,465 | 1,217 |
Neuroscience | Vraylar | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 1 | 1 | 3 | 2 |
Neuroscience | Duodopa | ||||
Disaggregation of Revenue | ||||
Net revenues | 113 | 117 | 228 | 235 |
Neuroscience | Duodopa | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 23 | 24 | 48 | 49 |
Neuroscience | Duodopa | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 90 | 93 | 180 | 186 |
Neuroscience | Ubrelvy | ||||
Disaggregation of Revenue | ||||
Net revenues | 231 | 196 | 434 | 348 |
Neuroscience | Ubrelvy | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 227 | 194 | 424 | 344 |
Neuroscience | Ubrelvy | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 4 | 2 | 10 | 4 |
Neuroscience | Qulipta | ||||
Disaggregation of Revenue | ||||
Net revenues | 150 | 96 | 281 | 162 |
Neuroscience | Qulipta | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 146 | 95 | 274 | 161 |
Neuroscience | Qulipta | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 4 | 1 | 7 | 1 |
Neuroscience | Other Neuroscience | ||||
Disaggregation of Revenue | ||||
Net revenues | 80 | 70 | 154 | 149 |
Neuroscience | Other Neuroscience | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 57 | 65 | 118 | 140 |
Neuroscience | Other Neuroscience | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 23 | 5 | 36 | 9 |
Eye Care | Ozurdex | ||||
Disaggregation of Revenue | ||||
Net revenues | 124 | 119 | 255 | 234 |
Eye Care | Ozurdex | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 35 | 34 | 69 | 73 |
Eye Care | Ozurdex | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 89 | 85 | 186 | 161 |
Eye Care | Lumigan/Ganfort | ||||
Disaggregation of Revenue | ||||
Net revenues | 103 | 119 | 194 | 249 |
Eye Care | Lumigan/Ganfort | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 42 | 51 | 71 | 114 |
Eye Care | Lumigan/Ganfort | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 61 | 68 | 123 | 135 |
Eye Care | Alphagan/Combigan | ||||
Disaggregation of Revenue | ||||
Net revenues | 49 | 65 | 108 | 136 |
Eye Care | Alphagan/Combigan | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 13 | 32 | 28 | 60 |
Eye Care | Alphagan/Combigan | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 36 | 33 | 80 | 76 |
Eye Care | Restasis | ||||
Disaggregation of Revenue | ||||
Net revenues | 32 | 99 | 89 | 191 |
Eye Care | Restasis | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 18 | 82 | 62 | 161 |
Eye Care | Restasis | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 14 | 17 | 27 | 30 |
Eye Care | Other Eye Care | ||||
Disaggregation of Revenue | ||||
Net revenues | 225 | 215 | 425 | 415 |
Eye Care | Other Eye Care | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 131 | 110 | 236 | 220 |
Eye Care | Other Eye Care | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 94 | 105 | 189 | 195 |
Other Key Products | Mavyret | ||||
Disaggregation of Revenue | ||||
Net revenues | 369 | 387 | 718 | 751 |
Other Key Products | Mavyret | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 167 | 193 | 311 | 364 |
Other Key Products | Mavyret | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 202 | 194 | 407 | 387 |
Other Key Products | Creon | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 372 | 282 | 657 | 587 |
Other Key Products | Linzess/Constella | ||||
Disaggregation of Revenue | ||||
Net revenues | 221 | 278 | 487 | 537 |
Other Key Products | Linzess/Constella | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 211 | 269 | 468 | 520 |
Other Key Products | Linzess/Constella | International | ||||
Disaggregation of Revenue | ||||
Net revenues | $ 10 | $ 9 | $ 19 | $ 17 |