| Leases AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheet: | | | | | | (in millions) | Balance sheet caption | December 31,
2019 | Assets | | | Operating | Other assets | $ | 344 |
| Finance | Property and equipment, net | 23 |
| Total lease assets | | $ | 367 |
| Liabilities | | | Operating | | | Current | Accounts payable and accrued liabilities | $ | 109 |
| Noncurrent | Other long-term liabilities | 251 |
| Finance | | | Current | Current portion of long-term debt and finance lease obligations | 7 |
| Noncurrent | Long-term debt and finance lease obligations | 20 |
| Total lease liabilities | | $ | 387 |
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The following table summarizes the lease costs recognized in the consolidated statement of earnings: | | | | | | year ended December 31 (in millions) | | 2019 | Operating lease cost | | $ | 124 |
| Short-term lease cost | | 34 |
| Variable lease cost | | 62 |
| Total lease cost | | $ | 220 |
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Sublease income and finance lease costs were insignificant in 2019. Lease expense prior to the adoption of ASU No. 2016-02 was $161 million in 2018 and $169 million in 2017. The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: | | | | | December 31,
2019 | Weighted-average remaining lease term (years) | | Operating | 5 |
| Finance | 3 |
| Weighted-average discount rate | | Operating | 3.9 | % | Finance | 3.9 | % |
The following table presents supplementary cash flow information regarding the company's leases: | | | | | year ended December 31 (in millions) | 2019 | Cash paid for amounts included in the measurement of lease liabilities | | Operating cash flows from operating leases | $ | 125 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 26 |
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Finance lease cash flows were insignificant in 2019. The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2019: | | | | | | | | | | | | | (in millions) | Operating leases | | Finance leases | | Total (a)(b) | 2020 | $ | 119 |
| | $ | 10 |
| | $ | 129 |
| 2021 | 104 |
| | 9 |
| | 113 |
| 2022 | 59 |
| | 8 |
| | 67 |
| 2023 | 38 |
| | 1 |
| | 39 |
| 2024 | 22 |
| | — |
| | 22 |
| Thereafter | 58 |
| | — |
| | 58 |
| Total lease payments | 400 |
| | 28 |
| | 428 |
| Less: Interest | 40 |
| | 1 |
| | 41 |
| Present value of lease liabilities | $ | 360 |
| | $ | 27 |
| | $ | 387 |
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| | (a) | Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence in 2020 with lease terms of approximately 11 years. |
| | (b) | Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Future minimum lease payments for non-cancelable operating leases and capital leases as of December 31, 2018 prior to the adoption of ASU No. 2016-02 did not differ materially from future lease payments, inclusive of payments for leases executed but not yet commenced, under the new standard.
|