Post-Employment Benefits (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Postemployment Benefits [Abstract] |
|
| Schedule of benefit plan information |
The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans: | | | | | | | | | | | | | | | | | | Defined benefit plans | | Other post-employment plans | as of and for the years ended December 31 (in millions) | 2019 | | 2018 | | 2019 | | 2018 | Projected benefit obligations | | | | | | | | Beginning of period | $ | 6,618 |
| | $ | 6,985 |
| | $ | 561 |
| | $ | 813 |
| Service cost | 269 |
| | 285 |
| | 25 |
| | 26 |
| Interest cost | 259 |
| | 227 |
| | 29 |
| | 25 |
| Employee contributions | 2 |
| | 2 |
| | — |
| | — |
| Actuarial (gain) loss | 1,703 |
| | (614 | ) | | 451 |
| | (287 | ) | Benefits paid | (206 | ) | | (191 | ) | | (17 | ) | | (16 | ) | Other, primarily foreign currency translation adjustments | 1 |
| | (76 | ) | | 1 |
| | — |
| End of period | 8,646 |
| | 6,618 |
| | 1,050 |
| | 561 |
| Fair value of plan assets | | | | | | | | Beginning of period | 5,637 |
| | 5,399 |
| | — |
| | — |
| Actual return on plan assets | 946 |
| | (384 | ) | | — |
| | — |
| Company contributions | 727 |
| | 873 |
| | 17 |
| | 16 |
| Employee contributions | 2 |
| | 2 |
| | — |
| | — |
| Benefits paid | (206 | ) | | (191 | ) | | (17 | ) | | (16 | ) | Other, primarily foreign currency translation adjustments | 10 |
| | (62 | ) | | — |
| | — |
| End of period | 7,116 |
| | 5,637 |
| | — |
| | — |
| Funded status, end of period | $ | (1,530 | ) | | $ | (981 | ) | | $ | (1,050 | ) | | $ | (561 | ) | | | | | | | | | Amounts recognized on the consolidated balance sheets | | | | | | | | Other assets | $ | 395 |
| | $ | 321 |
| | $ | — |
| | $ | — |
| Accounts payable and accrued liabilities | (8 | ) | | (8 | ) | | (18 | ) | | (15 | ) | Other long-term liabilities | (1,917 | ) | | (1,294 | ) | | (1,032 | ) | | (546 | ) | Net obligation | $ | (1,530 | ) | | $ | (981 | ) | | $ | (1,050 | ) | | $ | (561 | ) | Actuarial loss, net | $ | 3,633 |
| | $ | 2,516 |
| | $ | 469 |
| | $ | 25 |
| Prior service cost (credit) | 10 |
| | 11 |
| | (16 | ) | | (22 | ) | Accumulated other comprehensive loss | $ | 3,643 |
| | $ | 2,527 |
| | $ | 453 |
| | $ | 3 |
|
|
| Summary of pretax gains and losses included in other comprehensive income (loss) |
The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss): | | | | | | | | | | | | | years ended December 31 (in millions) | 2019 | | 2018 | | 2017 | Defined benefit plans | | | | | | Actuarial loss | $ | 1,231 |
| | $ | 209 |
| | $ | 412 |
| Amortization of actuarial loss and prior service cost | (109 | ) | | (140 | ) | | (107 | ) | Foreign exchange loss (gain) and other | (6 | ) | | (13 | ) | | 46 |
| Total loss | $ | 1,116 |
| | $ | 56 |
| | $ | 351 |
| Other post-employment plans | | | | | | Actuarial loss (gain) | $ | 451 |
| | $ | (287 | ) | | $ | 149 |
| Amortization of actuarial loss and prior service credit | (1 | ) | | (1 | ) | | — |
| Total loss (gain) | $ | 450 |
| | $ | (288 | ) | | $ | 149 |
|
|
| Summary of net periodic benefit cost relating to the company's defined benefit and other post-employment plans |
Net Periodic Benefit Cost | | | | | | | | | | | | | years ended December 31 (in millions) | 2019 | | 2018 | | 2017 | Defined benefit plans | | | | | | Service cost | $ | 269 |
| | $ | 285 |
| | $ | 236 |
| Interest cost | 259 |
| | 227 |
| | 204 |
| Expected return on plan assets | (474 | ) | | (439 | ) | | (382 | ) | Amortization of actuarial loss and prior service cost | 109 |
| | 140 |
| | 107 |
| Net periodic benefit cost | $ | 163 |
| | $ | 213 |
| | $ | 165 |
| Other post-employment plans | | | | | | Service cost | $ | 25 |
| | $ | 26 |
| | $ | 26 |
| Interest cost | 29 |
| | 25 |
| | 24 |
| Amortization of actuarial loss and prior service credit | 1 |
| | 1 |
| | — |
| Net periodic benefit cost | $ | 55 |
| | $ | 52 |
| | $ | 50 |
|
|
| Schedule of weighted-average assumptions used in determining benefit obligations at the measurement date |
Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date | | | | | | | as of December 31 | 2019 | | 2018 | Defined benefit plans | | | | Discount rate | 3.0 | % | | 4.0 | % | Rate of compensation increases | 4.6 | % | | 4.6 | % | Other post-employment plans | | | | Discount rate | 3.6 | % | | 4.6 | % |
|
| Schedule of weighted-average assumptions used in determining net periodic benefit cost |
st in 2020. Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost | | | | | | | | | | years ended December 31 | 2019 | | 2018 | | 2017 | Defined benefit plans | | | | | | Discount rate for determining service cost | 4.0 | % | | 3.4 | % | | 3.9 | % | Discount rate for determining interest cost | 4.0 | % | | 3.1 | % | | 3.7 | % | Expected long-term rate of return on plan assets | 7.6 | % | | 7.7 | % | | 7.8 | % | Expected rate of change in compensation | 4.6 | % | | 4.4 | % | | 4.4 | % | Other post-employment plans | | | | | | Discount rate for determining service cost | 4.7 | % | | 4.0 | % | | 4.9 | % | Discount rate for determining interest cost | 4.3 | % | | 3.7 | % | | 4.1 | % |
|
| Schedule of effect of 1% change in assumed health care cost trend rates |
As of December 31, 2019, a one percentage point change in assumed health care cost trend rates would have the following effects: | | | | | | | | | | One percentage point | year ended December 31, 2019 (in millions) (brackets denote a reduction) | Increase | | Decrease | Service cost and interest cost | $ | 13 |
| | $ | (10 | ) | Projected benefit obligation | 244 |
| | (186 | ) |
|
| Schedule of defined benefit pension plan assets |
Defined Benefit Pension Plan Assets | | | | | | | | | | | | | | | | | | | | Basis of fair value measurement | as of December 31 (in millions) | 2019 | | Quoted prices in active markets for identical assets (Level 1) | | Significant other observable inputs (Level 2) | | Significant unobservable inputs (Level 3) | Equities | | | | | | | | U.S. large cap(a) | $ | 884 |
| | $ | 884 |
| | $ | — |
| | $ | — |
| U.S. mid cap(b) | 138 |
| | 138 |
| | — |
| | — |
| International(c) | 349 |
| | 349 |
| | — |
| | — |
| Fixed income securities | | | | | | | | U.S. government securities(d) | 149 |
| | 21 |
| | 128 |
| | — |
| Corporate debt instruments(d) | 372 |
| | 112 |
| | 260 |
| | — |
| Non-U.S. government securities(d) | 202 |
| | 84 |
| | 118 |
| | — |
| Other(d) | 320 |
| | 318 |
| | 2 |
| | — |
| Absolute return funds(e) | 296 |
| | 4 |
| | 292 |
| | — |
| Real assets | 9 |
| | 9 |
| | — |
| | — |
| Other(f) | 132 |
| | 132 |
| | — |
| | — |
| Total | $ | 2,851 |
| | $ | 2,051 |
| | $ | 800 |
| | $ | — |
| Total assets measured at NAV | 4,265 |
| | | | | | | Fair value of plan assets | $ | 7,116 |
| |
|
| |
|
| |
|
|
| | | | | | | | | | | | | | | | | | | | Basis of fair value measurement | as of December 31 (in millions) | 2018 | | Quoted prices in active markets for identical assets (Level 1) | | Significant other observable inputs (Level 2) | | Significant unobservable inputs (Level 3) | Equities | | | | | | | | U.S. large cap(a) | $ | 719 |
| | $ | 719 |
| | $ | — |
| | $ | — |
| U.S. mid cap(b) | 67 |
| | 67 |
| | — |
| | — |
| International(c) | 226 |
| | 226 |
| | — |
| | — |
| Fixed income securities | | | | | | | | U.S. government securities(d) | 140 |
| | 21 |
| | 119 |
| | — |
| Corporate debt instruments(d) | 385 |
| | 123 |
| | 262 |
| | — |
| Non-U.S. government securities(d) | 175 |
| | 48 |
| | 127 |
| | — |
| Other(d) | 232 |
| | 225 |
| | 7 |
| | — |
| Absolute return funds(e) | 261 |
| | 3 |
| | 258 |
| | — |
| Real assets | 7 |
| | 7 |
| | — |
| | — |
| Other(f) | 147 |
| | 147 |
| | — |
| | — |
| Total | $ | 2,359 |
| | $ | 1,586 |
| | $ | 773 |
| | $ | — |
| Total assets measured at NAV | 3,278 |
| | | | | | | Fair value of plan assets | $ | 5,637 |
| |
|
| |
|
| |
|
|
| | (a) | A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. |
| | (b) | A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. |
| | (c) | A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. |
| | (d) | Securities held by actively managed accounts, index funds and mutual funds. |
| | (e) | Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. |
(f) Investments in cash and cash equivalents.
|
| Schedule of expected benefit payments |
Expected Benefit Payments The following table summarizes total benefit payments expected to be paid to plan participants including payments funded from both plan and company assets: | | | | | | | | | years ending December 31 (in millions) | Defined benefit plans | | Other post-employment plans | 2020 | $ | 221 |
| | $ | 18 |
| 2021 | 235 |
| | 21 |
| 2022 | 251 |
| | 24 |
| 2023 | 268 |
| | 26 |
| 2024 | 286 |
| | 29 |
| 2025 to 2029 | 1,737 |
| | 186 |
|
|