Equity (Tables)

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Summary of share-based compensation expense

Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and is summarized as follows:



	Three months ended March 31,
(in millions)	2020		2019
Cost of products sold	$	15	$	15
Research and development	92		72
Selling, general and administrative	112		102
Pre-tax compensation expense	219		189
Tax benefit	39		33
After-tax compensation expense	$	180	$	156

Summary of quarterly cash dividends

The following table summarizes quarterly cash dividends declared during 2020 and 2019:



2020				2019
Date Declared	Payment Date	Dividend Per Share		Date Declared	Payment Date	Dividend Per Share
02/20/20	05/15/20	$	1.18	11/01/19	02/14/20	$	1.18
				09/06/19	11/15/19	$	1.07
				06/20/19	08/15/19	$	1.07
				02/21/19	05/15/19	$	1.07

Summary of changes in balances of each component of accumulated other comprehensive loss

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2020:



(in millions)	Foreign currency translation adjustments			Net investment hedging activities			Pension and post-employment benefits			Cash flow hedging activities			Total
Balance as of December 31, 2019	$	(928	)	$	9		$	(2,965	)	$	288		$	(3,596	)
Other comprehensive income (loss) before reclassifications	(227		)	78			8			4			(137		)
Net losses (gains) reclassified from accumulated other comprehensive loss	—			(6		)	48			(6		)	36
Net current-period other comprehensive income (loss)	(227		)	72			56			(2		)	(101		)
Balance as of March 31, 2020	$	(1,155	)	$	81		$	(2,909	)	$	286		$	(3,697	)

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019:



(in millions)	Foreign currency translation adjustments			Net investment hedging activities			Pension and post- employment benefits			Marketable security activities			Cash flow hedging activities			Total
Balance as of December 31, 2018	$	(830	)	$	(65	)	$	(1,722	)	$	(10	)	$	147		$	(2,480	)
Other comprehensive income (loss) before reclassifications	(103		)	65			5			7			5			(21		)
Net losses (gains) reclassified from accumulated other comprehensive loss	—			—			20			—			(35		)	(15		)
Net current-period other comprehensive income (loss)	(103		)	65			25			7			(30		)	(36		)
Balance as of March 31, 2019	$	(933	)	$	—		$	(1,697	)	$	(3	)	$	117		$	(2,516	)

Schedule of the significant amounts reclassified out of each component of accumulated other comprehensive loss

The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss:



	Three months ended March 31,
(in millions) (brackets denote gains)	2020			2019
Net investment hedging activities
Gains on derivative amount excluded from effectiveness testing^(a)	$	(8	)	$	—
Tax expense	2			—
Total reclassifications, net of tax	$	(6	)	$	—
Pension and post-employment benefits
Amortization of actuarial losses and other^(b)	$	61		$	25
Tax benefit	(13		)	(5		)
Total reclassifications, net of tax	$	48		$	20
Cash flow hedging activities
Gains on foreign currency forward exchange contracts^(c)	$	—		$	(40	)
Gains on treasury rate lock agreements and interest rate swap contracts^(a)	(7		)	—
Tax expense	1			5
Total reclassifications, net of tax	$	(6	)	$	(35	)

(a) Amounts are included in interest expense, net (see Note 8).

(b) Amounts are included in the computation of net periodic benefit cost (see Note 9).