Debt, Credit Facilities and Commitments and Contingencies

The following table summarizes long-term debt:


as of December 31 (dollars in millions)	2023 Effective interest rate (a)		2023		2022 Effective interest rate (a)		2022
1.50-3.75% aggregate notes due 2023	0.49-3.84%		$	—	0.49-3.84%		$	3,132
Floating rate term loans due 2023	5.07	%	—		2.45	%	1,000
2.60% senior notes due 2024	2.69	%	3,750		2.69	%	3,750
1.375% senior euro notes due 2024 (€1,450 principal)	1.46	%	1,610		1.46	%	1,543
3.85% senior notes due 2024	2.07	%	1,032		2.07	%	1,032
1.25% senior euro notes due 2024 (€700 principal)	0.65	%	777		0.65	%	745
3.60% senior notes due 2025	3.66	%	3,750		3.66	%	3,750
3.80% senior notes due 2025	2.09	%	3,021		2.09	%	3,021
Floating rate term loans due 2025	5.95	%	2,000		2.82	%	2,000
2.95% senior notes due 2026	3.02	%	4,000		3.02	%	4,000
3.20% senior notes due 2026	3.28	%	2,000		3.28	%	2,000
0.75% senior euro notes due 2027 (€750 principal)	0.86	%	833		0.86	%	798
4.25% senior notes due 2028	4.38	%	1,750		4.38	%	1,750
2.125% senior euro notes due 2028 (€750 principal)	2.18	%	833		2.18	%	798
2.625% senior euro notes due 2028 (€500 principal)	1.20	%	555		1.20	%	532
3.20% senior notes due 2029	3.25	%	5,500		3.25	%	5,500
2.125% senior euro notes due 2029 (€550 principal)	1.19	%	611		1.19	%	585
1.25% senior euro notes due 2031 (€650 principal)	1.30	%	722		1.30	%	691
4.55% senior notes due 2035	3.52	%	1,789		3.52	%	1,789
4.50% senior notes due 2035	4.58	%	2,500		4.58	%	2,500
4.30% senior notes due 2036	4.37	%	1,000		4.37	%	1,000
4.05% senior notes due 2039	4.11	%	4,000		4.11	%	4,000
4.40% senior notes due 2042	4.46	%	2,600		4.46	%	2,600
4.625% senior notes due 2042	4.00	%	457		4.00	%	457
4.85% senior notes due 2044	4.11	%	1,074		4.11	%	1,074
4.70% senior notes due 2045	4.73	%	2,700		4.73	%	2,700
4.75% senior notes due 2045	4.20	%	881		4.20	%	881
4.45% senior notes due 2046	4.50	%	2,000		4.50	%	2,000
4.875% senior notes due 2048	4.94	%	1,750		4.94	%	1,750
4.25% senior notes due 2049	4.29	%	5,750		4.29	%	5,750
Fair value hedges			(266)				(346)
Unamortized bond discounts			(106)				(116)
Unamortized deferred financing costs			(198)				(222)
Unamortized bond premiums(b)			668				793
Other			42				33
Total long-term debt and finance lease obligations			59,385				63,270
Current portion			7,191				4,135
Noncurrent portion			$	52,194			$	59,135

(a)Excludes the effect of any related interest rate swaps.

(b)Represents unamortized purchase price adjustments of Allergan debt.

Senior notes and floating rate term loans are redeemable prior to maturity at a redemption price equal to the principal amount plus a make-whole premium and AbbVie may redeem these debt securities at par generally between one and six months prior to maturity. At December 31, 2023, the company was in compliance with its senior note covenants and term loan covenants.

Maturities of Long-Term Debt


as of and for the years ending December 31 (in millions)
2024	$	7,170
2025	8,771
2026	6,000
2027	833
2028	3,138
Thereafter	33,333
Total obligations and commitments	59,245
Fair value hedges, unamortized bond premiums/discounts, deferred financing costs and finance lease obligations	140
Total long-term debt and finance lease obligations	$	59,385

Repayment and Issuance of Long-Term Debt

In 2023, the company repaid a $1.0 billion floating rate three-year term loan, $350 million aggregate principal amount of 2.80% senior notes and $1.0 billion aggregate principal amount of 2.85% senior notes at maturity. During the quarter ended December 31, 2023, the company also repaid €500 million aggregate principal amount of 1.50% senior euro notes and $1.3 billion aggregate principal amount of 3.75% senior notes at maturity.

In 2022, the company repaid $2.9 billion aggregate principal amount of 3.450% senior notes, $1.7 billion aggregate principal amount of 3.25% senior notes and $1.0 billion aggregate principal amount of 3.2% senior notes. These repayments were made by exercising, under the terms of the notes ranging between 60 and 90-day early redemptions at 100% of the principal amount. During the quarter ended December 31, 2022, the company also paid $3.1 billion aggregate principal amount of 2.9% senior notes, $3.0 billion aggregate principal amount of 2.3% senior notes and $750 million aggregate principal amount of floating rate senior notes at maturity. Additionally in 2022, the company refinanced its $2.0 billion floating rate five-year term loan. As part of the refinancing, the company repaid the existing $2.0 billion term loan due May 2025 and borrowed $2.0 billion under a new term loan at a lower floating rate. All other significant terms of the loan, including the maturity date, remained unchanged after the refinancing.

Financing Related to ImmunoGen and Cerevel Therapeutics Acquisitions

In connection with the acquisition of ImmunoGen and proposed acquisition of Cerevel Therapeutics, on December 6, 2023, AbbVie entered into a $9.0 billion 364-day bridge credit agreement and on December 21, 2023, AbbVie entered into a 364-day term loan credit agreement with an aggregate principal amount of $5.0 billion. No amounts were drawn under the bridge credit agreement or term loan credit agreement as of December 31, 2023.

Subsequent to 2023, on February 12, 2024, AbbVie borrowed $5.0 billion under the term loan credit agreement. See Note 5 for additional information.

Short-Term Borrowings

No commercial paper borrowings were issued during 2023 or 2022 and there were no commercial paper borrowings outstanding as of December 31, 2023 and December 31, 2022. Subsequent to 2023, AbbVie issued commercial paper borrowings of which $1.7 billion were outstanding as of the date of filing this Annual Report on Form 10-K.

In March 2023, AbbVie entered into an amended and restated five-year revolving credit facility. The amendment increased the unsecured revolving credit facility commitments from $4.0 billion to $5.0 billion and extended the maturity date of the facility from August 2023 to March 2028. This amended facility enables the company to borrow funds on an unsecured basis at variable interest rates and contains various covenants. At December 31, 2023, the company was in compliance with all covenants, and commitment fees under the credit facility were insignificant. No amounts were outstanding under the company's credit facilities as of December 31, 2023 and December 31, 2022.

Contingencies and Guarantees

In connection with the separation, AbbVie has indemnified Abbott for all liabilities resulting from the operation of AbbVie's business other than income tax liabilities with respect to periods prior to the distribution date and other liabilities as agreed to by AbbVie and Abbott. AbbVie has no material exposures to off-balance sheet arrangements and no special-purpose entities. In the ordinary course of business, AbbVie has periodically entered into third-party agreements, such as the assignment of product rights, which have resulted in AbbVie becoming secondarily liable for obligations for which AbbVie had previously been primarily liable. Based upon past experience, the likelihood of payments under these agreements is remote.