v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Summary of amounts and location of operating and finance leases on the consolidated balance sheets The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheets:
as of December 31 (in millions)Balance sheet caption20232022
Assets
OperatingOther assets$744 $737 
FinanceProperty and equipment, net35 25 
Total lease assets$779 $762 
Liabilities
Operating
CurrentAccounts payable and accrued liabilities$166 $166 
NoncurrentOther long-term liabilities735 754 
Finance
CurrentCurrent portion of long-term debt and finance lease obligations15 17 
NoncurrentLong-term debt and finance lease obligations27 17 
Total lease liabilities$943 $954 
Summary of lease costs recognized in the condensed consolidated statements of earnings
The following table summarizes the lease costs recognized in the consolidated statements of earnings:
years ended December 31 (in millions)202320222021
Operating lease cost$189 $201 $226 
Short-term lease cost28 67 56 
Variable lease cost88 71 71 
Total lease cost$305 $339 $353 
In December 2022, the company entered into an agreement to sublease a portion of its Madison, New Jersey office space through the end of the original lease maturity in 2030. As a result of this agreement, the company recognized an impairment loss on its right-of-use asset of $69 million and wrote-off the related leasehold improvements of $37 million. These losses were recorded to SG&A expense in the consolidated statements of earnings for the year ended December 31, 2022. The company used a discounted cash flows method to value the right-of-use asset to determine the impairment amount.
Schedule of weighted-average remaining lease term and weighted-average discount rate for operating and finance leases
The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases:
years ended December 31202320222021
Weighted-average remaining lease term (years)
Operating787
Finance323
Weighted-average discount rate
Operating3.0 %2.6 %2.4 %
Finance3.6 %1.5 %1.1 %
Schedule of supplementary cash flow information regarding the company's leases
The following table presents supplementary cash flow information regarding the company's leases:
years ended December 31 (in millions)202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$214 $212 $236 
Right-of-use assets obtained in exchange for new operating lease liabilities173 235 66 
Summary of future maturities of AbbVie's operating lease liabilities
The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2023:
(in millions)Operating
leases		Finance
leases
Total(a)
2024$194 $15 $209 
2025169 14 183 
2026145 12 157 
2027115 2 117 
202893 — 93 
Thereafter292 — 292 
Total lease payments1,008 43 1,051 
Less: Interest107 1 108 
Present value of lease liabilities$901 $42 $943 
(a)Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant.
Summary of future maturities of AbbVie's finance lease liabilities
The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2023:
(in millions)Operating
leases		Finance
leases
Total(a)
2024$194 $15 $209 
2025169 14 183 
2026145 12 157 
2027115 2 117 
202893 — 93 
Thereafter292 — 292 
Total lease payments1,008 43 1,051 
Less: Interest107 1 108 
Present value of lease liabilities$901 $42 $943 
(a)Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant.