v3.24.1.u1
Financial Instruments and Fair Value Measures (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of amounts and location of derivatives on the condensed consolidated balance sheets
The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets:
Fair value –
Derivatives in asset position		Fair value –
Derivatives in liability position
(in millions)Balance sheet captionMarch 31, 2024December 31, 2023Balance sheet captionMarch 31, 2024December 31, 2023
Foreign currency forward exchange contracts
Designated as cash flow hedgesPrepaid expenses and other$30 $12 Accounts payable and accrued liabilities$4 $32 
Designated as net investment hedgesPrepaid expenses and other53 13 Accounts payable and accrued liabilities38 66 
Designated as net investment hedgesOther assets6 — Other long-term liabilities3 69 
Not designated as hedgesPrepaid expenses and other10 41 Accounts payable and accrued liabilities25 36 
Interest rate swap contracts
Designated as fair value hedgesPrepaid expenses and other— — Accounts payable and accrued liabilities1 — 
Designated as fair value hedgesOther assets— — Other long-term liabilities357 293 
Total derivatives$99 $66 $428 $496 
Schedule of pre-tax amounts of derivatives designated as cash flow hedges recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive loss:
Three months ended
March 31,
(in millions)20242023
Foreign currency forward exchange contracts
Designated as cash flow hedges$55 $(9)
Designated as net investment hedges134 (94)
Schedule of pre-tax amounts of derivatives designated as net investment hedges recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive loss:
Three months ended
March 31,
(in millions)20242023
Foreign currency forward exchange contracts
Designated as cash flow hedges$55 $(9)
Designated as net investment hedges134 (94)
Summary of pre-tax amounts and location of derivatives recognized in the condensed consolidated statements of earnings
The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI.
Three months ended
March 31,
(in millions)Statement of earnings caption20242023
Foreign currency forward exchange contracts
Designated as cash flow hedgesCost of products sold$12 $30 
Designated as net investment hedgesInterest expense, net27 28 
Not designated as hedgesNet foreign exchange loss(18)30 
Treasury rate lock agreements designated as cash flow hedgesInterest expense, net6 6 
Interest rate swap contracts
Designated as fair value hedgesInterest expense, net(65)35 
Debt designated as hedged item in fair value hedgesInterest expense, net65 (35)
Summary of bases used to measure assets and liabilities carried at fair value on a recurring basis
The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of March 31, 2024:
Basis of fair value measurement
(in millions)TotalQuoted prices in active markets for identical assets
(Level 1)		Significant other observable
inputs
(Level 2)		Significant unobservable inputs
(Level 3)
Assets
Cash and equivalents$18,067 $7,221 $10,846 $— 
Money market funds and time deposits10 — 10 — 
Debt securities26 — 26 — 
Equity securities110 84 26 — 
Foreign currency contracts99 — 99 — 
Total assets$18,312 $7,305 $11,007 $— 
Liabilities
Interest rate swap contracts$358 $— $358 $— 
Foreign currency contracts70 — 70 — 
Contingent consideration20,159 — — 20,159 
Total liabilities$20,587 $— $428 $20,159 
The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of December 31, 2023:
Basis of fair value measurement
(in millions)TotalQuoted prices in active markets for identical assets
(Level 1)		Significant other observable
inputs
(Level 2)		Significant unobservable inputs
(Level 3)
Assets
Cash and equivalents$12,814 $6,223 $6,591 $— 
Money market funds and time deposits10 — 10 — 
Debt securities26 — 26 — 
Equity securities111 86 25 — 
Foreign currency contracts66 — 66 — 
Total assets$13,027 $6,309 $6,718 $— 
Liabilities
Interest rate swap contracts$293 $— $293 $— 
Foreign currency contracts203 — 203 — 
Contingent consideration19,890 — — 19,890 
Total liabilities$20,386 $— $496 $19,890 
Summary of significant level 3 unobservable inputs
The fair value of the company's contingent consideration liabilities was calculated using the following significant unobservable inputs:
March 31, 2024December 31, 2023
Range
Weighted average(a)
Range
Weighted average(a)
Discount rate
4.6% - 5.8%
4.8%
4.3%- 5.9%
4.5%
Probability of payment for royalties by indication(b)
89% - 100%
99%
89% - 100%
99%
Projected year of payments
2024 - 2034
2030
2024 - 2034
2027
(a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.
(b) Excluding approved indications, the estimated probability of payment was 89% at March 31, 2024 and December 31, 2023.
Schedule of changes in fair value of Level 3 inputs The following table presents the changes in fair value of total contingent consideration liabilities which are measured using Level 3 inputs:
Three months ended
March 31,
(in millions)20242023
Beginning balance$19,890 $16,384 
Change in fair value recognized in net earnings660 1,872 
Payments(391)(325)
Ending balance$20,159 $17,931 
Schedule of book values, approximate fair values and bases used to measure certain financial instruments The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of March 31, 2024 are shown in the table below:
Basis of fair value measurement
(in millions)Book valueApproximate fair valueQuoted prices in active markets for identical assets
(Level 1)		Significant other 
observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)
Liabilities
Short-term borrowings$3 $3 $— $3 $— 
Current portion of long-term debt and finance lease obligations, excluding fair value hedges10,194 10,021 9,687 334 — 
Long-term debt and finance lease obligations, excluding fair value hedges64,140 60,887 60,469 418 — 
Total liabilities$74,337 $70,911 $70,156 $755 $— 
The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2023 are shown in the table below:
Basis of fair value measurement
(in millions)Book valueApproximate fair valueQuoted prices in active markets for identical assets
(Level 1)		Significant other 
observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)
Liabilities
Current portion of long-term debt and finance lease obligations, excluding fair value hedges$7,191 $7,069 $6,862 $207 $— 
Long-term debt and finance lease obligations, excluding fair value hedges52,460 49,541 48,983 558 — 
Total liabilities$59,651 $56,610 $55,845 $765 $— 
Schedule of Long-Term Debt Instruments
The following table summarizes issued debt in connection with the acquisition of ImmunoGen and proposed acquisition of Cerevel Therapeutics:
(in millions)
March 31, 2024
Senior Notes
4.80% Senior Notes due 2027$2,250 
4.80% Senior Notes due 20292,500 
4.95% Senior Notes due 20312,000 
5.05% Senior Notes due 20343,000 
5.35% Senior Notes due 2044750 
5.40% Senior Notes due 20543,000 
5.50% Senior Notes due 20641,500 
Total acquired debt outstanding
$15,000