v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases    
AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. 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 caption20242023
Assets
OperatingOther assets$723 $744 
FinanceProperty and equipment, net33 35 
Total lease assets$756 $779 
Liabilities
Operating
CurrentAccounts payable and accrued liabilities$178 $166 
NoncurrentOther long-term liabilities697 735 
Finance
CurrentCurrent portion of long-term debt and finance lease obligations17 15 
NoncurrentLong-term debt and finance lease obligations23 27 
Total lease liabilities$915 $943 
The following table summarizes the lease costs recognized in the consolidated statements of earnings:
years ended December 31 (in millions)202420232022
Operating lease cost$196 $189 $201 
Short-term lease cost65 28 67 
Variable lease cost86 88 71 
Total lease cost$347 $305 $339 
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 in 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.
Sublease income and finance lease costs were insignificant in 2024, 2023 and 2022.
The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases:
years ended December 31202420232022
Weighted-average remaining lease term (years)
Operating778
Finance532
Weighted-average discount rate
Operating3.3 %3.0 %2.6 %
Finance4.2 %3.6 %1.5 %
The following table presents supplementary cash flow information regarding the company's leases:
years ended December 31 (in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$204 $214 $212 
Right-of-use assets obtained in exchange for new operating lease liabilities159 173 235 
Finance lease cash flows were insignificant in 2024, 2023 and 2022.
The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2024:
(in millions)Operating
leases		Finance
leases
Total(a)
2025$204 $18 $222 
2026182 15 197 
2027145 4 149 
2028118 2 120 
2029102 1 103 
Thereafter223 2 225 
Total lease payments974 42 1,016 
Less: Interest99 2 101 
Present value of lease liabilities$875 $40 $915 
(a)Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant.
Leases Leases    
AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. 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 caption20242023
Assets
OperatingOther assets$723 $744 
FinanceProperty and equipment, net33 35 
Total lease assets$756 $779 
Liabilities
Operating
CurrentAccounts payable and accrued liabilities$178 $166 
NoncurrentOther long-term liabilities697 735 
Finance
CurrentCurrent portion of long-term debt and finance lease obligations17 15 
NoncurrentLong-term debt and finance lease obligations23 27 
Total lease liabilities$915 $943 
The following table summarizes the lease costs recognized in the consolidated statements of earnings:
years ended December 31 (in millions)202420232022
Operating lease cost$196 $189 $201 
Short-term lease cost65 28 67 
Variable lease cost86 88 71 
Total lease cost$347 $305 $339 
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 in 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.
Sublease income and finance lease costs were insignificant in 2024, 2023 and 2022.
The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases:
years ended December 31202420232022
Weighted-average remaining lease term (years)
Operating778
Finance532
Weighted-average discount rate
Operating3.3 %3.0 %2.6 %
Finance4.2 %3.6 %1.5 %
The following table presents supplementary cash flow information regarding the company's leases:
years ended December 31 (in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$204 $214 $212 
Right-of-use assets obtained in exchange for new operating lease liabilities159 173 235 
Finance lease cash flows were insignificant in 2024, 2023 and 2022.
The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2024:
(in millions)Operating
leases		Finance
leases
Total(a)
2025$204 $18 $222 
2026182 15 197 
2027145 4 149 
2028118 2 120 
2029102 1 103 
Thereafter223 2 225 
Total lease payments974 42 1,016 
Less: Interest99 2 101 
Present value of lease liabilities$875 $40 $915 
(a)Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant.