AbbVie sponsors various pension and other post-employment benefit plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. In addition, AbbVie provides medical benefits, primarily to eligible retirees in the United States and Puerto Rico, through other post-retirement benefit plans. Net obligations for these plans have been reflected on the consolidated balance sheets as of December 31, 2024 and 2023.

The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans:


	Defined benefit plans				Other post-employment plans
as of and for the years ended December 31 (in millions)	2024		2023		2024		2023
Projected benefit obligations
Beginning of period	$	9,544	$	8,588	$	796	$	667
Service cost	286		270		43		37
Interest cost	451		432		41		37


Actuarial (gain) loss	(855)		491		(62)		89
Benefits paid	(347)		(316)		(31)		(35)


Other, primarily foreign currency translation adjustments	(115)		79		(1)		1
End of period	8,964		9,544		786		796
Fair value of plan assets
Beginning of period	9,839		8,472		—		—
Actual return on plan assets	865		1,230		—		—
Company contributions	326		366		31		35

Benefits paid	(347)		(316)		(31)		(35)


Other, primarily foreign currency translation adjustments	(132)		87		—		—
End of period	10,551		9,839		—		—
Funded status, end of period	$	1,587	$	295	$	(786)	$	(796)

Amounts recognized on the consolidated balance sheets
Other assets	$	2,097	$	1,086	$	—	$	—
Accounts payable and accrued liabilities	(20)		(17)		(42)		(32)
Other long-term liabilities	(490)		(774)		(744)		(764)
Net asset (obligation)	$	1,587	$	295	$	(786)	$	(796)
Actuarial loss, net	$	1,303	$	2,290	$	203	$	282
Prior service cost (credit)	1		1		(261)		(297)
Accumulated other comprehensive loss (income)	$	1,304	$	2,291	$	(58)	$	(15)

The 2024 actuarial gain of $855 million for qualified pension plans and actuarial gain of $62 million for other post-employment plans were primarily driven by an increase in the discount rate. The 2023 actuarial loss of $491 million for qualified pension plans and actuarial loss of $89 million for other post-employment plans were primarily driven by a decrease in the discount rate and changes to experience impact and medical trends assumptions.

The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss):


years ended December 31 (in millions)	2024		2023		2022
Defined benefit plans
Actuarial gain	$	(935)	$	(16)	$	(925)

Amortization of prior service cost	—		(1)		(2)
Amortization of actuarial loss	(52)		(16)		(231)
Foreign exchange loss (gain) and other	—		(44)		17
Total gain	$	(987)	$	(77)	$	(1,141)
Other post-employment plans
Actuarial loss (gain)	$	(62)	$	89	$	(229)
Prior service credit	—		—		(2)
Amortization of prior service credit	36		36		38
Amortization of actuarial loss	(17)		(12)		(26)
Total loss (gain)	$	(43)	$	113	$	(219)

Net Periodic Benefit Cost


years ended December 31 (in millions)	2024		2023		2022
Defined benefit plans
Service cost	$	286	$	270	$	454
Interest cost	451		432		297
Expected return on plan assets	(785)		(723)		(712)
Amortization of prior service cost	—		1		2
Amortization of actuarial loss	52		16		231
Net periodic benefit cost (credit)	$	4	$	(4)	$	272
Other post-employment plans
Service cost	$	43	$	37	$	51
Interest cost	41		37		23
Amortization of prior service credit	(36)		(36)		(38)
Amortization of actuarial loss	17		12		26
Net periodic benefit cost	$	65	$	50	$	62

Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date


as of December 31	2024		2023
Defined benefit plans
Discount rate	5.4	%	4.8	%
Rate of compensation increases	4.4	%	4.8	%
Cash balance interest crediting rate	4.0	%	4.4	%
Other post-employment plans
Discount rate	5.7	%	5.1	%

Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost


years ended December 31	2024		2023		2022
Defined benefit plans
Discount rate for determining service cost	4.8	%	5.0	%	3.0	%
Discount rate for determining interest cost	4.8	%	4.9	%	2.6	%
Expected long-term rate of return on plan assets	7.5	%	7.3	%	7.1	%
Expected rate of change in compensation	4.4	%	4.8	%	5.2	%
Cash balance interest crediting rate	4.4	%	2.7	%	2.7	%
Other post-employment plans
Discount rate for determining service cost	5.2	%	5.3	%	3.3	%
Discount rate for determining interest cost	4.9	%	5.1	%	2.7	%

For the December 31, 2024 post-retirement health care obligations remeasurement, the company assumed a 6.6% pre-65 (2.0% post-65) annual rate of increase in the per capita cost of covered health care benefits. The pre-65 rate was assumed to decrease gradually to 4.5% (1.8% post-65) in 2033 and remain at that level thereafter. For purposes of measuring the 2024 post-retirement health care costs, the company assumed a 7.4% pre-65 (2.1% post-65) annual rate of increase in the per capita cost of covered health care benefits. The pre-65 rate was assumed to decrease gradually to 4.5% (1.8% post-65) for 2032 and remain at that level thereafter.

Defined Benefit Pension Plan Assets


			Basis of fair value measurement
as of December 31 (in millions)	2024		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equities
U.S. large cap(a)	$	1,131	$	1,131	$	—	$	—
U.S. mid cap(b)	176		176		—		—
International(c)	408		408		—		—
Fixed income securities
U.S. government securities(d)	414		18		396		—
Corporate debt instruments(d)	609		29		580		—
Non-U.S. government securities(d)	346		183		163		—
Other(d)	20		15		5		—
Absolute return funds(e)	176		82		94		—

Other(f)	351		350		1		—
Total	$	3,631	$	2,392	$	1,239	$	—
Total assets measured at NAV	6,920
Fair value of plan assets	$	10,551


			Basis of fair value measurement
as of December 31 (in millions)	2023		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Equities
U.S. large cap(a)	$	1,018	$	1,018	$	—	$	—
U.S. mid cap(b)	173		173		—		—
International(c)	488		488		—		—
Fixed income securities
U.S. government securities(d)	246		62		184		—
Corporate debt instruments(d)	714		155		559		—
Non-U.S. government securities(d)	461		301		160		—
Other(d)	126		124		2		—
Absolute return funds(e)	155		66		89		—

Other(f)	414		413		1		—
Total	$	3,795	$	2,800	$	995	$	—
Total assets measured at NAV	6,044
Fair value of plan assets	$	9,839

(e)Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets.

Equities and registered investment companies having quoted prices are valued at the published market prices. Fixed income securities that are valued using significant other observable inputs are quoted at prices obtained from independent financial service industry-recognized vendors. Investments held in pooled investment funds, common collective trusts or limited partnerships are valued at the net asset value (NAV) practical expedient to estimate fair value. The NAV is provided by the fund administrator and is based on the value of the underlying assets owned by the fund minus its liabilities.

The investment mix of equity securities, fixed income and other asset allocation strategies is based upon achieving a desired return, balancing higher return, more volatile equity securities and lower return, less volatile fixed income securities. Investment allocations are established for each plan and are generally made across a range of markets, industry sectors, capitalization sizes and in the case of fixed income securities, maturities and credit quality. The 2024 target investment allocation for the AbbVie Pension Plan was 62.5% in equity securities, 22.5% in fixed income securities and 15% in asset allocation strategies and other holdings. There are no known significant concentrations of risk in the plan assets of the AbbVie Pension Plan or of any other plans.

The expected return on plan assets assumption for each plan is based on management's expectations of long-term average rates of return to be achieved by the underlying investment portfolio. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions.

The following table summarizes total benefit payments expected to be paid to plan participants including payments funded from both plan and company assets:


years ending December 31 (in millions)	Defined benefit plans		Other post-employment plans
2025	$	363	$	42
2026	383		46
2027	410		49
2028	435		53
2029	464		57
2030 to 2034	3,007		330

AbbVie maintains defined contribution savings plans for the benefit of its eligible employees. The expense recognized for these plans was $425 million in 2024, $398 million in 2023 and $474 million in 2022. AbbVie provides certain other post-employment benefits, primarily salary continuation arrangements, to qualifying employees and accrues for the related cost over the service lives of the employees.