v3.25.0.1
Financial Instruments and Fair Value Measures (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of amounts and location of derivatives on the consolidated balance sheets
The following table summarizes the amounts and location of AbbVie's derivative instruments on the consolidated balance sheets:
Fair value -
Derivatives in asset position
Fair value -
Derivatives in liability position
as of December 31 (in millions)Balance sheet caption20242023Balance sheet caption20242023
Foreign currency forward exchange contracts
Designated as cash flow hedgesPrepaid expenses and other$119 $12 Accounts payable and accrued liabilities$5 $32 
Designated as net investment hedgesPrepaid expenses and other4 13 Accounts payable and accrued liabilities— 66 
Designated as net investment hedgesOther assets148 — Other long-term liabilities— 69 
Not designated as hedgesPrepaid expenses and other42 41 Accounts payable and accrued liabilities30 36 
Interest rate swap contracts
Designated as fair value hedgesOther assets— — Other long-term liabilities231 293 
Total derivatives$313 $66  $266 $496 
Schedule of pre-tax amounts of derivatives recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
years ended in December 31 (in millions)202420232022
Foreign currency forward exchange contracts
Designated as cash flow hedges$192 $(2)$103 
Designated as net investment hedges435 (144)395 
Cross-currency swap contracts designated as cash flow hedges— (6)— 
Interest rate swap contracts designated as cash flow hedges— — 6 
Summary of pre-tax amounts and location of derivatives recognized in the consolidated statement of earnings
The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI.
years ended December 31 (in millions)Statement of earnings caption202420232022
Foreign currency forward exchange contracts
Designated as cash flow hedgesCost of products sold$73 $77 $82 
Designated as net investment hedgesInterest expense, net123 112 94 
Not designated as hedgesNet foreign exchange loss6 33 (156)
Treasury rate lock agreements designated as cash flow hedgesInterest expense, net23 24 23 
Cross-currency swap contracts designated as cash flow hedgesNet foreign exchange loss— (6)— 
Interest rate swap contracts
Designated as cash flow hedgesInterest expense, net— — (1)
Designated as fair value hedgesInterest expense, net62 98 (402)
Debt designated as hedged item in fair value hedgesInterest expense, net(62)(98)402 
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 consolidated balance sheet as of December 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$5,524 $5,179 $345 $— 
Money market funds and time deposits10 — 10 — 
Debt securities33 — 33 — 
Equity securities98 70 28 — 
Foreign currency contracts313 — 313 — 
Total assets$5,978 $5,249 $729 $— 
Liabilities
Interest rate swap contracts$231 $— $231 $— 
Foreign currency contracts35 — 35 — 
Financing liability328 — — 328 
Contingent consideration21,666 — — 21,666 
Total liabilities$22,260 $— $266 $21,994 
The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the 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:
20242023
years ended December 31 (in millions)Range
Weighted Average(a)
Range
Weighted Average(a)
Discount rate
4.6% - 5.2%
4.8%
4.3% - 5.9%
4.5 %
Probability of payment for royalties by indication(b)
100%
100%
89% - 100%
99 %
Projected year of payments
2025 - 2034
2029
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 December 31, 2023.
 [1],[2]
Summary of changes in fair value of Level 3 inputs The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs:
years ended December 31 (in millions)202420232022
Beginning balance$19,890 $16,384 $14,887 
Additions(a)
— — 32 
Change in fair value recognized in net earnings3,771 5,128 2,761 
Payments(1,995)(1,622)(1,296)
Ending balance$21,666 $19,890 $16,384 
(a)Additions during the year ended December 31, 2022, represent contingent consideration liabilities assumed in the DJS acquisition.
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 December 31, 2024 are shown in the table below:
Basis of fair value measurement
(in millions)Book value Approximate fair valuesQuoted 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$6,797 $6,767 $6,620 $147 $— 
Long-term debt and finance lease obligations, excluding fair value hedges and financing liability60,243 55,836 53,441 2,395 — 
Total liabilities$67,040 $62,603 $60,061 $2,542 $— 
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 value Approximate fair valuesQuoted 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 $— 
[1] Excluding approved indications, the estimated probability of payment was 89% at December 31, 2023.
[2] Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.