v3.25.1
Financial Instruments and Fair Value Measures (Tables)
 3 Months Ended
Mar. 31, 2025
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,
2025		December 31,
2024		Balance sheet captionMarch 31,
2025		December 31,
2024
Foreign currency forward exchange contracts
Designated as cash flow hedgesPrepaid expenses and other$48 $119 Accounts payable and accrued liabilities$1 $5 
Designated as cash flow hedgesOther assets1 — Other long-term liabilities— — 
Designated as net investment hedgesPrepaid expenses and other2 4 Accounts payable and accrued liabilities43 — 
Designated as net investment hedgesOther assets20 148 Other long-term liabilities35 — 
Not designated as hedgesPrepaid expenses and other16 42 Accounts payable and accrued liabilities38 30 
Interest rate swap contracts
Designated as fair value hedgesOther assets43 — Other long-term liabilities135 231 
Total derivatives$130 $313 $252 $266 
Schedule of pre-tax amounts of derivatives designated as cash flow hedges recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
Three months ended
March 31,
(in millions)20252024
Foreign currency forward exchange contracts
Designated as cash flow hedges$(19)$55 
Designated as net investment hedges(193)134 
Schedule of pre-tax amounts of derivatives designated as net investment hedges recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
Three months ended
March 31,
(in millions)20252024
Foreign currency forward exchange contracts
Designated as cash flow hedges$(19)$55 
Designated as net investment hedges(193)134 
Summary of pre-tax amounts and location of derivatives recognized in the condensed consolidated statements of earnings
The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI.
Three months ended
March 31,
(in millions)Statement of earnings caption20252024
Foreign currency forward exchange contracts
Designated as cash flow hedgesCost of products sold$(1)$12 
Designated as net investment hedgesInterest expense, net34 27 
Not designated as hedgesNet foreign exchange loss(29)(18)
Interest rate swap contracts
Designated as fair value hedgesInterest expense, net55 (65)
Debt designated as hedged item in fair value hedgesInterest expense, net(55)65 
Other
Interest expense, net5 6 
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, 2025:
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$5,175 $4,834 $341 $— 
Money market funds and time deposits10 — 10 — 
Debt securities36 — 36 — 
Equity securities85 54 31 — 
Interest rate swap contracts43 — 43 — 
Foreign currency contracts87 — 87 — 
Total assets$5,436 $4,888 $548 $— 
Liabilities
Interest rate swap contracts$135 $— $135 $— 
Foreign currency contracts117 — 117 — 
Financing liability332 — — 332 
Contingent consideration22,713 — — 22,713 
Total liabilities$23,297 $— $252 $23,045 
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, 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 
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, 2025December 31, 2024
Range
Weighted average(a)
Range
Weighted average(a)
Discount rate
4.2% - 4.9%
4.5%
4.6% - 5.2%
4.8%
Probability of payment for royalties by indication
100%
100%
100%
100%
Projected year of payments
2025 - 2034
2029
2025 - 2034
2029
(a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.
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)20252024
Beginning balance$21,666 $19,890 
Additions(a)
78 — 
Change in fair value recognized in net earnings1,518 660 
Payments(549)(391)
Ending balance$22,713 $20,159 
(a) Additions during the three months ended March 31, 2025, represent contingent consideration liabilities related to the Nimble 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 March 31, 2025 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$1,593 $1,593 $— $1,593 $— 
Current portion of long-term debt and finance lease obligations, excluding fair value hedges3,767 3,765 3,748 17 — 
Long-term debt and finance lease obligations, excluding fair value hedges and financing liability
64,350 60,904 58,486 2,418 — 
Total liabilities$69,710 $66,262 $62,234 $4,028 $— 
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 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$6,797 $6,767 $6,620 $147 $— 
Long-term debt and finance lease obligations, excluding fair value hedges and financing liability
60,243 55,836 53,441 2,395 — 
Total liabilities$67,040 $62,603 $60,061 $2,542 $— 
Schedule of Long-Term Debt Instruments
In February 2025, the company issued $4.0 billion aggregate principal amount of unsecured senior notes. The following table summarizes the issued debt:
(in millions)
Senior Notes
4.65% Senior Notes due 2028
$1,250 
4.875% Senior Notes due 2030
1,000 
5.20% Senior Notes due 2035
1,000 
5.60% Senior Notes due 2055
750 
Total debt issued$4,000