v3.25.4
Post-Employment Benefits
 12 Months Ended
Dec. 31, 2025
Postemployment Benefits [Abstract]  
Post-Employment Benefits Post-Employment Benefits
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 recognized on the consolidated balance sheets as of December 31, 2025 and 2024.
The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans:
Defined benefit plansOther post-employment plans
as of and for the years ended December 31 (in millions)2025202420252024
Projected benefit obligations
Beginning of period$8,964 $9,544 $786 $796 
Service cost264 286 40 43 
Interest cost484 451 44 41 
Actuarial (gain) loss124 (855)(12)(62)
Benefits paid(371)(347)(37)(31)
Other, primarily foreign currency translation adjustments193 (115)1 (1)
End of period9,658 8,964 822 786 
Fair value of plan assets
Beginning of period10,551 9,839 — — 
Actual return on plan assets1,434 865 — — 
Company contributions348 326 37 31 
Benefits paid(371)(347)(37)(31)
Other, primarily foreign currency translation adjustments242 (132)— — 
End of period12,204 10,551 — — 
Funded status, end of period$2,546 $1,587 $(822)$(786)
Amounts recognized on the consolidated balance sheets
Other assets$3,196 $2,097 $— $— 
Accounts payable and accrued liabilities(23)(20)(39)(42)
Other long-term liabilities(627)(490)(783)(744)
Net asset (obligation)$2,546 $1,587 $(822)$(786)
Actuarial loss, net$770 $1,303 $181 $203 
Prior service cost (credit)1 1 (225)(261)
Accumulated other comprehensive loss (income)$771 $1,304 $(44)$(58)
Related to international defined benefit plans the projected benefit obligations in the table above included $2.3 billion at December 31, 2025 and $2.2 billion at December 31, 2024.
For plans reflected in the table above, the accumulated benefit obligations were $8.7 billion at December 31, 2025 and $8.1 billion at December 31, 2024.
The 2025 actuarial loss of $124 million for qualified pension plans was primarily driven by experience losses, partially offset by higher discount rates. The 2024 actuarial gain of $855 million for qualified pension plans was primarily driven by higher discount rates.
Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets
as of December 31 (in millions)20252024
Accumulated benefit obligation$647 $527 
Fair value of plan assets99 94 
Information For Pension Plans With A Projected Benefit Obligation In Excess Of Plan Assets
as of December 31 (in millions)20252024
Projected benefit obligation$749 $775 
Fair value of plan assets99 265 
Amounts Recognized in Other Comprehensive Income (Loss)
The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss):
years ended December 31 (in millions)202520242023
Defined benefit plans
Actuarial gain$(478)$(935)$(16)
Amortization of prior service cost— — (1)
Amortization of actuarial loss(31)(52)(16)
Foreign exchange gain and other(24)— (44)
Total gain$(533)$(987)$(77)
Other post-employment plans
Actuarial loss (gain)$(12)$(62)$89 
Amortization of prior service credit36 36 36 
Amortization of actuarial loss(10)(17)(12)
Total loss (gain)$14 $(43)$113 
Net Periodic Benefit Cost
years ended December 31 (in millions)202520242023
Defined benefit plans
Service cost$264 $286 $270 
Interest cost484 451 432 
Expected return on plan assets(832)(785)(723)
Amortization of prior service cost— — 1 
Amortization of actuarial loss31 52 16 
Net periodic benefit cost (credit)$(53)$4 $(4)
Other post-employment plans
Service cost$40 $43 $37 
Interest cost44 41 37 
Amortization of prior service credit(36)(36)(36)
Amortization of actuarial loss10 17 12 
Net periodic benefit cost$58 $65 $50 
The components of net periodic benefit cost other than service cost are included in other expense, net in the consolidated statements of earnings.
Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date
as of December 3120252024
Defined benefit plans
Discount rate5.5%5.4%
Rate of compensation increases4.1%4.4%
Cash balance interest crediting rate5.0%4.0%
Other post-employment plans
Discount rate5.6%5.7%
The assumptions used in calculating the December 31, 2025 measurement date benefit obligations will be used in the calculation of net periodic benefit cost in 2026.
Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost
years ended December 31202520242023
Defined benefit plans
Discount rate for determining service cost5.4%4.8%5.0%
Discount rate for determining interest cost5.2%4.8%4.9%
Expected long-term rate of return on plan assets7.6%7.5%7.3%
Expected rate of change in compensation4.1%4.4%4.8%
Cash balance interest crediting rate4.0%4.4%2.7%
Other post-employment plans
Discount rate for determining service cost5.9%5.2%5.3%
Discount rate for determining interest cost5.5%4.9%5.1%
For the December 31, 2025 post-retirement health care obligations remeasurement, the company assumed a 6.6% pre-65 (2.2% 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% (1.6% post-65) in 2035 and remain at that level thereafter. For purposes of measuring the 2025 post-retirement health care costs, 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) for 2033 and remain at that level thereafter.
Defined Benefit Pension Plan Assets
December 31, 2025December 31, 2024
Basis of fair value measurementBasis of fair value measurement
as of December 31 (in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Equities
U.S. large cap(a)
$1,376 $1,376 $— $— $1,131 $1,131 $— $— 
U.S. mid cap(b)
130 130 — — 176 176 — — 
International(c)
573 573 — — 408 408 — — 
Fixed income securities
U.S. government(d)
405 6 399 — 414 18 396 — 
Corporate debt(d)
668 84 584 — 609 29 580 — 
Non-U.S. government(d)
447 146 301 — 346 183 163 — 
Other(d)
56 51 5 — 20 15 5 — 
Absolute return funds(e)
152 20 132 — 176 82 94 — 
Other(f)
468 467 1 — 351 350 1 — 
Total$4,275 $2,853 $1,422 $— $3,631 $2,392 $1,239 $— 
Total assets measured at NAV7,929 6,920 
Fair value of plan assets$12,204 $10,551 
(a)A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices.
(b)A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices.
(c)A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets.
(d)Securities held by actively managed accounts, index funds and mutual funds.
(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.
(f)Investments in cash and equivalents.
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 2025 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.
Expected Benefit Payments
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
2026$396 $39 
2027422 43 
2028449 47 
2029482 51 
2030517 55 
2031 to 20353,054 342 
Defined Contribution Plan
AbbVie maintains defined contribution savings plans for the benefit of its eligible employees. The expense recognized for these plans was $504 million in 2025, $425 million in 2024 and $398 million in 2023. 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.