v3.25.4
Financial Instruments and Fair Value Measures (Tables)
 12 Months Ended
Dec. 31, 2025
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 caption20252024Balance sheet caption20252024
Foreign currency forward exchange contracts
Designated as cash flow hedgesPrepaid expenses and other$35 $119 Accounts payable and accrued liabilities$51 $5 
Designated as cash flow hedgesOther assets1 — Other long-term liabilities— — 
Designated as net investment hedgesPrepaid expenses and other— 4 Accounts payable and accrued liabilities220 — 
Designated as net investment hedgesOther assets— 148 Other long-term liabilities228 — 
Not designated as hedgesPrepaid expenses and other25 42 Accounts payable and accrued liabilities20 30 
Interest rate swap contracts
Designated as fair value hedgesPrepaid expenses and other— — Accounts payable and accrued liabilities21 — 
Designated as fair value hedgesOther assets30 — Other long-term liabilities— 231 
Total derivatives$91 $313  $540 $266 
Schedule of pre-tax amounts of derivatives recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
years ended in December 31 (in millions)202520242023
Foreign currency forward exchange contracts
Designated as cash flow hedges$(81)$192 $(2)
Designated as net investment hedges(674)435 (144)
Other— — (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 caption202520242023
Foreign currency forward exchange contracts
Designated as cash flow hedgesCost of products sold$66 $73 $77 
Designated as net investment hedgesInterest expense, net145 123 112 
Not designated as hedgesNet foreign exchange loss(31)6 33 
Interest rate swap contracts
Designated as fair value hedgesInterest expense, net134 62 98 
Debt designated as hedged item in fair value hedgesInterest expense, net(134)(62)(98)
OtherInterest expense, net21 23 18 
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, 2025 and December 31, 2024:
December 31, 2025December 31, 2024
Basis of fair value measurementBasis of fair value measurement
(in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets
Cash and equivalents$5,229 $4,868 $361 $— $5,524 $5,179 $345 $— 
Money market funds and time deposits10 — 10 — 10 — 10 — 
Debt securities24 — 24 — 33 — 33 — 
Equity securities103 62 41 — 98 70 28 — 
Interest rate swap contracts30 — 30 — — — — — 
Foreign currency contracts61 — 61 — 313 — 313 — 
Total assets$5,457 $4,930 $527 $— $5,978 $5,249 $729 $— 
Liabilities
Interest rate swap contracts$21 $— $21 $— $231 $— $231 $— 
Foreign currency contracts519 — 519 — 35 — 35 — 
Financing liability378 — — 378 328 — — 328 
Contingent consideration25,374 — — 25,374 21,666 — — 21,666 
Total liabilities$26,292 $— $540 $25,752 $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:
20252024
years ended December 31 (in millions)Range
Weighted Average(a)
Range
Weighted Average(a)
Discount rate
3.7% - 4.8%
4.0 %
4.6% - 5.2%
4.8 %
Probability of payment for royalties by indication100 %100 %100 %100 %
Projected year of payments
2026 - 2037
2030
2025 - 2034
2029
(a)Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.
 [1]
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)202520242023
Beginning balance$21,666 $19,890 $16,384 
Additions(a)
78 — — 
Change in fair value recognized in net earnings6,495 3,771 5,128 
Payments(2,865)(1,995)(1,622)
Ending balance$25,374 $21,666 $19,890 
(a)Additions during the year ended December 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 value, fair value and bases used to measure the fair value of certain financial instruments as of December 31, 2025 are shown in the table below:
Basis of fair value measurement
(in millions)Book valueFair valueLevel 1Level 2Level 3
Liabilities
Short-term borrowings$2,499 $2,497 $— $2,497 $— 
Current portion of long-term debt and finance lease obligations (a)
6,016 5,985 5,965 20 — 
Long-term debt and finance lease obligations (a)
58,650 55,822 53,381 2,441 — 
Total liabilities$67,165 $64,304 $59,346 $4,958 $— 
(a)Excludes the effects of fair value hedges and financing liability.
The book value, fair value and bases used to measure the fair value of certain financial instruments as of December 31, 2024 are shown in the table below:
Basis of fair value measurement
(in millions)
Book value
Fair valueLevel 1Level 2Level 3
Liabilities
Current portion of long-term debt and finance lease obligations (a)
$6,797 $6,767 $6,620 $147 $— 
Long-term debt and finance lease obligations (a)
60,243 55,836 53,441 2,395 — 
Total liabilities$67,040 $62,603 $60,061 $2,542 $— 
(a)Excludes the effects of fair value hedges and financing liability.
[1] Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.