Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | AbbVie Inc. | |
Entity Central Index Key | 0001551152 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 1,478,332,177 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenues | $ 7,828 | $ 7,934 |
Cost of products sold | 1,694 | 1,927 |
Selling, general and administrative | 1,680 | 1,791 |
Research and development | 1,289 | 1,244 |
Acquired in-process research and development | 155 | 69 |
Total operating costs and expenses | 4,818 | 5,031 |
Operating earnings | 3,010 | 2,903 |
Interest expense, net | 325 | 251 |
Net foreign exchange loss | 6 | 8 |
Other (income) expense, net | 135 | (153) |
Earnings before income tax expense | 2,544 | 2,797 |
Income tax expense | 88 | 14 |
Net earnings | $ 2,456 | $ 2,783 |
Per share data | ||
Basic earnings per share (in dollars per share) | $ 1.65 | $ 1.74 |
Diluted earnings per share (in dollars per share) | $ 1.65 | $ 1.74 |
Weighted-average basic shares outstanding (in shares) | 1,480 | 1,591 |
Weighted-average diluted shares outstanding (in shares) | 1,483 | 1,596 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 2,456 | $ 2,783 |
Foreign currency translation adjustments, net of tax expense (benefit) of $1 for the three months ended March 31, 2019 and $(3) for the three months ended March 31, 2018 | (103) | 189 |
Net investment hedging activities, net of tax expense (benefit) of $19 for the three months ended March 31, 2019 and $(30) for the three months ended March 31, 2018 | 65 | (104) |
Pension and post-employment benefits, net of tax expense (benefit) of $6 for the three months ended March 31, 2019 and $9 for the three months ended March 31, 2018 | 25 | 22 |
Marketable security activities, net of tax expense (benefit) of $— for the three months ended March 31, 2019 and $— for the three months ended March 31, 2018 | 7 | (7) |
Cash flow hedging activities, net of tax expense (benefit) of $(7) for the three months ended March 31, 2019 and $(1) for the three months ended March 31, 2018 | (30) | (3) |
Other comprehensive income (loss) | (36) | 97 |
Comprehensive income | $ 2,420 | $ 2,880 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax expense (benefit) | $ 1 | $ (3) |
Net investment hedging activities, tax expense (benefit) | 19 | (30) |
Pension and post-employment benefits, tax expense (benefit) | 6 | 9 |
Marketable security activities, tax expense (benefit) | 0 | 0 |
Cash flow hedging activities, tax expense (benefit) | $ (7) | $ (1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and equivalents | $ 4,897 | $ 7,289 |
Short-term investments | 331 | 772 |
Accounts receivable, net | 5,680 | 5,384 |
Inventories | 1,702 | 1,605 |
Prepaid expenses and other | 1,803 | 1,895 |
Total current assets | 14,413 | 16,945 |
Investments | 1,477 | 1,420 |
Property and equipment, net | 2,860 | 2,883 |
Intangible assets, net | 20,846 | 21,233 |
Goodwill | 15,606 | 15,663 |
Other assets | 1,567 | 1,208 |
Total assets | 56,769 | 59,352 |
Current liabilities | ||
Short-term borrowings | 499 | 3,699 |
Current portion of long-term debt and finance lease obligations | 1,579 | 1,609 |
Accounts payable and accrued liabilities | 11,826 | 11,931 |
Total current liabilities | 13,904 | 17,239 |
Long-term debt and finance lease obligations | 35,066 | 35,002 |
Deferred income taxes | 1,116 | 1,067 |
Other long-term liabilities | 14,509 | 14,490 |
Commitments and contingencies | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,780,885,882 shares issued as of March 31, 2019 and 1,776,510,871 as of December 31, 2018 | 18 | 18 |
Common stock held in treasury, at cost, 302,648,065 shares as of March 31, 2019 and 297,686,473 as of December 31, 2018 | (24,502) | (24,108) |
Additional paid-in capital | 14,940 | 14,756 |
Retained earnings | 4,234 | 3,368 |
Accumulated other comprehensive loss | (2,516) | (2,480) |
Total stockholders’ equity (deficit) | (7,826) | (8,446) |
Total liabilities and equity | $ 56,769 | $ 59,352 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Common stock, issued (in shares) | 1,780,885,882 | 1,776,510,871 |
Common stock held in treasury, at cost (in shares) | 302,648,065 | 297,686,473 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock | Treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Beginning balance at Dec. 31, 2017 | $ 5,097 | $ 18 | $ (11,923) | $ 14,270 | $ 5,459 | $ (2,727) |
Beginning balance (in shares) at Dec. 31, 2017 | 1,592 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 2,783 | 2,783 | 0 | |||
Other comprehensive income, net of tax | 97 | 97 | ||||
Dividends declared | (1,532) | (1,532) | ||||
Purchases of treasury stock | (1,431) | (1,431) | ||||
Purchases of treasury stock (in shares) | (12) | |||||
Stock-based compensation plans and other | 272 | 23 | 249 | |||
Stock-based compensation plans and other (in shares) | 7 | |||||
Ending balance at Mar. 31, 2018 | 3,553 | $ 18 | (13,331) | 14,519 | 4,977 | (2,630) |
Ending balance (in shares) at Mar. 31, 2018 | 1,587 | |||||
Beginning balance at Dec. 31, 2018 | (8,446) | $ 18 | (24,108) | 14,756 | 3,368 | (2,480) |
Beginning balance (in shares) at Dec. 31, 2018 | 1,479 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 2,456 | $ 0 | 0 | 0 | 2,456 | 0 |
Other comprehensive income, net of tax | (36) | 0 | 0 | 0 | 0 | (36) |
Dividends declared | (1,590) | 0 | 0 | 0 | (1,590) | 0 |
Purchases of treasury stock | (419) | $ 0 | (419) | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (5) | |||||
Stock-based compensation plans and other | 209 | 25 | 184 | 0 | 0 | |
Stock-based compensation plans and other (in shares) | 4 | |||||
Ending balance at Mar. 31, 2019 | $ (7,826) | $ 18 | $ (24,502) | $ 14,940 | $ 4,234 | $ (2,516) |
Ending balance (in shares) at Mar. 31, 2019 | 1,478 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net earnings | $ 2,456 | $ 2,783 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Depreciation | 118 | 115 |
Amortization of intangible assets | 385 | 330 |
Change in fair value of contingent consideration liabilities | 169 | (148) |
Stock-based compensation | 189 | 191 |
Upfront costs and milestones related to collaborations | 195 | 101 |
Other, net | (33) | 101 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (316) | (681) |
Inventories | (128) | (71) |
Prepaid expenses and other assets | (112) | (267) |
Accounts payable and other liabilities | 94 | 191 |
Cash flows from operating activities | 3,017 | 2,645 |
Cash flows from investing activities | ||
Acquisitions and investments | (320) | (372) |
Acquisitions of property and equipment | (107) | (119) |
Purchases of investment securities | (194) | (267) |
Sales and maturities of investment securities | 594 | 311 |
Cash flows from investing activities | (27) | (447) |
Cash flows from financing activities | ||
Net change in commercial paper borrowings | (200) | (33) |
Repayments of other short-term borrowings | (3,000) | 0 |
Repayments of long-term debt and lease obligations | 0 | (7) |
Dividends paid | (1,588) | (1,137) |
Purchases of treasury stock | (620) | (1,431) |
Proceeds from the exercise of stock options | 4 | 62 |
Other, net | 21 | 37 |
Cash flows from financing activities | (5,383) | (2,509) |
Effect of exchange rate changes on cash and equivalents | 1 | 15 |
Net change in cash and equivalents | (2,392) | (296) |
Cash and equivalents, beginning of period | 7,289 | 9,303 |
Cash and equivalents, end of period | $ 4,897 | $ 9,007 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Historical Presentation The unaudited interim condensed consolidated financial statements of AbbVie Inc. (AbbVie or the company) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements and notes included in the company’s Annual Report on Form 10-K for the year ended December 31, 2018 . It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of the company’s financial position and operating results. Net revenues and net earnings for any interim period are not necessarily indicative of future or annual results. Certain reclassifications were made to conform the prior period interim condensed consolidated financial statements to the current period presentation. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU No. 2016-02 In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) . The standard outlines a comprehensive lease accounting model that supersedes the previous lease guidance and requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. AbbVie adopted the standard in the first quarter of 2019 using the modified retrospective method. Results for reporting periods beginning after December 31, 2018 have been presented in accordance with the standard, while results for prior periods have not been adjusted and continue to be reported in accordance with AbbVie's historical accounting. The cumulative effect of initially applying the new leases standard was recognized as an adjustment to the opening condensed consolidated balance sheet as of January 1, 2019. The company elected a package of practical expedients for leases that commenced prior to January 1, 2019 and did not reassess historical conclusions on: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs capitalization for any existing leases. Under the new standard, on January 1, 2019, the company recognized a cumulative-effect adjustment to its condensed consolidated balance sheet primarily related to the recognition of liabilities and corresponding right-of-use assets for operating leases. The adjustment to the condensed consolidated balance sheet included: (i) a $405 million increase to other assets; (ii) a $115 million increase to accounts payable and accrued liabilities; and (iii) a $290 million increase to other long-term liabilities. Other cumulative-effect adjustments to the condensed consolidated balance sheet were insignificant. Adoption of the standard did not have a significant impact on AbbVie's condensed consolidated statement of earnings for the three months ended March 31, 2019 . ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects related to adjustments to deferred taxes resulting from the December 2017 enactment of the Tax Cuts and Jobs Act (the Act). AbbVie adopted the standard in the first quarter of 2019. Upon adoption, the company made an election to not reclassify the income tax effects of the Act from AOCI to retained earnings. Therefore, the adoption of the standard had no impact on AbbVie's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) . The standard changes how credit losses are measured for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. Additionally, the standard requires new disclosures and will be effective for AbbVie starting with the first quarter of 2020. With certain exceptions, adjustments are to be applied using a modified-retrospective approach by reflecting adjustments through a cumulative-effect impact to retained earnings as of the beginning of the fiscal year of adoption. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Financial Information | |
Supplemental Financial Information | Supplemental Financial Information Interest Expense, Net Three months ended (in millions) 2019 2018 Interest expense $ 387 $ 309 Interest income (62 ) (58 ) Interest expense, net $ 325 $ 251 Inventories (in millions) March 31, 2019 December 31, 2018 Finished goods $ 583 $ 473 Work-in-process 880 862 Raw materials 239 270 Inventories $ 1,702 $ 1,605 Property and Equipment (in millions) March 31, 2019 December 31, 2018 Property and equipment, gross $ 8,370 $ 8,396 Accumulated depreciation (5,510 ) (5,513 ) Property and equipment, net $ 2,860 $ 2,883 Depreciation expense was $118 million for the three months ended March 31, 2019 and $115 million for the three months ended March 31, 2018 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share AbbVie grants certain restricted stock units (RSUs) that are considered to be participating securities. Due to the presence of participating securities, AbbVie calculates earnings per share (EPS) using the more dilutive of the treasury stock or the two-class method. For all periods presented, the two-class method was more dilutive. The following table summarizes the impact of the two-class method: Three months ended (in millions, except per share data) 2019 2018 Basic EPS Net earnings $ 2,456 $ 2,783 Earnings allocated to participating securities 12 12 Earnings available to common shareholders $ 2,444 $ 2,771 Weighted-average basic shares outstanding 1,480 1,591 Basic earnings per share $ 1.65 $ 1.74 Diluted EPS Net earnings $ 2,456 $ 2,783 Earnings allocated to participating securities 12 12 Earnings available to common shareholders $ 2,444 $ 2,771 Weighted-average shares of common stock outstanding 1,480 1,591 Effect of dilutive securities 3 5 Weighted-average diluted shares outstanding 1,483 1,596 Diluted earnings per share $ 1.65 $ 1.74 Certain shares issuable under stock-based compensation plans were excluded from the computation of EPS because the effect would have been antidilutive. The number of common shares excluded was insignificant for all periods presented. |
Licensing, Acquisitions, and Ot
Licensing, Acquisitions, and Other Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Licensing, Acquisitions, and Other Arrangements | |
Licensing, Acquisitions, and Other Arrangements | Licensing, Acquisitions and Other Arrangements Cash outflows related to acquisitions and investments totaled $320 million for the three months ended March 31, 2019 and $372 million for the three months ended March 31, 2018 . AbbVie recorded acquired in-process research and development (IPR&D) charges of $155 million for the three months ended March 31, 2019 and $69 million for the three months ended March 31, 2018 . |
Collaboration with Janssen Biot
Collaboration with Janssen Biotech, Inc. | 3 Months Ended |
Mar. 31, 2019 | |
Collaboration with Janssen Biotech, Inc. | |
Collaboration with Janssen Biotech, Inc. | Collaboration with Janssen Biotech, Inc. In December 2011, Pharmacyclics, a wholly-owned subsidiary of AbbVie, entered into a worldwide collaboration and license agreement with Janssen Biotech, Inc. and its affiliates (Janssen), one of the Janssen Pharmaceutical companies of Johnson & Johnson, for the joint development and commercialization of IMBRUVICA, a novel, orally active, selective covalent inhibitor of Bruton's tyrosine kinase (BTK) and certain compounds structurally related to IMBRUVICA, for oncology and other indications, excluding all immune and inflammatory mediated diseases or conditions and all psychiatric or psychological diseases or conditions, in the United States and outside the United States. The collaboration provides Janssen with an exclusive license to commercialize IMBRUVICA outside of the United States and co-exclusively with AbbVie in the United States. Both parties are responsible for the development, manufacturing and marketing of any products generated as a result of the collaboration. The collaboration has no set duration or specific expiration date and provides for potential future development, regulatory and approval milestone payments of up to $200 million to AbbVie. The collaboration also includes a cost sharing arrangement for associated collaboration activities. Except in certain cases, Janssen is responsible for approximately 60% of collaboration development costs and AbbVie is responsible for the remaining 40% of collaboration development costs. In the United States, both parties have co-exclusive rights to commercialize the products; however, AbbVie is the principal in the end-customer product sales. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of products. Sales of IMBRUVICA are included in AbbVie's net revenues. Janssen's share of profits is included in AbbVie's cost of products sold. Other costs incurred under the collaboration are reported in their respective expense line items, net of Janssen's share. Outside the United States, Janssen is responsible for and has exclusive rights to commercialize IMBRUVICA. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of products. AbbVie's share of profits is included in AbbVie's net revenues. Other costs incurred under the collaboration are reported in their respective expense line items, net of Janssen's share. The following table shows the profit and cost sharing relationship between Janssen and AbbVie: Three months ended (in millions) 2019 2018 United States - Janssen's share of profits (included in cost of products sold) $ 386 $ 276 International - AbbVie's share of profits (included in net revenues) 193 138 Global - AbbVie's share of other costs (included in respective line items) 72 71 AbbVie’s receivable from Janssen, included in accounts receivable, net, was $218 million at March 31, 2019 and $177 million at December 31, 2018 . AbbVie’s payable to Janssen, included in accounts payable and accrued liabilities, was $373 million at March 31, 2019 and $376 million at December 31, 2018 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill: (in millions) Balance as of December 31, 2018 $ 15,663 Foreign currency translation adjustments (57 ) Balance as of March 31, 2019 $ 15,606 The company performs its annual goodwill impairment assessment in the third quarter, or earlier if impairment indicators exist. As of March 31, 2019 , there were no accumulated goodwill impairment losses. Intangible Assets, Net The following table summarizes intangible assets: March 31, 2019 December 31, 2018 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 15,865 $ (5,857 ) $ 10,008 $ 15,872 $ (5,614 ) $ 10,258 License agreements 7,865 (1,947 ) 5,918 7,865 (1,810 ) 6,055 Total definite-lived intangible assets 23,730 (7,804 ) 15,926 23,737 (7,424 ) 16,313 Indefinite-lived research and development 4,920 — 4,920 4,920 — 4,920 Total intangible assets, net $ 28,650 $ (7,804 ) $ 20,846 $ 28,657 $ (7,424 ) $ 21,233 Indefinite-Lived Intangible Assets Indefinite-lived intangible assets represent acquired IPR&D associated with products that have not yet received regulatory approval. Indefinite-lived intangible assets as of March 31, 2019 and December 31, 2018 relate to the 2016 acquisitions of Boehringer Ingelheim compounds and Stemcentrx. The company performs its annual impairment assessment of indefinite-lived intangible assets in the third quarter, or earlier if impairment indicators exist. No indefinite-lived intangible asset impairment charges were recorded for the three months ended March 31, 2019 and 2018 . In the fourth quarter of 2018, the company recorded an impairment charge of $5.1 billion related to IPR&D acquired as part of the 2016 Stemcentrx acquisition following the decision to stop enrollment in the TAHOE trial. AbbVie continues to evaluate information as it becomes available with respect to the Stemcentrx-related clinical development programs and will monitor the remaining $1.0 billion of IPR&D assets for further impairment. Definite-Lived Intangible Assets Amortization expense was $385 million for the three months ended March 31, 2019 and $330 million for the three months ended March 31, 2018 . Amortization expense was included in cost of products sold in the condensed consolidated statements of earnings. No definite-lived intangible asset impairment charges were recorded for the three months ended March 31, 2019 and 2018 . |
Restructuring Plans
Restructuring Plans | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plans | Restructuring Plans AbbVie recorded restructuring charges of $167 million for the three months ended March 31, 2019 and $22 million for the three months ended March 31, 2018 . Restructuring charges for the three months ended March 31, 2019 primarily related to severance costs. The following table summarizes the cash activity in the restructuring reserve for the three months ended March 31, 2019 : (in millions) Accrued balance as of December 31, 2018 $ 99 Restructuring charges 154 Payments and other adjustments (44 ) Accrued balance as of March 31, 2019 $ 209 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. For leases commencing or modified in 2019 or later, AbbVie does not separate lease components from non-lease components. The company records lease liabilities based on the present value of lease payments over the lease term. AbbVie generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the company's control. AbbVie includes optional renewal periods in the lease term only when it is reasonably certain that AbbVie will exercise its option. Variable lease payments include payments to lessors for taxes, maintenance, insurance and other operating costs as well as payments that are adjusted based on an index or rate. The company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. The following table summarizes the amounts and location of operating and finance leases on the condensed consolidated balance sheet: (in millions) Balance sheet caption March 31, Assets Operating Other assets $ 405 Finance Property and equipment, net 28 Total lease assets $ 433 Liabilities Operating Current Accounts payable and accrued liabilities $ 110 Noncurrent Other long-term liabilities 307 Finance Current Current portion of long-term debt and finance lease obligations 10 Noncurrent Long-term debt and finance lease obligations 23 Total lease liabilities $ 450 The following table summarizes the lease costs recognized in the condensed consolidated statement of earnings: Three months ended (in millions) 2019 Operating lease cost $ 32 Finance lease cost Amortization of right-of-use assets 2 Interest on lease liabilities — Short-term lease cost 6 Variable lease cost 15 Total lease cost $ 55 Sublease income was insignificant for the three months ended March 31, 2019 . The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: Three months ended 2019 Weighted-average remaining lease term (in years) Operating 6 Finance 3 Weighted-average discount rate Operating 4.0 % Finance 4.5 % The following table presents supplementary cash flow information regarding the company's operating and finance leases: Three months ended (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 26 Operating cash flows from finance leases — Financing cash flows from finance leases 2 Right-of-use assets obtained in exchange for new finance lease liabilities — Right-of-use assets obtained in exchange for new operating lease liabilities 8 The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of March 31, 2019 : (in millions) Operating leases Finance leases Total (a)(b) 2019 $ 93 $ 10 $ 103 2020 117 11 128 2021 97 10 107 2022 52 2 54 2023 34 1 35 Thereafter 78 — 78 Total lease payments 471 34 505 Less: Interest 54 1 55 Present value of lease liabilities $ 417 $ 33 $ 450 (a) Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence between years 2019 and 2020 with lease terms of approximately 11 years . (b) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measures | Financial Instruments and Fair Value Measures Risk Management Policy See Note 10 to the company's Annual Report on Form 10-K for the year ended December 31, 2018 for a summary of AbbVie's risk management policy and use of derivative instruments. Financial Instruments Various AbbVie foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany transactions denominated in a currency other than the functional currency of the local entity. These contracts, with notional amounts totaling $802 million at March 31, 2019 and $1.4 billion at December 31, 2018 , are designated as cash flow hedges and are recorded at fair value. The durations of these forward exchange contracts were generally less than 18 months . Accumulated gains and losses as of March 31, 2019 will be reclassified from AOCI and included in cost of products sold at the time the products are sold, generally not exceeding six months from the date of settlement. The company also enters into foreign currency forward exchange contracts to manage its exposure to foreign currency denominated trade payables and receivables and intercompany loans. These contracts are not designated as hedges and are recorded at fair value. Resulting gains or losses are reflected in net foreign exchange loss in the consolidated statements of earnings and are generally offset by losses or gains on the foreign currency exposure being managed. These contracts had notional amounts totaling $9.9 billion at March 31, 2019 and $8.6 billion at December 31, 2018 . The company also uses foreign currency forward exchange contracts or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. The company designated €3.6 billion aggregate principal amount of senior Euro notes as net investment hedges at March 31, 2019 and December 31, 2018 . Realized and unrealized gains and losses from these hedges are included in AOCI. AbbVie is a party to interest rate hedge contracts designated as fair value hedges with notional amounts totaling $10.8 billion at March 31, 2019 and December 31, 2018 . The effect of the hedge contracts is to change a fixed-rate interest obligation to a floating rate for that portion of the debt. AbbVie records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount. No amounts are excluded from the assessment of effectiveness for cash flow hedges, net investment hedges or fair value hedges. The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets: Fair value – Fair value – (in millions) Balance sheet caption March 31, December 31, 2018 Balance sheet caption March 31, December 31, 2018 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 69 $ 113 Accounts payable and accrued liabilities $ — $ — Not designated as hedges Prepaid expenses and other 42 19 Accounts payable and accrued liabilities 47 26 Interest rate swaps designated as fair value hedges Other assets — — Other long-term liabilities 354 466 Total derivatives $ 111 $ 132 $ 401 $ 492 While certain derivatives are subject to netting arrangements with the company’s counterparties, the company does not offset derivative assets and liabilities within the condensed consolidated balance sheets. The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): Three months ended (in millions) 2019 2018 Foreign currency forward exchange contracts designated as cash flow hedges $ 3 $ (48 ) Assuming market rates remain constant through contract maturities, the company expects to transfer pre-tax gains of $126 million into cost of products sold for foreign currency cash flow hedges during the next 12 months. Related to AbbVie’s non-derivative, foreign currency denominated debt designated as net investment hedges, the company recognized a pre-tax gain in other comprehensive income (loss) of $84 million for the three months ended March 31, 2019 and recognized a pre-tax loss in other comprehensive income (loss) of $134 million for the three months ended March 31, 2018 . 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 11 for the amount of net gains (losses) reclassified out of AOCI. Three months ended (in millions) Statement of earnings caption 2019 2018 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 40 $ (44 ) Not designated as hedges Net foreign exchange loss 15 (59 ) Interest rate swaps designated as fair value hedges Interest expense, net 112 (184 ) Debt designated as hedged item in fair value hedges Interest expense, net (112 ) 184 Fair Value Measures The fair value hierarchy consists of the following three levels: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access; • Level 2 – Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and • Level 3 – Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company’s management about the assumptions market participants would use in pricing the asset or liability. 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, 2019 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 4,897 $ 1,264 $ 3,633 $ — Time deposits 68 — 68 — Debt securities 1,611 — 1,611 — Equity securities 52 52 — — Foreign currency contracts 111 — 111 — Total assets $ 6,739 $ 1,316 $ 5,423 $ — Liabilities Interest rate hedges $ 354 $ — $ 354 $ — Foreign currency contracts 47 — 47 — Contingent consideration 4,652 — — 4,652 Total liabilities $ 5,053 $ — $ 401 $ 4,652 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, 2018 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 7,289 $ 1,209 $ 6,080 $ — Time deposits 568 — 568 — Debt securities 1,536 — 1,536 — Equity securities 4 4 — — Foreign currency contracts 132 — 132 — Total assets $ 9,529 $ 1,213 $ 8,316 $ — Liabilities Interest rate hedges $ 466 $ — $ 466 $ — Foreign currency contracts 26 — 26 — Contingent consideration 4,483 — — 4,483 Total liabilities $ 4,975 $ — $ 492 $ 4,483 The fair values of time deposits approximate their amortized cost due to the short maturities of these instruments. The fair values of available-for-sale debt securities were determined based on prices obtained from commercial pricing services. Equity securities consist of investments for which the fair values were determined by using the published market price per unit multiplied by the number of units held, without consideration of transaction costs. The derivatives entered into by the company were valued using published spot curves for interest rate hedges and published forward curves for foreign currency contracts. The fair value measurements of the contingent consideration liabilities were determined based on significant unobservable inputs, including the discount rate, estimated probabilities and timing of achieving specified development, regulatory and commercial milestones and the estimated amount of future sales of the acquired products still in development. Changes to the fair value of the contingent consideration liabilities can result from changes to one or a number of inputs, including discount rates, the probabilities of achieving the milestones, the time required to achieve the milestones and estimated future sales. Significant judgment is employed in determining the appropriateness of these inputs. Changes to the inputs described above could have a material impact on the company's financial position and results of operations in any given period. At March 31, 2019 , a 50 basis point increase/decrease in the assumed discount rate would have decreased/increased the value of the contingent consideration liabilities by approximately $170 million . Additionally, at March 31, 2019 , a five percentage point increase/decrease in the assumed probability of success across all potential indications would have increased/decreased the value of the contingent consideration liabilities by approximately $410 million . There have been no transfers of assets or liabilities between the fair value measurement levels. The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs: Three months ended (in millions) 2019 2018 Beginning balance $ 4,483 $ 4,534 Change in fair value recognized in net earnings 169 (148 ) Ending balance $ 4,652 $ 4,386 The change in fair value recognized in net earnings is recorded in other (income) expense, net in the condensed consolidated statements of earnings. AbbVie expects the fair value of its contingent consideration liabilities to increase in the second quarter of 2019 as a result of the April 2019 regulatory approvals of SKYRIZI (risankizumab) for the treatment of moderate to severe plaque psoriasis. The company is in the process of evaluating the impact of the regulatory approvals on the fair value, which includes an increase in the probabilities of success assumptions. Certain financial instruments are carried at historical cost or some basis other than fair value. The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of March 31, 2019 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant observable Significant Liabilities Short-term borrowings $ 499 $ 499 $ — $ 499 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 1,579 1,586 1,576 10 — Long-term debt and finance lease obligations, excluding fair value hedges 35,420 35,362 35,339 23 — Total liabilities $ 37,498 $ 37,447 $ 36,915 $ 532 $ — The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2018 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant observable Significant Liabilities Short-term borrowings $ 3,699 $ 3,693 $ — $ 3,693 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 1,609 1,617 1,609 8 — Long-term debt and finance lease obligations, excluding fair value hedges 35,468 34,052 34,024 28 — Total liabilities $ 40,776 $ 39,362 $ 35,633 $ 3,729 $ — AbbVie also holds investments in equity securities that do not have readily determinable fair values. The company records these investments at cost and remeasures them to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $77 million as of March 31, 2019 and $84 million as of December 31, 2018 . No significant cumulative upward or downward adjustments have been recorded for these investments as of March 31, 2019 . Available-for-sale Securities Substantially all of the company’s investments in debt securities were classified as available-for-sale with changes in fair value recognized in other comprehensive income. Debt securities classified as short-term were $263 million as of March 31, 2019 and $204 million as of December 31, 2018 . Long-term debt securities mature primarily within five years . Estimated fair values of available-for-sale debt securities were generally determined based on prices obtained from commercial pricing services. The following table summarizes available-for-sale securities by type as of March 31, 2019 : Amortized cost Gross unrealized Fair value (in millions) Gains Losses Asset backed securities $ 425 $ — $ (2 ) $ 423 Corporate debt securities 1,069 3 (4 ) 1,068 Other debt securities 120 — — 120 Total $ 1,614 $ 3 $ (6 ) $ 1,611 The following table summarizes available-for-sale securities by type as of December 31, 2018 : Amortized cost Gross unrealized Fair value (in millions) Gains Losses Asset backed securities $ 423 $ — $ (2 ) $ 421 Corporate debt securities 1,042 1 (9 ) 1,034 Other debt securities 81 — — 81 Total $ 1,546 $ 1 $ (11 ) $ 1,536 AbbVie had no other-than-temporary impairments as of March 31, 2019 . Net realized gains and losses were insignificant for the three months ended March 31, 2019 and 2018 . Concentrations of Risk Of total net accounts receivable, three U.S. wholesalers accounted for 63% as of March 31, 2019 and December 31, 2018 , and substantially all of AbbVie’s net revenues in the United States were to these three wholesalers. HUMIRA (adalimumab) is AbbVie’s single largest product and accounted for approximately 57% of AbbVie’s total net revenues for the three months ended March 31, 2019 and 59% for the three months ended March 31, 2018 . Debt and Credit Facilities Short-Term Borrowings Short-term borrowings included commercial paper borrowings of $499 million as of March 31, 2019 and $699 million as of December 31, 2018 . The weighted-average interest rate on commercial paper borrowings was 2.8% for the three months ended March 31, 2019 and 1.8% for the three months ended March 31, 2018 . In March 2019, AbbVie repaid its $3.0 billion 364 -day term loan credit agreement that was scheduled to mature in June 2019 . |
Post-Employment Benefits
Post-Employment Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Post-Employment Benefits | Post-Employment Benefits The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined Other post- Three months ended Three months ended (in millions) 2019 2018 2019 2018 Service cost $ 67 $ 72 $ 6 $ 8 Interest cost 64 57 6 8 Expected return on plan assets (119 ) (111 ) — — Amortization of actuarial losses and prior service cost (credit) 26 37 (1 ) 4 Net periodic benefit cost $ 38 $ 55 $ 11 $ 20 The components of net periodic benefit cost other than service cost are included in other (income) expense, net in the condensed consolidated statements of earnings. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Stock-Based Compensation Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and is summarized as follows: Three months ended (in millions) 2019 2018 Cost of products sold $ 15 $ 4 Research and development 72 72 Selling, general and administrative 102 115 Pre-tax compensation expense 189 191 Tax benefit 33 29 After-tax compensation expense $ 156 $ 162 Stock Options During the three months ended March 31, 2019 , primarily in connection with the company's annual grant, AbbVie granted 1.0 million stock options with a weighted-average grant-date fair value of $12.54 . As of March 31, 2019 , $10 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years . RSUs and Performance Shares During the three months ended March 31, 2019 , primarily in connection with the company's annual grant, AbbVie granted 5.2 million RSUs and performance shares with a weighted-average grant-date fair value of $79.07 . As of March 31, 2019 , $489 million of unrecognized compensation cost related to RSUs and performance shares is expected to be recognized as expense over approximately the next two years . Cash Dividends The following table summarizes quarterly cash dividends declared during 2019 and 2018 : 2019 2018 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 02/21/19 05/15/19 $ 1.07 11/02/18 02/15/19 $ 1.07 09/07/18 11/15/18 $ 0.96 06/14/18 08/15/18 $ 0.96 02/15/18 05/15/18 $ 0.96 Stock Repurchase Program The company's stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions at management's discretion. The program has no time limit and can be discontinued at any time. Shares repurchased under these programs are recorded at acquisition cost, including related expenses, and are available for general corporate purposes. AbbVie repurchased 4 million shares for $300 million during the three months ended March 31, 2019 and 11 million shares for $1.3 billion during the three months ended March 31, 2018 . AbbVie's remaining stock repurchase authorization was approximately $4.0 billion as of March 31, 2019 . Accumulated Other Comprehensive Loss The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 : (in millions) Foreign Net investment hedging activities Pension and post- Marketable security activities Cash flow hedging Total Balance as of December 31, 2018 $ (830 ) $ (65 ) $ (1,722 ) $ (10 ) $ 147 $ (2,480 ) Other comprehensive income (loss) before reclassifications (103 ) 65 5 7 5 (21 ) Net losses (gains) reclassified from accumulated other comprehensive loss — — 20 — (35 ) (15 ) Net current-period other comprehensive income (loss) (103 ) 65 25 7 (30 ) (36 ) Balance as of March 31, 2019 $ (933 ) $ — $ (1,697 ) $ (3 ) $ 117 $ (2,516 ) Other comprehensive loss for the three months ended March 31, 2019 included foreign currency translation adjustments totaling a loss of $103 million , which was principally due to the weakening of the Euro in the three months ended March 31, 2019 on the translation of the company’s assets denominated in the Euro. The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2018 : (in millions) Foreign Net investment hedging activities Pension and post- Marketable security activities Cash flow hedging Total Balance as of December 31, 2017 $ (439 ) $ (203 ) $ (1,919 ) $ — $ (166 ) $ (2,727 ) Other comprehensive income (loss) before reclassifications 189 (104 ) (11 ) (7 ) (45 ) 22 Net losses reclassified from accumulated other comprehensive loss — — 33 — 42 75 Net current-period other comprehensive income (loss) 189 (104 ) 22 (7 ) (3 ) 97 Balance as of March 31, 2018 $ (250 ) $ (307 ) $ (1,897 ) $ (7 ) $ (169 ) $ (2,630 ) Other comprehensive income for the three months ended March 31, 2018 included foreign currency translation adjustments totaling a gain of $189 million , which was principally due to the impact of the improvement in the Euro in the three months ended March 31, 2018 on the translation of the company’s assets denominated in the Euro. The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended (in millions) (brackets denote gains) 2019 2018 Pension and post-employment benefits Amortization of actuarial losses and other (a) $ 25 $ 41 Tax benefit (5 ) (8 ) Total reclassifications, net of tax $ 20 $ 33 Cash flow hedging activities Losses (gains) on designated cash flow hedges (b) $ (40 ) $ 44 Tax expense (benefit) 5 (2 ) Total reclassifications, net of tax $ (35 ) $ 42 (a) Amounts are included in the computation of net periodic benefit cost (see Note 10 ). (b) Amounts are included in cost of products sold (see Note 9 ). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 3% for the three months ended March 31, 2019 and 1% for the three months ended March 31, 2018 . The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to the benefit from foreign operations which reflects the impact of lower income tax rates in locations outside the United States, tax incentives in Puerto Rico and other foreign tax jurisdictions and business development activities. The increase in the effective tax rate for the three months ended March 31, 2019 over the prior year was principally due to the beneficial impact of the timing of provisions of the Act related to earnings from certain foreign subsidiaries in prior year. Additionally, the 2019 effective tax rate reflected the favorable resolution of various tax positions and lower excess tax benefits from stock-based compensation compared to the prior year. Due to the potential for resolution of federal, state and foreign examinations and the expiration of various statutes of limitations, it is reasonably possible that the company’s gross unrecognized tax benefits balance may change within the next twelve months by up to $311 million . |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Contingencies | Legal Proceedings and Contingencies AbbVie is subject to contingencies, such as various claims, legal proceedings and investigations regarding product liability, intellectual property, commercial, securities and other matters that arise in the normal course of business. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount within a probable range is recorded. The recorded accrual balance for litigation was approximately $345 million as of March 31, 2019 and $350 million as of December 31, 2018 . Initiation of new legal proceedings or a change in the status of existing proceedings may result in a change in the estimated loss accrued by AbbVie. While it is not feasible to predict the outcome of all proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on AbbVie’s consolidated financial position, results of operations or cash flows. Subject to certain exceptions specified in the separation agreement by and between Abbott and AbbVie, AbbVie assumed the liability for, and control of, all pending and threatened legal matters related to its business, including liabilities for any claims or legal proceedings related to products that had been part of its business, but were discontinued prior to the distribution, as well as assumed or retained liabilities, and will indemnify Abbott for any liability arising out of or resulting from such assumed legal matters. Several pending lawsuits filed against Unimed Pharmaceuticals, Inc., Solvay Pharmaceuticals, Inc. (a company Abbott acquired in February 2010 and now known as AbbVie Products LLC) and others are consolidated for pre-trial purposes in the United States District Court for the Northern District of Georgia under the Multi-District Litigation (MDL) Rules as In re: AndroGel Antitrust Litigation , MDL No. 2084. These cases, brought by private plaintiffs and the Federal Trade Commission (FTC), generally allege Solvay's patent litigation involving AndroGel was sham litigation and the 2006 patent litigation settlement agreements and related agreements with three generic companies violate federal antitrust laws. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys' fees. These cases include: (a) four individual plaintiff lawsuits; (b) three purported class actions; and (c) Federal Trade Commission v. Actavis, Inc. et al. Following the district court's dismissal of all plaintiffs' claims, appellate proceedings led to the reinstatement of the claims regarding the patent litigation settlements, which are proceeding in the district court. In July 2018, the court denied the private plaintiffs' motion for class certification. In February 2019, AbbVie and the FTC reached a settlement that applies certain conditions on future patent settlements involving former Solvay products, as part of which the FTC’s claims were dismissed with prejudice. In April 2019, AbbVie settled with the plaintiffs in three of the individual lawsuits, which will be dismissed with prejudice. Lawsuits are pending against AbbVie and others generally alleging that the 2005 patent litigation settlement involving Niaspan entered into between Kos Pharmaceuticals, Inc. (a company acquired by Abbott in 2006 and presently a subsidiary of AbbVie) and a generic company violates federal and state antitrust laws and state unfair and deceptive trade practices and unjust enrichment laws. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys' fees. The lawsuits, including a putative end-payer class action filed in December 2018, consist of four individual plaintiff lawsuits and three consolidated purported class actions: one brought by Niaspan direct purchasers and two brought by Niaspan end-payers. The cases are pending in the United States District Court for the Eastern District of Pennsylvania for coordinated or consolidated pre-trial proceedings under the MDL Rules as In re: Niaspan Antitrust Litigation , MDL No. 2460. In October 2016, the Orange County, California District Attorney’s Office filed a lawsuit on behalf of the State of California regarding the Niaspan patent litigation settlement in Orange County Superior Court, asserting a claim under the unfair competition provision of the California Business and Professions Code seeking injunctive relief, restitution, civil penalties and attorneys’ fees. In May 2018, the California Court of Appeals ruled that the District Attorney’s Office may not bring monetary claims beyond the scope of Orange County. In September 2014, the FTC filed a lawsuit against AbbVie and others in the United States District Court for the Eastern District of Pennsylvania, alleging that the 2011 patent litigation with two generic companies regarding AndroGel was sham litigation and the settlements of that litigation violated federal antitrust law. In May 2015, the court dismissed the FTC’s settlement-related claim. In June 2018, following a bench trial, the court found for the FTC on its sham litigation claim and ordered a disgorgement remedy of $448 million , plus prejudgment interest. The court denied the FTC’s request for injunctive relief. AbbVie is appealing the court’s liability and disgorgement rulings and, based on an assessment of the merits of that appeal, no liability has been accrued for this matter. The FTC is also appealing aspects of the court’s trial ruling and the dismissal of its settlement-related claim. In July and August 2018, several direct AndroGel purchasers brought two individual and one class action cases in the United States District Court for the Eastern District of Pennsylvania alleging sham litigation based on the court’s trial ruling in the FTC’s case. In April 2019, AbbVie settled with the plaintiffs in the two individual cases. The remaining private plaintiff case is stayed pending the appeals in the FTC’s case. In March 2015, the State of Louisiana filed a lawsuit, State of Louisiana v. Fournier Industrie et Sante, et al. , against AbbVie, Abbott and affiliated Abbott entities in Louisiana state court. Plaintiff alleges that patent applications and patent litigation filed and other alleged conduct from the early 2000's and before related to the drug TriCor violated Louisiana State antitrust and unfair trade practices laws. The lawsuit seeks monetary damages and attorneys' fees. In April 2019, the Louisiana Supreme Court denied the plaintiff’s petition seeking to appeal the August 2018 dismissal of this lawsuit by the Louisiana Court of Appeal. In January and February 2019, two shareholder derivative lawsuits, Brown v. Gonzalez, et al., and Elfers v. Gonzalez, et al. , were filed in the United States District Court for the Northern District of Illinois, alleging that certain AbbVie directors and officers breached their fiduciary duties in connection with HUMIRA patient and reimbursement support services and other services and items of value, as alleged in the State of California case discussed below. In March and April 2019, 10 putative class action lawsuits were filed in the United States District Court for the Northern District of Illinois by indirect HUMIRA purchasers, alleging that AbbVie’s settlements with biosimilar manufacturers and AbbVie’s HUMIRA patent portfolio violate state and federal antitrust laws. In November 2014, a putative class action lawsuit, Medical Mutual of Ohio v. AbbVie Inc., et al. , was filed against several manufacturers of testosterone replacement therapies (TRTs), including AbbVie, in the United States District Court for the Northern District of Illinois on behalf of all insurance companies, health benefit providers, and other third party payers who paid for TRTs, including AndroGel. The claims asserted include violations of the federal RICO Act and state consumer fraud and deceptive trade practices laws. The complaint seeks monetary damages and injunctive relief. In July 2018, the court denied the plaintiff’s motion for class certification. In February 2019, the court granted the defendants’ summary judgment motion. In September 2018, the Commissioner of the California Department of Insurance intervened in a qui tam lawsuit, State of California and Lazaro Suarez v. AbbVie Inc., et al. , brought under the California Insurance Frauds Prevention Act, in California Superior Court for Alameda County. The Department of Insurance’s complaint alleges that, through patient and reimbursement support services and other services and items of value provided in connection with HUMIRA, AbbVie caused the submission of fraudulent commercial insurance claims for HUMIRA in violation of the California statute. The complaint seeks injunctive relief, an assessment of up to three times the amount of the claims at issue, and civil penalties. In addition, two federal securities lawsuits were filed in September ( Pippins v. AbbVie Inc., et al. , in the United States District Court for the Central District of California) and October ( Holwill v. AbbVie Inc., et al ., in the United States District Court for the Northern District of Illinois) against AbbVie, its chief executive officer and then-chief financial officer, alleging that reasons stated for HUMIRA sales growth in financial filings between 2013 and 2017 were misleading because they omitted the conduct alleged in the Department of Insurance’s complaint. In November 2018, the Pippins case was voluntarily dismissed. In November 2014, five individuals filed a putative class action lawsuit, Rubinstein, et al. v Gonzalez, et al., on behalf of purchasers and sellers of certain Shire plc (Shire) securities between June 20 and October 14, 2014, against AbbVie and its chief executive officer in the United States District Court for the Northern District of Illinois alleging that the defendants made and/or are responsible for material misstatements in violation of federal securities laws in connection with AbbVie's proposed transaction with Shire. In April 2019, the parties reached an agreement in principle to settle this lawsuit. In June 2016, a lawsuit, Elliott Associates, L.P., et al. v. AbbVie Inc. , was filed by five investment funds against AbbVie in the Cook County, Illinois Circuit Court alleging that AbbVie made misrepresentations and omissions in connec tion with its proposed t ransaction with Shire. Similar lawsuits were filed between July 2017 and October 2018 against AbbVie and in some instances its chief executive officer in the same court by additional investment funds. Plaintiffs seek compensatory and punitive damages. In May 2017, a shareholder derivative lawsuit, Ellis v. Gonzalez, et al. , was filed in Delaware Chancery Court, alleging that AbbVie's directors breached their fiduciary duties in connection with statements made regarding the Shire transaction. The lawsuit sought unspecified compensatory damages for AbbVie, among other relief. In July 2018, the court dismissed this case with prejudice. In March 2019, the Delaware Supreme Court affirmed that dismissal. Product liability cases were filed in which plaintiffs generally allege that AbbVie and other manufacturers of TRTs did not adequately warn about risks of certain injuries, primarily heart attacks, strokes and blood clots. Approximately 3,900 claims against AbbVie are consolidated for pre-trial purposes in the United States District Court for the Northern District of Illinois under the MDL Rules as In re: Testosterone Replacement Therapy Products Liability Litigation , MDL No. 2545. Approximately 200 claims against AbbVie are pending in various state courts. Plaintiffs generally seek compensatory and punitive damages. In November 2018, AbbVie entered into a Master Settlement Agreement with the Plaintiffs’ Steering Committee in the MDL encompassing existing claims in all courts. All proceedings in pending cases are effectively stayed during the settlement administration process. Product liability cases are pending in which plaintiffs generally allege that AbbVie did not adequately warn about risk of certain injuries, primarily various birth defects, arising from use of Depakote. Approximately 170 cases are pending in the United States District Court for the Southern District of Illinois, and approximately four others are pending in various state courts. Plaintiffs generally seek compensatory and punitive damages. Over ninety percent of these pending cases, plus other unfiled claims, are subject to confidential settlement agreements and are expected to be dismissed with prejudice. Beginning in May 2016, the Patent Trial & Appeal Board of the U.S. Patent & Trademark Office (PTO) instituted five inter partes review proceedings brought by Coherus Biosciences and Boehringer Ingelheim related to three AbbVie patents covering methods of treatment of rheumatoid arthritis using adalimumab. In these proceedings, the PTO reviewed the validity of the patents and issued decisions of invalidity in May, June and July of 2017. AbbVie’s appeal of the decisions is pending in the Court of Appeals for the Federal Circuit. In March 2017, AbbVie filed a lawsuit, AbbVie Inc. v. Novartis Vaccines and Diagnostics, Inc. and Grifols Worldwide Operations Ltd., in the United States District Court for the Northern District of California against Novartis Vaccines and Grifols Worldwide seeking a declaratory judgment that eleven HCV-related patents licensed to AbbVie in 2002 are invalid. AbbVie is seeking to enforce certain patent rights related to adalimumab (a drug AbbVie sells under the trademark HUMIRA®). In a case filed in United States District Court for the District of Delaware in August 2017, AbbVie alleges that Boehringer Ingelheim International GmbH’s, Boehringer Ingelheim Pharmaceutical, Inc.’s, and Boehringer Ingelheim Fremont, Inc.’s proposed biosimilar adalimumab product infringes certain AbbVie patents. AbbVie seeks declaratory and injunctive relief. Pharmacyclics LLC, a wholly owned subsidiary of AbbVie, is seeking to enforce its patent rights relating to ibrutinib capsules (a drug Pharmacyclics sells under the trademark IMBRUVICA®). In February 2018, cases were filed in the United States District Court for the District of Delaware against the following defendants: Fresenius Kabi USA, LLC, Fresenius Kabi USA, Inc., and Fresenius Kabi Oncology Limited; Sun Pharma Global FZE and Sun Pharmaceutical Industries Ltd.; Cipla Limited and Cipla USA Inc.; and Zydus Worldwide DMCC, Cadila Healthcare Limited, Sandoz Inc., and Lek Pharmaceuticals D.D. In each case, Pharmacyclics alleges the defendant’s proposed generic ibrutinib product infringes certain Pharmacyclics patents and seeks declaratory and injunctive relief. Janssen Biotech, Inc. which is in a global collaboration with Pharmacyclics concerning the development and marketing of IMBRUVICA, is the co-plaintiff in these suits. Pharmacyclics LLC, a wholly owned subsidiary of AbbVie, is seeking to enforce its patent rights relating to ibrutinib tablets (a drug Pharmacyclics sells under the trademark IMBRUVICA®). In a case filed in the United States District Court for the District of Delaware in March 2019, Pharmacyclics alleges that Alvogen Pine Brook LLC’s and Natco Pharma Ltd.’s proposed generic ibrutinib tablet product infringes certain Pharmacyclics patents. Pharmacyclics seeks declaratory and injunctive relief. Janssen Biotech, Inc. which is in a global collaboration with Pharmacyclics concerning the development and marketing of IMBRUVICA, is the co-plaintiff in this suit. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information AbbVie operates in one business segment—pharmaceutical products. The following table details AbbVie’s worldwide net revenues: Three months ended (in millions) 2019 2018 Immunology HUMIRA United States $ 3,215 $ 3,003 International 1,231 1,706 Total $ 4,446 $ 4,709 Hematologic Oncology IMBRUVICA United States $ 829 $ 624 Collaboration revenues 193 138 Total $ 1,022 $ 762 VENCLEXTA United States $ 105 $ 41 International 46 18 Total $ 151 $ 59 HCV MAVYRET United States $ 403 $ 340 International 387 508 Total $ 790 $ 848 VIEKIRA United States $ — $ 3 International 25 68 Total $ 25 $ 71 Other Key Products Creon United States $ 227 $ 209 Lupron United States $ 191 $ 177 International 38 42 Total $ 229 $ 219 Synthroid United States $ 182 $ 182 Synagis International $ 287 $ 321 Duodopa United States $ 22 $ 18 International 89 85 Total $ 111 $ 103 Sevoflurane United States $ 17 $ 17 International 75 89 Total $ 92 $ 106 Kaletra United States $ 13 $ 13 International 65 60 Total $ 78 $ 73 AndroGel United States $ 74 $ 130 All other $ 114 $ 142 Total net revenues $ 7,828 $ 7,934 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU No. 2016-02 In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) . The standard outlines a comprehensive lease accounting model that supersedes the previous lease guidance and requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. AbbVie adopted the standard in the first quarter of 2019 using the modified retrospective method. Results for reporting periods beginning after December 31, 2018 have been presented in accordance with the standard, while results for prior periods have not been adjusted and continue to be reported in accordance with AbbVie's historical accounting. The cumulative effect of initially applying the new leases standard was recognized as an adjustment to the opening condensed consolidated balance sheet as of January 1, 2019. The company elected a package of practical expedients for leases that commenced prior to January 1, 2019 and did not reassess historical conclusions on: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs capitalization for any existing leases. Under the new standard, on January 1, 2019, the company recognized a cumulative-effect adjustment to its condensed consolidated balance sheet primarily related to the recognition of liabilities and corresponding right-of-use assets for operating leases. The adjustment to the condensed consolidated balance sheet included: (i) a $405 million increase to other assets; (ii) a $115 million increase to accounts payable and accrued liabilities; and (iii) a $290 million increase to other long-term liabilities. Other cumulative-effect adjustments to the condensed consolidated balance sheet were insignificant. Adoption of the standard did not have a significant impact on AbbVie's condensed consolidated statement of earnings for the three months ended March 31, 2019 . ASU No. 2018-02 In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects related to adjustments to deferred taxes resulting from the December 2017 enactment of the Tax Cuts and Jobs Act (the Act). AbbVie adopted the standard in the first quarter of 2019. Upon adoption, the company made an election to not reclassify the income tax effects of the Act from AOCI to retained earnings. Therefore, the adoption of the standard had no impact on AbbVie's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) . The standard changes how credit losses are measured for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. Additionally, the standard requires new disclosures and will be effective for AbbVie starting with the first quarter of 2020. With certain exceptions, adjustments are to be applied using a modified-retrospective approach by reflecting adjustments through a cumulative-effect impact to retained earnings as of the beginning of the fiscal year of adoption. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Short-term leases with a term of 12 months or less are not recorded on the balance sheet. For leases commencing or modified in 2019 or later, AbbVie does not separate lease components from non-lease components. The company records lease liabilities based on the present value of lease payments over the lease term. AbbVie generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the company's control. AbbVie includes optional renewal periods in the lease term only when it is reasonably certain that AbbVie will exercise its option. Variable lease payments include payments to lessors for taxes, maintenance, insurance and other operating costs as well as payments that are adjusted based on an index or rate. The company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. |
Short-Term Leases | Short-term leases with a term of 12 months or less are not recorded on the balance sheet. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Financial Information | |
Schedule of interest expense, net | Interest Expense, Net Three months ended (in millions) 2019 2018 Interest expense $ 387 $ 309 Interest income (62 ) (58 ) Interest expense, net $ 325 $ 251 |
Schedule of inventories | Inventories (in millions) March 31, 2019 December 31, 2018 Finished goods $ 583 $ 473 Work-in-process 880 862 Raw materials 239 270 Inventories $ 1,702 $ 1,605 |
Schedule of property and equipment | Property and Equipment (in millions) March 31, 2019 December 31, 2018 Property and equipment, gross $ 8,370 $ 8,396 Accumulated depreciation (5,510 ) (5,513 ) Property and equipment, net $ 2,860 $ 2,883 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of diluted earnings per share, impact of two-class method | The following table summarizes the impact of the two-class method: Three months ended (in millions, except per share data) 2019 2018 Basic EPS Net earnings $ 2,456 $ 2,783 Earnings allocated to participating securities 12 12 Earnings available to common shareholders $ 2,444 $ 2,771 Weighted-average basic shares outstanding 1,480 1,591 Basic earnings per share $ 1.65 $ 1.74 Diluted EPS Net earnings $ 2,456 $ 2,783 Earnings allocated to participating securities 12 12 Earnings available to common shareholders $ 2,444 $ 2,771 Weighted-average shares of common stock outstanding 1,480 1,591 Effect of dilutive securities 3 5 Weighted-average diluted shares outstanding 1,483 1,596 Diluted earnings per share $ 1.65 $ 1.74 |
Collaboration with Janssen Bi_2
Collaboration with Janssen Biotech, Inc. (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Collaboration with Janssen Biotech, Inc. | |
Schedule of profit and cost sharing relationship | The following table shows the profit and cost sharing relationship between Janssen and AbbVie: Three months ended (in millions) 2019 2018 United States - Janssen's share of profits (included in cost of products sold) $ 386 $ 276 International - AbbVie's share of profits (included in net revenues) 193 138 Global - AbbVie's share of other costs (included in respective line items) 72 71 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the carrying amount of goodwill | The following table summarizes the changes in the carrying amount of goodwill: (in millions) Balance as of December 31, 2018 $ 15,663 Foreign currency translation adjustments (57 ) Balance as of March 31, 2019 $ 15,606 |
Summary of definite-lived intangible assets | The following table summarizes intangible assets: March 31, 2019 December 31, 2018 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 15,865 $ (5,857 ) $ 10,008 $ 15,872 $ (5,614 ) $ 10,258 License agreements 7,865 (1,947 ) 5,918 7,865 (1,810 ) 6,055 Total definite-lived intangible assets 23,730 (7,804 ) 15,926 23,737 (7,424 ) 16,313 Indefinite-lived research and development 4,920 — 4,920 4,920 — 4,920 Total intangible assets, net $ 28,650 $ (7,804 ) $ 20,846 $ 28,657 $ (7,424 ) $ 21,233 |
Summary of indefinite-lived intangible assets | The following table summarizes intangible assets: March 31, 2019 December 31, 2018 (in millions) Gross Accumulated Net Gross Accumulated Net Definite-lived intangible assets Developed product rights $ 15,865 $ (5,857 ) $ 10,008 $ 15,872 $ (5,614 ) $ 10,258 License agreements 7,865 (1,947 ) 5,918 7,865 (1,810 ) 6,055 Total definite-lived intangible assets 23,730 (7,804 ) 15,926 23,737 (7,424 ) 16,313 Indefinite-lived research and development 4,920 — 4,920 4,920 — 4,920 Total intangible assets, net $ 28,650 $ (7,804 ) $ 20,846 $ 28,657 $ (7,424 ) $ 21,233 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of the cash activity in the restructuring reserve | The following table summarizes the cash activity in the restructuring reserve for the three months ended March 31, 2019 : (in millions) Accrued balance as of December 31, 2018 $ 99 Restructuring charges 154 Payments and other adjustments (44 ) Accrued balance as of March 31, 2019 $ 209 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of amounts and location of operating and finance leases on the condensed consolidated balance sheet | The following table summarizes the amounts and location of operating and finance leases on the condensed consolidated balance sheet: (in millions) Balance sheet caption March 31, Assets Operating Other assets $ 405 Finance Property and equipment, net 28 Total lease assets $ 433 Liabilities Operating Current Accounts payable and accrued liabilities $ 110 Noncurrent Other long-term liabilities 307 Finance Current Current portion of long-term debt and finance lease obligations 10 Noncurrent Long-term debt and finance lease obligations 23 Total lease liabilities $ 450 |
Summary of lease costs recognized in the condensed consolidated statement of earnings | The following table summarizes the lease costs recognized in the condensed consolidated statement of earnings: Three months ended (in millions) 2019 Operating lease cost $ 32 Finance lease cost Amortization of right-of-use assets 2 Interest on lease liabilities — Short-term lease cost 6 Variable lease cost 15 Total lease cost $ 55 |
Schedule of weighted-average remaining lease term and weighted-average discount rate for operating and finance leases | The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: Three months ended 2019 Weighted-average remaining lease term (in years) Operating 6 Finance 3 Weighted-average discount rate Operating 4.0 % Finance 4.5 % |
Schedule of supplementary cash flow information regarding the company's operating and finance leases | The following table presents supplementary cash flow information regarding the company's operating and finance leases: Three months ended (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 26 Operating cash flows from finance leases — Financing cash flows from finance leases 2 Right-of-use assets obtained in exchange for new finance lease liabilities — Right-of-use assets obtained in exchange for new operating lease liabilities 8 |
Summary of future maturities of AbbVie's operating lease liabilities | The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of March 31, 2019 : (in millions) Operating leases Finance leases Total (a)(b) 2019 $ 93 $ 10 $ 103 2020 117 11 128 2021 97 10 107 2022 52 2 54 2023 34 1 35 Thereafter 78 — 78 Total lease payments 471 34 505 Less: Interest 54 1 55 Present value of lease liabilities $ 417 $ 33 $ 450 |
Summary of future maturities of AbbVie's finance lease liabilities | The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of March 31, 2019 : (in millions) Operating leases Finance leases Total (a)(b) 2019 $ 93 $ 10 $ 103 2020 117 11 128 2021 97 10 107 2022 52 2 54 2023 34 1 35 Thereafter 78 — 78 Total lease payments 471 34 505 Less: Interest 54 1 55 Present value of lease liabilities $ 417 $ 33 $ 450 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 – Fair value – (in millions) Balance sheet caption March 31, December 31, 2018 Balance sheet caption March 31, December 31, 2018 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 69 $ 113 Accounts payable and accrued liabilities $ — $ — Not designated as hedges Prepaid expenses and other 42 19 Accounts payable and accrued liabilities 47 26 Interest rate swaps designated as fair value hedges Other assets — — Other long-term liabilities 354 466 Total derivatives $ 111 $ 132 $ 401 $ 492 |
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): Three months ended (in millions) 2019 2018 Foreign currency forward exchange contracts designated as cash flow hedges $ 3 $ (48 ) |
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 11 for the amount of net gains (losses) reclassified out of AOCI. Three months ended (in millions) Statement of earnings caption 2019 2018 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 40 $ (44 ) Not designated as hedges Net foreign exchange loss 15 (59 ) Interest rate swaps designated as fair value hedges Interest expense, net 112 (184 ) Debt designated as hedged item in fair value hedges Interest expense, net (112 ) 184 |
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, 2019 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 4,897 $ 1,264 $ 3,633 $ — Time deposits 68 — 68 — Debt securities 1,611 — 1,611 — Equity securities 52 52 — — Foreign currency contracts 111 — 111 — Total assets $ 6,739 $ 1,316 $ 5,423 $ — Liabilities Interest rate hedges $ 354 $ — $ 354 $ — Foreign currency contracts 47 — 47 — Contingent consideration 4,652 — — 4,652 Total liabilities $ 5,053 $ — $ 401 $ 4,652 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, 2018 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets Significant other observable Significant Assets Cash and equivalents $ 7,289 $ 1,209 $ 6,080 $ — Time deposits 568 — 568 — Debt securities 1,536 — 1,536 — Equity securities 4 4 — — Foreign currency contracts 132 — 132 — Total assets $ 9,529 $ 1,213 $ 8,316 $ — Liabilities Interest rate hedges $ 466 $ — $ 466 $ — Foreign currency contracts 26 — 26 — Contingent consideration 4,483 — — 4,483 Total liabilities $ 4,975 $ — $ 492 $ 4,483 |
Schedule 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: Three months ended (in millions) 2019 2018 Beginning balance $ 4,483 $ 4,534 Change in fair value recognized in net earnings 169 (148 ) Ending balance $ 4,652 $ 4,386 |
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, 2018 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant observable Significant Liabilities Short-term borrowings $ 3,699 $ 3,693 $ — $ 3,693 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 1,609 1,617 1,609 8 — Long-term debt and finance lease obligations, excluding fair value hedges 35,468 34,052 34,024 28 — Total liabilities $ 40,776 $ 39,362 $ 35,633 $ 3,729 $ — The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of March 31, 2019 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair value Quoted prices in active markets for identical assets Significant observable Significant Liabilities Short-term borrowings $ 499 $ 499 $ — $ 499 $ — Current portion of long-term debt and finance lease obligations, excluding fair value hedges 1,579 1,586 1,576 10 — Long-term debt and finance lease obligations, excluding fair value hedges 35,420 35,362 35,339 23 — Total liabilities $ 37,498 $ 37,447 $ 36,915 $ 532 $ — |
Summary of available-for-sale securities by type | The following table summarizes available-for-sale securities by type as of March 31, 2019 : Amortized cost Gross unrealized Fair value (in millions) Gains Losses Asset backed securities $ 425 $ — $ (2 ) $ 423 Corporate debt securities 1,069 3 (4 ) 1,068 Other debt securities 120 — — 120 Total $ 1,614 $ 3 $ (6 ) $ 1,611 The following table summarizes available-for-sale securities by type as of December 31, 2018 : Amortized cost Gross unrealized Fair value (in millions) Gains Losses Asset backed securities $ 423 $ — $ (2 ) $ 421 Corporate debt securities 1,042 1 (9 ) 1,034 Other debt securities 81 — — 81 Total $ 1,546 $ 1 $ (11 ) $ 1,536 |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Summary of net periodic benefit costs | The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined Other post- Three months ended Three months ended (in millions) 2019 2018 2019 2018 Service cost $ 67 $ 72 $ 6 $ 8 Interest cost 64 57 6 8 Expected return on plan assets (119 ) (111 ) — — Amortization of actuarial losses and prior service cost (credit) 26 37 (1 ) 4 Net periodic benefit cost $ 38 $ 55 $ 11 $ 20 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of share-based compensation expense | Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and is summarized as follows: Three months ended (in millions) 2019 2018 Cost of products sold $ 15 $ 4 Research and development 72 72 Selling, general and administrative 102 115 Pre-tax compensation expense 189 191 Tax benefit 33 29 After-tax compensation expense $ 156 $ 162 |
Summary of quarterly cash dividends | The following table summarizes quarterly cash dividends declared during 2019 and 2018 : 2019 2018 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 02/21/19 05/15/19 $ 1.07 11/02/18 02/15/19 $ 1.07 09/07/18 11/15/18 $ 0.96 06/14/18 08/15/18 $ 0.96 02/15/18 05/15/18 $ 0.96 |
Summary of changes in balances of each component of accumulated other comprehensive loss | The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2018 : (in millions) Foreign Net investment hedging activities Pension and post- Marketable security activities Cash flow hedging Total Balance as of December 31, 2017 $ (439 ) $ (203 ) $ (1,919 ) $ — $ (166 ) $ (2,727 ) Other comprehensive income (loss) before reclassifications 189 (104 ) (11 ) (7 ) (45 ) 22 Net losses reclassified from accumulated other comprehensive loss — — 33 — 42 75 Net current-period other comprehensive income (loss) 189 (104 ) 22 (7 ) (3 ) 97 Balance as of March 31, 2018 $ (250 ) $ (307 ) $ (1,897 ) $ (7 ) $ (169 ) $ (2,630 ) The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 : (in millions) Foreign Net investment hedging activities Pension and post- Marketable security activities Cash flow hedging Total Balance as of December 31, 2018 $ (830 ) $ (65 ) $ (1,722 ) $ (10 ) $ 147 $ (2,480 ) Other comprehensive income (loss) before reclassifications (103 ) 65 5 7 5 (21 ) Net losses (gains) reclassified from accumulated other comprehensive loss — — 20 — (35 ) (15 ) Net current-period other comprehensive income (loss) (103 ) 65 25 7 (30 ) (36 ) Balance as of March 31, 2019 $ (933 ) $ — $ (1,697 ) $ (3 ) $ 117 $ (2,516 ) |
Schedule of the significant amounts reclassified out of each component of accumulated other comprehensive loss | The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended (in millions) (brackets denote gains) 2019 2018 Pension and post-employment benefits Amortization of actuarial losses and other (a) $ 25 $ 41 Tax benefit (5 ) (8 ) Total reclassifications, net of tax $ 20 $ 33 Cash flow hedging activities Losses (gains) on designated cash flow hedges (b) $ (40 ) $ 44 Tax expense (benefit) 5 (2 ) Total reclassifications, net of tax $ (35 ) $ 42 (a) Amounts are included in the computation of net periodic benefit cost (see Note 10 ). (b) Amounts are included in cost of products sold (see Note 9 ). |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of worldwide net revenues | AbbVie operates in one business segment—pharmaceutical products. The following table details AbbVie’s worldwide net revenues: Three months ended (in millions) 2019 2018 Immunology HUMIRA United States $ 3,215 $ 3,003 International 1,231 1,706 Total $ 4,446 $ 4,709 Hematologic Oncology IMBRUVICA United States $ 829 $ 624 Collaboration revenues 193 138 Total $ 1,022 $ 762 VENCLEXTA United States $ 105 $ 41 International 46 18 Total $ 151 $ 59 HCV MAVYRET United States $ 403 $ 340 International 387 508 Total $ 790 $ 848 VIEKIRA United States $ — $ 3 International 25 68 Total $ 25 $ 71 Other Key Products Creon United States $ 227 $ 209 Lupron United States $ 191 $ 177 International 38 42 Total $ 229 $ 219 Synthroid United States $ 182 $ 182 Synagis International $ 287 $ 321 Duodopa United States $ 22 $ 18 International 89 85 Total $ 111 $ 103 Sevoflurane United States $ 17 $ 17 International 75 89 Total $ 92 $ 106 Kaletra United States $ 13 $ 13 International 65 60 Total $ 78 $ 73 AndroGel United States $ 74 $ 130 All other $ 114 $ 142 Total net revenues $ 7,828 $ 7,934 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle | |||
Other assets | $ 1,567 | $ 1,208 | |
Accounts payable and accrued liabilities | 11,826 | 11,931 | |
Other long-term liabilities | $ 14,509 | $ 14,490 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle | |||
Other assets | $ 405 | ||
Accounts payable and accrued liabilities | 115 | ||
Other long-term liabilities | $ 290 |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Interest Expense, Net | |||
Interest expense | $ 387 | $ 309 | |
Interest income | (62) | (58) | |
Interest expense, net | 325 | 251 | |
Inventories | |||
Finished goods | 583 | $ 473 | |
Work-in-process | 880 | 862 | |
Raw materials | 239 | 270 | |
Inventories | 1,702 | 1,605 | |
Property and Equipment | |||
Property and equipment, gross | 8,370 | 8,396 | |
Accumulated depreciation | (5,510) | (5,513) | |
Property and equipment, net | 2,860 | $ 2,883 | |
Depreciation expense | $ 118 | $ 115 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic EPS | ||
Net earnings | $ 2,456 | $ 2,783 |
Earnings allocated to participating securities | 12 | 12 |
Earnings available to common shareholders | $ 2,444 | $ 2,771 |
Weighted-average basic shares outstanding (in shares) | 1,480 | 1,591 |
Basic earnings per share (in dollars per share) | $ 1.65 | $ 1.74 |
Diluted EPS | ||
Net earnings | $ 2,456 | $ 2,783 |
Earnings allocated to participating securities | 12 | 12 |
Earnings available to common shareholders | $ 2,444 | $ 2,771 |
Weighted-average basic shares outstanding (in shares) | 1,480 | 1,591 |
Effect of dilutive securities (in shares) | 3 | 5 |
Weighted-average diluted shares outstanding (in shares) | 1,483 | 1,596 |
Diluted earnings per share (in dollars per share) | $ 1.65 | $ 1.74 |
Licensing, Acquisitions, and _2
Licensing, Acquisitions, and Other Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Licensing, Acquisitions, and Other Arrangements | ||
Cash outflows related to acquisitions and investments | $ 320 | $ 372 |
Acquired in-process research and development | $ 155 | $ 69 |
Collaboration with Janssen Bi_3
Collaboration with Janssen Biotech, Inc. (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Collaborative and license agreements | |||
Accounts receivable, net | $ 5,680 | $ 5,384 | |
Accounts payable and accrued liabilities | $ 11,826 | 11,931 | |
Collaborative arrangement | |||
Collaborative and license agreements | |||
Share of collaboration development costs responsible by the entity (as a percent) | 40.00% | ||
Global - AbbVie's share of other costs (included in respective line items) | $ 72 | $ 71 | |
Collaborative arrangement | International | |||
Collaborative and license agreements | |||
International - AbbVie's share of profits (included in net revenues) | 193 | 138 | |
Janssen Biotech Inc | Collaborative arrangement | |||
Collaborative and license agreements | |||
Milestone payments | $ 200 | ||
Share of collaboration development costs responsible by Janssen (as a percent) | 60.00% | ||
Accounts receivable, net | $ 218 | 177 | |
Accounts payable and accrued liabilities | 373 | $ 376 | |
Janssen Biotech Inc | Collaborative arrangement | United States | |||
Collaborative and license agreements | |||
United States - Janssen's share of profits (included in cost of products sold) | $ 386 | $ 276 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Changes in the carrying amount of goodwill | |
Balance at the beginning of the period | $ 15,663,000,000 |
Foreign currency translation adjustments | (57,000,000) |
Balance at the end of the period | 15,606,000,000 |
Accumulated goodwill impairment losses | |
Accumulated goodwill impairment losses | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 23,730 | $ 23,737 |
Accumulated amortization | (7,804) | (7,424) |
Net carrying amount | 15,926 | 16,313 |
Indefinite-lived research and development | 4,920 | 4,920 |
Total intangible assets gross carrying amount | 28,650 | 28,657 |
Total intangible assets, net | 20,846 | 21,233 |
Developed product rights | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 15,865 | 15,872 |
Accumulated amortization | (5,857) | (5,614) |
Net carrying amount | 10,008 | 10,258 |
License agreements | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 7,865 | 7,865 |
Accumulated amortization | (1,947) | (1,810) |
Net carrying amount | $ 5,918 | $ 6,055 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible asset impairment charges | $ 0 | $ 0 | |
Indefinite-lived research and development assets | $ 4,920,000,000 | $ 4,920,000,000 | |
In-Process Research and Development | Stemcentrx Inc. | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible asset impairment charges | 5,100,000,000 | ||
Indefinite-lived research and development assets | $ 1,000,000,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 385,000,000 | $ 330,000,000 |
Definite-lived intangible assets impairment charges | $ 0 | $ 0 |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 167 | $ 22 |
Restructuring reserve activity | ||
Accrued balance beginning of the period | 99 | |
Restructuring charges | 154 | |
Payments and other adjustments | (44) | |
Accrued balance end of the period | $ 209 |
Leases - Balance Sheet Disclosu
Leases - Balance Sheet Disclosure (Details) $ in Millions | Mar. 31, 2019USD ($) | |
Assets | ||
Total lease assets | $ 433 | |
Liabilities | ||
Total lease liabilities | 450 | [1],[2] |
Other assets | ||
Assets | ||
Operating lease assets | 405 | |
Property and equipment, net | ||
Assets | ||
Finance lease assets | 28 | |
Accounts payable and accrued liabilities | ||
Liabilities | ||
Current operating lease liabilities | 110 | |
Other long-term liabilities | ||
Liabilities | ||
Noncurrent operating lease liabilities | 307 | |
Current portion of long-term debt and finance lease obligations | ||
Liabilities | ||
Current finance lease liabilities | 10 | |
Long-term debt and finance lease obligations | ||
Liabilities | ||
Noncurrent finance lease liabilities | $ 23 | |
[1] | Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. | |
[2] | Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence between years 2019 and 2020 with lease terms of approximately 11 years. |
Leases - Cost (Details)
Leases - Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 32 |
Finance lease amortization of right-of-use assets | 2 |
Finance lease interest on lease liabilities | 0 |
Short-term lease cost | 6 |
Variable lease cost | 15 |
Total lease cost | $ 55 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term for operating leases | 6 years |
Weighted-average remaining lease term for finance leases | 3 years |
Weighted-average discount rate for operating leases | 4.00% |
Weighted-average discount rate for finance leases | 4.50% |
Leases - Cash Flow Disclosure (
Leases - Cash Flow Disclosure (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 26 |
Operating cash flows from finance leases | 0 |
Financing cash flows from finance leases | 2 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 8 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Operating leases | ||
2019 | $ 93 | |
2020 | 117 | |
2021 | 97 | |
2022 | 52 | |
2023 | 34 | |
Thereafter | 78 | |
Total lease payments | 471 | |
Less: Interest | 54 | |
Present value of lease liabilities | 417 | |
Finance leases | ||
2019 | 10 | |
2020 | 11 | |
2021 | 10 | |
2022 | 2 | |
2023 | 1 | |
Thereafter | 0 | |
Total lease payments | 34 | |
Less: Interest | 1 | |
Present value of lease liabilities | 33 | |
Total | ||
2019 | 103 | [1],[2] |
2020 | 128 | [1],[2] |
2021 | 107 | [1],[2] |
2022 | 54 | [1],[2] |
2023 | 35 | [1],[2] |
Thereafter | 78 | [1],[2] |
Total lease payments | 505 | [1],[2] |
Less: Interest | 55 | [1],[2] |
Present value of lease liabilities | 450 | [1],[2] |
Contractual minimum lease payments for leases executed but not yet commenced | $ 350 | |
Lease term for leases executed but not yet commenced | 11 years | |
[1] | Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. | |
[2] | Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence between years 2019 and 2020 with lease terms of approximately 11 years. |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measures - Financial Instruments (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in asset position | $ 111 | $ 132 | |
Foreign currency contracts in liability position | $ 401 | 492 | |
Designated as hedging instrument | Net Investment Hedges | Senior notes | |||
Derivative instruments, notional amount and fair value | |||
Principal amount of unsecured senior notes | € 3,600,000,000 | 3,600 | |
Designated as hedging instrument | Foreign currency forward exchange contracts | |||
Derivative instruments, notional amount and fair value | |||
Duration of forward exchange contracts | 18 months | ||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash Flow Hedges | |||
Derivative instruments, notional amount and fair value | |||
Notional amount of derivative instruments | $ 802 | 1,400 | |
Approximate length of time over which accumulated gains and losses will be recognized in Cost of products sold | 6 months | ||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash Flow Hedges | Prepaid expenses and other | |||
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in asset position | $ 69 | 113 | |
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash Flow Hedges | Accounts payable and accrued liabilities | |||
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in liability position | 0 | 0 | |
Designated as hedging instrument | Interest rate contracts | Fair Value Hedges | |||
Derivative instruments, notional amount and fair value | |||
Notional amount of derivative instruments | 10,800 | 10,800 | |
Designated as hedging instrument | Interest rate contracts | Fair Value Hedges | Other assets | |||
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in asset position | 0 | 0 | |
Designated as hedging instrument | Interest rate contracts | Fair Value Hedges | Other long-term liabilities | |||
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in liability position | 354 | 466 | |
Not designated as hedging instrument | Foreign currency forward exchange contracts | |||
Derivative instruments, notional amount and fair value | |||
Notional amount of derivative instruments | 9,900 | 8,600 | |
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other | |||
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in asset position | 42 | 19 | |
Not designated as hedging instrument | Foreign currency forward exchange contracts | Accounts payable and accrued liabilities | |||
Derivative instruments, notional amount and fair value | |||
Foreign currency contracts in liability position | $ 47 | $ 26 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measures - Amount Of Gain/(Loss) Recognized For Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Gain (loss) on derivatives | ||
Foreign currency cash flow hedge gain expected to be reclassified during next 12 months | $ 126 | |
Fair Value Hedges | Interest expense, net | ||
Gain (loss) on derivatives | ||
Debt designated as hedged item in fair value hedges gain (loss) | (112) | $ 184 |
Senior notes | Designated as hedging instrument | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) from non-derivative net investment hedge recognized in other comprehensive income | 84 | (134) |
Foreign currency forward exchange contracts | ||
Gain (loss) on derivatives | ||
Pre-tax gains (losses) from derivative instruments recognized in other comprehensive income | 3 | (48) |
Foreign currency forward exchange contracts | Not designated as hedges | Net foreign exchange loss | ||
Gain (loss) on derivatives | ||
Derivative gain (loss), net | 15 | (59) |
Foreign currency forward exchange contracts | Cash Flow Hedges | Designated as hedging instrument | Cost of products sold | ||
Gain (loss) on derivatives | ||
Derivative gain (loss), net | 40 | (44) |
Interest rate swaps designated as fair value hedges | Fair Value Hedges | Designated as hedging instrument | Interest expense, net | ||
Gain (loss) on derivatives | ||
Derivative gain (loss), net | $ 112 | $ (184) |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measures - Fair Value Measures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | ||
Foreign currency contracts | $ 111 | $ 132 |
Liabilities | ||
Foreign currency contracts | $ 401 | 492 |
Changes Measurement | Change In Assumed Discount Rate | ||
Liabilities | ||
Discount rate change | 50.00% | |
Contingent consideration liability change | $ 170 | |
Changes Measurement | Change In Assumed Probability Rate | ||
Liabilities | ||
Contingent consideration liability change | $ 410 | |
Assumed probability rate change | 5.00% | |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Total liabilities | $ 36,915 | 35,633 |
Significant other observable inputs (Level 2) | ||
Liabilities | ||
Total liabilities | 532 | 3,729 |
Significant unobservable inputs (Level 3) | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Recurring | ||
Assets | ||
Cash and equivalents | 4,897 | 7,289 |
Debt securities | 1,611 | 1,536 |
Equity securities | 52 | 4 |
Total assets | 6,739 | 9,529 |
Liabilities | ||
Interest rate hedges | 354 | 466 |
Contingent consideration | 4,652 | 4,483 |
Total liabilities | 5,053 | 4,975 |
Recurring | Foreign Currency Contract | ||
Assets | ||
Foreign currency contracts | 111 | 132 |
Liabilities | ||
Foreign currency contracts | 47 | 26 |
Recurring | Time deposits | ||
Assets | ||
Time deposits | 68 | 568 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Cash and equivalents | 1,264 | 1,209 |
Debt securities | 0 | 0 |
Equity securities | 52 | 4 |
Total assets | 1,316 | 1,213 |
Liabilities | ||
Interest rate hedges | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Foreign Currency Contract | ||
Assets | ||
Foreign currency contracts | 0 | 0 |
Liabilities | ||
Foreign currency contracts | 0 | 0 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Time deposits | ||
Assets | ||
Time deposits | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | ||
Assets | ||
Cash and equivalents | 3,633 | 6,080 |
Debt securities | 1,611 | 1,536 |
Equity securities | 0 | 0 |
Total assets | 5,423 | 8,316 |
Liabilities | ||
Interest rate hedges | 354 | 466 |
Contingent consideration | 0 | 0 |
Total liabilities | 401 | 492 |
Recurring | Significant other observable inputs (Level 2) | Foreign Currency Contract | ||
Assets | ||
Foreign currency contracts | 111 | 132 |
Liabilities | ||
Foreign currency contracts | 47 | 26 |
Recurring | Significant other observable inputs (Level 2) | Time deposits | ||
Assets | ||
Time deposits | 68 | 568 |
Recurring | Significant unobservable inputs (Level 3) | ||
Assets | ||
Cash and equivalents | 0 | 0 |
Debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Interest rate hedges | 0 | 0 |
Contingent consideration | 4,652 | 4,483 |
Total liabilities | 4,652 | 4,483 |
Recurring | Significant unobservable inputs (Level 3) | Foreign Currency Contract | ||
Assets | ||
Foreign currency contracts | 0 | 0 |
Liabilities | ||
Foreign currency contracts | 0 | 0 |
Recurring | Significant unobservable inputs (Level 3) | Time deposits | ||
Assets | ||
Time deposits | $ 0 | $ 0 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measures - Transfers of Assets or Liabilities Between The Fair Value Measurement Levels (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Transfers of assets or liabilities between the fair value measurement levels | ||
Transfer of assets from level 1 to level 2 | $ 0 | |
Transfer of assets from level 2 to level 1 | 0 | |
Transfer of liabilities from level 1 to level 2 | 0 | |
Transfer of liabilities from level 2 to level 1 | 0 | |
Reconciliation of the fair value measurements that use significant unobservable inputs (Level 3) | ||
Beginning balance | 4,483,000,000 | $ 4,534,000,000 |
Change in fair value recognized in net earnings | 169,000,000 | (148,000,000) |
Ending balance | $ 4,652,000,000 | $ 4,386,000,000 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measures - Bases Used To Measure The Approximate Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Liabilities | ||
Carrying amount of investments in equity securities that do not have readily determinable fair values | $ 77 | $ 84 |
Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Short-term borrowings | 0 | 0 |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 1,576 | 1,609 |
Long-term debt and finance lease obligations, excluding fair value hedges | 35,339 | 34,024 |
Total liabilities | 36,915 | 35,633 |
Significant other observable inputs (Level 2) | ||
Liabilities | ||
Short-term borrowings | 499 | 3,693 |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 10 | 8 |
Long-term debt and finance lease obligations, excluding fair value hedges | 23 | 28 |
Total liabilities | 532 | 3,729 |
Significant unobservable inputs (Level 3) | ||
Liabilities | ||
Short-term borrowings | 0 | 0 |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 0 | 0 |
Long-term debt and finance lease obligations, excluding fair value hedges | 0 | 0 |
Total liabilities | 0 | 0 |
Book value | ||
Liabilities | ||
Short-term borrowings | 499 | 3,699 |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 1,579 | 1,609 |
Long-term debt and finance lease obligations, excluding fair value hedges | 35,420 | 35,468 |
Total liabilities | 37,498 | 40,776 |
Approximate fair value | ||
Liabilities | ||
Short-term borrowings | 499 | 3,693 |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 1,586 | 1,617 |
Long-term debt and finance lease obligations, excluding fair value hedges | 35,362 | 34,052 |
Total liabilities | $ 37,447 | $ 39,362 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measures - Available-for-sale Securities (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities | ||
Maximum maturity period of long-term debt securities (in years) | 5 years | |
Amortized cost | $ 1,614,000,000 | $ 1,546,000,000 |
Gross unrealized, Gains | 3,000,000 | 1,000,000 |
Gross unrealized, Losses | (6,000,000) | (11,000,000) |
Fair value | 1,611,000,000 | 1,536,000,000 |
Other-than-temporary impairments | 0 | |
Short-term investments | ||
Available-for-sale Securities | ||
Debt securities | 263,000,000 | 204,000,000 |
Asset backed securities | ||
Available-for-sale Securities | ||
Amortized cost | 425,000,000 | 423,000,000 |
Gross unrealized, Gains | 0 | 0 |
Gross unrealized, Losses | (2,000,000) | (2,000,000) |
Fair value | 423,000,000 | 421,000,000 |
Corporate debt securities | ||
Available-for-sale Securities | ||
Amortized cost | 1,069,000,000 | 1,042,000,000 |
Gross unrealized, Gains | 3,000,000 | 1,000,000 |
Gross unrealized, Losses | (4,000,000) | (9,000,000) |
Fair value | 1,068,000,000 | 1,034,000,000 |
Other debt securities | ||
Available-for-sale Securities | ||
Amortized cost | 120,000,000 | 81,000,000 |
Gross unrealized, Gains | 0 | 0 |
Gross unrealized, Losses | 0 | 0 |
Fair value | $ 120,000,000 | $ 81,000,000 |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Measures - Concentrations of Risk (Details) - wholesaler | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounts receivable, net | ||
Concentration of Risk | ||
Number of principal customers | 3 | |
Accounts receivable, net | Geographic Risk | ||
Concentration of Risk | ||
Concentrations risk (as a percent) | 63.00% | 63.00% |
Total revenues | HUMIRA | ||
Concentration of Risk | ||
Concentrations risk (as a percent) | 57.00% | 59.00% |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Measures - Debt and Credit Facilities (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Short-Term Borrowings | |||||
Short-term borrowings | $ 499,000,000 | $ 499,000,000 | $ 3,699,000,000 | ||
Repayments of other short-term borrowings | 3,000,000,000 | $ 0 | |||
Commercial paper | |||||
Short-Term Borrowings | |||||
Short-term borrowings | $ 499,000,000 | $ 499,000,000 | $ 699,000,000 | ||
Weighted-average interest rate on commercial paper (as a percent) | 2.80% | 2.80% | 1.80% | ||
Term loan facilities | May 2018 term loan credit agreement | |||||
Short-Term Borrowings | |||||
Repayments of other short-term borrowings | $ 3,000,000,000 | ||||
Term loan credit agreement term | 364 days |
Post-Employment Benefits (Detai
Post-Employment Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined benefit plans | ||
Defined benefit and other post-employment plans | ||
Service cost | $ 67 | $ 72 |
Interest cost | 64 | 57 |
Expected return on plan assets | (119) | (111) |
Amortization of actuarial losses and prior service cost (credit) | 26 | 37 |
Net periodic benefit cost | 38 | 55 |
Other post-employment plans | ||
Defined benefit and other post-employment plans | ||
Service cost | 6 | 8 |
Interest cost | 6 | 8 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial losses and prior service cost (credit) | (1) | 4 |
Net periodic benefit cost | $ 11 | $ 20 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | $ 189 | $ 191 |
Tax benefit | 33 | 29 |
After-tax compensation expense | 156 | 162 |
Cost of products sold | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | 15 | 4 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | 72 | 72 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pre-tax compensation expense | $ 102 | $ 115 |
Equity - Stock Options (Details
Equity - Stock Options (Details) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock options granted (in shares) | shares | 1 |
Weighted-average grant-date fair value of the stock options granted (in dollars per share) | $ / shares | $ 12.54 |
Unrecognized compensation cost | $ | $ 10 |
Period for recognition of unrecognized compensation cost | 2 years |
Equity - RSUs and Performance S
Equity - RSUs and Performance Shares (Details) - RSUs and Performance Shares $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Shares granted (in shares) | shares | 5.2 |
Fair market value of awards vested (in dollars per share) | $ / shares | $ 79.07 |
Unrecognized compensation cost | $ | $ 489 |
Period for recognition of unrecognized compensation cost | 2 years |
Equity - Cash Dividends (Detail
Equity - Cash Dividends (Details) - $ / shares | Feb. 21, 2019 | Nov. 02, 2018 | Sep. 07, 2018 | Jun. 14, 2018 | Feb. 15, 2018 |
Stockholders' Equity Note [Abstract] | |||||
Cash dividends declared per common share (in dollars per share) | $ 1.07 | $ 1.07 | $ 0.96 | $ 0.96 | $ 0.96 |
Equity - Stock Repurchase Progr
Equity - Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity, Class of Treasury Stock | ||
Payment for shares repurchased | $ 419 | $ 1,431 |
Remaining share repurchase authorization amount | $ 4,000 | |
December 2018 Stock Repurchase Authorization | ||
Equity, Class of Treasury Stock | ||
Shares repurchased (in shares) | 4 | |
Payment for shares repurchased | $ 300 | |
February 2017 Stock Repurchase Program | ||
Equity, Class of Treasury Stock | ||
Shares repurchased (in shares) | 11 | |
Payment for shares repurchased | $ 1,300 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | $ (8,446) | $ 5,097 |
Other comprehensive income (loss) | (36) | 97 |
Ending balance | (7,826) | 3,553 |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (2,480) | (2,727) |
Other comprehensive income (loss) before reclassifications | (21) | 22 |
Net losses (gains) reclassified from accumulated other comprehensive loss | (15) | 75 |
Other comprehensive income (loss) | (36) | 97 |
Ending balance | (2,516) | (2,630) |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (830) | (439) |
Other comprehensive income (loss) before reclassifications | (103) | 189 |
Net losses (gains) reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income (loss) | (103) | 189 |
Ending balance | (933) | (250) |
Net investment hedging activities | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (65) | (203) |
Other comprehensive income (loss) before reclassifications | 65 | (104) |
Net losses (gains) reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income (loss) | 65 | (104) |
Ending balance | 0 | (307) |
Pension and post- employment benefits | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (1,722) | (1,919) |
Other comprehensive income (loss) before reclassifications | 5 | (11) |
Net losses (gains) reclassified from accumulated other comprehensive loss | 20 | 33 |
Other comprehensive income (loss) | 25 | 22 |
Ending balance | (1,697) | (1,897) |
Marketable security activities | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (10) | 0 |
Other comprehensive income (loss) before reclassifications | 7 | (7) |
Net losses (gains) reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income (loss) | 7 | (7) |
Ending balance | (3) | (7) |
Cash flow hedging activities | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | 147 | (166) |
Other comprehensive income (loss) before reclassifications | 5 | (45) |
Net losses (gains) reclassified from accumulated other comprehensive loss | (35) | 42 |
Other comprehensive income (loss) | (30) | (3) |
Ending balance | $ 117 | $ (169) |
Equity - Amounts Reclassified O
Equity - Amounts Reclassified Out Of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension and post- employment benefits | ||
Significant amounts reclassified out of each component of AOCI | ||
Reclassifications from accumulated other comprehensive income, before tax | $ 25 | $ 41 |
Tax (benefit) expense | (5) | (8) |
Reclassifications from accumulated other comprehensive income, after tax | 20 | 33 |
Cash flow hedging activities | ||
Significant amounts reclassified out of each component of AOCI | ||
Reclassifications from accumulated other comprehensive income, before tax | (40) | 44 |
Tax (benefit) expense | 5 | (2) |
Reclassifications from accumulated other comprehensive income, after tax | $ (35) | $ 42 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 3.00% | 1.00% |
U.S. statutory tax rate | 21.00% | 21.00% |
Potential change in unrecognized tax benefits | $ 311 |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||||||||||
Jun. 30, 2018USD ($) | Mar. 31, 2017 | Jun. 30, 2016investment_fund | Nov. 30, 2014individual | Sep. 30, 2014company | Aug. 31, 2018lawsuitclass_action | Mar. 31, 2019USD ($)claim | Mar. 31, 2019USD ($)claimdirect_purchaser | Mar. 31, 2019USD ($)claimcompany | Mar. 31, 2019USD ($)claimlawsuit | Mar. 31, 2019USD ($)claimclass_action | Mar. 31, 2019USD ($)claimend_payor_purchaser | Dec. 31, 2018USD ($) | |
Legal Proceedings and Contingencies | |||||||||||||
Recorded accrual balance for litigation | $ | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | $ 350,000,000 | ||||||
Number of individual putative class action lawsuit | individual | 5 | ||||||||||||
Percentage of claims subject to settlement agreements | 90.00% | ||||||||||||
Depakote | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
Number of claims pending | claim | 170 | 170 | 170 | 170 | 170 | 170 | |||||||
AndroGel Antitrust Litigation | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
Recorded accrual balance for litigation | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Number of generic companies with whom certain litigation related agreements were entered into | company | 2 | 3 | |||||||||||
Number of individual plaintiff lawsuits | lawsuit | 2 | 4 | |||||||||||
Number of purported class actions | class_action | 3 | ||||||||||||
Number of individual putative class action lawsuit | class_action | 1 | ||||||||||||
AndroGel Antitrust Litigation | Disgorgement remedy | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
Damages awarded against company | $ | $ 448,000,000 | ||||||||||||
Niaspan | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
Number of individual plaintiff lawsuits | lawsuit | 4 | ||||||||||||
Number of purported class actions | class_action | 3 | ||||||||||||
Number of healthcare benefit providers who filed lawsuits | 1 | 2 | |||||||||||
Elliott Associates, L.P. | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
Number of parties to lawsuit (in investment funds) | investment_fund | 5 | ||||||||||||
Testosterone Replacement Therapy Products Liability Litigation | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
Numbers of claims consolidated for pre-trial purposes | claim | 3,900 | 3,900 | 3,900 | 3,900 | 3,900 | 3,900 | |||||||
Number of claims pending | claim | 200 | 200 | 200 | 200 | 200 | 200 | |||||||
Novartis Vaccines and Diagnostics Inc and Grifols Worldwide Operations Ltd [Member] | |||||||||||||
Legal Proceedings and Contingencies | |||||||||||||
HCV-related patents | 11 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue | ||
Total net revenues | $ 7,828 | $ 7,934 |
All other | ||
Disaggregation of Revenue | ||
Net revenues | 114 | 142 |
Immunology | HUMIRA | ||
Disaggregation of Revenue | ||
Net revenues | 4,446 | 4,709 |
Immunology | HUMIRA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 3,215 | 3,003 |
Immunology | HUMIRA | International | ||
Disaggregation of Revenue | ||
Net revenues | 1,231 | 1,706 |
Hematologic Oncology | IMBRUVICA | ||
Disaggregation of Revenue | ||
Net revenues | 1,022 | 762 |
Hematologic Oncology | IMBRUVICA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 829 | 624 |
Hematologic Oncology | IMBRUVICA | International | ||
Disaggregation of Revenue | ||
Collaboration revenues | 193 | 138 |
Hematologic Oncology | VENCLEXTA | ||
Disaggregation of Revenue | ||
Net revenues | 151 | 59 |
Hematologic Oncology | VENCLEXTA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 105 | 41 |
Hematologic Oncology | VENCLEXTA | International | ||
Disaggregation of Revenue | ||
Net revenues | 46 | 18 |
HCV | MAVYRET | ||
Disaggregation of Revenue | ||
Net revenues | 790 | 848 |
HCV | MAVYRET | United States | ||
Disaggregation of Revenue | ||
Net revenues | 403 | 340 |
HCV | MAVYRET | International | ||
Disaggregation of Revenue | ||
Net revenues | 387 | 508 |
HCV | VIEKIRA | ||
Disaggregation of Revenue | ||
Net revenues | 25 | 71 |
HCV | VIEKIRA | United States | ||
Disaggregation of Revenue | ||
Net revenues | 0 | 3 |
HCV | VIEKIRA | International | ||
Disaggregation of Revenue | ||
Net revenues | 25 | 68 |
Other Key Products | Creon | United States | ||
Disaggregation of Revenue | ||
Net revenues | 227 | 209 |
Other Key Products | Lupron | ||
Disaggregation of Revenue | ||
Net revenues | 229 | 219 |
Other Key Products | Lupron | United States | ||
Disaggregation of Revenue | ||
Net revenues | 191 | 177 |
Other Key Products | Lupron | International | ||
Disaggregation of Revenue | ||
Net revenues | 38 | 42 |
Other Key Products | Synthroid | United States | ||
Disaggregation of Revenue | ||
Net revenues | 182 | 182 |
Other Key Products | Synagis | International | ||
Disaggregation of Revenue | ||
Net revenues | 287 | 321 |
Other Key Products | Duodopa | ||
Disaggregation of Revenue | ||
Net revenues | 111 | 103 |
Other Key Products | Duodopa | United States | ||
Disaggregation of Revenue | ||
Net revenues | 22 | 18 |
Other Key Products | Duodopa | International | ||
Disaggregation of Revenue | ||
Net revenues | 89 | 85 |
Other Key Products | Sevoflurane | ||
Disaggregation of Revenue | ||
Net revenues | 92 | 106 |
Other Key Products | Sevoflurane | United States | ||
Disaggregation of Revenue | ||
Net revenues | 17 | 17 |
Other Key Products | Sevoflurane | International | ||
Disaggregation of Revenue | ||
Net revenues | 75 | 89 |
Other Key Products | Kaletra | ||
Disaggregation of Revenue | ||
Net revenues | 78 | 73 |
Other Key Products | Kaletra | United States | ||
Disaggregation of Revenue | ||
Net revenues | 13 | 13 |
Other Key Products | Kaletra | International | ||
Disaggregation of Revenue | ||
Net revenues | 65 | 60 |
Other Key Products | AndroGel | United States | ||
Disaggregation of Revenue | ||
Net revenues | $ 74 | $ 130 |
Uncategorized Items - abbv-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,733,000,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Common Stock [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Treasury Stock [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,733,000,000) |