Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35565 | ||
Entry Registrant Name | AbbVie Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 32-0375147 | ||
Entity Address, Address Line One | 1 North Waukegan Road | ||
Entity Address, City or Town | North Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60064-6400 | ||
City Area Code | 847 | ||
Local Phone Number | 932-7900 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 106,362,457,090 | ||
Entity Common Stock, Shares Outstanding | 1,479,156,683 | ||
Entity Central Index Key | 0001551152 | ||
Amendment Flag | false | ||
Current Fiscal Year End | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Common stock | NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ABBV | ||
Security Exchange Name | NYSE | ||
Common stock | CHICAGO STOCK EXCHANGE, INC [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ABBV | ||
Security Exchange Name | CHX | ||
Sec 1.375 Senior Notes Due 2024 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.375% Senior Notes due 2024 | ||
Trading Symbol | ABBV24 | ||
Security Exchange Name | NYSE | ||
Sec 0.750 Senior Notes Due 2027 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.750% Senior Notes due 2027 | ||
Trading Symbol | ABBV27 | ||
Security Exchange Name | NYSE | ||
Sec 2.125 Senior Notes due 2028 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.125% Senior Notes due 2028 | ||
Trading Symbol | ABBV28 | ||
Security Exchange Name | NYSE | ||
Sec 1.250 Senior Notes due 2031 [Member] | NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2031 | ||
Trading Symbol | ABBV31 | ||
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net revenues | $ 33,266 | $ 32,753 | $ 28,216 |
Cost of products sold | 7,439 | 7,718 | 7,042 |
Selling, general and administrative | 6,942 | 7,399 | 6,295 |
Research and development | 6,407 | 10,329 | 5,007 |
Acquired in-process research and development | 385 | 424 | 327 |
Other operating expense (income) | (890) | 500 | 0 |
Total operating costs and expenses | 20,283 | 26,370 | 18,671 |
Operating earnings | 12,983 | 6,383 | 9,545 |
Interest expense, net | 1,509 | 1,144 | 1,004 |
Net foreign exchange loss | 42 | 24 | 348 |
Other expense, net | 3,006 | 18 | 466 |
Earnings before income tax | 8,426 | 5,197 | 7,727 |
Income tax expense (benefit) | 544 | (490) | 2,418 |
Net earnings | $ 7,882 | $ 5,687 | $ 5,309 |
Per share data | |||
Basic earnings per share (in dollars per share) | $ 5.30 | $ 3.67 | $ 3.31 |
Diluted earnings per share (in dollars per share) | $ 5.28 | $ 3.66 | $ 3.30 |
Weighted-average basic shares outstanding (in shares) | 1,481 | 1,541 | 1,596 |
Weighted-average diluted shares outstanding (in shares) | 1,484 | 1,546 | 1,603 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 7,882 | $ 5,687 | $ 5,309 |
Foreign currency translation adjustments, net of tax expense (benefit) of $(4) in 2019, $(18) in 2018 and $34 in 2017 | (98) | (391) | 996 |
Net investment hedging activities, net of tax expense (benefit) of $22 in 2019, $40 in 2018 and $(194) in 2017 | 74 | 138 | (343) |
Pension and post-employment benefits, net of tax expense (benefit) of $(323) in 2019, $35 in 2018 and $(94) in 2017 | (1,243) | 197 | (406) |
Marketable security activities, net of tax expense (benefit) of $— in 2019, $— in 2018 and $(8) in 2017 | 10 | (10) | (46) |
Cash flow hedging activities, net of tax expense (benefit) of $70 in 2019, $23 in 2018 and $(26) in 2017 | 141 | 313 | (342) |
Other comprehensive income (loss) | (1,116) | 247 | (141) |
Comprehensive income | $ 6,766 | $ 5,934 | $ 5,168 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax expense (benefit) | $ (4) | $ (18) | $ 34 |
Hedging activities, tax expense (benefit) | 22 | 40 | (194) |
Pension and post-employment benefits, tax expense (benefit) | (323) | 35 | (94) |
Marketable security activities, tax expense (benefit) | 0 | 0 | (8) |
Hedging activities, tax expense (benefit) | $ 70 | $ 23 | $ (26) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and equivalents | $ 39,924 | $ 7,289 |
Short-term investments | 0 | 772 |
Accounts receivable, net | 5,428 | 5,384 |
Inventories | 1,813 | 1,605 |
Prepaid expenses and other | 2,354 | 1,895 |
Total current assets | 49,519 | 16,945 |
Investments | 93 | 1,420 |
Property and equipment, net | 2,962 | 2,883 |
Intangible assets, net | 18,649 | 21,233 |
Goodwill | 15,604 | 15,663 |
Other assets | 2,288 | 1,208 |
Total assets | 89,115 | 59,352 |
Current liabilities | ||
Short-term borrowings | 0 | 3,699 |
Current portion of long-term debt and finance lease obligations | 3,753 | 1,609 |
Accounts payable and accrued liabilities | 11,832 | 11,931 |
Total current liabilities | 15,585 | 17,239 |
Long-term debt and finance lease obligations | 62,975 | 35,002 |
Deferred income taxes | 1,130 | 1,067 |
Other long-term liabilities | 17,597 | 14,490 |
Commitments and contingencies | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,781,582,608 shares issued as of December 31, 2019 and 1,776,510,871 as of December 31, 2018 | 18 | 18 |
Common stock held in treasury, at cost, 302,671,146 shares as of December 31, 2019 and 297,686,473 as of December 31, 2018 | (24,504) | (24,108) |
Additional paid-in capital | 15,193 | 14,756 |
Retained earnings | 4,717 | 3,368 |
Accumulated other comprehensive loss | (3,596) | (2,480) |
Total stockholders’ equity (deficit) | (8,172) | (8,446) |
Total liabilities and equity | $ 89,115 | $ 59,352 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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) | 1,781,582,608 | 1,776,510,871 |
Common stock held in treasury, at cost (in shares) | 302,671,146 | 297,686,473 |
Consolidated Statements of Equi
Consolidated Statements of Equity - 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, 2016 | $ 4,636 | $ 18 | $ (10,852) | $ 13,678 | $ 4,378 | $ (2,586) |
Beginning balance (in shares) at Dec. 31, 2016 | 1,593 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 5,309 | $ 0 | 0 | 0 | 5,309 | 0 |
Other comprehensive income, net of tax | (141) | 0 | 0 | 0 | 0 | (141) |
Dividends declared | (4,221) | 0 | 0 | 0 | (4,221) | 0 |
Purchases of treasury stock | (1,125) | $ 0 | (1,125) | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (15) | |||||
Stock-based compensation plans and other | 639 | $ 0 | 54 | 592 | (7) | 0 |
Stock-based compensation plans and other (in shares) | 14 | |||||
Ending balance at Dec. 31, 2017 | 5,097 | $ 18 | (11,923) | 14,270 | 5,459 | (2,727) |
Ending balance (in shares) at Dec. 31, 2017 | 1,592 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 5,687 | $ 0 | 0 | 0 | 5,687 | 0 |
Other comprehensive income, net of tax | 247 | 0 | 0 | 0 | 0 | 247 |
Dividends declared | (6,045) | 0 | 0 | 0 | (6,045) | 0 |
Purchases of treasury stock | (12,215) | $ 0 | (12,215) | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (121) | |||||
Stock-based compensation plans and other | 516 | $ 0 | 30 | 486 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 8 | |||||
Ending balance at Dec. 31, 2018 | (8,446) | $ 18 | (24,108) | 14,756 | 3,368 | (2,480) |
Ending balance (in shares) at Dec. 31, 2018 | 1,479 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 7,882 | $ 0 | 0 | 0 | 7,882 | 0 |
Other comprehensive income, net of tax | (1,116) | 0 | 0 | 0 | 0 | (1,116) |
Dividends declared | (6,533) | 0 | 0 | 0 | (6,533) | 0 |
Purchases of treasury stock | (428) | $ 0 | (428) | 0 | 0 | 0 |
Purchases of treasury stock (in shares) | (5) | |||||
Stock-based compensation plans and other | 469 | $ 0 | 32 | 437 | 0 | 0 |
Stock-based compensation plans and other (in shares) | 5 | |||||
Ending balance at Dec. 31, 2019 | $ (8,172) | $ 18 | $ (24,504) | $ 15,193 | $ 4,717 | $ (3,596) |
Ending balance (in shares) at Dec. 31, 2019 | 1,479 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net earnings | $ 7,882 | $ 5,687 | $ 5,309 |
Adjustments to reconcile net earnings to net cash from operating activities: | |||
Depreciation | 464 | 471 | 425 |
Amortization of intangible assets | 1,553 | 1,294 | 1,076 |
Change in fair value of contingent consideration liabilities | 3,091 | 49 | 626 |
Stock-based compensation | 430 | 421 | 365 |
Upfront costs and milestones related to collaborations | 490 | 1,061 | 470 |
Gain on divestitures | (330) | 0 | 0 |
Intangible asset impairment | 1,030 | 5,070 | 354 |
Impacts related to U.S. tax reform | 0 | 424 | 1,242 |
Other, net | 43 | 76 | 84 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (74) | (591) | (391) |
Inventories | (231) | (226) | 93 |
Prepaid expenses and other assets | 97 | (499) | (118) |
Accounts payable and other liabilities | (1,121) | 190 | 425 |
Cash flows from operating activities | 13,324 | 13,427 | 9,960 |
Cash flows from investing activities | |||
Acquisitions and investments | (1,135) | (736) | (308) |
Acquisitions of property and equipment | (552) | (638) | (529) |
Purchases of investment securities | (583) | (1,792) | (2,230) |
Sales and maturities of investment securities | 2,699 | 2,160 | 2,793 |
Other | 167 | 0 | 0 |
Cash flows from investing activities | 596 | (1,006) | (274) |
Cash flows from financing activities | |||
Net change in commercial paper borrowings | (699) | 299 | 23 |
Proceeds from issuance of other short-term borrowings | 0 | 3,002 | 0 |
Repayments of other short-term borrowings | (3,000) | 0 | 0 |
Proceeds from issuance of long-term debt | 31,482 | 5,963 | |
Repayments of long-term debt and finance lease obligations | (1,536) | (6,035) | (25) |
Debt issuance costs | (424) | (40) | 0 |
Dividends paid | (6,366) | (5,580) | (4,107) |
Purchases of treasury stock | (629) | (12,014) | (1,410) |
Proceeds from the exercise of stock options | 8 | 73 | 254 |
Payments of contingent consideration liabilities | (163) | (78) | (268) |
Other, net | 35 | 14 | 21 |
Cash flows from financing activities | 18,708 | (14,396) | (5,512) |
Effect of exchange rate changes on cash and equivalents | 7 | (39) | 29 |
Net change in cash and equivalents | 32,635 | (2,014) | 4,203 |
Cash and equivalents, beginning of year | 7,289 | 9,303 | 5,100 |
Cash and equivalents, end of year | 39,924 | 7,289 | 9,303 |
Other supplemental information | |||
Interest paid, net of portion capitalized | 1,794 | 1,215 | 1,099 |
Income taxes paid | $ 1,447 | $ 1,696 | |
Income taxes received | $ 35 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background Background The principal business of AbbVie Inc. (AbbVie or the company) is the discovery, development, manufacture and sale of a broad line of pharmaceutical products. AbbVie's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses. In the United States, AbbVie distributes pharmaceutical products principally through independent wholesale distributors, with some sales directly to pharmacies and patients. Outside the United States, AbbVie sells products primarily to customers or through distributors, depending on the market served. AbbVie was incorporated in Delaware on April 10, 2012. On January 1, 2013, AbbVie became an independent, publicly-traded company as a result of the distribution by Abbott Laboratories (Abbott) of 100% of the outstanding common stock of AbbVie to Abbott's shareholders. On June 25, 2019, AbbVie announced that it entered into a definitive transaction agreement under which AbbVie will acquire Allergan plc (Allergan). See Note 5 for additional information regarding the proposed acquisition. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for rebates, pension and other post-employment benefits, income taxes, litigation, valuation of goodwill and intangible assets, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures. Basis of Consolidation The consolidated financial statements include the accounts of AbbVie and all of its subsidiaries in which a controlling interest is maintained. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, where AbbVie is determined to be the primary beneficiary. Investments in companies over which AbbVie has a significant influence but not a controlling interest are accounted for using the equity method with AbbVie's share of earnings or losses reported in other expense, net in the consolidated statements of earnings. Intercompany balances and transactions are eliminated. Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period presentation. Revenue Recognition AbbVie recognizes revenue when control of promised goods or services is transferred to the company’s customers, in an amount that reflects the consideration AbbVie expects to be entitled to in exchange for those goods or services. Sales, value add and other taxes collected concurrent with revenue-producing activities are excluded from revenue. AbbVie generates revenue primarily from product sales. For the majority of sales, the company transfers control, invoices the customer and recognizes revenue upon shipment to the customer. The company recognizes shipping and handling costs as an expense in cost of products sold when the company transfers control to the customer. Payment terms vary depending on the type and location of the customer, are based on customary commercial terms and are generally less than one year. AbbVie does not adjust revenue for the effects of a significant financing component for contracts where AbbVie expects the period between the transfer of the good or service and collection to be one year or less. Discounts, rebates, sales incentives to customers, returns and certain other adjustments are accounted for as variable consideration. Provisions for variable consideration are based on current pricing, executed contracts, government pricing legislation and historical data and are provided for in the period the related revenues are recorded. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer. For each type of rebate, factors used in the calculation of the accrual include the identification of the products subject to the rebate, the applicable price terms and the estimated lag time between sale and payment of the rebate, which can be significant. Sales incentives to customers are insignificant. In addition to revenue from contracts with customers, the company also recognizes certain collaboration revenues. See Note 6 for additional information related to the collaboration with Janssen Biotech, Inc. Additionally, see Note 16 for disaggregation of revenue by product and geography. Research and Development Expenses Internal research and development (R&D) costs are expensed as incurred. Clinical trial costs incurred by third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development collaborations, prior to regulatory approval, the payment obligations are expensed when the milestone results are achieved. Payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the remaining useful life of the related product. Collaborations and Other Arrangements The company enters into collaborative agreements with third parties to develop and commercialize drug candidates. Collaborative activities may include joint research and development and commercialization of new products. AbbVie generally receives certain licensing rights under these arrangements. These collaborations often require upfront payments and may include additional milestone, research and development cost sharing, royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development and commercialization. Upfront payments associated with collaborative arrangements during the development stage are expensed to acquired in-process research and development (IPR&D) expenses in the consolidated statements of earnings. Subsequent payments made to the partner for the achievement of milestones during the development stage are expensed to R&D expense in the consolidated statements of earnings when the milestone is achieved. Milestone payments made to the partner subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the estimated useful life of the related asset. Royalties are expensed to cost of products sold in the consolidated statements of earnings when incurred. Advertising Costs associated with advertising are expensed as incurred and are included in selling, general and administrative (SG&A) expense in the consolidated statements of earnings. Advertising expenses were $1.1 billion in 2019 , $1.1 billion in 2018 and $846 million in 2017 . Pension and Other Post-Employment Benefits AbbVie records annual expenses relating to its defined benefit pension and other post-employment benefit plans based on calculations which utilize various actuarial assumptions, including discount rates, rates of return on assets, compensation increases, turnover rates and health care cost trend rates. AbbVie reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive income (AOCI), net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are amortized to net periodic benefit cost over a five -year period. Income Taxes Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pretax earnings based on current tax laws. Deferred taxes are provided using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. Cash and Equivalents Cash and equivalents include money market funds and time deposits with original maturities of three months or less. Investments Investments consist primarily of time deposits, marketable debt securities, held-to-maturity debt securities and equity securities. Investments in marketable debt securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in AOCI on the consolidated balance sheets until realized, at which time the gains or losses are recognized in earnings. Investments in equity securities that have readily determinable fair values are recorded at fair value. Investments in equity securities that do not have readily determinable fair values are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. Held-to-maturity debt securities are recorded at cost. Gains or losses on investments are included in other expense, net in the consolidated statements of earnings. AbbVie periodically assesses its marketable debt securities for other-than-temporary impairment losses. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below the cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security, intent to sell, or whether AbbVie will more likely than not be required to sell the security before recovery of its amortized cost basis. AbbVie also considers industry factors and general market trends. When AbbVie determines that an other-than-temporary decline has occurred, the cost basis of the investment is written down with a charge to other expense, net in the consolidated statements of earnings and an available-for-sale investment's unrealized loss is reclassified from AOCI to other expense, net in the consolidated statements of earnings. Realized gains and losses on sales of investments are computed using the first-in, first-out method adjusted for any other-than-temporary declines in fair value that were recorded in net earnings. Accounts Receivable Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. Accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted. The allowance for doubtful accounts was $46 million at December 31, 2019 and $51 million at December 31, 2018 . Inventories Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs. Inventories consisted of the following: as of December 31 (in millions) 2019 2018 Finished goods $ 485 $ 473 Work-in-process 942 862 Raw materials 386 270 Inventories $ 1,813 $ 1,605 Property and Equipment as of December 31 (in millions) 2019 2018 Land $ 72 $ 73 Buildings 1,613 1,603 Equipment 6,012 6,362 Construction in progress 491 358 Property and equipment, gross 8,188 8,396 Less accumulated depreciation (5,226 ) (5,513 ) Property and equipment, net $ 2,962 $ 2,883 Depreciation for property and equipment is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life for buildings ranges from 10 to 50 years. Buildings include leasehold improvements which are amortized over the life of the related facility lease (including any renewal periods, if appropriate) or the asset, whichever is shorter. The estimated useful life for equipment ranges from 2 to 25 years. Equipment includes certain computer software and software development costs incurred in connection with developing or obtaining software for internal use and is amortized over 3 to 10 years. Depreciation expense was $464 million in 2019 , $471 million in 2018 and $425 million in 2017 . 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. Litigation and Contingencies Loss contingency provisions are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. When a best estimate cannot be made, the minimum loss contingency amount in a probable range is recorded. Legal fees are expensed as incurred. AbbVie accrues for product liability claims on an undiscounted basis. The liabilities are evaluated quarterly and adjusted if necessary as additional information becomes available. Receivables for insurance recoveries for product liability claims, if any, are recorded as assets on an undiscounted basis when it is probable that a recovery will be realized. Business Combinations AbbVie utilizes the acquisition method of accounting for business combinations. This method requires, among other things, that results of operations of acquired companies are included in AbbVie's results of operations beginning on the respective acquisition dates and that assets acquired and liabilities assumed are recognized at fair value as of the acquisition date. Any excess of the fair value of consideration transferred over the fair values of the net assets acquired is recognized as goodwill. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liabilities are recognized in other expense, net in the consolidated statements of earnings. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred. Goodwill and Intangible Assets Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow model. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital and terminal values of market participants. Definite-lived intangibles are amortized over their estimated useful lives using the estimated pattern of economic benefit. AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. AbbVie first compares the projected undiscounted cash flows to be generated by the asset to its carrying value. If the undiscounted cash flows of an intangible asset are less than the carrying value, the intangible asset is written down to its fair value. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest level for which cash flows are largely independent of the cash flows of other assets and liabilities. Goodwill and indefinite-lived assets are not amortized, but are subject to an impairment review annually and more frequently when indicators of impairment exist. An impairment of goodwill could occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. An impairment of indefinite-lived intangible assets would occur if the fair value of the intangible asset is less than the carrying value. The company tests its goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed. AbbVie tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value is less than its carrying amount, a quantitative impairment test is performed. For its quantitative impairment tests, the company uses an estimated future cash flow approach that requires significant judgment with respect to future volume, revenue and expense growth rates, changes in working capital use, the selection of an appropriate discount rate, asset groupings and other assumptions and estimates. The estimates and assumptions used are consistent with the company's business plans and a market participant's views. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of the assets and potentially result in different impacts to the company's results of operations. Actual results may differ from the company's estimates. Acquired In-Process Research and Development In an asset acquisition, the initial costs of rights to IPR&D projects acquired are expensed as IPR&D in the consolidated statements of earnings unless the project has an alternative future use. These costs include initial payments incurred prior to regulatory approval in connection with research and development collaboration agreements that provide rights to develop, manufacture, market and/or sell pharmaceutical products. In a business combination, the fair value of IPR&D projects acquired are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. R&D costs incurred after the acquisition are expensed as incurred. Foreign Currency Translation Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in other comprehensive income (loss) (OCI) in the consolidated statements of comprehensive income. The net assets of subsidiaries in highly inflationary economies are remeasured as if the functional currency were the reporting currency. The remeasurement is recognized in net foreign exchange loss in the consolidated statements of earnings. Derivatives All derivative instruments are recognized as either assets or liabilities at fair value on the consolidated balance sheets and are classified as current or long-term based on the scheduled maturity of the instrument. For derivatives formally designated as hedges, the company assesses at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in the fair value or cash flows of the hedged item. The changes in fair value of a derivative designated as a fair value hedge and of the hedged item attributable to the hedged risk are recognized in earnings immediately. The effective portions of changes in the fair value of a derivative designated as a cash flow hedge are reported in AOCI and are subsequently recognized in earnings consistent with the underlying hedged item. If it is determined that a derivative is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If a hedged forecasted transaction becomes probable of not occurring, any gains or losses are reclassified from AOCI to earnings. Derivatives that are not designated as hedges are adjusted to fair value through current earnings. The company also uses derivative instruments or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. Realized and unrealized gains and losses from these hedges are included in AOCI. Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing section of the consolidated statements of cash flows. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU No. 2016-02 In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842) . The standard outlined a comprehensive lease accounting model that superseded the previous lease guidance and required lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. The guidance also changed the definition of a lease and expanded 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 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 consolidated balance sheet primarily related to the recognition of liabilities and corresponding right-of-use assets for operating leases. The adjustment to the 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 consolidated balance sheet were insignificant. Adoption of the standard did not have a significant impact on AbbVie's consolidated statement of earnings in 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 allowed a reclassification from 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 has completed its assessment of the new standard as of December 31, 2019 and concluded that the adoption will not have a material impact on its consolidated financial statements based on the company's current portfolio of financial assets. ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) . The standard includes simplifications related to accounting for income taxes including removing certain exceptions related to the approach for intraperiod tax allocation and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for AbbVie starting with the first quarter of 2021, with early adoption permitted. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Financial Information | |
Supplemental Financial Information | Supplemental Financial Information Interest Expense, Net years ended December 31 (in millions) 2019 2018 2017 Interest expense $ 1,784 $ 1,348 $ 1,150 Interest income (275 ) (204 ) (146 ) Interest expense, net $ 1,509 $ 1,144 $ 1,004 Accounts Payable and Accrued Liabilities as of December 31 (in millions) 2019 2018 Sales rebates $ 4,484 $ 3,939 Dividends payable 1,771 1,607 Accounts payable 1,452 1,546 Salaries, wages and commissions 830 787 Royalty and license arrangements 324 304 Other 2,971 3,748 Accounts payable and accrued liabilities $ 11,832 $ 11,931 Other Long-Term Liabilities as of December 31 (in millions) 2019 2018 Contingent consideration liabilities $ 7,201 $ 4,306 Income taxes payable 3,453 4,311 Pension and other post-employment benefits 2,949 1,840 Liabilities for unrecognized tax benefits 2,772 2,726 Other 1,222 1,307 Other long-term liabilities $ 17,597 $ 14,490 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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: Years ended December 31, (in millions, except per share data) 2019 2018 2017 Basic EPS Net earnings $ 7,882 $ 5,687 $ 5,309 Earnings allocated to participating securities 40 30 26 Earnings available to common shareholders $ 7,842 $ 5,657 $ 5,283 Weighted-average basic shares outstanding 1,481 1,541 1,596 Basic earnings per share $ 5.30 $ 3.67 $ 3.31 Diluted EPS Net earnings $ 7,882 $ 5,687 $ 5,309 Earnings allocated to participating securities 40 30 26 Earnings available to common shareholders $ 7,842 $ 5,657 $ 5,283 Weighted-average shares of common stock outstanding 1,481 1,541 1,596 Effect of dilutive securities 3 5 7 Weighted-average diluted shares outstanding 1,484 1,546 1,603 Diluted earnings per share $ 5.28 $ 3.66 $ 3.30 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 | 12 Months Ended |
Dec. 31, 2019 | |
Licensing, Acquisitions, and Other Arrangements | |
Licensing, Acquisitions, and Other Arrangements | Licensing, Acquisitions and Other Arrangements Proposed Acquisition of Allergan plc On June 25, 2019, AbbVie announced that it entered into a definitive transaction agreement under which AbbVie will acquire Allergan plc (Allergan) in a cash and stock transaction for a transaction equity value of approximately $63 billion , based on the closing price of AbbVie’s common stock of $78.45 on June 24, 2019. Under the terms of the transaction agreement, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share. On October 14, 2019, Allergan shareholders approved the proposed transaction. Allergan is a global pharmaceutical leader focused on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients around the world. Allergan markets a portfolio of brands and products primarily focused on key therapeutic areas including aesthetics, eye care, neuroscience, gastroenterology and women's health. The transaction is subject to customary closing conditions and regulatory approvals. In September 2019, AbbVie and Allergan each received a Request for Additional Information (Second Request) from the Federal Trade Commission (FTC) in connection with the transaction. AbbVie and Allergan are cooperating fully with the FTC. In January 2020, the European Commission approved the proposed acquisition of Allergan by AbbVie conditional upon the divestiture of brazikumab, Allergan's IL-23 inhibitor pipeline product. In January 2020, Allergan entered into a definitive agreement to divest brazikumab contingent upon regulatory approvals and closing of AbbVie's acquisition of Allergan. In anticipation of the proposed acquisition, AbbVie entered into several debt and financing arrangements in 2019. See Note 10 for additional information. Other Licensing & Acquisitions Activity Cash outflows related to other acquisitions and investments totaled $1.1 billion in 2019 , $736 million in 2018 and $308 million in 2017 . AbbVie recorded acquired IPR&D charges of $385 million in 2019 , $424 million in 2018 and $327 million in 2017 . Significant arrangements impacting 2019 , 2018 and 2017 , some of which require contingent milestone payments, are summarized below. Reata Pharmaceuticals, Inc. In October 2019, AbbVie and Reata Pharmaceuticals, Inc. (Reata) entered into an amended and restated license agreement. Under the terms of the agreement, Reata reacquired exclusive development, manufacturing and commercialization rights concerning its proprietary Nrf2 activator product platform originally licensed to AbbVie for territories outside of the United States with respect to bardoxolone methyl and worldwide with respect to omaveloxolone and other next-generation Nrf2 activators . As consideration for the rights reacquired by Reata, AbbVie will receive a total of $330 million in cash payable in three installments through 2021, which was recognized in other operating expense (income) in the fourth quarter of 2019. In addition, AbbVie will receive low single-digit, tiered royalties from worldwide sales of omaveloxolone and certain next-generation Nrf2 activators. Calico Life Sciences LLC In June 2018, AbbVie and Calico Life Sciences LLC (Calico) entered into an extension of a collaboration to discover, develop and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. Under the terms of the agreement, AbbVie and Calico will each contribute an additional $500 million to the collaboration and the term is extended for an additional three years . Calico will be responsible for research and early development until 2022 and will advance collaboration projects through Phase 2a through 2027. Following completion of Phase 2a, AbbVie will have the option to exclusively license collaboration compounds. AbbVie will support Calico in its early research and development efforts and, upon exercise, would be responsible for late-stage development and commercial activities. Collaboration costs and profits will be shared equally by both parties post option exercise. During 2018, AbbVie recorded $500 million in other operating expense (income) in the consolidated statement of earnings related to its commitments under the agreement. Alector, Inc. In October 2017, AbbVie entered into a global strategic collaboration with Alector, Inc. (Alector) to develop and commercialize medicines to treat Alzheimer’s disease and other neurodegenerative disorders. AbbVie and Alector have agreed to research a portfolio of antibody targets, and AbbVie has an option to global development and commercial rights to two targets. The terms of the arrangement included an initial upfront payment of $205 million , which was expensed to IPR&D in the fourth quarter of 2017. Alector will conduct exploratory research, drug discovery and development for lead programs up to the conclusion of the proof of concept studies. If the option is exercised, AbbVie will lead development and commercialization activities and could make additional payments to Alector of up to $986 million upon achievement of certain development and regulatory milestones. Alector and AbbVie will co-fund development and commercialization and will share global profits equally. Other Arrangements In addition to the significant arrangements described above, AbbVie entered into several other arrangements resulting in charges to IPR&D of $385 million in 2019 , $424 million in 2018 and $122 million in 2017 . In connection with the other individually insignificant early-stage arrangements entered into in 2019 , AbbVie could make additional payments of up to $5.8 billion upon the achievement of certain development, regulatory and commercial milestones. |
Collaboration with Janssen Biot
Collaboration with Janssen Biotech, Inc. | 12 Months Ended |
Dec. 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: years ended December 31 (in millions) 2019 2018 2017 United States - Janssen's share of profits (included in cost of products sold) $ 1,803 $ 1,372 $ 1,001 International - AbbVie's share of profits (included in net revenues) 844 622 429 Global - AbbVie's share of other costs (included in respective line items) 321 326 288 AbbVie’s receivable from Janssen, included in accounts receivable, net, was $235 million at December 31, 2019 and $177 million at December 31, 2018 . AbbVie’s payable to Janssen, included in accounts payable and accrued liabilities, was $455 million at December 31, 2019 and $376 million at December 31, 2018 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 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, 2017 $ 15,785 Foreign currency translation (122 ) Balance as of December 31, 2018 15,663 Foreign currency translation (59 ) Balance as of December 31, 2019 $ 15,604 The company performs its annual goodwill impairment assessment in the third quarter, or earlier if impairment indicators exist. As of December 31, 2019 , there were no accumulated goodwill impairment losses. Intangible Assets, Net The following table summarizes intangible assets: 2019 2018 as of December 31 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Developed product rights $ 19,547 $ (6,405 ) $ 13,142 $ 15,872 $ (5,614 ) $ 10,258 License agreements 7,798 (2,291 ) 5,507 7,865 (1,810 ) 6,055 Total definite-lived intangible assets 27,345 (8,696 ) 18,649 23,737 (7,424 ) 16,313 Indefinite-lived research and development — — — 4,920 — 4,920 Total intangible assets, net $ 27,345 $ (8,696 ) $ 18,649 $ 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. The company performs its annual impairment assessment of indefinite-lived intangible assets in the third quarter, or earlier if impairment indicators exist. In April 2019, the U.S. Food and Drug Administration (FDA) and the European Commission approved SKYRIZI (risankizumab) for the treatment of moderate to severe plaque psoriasis. As a result, AbbVie reclassified $3.9 billion of indefinite-lived intangible assets related to SKYRIZI to developed product rights definite-lived intangible assets. This amount will be amortized over its estimated useful life using the estimated pattern of economic benefit. During the fourth quarter of 2018, the company made a decision to stop enrollment for the TAHOE trial, a Phase 3 study evaluating rovalpituzumab tesirine (Rova-T) as a second-line therapy for advanced small-cell lung cancer following a recommendation from an Independent Data Monitoring Committee. This decision lowered the probabilities of success of achieving regulatory approval across Rova-T and other early-stage assets and represented a triggering event which required the company to evaluate for impairment the IPR&D assets associated with the Stemcentrx acquisition. The company utilized multi-period excess earnings models of the “income approach” and determined that the fair value was $1.0 billion as of December 31, 2018, which was lower than the carrying value of $6.1 billion and resulted in an impairment charge of $5.1 billion . This impairment charge was recorded to R&D expense in the consolidated statement of earnings for the year ended December 31, 2018. In the third quarter of 2019, following the announcement of the decision to terminate the Rova-T research and development program, the company recorded an impairment charge of $1.0 billion which represented the remaining value of the IPR&D acquired as part of the 2016 Stemcentrx acquisition. This impairment charge was recorded to R&D expense in the consolidated statement of earnings for the year ended December 31, 2019. No indefinite-lived intangible asset impairment charges were recorded in 2017 . Definite-Lived Intangible Assets Definite-lived intangible assets are amortized over their estimated useful lives, which range between 2 to 16 years with an average of 11 years for both developed product rights and license agreements. Amortization expense was $1.6 billion in 2019 , $1.3 billion in 2018 and $1.1 billion in 2017 and was included in cost of products sold in the consolidated statements of earnings. The anticipated annual amortization expense for definite-lived intangible assets recorded as of December 31, 2019 is as follows: (in billions) 2020 2021 2022 2023 2024 Anticipated annual amortization expense $ 1.8 $ 2.0 $ 2.3 $ 2.4 $ 2.5 No definite-lived intangible asset impairment charges were recorded in 2019 or 2018 . In 2017, an impairment charge of $354 million was recorded related to ZINBRYTA that reduced both the gross carrying amount and net carrying amount of the underlying intangible assets due to lower expected future cash flows for the product. The impairment charge was based on discounted cash flow analyses and was included in cost of products sold in the consolidated statements of earnings. |
Restructuring Plans
Restructuring Plans | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plans | Restructuring Plans AbbVie continuously evaluates its operations to identify opportunities to optimize its manufacturing and R&D operations, commercial infrastructure and administrative costs and to respond to changes in its business environment. As a result, AbbVie management periodically approves individual restructuring plans to achieve these objectives. In 2019 , 2018 and 2017 , no such plans were individually significant. Restructuring charges recorded were $234 million in 2019 , $70 million in 2018 and $86 million in 2017 and were primarily related to employee severance and contractual obligations. These charges were recorded in cost of products sold, R&D expense and SG&A expenses in the consolidated statements of earnings based on the classification of the affected employees or operations. The following table summarizes the cash activity in the restructuring reserve for 2019 , 2018 and 2017 : (in millions) Accrued balance as of December 31, 2016 $ 87 2017 restructuring charges 86 Payments and other adjustments (87 ) Accrued balance as of December 31, 2017 86 2018 restructuring charges 59 Payments and other adjustments (46 ) Accrued balance as of December 31, 2018 99 2019 restructuring charges 219 Payments and other adjustments (178 ) Accrued balance as of December 31, 2019 $ 140 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheet: (in millions) Balance sheet caption December 31, Assets Operating Other assets $ 344 Finance Property and equipment, net 23 Total lease assets $ 367 Liabilities Operating Current Accounts payable and accrued liabilities $ 109 Noncurrent Other long-term liabilities 251 Finance Current Current portion of long-term debt and finance lease obligations 7 Noncurrent Long-term debt and finance lease obligations 20 Total lease liabilities $ 387 The following table summarizes the lease costs recognized in the consolidated statement of earnings: year ended December 31 (in millions) 2019 Operating lease cost $ 124 Short-term lease cost 34 Variable lease cost 62 Total lease cost $ 220 Sublease income and finance lease costs were insignificant in 2019 . Lease expense prior to the adoption of ASU No. 2016-02 was $161 million in 2018 and $169 million in 2017 . The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: December 31, Weighted-average remaining lease term (years) Operating 5 Finance 3 Weighted-average discount rate Operating 3.9 % Finance 3.9 % The following table presents supplementary cash flow information regarding the company's leases: year ended December 31 (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 125 Right-of-use assets obtained in exchange for new operating lease liabilities 26 Finance lease cash flows were insignificant in 2019 . The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2019 : (in millions) Operating leases Finance leases Total (a)(b) 2020 $ 119 $ 10 $ 129 2021 104 9 113 2022 59 8 67 2023 38 1 39 2024 22 — 22 Thereafter 58 — 58 Total lease payments 400 28 428 Less: Interest 40 1 41 Present value of lease liabilities $ 360 $ 27 $ 387 (a) Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence in 2020 with lease terms of approximately 11 years . (b) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. Future minimum lease payments for non-cancelable operating leases and capital leases as of December 31, 2018 prior to the adoption of ASU No. 2016-02 did not differ materially from future lease payments, inclusive of payments for leases executed but not yet commenced, under the new standard. |
Debt, Credit Facilities, and Co
Debt, Credit Facilities, and Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Debt, Credit Facilities, and Commitments and Contingencies | |
Debt, Credit Facilities, and Commitments and Contingencies | Debt, Credit Facilities and Commitments and Contingencies The following table summarizes long-term debt: as of December 31 (dollars in millions) Effective interest rate in 2019 (a) 2019 Effective interest rate in 2018 (a) 2018 Senior notes issued in 2012 2.90% notes due 2022 2.97 % $ 3,100 2.97 % $ 3,100 4.40% notes due 2042 4.46 % 2,600 4.46 % 2,600 Senior notes issued in 2015 2.50% notes due 2020 2.65 % 3,750 2.65 % 3,750 3.20% notes due 2022 3.28 % 1,000 3.28 % 1,000 3.60% notes due 2025 3.66 % 3,750 3.66 % 3,750 4.50% notes due 2035 4.58 % 2,500 4.58 % 2,500 4.70% notes due 2045 4.73 % 2,700 4.73 % 2,700 Senior notes issued in 2016 2.30% notes due 2021 2.40 % 1,800 2.40 % 1,800 2.85% notes due 2023 2.91 % 1,000 2.91 % 1,000 3.20% notes due 2026 3.28 % 2,000 3.28 % 2,000 4.30% notes due 2036 4.37 % 1,000 4.37 % 1,000 4.45% notes due 2046 4.50 % 2,000 4.50 % 2,000 Senior Euro notes issued in 2016 0.375% notes due 2019 (€1,400 principal) 0.55 % — 0.55 % 1,604 1.375% notes due 2024 (€1,450 principal) 1.46 % 1,625 1.46 % 1,661 2.125% notes due 2028 (€750 principal) 2.18 % 840 2.18 % 859 Senior notes issued in 2018 3.375% notes due 2021 3.51 % 1,250 3.51 % 1,250 3.75% notes due 2023 3.84 % 1,250 3.84 % 1,250 4.25% notes due 2028 4.38 % 1,750 4.38 % 1,750 4.875% notes due 2048 4.94 % 1,750 4.94 % 1,750 Senior Euro notes issued in 2019 0.75% notes due 2027 (€750 principal) 0.86 % 840 — — 1.25% notes due 2031 (€650 principal) 1.30 % 728 — — Senior notes issued in 2019 Floating rate notes due May 2021 2.08 % 750 — — Floating rate notes due November 2021 2.12 % 750 — — Floating rate notes due 2022 2.29 % 750 — — 2.15% notes due 2021 2.23 % 1,750 — — 2.30% notes due 2022 2.42 % 3,000 — — 2.60% notes due 2024 2.69 % 3,750 — — 2.95% notes due 2026 3.02 % 4,000 — — 3.20% notes due 2029 3.25 % 5,500 — — 4.05% notes due 2039 4.11 % 4,000 — — 4.25% notes due 2049 4.29 % 5,750 — — Other 27 36 Fair value hedges (48 ) (466 ) Unamortized bond discounts (161 ) (120 ) Unamortized deferred financing costs (323 ) (163 ) Total long-term debt and finance lease obligations 66,728 36,611 Current portion 3,753 1,609 Noncurrent portion $ 62,975 $ 35,002 (a) Excludes the effect of any related interest rate swaps. Allergan-Related Financing In connection with the proposed acquisition of Allergan, in November 2019, the company issued $30.0 billion aggregate principal amount of unsecured senior notes, consisting of $750 million aggregate principal amount of floating rate senior notes due May 2021, $750 million aggregate principal amount of floating rate senior notes due November 2021, $750 million aggregate principal amount of floating rate senior notes due 2022, $1.75 billion aggregate principal amount of 2.15% senior notes due 2021, $3.0 billion aggregate principal amount of 2.30% senior notes due 2022, $3.75 billion aggregate principal amount of 2.60% senior notes due 2024, $4.0 billion aggregate principal amount of 2.95% senior notes due 2026, $5.5 billion aggregate principal amount of 3.20% senior notes due 2029, $4.0 billion aggregate principal amount of 4.05% senior notes due 2039 and $5.75 billion aggregate principal amount of 4.25% senior notes due 2049. These senior notes rank equally with all other unsecured and unsubordinated indebtedness of the company. AbbVie may redeem the fixed-rate senior notes prior to maturity at a redemption price equal to the greater of the principal amount or the sum of present values of the remaining scheduled payments of principal and interest on the fixed-rate senior notes to be redeemed plus a make-whole premium. With exception of the fixed-rate notes due 2021 and 2022, AbbVie may also redeem the fixed-rate senior notes at par between one and six months prior to maturity. In connection with the offering, debt issuance costs incurred totaled $173 million and debt discounts totaled $52 million , which are being amortized over the respective terms of the notes to interest expense, net in the consolidated statements of earnings. AbbVie expects to use the net proceeds to fund a portion of the aggregate cash consideration due to Allergan shareholders in connection with the proposed acquisition described in Note 5 and to pay related fees and expenses. Pending the consummation of the proposed Allergan acquisition, the net proceeds from the offering are permitted to be invested temporarily in short-term investments. All of the notes are subject to special mandatory redemption at a redemption price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest if the proposed acquisition of Allergan is not completed by January 30, 2021 or the company notifies the trustee in respect of the notes that it will not pursue the consummation of the proposed Allergan acquisition. On June 25, 2019, AbbVie entered into a $38.0 billion 364 -day bridge credit agreement. On July 12, 2019, AbbVie entered into a term loan credit agreement with an aggregate principal amount of $6.0 billion consisting of a $1.5 billion 364 -day term loan tranche, a $2.5 billion three-year term loan tranche and a $2.0 billion five-year term loan tranche. In connection with the agreements, debt issuance costs incurred totaled $242 million and were recorded to interest expense, net in the consolidated statements of earnings. Upon commencement of the $6.0 billion term loan credit agreement and upon issuance of the $30.0 billion aggregate principal amount of senior notes, commitments under the bridge credit agreement were reduced to $2.0 billion . No amounts were drawn under the bridge credit agreement or term loan credit agreement at December 31, 2019 . In February 2020, the remaining commitments under the bridge credit agreement were reduced to $0 as a result of cash on hand at AbbVie. AbbVie subsequently terminated the bridge credit agreement in its entirety as permitted under its terms. On October 25, 2019, AbbVie commenced offers to exchange any and all outstanding notes of certain series issued by Allergan for up to $15.5 billion aggregate principal amount and €3.7 billion aggregate principal amount of new notes to be issued by AbbVie and cash, subject to conditions including the closing of the pending acquisition of Allergan. Concurrently with the offers to exchange the Allergan notes for AbbVie notes, the company solicited consents to adopt certain proposed amendments to each of the indentures governing the Allergan notes to, among other things, eliminate substantially all of the restrictive covenants in such indentures. In November 2019, the company announced that the requisite number of consents had been received to adopt the proposed amendments with respect to all Allergan notes and that Allergan executed a supplemental indenture with respect to each Allergan indenture implementing the amendments, which will become operative only upon settlement of the exchange offers. The expiration of the exchange offers is expected to occur on or about the closing date of AbbVie’s acquisition of Allergan. Other Long-Term Debt In September 2019, the company issued €1.4 billion aggregate principal amount of unsecured senior Euro notes, consisting of €750 million aggregate principal amount of 0.75% senior notes due 2027 and €650 million aggregate principal amount of 1.25% senior notes due 2031. These senior notes rank equally with all other unsecured and unsubordinated indebtedness of the company. AbbVie may redeem the senior notes prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium and may redeem the senior notes at par between one and three months prior to maturity. In connection with the offering, debt issuance costs incurred totaled $9 million and debt discounts totaled $5 million and are being amortized over the respective terms of the notes to interest expense, net in the consolidated statements of earnings. In October 2019, the company used the proceeds to redeem €1.4 billion aggregate principal amount of 0.375% senior Euro notes that were due to mature in November 2019. In September 2018, the company issued $6.0 billion aggregate principal amount of unsecured senior notes, consisting of $1.25 billion aggregate principal amount of 3.375% senior notes due 2021, $1.25 billion aggregate principal amount of 3.75% senior notes due 2023, $1.75 billion aggregate principal amount of 4.25% senior notes due 2028 and $1.75 billion aggregate principal amount of 4.875% senior notes due 2048. These senior notes rank equally with all other unsecured and unsubordinated indebtedness of the company. AbbVie may redeem the senior notes prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium, and except for the 3.375% notes due 2021, AbbVie may redeem the senior notes at par between one and six months prior to maturity. In connection with the offering, debt issuance costs incurred totaled $37 million and debt discounts totaled $37 million and are being amortized over the respective terms of the senior notes to interest expense, net in the consolidated statements of earnings. Of the $5.9 billion net proceeds, $2.0 billion was used to repay the company's outstanding three -year term loan credit agreement in September 2018 and $1.0 billion was used to repay the aggregate principal amount of 2.00% senior notes at maturity in November 2018. The company used the remaining proceeds to repay term loan obligations in 2019 as they became due. In May 2018, the company also repaid $3.0 billion aggregate principal amount of 1.80% senior notes at maturity. AbbVie has outstanding €2.2 billion aggregate principal amount of unsecured senior Euro notes which were issued in 2016. AbbVie may redeem the senior notes prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium and AbbVie may redeem the senior notes at par between one and three months prior to maturity. AbbVie has outstanding $7.8 billion aggregate principal amount of unsecured senior notes which were issued in 2016 and $13.7 billion aggregate principal amount of unsecured senior notes which were issued in 2015. AbbVie may redeem the senior notes, at any time, prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium and AbbVie may redeem the senior notes at par between one and six months prior to maturity. AbbVie has outstanding $5.7 billion aggregate principal amount of unsecured senior notes which were issued in 2012. AbbVie may redeem all of the senior notes of each series, at any time, or some of the senior notes of each series, from time to time, at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium. At December 31, 2019 , the company was in compliance with its senior note covenants and term loan covenants. Short-Term Borrowings Short-term borrowings included commercial paper borrowings of $699 million as of December 31, 2018 . There were no commercial paper borrowings as of December 31, 2019 . The weighted-average interest rate on commercial paper borrowings was 2.5% in 2019 , 2.0% in 2018 and 1.3% in 2017 . In August 2019, AbbVie entered into an amended and restated $4.0 billion five-year revolving credit facility that matures in August 2024. This amended facility enables the company to borrow funds on an unsecured basis at variable interest rates and contains various covenants, all of which the company was in compliance with as of December 31, 2019 . Commitment fees under AbbVie's revolving credit facilities were insignificant in 2019 , 2018 and 2017 . No amounts were outstanding under the company's credit facilities as of December 31, 2019 and December 31, 2018 . In March 2019, AbbVie repaid a $3.0 billion 364 -day term loan credit agreement that was drawn on in June 2018 and was scheduled to mature in June 2019. Maturities of Long-Term Debt The following table summarizes AbbVie's debt maturities as of December 31, 2019 : as of and for the years ending December 31 (in millions) 2020 $ 3,750 2021 6,300 2022 7,850 2023 2,250 2024 5,375 Thereafter 41,708 Total obligations and commitments 67,233 Fair value hedges, unamortized bond discounts, deferred financing costs and finance lease obligations (505 ) Total long-term debt and finance lease obligations $ 66,728 Contingencies and Guarantees In connection with the separation, AbbVie has indemnified Abbott for all liabilities resulting from the operation of AbbVie's business other than income tax liabilities with respect to periods prior to the distribution date and other liabilities as agreed to by AbbVie and Abbott. AbbVie has no material exposures to off-balance sheet arrangements and no special-purpose entities. In the ordinary course of business, AbbVie has periodically entered into third-party agreements, such as the assignment of product rights, which have resulted in AbbVie becoming secondarily liable for obligations for which AbbVie had previously been primarily liable. Based upon past experience, the likelihood of payments under these agreements is remote. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measures | Financial Instruments and Fair Value Measures Risk Management Policy The company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. AbbVie's hedging policy attempts to manage these risks to an acceptable level based on the company's judgment of the appropriate trade-off between risk, opportunity and costs. The company uses derivative and nonderivative instruments to reduce its exposure to foreign currency exchange rates. AbbVie also periodically enters into interest rate swaps in which the company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. Derivative instruments are not used for trading purposes or to manage exposure to changes in interest rates for investment securities, and none of the company's outstanding derivative instruments contain credit risk related contingent features; collateral is generally not required. 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 $957 million at December 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 eighteen months . Accumulated gains and losses as of December 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. In the third quarter of 2019, the company entered into treasury rate lock agreements with notional amounts totaling $10.0 billion to hedge exposure to variability in future cash flows resulting from changes in interest rates related to the issuance of long-term debt in connection with the proposed acquisition of Allergan. The treasury rate lock agreements were designated as cash flow hedges and recorded at fair value. The agreements were net settled upon issuance of the senior notes in November 2019 resulting in a gain of $383 million recognized in other comprehensive income (loss). This gain will be reclassified to interest expense, net over the lives of the related debt. In the fourth quarter of 2019, the company entered into interest rate swap contracts with notional amounts totaling $2.3 billion at December 31, 2019 . The effect of the hedge contracts is to change a floating-rate interest obligation to a fixed rate for that portion of the floating-rate debt. The contracts were designated as cash flow hedges and are recorded at fair value. Realized and unrealized gains or losses are included in AOCI and will be reclassified to interest expense, net over the lives of the floating-rate debt. 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 $7.1 billion at December 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 had €3.6 billion aggregate principal amount of senior Euro notes designated as net investment hedges at December 31, 2019 and December 31, 2018 . In the third quarter of 2019, the company issued €1.4 billion aggregate principal amount of senior Euro notes and designated the principal amounts of this foreign denominated debt as net investment hedges. Concurrently, the company elected to de-designate hedge accounting for €1.4 billion aggregate principal amount of existing senior Euro notes which were subsequently repaid in October 2019. In addition, in 2019, the company entered into foreign currency forward exchange contracts and designated the instruments as net investment hedges. These contracts had notional amounts totaling €971 million , £204 million and CHF62 million at December 31, 2019 . The company uses the spot method of assessing hedge effectiveness for derivative instruments designated as net investment hedges. Realized and unrealized gains and losses from these hedges are included in AOCI and the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in interest expense, net over the life of the hedging instrument. AbbVie is a party to interest rate swap contracts designated as fair value hedges with notional amounts totaling $10.8 billion at December 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 or fair value hedges. The following table summarizes the amounts and location of AbbVie's derivative instruments on the consolidated balance sheets: Fair value - Derivatives in asset position Fair value - Derivatives in liability position as of December 31 (in millions) Balance sheet caption 2019 2018 Balance sheet caption 2019 2018 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 3 $ 113 Accounts payable and accrued liabilities $ 14 $ — Designated as net investment hedges Prepaid expenses and other — — Accounts payable and accrued liabilities 24 — Not designated as hedges Prepaid expenses and other 19 19 Accounts payable and accrued liabilities 18 26 Interest rate swap contracts Designated as cash flow hedges Other assets 3 — Other long-term liabilities — — Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities 2 — Designated as fair value hedges Other assets 28 — Other long-term liabilities 74 466 Total derivatives $ 53 $ 132 $ 132 $ 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 consolidated balance sheets. The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): years ended in December 31 (in millions) 2019 2018 2017 Foreign currency forward exchange contracts Designated as cash flow hedges $ (5 ) $ 175 $ (250 ) Designated as net investment hedges 33 — — Interest rate swap contracts designated as cash flow hedges 4 — — Treasury rate lock agreements designated as cash flow hedges 383 — — Assuming market rates remain constant through contract maturities, the company expects to transfer pre-tax losses of $10 million into cost of products sold for foreign currency cash flow hedges, pre-tax gains of $7 million into interest expense, net for interest rate swap cash flow hedges and pre-tax gains of $24 million into interest expense, net for treasury rate lock agreement 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 in other comprehensive income (loss) pre-tax gains of $90 million in 2019 , pre-tax gains of $178 million in 2018 and pre-tax losses of $537 million in 2017 . The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI. years ended December 31 (in millions) Statement of earnings caption 2019 2018 2017 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 167 $ (161 ) $ 118 Designated as net investment hedges Interest expense, net 27 — — Not designated as hedges Net foreign exchange loss (70 ) 83 (96 ) Treasury rate lock agreements designated as cash flow hedges Interest expense, net 3 — — Interest rate swap contracts Designated as cash flow hedges Interest expense, net 1 — — Designated as fair value hedges Interest expense, net 418 (71 ) (63 ) Debt designated as hedged item in fair value hedges Interest expense, net (418 ) 71 63 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 consolidated balance sheet as of December 31, 2019 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) Assets Cash and equivalents $ 39,924 $ 1,542 $ 38,382 $ — Debt securities 3 — 3 — Equity securities 24 24 — — Interest rate swap contracts 31 — 31 — Foreign currency contracts 22 — 22 — Total assets $ 40,004 $ 1,566 $ 38,438 $ — Liabilities Interest rate swap contracts $ 76 $ — $ 76 $ — Foreign currency contracts 56 — 56 — Contingent consideration 7,340 — — 7,340 Total liabilities $ 7,472 $ — $ 132 $ 7,340 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2018 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) 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 swap contracts $ 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. The derivatives entered into by the company were valued using observable market inputs including published interest rate curves and both forward and spot prices for foreign currencies. 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. The potential contingent consideration payments are estimated by applying a probability-weighted expected payment model for contingent milestone payments and a Monte Carlo simulation model for contingent royalty payments, which are then discounted to present value. 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 certain 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 December 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 $280 million . Additionally, at December 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 $150 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: years ended December 31 (in millions) 2019 2018 2017 Beginning balance $ 4,483 $ 4,534 $ 4,213 Change in fair value recognized in net earnings 3,091 49 626 Payments (234 ) (100 ) (305 ) Ending balance $ 7,340 $ 4,483 $ 4,534 The change in fair value recognized in net earnings is recorded in other expense, net in the consolidated statements of earnings. During the second quarter of 2019, the company recorded a $2.3 billion increase in the SKYRIZI contingent consideration liability due to higher probabilities of success, higher estimated future sales and declining interest rates. The higher probabilities of success resulted from the April 2019 regulatory approvals of SKYRIZI for the treatment of moderate to severe plaque psoriasis. During the third quarter of 2019, the company recorded a $91 million decrease in the Stemcentrx contingent consideration liability due to the termination of the Rova-T research and development program. During the fourth quarter of 2018, the company recorded a $428 million decrease in the Stemcentrx contingent consideration liability due to a reduction in probabilities of success of achieving regulatory approval. 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 December 31, 2019 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair values Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 3,755 $ 3,760 $ 3,753 $ 7 $ — Long-term debt and finance lease obligations, excluding fair value hedges 63,021 66,651 66,631 20 — Total liabilities $ 66,776 $ 70,411 $ 70,384 $ 27 $ — 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 values Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) 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 $66 million as of December 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 December 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. In the third quarter of 2019, the company sold substantially all of its investments in debt securities. There were no debt securities classified as short-term as of December 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 based on prices obtained from commercial pricing services. 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 December 31, 2019 . Net realized gains and losses were insignificant in 2019 and 2018 . Net realized gains were $90 million in 2017 . Concentrations of Risk The company invests excess cash in time deposits, money market funds and debt securities to diversify the concentration of cash among different financial institutions. The company has established credit exposure limits and monitors concentrations of credit risk associated with financial institution deposits. Of total net accounts receivable, three U.S. wholesalers accounted for 68% as of December 31, 2019 and 63% as of 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 58% of AbbVie's total net revenues in 2019 , 61% in 2018 and 65% in 2017 . |
Post-Employment Benefits
Post-Employment Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Post-Employment Benefits | Post-Employment Benefits AbbVie sponsors various pension and other post-employment benefit plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. In addition, AbbVie provides medical benefits, primarily to eligible retirees in the United States and Puerto Rico, through other post-retirement benefit plans. Net obligations for these plans have been reflected on the consolidated balance sheets as of December 31, 2019 and 2018 . The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans: Defined benefit plans Other post-employment plans as of and for the years ended December 31 (in millions) 2019 2018 2019 2018 Projected benefit obligations Beginning of period $ 6,618 $ 6,985 $ 561 $ 813 Service cost 269 285 25 26 Interest cost 259 227 29 25 Employee contributions 2 2 — — Actuarial (gain) loss 1,703 (614 ) 451 (287 ) Benefits paid (206 ) (191 ) (17 ) (16 ) Other, primarily foreign currency translation adjustments 1 (76 ) 1 — End of period 8,646 6,618 1,050 561 Fair value of plan assets Beginning of period 5,637 5,399 — — Actual return on plan assets 946 (384 ) — — Company contributions 727 873 17 16 Employee contributions 2 2 — — Benefits paid (206 ) (191 ) (17 ) (16 ) Other, primarily foreign currency translation adjustments 10 (62 ) — — End of period 7,116 5,637 — — Funded status, end of period $ (1,530 ) $ (981 ) $ (1,050 ) $ (561 ) Amounts recognized on the consolidated balance sheets Other assets $ 395 $ 321 $ — $ — Accounts payable and accrued liabilities (8 ) (8 ) (18 ) (15 ) Other long-term liabilities (1,917 ) (1,294 ) (1,032 ) (546 ) Net obligation $ (1,530 ) $ (981 ) $ (1,050 ) $ (561 ) Actuarial loss, net $ 3,633 $ 2,516 $ 469 $ 25 Prior service cost (credit) 10 11 (16 ) (22 ) Accumulated other comprehensive loss $ 3,643 $ 2,527 $ 453 $ 3 Actuarial losses for 2019 in the table above were primarily driven by lower discount rates. The projected benefit obligations (PBO) in the table above included $2.3 billion at December 31, 2019 and $1.9 billion at December 31, 2018 , related to international defined benefit plans. For plans reflected in the table above, the accumulated benefit obligations (ABO) were $7.6 billion at December 31, 2019 and $6.0 billion at December 31, 2018 . For those plans reflected in the table above in which the ABO exceeded plan assets at December 31, 2019 , the ABO was $5.8 billion , the PBO was $6.7 billion and aggregate plan assets were $4.8 billion . Amounts Recognized in Other Comprehensive Income (Loss) The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss): years ended December 31 (in millions) 2019 2018 2017 Defined benefit plans Actuarial loss $ 1,231 $ 209 $ 412 Amortization of actuarial loss and prior service cost (109 ) (140 ) (107 ) Foreign exchange loss (gain) and other (6 ) (13 ) 46 Total loss $ 1,116 $ 56 $ 351 Other post-employment plans Actuarial loss (gain) $ 451 $ (287 ) $ 149 Amortization of actuarial loss and prior service credit (1 ) (1 ) — Total loss (gain) $ 450 $ (288 ) $ 149 The pre-tax amounts included in AOCI at December 31, 2019 expected to be recognized in net periodic benefit cost in 2020 consisted of $219 million of expense related to actuarial losses and prior service costs for defined benefit plans and $25 million of income related to actuarial losses and prior service credits for other post-employment plans. Net Periodic Benefit Cost years ended December 31 (in millions) 2019 2018 2017 Defined benefit plans Service cost $ 269 $ 285 $ 236 Interest cost 259 227 204 Expected return on plan assets (474 ) (439 ) (382 ) Amortization of actuarial loss and prior service cost 109 140 107 Net periodic benefit cost $ 163 $ 213 $ 165 Other post-employment plans Service cost $ 25 $ 26 $ 26 Interest cost 29 25 24 Amortization of actuarial loss and prior service credit 1 1 — Net periodic benefit cost $ 55 $ 52 $ 50 The components of net periodic benefit cost other than service cost are included in other expense, net in the consolidated statements of earnings. Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date as of December 31 2019 2018 Defined benefit plans Discount rate 3.0 % 4.0 % Rate of compensation increases 4.6 % 4.6 % Other post-employment plans Discount rate 3.6 % 4.6 % The assumptions used in calculating the December 31, 2019 measurement date benefit obligations will be used in the calculation of net periodic benefit cost in 2020 . Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost years ended December 31 2019 2018 2017 Defined benefit plans Discount rate for determining service cost 4.0 % 3.4 % 3.9 % Discount rate for determining interest cost 4.0 % 3.1 % 3.7 % Expected long-term rate of return on plan assets 7.6 % 7.7 % 7.8 % Expected rate of change in compensation 4.6 % 4.4 % 4.4 % Other post-employment plans Discount rate for determining service cost 4.7 % 4.0 % 4.9 % Discount rate for determining interest cost 4.3 % 3.7 % 4.1 % For the December 31, 2019 post-retirement health care obligations remeasurement, the company assumed a 6.4% pre-65 ( 7.0% post-65) annual rate of increase in the per capita cost of covered health care benefits. The rate was assumed to decrease gradually to 4.5% in 2050 and remain at that level thereafter. For purposes of measuring the 2019 post-retirement health care costs, the company assumed a 6.6% pre-65 ( 7.3% post-65) annual rate of increase in the per capita cost of covered health care benefits. The rate was assumed to decrease gradually to 4.5% for 2050 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. As of December 31, 2019 , a one percentage point change in assumed health care cost trend rates would have the following effects: One percentage point year ended December 31, 2019 (in millions) (brackets denote a reduction) Increase Decrease Service cost and interest cost $ 13 $ (10 ) Projected benefit obligation 244 (186 ) Defined Benefit Pension Plan Assets Basis of fair value measurement as of December 31 (in millions) 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Equities U.S. large cap (a) $ 884 $ 884 $ — $ — U.S. mid cap (b) 138 138 — — International (c) 349 349 — — Fixed income securities U.S. government securities (d) 149 21 128 — Corporate debt instruments (d) 372 112 260 — Non-U.S. government securities (d) 202 84 118 — Other (d) 320 318 2 — Absolute return funds (e) 296 4 292 — Real assets 9 9 — — Other (f) 132 132 — — Total $ 2,851 $ 2,051 $ 800 $ — Total assets measured at NAV 4,265 Fair value of plan assets $ 7,116 Basis of fair value measurement as of December 31 (in millions) 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Equities U.S. large cap (a) $ 719 $ 719 $ — $ — U.S. mid cap (b) 67 67 — — International (c) 226 226 — — Fixed income securities U.S. government securities (d) 140 21 119 — Corporate debt instruments (d) 385 123 262 — Non-U.S. government securities (d) 175 48 127 — Other (d) 232 225 7 — Absolute return funds (e) 261 3 258 — Real assets 7 7 — — Other (f) 147 147 — — Total $ 2,359 $ 1,586 $ 773 $ — Total assets measured at NAV 3,278 Fair value of plan assets $ 5,637 (a) A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. (b) A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. (c) A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. (d) Securities held by actively managed accounts, index funds and mutual funds. (e) Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. (f) Investments in cash and cash equivalents. Equities and registered investment companies having quoted prices are valued at the published market prices. Fixed income securities that are valued using significant other observable inputs are quoted at prices obtained from independent financial service industry-recognized vendors. Investments held in pooled investment funds, common collective trusts or limited partnerships are valued at the net asset value (NAV) practical expedient to estimate fair value. The NAV is provided by the fund administrator and is based on the value of the underlying assets owned by the fund minus its liabilities. The investment mix of equity securities, fixed income and other asset allocation strategies is based upon achieving a desired return, balancing higher return, more volatile equity securities and lower return, less volatile fixed income securities. Investment allocations are established for each plan and are generally made across a range of markets, industry sectors, capitalization sizes and in the case of fixed income securities, maturities and credit quality. The 2019 target investment allocation for the AbbVie Pension Plan was 35% in equity securities, 20% in fixed income securities and 45% in asset allocation strategies and other holdings. There are no known significant concentrations of risk in the plan assets of the AbbVie Pension Plan or of any other plans. The expected return on plan assets assumption for each plan is based on management's expectations of long-term average rates of return to be achieved by the underlying investment portfolio. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions. Expected Benefit Payments The following table summarizes total benefit payments expected to be paid to plan participants including payments funded from both plan and company assets: years ending December 31 (in millions) Defined benefit plans Other post-employment plans 2020 $ 221 $ 18 2021 235 21 2022 251 24 2023 268 26 2024 286 29 2025 to 2029 1,737 186 Defined Contribution Plan AbbVie's principal defined contribution plan is the AbbVie Savings Plan. AbbVie recorded expense of $102 million in 2019 , $89 million in 2018 and $82 million in 2017 related to this plan. AbbVie provides certain other post-employment benefits, primarily salary continuation arrangements, to qualifying employees and accrues for the related cost over the service lives of the employees. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Stock-Based Compensation AbbVie grants stock-based awards to eligible employees pursuant to the AbbVie 2013 Incentive Stock Program (2013 ISP), which provides for several different forms of benefits, including nonqualified stock options, RSUs and various performance-based awards. Under the 2013 ISP, 100 million shares of AbbVie common stock were reserved for issuance as awards to AbbVie employees. The 2013 ISP also facilitated the assumption of certain awards granted under Abbott’s incentive stock program, which were adjusted and converted into Abbott and AbbVie stock-based awards as a result of AbbVie's separation from Abbott. AbbVie measures compensation expense for stock-based awards based on the grant date fair value of the awards and the estimated number of awards that are expected to vest. Forfeitures are estimated based on historical experience at the time of grant and are revised in subsequent periods if actual forfeitures differ from those estimates. Compensation cost for stock-based awards is amortized over the service period, which could be shorter than the vesting period if an employee is retirement eligible. Retirement eligible employees generally are those who are age 55 or older and have at least 10 years of service. Stock-based compensation expense is principally related to awards issued pursuant to the 2013 ISP and is summarized as follows: Years ended December 31, (in millions) 2019 2018 2017 Cost of products sold $ 29 $ 27 $ 23 Research and development 171 169 159 Selling, general and administrative 230 225 183 Pre-tax compensation expense 430 421 365 Tax benefit 80 73 73 After-tax compensation expense $ 350 $ 348 $ 292 Realized excess tax benefits associated with stock-based compensation totaled $15 million in 2019 , $78 million in 2018 and $71 million in 2017 . Stock Options Stock options awarded to employees typically have a contractual term of 10 years and generally vest in one-third increments over a three -year period. The exercise price is equal to at least 100% of the market value on the date of grant. The fair value is determined using the Black-Scholes model. The weighted-average grant-date fair values of stock options granted were $12.54 in 2019 , $21.63 in 2018 and $9.80 in 2017 . The following table summarizes AbbVie stock option activity in 2019 : (options in thousands, aggregate intrinsic value in millions) Options Weighted- average exercise price Weighted- average remaining life (in years) Aggregate intrinsic value Outstanding at December 31, 2018 6,143 $ 55.05 6.2 $ 242 Granted 1,002 79.02 Exercised (375 ) 23.72 Lapsed (9 ) 20.09 Outstanding at December 31, 2019 6,761 $ 60.39 5.9 $ 207 Exercisable at December 31, 2019 4,924 $ 51.90 4.9 $ 186 The total intrinsic value of options exercised was $22 million in 2019 , $215 million in 2018 and $371 million in 2017 . The total fair value of options vested during 2019 was $13 million . As of December 31, 2019 , $6 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 RSUs awarded to employees other than senior executives and other key employees generally vest in one-third increments over a three year period. Recipients of these RSUs are entitled to receive dividend equivalents as dividends are declared and paid during the RSU vesting period. The majority of the equity awards AbbVie grants to its senior executives and other key employees are performance-based. Equity awards granted to senior executives and other key employees consist of a combination of performance-vested RSUs and performance shares as well as non-qualified stock options described above. The performance-vested RSUs have the potential to vest in one-third increments during a three -year performance period based on AbbVie’s ROE relative to a defined peer group of pharmaceutical, biotech and life sciences companies. The recipient may receive one share of AbbVie common stock for each vested award. The performance shares have the potential to vest over a three -year performance period and may be earned based on AbbVie’s EPS achievement and AbbVie’s total stockholder return (TSR) (a market condition) relative to a defined peer group of pharmaceutical, biotech and life sciences companies. Dividend equivalents on performance-vested RSUs and performance shares accrue during the performance period and are payable at vesting only to the extent that shares are earned. The weighted-average grant-date fair value of RSUs and performance shares generally is determined based on the number of shares/units granted and the quoted price of AbbVie’s common stock on the date of grant. The weighted-average grant-date fair values of performance shares with a TSR market condition are determined using the Monte Carlo simulation model. The following table summarizes AbbVie RSU and performance share activity for 2019 : (share units in thousands) Share units Weighted-average grant date fair value Outstanding at December 31, 2018 9,868 $ 79.90 Granted 5,584 78.03 Vested (4,616 ) 71.30 Forfeited (604 ) 82.19 Outstanding at December 31, 2019 10,232 $ 81.72 The fair market value of RSUs and performance shares (as applicable) vested was $371 million in 2019 , $583 million in 2018 and $348 million in 2017 . As of December 31, 2019 , $327 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 Cash dividends declared per common share totaled $4.39 in 2019 , $3.95 in 2018 and $2.63 in 2017 . The following table summarizes quarterly cash dividends declared during 2019 , 2018 and 2017 : 2019 2018 2017 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 11/01/19 02/14/20 $1.18 11/02/18 02/15/19 $1.07 10/27/17 02/15/18 $0.71 09/06/19 11/15/19 $1.07 09/07/18 11/15/18 $0.96 09/08/17 11/15/17 $0.64 06/20/19 08/15/19 $1.07 06/14/18 08/15/18 $0.96 06/22/17 08/15/17 $0.64 02/21/19 05/15/19 $1.07 02/15/18 05/15/18 $0.96 02/16/17 05/15/17 $0.64 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 in 2019. AbbVie's remaining stock repurchase authorization was approximately $4.0 billion as of December 31, 2019 . On February 15, 2018, AbbVie's board of directors authorized a new $10.0 billion stock repurchase program, which superseded AbbVie's previous stock repurchase program. On December 13, 2018, AbbVie's board of directors authorized a $5.0 billion increase to the existing $10.0 billion stock repurchase program. Under this authorization, AbbVie repurchased approximately 109 million shares for $10.7 billion in 2018. Under previous stock repurchase programs, AbbVie made open-market share repurchases of approximately 11 million shares for $1.3 billion in 2018 and approximately 13 million shares for $1.0 billion in 2017 . Accumulated Other Comprehensive Loss The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for 2019 , 2018 and 2017 : (in millions) (brackets denote losses) Foreign currency translation adjustments Net investment hedging activities Pension and post- employment benefits Marketable security activities Cash flow hedging activities Total Balance as of December 31, 2016 $ (1,435 ) $ 140 $ (1,513 ) $ 46 $ 176 $ (2,586 ) Other comprehensive income (loss) before reclassifications 680 (343 ) (480 ) 29 (230 ) (344 ) Net losses (gains) reclassified from accumulated other comprehensive loss 316 — 74 (75 ) (112 ) 203 Net current-period other comprehensive income (loss) 996 (343 ) (406 ) (46 ) (342 ) (141 ) Balance as of December 31, 2017 (439 ) (203 ) (1,919 ) — (166 ) (2,727 ) Other comprehensive income (loss) before reclassifications (391 ) 138 84 (14 ) 156 (27 ) Net losses reclassified from accumulated other comprehensive loss — — 113 4 157 274 Net current-period other comprehensive income (loss) (391 ) 138 197 (10 ) 313 247 Balance as of December 31, 2018 (830 ) (65 ) (1,722 ) (10 ) 147 (2,480 ) Other comprehensive income (loss) before reclassifications (98 ) 95 (1,330 ) 12 298 (1,023 ) Net losses (gains) reclassified from accumulated other comprehensive loss — (21 ) 87 (2 ) (157 ) (93 ) Net current-period other comprehensive income (loss) (98 ) 74 (1,243 ) 10 141 (1,116 ) Balance as of December 31, 2019 $ (928 ) $ 9 $ (2,965 ) $ — $ 288 $ (3,596 ) Other comprehensive loss included foreign currency translation adjustments totaling losses of $98 million in 2019 and $391 million in 2018 which were principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets. In 2017, AbbVie reclassified $316 million of historical currency translation losses from AOCI related to the liquidation of certain foreign entities following the enactment of U.S. tax reform. These losses were included in net foreign exchange loss in the consolidated statement of earnings and had no related income tax impacts. Other comprehensive loss in 2017 also included foreign currency translation adjustments totaling a gain of $680 million , which was principally due to the impact of the strengthening of the Euro on the translation of the company’s Euro-denominated assets. Other comprehensive loss for 2019 included pension and post-employment benefit plan losses of $1.2 billion primarily due to an actuarial loss driven by lower discount rates. See Note 12 for additional information. The table below presents the impact on AbbVie's consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: years ended December 31 (in millions) (brackets denote gains) 2019 2018 2017 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (27 ) $ — $ — Tax expense 6 — — Total reclassifications, net of tax $ (21 ) $ — $ — Pension and post-employment benefits Amortization of actuarial losses and other (b) $ 110 $ 141 $ 107 Tax benefit (23 ) (28 ) (33 ) Total reclassifications, net of tax $ 87 $ 113 $ 74 Cash flow hedging activities Losses (gains) on foreign currency forward exchange contracts (c) $ (167 ) $ 161 $ (118 ) Gains on treasury rate lock agreements and interest rate swap contracts (a) (4 ) — — Tax expense (benefit) 14 (4 ) 6 Total reclassifications, net of tax $ (157 ) $ 157 $ (112 ) (a) Amounts are included in interest expense, net (see Note 11 ). (b) Amounts are included in the computation of net periodic benefit cost (see Note 12 ). (c) Amounts are included in cost of products sold (see Note 11 ). Other In addition to common stock, AbbVie's authorized capital includes 200 million shares of preferred stock, par value $0.01 . As of December 31, 2019 , no shares of preferred stock were issued or outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings Before Income Tax Expense years ended December 31 (in millions) 2019 2018 2017 Domestic $ (2,784 ) $ (4,274 ) $ (2,678 ) Foreign 11,210 9,471 10,405 Total earnings before income tax expense $ 8,426 $ 5,197 $ 7,727 Income Tax Expense years ended December 31 (in millions) 2019 2018 2017 Current Domestic $ 102 $ 593 $ 6,204 Foreign 320 434 376 Total current taxes $ 422 $ 1,027 $ 6,580 Deferred Domestic $ (137 ) $ (1,497 ) $ (4,898 ) Foreign 259 (20 ) 736 Total deferred taxes $ 122 $ (1,517 ) $ (4,162 ) Total income tax expense (benefit) $ 544 $ (490 ) $ 2,418 Impacts Related to U.S. Tax Reform The Tax Cuts and Jobs Act (the Act) was signed into law in December 2017, resulting in significant changes to the U.S. corporate tax system. The Act reduced the U.S. federal corporate tax rate from 35% to 21% and required companies to pay a one-time transition tax on a mandatory deemed repatriation of earnings of certain foreign subsidiaries that were previously untaxed. These changes were generally effective for tax years beginning in 2018. The Act also created a minimum tax on certain foreign sourced earnings. The company’s accounting policy for the minimum tax on foreign sourced earnings is to report the tax effects on the basis that the minimum tax will be recognized in tax expense in the year it is incurred as a period expense. Additionally, the Act significantly changed the timing and manner in which earnings of foreign subsidiaries are subject to U.S. tax. Therefore, unremitted foreign earnings previously considered indefinitely reinvested that were subject to the Act’s transition tax are no longer considered indefinitely reinvested. Post-2017 earnings subject to the U.S. minimum tax on foreign sourced earnings and the 100 percent foreign dividends received deduction are also not considered indefinitely reinvested earnings. As such, the company records foreign withholding tax liabilities related to the future cash repatriation of such earnings. However, the company considers instances of outside basis differences in foreign subsidiaries that would incur additional U.S. tax upon reversal (e.g., capital gain distribution) to be permanent in duration. The unrecognized tax liability is not practicable to determine. Effective Tax Rate Reconciliation years ended December 31 2019 2018 2017 Statutory tax rate 21.0 % 21.0 % 35.0 % Effect of foreign operations (8.4 ) (28.7 ) (12.2 ) U.S. tax credits (3.3 ) (7.3 ) (4.0 ) Impacts related to U.S. tax reform (1.6 ) 8.2 12.0 Stock-based compensation excess tax benefit (0.2 ) (1.5 ) (0.9 ) Tax audit settlements (4.7 ) (2.5 ) (1.2 ) Deferred tax remeasurements due to change in tax rate 3.1 — — All other, net 0.6 1.4 2.6 Effective tax rate 6.5 % (9.4 )% 31.3 % The effective income tax rate fluctuates year to year due to the allocation of the company's taxable earnings among jurisdictions, as well as certain discrete factors and events in each year, including changes in tax law, acquisitions and collaborations. The effective income tax rates in 2019 , 2018 and 2017 differed from the statutory tax rate principally due to changes in enacted tax rates and laws, 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, business development activities, the cost of repatriation decisions, Boehringer Ingelheim accretion on contingent consideration and Stemcentrx impairment related expenses. The effective tax rates for these periods also reflected the benefit from U.S. tax credits principally related to research and development credits, the orphan drug tax credit and Puerto Rico excise tax credits. The Puerto Rico excise tax credits relate to legislation enacted by Puerto Rico that assesses an excise tax on certain products manufactured in Puerto Rico. The tax is levied on gross inventory purchases from entities in Puerto Rico and is included in cost of products sold in the consolidated statements of earnings. The majority of the tax is creditable for U.S. income tax purposes. The effective income tax rate in 2019 , 2018 and 2017 included impacts related to U.S. tax reform. In 2018, there was a favorable impact of the effective date of provisions of the Act related to the earnings from certain foreign subsidiaries. For 2019, the impact of the Act affected the full year earnings of these subsidiaries, resulting in additional tax expense compared to prior year. The 2019 effective income tax rate also reflects the effects of deferred tax remeasurement due to a change in foreign tax law, accretion for contingent consideration and impairment related expenses. In addition, the company recognized a net tax benefit of $400 million in 2019 , $131 million in 2018 and $91 million in 2017 related to the resolution of various tax positions pertaining to prior years. Deferred Tax Assets and Liabilities as of December 31 (in millions) 2019 2018 Deferred tax assets Compensation and employee benefits $ 810 $ 529 Accruals and reserves 371 371 Chargebacks and rebates 477 417 Advance payments 615 867 Net operating losses and other credit carryforwards 838 228 Other 406 353 Total deferred tax assets 3,517 2,765 Valuation allowances (731 ) (103 ) Total net deferred tax assets 2,786 2,662 Deferred tax liabilities Excess of book basis over tax basis of intangible assets (2,712 ) (2,940 ) Excess of book basis over tax basis in investments (249 ) (211 ) Other (440 ) (250 ) Total deferred tax liabilities (3,401 ) (3,401 ) Net deferred tax liabilities $ (615 ) $ (739 ) As of December 31, 2019 , gross state net operating losses were $1.0 billion and tax credit carryforwards were $188 million . The state tax carryforwards expire between 2020 and 2039. As of December 31, 2019 , foreign net operating loss carryforwards were $2.9 billion . Foreign net operating loss carryforwards of $2.8 billion expire between 2020 and 2036 and the remaining do not have an expiration period. The company had valuation allowances of $731 million as of December 31, 2019 and $103 million as of December 31, 2018 . These were principally related to foreign and state net operating losses and credit carryforwards that are not expected to be realized. Unrecognized Tax Benefits years ended December 31 (in millions) 2019 2018 2017 Beginning balance $ 2,852 $ 2,701 $ 1,168 Increase due to current year tax positions 113 163 1,768 Increase due to prior year tax positions 499 110 16 Decrease due to prior year tax positions (21 ) (36 ) (2 ) Settlements (749 ) (79 ) (233 ) Lapse of statutes of limitations (33 ) (7 ) (16 ) Ending balance $ 2,661 $ 2,852 $ 2,701 AbbVie and Abbott entered into a tax sharing agreement, effective on the date of separation, which provides that Abbott is liable for and has indemnified AbbVie against all income tax liabilities for periods prior to the separation. AbbVie will be responsible for unrecognized tax benefits and related interest and penalties for periods after separation or in instances where an existing entity was transferred to AbbVie upon separation. If recognized, the net amount of potential tax benefits that would impact the company's effective tax rate is $2.4 billion in 2019 and $2.7 billion in 2018 . Of the unrecognized tax benefits recorded in the table above as of December 31, 2019 , AbbVie would be indemnified for approximately $83 million . The “Increase due to current year tax positions” and "Increase due to prior year tax positions" in the table above include amounts related to federal, state and international tax items. AbbVie recognizes interest and penalties related to income tax matters in income tax expense in the consolidated statements of earnings. AbbVie recognized gross income tax expense of $51 million in 2019 , $73 million in 2018 and $24 million in 2017 , for interest and penalties related to income tax matters. AbbVie had an accrual for the payment of gross interest and penalties of $191 million at December 31, 2019 , $190 million at December 31, 2018 and $120 million at December 31, 2017 . The company is routinely audited by the tax authorities in significant jurisdictions and a number of audits are currently underway. It is reasonably possible during the next 12 months that uncertain tax positions may be settled, which could result in a decrease in the gross amount of unrecognized tax benefits. Due to the potential for resolution of federal, state and foreign examinations and the expiration of various statutes of limitation, the company's gross unrecognized tax benefits balance may change within the next 12 months up to $54 million . All significant federal, state, local and international matters have been concluded for years through 2012. The company believes adequate provision has been made for all income tax uncertainties. |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 12 Months Ended |
Dec. 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 $290 million as of December 31, 2019 and approximately $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. In addition, other operating income in 2019 included $550 million of income from a legal settlement related to an intellectual property dispute with a third party . 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. Four lawsuits against Unimed Pharmaceuticals, LLC, Solvay Pharmaceuticals, Inc. (a company Abbott acquired in February 2010 and now known as AbbVie Products LLC) and others remained 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 direct AndroGel purchasers, generally allege Solvay's 2006 patent litigation settlement agreements and related agreements with three generic companies violate federal antitrust laws. Plaintiffs seek monetary damages and attorneys' fees. Three of those lawsuits were settled in December 2019 and will be dismissed. In September 2014, the FTC filed a lawsuit, FTC v. AbbVie Inc., et al. , 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 2018, a purported class action was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of direct AndroGel purchasers based on the trial court’s ruling in the FTC’s case. In September 2019, two individual direct AndroGel purchasers substituted in as the plaintiffs in that lawsuit and withdrew the class allegations. That case, which was pending as Rochester Drug Co-Operative, Inc., et al. v. AbbVie Inc., et al., was settled in December 2019 and will be dismissed. In August 2019, direct purchasers of AndroGel filed a lawsuit, King Drug Co. of Florence, Inc., et al. v. AbbVie Inc., et al. , against AbbVie and others in the United States District Court for the Eastern District of Pennsylvania, making allegations similar to those in In re: AndroGel Antitrust Litigation (No. II) , MDL No. 2084 (above) and FTC v. AbbVie Inc. (above). 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 consist of four individual plaintiff lawsuits and two consolidated purported class actions: one brought by Niaspan direct purchasers and one 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 August 2019, the court certified a class of direct purchasers of Niaspan. 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 Appeal ruled that the District Attorney’s Office may not bring monetary claims beyond the scope of Orange County, which the District Attorney’s Office is appealing. Between March and May 2019, 12 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. The court consolidated these lawsuits as In re: Humira (Adalimumab) Antitrust Litigation . 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 included violations of the federal RICO Act and state consumer fraud and deceptive trade practices laws. The complaint sought monetary damages and injunctive relief. In July 2018, the court denied the plaintiff’s motion for class certification. In November 2019, the United States Court of Appeals for the Seventh Circuit affirmed the district court’s grant of the defendants’ summary judgment motion. In July 2019, the New Mexico Attorney General filed a lawsuit, State of New Mexico ex rel. Balderas v. AbbVie Inc., et al. , in New Mexico District Court for Santa Fe County against AbbVie and other companies alleging their marketing of AndroGel violated New Mexico’s Unfair Practices Act. 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, a federal securities lawsuit ( Holwill v. AbbVie Inc., et al .) is pending in the United States District Court for the Northern District of Illinois) against AbbVie, its chief executive officer and former 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 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 October 2019, the court granted final approval to the parties’ class settlement agreement. 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 2019 against AbbVie and in some instances its chief executive officer in the same court by additional investment funds. Plaintiffs seek compensatory and punitive damages. 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 3,500 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 175 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 120 cases are pending in the United States District Court for the Southern District of Illinois, and approximately 14 others are pending in various federal and state courts. Plaintiffs generally seek compensatory and punitive damages. Approximately eighty 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. In January 2020, the Court of Appeals for the Federal Circuit affirmed the decisions. 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 11 HCV-related patents licensed to AbbVie in 2002 are invalid. 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 and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | Segment and Geographic Area Information AbbVie operates in one business segment—pharmaceutical products. Substantially all of AbbVie's net revenues in the United States are to three wholesalers. Outside the United States, products are sold primarily to health care providers or through distributors, depending on the market served. The following tables detail AbbVie's worldwide net revenues: years ended December 31 (in millions) 2019 2018 2017 Immunology HUMIRA United States $ 14,864 $ 13,685 $ 12,361 International 4,305 6,251 6,066 Total $ 19,169 $ 19,936 $ 18,427 SKYRIZI United States $ 311 $ — $ — International 44 — — Total $ 355 $ — $ — RINVOQ United States $ 47 $ — $ — International — — — Total $ 47 $ — $ — Hematologic Oncology IMBRUVICA United States $ 3,830 $ 2,968 $ 2,144 Collaboration revenues 844 622 429 Total $ 4,674 $ 3,590 $ 2,573 VENCLEXTA United States $ 521 $ 247 $ 89 International 271 97 33 Total $ 792 $ 344 $ 122 HCV MAVYRET United States $ 1,473 $ 1,614 $ 277 International 1,420 1,824 213 Total $ 2,893 $ 3,438 $ 490 VIEKIRA United States $ — $ 3 $ 61 International 36 175 723 Total $ 36 $ 178 $ 784 Other Key Products Creon United States $ 1,041 $ 928 $ 831 Lupron United States $ 720 $ 726 $ 669 International 167 166 160 Total $ 887 $ 892 $ 829 Synthroid United States $ 786 $ 776 $ 781 Synagis International $ 718 $ 726 $ 738 Duodopa United States $ 97 $ 80 $ 61 International 364 350 294 Total $ 461 $ 430 $ 355 Sevoflurane United States $ 74 $ 74 $ 78 International 274 317 332 Total $ 348 $ 391 $ 410 Kaletra United States $ 38 $ 55 $ 71 International 245 281 352 Total $ 283 $ 336 $ 423 AndroGel United States $ 172 $ 469 $ 577 ORILISSA United States $ 91 $ 11 $ — International 2 — — Total $ 93 $ 11 $ — All other $ 511 $ 308 $ 876 Total net revenues $ 33,266 $ 32,753 $ 28,216 Net revenues to external customers by geographic area, based on product shipment destination, were as follows: years ended December 31 (in millions) 2019 2018 2017 United States $ 23,907 $ 21,524 $ 18,251 Japan 1,211 1,591 764 Germany 909 1,292 1,157 Canada 813 730 659 France 695 783 730 Spain 472 611 521 United Kingdom 372 855 807 Italy 372 652 475 Brazil 359 350 410 The Netherlands 163 352 362 All other countries 3,993 4,013 4,080 Total net revenues $ 33,266 $ 32,753 $ 28,216 Long-lived assets, primarily net property and equipment, by geographic area were as follows: as of December 31 (in millions) 2019 2018 United States and Puerto Rico $ 2,026 $ 1,993 Europe 646 599 All other 290 291 Total long-lived assets $ 2,962 $ 2,883 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) (in millions except per share data) 2019 2018 First Quarter Net revenues $ 7,828 $ 7,934 Gross margin 6,134 6,007 Net earnings (a) 2,456 2,783 Basic earnings per share $ 1.65 $ 1.74 Diluted earnings per share $ 1.65 $ 1.74 Cash dividends declared per common share $ 1.07 $ 0.96 Second Quarter Net revenues $ 8,255 $ 8,278 Gross margin 6,436 6,344 Net earnings (b) 741 1,983 Basic earnings per share $ 0.49 $ 1.26 Diluted earnings per share $ 0.49 $ 1.26 Cash dividends declared per common share $ 1.07 $ 0.96 Third Quarter Net revenues $ 8,479 $ 8,236 Gross margin 6,559 6,401 Net earnings (c) 1,884 2,747 Basic earnings per share $ 1.27 $ 1.81 Diluted earnings per share $ 1.26 $ 1.81 Cash dividends declared per common share $ 1.07 $ 0.96 Fourth Quarter Net revenues $ 8,704 $ 8,305 Gross margin 6,698 6,283 Net earnings (loss) (d) 2,801 (1,826 ) Basic earnings (loss) per share $ 1.88 $ (1.23 ) Diluted earnings (loss) per share $ 1.88 $ (1.23 ) Cash dividends declared per common share $ 1.18 $ 1.07 (a) First quarter results in 2019 included after-tax charges of $171 million related to the change in fair value of contingent consideration liabilities and restructuring charges of $133 million . First quarter results in 2018 included an after-tax benefit of $148 million related to the change in fair value of contingent consideration liabilities partially offset by after-tax litigation reserves charges of $100 million . (b) Second quarter results in 2019 included an after-tax charge of $2.3 billion related to the change in fair value of contingent consideration liabilities resulting from the April 2019 regulatory approvals of SKYRIZI for the treatment of moderate to severe plaque psoriasis. Second quarter results in 2018 included after-tax charges of $500 million as a result of a collaboration agreement extension with Calico and $485 million related to the change in fair value of contingent consideration liabilities. (c) Third quarter results in 2019 included after-tax charges of $912 million related to intangible asset impairment and $182 million related to the change in fair value of contingent consideration liabilities. Third quarter results in 2018 included after-tax litigation reserves charges of $176 million and $95 million related to the change in fair value of contingent consideration liabilities. (d) Fourth quarter results in 2019 included an after-tax charge of $438 million related to the change in fair value of contingent consideration liabilities offset by after-tax income of $435 million from a legal settlement related to an intellectual property dispute with a third party and $297 million from an amended and restated license agreement between AbbVie and Reata . Fourth quarter results in 2018 included an after-tax intangible asset impairment charge of $4.5 billion partially offset by an after-tax benefit of $375 million related to the change in fair value of contingent consideration liabilities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for rebates, pension and other post-employment benefits, income taxes, litigation, valuation of goodwill and intangible assets, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of AbbVie and all of its subsidiaries in which a controlling interest is maintained. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, where AbbVie is determined to be the primary beneficiary. Investments in companies over which AbbVie has a significant influence but not a controlling interest are accounted for using the equity method with AbbVie's share of earnings or losses reported in other expense, net in the consolidated statements of earnings. Intercompany balances and transactions are eliminated. Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period presentation. |
Revenue Recognition | Revenue Recognition AbbVie recognizes revenue when control of promised goods or services is transferred to the company’s customers, in an amount that reflects the consideration AbbVie expects to be entitled to in exchange for those goods or services. Sales, value add and other taxes collected concurrent with revenue-producing activities are excluded from revenue. AbbVie generates revenue primarily from product sales. For the majority of sales, the company transfers control, invoices the customer and recognizes revenue upon shipment to the customer. The company recognizes shipping and handling costs as an expense in cost of products sold when the company transfers control to the customer. Payment terms vary depending on the type and location of the customer, are based on customary commercial terms and are generally less than one year. AbbVie does not adjust revenue for the effects of a significant financing component for contracts where AbbVie expects the period between the transfer of the good or service and collection to be one year or less. Discounts, rebates, sales incentives to customers, returns and certain other adjustments are accounted for as variable consideration. Provisions for variable consideration are based on current pricing, executed contracts, government pricing legislation and historical data and are provided for in the period the related revenues are recorded. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer. For each type of rebate, factors used in the calculation of the accrual include the identification of the products subject to the rebate, the applicable price terms and the estimated lag time between sale and payment of the rebate, which can be significant. Sales incentives to customers are insignificant. In addition to revenue from contracts with customers, the company also recognizes certain collaboration revenues. See Note 6 for additional information related to the collaboration with Janssen Biotech, Inc. Additionally, see Note 16 for disaggregation of revenue by product and geography. |
Research and Development Expenses | Research and Development Expenses Internal research and development (R&D) costs are expensed as incurred. Clinical trial costs incurred by third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development collaborations, prior to regulatory approval, the payment obligations are expensed when the milestone results are achieved. Payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the remaining useful life of the related product. |
Collaborations and Other Arrangements | Collaborations and Other Arrangements The company enters into collaborative agreements with third parties to develop and commercialize drug candidates. Collaborative activities may include joint research and development and commercialization of new products. AbbVie generally receives certain licensing rights under these arrangements. These collaborations often require upfront payments and may include additional milestone, research and development cost sharing, royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development and commercialization. Upfront payments associated with collaborative arrangements during the development stage are expensed to acquired in-process research and development (IPR&D) expenses in the consolidated statements of earnings. Subsequent payments made to the partner for the achievement of milestones during the development stage are expensed to R&D expense in the consolidated statements of earnings when the milestone is achieved. Milestone payments made to the partner subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the estimated useful life of the related asset. Royalties are expensed to cost of products sold in the consolidated statements of earnings when incurred. |
Advertising | Advertising |
Pension and Other Post-Employment Benefits | Pension and Other Post-Employment Benefits AbbVie records annual expenses relating to its defined benefit pension and other post-employment benefit plans based on calculations which utilize various actuarial assumptions, including discount rates, rates of return on assets, compensation increases, turnover rates and health care cost trend rates. AbbVie reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive income (AOCI), net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are amortized to net periodic benefit cost over a five -year period. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pretax earnings based on current tax laws. Deferred taxes are provided using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. |
Cash and Equivalents | Cash and Equivalents Cash and equivalents include money market funds and time deposits with original maturities of three months or less. |
Investments | Investments Investments consist primarily of time deposits, marketable debt securities, held-to-maturity debt securities and equity securities. Investments in marketable debt securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in AOCI on the consolidated balance sheets until realized, at which time the gains or losses are recognized in earnings. Investments in equity securities that have readily determinable fair values are recorded at fair value. Investments in equity securities that do not have readily determinable fair values are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. Held-to-maturity debt securities are recorded at cost. Gains or losses on investments are included in other expense, net in the consolidated statements of earnings. AbbVie periodically assesses its marketable debt securities for other-than-temporary impairment losses. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below the cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security, intent to sell, or whether AbbVie will more likely than not be required to sell the security before recovery of its amortized cost basis. AbbVie also considers industry factors and general market trends. When AbbVie determines that an other-than-temporary decline has occurred, the cost basis of the investment is written down with a charge to other expense, net in the consolidated statements of earnings and an available-for-sale investment's unrealized loss is reclassified from AOCI to other expense, net in the consolidated statements of earnings. Realized gains and losses on sales of investments are computed using the first-in, first-out method adjusted for any other-than-temporary declines in fair value that were recorded in net earnings. |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories |
Property and Equipment | Depreciation for property and equipment is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life for buildings ranges from 10 to 50 years. Buildings include leasehold improvements which are amortized over the life of the related facility lease (including any renewal periods, if appropriate) or the asset, whichever is shorter. The estimated useful life for equipment ranges from 2 to 25 years. Equipment includes certain computer software and software development costs incurred in connection with developing or obtaining software for internal use and is amortized over 3 to 10 |
Leases | 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 |
Litigation and Contingencies | Litigation and Contingencies Loss contingency provisions are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. When a best estimate cannot be made, the minimum loss contingency amount in a probable range is recorded. Legal fees are expensed as incurred. AbbVie accrues for product liability claims on an undiscounted basis. The liabilities are evaluated quarterly and adjusted if necessary as additional information becomes available. Receivables for insurance recoveries for product liability claims, if any, are recorded as assets on an undiscounted basis when it is probable that a recovery will be realized. |
Business Combinations | Business Combinations AbbVie utilizes the acquisition method of accounting for business combinations. This method requires, among other things, that results of operations of acquired companies are included in AbbVie's results of operations beginning on the respective acquisition dates and that assets acquired and liabilities assumed are recognized at fair value as of the acquisition date. Any excess of the fair value of consideration transferred over the fair values of the net assets acquired is recognized as goodwill. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liabilities are recognized in other expense, net in the consolidated statements of earnings. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow model. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital and terminal values of market participants. Definite-lived intangibles are amortized over their estimated useful lives using the estimated pattern of economic benefit. AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. AbbVie first compares the projected undiscounted cash flows to be generated by the asset to its carrying value. If the undiscounted cash flows of an intangible asset are less than the carrying value, the intangible asset is written down to its fair value. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest level for which cash flows are largely independent of the cash flows of other assets and liabilities. Goodwill and indefinite-lived assets are not amortized, but are subject to an impairment review annually and more frequently when indicators of impairment exist. An impairment of goodwill could occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. An impairment of indefinite-lived intangible assets would occur if the fair value of the intangible asset is less than the carrying value. The company tests its goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative impairment test is performed. AbbVie tests indefinite-lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value is less than its carrying amount, a quantitative impairment test is performed. For its quantitative impairment tests, the company uses an estimated future cash flow approach that requires significant judgment with respect to future volume, revenue and expense growth rates, changes in working capital use, the selection of an appropriate discount rate, asset groupings and other assumptions and estimates. The estimates and assumptions used are consistent with the company's business plans and a market participant's views. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of the assets and potentially result in different impacts to the company's results of operations. Actual results may differ from the company's estimates. |
Acquired In-Process Research and Development | Acquired In-Process Research and Development In an asset acquisition, the initial costs of rights to IPR&D projects acquired are expensed as IPR&D in the consolidated statements of earnings unless the project has an alternative future use. These costs include initial payments incurred prior to regulatory approval in connection with research and development collaboration agreements that provide rights to develop, manufacture, market and/or sell pharmaceutical products. In a business combination, the fair value of IPR&D projects acquired are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. R&D costs incurred after the acquisition are expensed as incurred. |
Foreign Currency Translation | Foreign Currency Translation Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in other comprehensive income (loss) (OCI) in the consolidated statements of comprehensive income. The net assets of subsidiaries in highly inflationary economies are remeasured as if the functional currency were the reporting currency. The remeasurement is recognized in net foreign exchange loss in the consolidated statements of earnings. |
Derivatives | Derivatives All derivative instruments are recognized as either assets or liabilities at fair value on the consolidated balance sheets and are classified as current or long-term based on the scheduled maturity of the instrument. For derivatives formally designated as hedges, the company assesses at inception and quarterly thereafter whether the hedging derivatives are highly effective in offsetting changes in the fair value or cash flows of the hedged item. The changes in fair value of a derivative designated as a fair value hedge and of the hedged item attributable to the hedged risk are recognized in earnings immediately. The effective portions of changes in the fair value of a derivative designated as a cash flow hedge are reported in AOCI and are subsequently recognized in earnings consistent with the underlying hedged item. If it is determined that a derivative is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If a hedged forecasted transaction becomes probable of not occurring, any gains or losses are reclassified from AOCI to earnings. Derivatives that are not designated as hedges are adjusted to fair value through current earnings. The company also uses derivative instruments or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. Realized and unrealized gains and losses from these hedges are included in AOCI. Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing section of the consolidated statements of cash flows. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements ASU No. 2016-02 In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842) . The standard outlined a comprehensive lease accounting model that superseded the previous lease guidance and required lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. The guidance also changed the definition of a lease and expanded 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 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 consolidated balance sheet primarily related to the recognition of liabilities and corresponding right-of-use assets for operating leases. The adjustment to the 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 consolidated balance sheet were insignificant. Adoption of the standard did not have a significant impact on AbbVie's consolidated statement of earnings in 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 allowed a reclassification from 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 has completed its assessment of the new standard as of December 31, 2019 and concluded that the adoption will not have a material impact on its consolidated financial statements based on the company's current portfolio of financial assets. ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) . The standard includes simplifications related to accounting for income taxes including removing certain exceptions related to the approach for intraperiod tax allocation and the recognition of deferred tax liabilities for outside basis differences. The standard also clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for AbbVie starting with the first quarter of 2021, with early adoption permitted. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of inventories | Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs. Inventories consisted of the following: as of December 31 (in millions) 2019 2018 Finished goods $ 485 $ 473 Work-in-process 942 862 Raw materials 386 270 Inventories $ 1,813 $ 1,605 |
Schedule of property and equipment | Property and Equipment as of December 31 (in millions) 2019 2018 Land $ 72 $ 73 Buildings 1,613 1,603 Equipment 6,012 6,362 Construction in progress 491 358 Property and equipment, gross 8,188 8,396 Less accumulated depreciation (5,226 ) (5,513 ) Property and equipment, net $ 2,962 $ 2,883 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Financial Information | |
Schedule of interest expense, net | Interest Expense, Net years ended December 31 (in millions) 2019 2018 2017 Interest expense $ 1,784 $ 1,348 $ 1,150 Interest income (275 ) (204 ) (146 ) Interest expense, net $ 1,509 $ 1,144 $ 1,004 |
Schedule of accounts payable and accrued liabilities | Accounts Payable and Accrued Liabilities as of December 31 (in millions) 2019 2018 Sales rebates $ 4,484 $ 3,939 Dividends payable 1,771 1,607 Accounts payable 1,452 1,546 Salaries, wages and commissions 830 787 Royalty and license arrangements 324 304 Other 2,971 3,748 Accounts payable and accrued liabilities $ 11,832 $ 11,931 |
Schedule of other long-term liabilities | Other Long-Term Liabilities as of December 31 (in millions) 2019 2018 Contingent consideration liabilities $ 7,201 $ 4,306 Income taxes payable 3,453 4,311 Pension and other post-employment benefits 2,949 1,840 Liabilities for unrecognized tax benefits 2,772 2,726 Other 1,222 1,307 Other long-term liabilities $ 17,597 $ 14,490 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share, impact of two-class method | The following table summarizes the impact of the two-class method: Years ended December 31, (in millions, except per share data) 2019 2018 2017 Basic EPS Net earnings $ 7,882 $ 5,687 $ 5,309 Earnings allocated to participating securities 40 30 26 Earnings available to common shareholders $ 7,842 $ 5,657 $ 5,283 Weighted-average basic shares outstanding 1,481 1,541 1,596 Basic earnings per share $ 5.30 $ 3.67 $ 3.31 Diluted EPS Net earnings $ 7,882 $ 5,687 $ 5,309 Earnings allocated to participating securities 40 30 26 Earnings available to common shareholders $ 7,842 $ 5,657 $ 5,283 Weighted-average shares of common stock outstanding 1,481 1,541 1,596 Effect of dilutive securities 3 5 7 Weighted-average diluted shares outstanding 1,484 1,546 1,603 Diluted earnings per share $ 5.28 $ 3.66 $ 3.30 |
Collaboration with Janssen Bi_2
Collaboration with Janssen Biotech, Inc. (Tables) | 12 Months Ended |
Dec. 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: years ended December 31 (in millions) 2019 2018 2017 United States - Janssen's share of profits (included in cost of products sold) $ 1,803 $ 1,372 $ 1,001 International - AbbVie's share of profits (included in net revenues) 844 622 429 Global - AbbVie's share of other costs (included in respective line items) 321 326 288 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 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, 2017 $ 15,785 Foreign currency translation (122 ) Balance as of December 31, 2018 15,663 Foreign currency translation (59 ) Balance as of December 31, 2019 $ 15,604 |
Schedule of definite-lived intangible assets | The following table summarizes intangible assets: 2019 2018 as of December 31 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Developed product rights $ 19,547 $ (6,405 ) $ 13,142 $ 15,872 $ (5,614 ) $ 10,258 License agreements 7,798 (2,291 ) 5,507 7,865 (1,810 ) 6,055 Total definite-lived intangible assets 27,345 (8,696 ) 18,649 23,737 (7,424 ) 16,313 Indefinite-lived research and development — — — 4,920 — 4,920 Total intangible assets, net $ 27,345 $ (8,696 ) $ 18,649 $ 28,657 $ (7,424 ) $ 21,233 |
Schedule of indefinite-lived intangible assets | The following table summarizes intangible assets: 2019 2018 as of December 31 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Developed product rights $ 19,547 $ (6,405 ) $ 13,142 $ 15,872 $ (5,614 ) $ 10,258 License agreements 7,798 (2,291 ) 5,507 7,865 (1,810 ) 6,055 Total definite-lived intangible assets 27,345 (8,696 ) 18,649 23,737 (7,424 ) 16,313 Indefinite-lived research and development — — — 4,920 — 4,920 Total intangible assets, net $ 27,345 $ (8,696 ) $ 18,649 $ 28,657 $ (7,424 ) $ 21,233 |
Schedule of anticipated annual amortization expense | The anticipated annual amortization expense for definite-lived intangible assets recorded as of December 31, 2019 is as follows: (in billions) 2020 2021 2022 2023 2024 Anticipated annual amortization expense $ 1.8 $ 2.0 $ 2.3 $ 2.4 $ 2.5 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 12 Months Ended |
Dec. 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 2019 , 2018 and 2017 : (in millions) Accrued balance as of December 31, 2016 $ 87 2017 restructuring charges 86 Payments and other adjustments (87 ) Accrued balance as of December 31, 2017 86 2018 restructuring charges 59 Payments and other adjustments (46 ) Accrued balance as of December 31, 2018 99 2019 restructuring charges 219 Payments and other adjustments (178 ) Accrued balance as of December 31, 2019 $ 140 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of amounts and location of operating and finance leases on the consolidated balance sheet | The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheet: (in millions) Balance sheet caption December 31, Assets Operating Other assets $ 344 Finance Property and equipment, net 23 Total lease assets $ 367 Liabilities Operating Current Accounts payable and accrued liabilities $ 109 Noncurrent Other long-term liabilities 251 Finance Current Current portion of long-term debt and finance lease obligations 7 Noncurrent Long-term debt and finance lease obligations 20 Total lease liabilities $ 387 |
Summary of lease costs recognized in the condensed consolidated statement of earnings | The following table summarizes the lease costs recognized in the consolidated statement of earnings: year ended December 31 (in millions) 2019 Operating lease cost $ 124 Short-term lease cost 34 Variable lease cost 62 Total lease cost $ 220 |
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: December 31, Weighted-average remaining lease term (years) Operating 5 Finance 3 Weighted-average discount rate Operating 3.9 % Finance 3.9 % |
Schedule of supplementary cash flow information regarding the company's leases | The following table presents supplementary cash flow information regarding the company's leases: year ended December 31 (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 125 Right-of-use assets obtained in exchange for new operating lease liabilities 26 |
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 December 31, 2019 : (in millions) Operating leases Finance leases Total (a)(b) 2020 $ 119 $ 10 $ 129 2021 104 9 113 2022 59 8 67 2023 38 1 39 2024 22 — 22 Thereafter 58 — 58 Total lease payments 400 28 428 Less: Interest 40 1 41 Present value of lease liabilities $ 360 $ 27 $ 387 (a) Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence in 2020 with lease terms of approximately 11 years . (b) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
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 December 31, 2019 : (in millions) Operating leases Finance leases Total (a)(b) 2020 $ 119 $ 10 $ 129 2021 104 9 113 2022 59 8 67 2023 38 1 39 2024 22 — 22 Thereafter 58 — 58 Total lease payments 400 28 428 Less: Interest 40 1 41 Present value of lease liabilities $ 360 $ 27 $ 387 (a) Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence in 2020 with lease terms of approximately 11 years . (b) Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. |
Debt, Credit Facilities, and _2
Debt, Credit Facilities, and Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt, Credit Facilities, and Commitments and Contingencies | |
Summary of long-term debt | The following table summarizes long-term debt: as of December 31 (dollars in millions) Effective interest rate in 2019 (a) 2019 Effective interest rate in 2018 (a) 2018 Senior notes issued in 2012 2.90% notes due 2022 2.97 % $ 3,100 2.97 % $ 3,100 4.40% notes due 2042 4.46 % 2,600 4.46 % 2,600 Senior notes issued in 2015 2.50% notes due 2020 2.65 % 3,750 2.65 % 3,750 3.20% notes due 2022 3.28 % 1,000 3.28 % 1,000 3.60% notes due 2025 3.66 % 3,750 3.66 % 3,750 4.50% notes due 2035 4.58 % 2,500 4.58 % 2,500 4.70% notes due 2045 4.73 % 2,700 4.73 % 2,700 Senior notes issued in 2016 2.30% notes due 2021 2.40 % 1,800 2.40 % 1,800 2.85% notes due 2023 2.91 % 1,000 2.91 % 1,000 3.20% notes due 2026 3.28 % 2,000 3.28 % 2,000 4.30% notes due 2036 4.37 % 1,000 4.37 % 1,000 4.45% notes due 2046 4.50 % 2,000 4.50 % 2,000 Senior Euro notes issued in 2016 0.375% notes due 2019 (€1,400 principal) 0.55 % — 0.55 % 1,604 1.375% notes due 2024 (€1,450 principal) 1.46 % 1,625 1.46 % 1,661 2.125% notes due 2028 (€750 principal) 2.18 % 840 2.18 % 859 Senior notes issued in 2018 3.375% notes due 2021 3.51 % 1,250 3.51 % 1,250 3.75% notes due 2023 3.84 % 1,250 3.84 % 1,250 4.25% notes due 2028 4.38 % 1,750 4.38 % 1,750 4.875% notes due 2048 4.94 % 1,750 4.94 % 1,750 Senior Euro notes issued in 2019 0.75% notes due 2027 (€750 principal) 0.86 % 840 — — 1.25% notes due 2031 (€650 principal) 1.30 % 728 — — Senior notes issued in 2019 Floating rate notes due May 2021 2.08 % 750 — — Floating rate notes due November 2021 2.12 % 750 — — Floating rate notes due 2022 2.29 % 750 — — 2.15% notes due 2021 2.23 % 1,750 — — 2.30% notes due 2022 2.42 % 3,000 — — 2.60% notes due 2024 2.69 % 3,750 — — 2.95% notes due 2026 3.02 % 4,000 — — 3.20% notes due 2029 3.25 % 5,500 — — 4.05% notes due 2039 4.11 % 4,000 — — 4.25% notes due 2049 4.29 % 5,750 — — Other 27 36 Fair value hedges (48 ) (466 ) Unamortized bond discounts (161 ) (120 ) Unamortized deferred financing costs (323 ) (163 ) Total long-term debt and finance lease obligations 66,728 36,611 Current portion 3,753 1,609 Noncurrent portion $ 62,975 $ 35,002 (a) Excludes the effect of any related interest rate swaps. |
Summary of maturities of long-term debt | The following table summarizes AbbVie's debt maturities as of December 31, 2019 : as of and for the years ending December 31 (in millions) 2020 $ 3,750 2021 6,300 2022 7,850 2023 2,250 2024 5,375 Thereafter 41,708 Total obligations and commitments 67,233 Fair value hedges, unamortized bond discounts, deferred financing costs and finance lease obligations (505 ) Total long-term debt and finance lease obligations $ 66,728 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of amounts and location of derivatives on the consolidated balance sheets | The following table summarizes the amounts and location of AbbVie's derivative instruments on the consolidated balance sheets: Fair value - Derivatives in asset position Fair value - Derivatives in liability position as of December 31 (in millions) Balance sheet caption 2019 2018 Balance sheet caption 2019 2018 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 3 $ 113 Accounts payable and accrued liabilities $ 14 $ — Designated as net investment hedges Prepaid expenses and other — — Accounts payable and accrued liabilities 24 — Not designated as hedges Prepaid expenses and other 19 19 Accounts payable and accrued liabilities 18 26 Interest rate swap contracts Designated as cash flow hedges Other assets 3 — Other long-term liabilities — — Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities 2 — Designated as fair value hedges Other assets 28 — Other long-term liabilities 74 466 Total derivatives $ 53 $ 132 $ 132 $ 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): years ended in December 31 (in millions) 2019 2018 2017 Foreign currency forward exchange contracts Designated as cash flow hedges $ (5 ) $ 175 $ (250 ) Designated as net investment hedges 33 — — Interest rate swap contracts designated as cash flow hedges 4 — — Treasury rate lock agreements designated as cash flow hedges 383 — — |
Summary of pre-tax amounts and location of derivatives recognized in the consolidated statement of earnings | The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI. years ended December 31 (in millions) Statement of earnings caption 2019 2018 2017 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ 167 $ (161 ) $ 118 Designated as net investment hedges Interest expense, net 27 — — Not designated as hedges Net foreign exchange loss (70 ) 83 (96 ) Treasury rate lock agreements designated as cash flow hedges Interest expense, net 3 — — Interest rate swap contracts Designated as cash flow hedges Interest expense, net 1 — — Designated as fair value hedges Interest expense, net 418 (71 ) (63 ) Debt designated as hedged item in fair value hedges Interest expense, net (418 ) 71 63 |
Summary of bases used to measure assets and liabilities carried at fair value on a recurring basis | The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2019 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) Assets Cash and equivalents $ 39,924 $ 1,542 $ 38,382 $ — Debt securities 3 — 3 — Equity securities 24 24 — — Interest rate swap contracts 31 — 31 — Foreign currency contracts 22 — 22 — Total assets $ 40,004 $ 1,566 $ 38,438 $ — Liabilities Interest rate swap contracts $ 76 $ — $ 76 $ — Foreign currency contracts 56 — 56 — Contingent consideration 7,340 — — 7,340 Total liabilities $ 7,472 $ — $ 132 $ 7,340 The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2018 : Basis of fair value measurement (in millions) Total Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) 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 swap contracts $ 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 contingent consideration liabilities which are measured using Level 3 inputs | The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs: years ended December 31 (in millions) 2019 2018 2017 Beginning balance $ 4,483 $ 4,534 $ 4,213 Change in fair value recognized in net earnings 3,091 49 626 Payments (234 ) (100 ) (305 ) Ending balance $ 7,340 $ 4,483 $ 4,534 |
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, 2019 are shown in the table below: Basis of fair value measurement (in millions) Book value Approximate fair values Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) Liabilities Current portion of long-term debt and finance lease obligations, excluding fair value hedges $ 3,755 $ 3,760 $ 3,753 $ 7 $ — Long-term debt and finance lease obligations, excluding fair value hedges 63,021 66,651 66,631 20 — Total liabilities $ 66,776 $ 70,411 $ 70,384 $ 27 $ — 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 values Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable Inputs (Level 3) 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 $ — |
Summary of available-for-sale securities by type | 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) | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Schedule of benefit plan information | The following table summarizes benefit plan information for the global AbbVie-sponsored defined benefit and other post-employment plans: Defined benefit plans Other post-employment plans as of and for the years ended December 31 (in millions) 2019 2018 2019 2018 Projected benefit obligations Beginning of period $ 6,618 $ 6,985 $ 561 $ 813 Service cost 269 285 25 26 Interest cost 259 227 29 25 Employee contributions 2 2 — — Actuarial (gain) loss 1,703 (614 ) 451 (287 ) Benefits paid (206 ) (191 ) (17 ) (16 ) Other, primarily foreign currency translation adjustments 1 (76 ) 1 — End of period 8,646 6,618 1,050 561 Fair value of plan assets Beginning of period 5,637 5,399 — — Actual return on plan assets 946 (384 ) — — Company contributions 727 873 17 16 Employee contributions 2 2 — — Benefits paid (206 ) (191 ) (17 ) (16 ) Other, primarily foreign currency translation adjustments 10 (62 ) — — End of period 7,116 5,637 — — Funded status, end of period $ (1,530 ) $ (981 ) $ (1,050 ) $ (561 ) Amounts recognized on the consolidated balance sheets Other assets $ 395 $ 321 $ — $ — Accounts payable and accrued liabilities (8 ) (8 ) (18 ) (15 ) Other long-term liabilities (1,917 ) (1,294 ) (1,032 ) (546 ) Net obligation $ (1,530 ) $ (981 ) $ (1,050 ) $ (561 ) Actuarial loss, net $ 3,633 $ 2,516 $ 469 $ 25 Prior service cost (credit) 10 11 (16 ) (22 ) Accumulated other comprehensive loss $ 3,643 $ 2,527 $ 453 $ 3 |
Summary of pretax gains and losses included in other comprehensive income (loss) | The following table summarizes the pre-tax losses (gains) included in other comprehensive income (loss): years ended December 31 (in millions) 2019 2018 2017 Defined benefit plans Actuarial loss $ 1,231 $ 209 $ 412 Amortization of actuarial loss and prior service cost (109 ) (140 ) (107 ) Foreign exchange loss (gain) and other (6 ) (13 ) 46 Total loss $ 1,116 $ 56 $ 351 Other post-employment plans Actuarial loss (gain) $ 451 $ (287 ) $ 149 Amortization of actuarial loss and prior service credit (1 ) (1 ) — Total loss (gain) $ 450 $ (288 ) $ 149 |
Summary of net periodic benefit cost relating to the company's defined benefit and other post-employment plans | Net Periodic Benefit Cost years ended December 31 (in millions) 2019 2018 2017 Defined benefit plans Service cost $ 269 $ 285 $ 236 Interest cost 259 227 204 Expected return on plan assets (474 ) (439 ) (382 ) Amortization of actuarial loss and prior service cost 109 140 107 Net periodic benefit cost $ 163 $ 213 $ 165 Other post-employment plans Service cost $ 25 $ 26 $ 26 Interest cost 29 25 24 Amortization of actuarial loss and prior service credit 1 1 — Net periodic benefit cost $ 55 $ 52 $ 50 |
Schedule of weighted-average assumptions used in determining benefit obligations at the measurement date | Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date as of December 31 2019 2018 Defined benefit plans Discount rate 3.0 % 4.0 % Rate of compensation increases 4.6 % 4.6 % Other post-employment plans Discount rate 3.6 % 4.6 % |
Schedule of weighted-average assumptions used in determining net periodic benefit cost | st in 2020 . Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost years ended December 31 2019 2018 2017 Defined benefit plans Discount rate for determining service cost 4.0 % 3.4 % 3.9 % Discount rate for determining interest cost 4.0 % 3.1 % 3.7 % Expected long-term rate of return on plan assets 7.6 % 7.7 % 7.8 % Expected rate of change in compensation 4.6 % 4.4 % 4.4 % Other post-employment plans Discount rate for determining service cost 4.7 % 4.0 % 4.9 % Discount rate for determining interest cost 4.3 % 3.7 % 4.1 % |
Schedule of effect of 1% change in assumed health care cost trend rates | As of December 31, 2019 , a one percentage point change in assumed health care cost trend rates would have the following effects: One percentage point year ended December 31, 2019 (in millions) (brackets denote a reduction) Increase Decrease Service cost and interest cost $ 13 $ (10 ) Projected benefit obligation 244 (186 ) |
Schedule of defined benefit pension plan assets | Defined Benefit Pension Plan Assets Basis of fair value measurement as of December 31 (in millions) 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Equities U.S. large cap (a) $ 884 $ 884 $ — $ — U.S. mid cap (b) 138 138 — — International (c) 349 349 — — Fixed income securities U.S. government securities (d) 149 21 128 — Corporate debt instruments (d) 372 112 260 — Non-U.S. government securities (d) 202 84 118 — Other (d) 320 318 2 — Absolute return funds (e) 296 4 292 — Real assets 9 9 — — Other (f) 132 132 — — Total $ 2,851 $ 2,051 $ 800 $ — Total assets measured at NAV 4,265 Fair value of plan assets $ 7,116 Basis of fair value measurement as of December 31 (in millions) 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Equities U.S. large cap (a) $ 719 $ 719 $ — $ — U.S. mid cap (b) 67 67 — — International (c) 226 226 — — Fixed income securities U.S. government securities (d) 140 21 119 — Corporate debt instruments (d) 385 123 262 — Non-U.S. government securities (d) 175 48 127 — Other (d) 232 225 7 — Absolute return funds (e) 261 3 258 — Real assets 7 7 — — Other (f) 147 147 — — Total $ 2,359 $ 1,586 $ 773 $ — Total assets measured at NAV 3,278 Fair value of plan assets $ 5,637 (a) A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. (b) A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. (c) A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. (d) Securities held by actively managed accounts, index funds and mutual funds. (e) Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. (f) Investments in cash and cash equivalents. |
Schedule of expected benefit payments | Expected Benefit Payments The following table summarizes total benefit payments expected to be paid to plan participants including payments funded from both plan and company assets: years ending December 31 (in millions) Defined benefit plans Other post-employment plans 2020 $ 221 $ 18 2021 235 21 2022 251 24 2023 268 26 2024 286 29 2025 to 2029 1,737 186 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of share-based compensation expense | Stock-based compensation expense is principally related to awards issued pursuant to the 2013 ISP and is summarized as follows: Years ended December 31, (in millions) 2019 2018 2017 Cost of products sold $ 29 $ 27 $ 23 Research and development 171 169 159 Selling, general and administrative 230 225 183 Pre-tax compensation expense 430 421 365 Tax benefit 80 73 73 After-tax compensation expense $ 350 $ 348 $ 292 |
Summary of AbbVie stock option activity | The following table summarizes AbbVie stock option activity in 2019 : (options in thousands, aggregate intrinsic value in millions) Options Weighted- average exercise price Weighted- average remaining life (in years) Aggregate intrinsic value Outstanding at December 31, 2018 6,143 $ 55.05 6.2 $ 242 Granted 1,002 79.02 Exercised (375 ) 23.72 Lapsed (9 ) 20.09 Outstanding at December 31, 2019 6,761 $ 60.39 5.9 $ 207 Exercisable at December 31, 2019 4,924 $ 51.90 4.9 $ 186 |
Summary of AbbVie RSA and RSU activity | The following table summarizes AbbVie RSU and performance share activity for 2019 : (share units in thousands) Share units Weighted-average grant date fair value Outstanding at December 31, 2018 9,868 $ 79.90 Granted 5,584 78.03 Vested (4,616 ) 71.30 Forfeited (604 ) 82.19 Outstanding at December 31, 2019 10,232 $ 81.72 |
Summary of quarterly cash dividends | The following table summarizes quarterly cash dividends declared during 2019 , 2018 and 2017 : 2019 2018 2017 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 11/01/19 02/14/20 $1.18 11/02/18 02/15/19 $1.07 10/27/17 02/15/18 $0.71 09/06/19 11/15/19 $1.07 09/07/18 11/15/18 $0.96 09/08/17 11/15/17 $0.64 06/20/19 08/15/19 $1.07 06/14/18 08/15/18 $0.96 06/22/17 08/15/17 $0.64 02/21/19 05/15/19 $1.07 02/15/18 05/15/18 $0.96 02/16/17 05/15/17 $0.64 |
Summary of changes in each component of accumulated other comprehensive loss, net of tax | The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for 2019 , 2018 and 2017 : (in millions) (brackets denote losses) Foreign currency translation adjustments Net investment hedging activities Pension and post- employment benefits Marketable security activities Cash flow hedging activities Total Balance as of December 31, 2016 $ (1,435 ) $ 140 $ (1,513 ) $ 46 $ 176 $ (2,586 ) Other comprehensive income (loss) before reclassifications 680 (343 ) (480 ) 29 (230 ) (344 ) Net losses (gains) reclassified from accumulated other comprehensive loss 316 — 74 (75 ) (112 ) 203 Net current-period other comprehensive income (loss) 996 (343 ) (406 ) (46 ) (342 ) (141 ) Balance as of December 31, 2017 (439 ) (203 ) (1,919 ) — (166 ) (2,727 ) Other comprehensive income (loss) before reclassifications (391 ) 138 84 (14 ) 156 (27 ) Net losses reclassified from accumulated other comprehensive loss — — 113 4 157 274 Net current-period other comprehensive income (loss) (391 ) 138 197 (10 ) 313 247 Balance as of December 31, 2018 (830 ) (65 ) (1,722 ) (10 ) 147 (2,480 ) Other comprehensive income (loss) before reclassifications (98 ) 95 (1,330 ) 12 298 (1,023 ) Net losses (gains) reclassified from accumulated other comprehensive loss — (21 ) 87 (2 ) (157 ) (93 ) Net current-period other comprehensive income (loss) (98 ) 74 (1,243 ) 10 141 (1,116 ) Balance as of December 31, 2019 $ (928 ) $ 9 $ (2,965 ) $ — $ 288 $ (3,596 ) |
Schedule of the impact of significant amounts reclassified out of each component of accumulated other comprehensive loss | The table below presents the impact on AbbVie's consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: years ended December 31 (in millions) (brackets denote gains) 2019 2018 2017 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ (27 ) $ — $ — Tax expense 6 — — Total reclassifications, net of tax $ (21 ) $ — $ — Pension and post-employment benefits Amortization of actuarial losses and other (b) $ 110 $ 141 $ 107 Tax benefit (23 ) (28 ) (33 ) Total reclassifications, net of tax $ 87 $ 113 $ 74 Cash flow hedging activities Losses (gains) on foreign currency forward exchange contracts (c) $ (167 ) $ 161 $ (118 ) Gains on treasury rate lock agreements and interest rate swap contracts (a) (4 ) — — Tax expense (benefit) 14 (4 ) 6 Total reclassifications, net of tax $ (157 ) $ 157 $ (112 ) (a) Amounts are included in interest expense, net (see Note 11 ). (b) Amounts are included in the computation of net periodic benefit cost (see Note 12 ). (c) Amounts are included in cost of products sold (see Note 11 ). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of earnings before income tax expense | Earnings Before Income Tax Expense years ended December 31 (in millions) 2019 2018 2017 Domestic $ (2,784 ) $ (4,274 ) $ (2,678 ) Foreign 11,210 9,471 10,405 Total earnings before income tax expense $ 8,426 $ 5,197 $ 7,727 |
Schedule of income tax expense | Income Tax Expense years ended December 31 (in millions) 2019 2018 2017 Current Domestic $ 102 $ 593 $ 6,204 Foreign 320 434 376 Total current taxes $ 422 $ 1,027 $ 6,580 Deferred Domestic $ (137 ) $ (1,497 ) $ (4,898 ) Foreign 259 (20 ) 736 Total deferred taxes $ 122 $ (1,517 ) $ (4,162 ) Total income tax expense (benefit) $ 544 $ (490 ) $ 2,418 |
Summary of effective tax rate reconciliation | Effective Tax Rate Reconciliation years ended December 31 2019 2018 2017 Statutory tax rate 21.0 % 21.0 % 35.0 % Effect of foreign operations (8.4 ) (28.7 ) (12.2 ) U.S. tax credits (3.3 ) (7.3 ) (4.0 ) Impacts related to U.S. tax reform (1.6 ) 8.2 12.0 Stock-based compensation excess tax benefit (0.2 ) (1.5 ) (0.9 ) Tax audit settlements (4.7 ) (2.5 ) (1.2 ) Deferred tax remeasurements due to change in tax rate 3.1 — — All other, net 0.6 1.4 2.6 Effective tax rate 6.5 % (9.4 )% 31.3 % |
Schedule of deferred tax assets and liabilities | Deferred Tax Assets and Liabilities as of December 31 (in millions) 2019 2018 Deferred tax assets Compensation and employee benefits $ 810 $ 529 Accruals and reserves 371 371 Chargebacks and rebates 477 417 Advance payments 615 867 Net operating losses and other credit carryforwards 838 228 Other 406 353 Total deferred tax assets 3,517 2,765 Valuation allowances (731 ) (103 ) Total net deferred tax assets 2,786 2,662 Deferred tax liabilities Excess of book basis over tax basis of intangible assets (2,712 ) (2,940 ) Excess of book basis over tax basis in investments (249 ) (211 ) Other (440 ) (250 ) Total deferred tax liabilities (3,401 ) (3,401 ) Net deferred tax liabilities $ (615 ) $ (739 ) |
Schedule of unrecognized tax benefits | Unrecognized Tax Benefits years ended December 31 (in millions) 2019 2018 2017 Beginning balance $ 2,852 $ 2,701 $ 1,168 Increase due to current year tax positions 113 163 1,768 Increase due to prior year tax positions 499 110 16 Decrease due to prior year tax positions (21 ) (36 ) (2 ) Settlements (749 ) (79 ) (233 ) Lapse of statutes of limitations (33 ) (7 ) (16 ) Ending balance $ 2,661 $ 2,852 $ 2,701 |
Segment and Geographic Area I_2
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of net revenues by product | The following tables detail AbbVie's worldwide net revenues: years ended December 31 (in millions) 2019 2018 2017 Immunology HUMIRA United States $ 14,864 $ 13,685 $ 12,361 International 4,305 6,251 6,066 Total $ 19,169 $ 19,936 $ 18,427 SKYRIZI United States $ 311 $ — $ — International 44 — — Total $ 355 $ — $ — RINVOQ United States $ 47 $ — $ — International — — — Total $ 47 $ — $ — Hematologic Oncology IMBRUVICA United States $ 3,830 $ 2,968 $ 2,144 Collaboration revenues 844 622 429 Total $ 4,674 $ 3,590 $ 2,573 VENCLEXTA United States $ 521 $ 247 $ 89 International 271 97 33 Total $ 792 $ 344 $ 122 HCV MAVYRET United States $ 1,473 $ 1,614 $ 277 International 1,420 1,824 213 Total $ 2,893 $ 3,438 $ 490 VIEKIRA United States $ — $ 3 $ 61 International 36 175 723 Total $ 36 $ 178 $ 784 Other Key Products Creon United States $ 1,041 $ 928 $ 831 Lupron United States $ 720 $ 726 $ 669 International 167 166 160 Total $ 887 $ 892 $ 829 Synthroid United States $ 786 $ 776 $ 781 Synagis International $ 718 $ 726 $ 738 Duodopa United States $ 97 $ 80 $ 61 International 364 350 294 Total $ 461 $ 430 $ 355 Sevoflurane United States $ 74 $ 74 $ 78 International 274 317 332 Total $ 348 $ 391 $ 410 Kaletra United States $ 38 $ 55 $ 71 International 245 281 352 Total $ 283 $ 336 $ 423 AndroGel United States $ 172 $ 469 $ 577 ORILISSA United States $ 91 $ 11 $ — International 2 — — Total $ 93 $ 11 $ — All other $ 511 $ 308 $ 876 Total net revenues $ 33,266 $ 32,753 $ 28,216 |
Schedule of net revenues to external customers by geographic area | Net revenues to external customers by geographic area, based on product shipment destination, were as follows: years ended December 31 (in millions) 2019 2018 2017 United States $ 23,907 $ 21,524 $ 18,251 Japan 1,211 1,591 764 Germany 909 1,292 1,157 Canada 813 730 659 France 695 783 730 Spain 472 611 521 United Kingdom 372 855 807 Italy 372 652 475 Brazil 359 350 410 The Netherlands 163 352 362 All other countries 3,993 4,013 4,080 Total net revenues $ 33,266 $ 32,753 $ 28,216 |
Schedule of long-lived assets by geographic area | Long-lived assets, primarily net property and equipment, by geographic area were as follows: as of December 31 (in millions) 2019 2018 United States and Puerto Rico $ 2,026 $ 1,993 Europe 646 599 All other 290 291 Total long-lived assets $ 2,962 $ 2,883 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (unaudited) | (in millions except per share data) 2019 2018 First Quarter Net revenues $ 7,828 $ 7,934 Gross margin 6,134 6,007 Net earnings (a) 2,456 2,783 Basic earnings per share $ 1.65 $ 1.74 Diluted earnings per share $ 1.65 $ 1.74 Cash dividends declared per common share $ 1.07 $ 0.96 Second Quarter Net revenues $ 8,255 $ 8,278 Gross margin 6,436 6,344 Net earnings (b) 741 1,983 Basic earnings per share $ 0.49 $ 1.26 Diluted earnings per share $ 0.49 $ 1.26 Cash dividends declared per common share $ 1.07 $ 0.96 Third Quarter Net revenues $ 8,479 $ 8,236 Gross margin 6,559 6,401 Net earnings (c) 1,884 2,747 Basic earnings per share $ 1.27 $ 1.81 Diluted earnings per share $ 1.26 $ 1.81 Cash dividends declared per common share $ 1.07 $ 0.96 Fourth Quarter Net revenues $ 8,704 $ 8,305 Gross margin 6,698 6,283 Net earnings (loss) (d) 2,801 (1,826 ) Basic earnings (loss) per share $ 1.88 $ (1.23 ) Diluted earnings (loss) per share $ 1.88 $ (1.23 ) Cash dividends declared per common share $ 1.18 $ 1.07 (a) First quarter results in 2019 included after-tax charges of $171 million related to the change in fair value of contingent consideration liabilities and restructuring charges of $133 million . First quarter results in 2018 included an after-tax benefit of $148 million related to the change in fair value of contingent consideration liabilities partially offset by after-tax litigation reserves charges of $100 million . (b) Second quarter results in 2019 included an after-tax charge of $2.3 billion related to the change in fair value of contingent consideration liabilities resulting from the April 2019 regulatory approvals of SKYRIZI for the treatment of moderate to severe plaque psoriasis. Second quarter results in 2018 included after-tax charges of $500 million as a result of a collaboration agreement extension with Calico and $485 million related to the change in fair value of contingent consideration liabilities. (c) Third quarter results in 2019 included after-tax charges of $912 million related to intangible asset impairment and $182 million related to the change in fair value of contingent consideration liabilities. Third quarter results in 2018 included after-tax litigation reserves charges of $176 million and $95 million related to the change in fair value of contingent consideration liabilities. (d) Fourth quarter results in 2019 included an after-tax charge of $438 million related to the change in fair value of contingent consideration liabilities offset by after-tax income of $435 million from a legal settlement related to an intellectual property dispute with a third party and $297 million from an amended and restated license agreement between AbbVie and Reata . Fourth quarter results in 2018 included an after-tax intangible asset impairment charge of $4.5 billion partially offset by an after-tax benefit of $375 million related to the change in fair value of contingent consideration liabilities. |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | Jan. 01, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of outstanding common stock distributed to Abbott shareholders | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Policies [Abstract] | ||||
Advertising expenses | $ 1,100 | $ 1,100 | $ 846 | |
Amortization period of differences between the expected and actual return on plan assets | 5 years | |||
Allowance for doubtful accounts | $ 46 | 51 | ||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Other assets | 2,288 | 1,208 | ||
Accounts payable and accrued liabilities | 11,832 | 11,931 | ||
Other long-term liabilities | $ 17,597 | $ 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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Finished goods | $ 485 | $ 473 |
Work-in-process | 942 | 862 |
Raw materials | 386 | 270 |
Inventories | $ 1,813 | $ 1,605 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment | |||
Property and equipment, gross | $ 8,188 | $ 8,396 | |
Less accumulated depreciation | (5,226) | (5,513) | |
Property and equipment, net | 2,962 | 2,883 | |
Depreciation expense | 464 | 471 | $ 425 |
Land | |||
Property and Equipment | |||
Property and equipment, gross | 72 | 73 | |
Equipment | |||
Property and Equipment | |||
Property and equipment, gross | $ 1,613 | 1,603 | |
Equipment | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 10 years | ||
Equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 50 years | ||
Equipment | |||
Property and Equipment | |||
Property and equipment, gross | $ 6,012 | 6,362 | |
Equipment | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 2 years | ||
Amortization period of software costs included in equipment | 3 years | ||
Equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 25 years | ||
Amortization period of software costs included in equipment | 10 years | ||
Construction in progress | |||
Property and Equipment | |||
Property and equipment, gross | $ 491 | $ 358 |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Expense, Net | |||
Interest expense | $ 1,784 | $ 1,348 | $ 1,150 |
Interest income | (275) | (204) | (146) |
Interest expense, net | 1,509 | 1,144 | $ 1,004 |
Accounts Payable and Accrued Liabilities | |||
Sales rebates | 4,484 | 3,939 | |
Dividends payable | 1,771 | 1,607 | |
Accounts payable | 1,452 | 1,546 | |
Salaries, wages and commissions | 830 | 787 | |
Royalty and license arrangements | 324 | 304 | |
Other | 2,971 | 3,748 | |
Accounts payable and accrued liabilities | 11,832 | 11,931 | |
Other Long-Term Liabilities | |||
Contingent consideration liabilities | 7,201 | 4,306 | |
Income taxes payable | 3,453 | 4,311 | |
Pension and other post-employment benefits | 2,949 | 1,840 | |
Liabilities for unrecognized tax benefits | 2,772 | 2,726 | |
Other | 1,222 | 1,307 | |
Other long-term liabilities | $ 17,597 | $ 14,490 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Basic EPS | |||||||||||||||||||
Net earnings | $ 2,801 | [1] | $ 1,884 | [2] | $ 741 | [3] | $ 2,456 | [4] | $ (1,826) | [1] | $ 2,747 | [2] | $ 1,983 | [3] | $ 2,783 | [4] | $ 7,882 | $ 5,687 | $ 5,309 |
Earnings allocated to participating securities | 40 | 30 | 26 | ||||||||||||||||
Earnings available to common shareholders | $ 7,842 | $ 5,657 | $ 5,283 | ||||||||||||||||
Weighted-average basic shares outstanding (in shares) | 1,481 | 1,541 | 1,596 | ||||||||||||||||
Basic earnings per share (in dollars per share) | $ 1.88 | $ 1.27 | $ 0.49 | $ 1.65 | $ (1.23) | $ 1.81 | $ 1.26 | $ 1.74 | $ 5.30 | $ 3.67 | $ 3.31 | ||||||||
Diluted EPS | |||||||||||||||||||
Net earnings | $ 2,801 | [1] | $ 1,884 | [2] | $ 741 | [3] | $ 2,456 | [4] | $ (1,826) | [1] | $ 2,747 | [2] | $ 1,983 | [3] | $ 2,783 | [4] | $ 7,882 | $ 5,687 | $ 5,309 |
Earnings allocated to participating securities | 40 | 30 | 26 | ||||||||||||||||
Earnings available to common shareholders | $ 7,842 | $ 5,657 | $ 5,283 | ||||||||||||||||
Weighted-average basic shares outstanding (in shares) | 1,481 | 1,541 | 1,596 | ||||||||||||||||
Effect of dilutive securities (in shares) | 3 | 5 | 7 | ||||||||||||||||
Weighted-average diluted shares outstanding (in shares) | 1,484 | 1,546 | 1,603 | ||||||||||||||||
Diluted earnings per share (in dollars per share) | $ 1.88 | $ 1.26 | $ 0.49 | $ 1.65 | $ (1.23) | $ 1.81 | $ 1.26 | $ 1.74 | $ 5.28 | $ 3.66 | $ 3.30 | ||||||||
[1] | Fourth quarter results in 2019 included an after-tax charge of $438 million related to the change in fair value of contingent consideration liabilities offset by after-tax income of $435 million from a legal settlement related to an intellectual property dispute with a third party and $297 million from an amended and restated license agreement between AbbVie and Reata . Fourth quarter results in 2018 included an after-tax intangible asset impairment charge of $4.5 billion partially offset by an after-tax benefit of $375 million related to the change in fair value of contingent consideration liabilities. | ||||||||||||||||||
[2] | Third quarter results in 2019 included after-tax charges of $912 million related to intangible asset impairment and $182 million related to the change in fair value of contingent consideration liabilities. Third quarter results in 2018 included after-tax litigation reserves charges of $176 million and $95 million related to the change in fair value of contingent consideration liabilities. | ||||||||||||||||||
[3] | Second quarter results in 2019 included an after-tax charge of $2.3 billion related to the change in fair value of contingent consideration liabilities resulting from the April 2019 regulatory approvals of SKYRIZI for the treatment of moderate to severe plaque psoriasis. Second quarter results in 2018 included after-tax charges of $500 million as a result of a collaboration agreement extension with Calico and $485 million related to the change in fair value of contingent consideration liabilities. | ||||||||||||||||||
[4] | First quarter results in 2019 included after-tax charges of $171 million related to the change in fair value of contingent consideration liabilities and restructuring charges of $133 million . First quarter results in 2018 included an after-tax benefit of $148 million related to the change in fair value of contingent consideration liabilities partially offset by after-tax litigation reserves charges of $100 million . |
Licensing, Acquisitions, and _2
Licensing, Acquisitions, and Other Arrangements - Proposed Acquisition of Allergan plc (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | ||
Mar. 31, 2020 | Jan. 01, 2020 | Jun. 24, 2019 | |
Business Acquisition | |||
Closing price of AbbVie's common stock | $ 78.45 | ||
Scenario, forecast | Allergan plc | |||
Business Acquisition | |||
Total consideration | $ 63 | ||
Shares of AbbVie stock received by Allergan shareholders | 0.8660 | ||
Cash per share received by Allergan shareholders | $ 120.30 |
Licensing, Acquisitions, and _3
Licensing, Acquisitions, and Other Arrangements - Other Licensing & Acquisitions Activity (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Cash outflows related to other acquisitions and investments | $ 1,135 | $ 736 | $ 308 | |||
Acquired in-process research and development | 385 | 424 | 327 | |||
Other operating expense (income) | 890 | (500) | 0 | |||
Collaborative arrangement | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Additional contribution to collaboration | $ 500 | |||||
Reata Pharmaceuticals Inc | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Other operating expense (income) | $ 330 | |||||
Calico Life Sciences LLC | Collaborative arrangement | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Additional contribution to collaboration by partner | $ 500 | |||||
Term by which the agreement was extended | 3 years | |||||
Other operating expense (income) | (500) | |||||
Alector, Inc. | Collaborative arrangement | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Acquired in-process research and development | 205 | |||||
Potential additional milestone payments | 986 | 986 | ||||
Other individually insignificant arrangements | Collaborative arrangement | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Acquired in-process research and development | 385 | $ 424 | $ 122 | |||
Other individually insignificant arrangements | Maximum | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Potential additional milestone payments | $ 5,800 | $ 5,800 | ||||
Other operating income | Reata Pharmaceuticals Inc | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | ||||||
Consideration receivable for reacquired rights | $ 330 |
Collaboration with Janssen Bi_3
Collaboration with Janssen Biotech, Inc. (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Accounts receivable, net | $ 5,428 | $ 5,384 | |
Accounts payable and accrued liabilities | $ 11,832 | 11,931 | |
Collaborative arrangement | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Share of collaboration development costs responsible by the entity | 40.00% | ||
Global - AbbVie's share of other costs (included in respective line items) | $ 321 | 326 | $ 288 |
Collaborative arrangement | International | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
International - AbbVie's share of profits (included in net revenues) | 844 | 622 | 429 |
Collaborative arrangement | Janssen Biotech, Inc | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
Milestone payments | $ 200 | ||
Share of collaboration development costs responsible by Janssen | 60.00% | ||
Accounts receivable, net | $ 235 | 177 | |
Accounts payable and accrued liabilities | 455 | 376 | |
Collaborative arrangement | Janssen Biotech, Inc | United States | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions | |||
United States - Janssen's share of profits (included in cost of products sold) | $ 1,803 | $ 1,372 | $ 1,001 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 15,663,000,000 | $ 15,785,000,000 |
Foreign currency translation | (59,000,000) | (122,000,000) |
Balance at the end of the period | 15,604,000,000 | $ 15,663,000,000 |
Accumulated goodwill impairment losses | ||
Accumulated goodwill impairment losses | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Definite-lived intangible assets | ||
Gross carrying amount | $ 27,345 | $ 23,737 |
Accumulated amortization | (8,696) | (7,424) |
Net carrying amount | 18,649 | 16,313 |
Indefinite-lived research and development | 0 | 4,920 |
Total intangible assets gross carrying amount | 27,345 | 28,657 |
Total intangible assets, net | 18,649 | 21,233 |
Developed product rights | ||
Definite-lived intangible assets | ||
Gross carrying amount | 19,547 | 15,872 |
Accumulated amortization | (6,405) | (5,614) |
Net carrying amount | 13,142 | 10,258 |
License agreements | ||
Definite-lived intangible assets | ||
Gross carrying amount | 7,798 | 7,865 |
Accumulated amortization | (2,291) | (1,810) |
Net carrying amount | $ 5,507 | $ 6,055 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Sep. 30, 2018 | |
Indefinite-lived intangible assets | |||||
Indefinite-lived research and development assets | $ 4,920,000,000 | $ 0 | |||
Indefinite-lived intangible assets impairment charges, pre-tax | $ 0 | ||||
In-Process Research and Development | Stemcentrx Inc. | |||||
Indefinite-lived intangible assets | |||||
Indefinite-lived research and development assets | 1,000,000,000 | $ 6,100,000,000 | |||
Indefinite-lived intangible assets impairment charges, pre-tax | $ 5,100,000,000 | $ 1,000,000,000 | |||
SKYRIZI | |||||
Indefinite-lived intangible assets | |||||
Reclassification from indefinite-lived intangible assets | $ (3,900,000,000) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Definite-lived intangible assets | |||
Amortization of intangible assets | $ 1,553,000,000 | $ 1,294,000,000 | $ 1,076,000,000 |
Definite-lived intangible assets impairment charges | 0 | $ 0 | $ 354,000,000 |
Anticipated annual amortization expense | |||
2020 | 1,800,000,000 | ||
2021 | 2,000,000,000 | ||
2022 | 2,300,000,000 | ||
2023 | 2,400,000,000 | ||
2024 | $ 2,500,000,000 | ||
Minimum | |||
Definite-lived intangible assets | |||
Amortization period | 2 years | ||
Maximum | |||
Definite-lived intangible assets | |||
Amortization period | 16 years | ||
Weighted Average | Developed product rights | |||
Definite-lived intangible assets | |||
Amortization period | 11 years | ||
Weighted Average | License agreements | |||
Definite-lived intangible assets | |||
Amortization period | 11 years |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring charges | |||
Restructuring charges | $ 219 | $ 59 | $ 86 |
Restructuring reserve | |||
Accrued balance beginning of the period | 99 | 86 | 87 |
Restructuring charges | 219 | 59 | 86 |
Payments and other adjustments | (178) | (46) | (87) |
Accrued balance end of the period | 140 | 99 | 86 |
Employee Severance | |||
Restructuring charges | |||
Restructuring charges | 234 | 70 | 86 |
Restructuring reserve | |||
Restructuring charges | $ 234 | $ 70 | $ 86 |
Leases - Balance Sheet Disclosu
Leases - Balance Sheet Disclosure (Details) $ in Millions | Dec. 31, 2019USD ($) | |
Assets | ||
Total lease assets | $ 367 | |
Liabilities | ||
Total lease liabilities | 387 | [1],[2] |
Other assets | ||
Assets | ||
Operating lease assets | 344 | |
Property and equipment, net | ||
Assets | ||
Finance lease assets | 23 | |
Accounts payable and accrued liabilities | ||
Liabilities | ||
Current operating lease liabilities | 109 | |
Other long-term liabilities | ||
Liabilities | ||
Noncurrent operating lease liabilities | 251 | |
Current portion of long-term debt and finance lease obligations | ||
Liabilities | ||
Current finance lease liabilities | 7 | |
Long-term debt and finance lease obligations | ||
Liabilities | ||
Noncurrent finance lease liabilities | $ 20 | |
[1] | Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant. | |
[2] | Total lease payments exclude approximately $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence in 2020 with lease terms of approximately 11 years . |
Leases - Cost (Details)
Leases - Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 124 | ||
Short-term lease cost | 34 | ||
Variable lease cost | 62 | ||
Total lease cost | $ 220 | ||
Operating Leases, Rent Expense, Net | $ 161 | $ 169 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term for operating leases | 5 years |
Weighted-average remaining lease term for finance leases | 3 years |
Weighted-average discount rate for operating leases | 3.90% |
Weighted-average discount rate for finance leases | 3.90% |
Leases - Cash Flow Disclosure (
Leases - Cash Flow Disclosure (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 125 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 26 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Operating leases | ||
2020 | $ 119 | |
2021 | 104 | |
2022 | 59 | |
2023 | 38 | |
2024 | 22 | |
Thereafter | 58 | |
Total lease payments | 400 | |
Less: Interest | 40 | |
Present value of lease liabilities | 360 | |
Finance leases | ||
2020 | 10 | |
2021 | 9 | |
2022 | 8 | |
2023 | 1 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 28 | |
Less: Interest | 1 | |
Present value of lease liabilities | 27 | |
Total | ||
2020 | 129 | [1],[2] |
2021 | 113 | [1],[2] |
2022 | 67 | [1],[2] |
2023 | 39 | [1],[2] |
2024 | 22 | [1],[2] |
Thereafter | 58 | [1],[2] |
Total lease payments | 428 | [1],[2] |
Less: Interest | 41 | [1],[2] |
Present value of lease liabilities | 387 | [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 $350 million of contractual minimum lease payments for leases executed but not yet commenced. These leases will commence in 2020 with lease terms of approximately 11 years . |
Debt, Credit Facilities, and _3
Debt, Credit Facilities, and Commitments and Contingencies - Summary of Long-Term Debt (Details) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($) | Oct. 31, 2019 | Sep. 30, 2019EUR (€) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Nov. 30, 2016EUR (€) | May 31, 2016 | May 31, 2015 | Nov. 30, 2012 | |
Long-term debt | |||||||||||
Fair value hedges | $ (48,000,000) | $ (466,000,000) | |||||||||
Unamortized bond discounts | (161,000,000) | (120,000,000) | |||||||||
Unamortized deferred financing costs | (323,000,000) | (163,000,000) | |||||||||
Total long-term debt and finance lease obligations | 66,728,000,000 | 36,611,000,000 | |||||||||
Current portion | 3,753,000,000 | 1,609,000,000 | |||||||||
Noncurrent portion | 62,975,000,000 | 35,002,000,000 | |||||||||
Other | |||||||||||
Long-term debt | |||||||||||
Long-term debt and lease obligations, gross | $ 27,000,000 | $ 36,000,000 | |||||||||
Senior notes | 2.90% notes due 2022 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.97% | 2.97% | ||||||||
Long-term debt and lease obligations, gross | $ 3,100,000,000 | $ 3,100,000,000 | |||||||||
Stated interest rate (as a percent) | 2.90% | ||||||||||
Senior notes | 4.40% notes due 2042 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.46% | 4.46% | ||||||||
Long-term debt and lease obligations, gross | $ 2,600,000,000 | $ 2,600,000,000 | |||||||||
Stated interest rate (as a percent) | 4.40% | ||||||||||
Senior notes | 2.50% notes due 2020 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.65% | 2.65% | ||||||||
Long-term debt and lease obligations, gross | $ 3,750,000,000 | $ 3,750,000,000 | |||||||||
Stated interest rate (as a percent) | 2.50% | ||||||||||
Senior notes | 3.20% notes due 2022 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.28% | 3.28% | ||||||||
Long-term debt and lease obligations, gross | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||
Stated interest rate (as a percent) | 3.20% | ||||||||||
Senior notes | 3.60% notes due 2025 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.66% | 3.66% | ||||||||
Long-term debt and lease obligations, gross | $ 3,750,000,000 | $ 3,750,000,000 | |||||||||
Stated interest rate (as a percent) | 3.60% | ||||||||||
Senior notes | 4.50% notes due 2035 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.58% | 4.58% | ||||||||
Long-term debt and lease obligations, gross | $ 2,500,000,000 | $ 2,500,000,000 | |||||||||
Stated interest rate (as a percent) | 4.50% | ||||||||||
Senior notes | 4.70% notes due 2045 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.73% | 4.73% | ||||||||
Long-term debt and lease obligations, gross | $ 2,700,000,000 | $ 2,700,000,000 | |||||||||
Stated interest rate (as a percent) | 4.70% | ||||||||||
Senior notes | 2.30% notes due 2021 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.40% | 2.40% | ||||||||
Long-term debt and lease obligations, gross | $ 1,800,000,000 | $ 1,800,000,000 | |||||||||
Stated interest rate (as a percent) | 2.30% | ||||||||||
Senior notes | 2.85% notes due 2023 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.91% | 2.91% | ||||||||
Long-term debt and lease obligations, gross | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||
Stated interest rate (as a percent) | 2.85% | ||||||||||
Senior notes | 3.20% notes due 2026 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.28% | 3.28% | ||||||||
Long-term debt and lease obligations, gross | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||
Stated interest rate (as a percent) | 3.20% | ||||||||||
Senior notes | 4.30% notes due 2036 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.37% | 4.37% | ||||||||
Long-term debt and lease obligations, gross | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||
Stated interest rate (as a percent) | 4.30% | ||||||||||
Senior notes | 4.45% notes due 2046 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.50% | 4.50% | ||||||||
Long-term debt and lease obligations, gross | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||
Stated interest rate (as a percent) | 4.45% | ||||||||||
Senior notes | 0.375% notes due 2019 (€1,400 principal) | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 0.55% | 0.55% | ||||||||
Long-term debt and lease obligations, gross | $ 0 | $ 1,604,000,000 | |||||||||
Stated interest rate (as a percent) | 0.375% | 0.375% | |||||||||
Aggregate principal amount of debt | € | € 1,400,000,000 | ||||||||||
Senior notes | 1.375% notes due 2024 (€1,450 principal) | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 1.46% | 1.46% | ||||||||
Long-term debt and lease obligations, gross | $ 1,625,000,000 | $ 1,661,000,000 | |||||||||
Stated interest rate (as a percent) | 1.375% | ||||||||||
Aggregate principal amount of debt | € | € 1,450,000,000 | ||||||||||
Senior notes | 2.125% notes due 2028 (€750 principal) | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.18% | 2.18% | ||||||||
Long-term debt and lease obligations, gross | $ 840,000,000 | $ 859,000,000 | |||||||||
Stated interest rate (as a percent) | 2.125% | ||||||||||
Aggregate principal amount of debt | € | € 750,000,000 | ||||||||||
Senior notes | 3.375% notes due 2021 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.51% | 3.51% | ||||||||
Long-term debt and lease obligations, gross | $ 1,250,000,000 | $ 1,250,000,000 | |||||||||
Stated interest rate (as a percent) | 3.375% | ||||||||||
Aggregate principal amount of debt | $ 1,250,000,000 | ||||||||||
Senior notes | 3.75% notes due 2023 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.84% | 3.84% | ||||||||
Long-term debt and lease obligations, gross | $ 1,250,000,000 | $ 1,250,000,000 | |||||||||
Stated interest rate (as a percent) | 3.75% | ||||||||||
Aggregate principal amount of debt | $ 1,250,000,000 | ||||||||||
Senior notes | 4.25% notes due 2028 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.38% | 4.38% | ||||||||
Long-term debt and lease obligations, gross | $ 1,750,000,000 | $ 1,750,000,000 | |||||||||
Stated interest rate (as a percent) | 4.25% | ||||||||||
Aggregate principal amount of debt | $ 1,750,000,000 | ||||||||||
Senior notes | 4.875% notes due 2048 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.94% | 4.94% | ||||||||
Long-term debt and lease obligations, gross | $ 1,750,000,000 | $ 1,750,000,000 | |||||||||
Stated interest rate (as a percent) | 4.875% | ||||||||||
Aggregate principal amount of debt | $ 1,750,000,000 | ||||||||||
Senior notes | 0.75% notes due 2027 (€750 principal) | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 0.86% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 840,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 0.75% | ||||||||||
Aggregate principal amount of debt | € | € 750,000,000 | ||||||||||
Senior notes | 1.25% notes due 2031 (€650 principal) | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 1.30% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 728,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 1.25% | ||||||||||
Aggregate principal amount of debt | € | € 650,000,000 | ||||||||||
Senior notes | Floating rate notes due May 2021 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.08% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 750,000,000 | $ 0 | |||||||||
Aggregate principal amount of debt | $ 750,000,000 | ||||||||||
Senior notes | Floating rate notes due November 2021 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.12% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 750,000,000 | $ 0 | |||||||||
Aggregate principal amount of debt | 750,000,000 | ||||||||||
Senior notes | Floating rate notes due 2022 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.29% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 750,000,000 | $ 0 | |||||||||
Aggregate principal amount of debt | $ 750,000,000 | ||||||||||
Senior notes | 2.15% notes due 2021 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.23% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 1,750,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 2.15% | ||||||||||
Aggregate principal amount of debt | $ 1,750,000,000 | ||||||||||
Senior notes | 2.30% notes due 2022 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.42% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 3,000,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 2.30% | ||||||||||
Aggregate principal amount of debt | $ 3,000,000,000 | ||||||||||
Senior notes | 2.60% notes due 2024 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 2.69% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 3,750,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 2.60% | ||||||||||
Aggregate principal amount of debt | $ 3,750,000,000 | ||||||||||
Senior notes | 2.95% notes due 2026 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.02% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 4,000,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 2.95% | ||||||||||
Aggregate principal amount of debt | $ 4,000,000,000 | ||||||||||
Senior notes | 3.20% notes due 2029 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 3.25% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 5,500,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 3.20% | ||||||||||
Aggregate principal amount of debt | $ 5,500,000,000 | ||||||||||
Senior notes | 4.05% notes due 2039 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.11% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 4,000,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 4.05% | ||||||||||
Aggregate principal amount of debt | $ 4,000,000,000 | ||||||||||
Senior notes | 4.25% notes due 2049 | |||||||||||
Long-term debt | |||||||||||
Weighted-average effective interest rate | [1] | 4.29% | 0.00% | ||||||||
Long-term debt and lease obligations, gross | $ 5,750,000,000 | $ 0 | |||||||||
Stated interest rate (as a percent) | 4.25% | ||||||||||
Aggregate principal amount of debt | $ 5,750,000,000 | ||||||||||
[1] | Excludes the effect of any related interest rate swaps. |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measures - Financial Instruments (Details) £ in Millions, SFr in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019USD ($)company | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€)company | Dec. 31, 2019CHF (SFr)company | Dec. 31, 2019GBP (£)company | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | |
Derivative instruments, notional amount and fair value | ||||||||
Number of outstanding derivative instruments containing credit risk contingent features | company | 0 | 0 | 0 | 0 | ||||
Fair value - Derivatives in asset position | $ 53 | $ 132 | ||||||
Fair value - Derivatives in liability position | 132 | 492 | ||||||
Senior notes | September 2019 senior Euro notes | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Aggregate principal amount of senior Euro notes | € | € 1,400,000,000 | |||||||
Designated as hedging instrument | Net investment hedges | Senior notes | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Aggregate principal amount of senior Euro notes | € | € 3,600,000,000 | |||||||
Designated as hedging instrument | Net investment hedges | Senior notes | September 2019 senior Euro notes | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Aggregate principal amount of senior Euro notes | € | 1,400,000,000 | |||||||
Designated as hedging instrument | Net investment hedges | Senior notes | Senior Euro notes | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Aggregate principal amount of senior Euro notes | € | 1,400,000,000 | |||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Treasury rate lock gain recognized in other comprehensive income (loss) | (5) | 175 | $ (250) | |||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Notional amount of derivative instruments | $ 957 | 1,400 | ||||||
Duration of forward exchange contracts | 18 months | |||||||
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 | ||||||||
Fair value - Derivatives in asset position | $ 3 | 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 | ||||||||
Fair value - Derivatives in liability position | 14 | 0 | ||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Notional amount of derivative instruments | € 971,000,000 | SFr 62 | £ 204 | |||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | Prepaid expenses and other | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in asset position | 0 | 0 | ||||||
Designated as hedging instrument | Foreign currency forward exchange contracts | Net investment hedges | Accounts payable and accrued liabilities | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in liability position | 24 | 0 | ||||||
Designated as hedging instrument | Treasury rate lock agreements | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Treasury rate lock gain recognized in other comprehensive income (loss) | 383 | 0 | 0 | |||||
Designated as hedging instrument | Treasury rate lock agreements | Cash flow hedges | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Notional amount of derivative instruments | $ 10,000 | |||||||
Designated as hedging instrument | Interest rate swap contracts | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Treasury rate lock gain recognized in other comprehensive income (loss) | 4 | 0 | $ 0 | |||||
Designated as hedging instrument | Interest rate swap contracts | Cash flow hedges | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Notional amount of derivative instruments | 2,300 | |||||||
Designated as hedging instrument | Interest rate swap contracts | Cash flow hedges | Other assets | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in asset position | 3 | 0 | ||||||
Designated as hedging instrument | Interest rate swap contracts | Cash flow hedges | Other long-term liabilities | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in liability position | 0 | 0 | ||||||
Designated as hedging instrument | Interest rate swap 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 swap contracts | Fair value hedges | Prepaid expenses and other | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in asset position | 0 | 0 | ||||||
Designated as hedging instrument | Interest rate swap contracts | Fair value hedges | Accounts payable and accrued liabilities | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in liability position | 2 | 0 | ||||||
Designated as hedging instrument | Interest rate swap contracts | Fair value hedges | Other assets | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in asset position | 28 | 0 | ||||||
Designated as hedging instrument | Interest rate swap contracts | Fair value hedges | Other long-term liabilities | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in liability position | 74 | 466 | ||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Notional amount of derivative instruments | 7,100 | 8,600 | ||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in asset position | 19 | 19 | ||||||
Not designated as hedging instrument | Foreign currency forward exchange contracts | Accounts payable and accrued liabilities | ||||||||
Derivative instruments, notional amount and fair value | ||||||||
Fair value - Derivatives in liability position | $ 18 | $ 26 |
Debt, Credit Facilities, and _4
Debt, Credit Facilities, and Commitments and Contingencies - Long-Term Debt - Additional Information (Details) | Jul. 12, 2019USD ($) | Jun. 25, 2019USD ($) | Nov. 30, 2019USD ($) | Oct. 31, 2019EUR (€) | Sep. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | May 31, 2018USD ($) | Nov. 30, 2016EUR (€) | May 31, 2016 | Sep. 30, 2015 | May 31, 2015 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 01, 2020USD ($) | Dec. 31, 2019EUR (€) | Oct. 25, 2019USD ($) | Oct. 25, 2019EUR (€) | Sep. 30, 2019EUR (€) | Aug. 31, 2019USD ($) | Nov. 30, 2012 |
Long-term debt | ||||||||||||||||||||||
Bridge credit agreement maximum borrowing capacity | $ 4,000,000,000 | |||||||||||||||||||||
Repayments of long-term debt | $ 1,536,000,000 | $ 6,035,000,000 | $ 25,000,000 | |||||||||||||||||||
Aggregate principal amount outstanding | 66,728,000,000 | $ 36,611,000,000 | ||||||||||||||||||||
Senior notes | Senior notes issued in 2019 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 30,000,000,000 | |||||||||||||||||||||
Debt issuance costs incurred | 173,000,000 | |||||||||||||||||||||
Debt discounts | $ 52,000,000 | |||||||||||||||||||||
Special mandatory redemption price pending the proposed acquisition | 101.00% | |||||||||||||||||||||
Senior notes | Floating rate notes due May 2021 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 750,000,000 | |||||||||||||||||||||
Senior notes | Floating rate notes due November 2021 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | 750,000,000 | |||||||||||||||||||||
Senior notes | Floating rate notes due 2022 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | 750,000,000 | |||||||||||||||||||||
Senior notes | 2.15% notes due 2021 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 1,750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 2.15% | |||||||||||||||||||||
Senior notes | 2.30% notes due 2022 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 3,000,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 2.30% | |||||||||||||||||||||
Senior notes | 2.60% notes due 2024 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 3,750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 2.60% | |||||||||||||||||||||
Senior notes | 2.95% notes due 2026 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 4,000,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 2.95% | |||||||||||||||||||||
Senior notes | 3.20% notes due 2029 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 5,500,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 3.20% | |||||||||||||||||||||
Senior notes | 4.05% notes due 2039 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 4,000,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 4.05% | |||||||||||||||||||||
Senior notes | 4.25% notes due 2049 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 5,750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 4.25% | |||||||||||||||||||||
Senior notes | Senior notes issued in 2019 excluding fixed-rate notes due in 2021 and 2022 | Minimum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 1 month | |||||||||||||||||||||
Senior notes | Senior notes issued in 2019 excluding fixed-rate notes due in 2021 and 2022 | Maximum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 6 months | |||||||||||||||||||||
Senior notes | Allergan Notes | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Principal amount of borrowings | $ 15,500,000,000 | |||||||||||||||||||||
Senior notes | Allergan Euro Notes | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Principal amount of borrowings | € | € 3,700,000,000 | |||||||||||||||||||||
Senior notes | September 2019 senior Euro notes | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | € | € 1,400,000,000 | |||||||||||||||||||||
Debt issuance costs incurred | $ 9,000,000 | |||||||||||||||||||||
Debt discounts | $ 5,000,000 | |||||||||||||||||||||
Senior notes | September 2019 senior Euro notes | Minimum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 1 month | |||||||||||||||||||||
Senior notes | September 2019 senior Euro notes | Maximum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 3 months | |||||||||||||||||||||
Senior notes | 0.75% notes due 2027 (€750 principal) | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | € | € 750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 0.75% | 0.75% | ||||||||||||||||||||
Senior notes | 1.25% notes due 2031 (€650 principal) | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | € | € 650,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 1.25% | 1.25% | ||||||||||||||||||||
Senior notes | 0.375% notes due 2019 (€1,400 principal) | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | € | € 1,400,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 0.375% | 0.375% | ||||||||||||||||||||
Repayments of long-term debt | € | € 1,400,000,000 | |||||||||||||||||||||
Senior notes | Senior notes issued in 2018 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 6,000,000,000 | |||||||||||||||||||||
Debt issuance costs incurred | 37,000,000 | |||||||||||||||||||||
Debt discounts | 37,000,000 | |||||||||||||||||||||
Senior notes net issuance proceeds | $ 5,900,000,000 | |||||||||||||||||||||
Senior notes | Senior notes issued in 2018 | Minimum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 1 month | |||||||||||||||||||||
Senior notes | Senior notes issued in 2018 | Maximum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 6 months | |||||||||||||||||||||
Senior notes | 3.375% notes due 2021 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 1,250,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 3.375% | |||||||||||||||||||||
Senior notes | 3.75% notes due 2023 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 1,250,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 3.75% | |||||||||||||||||||||
Senior notes | 4.25% notes due 2028 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 1,750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 4.25% | |||||||||||||||||||||
Senior notes | 4.875% notes due 2048 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount of debt | $ 1,750,000,000 | |||||||||||||||||||||
Stated interest rate (as a percent) | 4.875% | |||||||||||||||||||||
Senior notes | 2.00% notes due 2018 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Stated interest rate (as a percent) | 2.00% | |||||||||||||||||||||
Repayments of long-term debt | $ 1,000,000,000 | |||||||||||||||||||||
Senior notes | 1.80% notes due 2018 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Stated interest rate (as a percent) | 1.80% | |||||||||||||||||||||
Repayments of long-term debt | $ 3,000,000,000 | |||||||||||||||||||||
Senior notes | Senior Euro notes | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount outstanding | € | € 2,200,000,000 | |||||||||||||||||||||
Senior notes | Senior Euro notes | Minimum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 1 month | |||||||||||||||||||||
Senior notes | Senior Euro notes | Maximum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 3 months | |||||||||||||||||||||
Senior notes | Senior notes issued in 2016 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount outstanding | 7,800,000,000 | |||||||||||||||||||||
Senior notes | Senior notes issued in 2016 | Minimum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 1 month | |||||||||||||||||||||
Senior notes | Senior notes issued in 2016 | Maximum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 6 months | |||||||||||||||||||||
Senior notes | Senior notes issued in 2015 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount outstanding | 13,700,000,000 | |||||||||||||||||||||
Senior notes | Senior notes issued in 2015 | Minimum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 1 month | |||||||||||||||||||||
Senior notes | Senior notes issued in 2015 | Maximum | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Senior note redemption period prior to maturity | 6 months | |||||||||||||||||||||
Senior notes | Senior notes issued in 2012 | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Aggregate principal amount outstanding | 5,700,000,000 | |||||||||||||||||||||
Term loan facilities | July 2019 term loan agreement | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Debt issuance costs incurred | $ 242,000,000 | |||||||||||||||||||||
Principal amount of borrowings | $ 6,000,000,000 | |||||||||||||||||||||
Amount drawn under credit agreement | 0 | |||||||||||||||||||||
Term loan facilities | July 2019 three-year term loan tranche | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Term loan credit agreement term | 3 years | |||||||||||||||||||||
Principal amount of borrowings | $ 2,500,000,000 | |||||||||||||||||||||
Term loan facilities | July 2019 five-year term loan tranche | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Term loan credit agreement term | 5 years | |||||||||||||||||||||
Principal amount of borrowings | $ 2,000,000,000 | |||||||||||||||||||||
Term loan facilities | September 2015 term loan agreement | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Term loan credit agreement term | 3 years | |||||||||||||||||||||
Repayments of long-term debt | $ 2,000,000,000 | |||||||||||||||||||||
Bridge credit agreement | June 2019 bridge credit agreement | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Bridge credit agreement maximum borrowing capacity | $ 38,000,000,000 | $ 2,000,000,000 | ||||||||||||||||||||
Term loan credit agreement term | 364 days | |||||||||||||||||||||
Amount drawn under credit agreement | $ 0 | |||||||||||||||||||||
Term loan facilities | July 2019 364-day term loan tranche | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Term loan credit agreement term | 364 days | |||||||||||||||||||||
Principal amount of borrowings | $ 1,500,000,000 | |||||||||||||||||||||
Subsequent event | Bridge credit agreement | June 2019 bridge credit agreement | ||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||
Bridge credit agreement maximum borrowing capacity | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measures - Amount of Gain/(Loss) Recognized For Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of products sold | |||
Gain (loss) on derivatives | |||
Pre-tax losses to be transferred into cost of products sold for foreign currency cash flow hedges during the next 12 months | $ (10) | ||
Interest expense, net | |||
Gain (loss) on derivatives | |||
Pre-tax gains to be transferred into interest expense, net for interest rate swap cash flow hedges during the next 12 months | 7 | ||
Pre-tax gains to be transferred into interest expense, net for treasury rate lock agreement cash flow hedges during the next 12 months | 24 | ||
Designated as hedging instrument | Senior notes | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from net investment hedges recognized in other comprehensive income | 90 | $ (178) | $ 537 |
Designated as hedging instrument | Interest expense, net | Senior notes | Fair value hedges | |||
Gain (loss) on derivatives | |||
Debt designated as hedged item in fair value hedges gains (losses) recognized in the consolidated statements of earnings | (418) | 71 | 63 |
Foreign currency forward exchange contracts | Designated as hedging instrument | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | (5) | 175 | (250) |
Pre-tax gains (losses) from net investment hedges recognized in other comprehensive income | 33 | 0 | 0 |
Foreign currency forward exchange contracts | Designated as hedging instrument | Cost of products sold | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | 167 | (161) | 118 |
Foreign currency forward exchange contracts | Designated as hedging instrument | Interest expense, net | Net investment hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | 27 | 0 | 0 |
Foreign currency forward exchange contracts | Not designated as hedges | Net foreign exchange loss | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | (70) | 83 | (96) |
Interest rate swap contracts | Designated as hedging instrument | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | 4 | 0 | 0 |
Interest rate swap contracts | Designated as hedging instrument | Interest expense, net | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | 1 | 0 | 0 |
Interest rate swap contracts | Designated as hedging instrument | Interest expense, net | Fair value hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | 418 | (71) | (63) |
Treasury rate lock agreements | Designated as hedging instrument | |||
Gain (loss) on derivatives | |||
Pre-tax gains (losses) from cash flow hedges recognized in other comprehensive income | 383 | 0 | 0 |
Treasury rate lock agreements | Designated as hedging instrument | Interest expense, net | Cash flow hedges | |||
Gain (loss) on derivatives | |||
Derivative instrument net gains (losses) recognized in the consolidated statements of earnings | $ 3 | $ 0 | $ 0 |
Debt, Credit Facilities, and _5
Debt, Credit Facilities, and Commitments and Contingencies - Short-Term Borrowings (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019 | Mar. 31, 2019 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term borrowings | ||||||
Short-term borrowings | $ 0 | $ 3,699,000,000 | ||||
Revolving credit facility, maximum borrowing capacity | $ 4,000,000,000 | |||||
Repayments of other short-term borrowings | 3,000,000,000 | 0 | $ 0 | |||
Revolving credit facility | ||||||
Short-term borrowings | ||||||
Revolving credit facility term | 5 years | |||||
Revolving credit facility outstanding | 0 | 0 | ||||
Commercial Paper | ||||||
Short-term borrowings | ||||||
Short-term borrowings | $ 0 | $ 699,000,000 | ||||
Weighted-average interest rate on commercial paper (as a percent) | 2.50% | 2.00% | 1.30% | |||
May 2018 term loan credit agreement | Term loan facilities | ||||||
Short-term borrowings | ||||||
Repayments of other short-term borrowings | $ 3,000,000,000 | |||||
Term loan credit agreement term | 364 days |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measures - Fair Value Measures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | ||||||
Foreign currency contracts | $ 132 | $ 53 | $ 132 | |||
Liabilities | ||||||
Foreign currency contracts | 492 | 132 | 492 | |||
Change in fair value recognized in net earnings | $ (3,091) | (49) | $ (626) | |||
Stemcentrx Inc. | ||||||
Liabilities | ||||||
Change in fair value recognized in net earnings | $ 91 | (428) | ||||
SKYRIZI | ||||||
Liabilities | ||||||
Change in fair value recognized in net earnings | $ (2,300) | |||||
Change in assumed discount rate | Changes Measurement | ||||||
Liabilities | ||||||
Discount rate change | 50.00% | |||||
Contingent consideration liability change | $ 280 | |||||
Change in assumed probability rate | Changes Measurement | ||||||
Liabilities | ||||||
Contingent consideration liability change | $ 150 | |||||
Assumed probability rate change | 5.00% | |||||
Recurring | ||||||
Assets | ||||||
Cash and equivalents | 7,289 | $ 39,924 | 7,289 | |||
Debt securities | 1,536 | 3 | 1,536 | |||
Equity securities | 24 | |||||
Interest rate swap contracts | 31 | |||||
Equity securities | 4 | 4 | ||||
Total assets | 9,529 | 40,004 | 9,529 | |||
Liabilities | ||||||
Interest rate swap contracts | 466 | 76 | 466 | |||
Contingent consideration | 4,483 | 7,340 | 4,483 | |||
Total liabilities | 4,975 | 7,472 | 4,975 | |||
Recurring | Time deposits | ||||||
Assets | ||||||
Time deposits | 568 | 568 | ||||
Recurring | Foreign currency contracts | ||||||
Assets | ||||||
Foreign currency contracts | 132 | 22 | 132 | |||
Liabilities | ||||||
Foreign currency contracts | 26 | 56 | 26 | |||
Recurring | Quoted prices in active markets for identical assets (Level 1) | ||||||
Assets | ||||||
Cash and equivalents | 1,209 | 1,542 | 1,209 | |||
Debt securities | 0 | 0 | 0 | |||
Equity securities | 24 | |||||
Interest rate swap contracts | 0 | |||||
Equity securities | 4 | 4 | ||||
Total assets | 1,213 | 1,566 | 1,213 | |||
Liabilities | ||||||
Interest rate swap contracts | 0 | 0 | 0 | |||
Contingent consideration | 0 | 0 | 0 | |||
Total liabilities | 0 | 0 | 0 | |||
Recurring | Quoted prices in active markets for identical assets (Level 1) | Time deposits | ||||||
Assets | ||||||
Time deposits | 0 | 0 | ||||
Recurring | Quoted prices in active markets for identical assets (Level 1) | Foreign currency contracts | ||||||
Assets | ||||||
Foreign currency contracts | 0 | 0 | 0 | |||
Liabilities | ||||||
Foreign currency contracts | 0 | 0 | 0 | |||
Recurring | Significant other observable inputs (Level 2) | ||||||
Assets | ||||||
Cash and equivalents | 6,080 | 38,382 | 6,080 | |||
Debt securities | 1,536 | 3 | 1,536 | |||
Equity securities | 0 | |||||
Interest rate swap contracts | 31 | |||||
Equity securities | 0 | 0 | ||||
Total assets | 8,316 | 38,438 | 8,316 | |||
Liabilities | ||||||
Interest rate swap contracts | 466 | 76 | 466 | |||
Contingent consideration | 0 | 0 | 0 | |||
Total liabilities | 492 | 132 | 492 | |||
Recurring | Significant other observable inputs (Level 2) | Time deposits | ||||||
Assets | ||||||
Time deposits | 568 | 568 | ||||
Recurring | Significant other observable inputs (Level 2) | Foreign currency contracts | ||||||
Assets | ||||||
Foreign currency contracts | 132 | 22 | 132 | |||
Liabilities | ||||||
Foreign currency contracts | 26 | 56 | 26 | |||
Recurring | Significant unobservable Inputs (Level 3) | ||||||
Assets | ||||||
Cash and equivalents | 0 | 0 | 0 | |||
Debt securities | 0 | 0 | 0 | |||
Equity securities | 0 | |||||
Interest rate swap contracts | 0 | |||||
Equity securities | 0 | 0 | ||||
Total assets | 0 | 0 | 0 | |||
Liabilities | ||||||
Interest rate swap contracts | 0 | 0 | 0 | |||
Contingent consideration | 4,483 | 7,340 | 4,483 | |||
Total liabilities | 4,483 | 7,340 | 4,483 | |||
Recurring | Significant unobservable Inputs (Level 3) | Time deposits | ||||||
Assets | ||||||
Time deposits | 0 | 0 | ||||
Recurring | Significant unobservable Inputs (Level 3) | Foreign currency contracts | ||||||
Assets | ||||||
Foreign currency contracts | 0 | 0 | 0 | |||
Liabilities | ||||||
Foreign currency contracts | $ 0 | $ 0 | $ 0 |
Debt, Credit Facilities, and _6
Debt, Credit Facilities, and Commitments and Contingencies - Summary of Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | $ 3,750 | |
2021 | 6,300 | |
2022 | 7,850 | |
2023 | 2,250 | |
2024 | 5,375 | |
Thereafter | 41,708 | |
Total obligations and commitments | 67,233 | |
Fair value hedges, unamortized bond discounts, deferred financing costs and finance lease obligations | (505) | |
Total long-term debt and finance lease obligations | $ 66,728 | $ 36,611 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measures - Transfer of Assets or Liabilities Between The Fair Value Measurement Levels (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Transfers Between Level 1 and Level 2 | |||
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 | ||
Change in fair value of liabilities measured using level 3 inputs | |||
Beginning balance | 4,483,000,000 | $ 4,534,000,000 | $ 4,213,000,000 |
Change in fair value recognized in net earnings | (3,091,000,000) | (49,000,000) | (626,000,000) |
Payments | (234,000,000) | (100,000,000) | (305,000,000) |
Ending balance | $ 7,340,000,000 | $ 4,483,000,000 | $ 4,534,000,000 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measures - Bases Used to Measure The Approximate Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | ||
Carrying amount of investments in equity securities that do not have readily determinable fair values | $ 66 | $ 84 |
Book value | ||
Liabilities | ||
Short-term borrowings | 3,699 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 3,755 | 1,609 |
Long-term debt and finance lease obligations, excluding fair value hedges | 63,021 | 35,468 |
Total liabilities | 66,776 | 40,776 |
Estimate of Fair Value Measurement | ||
Liabilities | ||
Short-term borrowings | 3,693 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 3,760 | 1,617 |
Long-term debt and finance lease obligations, excluding fair value hedges | 66,651 | 34,052 |
Total liabilities | 70,411 | 39,362 |
Estimate of Fair Value Measurement | Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities | ||
Short-term borrowings | 0 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 3,753 | 1,609 |
Long-term debt and finance lease obligations, excluding fair value hedges | 66,631 | 34,024 |
Total liabilities | 70,384 | 35,633 |
Estimate of Fair Value Measurement | Significant other observable inputs (Level 2) | ||
Liabilities | ||
Short-term borrowings | 3,693 | |
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 7 | 8 |
Long-term debt and finance lease obligations, excluding fair value hedges | 20 | 28 |
Total liabilities | 27 | 3,729 |
Estimate of Fair Value Measurement | Significant unobservable Inputs (Level 3) | ||
Liabilities | ||
Short-term borrowings | 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 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measures - Available-for-sale Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Debt security maturity period | 5 years | ||
Amortized cost | $ 1,546,000,000 | ||
Gross unrealized gains | 1,000,000 | ||
Gross unrealized losses | (11,000,000) | ||
Fair value | 1,536,000,000 | ||
Other than temporary impairments | $ 0 | ||
Net realized gains on available-for-sale securities | $ 90,000,000 | ||
Short-term Investments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities classified as short-term | $ 0 | 204,000,000 | |
Asset backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 423,000,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | (2,000,000) | ||
Fair value | 421,000,000 | ||
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 1,042,000,000 | ||
Gross unrealized gains | 1,000,000 | ||
Gross unrealized losses | (9,000,000) | ||
Fair value | 1,034,000,000 | ||
Other debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost | 81,000,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 0 | ||
Fair value | $ 81,000,000 |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Measures - Concentrations of Risk (Details) - wholesaler | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration of Risk | |||
Number of principal customers | 3 | ||
Net revenues | |||
Concentration of Risk | |||
Number of principal customers | 3 | ||
Net revenues | HUMIRA | |||
Concentration of Risk | |||
Concentrations risk (as a percent) | 58.00% | 61.00% | 65.00% |
Accounts Receivable | Geographic Risk | |||
Concentration of Risk | |||
Concentrations risk (as a percent) | 68.00% | 63.00% |
Post-Employment Benefits - Addi
Post-Employment Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 7,600 | $ 6,000 | |
Accumulated benefit obligations in excess of plan assets - ABO | 5,800 | ||
Accumulated benefit obligations in excess of plan assets - PBO | 6,700 | ||
Accumulated benefit obligations in excess of plan assets - Aggregate plan assets | $ 4,800 | ||
Ultimate per capita trend rate for health care costs from 2064 and thereafter | 4.50% | ||
Ultimate per capita trend rate for health care costs from 2064 and thereafter (as a percent) | 4.50% | ||
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Projected benefit obligation | $ 8,646 | 6,618 | $ 6,985 |
Pre-tax amount of actuarial loss and prior service cost included in AOCI that is expected to be recognized in net periodic benefit cost | $ 219 | ||
Defined benefit plans | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target investment allocations for Pension Plan (as a percent) | 35.00% | ||
Defined benefit plans | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target investment allocations for Pension Plan (as a percent) | 20.00% | ||
Defined benefit plans | Defined Benefit Plan Other Assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target investment allocations for Pension Plan (as a percent) | 45.00% | ||
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Projected benefit obligation | $ 1,050 | 561 | 813 |
Pre-tax amount of actuarial loss and prior service cost included in AOCI that is expected to be recognized in net periodic benefit cost | $ 25 | ||
Pre Sixty Five Years of Age | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual rate of increase in the per capita cost of covered health care obligation benefits assumed in the current year (as a percent) | 6.40% | ||
Annual rate of increase in the per capita cost of covered health care cost benefits assumed in the current year (as a percent) | 6.60% | ||
Post Sixty Five Years of Age | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual rate of increase in the per capita cost of covered health care obligation benefits assumed in the current year (as a percent) | 7.00% | ||
Annual rate of increase in the per capita cost of covered health care cost benefits assumed in the current year (as a percent) | 7.30% | ||
AbbVie Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expenses recorded | $ 102 | 89 | $ 82 |
Foreign Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Projected benefit obligation | $ 2,300 | $ 1,900 |
Post-Employment Benefits - Bene
Post-Employment Benefits - Benefit Plan Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value of plan assets | |||
Beginning of period | $ 5,637 | ||
End of period | 7,116 | $ 5,637 | |
Amounts recognized on the consolidated balance sheets | |||
Other long-term liabilities | (2,949) | (1,840) | |
Defined benefit plans | |||
Projected benefit obligations | |||
Beginning of period | 6,618 | 6,985 | |
Service cost | 269 | 285 | $ 236 |
Interest cost | 259 | 227 | 204 |
Employee contributions | 2 | 2 | |
Actuarial (gain) loss | 1,703 | (614) | |
Benefits paid | (206) | (191) | |
Other, primarily foreign currency translation adjustments | 1 | (76) | |
End of period | 8,646 | 6,618 | 6,985 |
Fair value of plan assets | |||
Beginning of period | 5,637 | 5,399 | |
Actual return on plan assets | 946 | (384) | |
Company contributions | 727 | 873 | |
Employee contributions | 2 | 2 | |
Benefits paid | (206) | (191) | |
Other, primarily foreign currency translation adjustments | 10 | (62) | |
End of period | 7,116 | 5,637 | 5,399 |
Funded status, end of period | (1,530) | (981) | |
Amounts recognized on the consolidated balance sheets | |||
Other assets | 395 | 321 | |
Accounts payable and accrued liabilities | (8) | (8) | |
Other long-term liabilities | (1,917) | (1,294) | |
Net obligation | (1,530) | (981) | |
Actuarial loss, net | 3,633 | 2,516 | |
Prior service cost (credit) | 10 | 11 | |
Accumulated other comprehensive loss | 3,643 | 2,527 | |
Other post-employment plans | |||
Projected benefit obligations | |||
Beginning of period | 561 | 813 | |
Service cost | 25 | 26 | 26 |
Interest cost | 29 | 25 | 24 |
Actuarial (gain) loss | 451 | (287) | |
Benefits paid | (17) | (16) | |
Other, primarily foreign currency translation adjustments | 1 | 0 | |
End of period | 1,050 | 561 | $ 813 |
Fair value of plan assets | |||
Company contributions | 17 | 16 | |
Benefits paid | (17) | (16) | |
Funded status, end of period | (1,050) | (561) | |
Amounts recognized on the consolidated balance sheets | |||
Accounts payable and accrued liabilities | (18) | (15) | |
Other long-term liabilities | (1,032) | (546) | |
Net obligation | (1,050) | (561) | |
Actuarial loss, net | 469 | 25 | |
Prior service cost (credit) | (16) | (22) | |
Accumulated other comprehensive loss | $ 453 | $ 3 |
Post-Employment Benefits - Pret
Post-Employment Benefits - Pretax Gains and Losses Included in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial loss | $ 1,231 | $ 209 | $ 412 |
Amortization of actuarial loss and prior service credit | (109) | (140) | (107) |
Foreign exchange loss (gain) and other | (6) | (13) | 46 |
Total loss (gain) | 1,116 | 56 | 351 |
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial loss | 451 | (287) | 149 |
Amortization of actuarial loss and prior service credit | (1) | (1) | |
Total loss (gain) | $ 450 | $ (288) | $ 149 |
Post-Employment Benefits - Net
Post-Employment Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 269 | $ 285 | $ 236 |
Interest cost | 259 | 227 | 204 |
Expected return on plan assets | (474) | (439) | (382) |
Amortization of actuarial loss and prior service credit | 109 | 140 | 107 |
Net periodic benefit cost | 163 | 213 | 165 |
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 25 | 26 | 26 |
Interest cost | 29 | 25 | 24 |
Amortization of actuarial loss and prior service credit | 1 | 1 | 0 |
Net periodic benefit cost | $ 55 | $ 52 | $ 50 |
Post-Employment Benefits - Weig
Post-Employment Benefits - Weighted-Average Assumptions Used in Determining Benefit Obligation at Measurement Date (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined benefit plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.00% | 4.00% |
Rate of compensation increases | 4.60% | 4.60% |
Other post-employment plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.60% | 4.60% |
Post-Employment Benefits - We_2
Post-Employment Benefits - Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate for determining service cost | 4.00% | 3.40% | 3.90% |
Discount rate for determining interest cost | 4.00% | 3.10% | 3.70% |
Expected long-term rate of return on plan assets | 7.60% | 7.70% | 7.80% |
Expected rate of change in compensation | 4.60% | 4.40% | 4.40% |
Other post-employment plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate for determining service cost | 4.70% | 4.00% | 4.90% |
Discount rate for determining interest cost | 4.30% | 3.70% | 4.10% |
Post-Employment Benefits - Effe
Post-Employment Benefits - Effect of a One Percent Change in Assumed Health Care Cost Trend Rates (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Postemployment Benefits [Abstract] | |
Effect of one percentage point increase, Service cost and interest cost | $ 13 |
Effect of one percentage point decrease, Service cost and interest cost | (10) |
Effect of one percentage point increase, Projected benefit obligation | 244 |
Effect of one percentage point decrease, Projected benefit obligation | $ (186) |
Post-Employment Benefits - Defi
Post-Employment Benefits - Defined Benefit Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets measured at NAV | $ 4,265 | $ 3,278 | |
Fair value of plan assets | 7,116 | 5,637 | |
U.S. Large Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 884 | 719 | [1] |
U.S. mid cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 138 | 67 | [2] |
International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 349 | 226 | [3] |
U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 149 | 140 | [4] |
Corporate debt instruments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 372 | 385 | [4] |
Non-U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 202 | 175 | [4] |
Other fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 320 | 232 | [4] |
Absolute return funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 296 | 261 | [5] |
Real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 9 | 7 | |
Other real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 132 | 147 | [6] |
Total | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,851 | 2,359 | |
Quoted prices in active markets for identical assets (Level 1) | U.S. Large Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 884 | 719 | [1] |
Quoted prices in active markets for identical assets (Level 1) | U.S. mid cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 138 | 67 | [2] |
Quoted prices in active markets for identical assets (Level 1) | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 349 | 226 | [3] |
Quoted prices in active markets for identical assets (Level 1) | U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 21 | 21 | [4] |
Quoted prices in active markets for identical assets (Level 1) | Corporate debt instruments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 112 | 123 | [4] |
Quoted prices in active markets for identical assets (Level 1) | Non-U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 84 | 48 | [4] |
Quoted prices in active markets for identical assets (Level 1) | Other fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 318 | 225 | [4] |
Quoted prices in active markets for identical assets (Level 1) | Absolute return funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 4 | 3 | [5] |
Quoted prices in active markets for identical assets (Level 1) | Real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 9 | 7 | |
Quoted prices in active markets for identical assets (Level 1) | Other real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 132 | 147 | [6] |
Quoted prices in active markets for identical assets (Level 1) | Total | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,051 | 1,586 | |
Significant other observable inputs (Level 2) | U.S. Large Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [1] |
Significant other observable inputs (Level 2) | U.S. mid cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [2] |
Significant other observable inputs (Level 2) | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [3] |
Significant other observable inputs (Level 2) | U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 128 | 119 | [4] |
Significant other observable inputs (Level 2) | Corporate debt instruments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 260 | 262 | [4] |
Significant other observable inputs (Level 2) | Non-U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 118 | 127 | [4] |
Significant other observable inputs (Level 2) | Other fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 7 | [4] |
Significant other observable inputs (Level 2) | Absolute return funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 292 | 258 | [5] |
Significant other observable inputs (Level 2) | Real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant other observable inputs (Level 2) | Other real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [6] |
Significant other observable inputs (Level 2) | Total | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 800 | 773 | |
Significant unobservable Inputs (Level 3) | U.S. Large Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [1] |
Significant unobservable Inputs (Level 3) | U.S. mid cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [2] |
Significant unobservable Inputs (Level 3) | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [3] |
Significant unobservable Inputs (Level 3) | U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [4] |
Significant unobservable Inputs (Level 3) | Corporate debt instruments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [4] |
Significant unobservable Inputs (Level 3) | Non-U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [4] |
Significant unobservable Inputs (Level 3) | Other fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [4] |
Significant unobservable Inputs (Level 3) | Absolute return funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [5] |
Significant unobservable Inputs (Level 3) | Real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable Inputs (Level 3) | Other real assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | [6] |
Significant unobservable Inputs (Level 3) | Total | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
[1] | A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices. | ||
[2] | A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices. | ||
[3] | A mix of index funds and actively managed equity accounts that are benchmarked to various non-U.S. equity indices in both developed and emerging markets. | ||
[4] | Securities held by actively managed accounts, index funds and mutual funds. | ||
[5] | Primarily funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets. | ||
[6] | Investments in cash and cash equivalents. |
Post-Employment Benefits - Expe
Post-Employment Benefits - Expected Defined Benefit and Other Post-Employment Plan Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Defined benefit plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | $ 221 |
2021 | 235 |
2022 | 251 |
2023 | 268 |
2024 | 286 |
2025 to 2029 | 1,737 |
Other post-employment plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 18 |
2021 | 21 |
2022 | 24 |
2023 | 26 |
2024 | 29 |
2025 to 2029 | $ 186 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | 100,000,000 | ||
Retirement-eligible employees' age | 55 years | ||
Minimum number of years of services | 10 years | ||
Pre-tax compensation expense | $ 430 | $ 421 | $ 365 |
Tax benefit | 80 | 73 | 73 |
After-tax compensation expense | 350 | 348 | 292 |
Realized excess tax benefits from the exercise of stock options | 15 | 78 | 71 |
Cost of products sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 29 | 27 | 23 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 171 | 169 | 159 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | $ 230 | $ 225 | $ 183 |
Equity - Stock Options (Details
Equity - Stock Options (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)company$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
Incremental vesting | company | 0.33 | ||
Vesting period | 3 years | ||
Exercise price for awards granted as percentage of market value on the date of grant | 100.00% | ||
Weighted-average grant-date fair value of the stock options granted (in dollars per share) | $ 12.54 | $ 21.63 | $ 9.80 |
Options | |||
Outstanding at the beginning of the period (in shares) | shares | 6,143 | ||
Granted (in shares) | shares | 1,002 | ||
Exercised (in shares) | shares | (375) | ||
Lapsed (in shares) | shares | (9) | ||
Outstanding at the end of the period (in shares) | shares | 6,761 | 6,143 | |
Exercisable at the end of the period (in shares) | shares | 4,924 | ||
Weighted- average exercise price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 55.05 | ||
Granted (in dollars per share) | 79.02 | ||
Exercised (in dollars per share) | 23.72 | ||
Lapsed (in dollars per share) | 20.09 | ||
Outstanding at the end of the period (in dollars per share) | 60.39 | $ 55.05 | |
Exercisable at the end of the period (in dollars per share) | $ 51.90 | ||
Weighted- average remaining life (in years) | |||
Outstanding | 5 years 10 months 24 days | 6 years 2 months 12 days | |
Exercisable | 4 years 10 months 24 days | ||
Aggregate intrinsic value | |||
Outstanding | $ | $ 207 | $ 242 | |
Exercisable | $ | 186 | ||
Aggregate intrinsic value of options exercised | $ | 22 | $ 215 | $ 371 |
Total fair value of options vested | $ | 13 | ||
Unrecognized compensation cost | $ | $ 6 | ||
Period for recognition of unrecognized compensation cost | 2 years |
Equity - RSUs and Performance S
Equity - RSUs and Performance Shares (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)company$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Incremental vesting | company | 0.33 | ||
Performance-vested RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental vesting | company | 0.33 | ||
Performance period | 3 years | ||
Common stock received for each vested award (in shares) | 1 | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental vesting | company | 0.33 | ||
Performance period | 3 years | ||
RSUs and performance shares | |||
Share units | |||
Shares units outstanding at the beginning of the period (in shares) | 9,868,000 | ||
Granted (in shares) | 5,584,000 | ||
Vested (in shares) | (4,616,000) | ||
Forfeited (in shares) | (604,000) | ||
Shares units outstanding at the end of the period (in shares) | 10,232,000 | 9,868,000 | |
Weighted-average grant date fair value | |||
Weighted average fair value outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 79.90 | ||
Granted (in dollars per share) | $ / shares | 78.03 | ||
Vested (in dollars per share) | $ / shares | 71.30 | ||
Forfeited (in dollars per share) | $ / shares | 82.19 | ||
Weighted average fair value outstanding at the end of the period (in dollars per share) | $ / shares | $ 81.72 | $ 79.90 | |
Fair market value of awards vested | $ | $ 371 | $ 583 | $ 348 |
Unrecognized compensation cost | $ | $ 327 | ||
Period for recognition of unrecognized compensation cost | 2 years |
Equity - Cash Dividends (Detail
Equity - Cash Dividends (Details) - $ / shares | Nov. 01, 2019 | Sep. 06, 2019 | Jun. 20, 2019 | Feb. 21, 2019 | Nov. 02, 2018 | Sep. 07, 2018 | Jun. 14, 2018 | Feb. 15, 2018 | Oct. 27, 2017 | Sep. 08, 2017 | Jun. 22, 2017 | Feb. 16, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | |||||||||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ 1.18 | $ 1.07 | $ 1.07 | $ 1.07 | $ 1.07 | $ 0.96 | $ 0.96 | $ 0.96 | $ 0.71 | $ 0.64 | $ 0.64 | $ 0.64 | $ 1.18 | $ 1.07 | $ 1.07 | $ 1.07 | $ 1.07 | $ 0.96 | $ 0.96 | $ 0.96 | $ 4.39 | $ 3.95 | $ 2.63 |
Equity - Share Repurchase Progr
Equity - Share Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | Dec. 13, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 15, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||||
Payment for shares repurchased | $ 428 | $ 12,215 | $ 1,125 | ||
Remaining share repurchase authorization amount | $ 4,000 | ||||
February 2017 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) | 4 | ||||
Payment for shares repurchased | $ 300 | ||||
February 2018 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Amount authorized under stock repurchase program | $ 10,000 | ||||
December 2018 Stock Repurchase Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) | 109 | ||||
Payment for shares repurchased | $ 10,700 | ||||
Increase in authorized share repurchase amount | $ 5,000 | ||||
Open Market Stock Repurchases | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) | 11 | 13 | |||
Payment for shares repurchased | $ 1,300 | $ 1,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (8,446) | $ 5,097 | $ 4,636 |
Other comprehensive income (loss) | (1,116) | 247 | (141) |
Ending balance | (8,172) | (8,446) | 5,097 |
Currency translation adjustment reclassification from AOCI tax impact | 0 | ||
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,480) | (2,727) | (2,586) |
Other comprehensive income (loss) before reclassifications | (1,023) | (27) | (344) |
Net losses reclassified from accumulated other comprehensive loss | (93) | 274 | 203 |
Other comprehensive income (loss) | (1,116) | 247 | (141) |
Ending balance | (3,596) | (2,480) | (2,727) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (830) | (439) | (1,435) |
Other comprehensive income (loss) before reclassifications | (98) | (391) | 680 |
Net losses reclassified from accumulated other comprehensive loss | 0 | 316 | |
Other comprehensive income (loss) | (98) | (391) | 996 |
Ending balance | (928) | (830) | (439) |
Net investment hedging activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (65) | (203) | 140 |
Other comprehensive income (loss) before reclassifications | 95 | 138 | (343) |
Net losses reclassified from accumulated other comprehensive loss | (21) | 0 | 0 |
Other comprehensive income (loss) | 74 | 138 | (343) |
Ending balance | 9 | (65) | (203) |
Pension and post-employment benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,722) | (1,919) | (1,513) |
Other comprehensive income (loss) before reclassifications | (1,330) | 84 | (480) |
Net losses reclassified from accumulated other comprehensive loss | 87 | 113 | 74 |
Other comprehensive income (loss) | (1,243) | 197 | (406) |
Ending balance | (2,965) | (1,722) | (1,919) |
Marketable security activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (10) | 0 | 46 |
Other comprehensive income (loss) before reclassifications | 12 | (14) | 29 |
Net losses reclassified from accumulated other comprehensive loss | (2) | 4 | (75) |
Other comprehensive income (loss) | 10 | (10) | (46) |
Ending balance | 0 | (10) | 0 |
Cash flow hedging activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 147 | (166) | 176 |
Other comprehensive income (loss) before reclassifications | 298 | 156 | (230) |
Net losses reclassified from accumulated other comprehensive loss | (157) | 157 | (112) |
Other comprehensive income (loss) | 141 | 313 | (342) |
Ending balance | $ 288 | $ 147 | $ (166) |
Equity - Amounts Reclassified O
Equity - Amounts Reclassified Out Of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [2] | Jun. 30, 2019 | [3] | Mar. 31, 2019 | [4] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [4] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Significant amounts reclassified out of each component of AOCI | ||||||||||||||||||||
Gains on derivatives recognized in interest expense, net reclassified out of other comprehensive income | $ 1,509 | $ 1,144 | $ 1,004 | |||||||||||||||||
Tax expense (benefit) | 544 | (490) | 2,418 | |||||||||||||||||
Total reclassifications, net of tax | $ (2,801) | $ (1,884) | $ (741) | $ (2,456) | $ 1,826 | $ (2,747) | $ (1,983) | $ (2,783) | (7,882) | (5,687) | (5,309) | |||||||||
Losses (gains) on foreign currency exchange contracts | 7,439 | 7,718 | 7,042 | |||||||||||||||||
Pension and post-employment benefits | ||||||||||||||||||||
Significant amounts reclassified out of each component of AOCI | ||||||||||||||||||||
Amortization of actuarial losses and other | [5] | 110 | 141 | 107 | ||||||||||||||||
Tax benefit | (23) | (28) | (33) | |||||||||||||||||
Total reclassifications, net of tax | 87 | 113 | 74 | |||||||||||||||||
Reclassification out of accumulated other comprehensive income | Cash flow hedging activities | ||||||||||||||||||||
Significant amounts reclassified out of each component of AOCI | ||||||||||||||||||||
Tax expense (benefit) | 14 | (4) | 6 | |||||||||||||||||
Total reclassifications, net of tax | (157) | 157 | (112) | |||||||||||||||||
Reclassification out of accumulated other comprehensive income | Net investment hedging activities | Net investment hedging activities | ||||||||||||||||||||
Significant amounts reclassified out of each component of AOCI | ||||||||||||||||||||
Gains on derivatives recognized in interest expense, net reclassified out of other comprehensive income | [6] | (27) | 0 | 0 | ||||||||||||||||
Tax expense (benefit) | 6 | 0 | 0 | |||||||||||||||||
Total reclassifications, net of tax | (21) | 0 | 0 | |||||||||||||||||
Foreign currency forward exchange contracts | Reclassification out of accumulated other comprehensive income | Cash flow hedging activities | ||||||||||||||||||||
Significant amounts reclassified out of each component of AOCI | ||||||||||||||||||||
Losses (gains) on foreign currency exchange contracts | [7] | (167) | 161 | (118) | ||||||||||||||||
Treasury rate lock agreements | Reclassification out of accumulated other comprehensive income | Cash flow hedging activities | ||||||||||||||||||||
Significant amounts reclassified out of each component of AOCI | ||||||||||||||||||||
Gains on derivatives recognized in interest expense, net reclassified out of other comprehensive income | [6] | $ 4 | $ 0 | $ 0 | ||||||||||||||||
[1] | Fourth quarter results in 2019 included an after-tax charge of $438 million related to the change in fair value of contingent consideration liabilities offset by after-tax income of $435 million from a legal settlement related to an intellectual property dispute with a third party and $297 million from an amended and restated license agreement between AbbVie and Reata . Fourth quarter results in 2018 included an after-tax intangible asset impairment charge of $4.5 billion partially offset by an after-tax benefit of $375 million related to the change in fair value of contingent consideration liabilities. | |||||||||||||||||||
[2] | Third quarter results in 2019 included after-tax charges of $912 million related to intangible asset impairment and $182 million related to the change in fair value of contingent consideration liabilities. Third quarter results in 2018 included after-tax litigation reserves charges of $176 million and $95 million related to the change in fair value of contingent consideration liabilities. | |||||||||||||||||||
[3] | Second quarter results in 2019 included an after-tax charge of $2.3 billion related to the change in fair value of contingent consideration liabilities resulting from the April 2019 regulatory approvals of SKYRIZI for the treatment of moderate to severe plaque psoriasis. Second quarter results in 2018 included after-tax charges of $500 million as a result of a collaboration agreement extension with Calico and $485 million related to the change in fair value of contingent consideration liabilities. | |||||||||||||||||||
[4] | First quarter results in 2019 included after-tax charges of $171 million related to the change in fair value of contingent consideration liabilities and restructuring charges of $133 million . First quarter results in 2018 included an after-tax benefit of $148 million related to the change in fair value of contingent consideration liabilities partially offset by after-tax litigation reserves charges of $100 million . | |||||||||||||||||||
[5] | Amounts are included in the computation of net periodic benefit cost (see Note 12 ). | |||||||||||||||||||
[6] | Amounts are included in interest expense, net (see Note 11 ). | |||||||||||||||||||
[7] | Amounts are included in cost of products sold (see Note 11 ). |
Equity - Other (Details)
Equity - Other (Details) | Dec. 31, 2019$ / sharesshares |
Equity [Abstract] | |
Preferred stock authorized (in shares) | 200,000,000 |
Preferred stock par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock issued (in shares) | 0 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (2,784) | $ (4,274) | $ (2,678) |
Foreign | 11,210 | 9,471 | 10,405 |
Total earnings before income tax expense | $ 8,426 | $ 5,197 | $ 7,727 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Domestic | $ 102 | $ 593 | $ 6,204 |
Foreign | 320 | 434 | 376 |
Total current taxes | 422 | 1,027 | 6,580 |
Deferred | |||
Domestic | (137) | (1,497) | (4,898) |
Foreign | 259 | (20) | 736 |
Total deferred taxes | 122 | (1,517) | (4,162) |
Total income tax expense (benefit) | $ 544 | $ (490) | $ 2,418 |
Income Taxes - Impacts Related
Income Taxes - Impacts Related to U.S. Tax Reform (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal corporate tax rate | 21.00% | 21.00% | 35.00% |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 35.00% |
Effect of foreign operations | (8.40%) | (28.70%) | (12.20%) |
U.S. tax credits | (3.30%) | (7.30%) | (4.00%) |
Impacts related to U.S. tax reform | (1.60%) | 8.20% | 12.00% |
Stock-based compensation excess tax benefit | (0.20%) | (1.50%) | (0.90%) |
Tax audit settlements | (4.70%) | (2.50%) | (1.20%) |
Deferred tax remeasurements due to change in tax rate | 3.10% | 0.00% | 0.00% |
All other, net | 0.60% | 1.40% | 2.60% |
Effective tax rate | 6.50% | (9.40%) | 31.30% |
Net tax benefit related to the resolution of various tax positions pertaining to prior years | $ 400 | $ 131 | $ 91 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax assets | ||
Compensation and employee benefits | $ 810 | $ 529 |
Accruals and reserves | 371 | 371 |
Chargebacks and rebates | 477 | 417 |
Advance payments | 615 | 867 |
Net operating losses and other credit carryforwards | 838 | 228 |
Other | 406 | 353 |
Total deferred tax assets | 3,517 | 2,765 |
Valuation allowances | (731) | (103) |
Total net deferred tax assets | 2,786 | 2,662 |
Deferred tax liabilities | ||
Excess of book basis over tax basis of intangible assets | (2,712) | (2,940) |
Excess of book basis over tax basis in investments | (249) | (211) |
Other | (440) | (250) |
Total deferred tax liabilities | (3,401) | (3,401) |
Net deferred tax liabilities | (615) | $ (739) |
State And Local Jurisdiction | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | 1,000 | |
Tax credit carryforwards | 188 | |
Foreign Country | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards | 2,900 | |
Operating loss carryforwards with expiration between 2018 and 2023 | $ 2,800 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized Tax Benefits | |||
Beginning balance | $ 2,852 | $ 2,701 | $ 1,168 |
Increase due to current year tax positions | 113 | 163 | 1,768 |
Increase due to prior year tax positions | 499 | 110 | 16 |
Decrease due to prior year tax positions | (21) | (36) | (2) |
Settlements | (749) | (79) | (233) |
Lapse of statutes of limitations | (33) | (7) | (16) |
Ending balance | 2,661 | 2,852 | 2,701 |
Net amount of potential tax benefits that would impact the entity's effective tax rate | 2,400 | 2,700 | |
Reimbursement receivable for unrecognized tax benefits and related interest and penalties for periods after separation | 83 | ||
Interest and penalties | 51 | 73 | 24 |
Accrued interest and penalties | 191 | $ 190 | $ 120 |
Reasonably possible amount that gross unrecognized tax benefits may change within the next twelve months, high end of range | $ 54 |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019direct_purchaser | Jun. 30, 2018USD ($) | Mar. 31, 2017 | Jun. 30, 2016investment_fund | Nov. 30, 2014individual | Sep. 30, 2014company | Sep. 30, 2019direct_purchaser | Sep. 30, 2019end_payor_purchaser | Dec. 31, 2019USD ($)companyclaimlawsuitclass_action | Dec. 31, 2018USD ($) | |
Legal Proceedings and Contingencies | ||||||||||
Recorded accrual balance for litigation | $ 290,000,000 | $ 350,000,000 | ||||||||
Number of individual putative class action lawsuit | individual | 5 | |||||||||
Percentage of claims subject to settlement agreements | 80.00% | |||||||||
AndroGel Antitrust Litigation | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Recorded accrual balance for litigation | $ 0 | |||||||||
Number of generic companies with whom certain litigation related agreements were entered into | company | 2 | |||||||||
Number of healthcare benefit providers who filed lawsuits | direct_purchaser | 2 | |||||||||
Niaspan | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Number of healthcare benefit providers who filed lawsuits | 1 | 1 | ||||||||
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 cases are consolidated for pre-trial purposes | claim | 3,500 | |||||||||
Number of cases pending | claim | 175 | |||||||||
Depakote | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Number of cases pending | claim | 120 | |||||||||
Novartis Vaccines and Diagnostics Inc and Grifols Worldwide Operations Ltd | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
HCV-related patents | 11 | |||||||||
Patent Litigation | AndroGel Antitrust Litigation | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Number of generic companies with whom certain litigation related agreements were entered into | company | 3 | |||||||||
Patent Litigation | Niaspan | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Number of individual plaintiff lawsuits | lawsuit | 4 | |||||||||
Number of purported class actions | class_action | 2 | |||||||||
Disgorgement Remedy | AndroGel Antitrust Litigation | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Damages awarded against company | $ 448,000,000 | |||||||||
Other operating income | ||||||||||
Legal Proceedings and Contingencies | ||||||||||
Legal settlement income | $ 550,000,000 |
Segment and Geographic Area I_3
Segment and Geographic Area Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019wholesalersegment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | segment | 1 |
Number of Principal US Customers | wholesaler | 3 |
Segment and Geographic Area I_4
Segment and Geographic Area Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | ||||
Net revenues | $ 33,266 | $ 32,753 | $ 28,216 | |
United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 23,907 | 21,524 | 18,251 | |
All other | ||||
Disaggregation of Revenue | ||||
Net revenues | 511 | 308 | 876 | |
Immunology | HUMIRA | ||||
Disaggregation of Revenue | ||||
Net revenues | 19,169 | 19,936 | 18,427 | |
Immunology | HUMIRA | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 14,864 | 13,685 | 12,361 | |
Immunology | HUMIRA | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 4,305 | 6,251 | 6,066 | |
Immunology | SKYRIZI | ||||
Disaggregation of Revenue | ||||
Net revenues | 355 | 0 | 0 | |
Immunology | SKYRIZI | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 311 | 0 | 0 | |
Immunology | SKYRIZI | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 44 | 0 | 0 | |
Immunology | RINVOQ | ||||
Disaggregation of Revenue | ||||
Net revenues | 47 | 0 | 0 | |
Immunology | RINVOQ | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 47 | 0 | 0 | |
Immunology | RINVOQ | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 0 | 0 | 0 | |
Hematologic Oncology | IMBRUVICA | ||||
Disaggregation of Revenue | ||||
Net revenues | 4,674 | 3,590 | 2,573 | |
Hematologic Oncology | IMBRUVICA | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 3,830 | 2,968 | 2,144 | |
Hematologic Oncology | VENCLEXTA | ||||
Disaggregation of Revenue | ||||
Net revenues | 792 | 344 | 122 | |
Hematologic Oncology | VENCLEXTA | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 521 | 247 | 89 | |
Hematologic Oncology | VENCLEXTA | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 271 | 97 | 33 | |
Hematologic Oncology | Collaborative arrangement | IMBRUVICA | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 844 | 622 | 429 | |
HCV | MAVYRET | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,893 | 3,438 | 490 | |
HCV | MAVYRET | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,473 | 1,614 | 277 | |
HCV | MAVYRET | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,420 | 1,824 | 213 | |
HCV | VIEKIRA | ||||
Disaggregation of Revenue | ||||
Net revenues | 36 | 178 | 784 | |
HCV | VIEKIRA | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 0 | 3 | 61 | |
HCV | VIEKIRA | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 36 | 175 | 723 | |
Other Key Products | Creon | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,041 | 928 | 831 | |
Other Key Products | Lupron | ||||
Disaggregation of Revenue | ||||
Net revenues | 887 | 892 | 829 | |
Other Key Products | Lupron | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 720 | 726 | 669 | |
Other Key Products | Lupron | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 167 | 166 | 160 | |
Other Key Products | Synthroid | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 786 | 776 | 781 | |
Other Key Products | Synagis | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 718 | 726 | 738 | |
Other Key Products | Duodopa | ||||
Disaggregation of Revenue | ||||
Net revenues | 461 | 430 | 355 | |
Other Key Products | Duodopa | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 97 | 80 | 61 | |
Other Key Products | Duodopa | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 364 | 350 | 294 | |
Other Key Products | Sevoflurane | ||||
Disaggregation of Revenue | ||||
Net revenues | 348 | 391 | 410 | |
Other Key Products | Sevoflurane | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 74 | 74 | 78 | |
Other Key Products | Sevoflurane | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 274 | 317 | 332 | |
Other Key Products | Kaletra | ||||
Disaggregation of Revenue | ||||
Net revenues | 283 | 336 | 423 | |
Other Key Products | Kaletra | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 38 | 55 | 71 | |
Other Key Products | Kaletra | International | ||||
Disaggregation of Revenue | ||||
Net revenues | 245 | 281 | 352 | |
Other Key Products | AndroGel | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | 172 | 469 | 577 | |
Other Key Products | ORILISSA | ||||
Disaggregation of Revenue | ||||
Net revenues | 93 | 11 | 0 | |
Other Key Products | ORILISSA | United States | ||||
Disaggregation of Revenue | ||||
Net revenues | $ 0 | 91 | 11 | |
Other Key Products | ORILISSA | International | ||||
Disaggregation of Revenue | ||||
Net revenues | $ 2 | $ 0 | $ 0 |
Segment and Geographic Area I_5
Segment and Geographic Area Information - Net Revenues to External Customers by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | $ 33,266 | $ 32,753 | $ 28,216 |
United States | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 23,907 | 21,524 | 18,251 |
Japan | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 1,211 | 1,591 | 764 |
Germany | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 909 | 1,292 | 1,157 |
Canada | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 813 | 730 | 659 |
France | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 695 | 783 | 730 |
Spain | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 472 | 611 | 521 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 372 | 855 | 807 |
Italy | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 372 | 652 | 475 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 359 | 350 | 410 |
The Netherlands | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | 163 | 352 | 362 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets | |||
Net revenues | $ 3,993 | $ 4,013 | $ 4,080 |
Segment and Geographic Area I_6
Segment and Geographic Area Information - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | $ 2,962 | $ 2,883 |
United States and Puerto Rico | ||
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | 2,026 | 1,993 |
Europe | ||
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | 646 | 599 |
All other | ||
Revenues from External Customers and Long-Lived Assets | ||
Total long-lived assets | $ 290 | $ 291 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 01, 2019 | Sep. 06, 2019 | Jun. 20, 2019 | Feb. 21, 2019 | Nov. 02, 2018 | Sep. 07, 2018 | Jun. 14, 2018 | Feb. 15, 2018 | Oct. 27, 2017 | Sep. 08, 2017 | Jun. 22, 2017 | Feb. 16, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||
Quarterly Financial Data | |||||||||||||||||||||||||||||||
Net revenues | $ 8,704 | $ 8,479 | $ 8,255 | $ 7,828 | $ 8,305 | $ 8,236 | $ 8,278 | $ 7,934 | $ 33,266 | $ 32,753 | $ 28,216 | ||||||||||||||||||||
Gross margin | 6,698 | 6,559 | 6,436 | 6,134 | 6,283 | 6,401 | 6,344 | 6,007 | |||||||||||||||||||||||
Net earnings | $ 2,801 | [1] | $ 1,884 | [2] | $ 741 | [3] | $ 2,456 | [4] | $ (1,826) | [1] | $ 2,747 | [2] | $ 1,983 | [3] | $ 2,783 | [4] | $ 7,882 | $ 5,687 | $ 5,309 | ||||||||||||
Basic earnings per share (in dollars per share) | $ 1.88 | $ 1.27 | $ 0.49 | $ 1.65 | $ (1.23) | $ 1.81 | $ 1.26 | $ 1.74 | $ 5.30 | $ 3.67 | $ 3.31 | ||||||||||||||||||||
Diluted earnings per share (in dollars per share) | 1.88 | 1.26 | 0.49 | 1.65 | (1.23) | 1.81 | 1.26 | 1.74 | 5.28 | 3.66 | 3.30 | ||||||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ 1.18 | $ 1.07 | $ 1.07 | $ 1.07 | $ 1.07 | $ 0.96 | $ 0.96 | $ 0.96 | $ 0.71 | $ 0.64 | $ 0.64 | $ 0.64 | $ 1.18 | $ 1.07 | $ 1.07 | $ 1.07 | $ 1.07 | $ 0.96 | $ 0.96 | $ 0.96 | $ 4.39 | $ 3.95 | $ 2.63 | ||||||||
After-tax cost (benefit) related to change in fair value of contingent consideration liabilities | $ 438 | $ 182 | $ 2,300 | $ 171 | $ (375) | $ 95 | $ 485 | $ (148) | $ 3,091 | $ 49 | $ 626 | ||||||||||||||||||||
After-tax restructuring charges | $ 133 | ||||||||||||||||||||||||||||||
After-tax charge to increase litigation reserves | $ 176 | $ 100 | |||||||||||||||||||||||||||||
After-tax intangible asset impairment charge | $ 912 | $ 4,500 | |||||||||||||||||||||||||||||
After-tax income from legal settlements | 435 | ||||||||||||||||||||||||||||||
Calico Life Sciences LLC | Collaborative arrangement | |||||||||||||||||||||||||||||||
Quarterly Financial Data | |||||||||||||||||||||||||||||||
After-tax charge as a result of a collaboration agreement extension with Calico | $ 500 | ||||||||||||||||||||||||||||||
Reata Pharmaceuticals Inc | |||||||||||||||||||||||||||||||
Quarterly Financial Data | |||||||||||||||||||||||||||||||
After-tax consideration from counterparty for reacquired rights | $ 297 | ||||||||||||||||||||||||||||||
[1] | Fourth quarter results in 2019 included an after-tax charge of $438 million related to the change in fair value of contingent consideration liabilities offset by after-tax income of $435 million from a legal settlement related to an intellectual property dispute with a third party and $297 million from an amended and restated license agreement between AbbVie and Reata . Fourth quarter results in 2018 included an after-tax intangible asset impairment charge of $4.5 billion partially offset by an after-tax benefit of $375 million related to the change in fair value of contingent consideration liabilities. | ||||||||||||||||||||||||||||||
[2] | Third quarter results in 2019 included after-tax charges of $912 million related to intangible asset impairment and $182 million related to the change in fair value of contingent consideration liabilities. Third quarter results in 2018 included after-tax litigation reserves charges of $176 million and $95 million related to the change in fair value of contingent consideration liabilities. | ||||||||||||||||||||||||||||||
[3] | Second quarter results in 2019 included an after-tax charge of $2.3 billion related to the change in fair value of contingent consideration liabilities resulting from the April 2019 regulatory approvals of SKYRIZI for the treatment of moderate to severe plaque psoriasis. Second quarter results in 2018 included after-tax charges of $500 million as a result of a collaboration agreement extension with Calico and $485 million related to the change in fair value of contingent consideration liabilities. | ||||||||||||||||||||||||||||||
[4] | First quarter results in 2019 included after-tax charges of $171 million related to the change in fair value of contingent consideration liabilities and restructuring charges of $133 million . First quarter results in 2018 included an after-tax benefit of $148 million related to the change in fair value of contingent consideration liabilities partially offset by after-tax litigation reserves charges of $100 million . |
Uncategorized Items - abbv-2019
Label | Element | Value | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,733,000,000) | |
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 | |
AOCI Attributable to Parent [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) | |
[1] | Adoption of new accounting standards primarily includes the cumulative-effect adjustment of Accounting Standards Update (ASU) No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . |