Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 234

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 3
Chunk 234
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 lease cost$347 $305 $339 In December 2022, the company entered into an agreement to sublease a portion of its Madison, New Jersey office space through the end of the original lease maturity in 2030. As a result of this agreement, the company recognized an impairment loss on its right-of-use asset of $69 million and wrote-off the related leasehold improvements of $37 million. These losses were recorded in SG&A expense in the consolidated statements of earnings for the year ended December 31, 2022. The company used a discounted cash flows method to value the right-of-use asset to determine the impairment amount.Sublease income and finance lease costs were insignificant in 2024, 2023 and 2022.

73     |  2024 Form 10-K

The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases:years ended December 31202420232022Weighted-average remaining lease term (years)Operating778Finance532Weighted-average discount rateOperating3.3 %3.0 %2.6 %Finance4.2 %3.6 %1.5 %The following table presents supplementary cash flow information regarding the company's leases:years ended December 31 (in millions)202420232022Cash paid for amounts included in the measurement of lease liabilitiesOperating cash flows from operating leases$204 $214 $212 Right-of-use assets obtained in exchange for new operating lease liabilities159 173 235 Finance lease cash flows were insignificant in 2024, 2023 and 2022. The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2024:(in millions)OperatingleasesFinanceleasesTotal(a)2025$204 $18 $222 2026182 15 197 2027145 4 149 2028118 2 120 2029102 1 103 Thereafter223 2 225 Total lease payments974 42 1,016 Less: Interest99 2 101 Present value of lease liabilities$875 $40 $915 (a)Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant.

2024 Form 10-K   |  74

Note 10 Debt, Credit Facilities and Commitments and Contingencies 

The following