Company: ABBV
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001551152-25-000049
Chunk: 40

Company: AbbVie Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 hedges with notional amounts totaling €6.5 billion, SEK1.9 billion, CAD500 million and CHF80 million at September 30, 2025 and €6.2 billion, SEK1.4 billion, CAD500 million and CHF50 million at December 31, 2024. 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.The company is a party to interest rate swap contracts designated as fair value hedges with notional amounts totaling $3.5 billion at September 30, 2025 and December 31, 2024. 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.

2025 Form 10-Q | 12

The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets:Fair value – Derivatives in asset positionFair value –Derivatives in liability position(in millions)Balance sheet captionSeptember 30,2025December 31, 2024Balance sheet captionSeptember 30,2025December 31, 2024Foreign currency forward exchange contractsDesignated as cash flow hedgesPrepaid expenses and other$29 $119 Accounts payable and accrued liabilities$73 $5 Designated as cash flow hedgesOther assets— — Other long-term liabilities1 — Designated as net investment hedgesPrepaid expenses and other— 4 Accounts payable and accrued liabilities165 — Designated as net investment hedgesOther assets— 148 Other long-term liabilities326 — Not designated as hedgesPrepaid expenses and other29 42 Accounts payable and accrued liabilities19 30 Interest rate swap contractsDesignated as fair value hedgesOther assets67 — Other long-term liabilities106 231 Total derivatives$125 $313 $690 $266 While certain derivatives are subject