Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 351

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 351
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. Retirement eligible employees generally are those who are age 55 or older and have at least 10 years of service.

2024 Form 10-K   |  88

Stock-based compensation expense is principally related to awards issued pursuant to the 2013 ISP and the Amended Plan and is summarized as follows:years ended December 31 (in millions)202420232022Cost of products sold$55 $46 $38 Research and development341 278 232 Selling, general and administrative515 423 401 Pre-tax compensation expense911 747 671 Tax benefit159 136 122 After-tax compensation expense$752 $611 $549 Realized excess tax benefits associated with stock-based compensation totaled $84 million in 2024, $90 million in 2023 and $116 million in 2022. In addition to stock-based compensation expense included in the table above and in connection with the acquisitions of ImmunoGen and Cerevel Therapeutics, AbbVie incurred cash-settled, post-closing expense for ImmunoGen and Cerevel Therapeutics employee incentive awards, which is summarized in the table below:year ended December 31 (in millions)2024Cost of products sold$36 Research and development184Selling, general and administrative290Total post-closing cash settled expense$510 Stock OptionsStock options awarded to employees typically have a contractual term of 10 years and generally vest in one-third increments over a 3-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 $31.53 in 2024, $29.89 in 2023 and $22.83 in 2022. The following table summarizes AbbVie stock option activity in 2024:(options in thousands, aggregate intrinsic value in millions)OptionsWeighted- average exercise priceWeighted-average remaining life (in years)Aggregate intrinsic valueOutstanding at December 31, 20237,481 $102.80 5.0$390 Granted648 175.26 Exercised(2,420)89.01 Lapsed and forfeited(96)81.16 Outstanding at December 31, 20245,613 $117.48 5.6$338