Company: ABBV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001551152-25-000029
Chunk: 20

Company: AbbVie Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 Income-Expense Disaggregation Disclosures (Subtopic 220-40). The standard requires further disaggregation of relevant expense captions in a separate note to the financial statements. The standard is effective for AbbVie starting in annual periods in 2027 and interim periods beginning in 2028, with early adoption permitted. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements.ASU No. 2023-09

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740). The standard requires disaggregation of the effective rate reconciliation into standard categories, enhances disclosure of income taxes paid, and modifies other income tax-related disclosures. The standard is effective for AbbVie starting in annual periods in 2025. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. 

Note 2 Supplemental Financial InformationInterest Expense, NetThree months endedMarch 31,(in millions)20252024Interest expense$700 $660 Interest income(73)(207)Interest expense, net$627 $453 

Inventories(in millions)March 31,2025December 31, 2024Finished goods$1,441 $1,173 Work-in-process1,974 1,951 Raw materials1,111 1,057 Inventories$4,526 $4,181 

2025 Form 10-Q | 6

Property and Equipment, Net(in millions)March 31,2025December 31, 2024Property and equipment, gross$12,571 $12,267 Accumulated depreciation(7,334)(7,133)Property and equipment, net$5,237 $5,134 Depreciation expense was $181 million for the three months ended March 31, 2025 and $183 million for the three months ended March 31, 2024.

Note 3 Earnings Per ShareAbbVie grants certain restricted stock units (RSUs) that are considered to be participating securities. Due to the presence of participating securities, AbbVie calculates earnings per share (EPS) using the more dilutive of the treasury stock or the two-class method. For all periods presented, the two-class method was more dilutive.

The following table summarizes the impact of the two-class method:Three months endedMarch 31,(in