Company: ABBV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001551152-25-000029
Chunk: 28

Company: AbbVie Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 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 condensed consolidated balance sheets:Fair value – Derivatives in asset positionFair value –Derivatives in liability position(in millions)Balance sheet captionMarch 31,2025December 31, 2024Balance sheet captionMarch 31,2025December 31, 2024Foreign currency forward exchange contractsDesignated as cash flow hedgesPrepaid expenses and other$48 $119 Accounts payable and accrued liabilities$1 $5 Designated as cash flow hedgesOther assets1 — Other long-term liabilities— — Designated as net investment hedgesPrepaid expenses and other2 4 Accounts payable and accrued liabilities43 — Designated as net investment hedgesOther assets20 148 Other long-term liabilities35 — Not designated as hedgesPrepaid expenses and other16 42 Accounts payable and accrued liabilities38 30 Interest rate swap contractsDesignated as fair value hedgesOther assets43 — Other long-term liabilities135 231 Total derivatives$130 $313 $252 $266 While certain derivatives are subject to netting arrangements with the company’s counterparties, the company does not offset derivative assets and liabilities within the condensed consolidated balance sheets.The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):Three months endedMarch 31,(in millions)20252024Foreign currency forward exchange contractsDesignated as cash flow hedges$(19)$55 Designated as net investment hedges(193)134 Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax gains of $105 million into cost of products sold for foreign currency cash flow hedges and pre-tax gains of $21 million into interest expense, net for other 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 losses of $133