Company: ABBV
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001551152-25-000040
Chunk: 38

Company: AbbVie Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 as cash flow hedges$(135)$20 $(154)$75 Designated as net investment hedges(570)88 (763)222 Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax losses of $8 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 $283 million for the three months and $416 million for the six months ended June 30, 2025 and pre-tax gains of $50 million for the three months and $207 million for the six months ended June 30, 2024.The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI.Three months endedJune 30,Six months endedJune 30,(in millions)Statement of earnings caption2025202420252024Foreign currency forward exchange contractsDesignated as cash flow hedgesCost of products sold$29 $10 $28 $22 Designated as net investment hedgesInterest expense, net37 31 71 58 Not designated as hedgesNet foreign exchange loss(17)34 (46)16 Interest rate swap contractsDesignated as fair value hedgesInterest expense, net47 54 102 (11)Debt designated as hedged item in fair value hedgesInterest expense, net(47)(54)(102)11 OtherInterest expense, net5 6 10 12 

2025 Form 10-Q | 13

Fair Value MeasuresThe fair value hierarchy consists of the following three levels:•Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access;•Level 2 – Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and•Level