Company: ABBV
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001551152-25-000040
Chunk: 48

Company: AbbVie Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 $(1,470)$260 $(2,513)Other comprehensive loss for the six months ended June 30, 2024 included foreign currency translation adjustments totaling a loss of $553 million principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling a gain of $291 million.The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss:Three months endedJune 30,Six months endedJune 30,(in millions) (brackets denote gains)2025202420252024Net investment hedging activitiesGains on derivative amount excluded from effectiveness testing(a)$(37)$(31)$(71)$(58)Tax expense8 7 15 13 Total reclassifications, net of tax$(29)$(24)$(56)$(45)Pension and post-employment benefitsAmortization of actuarial losses and other(b)$3 $9 $2 $17 Tax benefit(1)(3)(1)(4)Total reclassifications, net of tax$2 $6 $1 $13 Cash flow hedging activitiesGains on foreign currency forward exchange contracts(c)$(29)$(10)$(28)$(22)Other(a)(5)(6)(10)(12)Tax expense6 4 8 8 Total reclassifications, net of tax$(28)$(12)$(30)$(26)(a) Amounts are included in interest expense, net (see Note 8).(b) Amounts are included in the computation of net periodic benefit cost (see Note 9).(c) Amounts are included in cost of products sold (see Note 8).

2025 Form 10-Q | 21

Note 11 Income Taxes The effective tax rate was 39% for the three months and 31% for the six months ended June 30, 2025 compared to 36% for the three months and 30% for the six months ended June 30, 2024. The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to the impact of foreign operations which reflects the impact of lower income tax rates in locations outside the United States, changes in fair value of contingent consideration and business development activities.