Company: ABBV
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001551152-25-000040
Chunk: 41

Company: AbbVie Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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's contingent consideration liabilities was calculated using the following significant unobservable inputs:June 30, 2025December 31, 2024RangeWeighted average(a)RangeWeighted average(a)Discount rate4.0% - 4.8%4.3%4.6% - 5.2%4.8%Probability of payment for royalties by indication100%100%100%100%Projected year of payments2025 - 203420292025 - 2034 2029(a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.There have been no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy. The following table presents the changes in fair value of total contingent consideration liabilities which are measured using Level 3 inputs:Six months endedJune 30,(in millions)20252024Beginning balance$21,666 $19,890 Additions(a)78 — Change in fair value recognized in net earnings4,313 2,136 Payments(1,408)(876)Ending balance$24,649 $21,150 (a) Additions during the six months ended June 30, 2025, represent contingent consideration liabilities related to the Nimble acquisition.The change in fair value recognized in net earnings is recorded in other expense, net in the condensed consolidated statements of earnings.Certain financial instruments are carried at historical cost or some basis other than fair value. The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of June 30, 2025 are shown in the table below:Basis of fair value measurement(in millions)Book valueApproximate fair valueQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)LiabilitiesShort-term borrowings$5,556 $5,579 $— $5,579 $— Current portion of long-term debt and finance lease obligations, excluding fair value hedges2,015 1,999 1,982 17 — Long-term debt and finance lease obligations, excluding fair value hedges and financing liability62,645 59,315 56,884 2,431 — Total liabilities$70,216 $66,893 $58,866 $8,027