Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 330

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 330
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, retention and other termination benefits) and other integration expenses. The Allergan integration plan was substantially complete as of December 31, 2023 and the remaining accrual as of December 31, 2024 is not significant.The following table summarizes the charges associated with the Allergan acquisition integration plan:year ended December 31 (in millions)20232022Cost of products sold$89 $117 Research and development7 23 Selling, general and administrative192 399 Total charges $288 $539 

2024 Form 10-K   |  72

Note 9 Leases    

AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheets:as of December 31 (in millions)Balance sheet caption20242023AssetsOperatingOther assets$723 $744 FinanceProperty and equipment, net33 35 Total lease assets$756 $779 LiabilitiesOperatingCurrentAccounts payable and accrued liabilities$178 $166 NoncurrentOther long-term liabilities697 735 FinanceCurrentCurrent portion of long-term debt and finance lease obligations17 15 NoncurrentLong-term debt and finance lease obligations23 27 Total lease liabilities$915 $943 The following table summarizes the lease costs recognized in the consolidated statements of earnings:years ended December 31 (in millions)202420232022Operating lease cost$196 $189 $201 Short-term lease cost65 28 67 Variable lease cost86 88 71 Total lease cost$347 $305 $339 In December 2022, the company entered into an agreement to sublease a portion of its Madison, New Jersey office space through the end of the original lease maturity in 2030. As a result of this agreement, the company recognized an impairment loss on its right-of-use asset of $69 million and wrote-off the related leasehold improvements of $37 million. These losses were recorded in SG&A expense in the consolidated statements of earnings for the year ended December 31, 2022. The company used a discounted cash flows method to value the right-of-use asset to determine the impairment amount.Sublease income and finance lease costs were insignificant in 2024, 2023 and 2022.

73     |  2024 Form 10-K

The following table presents the weighted