Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 319

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 319
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 be recognized at their fair values as of the acquisition date. The valuation of assets acquired and liabilities assumed was finalized during the three months ended December 31, 2024.The following table summarizes the final fair value of assets acquired and liabilities assumed as of the acquisition date:(in millions)Assets acquired and liabilities assumedCash and equivalents$591 Accounts receivable171 Inventories211 Prepaid expenses and other current assets40 Property and equipment, net7 Intangible assets, netDeveloped product rights7,200 License agreements125 Acquired in-process research and development1,280 Other noncurrent assets273 Current portion of long-term debt(99)Accounts payable and accrued liabilities(312)Deferred income taxes(899)Other long-term liabilities(47)Total identifiable net assets8,541 Goodwill1,249 Total assets acquired and liabilities assumed$9,790 The fair value step-up adjustment to inventories of $179 million was amortized to cost of products sold when the inventory was sold to customers during the year ended December 31, 2024.

65     |  2024 Form 10-K

Intangible assets relate to $7.3 billion of definite-lived intangible assets and $1.3 billion of acquired IPR&D associated with products that have not yet received regulatory approval. The acquired definite-lived intangible assets consist of developed product rights and license agreements and are being amortized over a weighted-average estimated useful life of approximately 12 years using the estimated pattern of economic benefit. The estimated fair values of identifiable intangible assets were determined using the "income approach" which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Some of the more significant assumptions inherent in the development of these asset valuations include the estimated net cash flows for each year for each asset or product, the appropriate discount rate necessary to measure the risk inherent in each future cash flow stream, the life cycle of each asset, the potential regulatory and commercial success risk, competitive trends impacting the asset and each cash flow stream, as well as other factors.Other noncurrent assets primarily consist of $250 million of deferred tax assets. The current portion of long-term debt assumed by AbbVie was repaid concurrent with the acquisition at the fair value of $99 million. See Note 10 for additional information.Goodwill was calculated as the excess of the consideration transferred over the fair value