Company: ABBV
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001551152-25-000040
Chunk: 37

Company: AbbVie Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 for derivative instruments designated as net investment hedges. Realized and unrealized gains and losses from these hedges are included in AOCI and the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in interest expense, net over the life of the hedging instrument.The company is a party to interest rate swap contracts designated as fair value hedges with notional amounts totaling $3.5 billion at June 30, 2025 and December 31, 2024. The effect of the hedge contracts is to change a fixed-rate interest obligation to a floating rate for that portion of the debt. AbbVie records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount.No amounts are excluded from the assessment of effectiveness for cash flow hedges or fair value hedges.

2025 Form 10-Q | 12

The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets:Fair value – Derivatives in asset positionFair value –Derivatives in liability position(in millions)Balance sheet captionJune 30,2025December 31, 2024Balance sheet captionJune 30,2025December 31, 2024Foreign currency forward exchange contractsDesignated as cash flow hedgesPrepaid expenses and other$11 $119 Accounts payable and accrued liabilities$99 $5 Designated as cash flow hedgesOther assets— — Other long-term liabilities11 — Designated as net investment hedgesPrepaid expenses and other— 4 Accounts payable and accrued liabilities274 — Designated as net investment hedgesOther assets— 148 Other long-term liabilities352 — Not designated as hedgesPrepaid expenses and other30 42 Accounts payable and accrued liabilities40 30 Interest rate swap contractsDesignated as fair value hedgesOther assets60 — Other long-term liabilities104 231 Total derivatives$101 $313 $880 $266 While certain derivatives are subject to netting arrangements with the company’s counterparties, the company does not offset derivative assets and liabilities within the condensed consolidated balance sheets.The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):Three months endedJune 30,Six months endedJune 30,(in millions)2025202420252024Foreign currency forward exchange contractsDesignated