Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 123

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 3
Chunk 123
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— 69 Not designated as hedgesPrepaid expenses and other42 41 Accounts payable and accrued liabilities30 36 Interest rate swap contractsDesignated as fair value hedgesOther assets— — Other long-term liabilities231 293 Total derivatives$313 $66  $266 $496 While certain derivatives are subject to netting arrangements with the company's counterparties, the company does not offset derivative assets and liabilities within the consolidated balance sheets.The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):years ended in December 31 (in millions)202420232022Foreign currency forward exchange contractsDesignated as cash flow hedges$192 $(2)$103 Designated as net investment hedges435 (144)395 Cross-currency swap contracts designated as cash flow hedges— (6)— Interest rate swap contracts designated as cash flow hedges— — 6 Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax gains of $126 million into cost of products sold for foreign currency cash flow hedges and pre-tax gains of $21 million into interest expense, net for treasury rate lock agreement cash flow hedges during the next 12 months.Related to AbbVie’s non-derivative, foreign currency denominated debt designated as net investment hedges, the company recognized in other comprehensive income (loss) pre-tax gains of $305 million in 2024, pre-tax losses of $252 million in 2023 and pre-tax gains of $406 million in 2022.

79     |  2024 Form 10-K

The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI.years ended December 31 (in millions)Statement of earnings caption202420232022Foreign currency forward exchange contractsDesignated as cash flow hedgesCost of products sold$73 $77 $82 Designated as net investment hedgesInterest expense, net123 112 94 Not designated as hedgesNet foreign exchange loss6 33 (156)Treasury rate lock agreements designated as cash flow hedgesInterest expense, net23