Company: ABBV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001551152-25-000029
Chunk: 29

Company: AbbVie Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 million for the three months ended March 31, 2025 and pre-tax gains of $157 million for the three months ended March 31, 2024.

2025 Form 10-Q | 12

The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 10 for the amount of net gains (losses) reclassified out of AOCI.Three months endedMarch 31,(in millions)Statement of earnings caption20252024Foreign currency forward exchange contractsDesignated as cash flow hedgesCost of products sold$(1)$12 Designated as net investment hedgesInterest expense, net34 27 Not designated as hedgesNet foreign exchange loss(29)(18)Interest rate swap contractsDesignated as fair value hedgesInterest expense, net55 (65)Debt designated as hedged item in fair value hedgesInterest expense, net(55)65 OtherInterest expense, net5 6 Fair Value MeasuresThe fair value hierarchy consists of the following three levels:•Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access;•Level 2 – Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and•Level 3 – Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company’s management about the assumptions market participants would use in pricing the asset or liability.The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of March 31, 2025:Basis of fair value measurement(in millions)TotalQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)AssetsCash and equivalents$5,175 $4,834 $341 $— Money market funds and time deposits10 — 10 — Debt securities36 — 36 — Equity securities85 54 31 — Interest rate swap contracts43