Company: ABBV
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001551152-25-000049
Chunk: 41

Company: AbbVie Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 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 endedSeptember 30,Nine months endedSeptember 30,(in millions)2025202420252024Foreign currency forward exchange contractsDesignated as cash flow hedges$46 $(45)$(108)$30 Designated as net investment hedges53 (238)(710)(16)Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax losses of $36 million into cost of products sold for foreign currency cash flow hedges and pre-tax gains of $21 million into interest expense, net for other 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 losses of $1 million for the three months and $417 million for the nine months ended September 30, 2025 and pre-tax losses of $151 million for the three months and pre-tax gains of $56 million for the nine months ended September 30, 2024.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 endedSeptember 30,Nine months endedSeptember 30,(in millions)Statement of earnings caption2025202420252024Foreign currency forward exchange contractsDesignated as cash flow hedgesCost of products sold$41 $19 $69 $41 Designated as net investment hedgesInterest expense, net37 32 108 90 Not designated as hedgesNet foreign exchange loss (gain)(1)(30)(47)(14)Interest rate swap contractsDesignated as fair value hedgesInterest expense, net6 60 108 49 Debt designated as hedged item in fair value hedgesInterest expense, net(6)(60)(108)(49)OtherInterest expense, net5 6 15 18 

2025 Form 10-Q | 13

Fair Value MeasuresThe fair value hierarchy