Company: ABBV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001551152-25-000029
Chunk: 38

Company: AbbVie Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 included foreign currency translation adjustments totaling a loss of $396 million principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling a gain of $207 million.

2025 Form 10-Q | 19

The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss:Three months endedMarch 31,(in millions) (brackets denote gains)20252024Net investment hedging activitiesGains on derivative amount excluded from effectiveness testing(a)$(34)$(27)Tax expense7 6 Total reclassifications, net of tax$(27)$(21)Pension and post-employment benefitsAmortization of actuarial losses (gains) and other(b)$(1)$8 Tax benefit— (1)Total reclassifications, net of tax$(1)$7 Cash flow hedging activitiesLosses (gains) on foreign currency forward exchange contracts(c)$1 $(12)Other(a)(5)(6)Tax expense2 4 Total reclassifications, net of tax$(2)$(14)(a) Amounts are included in interest expense, net (see Note 8).(b) Amounts are included in the computation of net periodic benefit cost (see Note 9).(c) Amounts are included in cost of products sold (see Note 8).

Note 11 Income Taxes The effective tax rate was 22% for the three months ended March 31, 2025 and 2024. The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to the impact of foreign operations which reflects the impact of lower income tax rates in locations outside the United States, changes in fair value of contingent consideration and business development activities. 

Note 12 Legal Proceedings and Contingencies AbbVie is subject to contingencies, such as various claims, legal proceedings and investigations regarding product liability, intellectual property, commercial, securities and other matters that arise in the normal course of business. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount within a probable range is recorded. The recorded accrual balance for litigation was approximately $1.8 billion as of March 31, 2025 and