Company: ABBV
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001551152-25-000020
Chunk: 340

Company: AbbVie Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 340
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 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 24 23 Cross-currency swap contracts designated as cash flow hedgesNet foreign exchange loss— (6)— Interest rate swap contractsDesignated as cash flow hedgesInterest expense, net— — (1)Designated as fair value hedgesInterest expense, net62 98 (402)Debt designated as hedged item in fair value hedgesInterest expense, net(62)(98)402 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