v3.26.1
Financial Instruments and Fair Value Measures (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Summary of amounts and location of derivatives on the condensed consolidated balance sheets
The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets:
Fair value –
Derivatives in asset position		Fair value –
Derivatives in liability position
(in millions)Balance sheet captionMarch 31,
2026		December 31,
2025		Balance sheet captionMarch 31,
2026		December 31,
2025
Foreign currency forward exchange contracts
Designated as cash flow hedgesPrepaid expenses and other$46 $35 Accounts payable and accrued liabilities$25 $51 
Designated as cash flow hedgesOther assets10 1 Other long-term liabilities— — 
Designated as net investment hedgesPrepaid expenses and other21 — Accounts payable and accrued liabilities115 220 
Designated as net investment hedgesOther assets5 — Other long-term liabilities120 228 
Not designated as hedgesPrepaid expenses and other46 25 Accounts payable and accrued liabilities24 20 
Interest rate swap contracts
Designated as fair value hedgesPrepaid expenses and other— — Accounts payable and accrued liabilities14 21 
Designated as fair value hedgesOther assets22 30 Other long-term liabilities40 — 
Designated as cash flow hedgesOther assets5 — Other long-term liabilities— — 
Total derivatives$155 $91 $338 $540 
Schedule of pre-tax amounts of derivatives designated as cash flow hedges recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
Three months ended
March 31,
(in millions)20262025
Foreign currency forward exchange contracts
Designated as cash flow hedges$34 $(19)
Designated as net investment hedges176 (193)
Interest rate swap contracts designated as cash flow hedges5 — 
Schedule of pre-tax amounts of derivatives designated as net investment hedges recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
Three months ended
March 31,
(in millions)20262025
Foreign currency forward exchange contracts
Designated as cash flow hedges$34 $(19)
Designated as net investment hedges176 (193)
Interest rate swap contracts designated as cash flow hedges5 — 
Summary of pre-tax amounts and location of derivatives recognized in the condensed consolidated statements of earnings
The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 9 for the amount of net gains (losses) reclassified out of AOCI.
Three months ended
March 31,
(in millions)Statement of earnings caption20262025
Foreign currency forward exchange contracts
Designated as cash flow hedgesCost of products sold$(7)$(1)
Designated as net investment hedgesInterest expense, net37 34 
Not designated as hedgesOther expense, net12 (29)
Interest rate swap contracts
Designated as fair value hedgesInterest expense, net(41)55 
Debt designated as hedged item in fair value hedgesInterest expense, net41 (55)
Other
Interest expense, net6 5 
Summary of bases used to measure assets and liabilities carried at fair value on a recurring basis
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, 2026 and December 31, 2025:
March 31, 2026
December 31, 2025
Basis of fair value measurementBasis of fair value measurement
(in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets
Cash and equivalents$9,391 $4,848 $4,543 $— $5,229 $4,868 $361 $— 
Money market funds and time deposits10 — 10 — 10 — 10 — 
Debt securities20 — 20 — 24 — 24 — 
Equity securities76 32 44 — 103 62 41 — 
Interest rate swap contracts27 — 27 — 30 — 30 — 
Foreign currency contracts128 — 128 — 61 — 61 — 
Total assets$9,652 $4,880 $4,772 $— $5,457 $4,930 $527 $— 
Liabilities
Interest rate swap contracts$54 $— $54 $— $21 $— $21 $— 
Foreign currency contracts284 — 284 — 519 — 519 — 
Financing liability377 — — 377 378 — — 378 
Contingent consideration27,039 — — 27,039 25,374 — — 25,374 
Total liabilities$27,754 $— $338 $27,416 $26,292 $— $540 $25,752 
Summary of significant level 3 unobservable inputs
The fair value of the company's contingent consideration liabilities was calculated using the following significant unobservable inputs:
March 31, 2026December 31, 2025
Range
Weighted average(a)
Range
Weighted average(a)
Discount rate
4.1 % - 5.0 %
4.3 %
3.7 % - 4.8 %
4.0 %
Probability of payment for royalties by indication
100 %
100 %
100 %
100 %
Projected year of payments
2026 - 2037
2030
2026 - 2037
2030
(a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.
Schedule of changes in fair value of Level 3 inputs The following table presents the changes in fair value of total contingent consideration liabilities which are measured using Level 3 inputs:
Three months ended
March 31,
(in millions)20262025
Beginning balance$25,374 $21,666 
Additions(a)
— 78 
Change in fair value recognized in net earnings2,387 1,518 
Payments(722)(549)
Ending balance$27,039 $22,713 
(a) Additions during the three months ended March 31, 2025, represent contingent consideration liabilities related to the Nimble acquisition.
Schedule of book values, approximate fair values and bases used to measure certain financial instruments The book value, fair value and bases used to measure the approximate fair values of certain financial instruments as of March 31, 2026 are shown in the table below:
Basis of fair value measurement
(in millions)Book valueFair value
Level 1		 
Level 2
Level 3
Liabilities
Current portion of long-term debt (a)
$8,265 $8,252 $8,231 $21 $— 
Long-term debt (a)
64,289 60,615 58,188 2,427 — 
Total liabilities$72,554 $68,867 $66,419 $2,448 $— 
(a) Excludes the effects of fair value hedges and financing liability.
The book value, fair value and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2025 are shown in the table below:
Basis of fair value measurement
(in millions)Book valueFair valueLevel 1Level 2Level 3
Liabilities
Short-term borrowings$2,499 $2,497 $— $2,497 $— 
Current portion of long-term debt (a)
6,016 5,985 5,965 20 — 
Long-term debt (a)
58,650 55,822 53,381 2,441 — 
Total liabilities$67,165 $64,304 $59,346 $4,958 $— 
(a) Excludes the effects of fair value hedges and financing liability.
Schedule of Long-Term Debt Instruments
In March 2026, the company issued $8.0 billion aggregate principal amount of unsecured senior notes. The following table summarizes the issued debt:
(in millions)
Senior Notes
Senior Floating Rate Notes due 2028 (a)
$750 
3.775% Senior Notes due 2028
1,500 
4.125% Senior Notes due 2031
1,250 
4.40% Senior Notes due 2033
1,250 
4.75% Senior Notes due 2036
1,500 
5.55% Senior Notes due 2056
1,250 
5.65% Senior Notes due 2066
500 
Total debt issued$8,000