v3.26.1
Financial Instruments and Fair Value Measures (Tables)
 6 Months Ended
Jun. 30, 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 captionJune 30,
2026		December 31,
2025		Balance sheet captionJune 30,
2026		December 31,
2025
Foreign currency forward exchange contracts
Designated as cash flow hedgesPrepaid expenses and other$100 $35 Accounts payable and accrued liabilities$15 $51 
Designated as cash flow hedgesOther assets12 1 Other long-term liabilities1 — 
Designated as net investment hedgesPrepaid expenses and other66 — Accounts payable and accrued liabilities54 220 
Designated as net investment hedgesOther assets7 — Other long-term liabilities92 228 
Not designated as hedgesPrepaid expenses and other75 25 Accounts payable and accrued liabilities59 20 
Interest rate swap contracts
Designated as fair value hedgesPrepaid expenses and other— — Accounts payable and accrued liabilities9 21 
Designated as fair value hedgesOther assets10 30 Other long-term liabilities54 — 
Designated as cash flow hedgesOther assets9 — Other long-term liabilities— — 
Total derivatives$279 $91 $284 $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
June 30,		Six months ended
June 30,
(in millions)2026202520262025
Foreign currency forward exchange contracts
Designated as cash flow hedges$62 $(135)$96 $(154)
Designated as net investment hedges90 (570)266 (763)
Interest rate swap contracts designated as cash flow hedges5 — 10 — 
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
June 30,		Six months ended
June 30,
(in millions)2026202520262025
Foreign currency forward exchange contracts
Designated as cash flow hedges$62 $(135)$96 $(154)
Designated as net investment hedges90 (570)266 (763)
Interest rate swap contracts designated as cash flow hedges5 — 10 — 
Summary of pre-tax amounts and location of derivatives recognized in the condensed consolidated statements of earnings
The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 9 for the amount of net gains (losses) reclassified out of AOCI.
Three months ended
June 30,		Six months ended
June 30,
(in millions)Statement of earnings caption2026202520262025
Foreign currency forward exchange contracts
Designated as cash flow hedgesCost of products sold$(6)$29 $(13)$28 
Designated as net investment hedgesInterest expense, net36 37 73 71 
Not designated as hedgesOther expense, net1 (17)13 (46)
Interest rate swap contracts
Designated as fair value hedgesInterest expense, net(21)47 (62)102 
Debt designated as hedged item in fair value hedgesInterest expense, net21 (47)62 (102)
Other
Interest expense, net6 5 12 10 
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 June 30, 2026 and December 31, 2025:
June 30, 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$6,569 $6,226 $343 $— $5,229 $4,868 $361 $— 
Money market funds and time deposits6 — 6 — 10 — 10 — 
Debt securities17 — 17 — 24 — 24 — 
Equity securities86 38 48 — 103 62 41 — 
Interest rate swap contracts19 — 19 — 30 — 30 — 
Foreign currency contracts260 — 260 — 61 — 61 — 
Total assets$6,957 $6,264 $693 $— $5,457 $4,930 $527 $— 
Liabilities
Interest rate swap contracts$63 $— $63 $— $21 $— $21 $— 
Foreign currency contracts221 — 221 — 519 — 519 — 
Financing liability403 — — 403 378 — — 378 
Contingent consideration27,495 — — 27,495 25,374 — — 25,374 
Total liabilities$28,182 $— $284 $27,898 $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:
June 30, 2026December 31, 2025
Range
Weighted average(a)
Range
Weighted average(a)
Discount rate
4.2 % - 5.5 %
4.5 %
3.7 % - 4.8 %
4.0 %
Probability of payment for royalties by indication(b)
38 % - 100 %
93 %
100 %
100 %
Projected year of payments(c)
2026 - 2044
2030
2026 - 2037
2030
(a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities.
(b) At June 30, 2026, the estimated probability of payment was 100% for approved Skyrizi indications and 38% for pipeline assets in combination with Skyrizi based on the weighted probabilities of achieving regulatory approval. Excludes early-stage pipeline assets with 0% estimated probability of payment.
(c) At June 30, 2026, the projected year of payments ends in 2037 for Skyrizi and in 2044 for pipeline assets in combination with Skyrizi.
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:
Six months ended
June 30,
(in millions)20262025
Beginning balance$25,374 $21,666 
Additions(a)
— 78 
Change in fair value recognized in net earnings3,905 4,313 
Payments(1,784)(1,408)
Ending balance$27,495 $24,649 
(a) Additions during the six months ended June 30, 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 June 30, 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)
$8,264 $8,258 $6,239 $2,019 $— 
Long-term debt (a)
62,238 58,500 58,086 414 — 
Total liabilities$70,502 $66,758 $64,325 $2,433 $— 
(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