☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
(Exact name of registrant as specified in its charter)
|
||
Delaware
|
|
32-0375147
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. employer identification number)
|
Large Accelerated Filer
|
☒
|
Accelerated Filer
|
☐
|
Non-Accelerated Filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
|
ABBV
|
|
New York Stock Exchange
|
|
|
|
|
Chicago Stock Exchange
|
1.375% Senior Notes due 2024
|
|
ABBV24
|
|
New York Stock Exchange
|
0.750% Senior Notes due 2027
|
|
ABBV27
|
|
New York Stock Exchange
|
2.125% Senior Notes due 2028
|
|
ABBV28
|
|
New York Stock Exchange
|
1.250% Senior Notes due 2031
|
|
ABBV31
|
|
New York Stock Exchange
|
|
|
Page
|
|
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
2020 Form 10-Q |
|
1
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions, except per share data)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net revenues
|
|
$
|
10,425
|
|
|
$
|
8,255
|
|
|
$
|
19,044
|
|
|
$
|
16,083
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
|
3,711
|
|
|
1,819
|
|
|
5,653
|
|
|
3,513
|
|
||||
Selling, general and administrative
|
|
3,527
|
|
|
1,654
|
|
|
5,222
|
|
|
3,334
|
|
||||
Research and development
|
|
1,582
|
|
|
1,291
|
|
|
2,961
|
|
|
2,580
|
|
||||
Acquired in-process research and development
|
|
853
|
|
|
91
|
|
|
853
|
|
|
246
|
|
||||
Total operating costs and expenses
|
|
9,673
|
|
|
4,855
|
|
|
14,689
|
|
|
9,673
|
|
||||
Operating earnings
|
|
752
|
|
|
3,400
|
|
|
4,355
|
|
|
6,410
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
614
|
|
|
309
|
|
|
1,042
|
|
|
634
|
|
||||
Net foreign exchange loss
|
|
29
|
|
|
6
|
|
|
34
|
|
|
12
|
|
||||
Other expense, net
|
|
802
|
|
|
2,278
|
|
|
874
|
|
|
2,413
|
|
||||
Earnings (loss) before income tax expense
|
|
(693
|
)
|
|
807
|
|
|
2,405
|
|
|
3,351
|
|
||||
Income tax expense
|
|
46
|
|
|
66
|
|
|
134
|
|
|
154
|
|
||||
Net earnings (loss)
|
|
(739
|
)
|
|
741
|
|
|
2,271
|
|
|
3,197
|
|
||||
Net loss attributable to noncontrolling interest
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Net earnings (loss) attributable to AbbVie Inc.
|
|
$
|
(738
|
)
|
|
$
|
741
|
|
|
$
|
2,272
|
|
|
$
|
3,197
|
|
|
|
|
|
|
|
|
|
|
||||||||
Per share data
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to AbbVie Inc.
|
|
$
|
(0.46
|
)
|
|
$
|
0.49
|
|
|
$
|
1.44
|
|
|
$
|
2.15
|
|
Diluted earnings (loss) per share attributable to AbbVie Inc.
|
|
$
|
(0.46
|
)
|
|
$
|
0.49
|
|
|
$
|
1.43
|
|
|
$
|
2.14
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average basic shares outstanding
|
|
1,647
|
|
|
1,480
|
|
|
1,564
|
|
|
1,480
|
|
||||
Weighted-average diluted shares outstanding
|
|
1,647
|
|
|
1,484
|
|
|
1,568
|
|
|
1,483
|
|
2020 Form 10-Q |
|
2
|
2020 Form 10-Q |
|
3
|
(in millions, except share data)
|
June 30,
2020 |
|
December 31,
2019 |
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and equivalents
|
$
|
6,017
|
|
|
$
|
39,924
|
|
Short-term investments
|
23
|
|
|
—
|
|
||
Accounts receivable, net
|
8,354
|
|
|
5,428
|
|
||
Inventories
|
4,059
|
|
|
1,813
|
|
||
Prepaid expenses and other
|
2,803
|
|
|
2,354
|
|
||
Total current assets
|
21,256
|
|
|
49,519
|
|
||
|
|
|
|
||||
Investments
|
225
|
|
|
93
|
|
||
Property and equipment, net
|
4,908
|
|
|
2,962
|
|
||
Intangible assets, net
|
76,463
|
|
|
18,649
|
|
||
Goodwill
|
42,669
|
|
|
15,604
|
|
||
Other assets
|
4,009
|
|
|
2,288
|
|
||
Total assets
|
$
|
149,530
|
|
|
$
|
89,115
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Short-term borrowings
|
$
|
64
|
|
|
$
|
—
|
|
Current portion of long-term debt and finance lease obligations
|
5,307
|
|
|
3,753
|
|
||
Accounts payable and accrued liabilities
|
19,275
|
|
|
11,832
|
|
||
Total current liabilities
|
24,646
|
|
|
15,585
|
|
||
|
|
|
|
||||
Long-term debt and finance lease obligations
|
82,061
|
|
|
62,975
|
|
||
Deferred income taxes
|
4,785
|
|
|
1,130
|
|
||
Other long-term liabilities
|
23,306
|
|
|
17,597
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders’ equity (deficit)
|
|
|
|
||||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,788,423,670 shares issued as of June 30, 2020 and 1,781,582,608 as of December 31, 2019
|
18
|
|
|
18
|
|
||
Common stock held in treasury, at cost, 24,140,541 shares as of June 30, 2020 and 302,671,146 as of December 31, 2019
|
(1,958
|
)
|
|
(24,504
|
)
|
||
Additional paid-in capital
|
16,953
|
|
|
15,193
|
|
||
Retained earnings
|
3,130
|
|
|
4,717
|
|
||
Accumulated other comprehensive loss
|
(3,435
|
)
|
|
(3,596
|
)
|
||
Total stockholders’ equity (deficit)
|
14,708
|
|
|
(8,172
|
)
|
||
Noncontrolling interest
|
24
|
|
|
—
|
|
||
Total equity (deficit)
|
14,732
|
|
|
(8,172
|
)
|
||
|
|
|
|
||||
Total liabilities and equity
|
$
|
149,530
|
|
|
$
|
89,115
|
|
2020 Form 10-Q |
|
4
|
(in millions)
|
Common shares outstanding
|
|
Common stock
|
|
Treasury stock
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive loss
|
|
Noncontrolling interest
|
|
Total
|
|||||||||||||||
Balance at March 31, 2019
|
1,478
|
|
|
$
|
18
|
|
|
$
|
(24,502
|
)
|
|
$
|
14,940
|
|
|
$
|
4,234
|
|
|
$
|
(2,516
|
)
|
|
$
|
—
|
|
|
$
|
(7,826
|
)
|
Net earnings attributable to AbbVie Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
741
|
|
|
—
|
|
|
—
|
|
|
741
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,591
|
)
|
|
—
|
|
|
—
|
|
|
(1,591
|
)
|
|||||||
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||||
Stock-based compensation plans and other
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||||
Balance at June 30, 2019
|
1,478
|
|
|
$
|
18
|
|
|
$
|
(24,505
|
)
|
|
$
|
15,028
|
|
|
$
|
3,384
|
|
|
$
|
(2,491
|
)
|
|
$
|
—
|
|
|
$
|
(8,566
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at March 31, 2020
|
1,477
|
|
|
$
|
18
|
|
|
$
|
(25,110
|
)
|
|
$
|
15,401
|
|
|
$
|
5,973
|
|
|
$
|
(3,697
|
)
|
|
$
|
—
|
|
|
$
|
(7,415
|
)
|
Net loss attributable to AbbVie Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(738
|
)
|
|
—
|
|
|
—
|
|
|
(738
|
)
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
262
|
|
|
—
|
|
|
262
|
|
|||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,105
|
)
|
|
—
|
|
|
—
|
|
|
(2,105
|
)
|
|||||||
Common shares and equity awards issued for acquisition of Allergan plc
|
286
|
|
|
—
|
|
|
23,166
|
|
|
1,243
|
|
|
|
|
|
—
|
|
|
—
|
|
|
24,409
|
|
|||||||
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|||||||
Stock-based compensation plans and other
|
1
|
|
|
—
|
|
|
5
|
|
|
309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
314
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|||||||
Balance at June 30, 2020
|
1,764
|
|
|
$
|
18
|
|
|
$
|
(1,958
|
)
|
|
$
|
16,953
|
|
|
$
|
3,130
|
|
|
$
|
(3,435
|
)
|
|
$
|
24
|
|
|
$
|
14,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2018
|
1,479
|
|
|
$
|
18
|
|
|
$
|
(24,108
|
)
|
|
$
|
14,756
|
|
|
$
|
3,368
|
|
|
$
|
(2,480
|
)
|
|
$
|
—
|
|
|
$
|
(8,446
|
)
|
Net earnings attributable to AbbVie Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,197
|
|
|
—
|
|
|
—
|
|
|
3,197
|
|
|||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,181
|
)
|
|
—
|
|
|
—
|
|
|
(3,181
|
)
|
|||||||
Purchases of treasury stock
|
(5
|
)
|
|
—
|
|
|
(422
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(422
|
)
|
|||||||
Stock-based compensation plans and other
|
4
|
|
|
—
|
|
|
25
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|||||||
Balance at June 30, 2019
|
1,478
|
|
|
$
|
18
|
|
|
$
|
(24,505
|
)
|
|
$
|
15,028
|
|
|
$
|
3,384
|
|
|
$
|
(2,491
|
)
|
|
$
|
—
|
|
|
$
|
(8,566
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2019
|
1,479
|
|
|
$
|
18
|
|
|
$
|
(24,504
|
)
|
|
$
|
15,193
|
|
|
$
|
4,717
|
|
|
$
|
(3,596
|
)
|
|
$
|
—
|
|
|
$
|
(8,172
|
)
|
Net earnings attributable to AbbVie Inc.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,272
|
|
|
—
|
|
|
—
|
|
|
2,272
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
—
|
|
|
161
|
|
|||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,859
|
)
|
|
—
|
|
|
—
|
|
|
(3,859
|
)
|
|||||||
Common shares and equity awards issued for acquisition of Allergan plc
|
286
|
|
|
—
|
|
|
23,166
|
|
|
1,243
|
|
|
|
|
|
—
|
|
|
—
|
|
|
24,409
|
|
|||||||
Purchases of treasury stock
|
(7
|
)
|
|
—
|
|
|
(662
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(662
|
)
|
|||||||
Stock-based compensation plans and other
|
6
|
|
|
—
|
|
|
42
|
|
|
517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
559
|
|
|||||||
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|||||||
Balance at June 30, 2020
|
1,764
|
|
|
$
|
18
|
|
|
$
|
(1,958
|
)
|
|
$
|
16,953
|
|
|
$
|
3,130
|
|
|
$
|
(3,435
|
)
|
|
$
|
24
|
|
|
$
|
14,732
|
|
2020 Form 10-Q |
|
5
|
|
Six months ended
June 30, |
||||||
(in millions) (brackets denote cash outflows)
|
2020
|
|
2019
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net earnings
|
$
|
2,271
|
|
|
$
|
3,197
|
|
Adjustments to reconcile net earnings to net cash from operating activities:
|
|
|
|
||||
Depreciation
|
264
|
|
|
232
|
|
||
Amortization of intangible assets
|
1,850
|
|
|
773
|
|
||
Deferred income taxes
|
(257
|
)
|
|
72
|
|
||
Change in fair value of contingent consideration liabilities
|
881
|
|
|
2,473
|
|
||
Stock-based compensation
|
455
|
|
|
276
|
|
||
Upfront costs and milestones related to collaborations
|
943
|
|
|
321
|
|
||
Other, net
|
434
|
|
|
(10
|
)
|
||
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
||||
Accounts receivable
|
(543
|
)
|
|
(96
|
)
|
||
Inventories
|
(304
|
)
|
|
(288
|
)
|
||
Prepaid expenses and other assets
|
240
|
|
|
(270
|
)
|
||
Accounts payable and other liabilities
|
466
|
|
|
(366
|
)
|
||
Income tax assets and liabilities, net
|
204
|
|
|
(820
|
)
|
||
Cash flows from operating activities
|
6,904
|
|
|
5,494
|
|
||
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Acquisition of businesses, net of cash acquired
|
(38,138
|
)
|
|
—
|
|
||
Other acquisitions and investments
|
(192
|
)
|
|
(440
|
)
|
||
Acquisitions of property and equipment
|
(302
|
)
|
|
(235
|
)
|
||
Purchases of investment securities
|
(32
|
)
|
|
(558
|
)
|
||
Sales and maturities of investment securities
|
1,429
|
|
|
1,066
|
|
||
Other, net
|
1,454
|
|
|
—
|
|
||
Cash flows from investing activities
|
(35,781
|
)
|
|
(167
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
||||
Net change in commercial paper borrowings
|
—
|
|
|
(393
|
)
|
||
Repayments of other short-term borrowings
|
—
|
|
|
(3,000
|
)
|
||
Proceeds from issuance of long-term debt
|
3,000
|
|
|
—
|
|
||
Repayments of long-term debt and finance lease obligations
|
(3,763
|
)
|
|
(4
|
)
|
||
Debt issuance costs
|
(20
|
)
|
|
(171
|
)
|
||
Dividends paid
|
(3,515
|
)
|
|
(3,180
|
)
|
||
Purchases of treasury stock
|
(662
|
)
|
|
(623
|
)
|
||
Proceeds from the exercise of stock options
|
77
|
|
|
5
|
|
||
Payments of contingent consideration liabilities
|
(129
|
)
|
|
(108
|
)
|
||
Other, net
|
20
|
|
|
21
|
|
||
Cash flows from financing activities
|
(4,992
|
)
|
|
(7,453
|
)
|
||
Effect of exchange rate changes on cash and equivalents
|
(38
|
)
|
|
9
|
|
||
Net change in cash and equivalents
|
(33,907
|
)
|
|
(2,117
|
)
|
||
Cash and equivalents, beginning of period
|
39,924
|
|
|
7,289
|
|
||
|
|
|
|
||||
Cash and equivalents, end of period
|
$
|
6,017
|
|
|
$
|
5,172
|
|
|
|
|
|
||||
Supplemental schedule of non-cash investing and financing activities
|
|
|
|
||||
Issuance of common shares associated with acquisitions of businesses
|
$
|
23,979
|
|
|
$
|
—
|
|
2020 Form 10-Q |
|
6
|
|
2020 Form 10-Q |
|
7
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest expense
|
|
$
|
632
|
|
|
$
|
358
|
|
|
$
|
1,195
|
|
|
$
|
745
|
|
Interest income
|
|
(18
|
)
|
|
(49
|
)
|
|
(153
|
)
|
|
(111
|
)
|
||||
Interest expense, net
|
|
$
|
614
|
|
|
$
|
309
|
|
|
$
|
1,042
|
|
|
$
|
634
|
|
(in millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Finished goods
|
$
|
1,968
|
|
|
$
|
485
|
|
Work-in-process
|
1,363
|
|
|
942
|
|
||
Raw materials
|
728
|
|
|
386
|
|
||
Inventories
|
$
|
4,059
|
|
|
$
|
1,813
|
|
(in millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Property and equipment, gross
|
$
|
10,327
|
|
|
$
|
8,188
|
|
Accumulated depreciation
|
(5,419
|
)
|
|
(5,226
|
)
|
||
Property and equipment, net
|
$
|
4,908
|
|
|
$
|
2,962
|
|
2020 Form 10-Q |
|
8
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions, except per share data)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Basic EPS
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) attributable to AbbVie Inc.
|
|
$
|
(738
|
)
|
|
$
|
741
|
|
|
$
|
2,272
|
|
|
$
|
3,197
|
|
Earnings allocated to participating securities
|
|
18
|
|
|
8
|
|
|
28
|
|
|
17
|
|
||||
Earnings available to common shareholders
|
|
$
|
(756
|
)
|
|
$
|
733
|
|
|
$
|
2,244
|
|
|
$
|
3,180
|
|
Weighted-average basic shares outstanding
|
|
1,647
|
|
|
1,480
|
|
|
1,564
|
|
|
1,480
|
|
||||
Basic earnings (loss) per share attributable to AbbVie Inc.
|
|
$
|
(0.46
|
)
|
|
$
|
0.49
|
|
|
$
|
1.44
|
|
|
$
|
2.15
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) attributable to AbbVie Inc.
|
|
$
|
(738
|
)
|
|
$
|
741
|
|
|
$
|
2,272
|
|
|
$
|
3,197
|
|
Earnings allocated to participating securities
|
|
18
|
|
|
8
|
|
|
28
|
|
|
17
|
|
||||
Earnings available to common shareholders
|
|
$
|
(756
|
)
|
|
$
|
733
|
|
|
$
|
2,244
|
|
|
$
|
3,180
|
|
Weighted-average shares of common stock outstanding
|
|
1,647
|
|
|
1,480
|
|
|
1,564
|
|
|
1,480
|
|
||||
Effect of dilutive securities
|
|
—
|
|
|
4
|
|
|
4
|
|
|
3
|
|
||||
Weighted-average diluted shares outstanding
|
|
1,647
|
|
|
1,484
|
|
|
1,568
|
|
|
1,483
|
|
||||
Diluted earnings (loss) per share attributable to AbbVie Inc.
|
|
$
|
(0.46
|
)
|
|
$
|
0.49
|
|
|
$
|
1.43
|
|
|
$
|
2.14
|
|
|
2020 Form 10-Q |
|
9
|
(a)
|
Represents cash consideration transferred of $120.30 per outstanding Allergan ordinary share based on 330 million Allergan ordinary shares outstanding at closing.
|
(b)
|
Represents the acquisition date fair value of 286 million shares of AbbVie common stock issued to Allergan shareholders based on the exchange ratio of 0.8660 AbbVie shares for each outstanding Allergan ordinary share at the May 8, 2020 closing price of $83.96 per share.
|
(c)
|
Represents the pre-acquisition service portion of the fair value of 11 million AbbVie stock options and 8 million RSUs issued to Allergan equity award holders.
|
2020 Form 10-Q |
|
10
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net revenues
|
|
$
|
11,542
|
|
|
$
|
12,267
|
|
|
$
|
23,761
|
|
|
$
|
23,657
|
|
Net earnings (loss)
|
|
53
|
|
|
(1,735
|
)
|
|
3,312
|
|
|
(3,726
|
)
|
2020 Form 10-Q |
|
11
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
United States - Janssen's share of profits (included in cost of products sold)
|
|
$
|
493
|
|
|
$
|
422
|
|
|
$
|
943
|
|
|
$
|
808
|
|
International - AbbVie's share of profits (included in net revenues)
|
|
233
|
|
|
213
|
|
|
499
|
|
|
406
|
|
||||
Global - AbbVie's share of other costs (included in respective line items)
|
|
67
|
|
|
77
|
|
|
137
|
|
|
149
|
|
2020 Form 10-Q |
|
12
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Genentech's share of profits, including royalties (included in cost of products sold)
|
|
$
|
123
|
|
|
$
|
69
|
|
|
$
|
251
|
|
|
$
|
131
|
|
AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A)
|
|
11
|
|
|
10
|
|
|
25
|
|
|
18
|
|
||||
AbbVie's share of development costs (included in R&D)
|
|
36
|
|
|
30
|
|
|
61
|
|
|
62
|
|
|
(in millions)
|
|
||
Balance as of December 31, 2019
|
$
|
15,604
|
|
Additions(a)
|
27,044
|
|
|
Foreign currency translation adjustments
|
21
|
|
|
Balance as of June 30, 2020
|
$
|
42,669
|
|
2020 Form 10-Q |
|
13
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
(in millions)
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Net
carrying amount |
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Net
carrying amount |
||||||||||||
Definite-lived intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Developed product rights
|
$
|
78,142
|
|
|
$
|
(7,944
|
)
|
|
$
|
70,198
|
|
|
$
|
19,547
|
|
|
$
|
(6,405
|
)
|
|
$
|
13,142
|
|
License agreements
|
7,828
|
|
|
(2,603
|
)
|
|
5,225
|
|
|
7,798
|
|
|
(2,291
|
)
|
|
5,507
|
|
||||||
Total definite-lived intangible assets
|
$
|
85,970
|
|
|
$
|
(10,547
|
)
|
|
$
|
75,423
|
|
|
$
|
27,345
|
|
|
$
|
(8,696
|
)
|
|
$
|
18,649
|
|
Indefinite-lived research and development
|
1,040
|
|
|
—
|
|
|
1,040
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total intangible assets, net
|
$
|
87,010
|
|
|
$
|
(10,547
|
)
|
|
$
|
76,463
|
|
|
$
|
27,345
|
|
|
$
|
(8,696
|
)
|
|
$
|
18,649
|
|
2020 Form 10-Q |
|
14
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||
|
2020
|
|
2020
|
||||||||||
(in millions)
|
Severance and employee benefits
|
Other integration
|
|
Severance and employee benefits
|
Other integration
|
||||||||
Cost of products sold
|
$
|
33
|
|
$
|
1
|
|
|
$
|
33
|
|
$
|
1
|
|
Research and development
|
132
|
|
44
|
|
|
132
|
|
44
|
|
||||
Selling, general and administrative
|
318
|
|
60
|
|
|
318
|
|
98
|
|
||||
Total charges
|
$
|
483
|
|
$
|
105
|
|
|
$
|
483
|
|
$
|
143
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||
|
2020
|
|
2020
|
||||||||||
(in millions)
|
Severance and employee benefits
|
Other integration
|
|
Severance and employee benefits
|
Other integration
|
||||||||
Charges
|
$
|
394
|
|
$
|
105
|
|
|
$
|
394
|
|
$
|
143
|
|
Payments and other adjustments
|
(46
|
)
|
(98
|
)
|
|
(46
|
)
|
(136
|
)
|
||||
Accrued balance as of June 30, 2020
|
$
|
348
|
|
$
|
7
|
|
|
$
|
348
|
|
$
|
7
|
|
(in millions)
|
|
||
Accrued balance as of December 31, 2019
|
$
|
140
|
|
Restructuring charges
|
29
|
|
|
Payments and other adjustments
|
(67
|
)
|
|
Accrued balance as of June 30, 2020
|
$
|
102
|
|
2020 Form 10-Q |
|
15
|
|
2020 Form 10-Q |
|
16
|
|
Fair value –
Derivatives in asset position |
|
Fair value –
Derivatives in liability position |
||||||||||||
(in millions)
|
Balance sheet caption
|
June 30,
2020 |
December 31, 2019
|
|
Balance sheet caption
|
June 30,
2020 |
December 31, 2019
|
||||||||
Foreign currency forward exchange contracts
|
|
|
|
|
|
|
|
||||||||
Designated as cash flow hedges
|
Prepaid expenses and other
|
$
|
20
|
|
$
|
3
|
|
|
Accounts payable and accrued liabilities
|
$
|
2
|
|
$
|
14
|
|
Designated as cash flow hedges
|
Other assets
|
2
|
|
—
|
|
|
Other long-term liabilities
|
1
|
|
—
|
|
||||
Designated as net investment hedges
|
Prepaid expenses and other
|
14
|
|
—
|
|
|
Accounts payable and accrued liabilities
|
16
|
|
24
|
|
||||
Not designated as hedges
|
Prepaid expenses and other
|
17
|
|
19
|
|
|
Accounts payable and accrued liabilities
|
11
|
|
18
|
|
||||
Interest rate swap contracts
|
|
|
|
|
|
|
|
||||||||
Designated as cash flow hedges
|
Prepaid expenses and other
|
—
|
|
—
|
|
|
Accounts payable and accrued liabilities
|
9
|
|
—
|
|
||||
Designated as cash flow hedges
|
Other assets
|
—
|
|
3
|
|
|
Other long-term liabilities
|
38
|
|
—
|
|
||||
Designated as fair value hedges
|
Prepaid expenses and other
|
14
|
|
—
|
|
|
Accounts payable and accrued liabilities
|
—
|
|
2
|
|
||||
Designated as fair value hedges
|
Other assets
|
156
|
|
28
|
|
|
Other long-term liabilities
|
—
|
|
74
|
|
||||
Total derivatives
|
|
$
|
223
|
|
$
|
53
|
|
|
|
$
|
77
|
|
$
|
132
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Foreign currency forward exchange contracts
|
|
|
|
|
|
|
|
|
||||||||
Designated as cash flow hedges
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
$
|
47
|
|
|
$
|
5
|
|
Designated as net investment hedges
|
|
(16
|
)
|
|
10
|
|
|
24
|
|
|
10
|
|
||||
Interest rate swap contracts designated as cash flow hedges
|
|
(6
|
)
|
|
—
|
|
|
(52
|
)
|
|
—
|
|
2020 Form 10-Q |
|
17
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
Statement of earnings caption
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Foreign currency forward exchange contracts
|
|
|
|
|
|
|
|
|
|
||||||||
Designated as cash flow hedges
|
Cost of products sold
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
77
|
|
Designated as net investment hedges
|
Interest expense, net
|
|
5
|
|
|
9
|
|
|
13
|
|
|
9
|
|
||||
Not designated as hedges
|
Net foreign exchange loss
|
|
3
|
|
|
(25
|
)
|
|
5
|
|
|
(40
|
)
|
||||
Treasury rate lock agreements designated as cash flow hedges
|
Interest expense, net
|
|
6
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Interest rate swap contracts
|
|
|
|
|
|
|
|
|
|
||||||||
Designated as cash flow hedges
|
Interest expense, net
|
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Designated as fair value hedges
|
Interest expense, net
|
|
37
|
|
|
253
|
|
|
397
|
|
|
365
|
|
||||
Debt designated as hedged item in fair value hedges
|
Interest expense, net
|
|
(37
|
)
|
|
(253
|
)
|
|
(397
|
)
|
|
(365
|
)
|
•
|
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 observable in the market; and
|
•
|
Level 3 – Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company’s management about the assumptions market participants would use in pricing the asset or liability.
|
|
|
|
Basis of fair value measurement
|
||||||||||||
(in millions)
|
Total
|
|
Quoted prices in active markets for
identical assets
(Level 1) |
|
Significant other
observable
inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and equivalents
|
$
|
6,017
|
|
|
$
|
1,432
|
|
|
$
|
4,585
|
|
|
$
|
—
|
|
Money market funds and time deposits
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Debt securities
|
50
|
|
|
—
|
|
|
50
|
|
|
—
|
|
||||
Equity securities
|
95
|
|
|
95
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swap contracts
|
170
|
|
|
—
|
|
|
170
|
|
|
—
|
|
||||
Foreign currency contracts
|
53
|
|
|
—
|
|
|
53
|
|
|
—
|
|
||||
Total assets
|
$
|
6,397
|
|
|
$
|
1,527
|
|
|
$
|
4,870
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
Foreign currency contracts
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Contingent consideration
|
8,213
|
|
|
—
|
|
|
—
|
|
|
8,213
|
|
||||
Total liabilities
|
$
|
8,290
|
|
|
$
|
—
|
|
|
$
|
77
|
|
|
$
|
8,213
|
|
2020 Form 10-Q |
|
18
|
|
|
|
Basis of fair value measurement
|
||||||||||||
(in millions)
|
Total
|
|
Quoted prices in active markets for
identical assets
(Level 1) |
|
Significant other
observable
inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and equivalents
|
$
|
39,924
|
|
|
$
|
1,542
|
|
|
$
|
38,382
|
|
|
$
|
—
|
|
Debt securities
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Equity securities
|
24
|
|
|
24
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swap contracts
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
||||
Foreign currency contracts
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Total assets
|
$
|
40,004
|
|
|
$
|
1,566
|
|
|
$
|
38,438
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
—
|
|
Foreign currency contracts
|
56
|
|
|
—
|
|
|
56
|
|
|
—
|
|
||||
Contingent consideration
|
7,340
|
|
|
—
|
|
|
—
|
|
|
7,340
|
|
||||
Total liabilities
|
$
|
7,472
|
|
|
$
|
—
|
|
|
$
|
132
|
|
|
$
|
7,340
|
|
|
Range
|
Weighted average(a)
|
|
Discount rate
|
0.5% - 2.6%
|
1.6
|
%
|
Probability of payment for unachieved milestones
|
16% - 57%
|
54
|
%
|
Probability of payment for royalties by indication(b)
|
16% - 100%
|
89
|
%
|
Projected year of payments
|
2020 - 2034
|
2027
|
|
2020 Form 10-Q |
|
19
|
|
|
Six months ended
June 30, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
Beginning balance
|
|
$
|
7,340
|
|
|
$
|
4,483
|
|
Additions(a)
|
|
121
|
|
|
—
|
|
||
Change in fair value recognized in net earnings
|
|
881
|
|
|
2,473
|
|
||
Payments
|
|
(129
|
)
|
|
(167
|
)
|
||
Ending balance
|
|
$
|
8,213
|
|
|
$
|
6,789
|
|
|
|
|
|
Basis of fair value measurement
|
||||||||||||||
(in millions)
|
Book value
|
Approximate fair value
|
|
Quoted prices
in active markets for
identical assets
(Level 1) |
|
Significant
other
observable
inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
$
|
64
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
$
|
—
|
|
Current portion of long-term debt and finance lease obligations, excluding fair value hedges
|
5,293
|
|
5,325
|
|
|
4,550
|
|
|
775
|
|
|
—
|
|
|||||
Long-term debt and finance lease obligations, excluding fair value hedges
|
81,740
|
|
90,288
|
|
|
88,696
|
|
|
1,592
|
|
|
—
|
|
|||||
Total liabilities
|
$
|
87,097
|
|
$
|
95,677
|
|
|
$
|
93,246
|
|
|
$
|
2,431
|
|
|
$
|
—
|
|
|
|
|
|
Basis of fair value measurement
|
||||||||||||||
(in millions)
|
Book value
|
Approximate fair value
|
|
Quoted prices
in active markets for
identical assets
(Level 1) |
|
Significant
other
observable
inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges
|
$
|
3,755
|
|
$
|
3,760
|
|
|
$
|
3,753
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Long-term debt and finance lease obligations, excluding fair value hedges
|
63,021
|
|
66,651
|
|
|
66,631
|
|
|
20
|
|
|
—
|
|
|||||
Total liabilities
|
$
|
66,776
|
|
$
|
70,411
|
|
|
$
|
70,384
|
|
|
$
|
27
|
|
|
$
|
—
|
|
2020 Form 10-Q |
|
20
|
(dollars in millions)
|
June 30, 2020
|
||
Senior USD notes
|
|
||
3.375% Senior Notes due 2020
|
$
|
650
|
|
4.875% Senior Notes due 2021
|
450
|
|
|
5.000% Senior Notes due 2021
|
1,200
|
|
|
3.450% Senior Notes due 2022
|
2,878
|
|
|
3.250% Senior Notes due 2022
|
1,700
|
|
|
2.800% Senior Notes due 2023
|
350
|
|
|
3.850% Senior Notes due 2024
|
1,032
|
|
|
3.800% Senior Notes due 2025
|
3,021
|
|
|
4.550% Senior Notes due 2035
|
1,789
|
|
|
4.625% Senior Notes due 2042
|
457
|
|
|
4.850% Senior Notes due 2044
|
1,074
|
|
|
4.750% Senior Notes due 2045
|
881
|
|
|
Senior Euro notes
|
|
||
Floating Rate Notes due 2020 (€700 principal)
|
788
|
|
|
0.500% Senior Notes due 2021 (€750 principal)
|
845
|
|
|
1.500% Senior Notes due 2023 (€500 principal)
|
563
|
|
|
1.250% Senior Notes due 2024 (€700 principal)
|
788
|
|
|
2.625% Senior Notes due 2028 (€500 principal)
|
563
|
|
|
2.125% Senior Notes due 2029 (€550 principal)
|
619
|
|
|
Unamortized purchase price adjustments of Allergan debt
|
1,312
|
|
|
Total acquired debt outstanding
|
$
|
20,960
|
|
2020 Form 10-Q |
|
21
|
|
|
Defined
benefit plans |
|
Other post-
employment plans |
||||||||||||||||||||||||||||
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||
Service cost
|
$
|
92
|
|
|
$
|
68
|
|
|
$
|
184
|
|
|
$
|
135
|
|
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
21
|
|
|
$
|
13
|
|
Interest cost
|
67
|
|
|
66
|
|
|
128
|
|
|
130
|
|
|
8
|
|
|
9
|
|
|
17
|
|
|
15
|
|
||||||||
Expected return on plan assets
|
(143
|
)
|
|
(119
|
)
|
|
(278
|
)
|
|
(238
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization of actuarial losses and prior service cost (credit)
|
59
|
|
|
29
|
|
|
114
|
|
|
55
|
|
|
4
|
|
|
1
|
|
|
10
|
|
|
—
|
|
||||||||
Net periodic benefit cost
|
$
|
75
|
|
|
$
|
44
|
|
|
$
|
148
|
|
|
$
|
82
|
|
|
$
|
21
|
|
|
$
|
17
|
|
|
$
|
48
|
|
|
$
|
28
|
|
2020 Form 10-Q |
|
22
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Cost of products sold
|
|
$
|
11
|
|
|
$
|
5
|
|
|
$
|
26
|
|
|
$
|
20
|
|
Research and development
|
|
54
|
|
|
33
|
|
|
146
|
|
|
105
|
|
||||
Selling, general and administrative
|
|
171
|
|
|
49
|
|
|
283
|
|
|
151
|
|
||||
Pre-tax compensation expense
|
|
236
|
|
|
87
|
|
|
455
|
|
|
276
|
|
||||
Tax benefit
|
|
38
|
|
|
16
|
|
|
77
|
|
|
49
|
|
||||
After-tax compensation expense
|
|
$
|
198
|
|
|
$
|
71
|
|
|
$
|
378
|
|
|
$
|
227
|
|
2020
|
|
2019
|
||||||||||||
Date Declared
|
|
Payment Date
|
|
Dividend Per Share
|
|
Date Declared
|
|
Payment Date
|
|
Dividend Per Share
|
||||
06/17/20
|
|
08/14/20
|
|
$
|
1.18
|
|
|
11/01/19
|
|
02/14/20
|
|
$
|
1.18
|
|
02/20/20
|
|
05/15/20
|
|
$
|
1.18
|
|
|
09/06/19
|
|
11/15/19
|
|
$
|
1.07
|
|
|
|
|
|
|
|
|
06/20/19
|
|
08/15/19
|
|
$
|
1.07
|
|
|
|
|
|
|
|
|
|
02/21/19
|
|
05/15/19
|
|
$
|
1.07
|
|
2020 Form 10-Q |
|
23
|
(in millions)
|
Foreign currency
translation adjustments |
|
Net investment
hedging activities
|
|
Pension
and post-employment
benefits |
|
Cash flow hedging
activities |
|
Total
|
||||||||||
Balance as of December 31, 2019
|
$
|
(928
|
)
|
|
$
|
9
|
|
|
$
|
(2,965
|
)
|
|
$
|
288
|
|
|
$
|
(3,596
|
)
|
Other comprehensive income (loss) before reclassifications
|
214
|
|
|
(131
|
)
|
|
1
|
|
|
(2
|
)
|
|
82
|
|
|||||
Net losses (gains) reclassified from accumulated other comprehensive loss
|
—
|
|
|
(10
|
)
|
|
98
|
|
|
(9
|
)
|
|
79
|
|
|||||
Net current-period other comprehensive income (loss)
|
214
|
|
|
(141
|
)
|
|
99
|
|
|
(11
|
)
|
|
161
|
|
|||||
Balance as of June 30, 2020
|
$
|
(714
|
)
|
|
$
|
(132
|
)
|
|
$
|
(2,866
|
)
|
|
$
|
277
|
|
|
$
|
(3,435
|
)
|
(in millions)
|
Foreign currency
translation adjustments |
|
Net investment
hedging activities
|
|
Pension
and post-
employment benefits |
|
Marketable
security activities
|
|
Cash flow hedging
activities |
|
Total
|
||||||||||||
Balance as of December 31, 2018
|
$
|
(830
|
)
|
|
$
|
(65
|
)
|
|
$
|
(1,722
|
)
|
|
$
|
(10
|
)
|
|
$
|
147
|
|
|
$
|
(2,480
|
)
|
Other comprehensive income (loss) before reclassifications
|
(32
|
)
|
|
35
|
|
|
2
|
|
|
10
|
|
|
7
|
|
|
22
|
|
||||||
Net losses (gains) reclassified from accumulated other comprehensive loss
|
—
|
|
|
(7
|
)
|
|
43
|
|
|
1
|
|
|
(70
|
)
|
|
(33
|
)
|
||||||
Net current-period other comprehensive income (loss)
|
(32
|
)
|
|
28
|
|
|
45
|
|
|
11
|
|
|
(63
|
)
|
|
(11
|
)
|
||||||
Balance as of June 30, 2019
|
$
|
(862
|
)
|
|
$
|
(37
|
)
|
|
$
|
(1,677
|
)
|
|
$
|
1
|
|
|
$
|
84
|
|
|
$
|
(2,491
|
)
|
2020 Form 10-Q |
|
24
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions) (brackets denote gains)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net investment hedging activities
|
|
|
|
|
|
|
|
||||||||
Gains on derivative amount excluded from effectiveness testing(a)
|
$
|
(5
|
)
|
|
$
|
(9
|
)
|
|
$
|
(13
|
)
|
|
$
|
(9
|
)
|
Tax expense
|
1
|
|
|
2
|
|
|
3
|
|
|
2
|
|
||||
Total reclassifications, net of tax
|
$
|
(4
|
)
|
|
$
|
(7
|
)
|
|
$
|
(10
|
)
|
|
$
|
(7
|
)
|
Pension and post-employment benefits
|
|
|
|
|
|
|
|
||||||||
Amortization of actuarial losses and other(b)
|
$
|
64
|
|
|
$
|
30
|
|
|
$
|
125
|
|
|
$
|
55
|
|
Tax benefit
|
(14
|
)
|
|
(7
|
)
|
|
(27
|
)
|
|
(12
|
)
|
||||
Total reclassifications, net of tax
|
$
|
50
|
|
|
$
|
23
|
|
|
$
|
98
|
|
|
$
|
43
|
|
Cash flow hedging activities
|
|
|
|
|
|
|
|
||||||||
Gains on foreign currency forward exchange contracts(c)
|
$
|
—
|
|
|
$
|
(37
|
)
|
|
$
|
—
|
|
|
$
|
(77
|
)
|
Gains on treasury rate lock agreements and interest rate swap contracts(a)
|
(3
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
||||
Tax expense
|
—
|
|
|
2
|
|
|
1
|
|
|
7
|
|
||||
Total reclassifications, net of tax
|
$
|
(3
|
)
|
|
$
|
(35
|
)
|
|
$
|
(9
|
)
|
|
$
|
(70
|
)
|
|
|
2020 Form 10-Q |
|
25
|
2020 Form 10-Q |
|
26
|
2020 Form 10-Q |
|
27
|
2020 Form 10-Q |
|
28
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
|
|
||||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Immunology
|
|
|
|
|
|
|
|
|||||||||
Humira
|
United States
|
$
|
3,974
|
|
|
$
|
3,793
|
|
|
$
|
7,630
|
|
|
$
|
7,008
|
|
|
International
|
863
|
|
|
1,077
|
|
|
1,910
|
|
|
2,308
|
|
||||
|
Total
|
$
|
4,837
|
|
|
$
|
4,870
|
|
|
$
|
9,540
|
|
|
$
|
9,316
|
|
Skyrizi
|
United States
|
$
|
289
|
|
|
$
|
42
|
|
|
$
|
555
|
|
|
$
|
42
|
|
|
International
|
41
|
|
|
6
|
|
|
75
|
|
|
6
|
|
||||
|
Total
|
$
|
330
|
|
|
$
|
48
|
|
|
$
|
630
|
|
|
$
|
48
|
|
Rinvoq
|
United States
|
$
|
136
|
|
|
$
|
—
|
|
|
$
|
218
|
|
|
$
|
—
|
|
|
International
|
13
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
|
Total
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
235
|
|
|
$
|
—
|
|
Hematologic Oncology
|
|
|
|
|
|
|
|
|||||||||
Imbruvica
|
United States
|
$
|
1,055
|
|
|
$
|
886
|
|
|
$
|
2,021
|
|
|
$
|
1,715
|
|
|
Collaboration revenues
|
233
|
|
|
213
|
|
|
499
|
|
|
406
|
|
||||
|
Total
|
$
|
1,288
|
|
|
$
|
1,099
|
|
|
$
|
2,520
|
|
|
$
|
2,121
|
|
Venclexta
|
United States
|
$
|
191
|
|
|
$
|
117
|
|
|
$
|
392
|
|
|
$
|
222
|
|
|
International
|
112
|
|
|
52
|
|
|
228
|
|
|
98
|
|
||||
|
Total
|
$
|
303
|
|
|
$
|
169
|
|
|
$
|
620
|
|
|
$
|
320
|
|
Aesthetics
|
|
|
|
|
|
|
|
|||||||||
Botox Cosmetic (a)
|
United States
|
$
|
147
|
|
|
$
|
—
|
|
|
$
|
147
|
|
|
$
|
—
|
|
|
International
|
79
|
|
|
—
|
|
|
79
|
|
|
—
|
|
||||
|
Total
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
—
|
|
Juvederm Collection (a)
|
United States
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
International
|
57
|
|
|
—
|
|
|
57
|
|
|
—
|
|
||||
|
Total
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
113
|
|
|
$
|
—
|
|
Other Aesthetics (a)
|
United States
|
$
|
127
|
|
|
$
|
—
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
International
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
|
Total
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
—
|
|
2020 Form 10-Q |
|
29
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
|
|
||||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Neuroscience
|
|
|
|
|
|
|
|
|||||||||
Botox Therapeutic (a)
|
United States
|
$
|
254
|
|
|
$
|
—
|
|
|
$
|
254
|
|
|
$
|
—
|
|
|
International
|
43
|
|
|
—
|
|
|
43
|
|
|
—
|
|
||||
|
Total
|
$
|
297
|
|
|
$
|
—
|
|
|
$
|
297
|
|
|
$
|
—
|
|
Vraylar (a)
|
United States
|
$
|
192
|
|
|
$
|
—
|
|
|
$
|
192
|
|
|
$
|
—
|
|
Duodopa
|
United States
|
$
|
25
|
|
|
$
|
24
|
|
|
$
|
50
|
|
|
$
|
46
|
|
|
International
|
93
|
|
|
91
|
|
|
192
|
|
|
180
|
|
||||
|
Total
|
$
|
118
|
|
|
$
|
115
|
|
|
$
|
242
|
|
|
$
|
226
|
|
Ubrelvy (a)
|
United States
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
Other Neuroscience (a)
|
United States
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
International
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
|
Total
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
—
|
|
Eye Care
|
|
|
|
|
|
|
|
|||||||||
Lumigan/Ganfort (a)
|
United States
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
International
|
41
|
|
|
—
|
|
|
41
|
|
|
—
|
|
||||
|
Total
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
—
|
|
Alphagan/Combigan(a)
|
United States
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
International
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
|
Total
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
—
|
|
Restasis (a)
|
United States
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
International
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
|
Total
|
$
|
144
|
|
|
$
|
—
|
|
|
$
|
144
|
|
|
$
|
—
|
|
Other Eye Care (a)
|
United States
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
International
|
74
|
|
|
—
|
|
|
74
|
|
|
—
|
|
||||
|
Total
|
$
|
128
|
|
|
$
|
—
|
|
|
$
|
128
|
|
|
$
|
—
|
|
Women's Health
|
|
|
|
|
|
|
|
|||||||||
Lo Loestrin (a)
|
United States
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
International
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
|
Total
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
—
|
|
Orilissa/Oriahnn
|
United States
|
$
|
30
|
|
|
$
|
18
|
|
|
$
|
60
|
|
|
$
|
31
|
|
|
International
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
|
Total
|
$
|
31
|
|
|
$
|
19
|
|
|
$
|
62
|
|
|
$
|
32
|
|
Other Women's Health (a)
|
United States
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
International
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
|
Total
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
—
|
|
Other Key Products
|
|
|
|
|
|
|
|
|||||||||
Mavyret
|
United States
|
$
|
146
|
|
|
$
|
396
|
|
|
$
|
380
|
|
|
$
|
799
|
|
|
International
|
230
|
|
|
384
|
|
|
555
|
|
|
771
|
|
||||
|
Total
|
$
|
376
|
|
|
$
|
780
|
|
|
$
|
935
|
|
|
$
|
1,570
|
|
Creon
|
United States
|
$
|
252
|
|
|
$
|
257
|
|
|
$
|
528
|
|
|
$
|
484
|
|
Lupron
|
United States
|
$
|
167
|
|
|
$
|
168
|
|
|
$
|
362
|
|
|
$
|
359
|
|
|
International
|
38
|
|
|
41
|
|
|
76
|
|
|
79
|
|
||||
|
Total
|
$
|
205
|
|
|
$
|
209
|
|
|
$
|
438
|
|
|
$
|
438
|
|
Linzess/Constella (a)
|
United States
|
$
|
130
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
—
|
|
|
International
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
|
Total
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
—
|
|
Synthroid
|
United States
|
$
|
183
|
|
|
$
|
203
|
|
|
$
|
388
|
|
|
$
|
385
|
|
All other
|
|
$
|
590
|
|
|
$
|
486
|
|
|
$
|
1,143
|
|
|
$
|
1,143
|
|
Total net revenues
|
$
|
10,425
|
|
|
$
|
8,255
|
|
|
$
|
19,044
|
|
|
$
|
16,083
|
|
2020 Form 10-Q |
|
30
|
|
2020 Form 10-Q |
|
31
|
•
|
In February 2020, AbbVie announced top-line results from its second Phase 3 clinical trial of Rinvoq in adult patients with active psoriatic arthritis (PsA). Results from the SELECT-PsA 1 study, which evaluated Rinvoq versus placebo in patients who did not adequately respond to treatment with one or more non-biologic disease-modifying anti-rheumatic drugs (DMARDs), showed that both doses of Rinvoq met the primary and key secondary endpoints. The safety profile was consistent with that of previous studies across indications, with no new safety risks detected.
|
•
|
In May 2020, AbbVie submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) and, in June 2020, submitted a marketing authorization application (MAA) to the European Medicines Agency (EMA) for Rinvoq for the treatment of adult patients with active psoriatic arthritis.
|
•
|
In June 2020, AbbVie announced top-line results from its Phase 3 Measure Up 1 study and, in July 2020, announced top-line results from its Phase 3 Measure Up 2 and AD Up studies of Rinvoq for the treatment of moderate to severe atopic dermatitis met all primary and secondary endpoints versus placebo.
|
2020 Form 10-Q |
|
32
|
•
|
In April 2020, AbbVie received FDA approval for the use of Imbruvica in combination with rituximab for the treatment of previously untreated patients with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL).
|
•
|
In February 2020, AbbVie announced that the Phase 3 VIALE-C trial of Venclexta in combination with low-dose cytarabine in newly-diagnosed patients with acute myeloid leukemia (AML) did not meet its primary endpoint.
|
•
|
In March 2020, AbbVie announced that top-line results from its Phase 3 VIALE-A trial of Venclexta in combination with azacitidine in patients with AML met its primary endpoints.
|
•
|
In March 2020, AbbVie received European Commission (EC) approval of Venclyxto in combination with obinutuzumab for patients with previously untreated CLL.
|
•
|
In May 2020, AbbVie submitted a supplemental NDA (sNDA) to the FDA for the conversion of the conditional approval of Venclexta to full approval for patients with AML. In June 2020, AbbVie submitted an MAA to the EMA for Venclyxto for the treatment of patients with AML.
|
•
|
In June 2020, AbbVie received FDA approval of Juvederm Voluma XC for the augmentation of the chin region to improve the chin profile in adults over the age of 21.
|
•
|
In June 2020, the FDA accepted the company's supplemental Biologics License Application (sBLA) to expand the Botox prescribing information for the treatment of detrusor (bladder muscle) overactivity associated with an underlying neurologic condition in certain pediatric patients.
|
•
|
In July 2020, AbbVie received FDA approval of Botox for the treatment of lower limb spasticity caused by cerebral palsy in pediatric patients over the age of 2.
|
•
|
In July 2020, AbbVie announced that the Phase 3 ADVANCE trial evaluating atogepant, an orally administered calcitonin gene-related peptide receptor antagonist, for migraine prevention met its primary endpoint for all doses (10mg, 30mg, and 60mg) compared to placebo, all secondary endpoints with 30mg and 60mg doses, and four out of six secondary endpoints with the 10mg dose.
|
•
|
In March 2020, AbbVie announced that the EC granted marketing authorization for Maviret to shorten once-daily treatment duration from 12 to 8 weeks in treatment-naïve, compensated cirrhotic, chronic hepatitis C virus (HCV) patients with genotype 3 infection.
|
•
|
In June 2020, AbbVie announced that the FDA issued a Complete Response Letter (CRL) to the Biologics License Application (BLA) for abicipar pegol, a novel, investigational DARPin therapy for patients with neovascular (wet) age-related macular degeneration (nAMD). The CRL indicated that the rate of intraocular inflammation observed following administration of abicipar pegol results in an unfavorable benefit-risk ratio in the treatment of nAMD. In July 2020, AbbVie withdrew the regulatory application with the EMA for abicipar pegol for the treatment of nAMD. AbbVie plans to meet with the FDA and EMA to discuss their comments and determine next steps.
|
2020 Form 10-Q |
|
33
|
•
|
In May 2020, the FDA approved Oriahnn (elagolix, estradiol, and norethindrone acetate capsules; elagolix capsules) for the management of heavy menstrual bleeding due to uterine fibroids in pre-menopausal women.
|
|
|
Three months ended
June 30, |
|
Percent change
|
|
Six months ended
June 30, |
|
Percent change
|
||||||||||||||||||||
|
|
|
At actual
currency rates |
|
At constant
currency rates |
|
|
At actual
currency rates |
|
At constant
currency rates |
||||||||||||||||||
(dollars in millions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||||||||
United States
|
|
$
|
8,147
|
|
|
$
|
5,964
|
|
|
36.6
|
%
|
|
36.6
|
%
|
|
$
|
14,305
|
|
|
$
|
11,234
|
|
|
27.3
|
%
|
|
27.3
|
%
|
International
|
|
2,278
|
|
|
2,291
|
|
|
(0.5
|
)%
|
|
2.5
|
%
|
|
4,739
|
|
|
4,849
|
|
|
(2.2
|
)%
|
|
0.2
|
%
|
||||
Net revenues
|
|
$
|
10,425
|
|
|
$
|
8,255
|
|
|
26.3
|
%
|
|
27.1
|
%
|
|
$
|
19,044
|
|
|
$
|
16,083
|
|
|
18.4
|
%
|
|
19.1
|
%
|
2020 Form 10-Q |
|
34
|
|
|
|
Three months ended
June 30, |
|
Percent change
|
|
Six months ended
June 30, |
|
Percent change
|
||||||||||||||||||||
|
|
|
|
At actual
currency rates |
|
At constant
currency rates |
|
|
At actual
currency rates |
|
At constant
currency rates |
||||||||||||||||||
(dollars in millions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|||||||||||||||||||
Immunology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Humira
|
United States
|
|
$
|
3,974
|
|
|
$
|
3,793
|
|
|
4.8
|
%
|
|
4.8
|
%
|
|
$
|
7,630
|
|
|
$
|
7,008
|
|
|
8.9
|
%
|
|
8.9
|
%
|
|
International
|
|
863
|
|
|
1,077
|
|
|
(19.9
|
)%
|
|
(17.4
|
)%
|
|
1,910
|
|
|
2,308
|
|
|
(17.2
|
)%
|
|
(14.9
|
)%
|
||||
|
Total
|
|
$
|
4,837
|
|
|
$
|
4,870
|
|
|
(0.7
|
)%
|
|
(0.2
|
)%
|
|
$
|
9,540
|
|
|
$
|
9,316
|
|
|
2.4
|
%
|
|
3.0
|
%
|
Skyrizi
|
United States
|
|
$
|
289
|
|
|
$
|
42
|
|
|
>100%
|
|
|
>100%
|
|
|
$
|
555
|
|
|
$
|
42
|
|
|
>100%
|
|
|
>100%
|
|
|
International
|
|
41
|
|
|
6
|
|
|
>100%
|
|
|
>100%
|
|
|
75
|
|
|
6
|
|
|
>100%
|
|
|
>100%
|
|
||||
|
Total
|
|
$
|
330
|
|
|
$
|
48
|
|
|
>100%
|
|
|
>100%
|
|
|
$
|
630
|
|
|
$
|
48
|
|
|
>100%
|
|
|
>100%
|
|
Rinvoq
|
United States
|
|
$
|
136
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
218
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
13
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
17
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
149
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
235
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Hematologic Oncology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Imbruvica
|
United States
|
|
$
|
1,055
|
|
|
$
|
886
|
|
|
19.0
|
%
|
|
19.0
|
%
|
|
$
|
2,021
|
|
|
$
|
1,715
|
|
|
17.9
|
%
|
|
17.9
|
%
|
|
Collaboration revenues
|
|
233
|
|
|
213
|
|
|
9.4
|
%
|
|
9.4
|
%
|
|
499
|
|
|
406
|
|
|
22.9
|
%
|
|
22.9
|
%
|
||||
|
Total
|
|
$
|
1,288
|
|
|
$
|
1,099
|
|
|
17.2
|
%
|
|
17.2
|
%
|
|
$
|
2,520
|
|
|
$
|
2,121
|
|
|
18.8
|
%
|
|
18.8
|
%
|
Venclexta
|
United States
|
|
$
|
191
|
|
|
$
|
117
|
|
|
63.5
|
%
|
|
63.5
|
%
|
|
$
|
392
|
|
|
$
|
222
|
|
|
76.7
|
%
|
|
76.7
|
%
|
|
International
|
|
112
|
|
|
52
|
|
|
>100%
|
|
|
>100%
|
|
|
228
|
|
|
98
|
|
|
>100%
|
|
|
>100%
|
|
||||
|
Total
|
|
$
|
303
|
|
|
$
|
169
|
|
|
79.2
|
%
|
|
81.5
|
%
|
|
$
|
620
|
|
|
$
|
320
|
|
|
93.7
|
%
|
|
95.8
|
%
|
Aesthetics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Botox Cosmetic (a)
|
United States
|
|
$
|
147
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
147
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
79
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
79
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
226
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
226
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Juvederm Collection (a)
|
United States
|
|
$
|
56
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
57
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
57
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
113
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
113
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Other Aesthetics (a)
|
United States
|
|
$
|
127
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
15
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
15
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
142
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
142
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Neuroscience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Botox Therapeutic (a)
|
United States
|
|
$
|
254
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
254
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
43
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
43
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
297
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
297
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Vraylar (a)
|
United States
|
|
$
|
192
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
192
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Duodopa
|
United States
|
|
$
|
25
|
|
|
$
|
24
|
|
|
8.3
|
%
|
|
8.3
|
%
|
|
$
|
50
|
|
|
$
|
46
|
|
|
9.3
|
%
|
|
9.3
|
%
|
|
International
|
|
93
|
|
|
91
|
|
|
1.6
|
%
|
|
3.7
|
%
|
|
192
|
|
|
180
|
|
|
6.7
|
%
|
|
9.2
|
%
|
||||
|
Total
|
|
$
|
118
|
|
|
$
|
115
|
|
|
2.9
|
%
|
|
4.6
|
%
|
|
$
|
242
|
|
|
$
|
226
|
|
|
7.2
|
%
|
|
9.2
|
%
|
Ubrelvy (a)
|
United States
|
|
$
|
22
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Other Neuroscience (a)
|
United States
|
|
$
|
103
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
2
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
2
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
105
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
105
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
2020 Form 10-Q |
|
35
|
|
|
|
Three months ended
June 30, |
|
Percent change
|
|
Six months ended
June 30, |
|
Percent change
|
||||||||||||||||||||
|
|
|
|
At actual
currency rates |
|
At constant
currency rates |
|
|
At actual
currency rates |
|
At constant
currency rates |
||||||||||||||||||
(dollars in millions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|||||||||||||||||||
Eye Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Lumigan/Ganfort (a)
|
United States
|
|
$
|
35
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
41
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
41
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
76
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Alphagan/Combigan(a)
|
United States
|
|
$
|
47
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
22
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
22
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
69
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Restasis (a)
|
United States
|
|
$
|
138
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
6
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
6
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
144
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
144
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Other Eye Care (a)
|
United States
|
|
$
|
54
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
74
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
74
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
128
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
128
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Women's Health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Lo Loestrin (a)
|
United States
|
|
$
|
78
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
2
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
2
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
80
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Orilissa/Oriahnn
|
United States
|
|
$
|
30
|
|
|
$
|
18
|
|
|
57.3
|
%
|
|
57.3
|
%
|
|
$
|
60
|
|
|
$
|
31
|
|
|
88.6
|
%
|
|
88.6
|
%
|
|
International
|
|
1
|
|
|
1
|
|
|
90.2
|
%
|
|
95.4
|
%
|
|
2
|
|
|
1
|
|
|
>100%
|
|
|
>100%
|
|
||||
|
Total
|
|
$
|
31
|
|
|
$
|
19
|
|
|
58.0
|
%
|
|
58.1
|
%
|
|
$
|
62
|
|
|
$
|
32
|
|
|
90.3
|
%
|
|
90.4
|
%
|
Other Women's Health (a)
|
United States
|
|
$
|
34
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
2
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
2
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
36
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Other Key Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Mavyret
|
United States
|
|
$
|
146
|
|
|
$
|
396
|
|
|
(62.9
|
)%
|
|
(62.9
|
)%
|
|
$
|
380
|
|
|
$
|
799
|
|
|
(52.4
|
)%
|
|
(52.4
|
)%
|
|
International
|
|
230
|
|
|
384
|
|
|
(40.2
|
)%
|
|
(39.6
|
)%
|
|
555
|
|
|
771
|
|
|
(28.1
|
)%
|
|
(27.2
|
)%
|
||||
|
Total
|
|
$
|
376
|
|
|
$
|
780
|
|
|
(51.7
|
)%
|
|
(51.4
|
)%
|
|
$
|
935
|
|
|
$
|
1,570
|
|
|
(40.4
|
)%
|
|
(39.9
|
)%
|
Creon
|
United States
|
|
$
|
252
|
|
|
$
|
257
|
|
|
(1.9
|
)%
|
|
(1.9
|
)%
|
|
$
|
528
|
|
|
$
|
484
|
|
|
9.3
|
%
|
|
9.3
|
%
|
Lupron
|
United States
|
|
$
|
167
|
|
|
$
|
168
|
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|
$
|
362
|
|
|
$
|
359
|
|
|
1.1
|
%
|
|
1.1
|
%
|
|
International
|
|
38
|
|
|
41
|
|
|
(8.9
|
)%
|
|
(3.2
|
)%
|
|
76
|
|
|
79
|
|
|
(4.7
|
)%
|
|
(0.6
|
)%
|
||||
|
Total
|
|
$
|
205
|
|
|
$
|
209
|
|
|
(1.8
|
)%
|
|
(0.7
|
)%
|
|
$
|
438
|
|
|
$
|
438
|
|
|
—
|
%
|
|
0.7
|
%
|
Linzess/Constella (a)
|
United States
|
|
$
|
130
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
130
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
International
|
|
3
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
3
|
|
|
—
|
|
|
n/m
|
|
|
n/m
|
|
||||
|
Total
|
|
$
|
133
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
|
$
|
133
|
|
|
$
|
—
|
|
|
n/m
|
|
|
n/m
|
|
Synthroid
|
United States
|
|
$
|
183
|
|
|
$
|
203
|
|
|
(9.7
|
)%
|
|
(9.7
|
)%
|
|
$
|
388
|
|
|
$
|
385
|
|
|
0.7
|
%
|
|
0.7
|
%
|
All other
|
|
|
$
|
590
|
|
|
$
|
486
|
|
|
21.5
|
%
|
|
24.6
|
%
|
|
$
|
1,143
|
|
|
$
|
1,143
|
|
|
(0.1
|
)%
|
|
2.0
|
%
|
Total net revenues
|
|
$
|
10,425
|
|
|
$
|
8,255
|
|
|
26.3
|
%
|
|
27.1
|
%
|
|
$
|
19,044
|
|
|
$
|
16,083
|
|
|
18.4
|
%
|
|
19.1
|
%
|
2020 Form 10-Q |
|
36
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||||||||
(dollars in millions)
|
|
2020
|
|
2019
|
|
% change
|
|
2020
|
|
2019
|
|
% change
|
||||||||||
Gross margin
|
|
$
|
6,714
|
|
|
$
|
6,436
|
|
|
4
|
%
|
|
$
|
13,391
|
|
|
$
|
12,570
|
|
|
7
|
%
|
as a % of net revenues
|
|
64
|
%
|
|
78
|
%
|
|
|
|
70
|
%
|
|
78
|
%
|
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|||||||||||||||||
(dollars in millions)
|
|
2020
|
|
2019
|
|
% change
|
|
2020
|
|
2019
|
|
% change
|
|||||||||
Selling, general and administrative
|
|
$
|
3,527
|
|
|
$
|
1,654
|
|
|
>100%
|
|
$
|
5,222
|
|
|
$
|
3,334
|
|
|
57
|
%
|
as a % of net revenues
|
|
34
|
%
|
|
20
|
%
|
|
|
|
27
|
%
|
|
21
|
%
|
|
|
2020 Form 10-Q |
|
37
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||||||||
(dollars in millions)
|
|
2020
|
|
2019
|
|
% change
|
|
2020
|
|
2019
|
|
% change
|
||||||||||
Research and development
|
|
$
|
1,582
|
|
|
$
|
1,291
|
|
|
23
|
%
|
|
$
|
2,961
|
|
|
$
|
2,580
|
|
|
15
|
%
|
as a % of net revenues
|
|
15
|
%
|
|
16
|
%
|
|
|
|
16
|
%
|
|
16
|
%
|
|
|
||||||
Acquired in-process research and development
|
|
$
|
853
|
|
|
$
|
91
|
|
|
>100%
|
|
|
$
|
853
|
|
|
$
|
246
|
|
|
>100%
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest expense
|
|
$
|
632
|
|
|
$
|
358
|
|
|
$
|
1,195
|
|
|
$
|
745
|
|
Interest income
|
|
(18
|
)
|
|
(49
|
)
|
|
(153
|
)
|
|
(111
|
)
|
||||
Interest expense, net
|
|
$
|
614
|
|
|
$
|
309
|
|
|
$
|
1,042
|
|
|
$
|
634
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net foreign exchange loss
|
|
$
|
29
|
|
|
$
|
6
|
|
|
$
|
34
|
|
|
$
|
12
|
|
Other expense, net
|
|
802
|
|
|
2,278
|
|
|
874
|
|
|
2,413
|
|
2020 Form 10-Q |
|
38
|
|
Six months ended
June 30, |
||||||
(in millions)
|
2020
|
|
2019
|
||||
Cash flows provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
6,904
|
|
|
$
|
5,494
|
|
Investing activities
|
(35,781
|
)
|
|
(167
|
)
|
||
Financing activities
|
(4,992
|
)
|
|
(7,453
|
)
|
2020 Form 10-Q |
|
39
|
2020 Form 10-Q |
|
40
|
|
2020 Form 10-Q |
|
41
|
|
2020 Form 10-Q |
|
42
|
|
|
|
Period
|
(a) Total
Number of Shares
(or Units)
Purchased |
|
(b) Average
Price Paid per Share (or Unit) |
|
(c) Total Number
of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
|
(d) Maximum
Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
|
||
April 1, 2020 – April 30, 2020
|
1,175
|
|
(1)
|
$75.93
|
(1)
|
—
|
|
|
$3,450,069,690
|
|
May 1, 2020 – May 31, 2020
|
958
|
|
(1)
|
$87.03
|
(1)
|
—
|
|
|
$3,450,069,690
|
|
June 1, 2020 – June 30, 2020
|
896
|
|
(1)
|
$94.41
|
(1)
|
—
|
|
|
$3,450,069,690
|
|
Total
|
3,029
|
|
(1)
|
$84.91
|
(1)
|
—
|
|
|
$3,450,069,690
|
|
1.
|
In addition to AbbVie shares repurchased on the open market under a publicly announced program, if any, these shares also included the shares purchased on the open market for the benefit of participants in the AbbVie Employee Stock Purchase Plan – 1,175 in April; 958 in May; and 896 in June.
|
2020 Form 10-Q |
|
43
|
|
Exhibit No.
|
|
Exhibit Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
The following financial statements and notes from the AbbVie Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed on August 4, 2020, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Earnings; (ii) Condensed Consolidated Statements of Comprehensive Income; (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Equity; (v) Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements.
|
|
|
|
104
|
|
Cover Page Interactive Data File (the cover page from the AbbVie Inc. Quarterly Report on Form 10-Q formatted as Inline XBRL and contained in Exhibit 101).
|
2020 Form 10-Q |
|
44
|
|
|
ABBVIE INC.
|
|
|
|
|
|
|
|
By:
|
/s/ Robert A. Michael
|
|
|
Robert A. Michael
|
|
|
Executive Vice President,
|
|
|
Chief Financial Officer
|
2020 Form 10-Q |
|
45
|
1.
|
I have reviewed this quarterly report on Form 10-Q of AbbVie Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of AbbVie as of, and for, the periods presented in this report;
|
4.
|
AbbVie’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for AbbVie and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to AbbVie, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of AbbVie’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in AbbVie’s internal control over financial reporting that occurred during AbbVie’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, AbbVie’s internal control over financial reporting; and
|
5.
|
AbbVie’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to AbbVie’s auditors and the audit committee of AbbVie’s board of directors:
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect AbbVie’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in AbbVie’s internal control over financial reporting.
|
Date:
|
August 4, 2020
|
/s/ Richard A. Gonzalez
|
|
|
Richard A. Gonzalez, Chairman of the Board
|
|
|
and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of AbbVie Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of AbbVie as of, and for, the periods presented in this report;
|
4.
|
AbbVie’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for AbbVie and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to AbbVie, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of AbbVie’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in AbbVie’s internal control over financial reporting that occurred during AbbVie’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, AbbVie’s internal control over financial reporting; and
|
5.
|
AbbVie’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to AbbVie’s auditors and the audit committee of AbbVie’s board of directors:
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect AbbVie’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in AbbVie’s internal control over financial reporting.
|
Date:
|
August 4, 2020
|
/s/ Robert A. Michael
|
|
|
Robert A. Michael, Executive Vice President,
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Richard A. Gonzalez
|
Richard A. Gonzalez
|
Chairman of the Board and Chief Executive Officer
|
August 4, 2020
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Robert A. Michael
|
Robert A. Michael
|
Executive Vice President, Chief Financial Officer
|
August 4, 2020
|