(MARK ONE) | ||||||||
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 32-0375147 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. employer
identification number) |
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 | ||||||||||||||
0.500% Senior Notes due 2021 | ABBV21C | New York Stock Exchange | ||||||||||||
1.500% Senior Notes due 2023 | ABBV23B | New York Stock Exchange | ||||||||||||
1.375% Senior Notes due 2024 | ABBV24 | New York Stock Exchange | ||||||||||||
1.250% Senior Notes due 2024 | ABBV24B | 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 | ||||||||||||
2.625% Senior Notes due 2028 | ABBV28B | New York Stock Exchange | ||||||||||||
2.125% Senior Notes due 2029 | ABBV29 | New York Stock Exchange | ||||||||||||
1.250% Senior Notes due 2031 | ABBV31 | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | ||||||||
Non-Accelerated Filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
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Condition | Principal Markets | |||||||
Rheumatoid arthritis (moderate to severe) | North America, European Union | |||||||
Psoriatic arthritis | North America, European Union | |||||||
Ankylosing spondylitis | North America, European Union | |||||||
Adult Crohn's disease (moderate to severe) | North America, European Union | |||||||
Plaque psoriasis (moderate to severe chronic) | North America, European Union | |||||||
Juvenile idiopathic arthritis (moderate to severe polyarticular) | North America, European Union | |||||||
Ulcerative colitis (moderate to severe) | North America, European Union | |||||||
Axial spondyloarthropathy | European Union | |||||||
Pediatric Crohn's disease (moderate to severe) | North America, European Union | |||||||
Hidradenitis suppurativa (moderate to severe) | North America, European Union | |||||||
Pediatric enthesitis-related arthritis | European Union | |||||||
Non-infectious intermediate, posterior and panuveitis | North America, European Union | |||||||
Pediatric ulcerative colitis (moderate to severe) | European Union | |||||||
Pediatric uveitis | European Union |
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United States | Outside the United States | |||||||
Abbott Park, Illinois* | Campoverde di Aprilia, Italy | |||||||
Barceloneta, Puerto Rico | Clonshaugh, Ireland | |||||||
Branchburg, New Jersey* | Cork, Ireland | |||||||
Campbell, California | Galway, Ireland* | |||||||
Cincinnati, Ohio | Grace-Hollogne, Belgium* | |||||||
Dublin, California* | Guarulhos, Brazil | |||||||
Houston, Texas | La Aurora, Costa Rica | |||||||
Irvine, California | Ludwigshafen, Germany | |||||||
North Chicago, Illinois | Pringy, France | |||||||
Waco, Texas | Singapore* | |||||||
Worcester, Massachusetts* | Sligo, Ireland | |||||||
Wyandotte, Michigan* | Westport, Ireland |
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Name | Age | Position | ||||||||||||
Richard A. Gonzalez | 67 | Chairman of the Board and Chief Executive Officer | ||||||||||||
Michael E. Severino, M.D. | 55 | Vice Chairman and President | ||||||||||||
Laura J. Schumacher | 57 | Vice Chairman, External Affairs and Chief Legal Officer | ||||||||||||
Henry O. Gosebruch | 48 | Executive Vice President, Chief Strategy Officer | ||||||||||||
Robert A. Michael | 50 | Executive Vice President, Chief Financial Officer | ||||||||||||
Timothy J. Richmond | 54 | Executive Vice President, Chief Human Resources Officer | ||||||||||||
Azita Saleki-Gerhardt, Ph.D. | 57 | Executive Vice President, Operations | ||||||||||||
Jeffrey R. Stewart | 52 | Executive Vice President, Commercial Operations | ||||||||||||
Thomas J. Hudson, M.D. | 59 | Senior Vice President, Research & Development and Chief Scientific Officer | ||||||||||||
Elaine K. Sorg | 54 | Senior Vice President, U.S. Commercial Operations | ||||||||||||
Carrie Strom | 43 | Senior Vice President, AbbVie and President, Global Allergan Aesthetics | ||||||||||||
Brian L. Durkin | 60 | Vice President, Controller |
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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 |
||||||||||||||||||||||
October 1, 2020 - October 31, 2020 | 4,783 |
(1)
|
$ | 84.46 |
(1)
|
— | $ | 3,450,069,690 | ||||||||||||||||||
November 1, 2020 - November 30, 2020 | 945 |
(1)
|
$ | 92.50 |
(1)
|
— | $ | 3,450,069,690 | ||||||||||||||||||
December 1, 2020 - December 31, 2020 | 2,431,776 |
(1)
|
$ | 105.61 |
(1)
|
2,430,910 | $ | 3,193,341,387 | ||||||||||||||||||
Total | 2,437,504 |
(1)
|
$ | 105.56 |
(1)
|
2,430,910 | $ | 3,193,341,387 |
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Percent change | |||||||||||||||||||||||||||||||||||||||||||||||
At actual currency rates | At constant currency rates | ||||||||||||||||||||||||||||||||||||||||||||||
years ended December 31 (dollars in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Immunology | |||||||||||||||||||||||||||||||||||||||||||||||
Humira | United States | $ | 16,112 | $ | 14,864 | $ | 13,685 | 8.4 | % | 8.6 | % | 8.4 | % | 8.6 | % | ||||||||||||||||||||||||||||||||
International | 3,720 | 4,305 | 6,251 | (13.6) | % | (31.1) | % | (12.5) | % | (27.8) | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 19,832 | $ | 19,169 | $ | 19,936 | 3.5 | % | (3.9) | % | 3.7 | % | (2.9) | % | |||||||||||||||||||||||||||||||||
Skyrizi | United States | $ | 1,385 | $ | 311 | $ | — | >100.0% | n/m | >100.0% | n/m | ||||||||||||||||||||||||||||||||||||
International | 205 | 44 | — | >100.0% | n/m | >100.0% | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,590 | $ | 355 | $ | — | >100.0% | n/m | >100.0% | n/m | |||||||||||||||||||||||||||||||||||||
Rinvoq | United States | $ | 653 | $ | 47 | $ | — | >100.0% | n/m | >100.0% | n/m | ||||||||||||||||||||||||||||||||||||
International | 78 | — | — | >100.0% | n/m | >100.0% | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 731 | $ | 47 | $ | — | >100.0% | n/m | >100.0% | n/m | |||||||||||||||||||||||||||||||||||||
Hematologic Oncology | |||||||||||||||||||||||||||||||||||||||||||||||
Imbruvica | United States | $ | 4,305 | $ | 3,830 | $ | 2,968 | 12.4 | % | 29.1 | % | 12.4 | % | 29.1 | % | ||||||||||||||||||||||||||||||||
Collaboration revenues | 1,009 | 844 | 622 | 19.5 | % | 35.8 | % | 19.5 | % | 35.8 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 5,314 | $ | 4,674 | $ | 3,590 | 13.7 | % | 30.2 | % | 13.7 | % | 30.2 | % | |||||||||||||||||||||||||||||||||
Venclexta | United States | $ | 804 | $ | 521 | $ | 247 | 54.4 | % | >100.0% | 54.4 | % | >100.0% | ||||||||||||||||||||||||||||||||||
International | 533 | 271 | 97 | 97.0 | % | >100.0% | 97.8 | % | >100.0% | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,337 | $ | 792 | $ | 344 | 69.0 | % | >100.0% | 69.3 | % | >100.0% | |||||||||||||||||||||||||||||||||||
Aesthetics | |||||||||||||||||||||||||||||||||||||||||||||||
Botox Cosmetic (a)
|
United States | $ | 687 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 425 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,112 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Juvederm Collection (a)
|
United States | $ | 318 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 400 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 718 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Other Aesthetics (a)
|
United States | $ | 666 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 94 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 760 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Neuroscience | |||||||||||||||||||||||||||||||||||||||||||||||
Botox Therapeutic (a)
|
United States | $ | 1,155 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 232 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,387 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Vraylar (a)
|
United States | $ | 951 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
Duodopa | United States | $ | 103 | $ | 97 | $ | 80 | 5.9 | % | 20.4 | % | 5.9 | % | 20.4 | % | ||||||||||||||||||||||||||||||||
International | 391 | 364 | 350 | 7.4 | % | 4.2 | % | 6.3 | % | 9.8 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 494 | $ | 461 | $ | 430 | 7.1 | % | 7.2 | % | 6.2 | % | 11.7 | % | |||||||||||||||||||||||||||||||||
Ubrelvy (a)
|
United States | $ | 125 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
Other Neuroscience (a)
|
United States | $ | 528 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 11 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 539 | $ | — | $ | — | n/m | n/m | n/m | n/m |
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Percent change | |||||||||||||||||||||||||||||||||||||||||||||||
At actual currency rates | At constant currency rates | ||||||||||||||||||||||||||||||||||||||||||||||
years ended December 31 (dollars in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Eye Care | |||||||||||||||||||||||||||||||||||||||||||||||
Lumigan/Ganfort (a)
|
United States | $ | 165 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 213 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 378 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Alphagan/Combigan (a)
|
United States | $ | 223 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 103 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 326 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Restasis (a)
|
United States | $ | 755 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 32 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 787 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Other Eye Care (a)
|
United States | $ | 305 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 388 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 693 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Women's Health | |||||||||||||||||||||||||||||||||||||||||||||||
Lo Loestrin (a)
|
United States | $ | 346 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 10 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 356 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Orilissa/Oriahnn | United States | $ | 121 | $ | 91 | $ | 11 | 33.3 | % | >100.0% | 33.3 | % | >100.0% | ||||||||||||||||||||||||||||||||||
International | 4 | 2 | — | 96.1 | % | n/m | 97.7 | % | n/m | ||||||||||||||||||||||||||||||||||||||
Total | $ | 125 | $ | 93 | $ | 11 | 34.6 | % | >100.0% | 34.6 | % | >100.0% | |||||||||||||||||||||||||||||||||||
Other Women's Health (a)
|
United States | $ | 181 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 11 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 192 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Other Key Products | |||||||||||||||||||||||||||||||||||||||||||||||
Mavyret | United States | $ | 785 | $ | 1,473 | $ | 1,614 | (46.7) | % | (8.8) | % | (46.7) | % | (8.8) | % | ||||||||||||||||||||||||||||||||
International | 1,045 | 1,420 | 1,824 | (26.4) | % | (22.1) | % | (26.8) | % | (19.6) | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 1,830 | $ | 2,893 | $ | 3,438 | (36.7) | % | (15.9) | % | (36.9) | % | (14.6) | % | |||||||||||||||||||||||||||||||||
Creon | United States | $ | 1,114 | $ | 1,041 | $ | 928 | 6.9 | % | 12.2 | % | 6.9 | % | 12.2 | % | ||||||||||||||||||||||||||||||||
Lupron | United States | $ | 600 | $ | 720 | $ | 726 | (16.6) | % | (0.8) | % | (16.6) | % | (0.8) | % | ||||||||||||||||||||||||||||||||
International | 152 | 167 | 166 | (9.1) | % | 0.8 | % | (5.4) | % | 6.0 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 752 | $ | 887 | $ | 892 | (15.2) | % | (0.5) | % | (14.5) | % | 0.5 | % | |||||||||||||||||||||||||||||||||
Linzess/Constella (a)
|
United States | $ | 649 | $ | — | $ | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||
International | 18 | — | — | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 667 | $ | — | $ | — | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||
Synthroid | United States | $ | 771 | $ | 786 | $ | 776 | (1.9) | % | 1.3 | % | (1.9) | % | 1.3 | % | ||||||||||||||||||||||||||||||||
All other | $ | 2,923 | $ | 2,068 | $ | 2,408 | 41.3 | % | (14.1) | % | 42.4 | % | (11.5) | % | |||||||||||||||||||||||||||||||||
Total net revenues | $ | 45,804 | $ | 33,266 | $ | 32,753 | 37.7 | % | 1.6 | % | 38.0 | % | 2.6 | % |
2020 Form 10-K |
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38
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Percent change | |||||||||||||||||||||||||||||
years ended December 31 (dollars in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||||||
Gross margin | $ | 30,417 | $ | 25,827 | $ | 25,035 | 18 | % | 3 | % | |||||||||||||||||||
as a percent of net revenues | 66 | % | 78 | % | 76 | % |
Percent change | |||||||||||||||||||||||||||||
years ended December 31 (dollars in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||||||
Selling, general and administrative | $ | 11,299 | $ | 6,942 | $ | 7,399 | 63 | % | (6) | % | |||||||||||||||||||
as a percent of net revenues | 25 | % | 21 | % | 23 | % |
Percent change | |||||||||||||||||||||||||||||
years ended December 31 (dollars in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||||||||
Research and development | $ | 6,557 | $ | 6,407 | $ | 10,329 | 2 | % | (38) | % | |||||||||||||||||||
as a percent of net revenues | 14 | % | 19 | % | 32 | % | |||||||||||||||||||||||
Acquired in-process research and development | $ | 1,198 | $ | 385 | $ | 424 | >100% | (9) | % |
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years ended December 31 (in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
Interest expense
|
$ | 2,454 | $ | 1,784 | $ | 1,348 | ||||||||||||||
Interest income
|
(174) | (275) | (204) | |||||||||||||||||
Interest expense, net
|
$ | 2,280 | $ | 1,509 | $ | 1,144 | ||||||||||||||
Net foreign exchange loss | $ | 71 | $ | 42 | $ | 24 | ||||||||||||||
Other expense, net | 5,614 | 3,006 | 18 |
2020 Form 10-K |
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years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Cash flows from: | |||||||||||||||||
Operating activities | $ | 17,588 | $ | 13,324 | $ | 13,427 | |||||||||||
Investing activities | (37,557) | 596 | (1,006) | ||||||||||||||
Financing activities | (11,501) | 18,708 | (14,396) |
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(in millions) | Total |
Less than
one year |
One to
three years |
Three to
five years |
More than
five years |
||||||||||||||||||||||||
Short-term borrowings | $ | 34 | $ | 34 | $ | — | $ | — | $ | — | |||||||||||||||||||
Long-term debt, including current portion | 84,948 | 8,422 | 16,643 | 16,197 | 43,686 | ||||||||||||||||||||||||
Interest on long-term debt(a)
|
33,664 | 2,752 | 4,652 | 3,898 | 22,362 | ||||||||||||||||||||||||
Non-cancelable operating and finance lease payments | 1,154 | 229 | 323 | 208 | 394 | ||||||||||||||||||||||||
Purchase obligations and other(b)
|
5,432 | 5,040 | 249 | 112 | 31 | ||||||||||||||||||||||||
Other long-term liabilities (c) (d) (e)
|
18,478 | 1,029 | 3,036 | 4,144 | 10,269 | ||||||||||||||||||||||||
Total | $ | 143,710 | $ | 17,506 | $ | 24,903 | $ | 24,559 | $ | 76,742 |
2020 Form 10-K |
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(in millions) |
Medicaid
and Medicare Rebates |
Managed
Care Rebates |
Wholesaler
Chargebacks |
||||||||||||||
Balance at December 31, 2017 | $ | 1,340 | $ | 1,195 | $ | 522 | |||||||||||
Provisions | 3,493 | 4,729 | 6,659 | ||||||||||||||
Payments | (3,188) | (4,485) | (6,525) | ||||||||||||||
Balance at December 31, 2018 | 1,645 | 1,439 | 656 | ||||||||||||||
Provisions | 4,035 | 5,772 | 7,947 | ||||||||||||||
Payments | (3,915) | (5,275) | (7,917) | ||||||||||||||
Balance at December 31, 2019 | 1,765 | 1,936 | 686 | ||||||||||||||
Additions(a)
|
1,266 | 649 | 71 | ||||||||||||||
Provisions | 6,715 | 8,656 | 8,677 | ||||||||||||||
Payments | (6,801) | (8,334) | (8,693) | ||||||||||||||
Balance at December 31, 2020 | $ | 2,945 | $ | 2,907 | $ | 741 |
50 basis point | |||||||||||
(in millions) (brackets denote a reduction) | Increase | Decrease | |||||||||
Defined benefit plans | |||||||||||
Service and interest cost | $ | (89) | $ | 101 | |||||||
Projected benefit obligation | (1,000) | 1,140 | |||||||||
Other post-employment plans | |||||||||||
Service and interest cost | $ | (6) | $ | 7 | |||||||
Projected benefit obligation | (56) | 63 |
2020 Form 10-K |
|
44
|
45
|
| 2020 Form 10-K
|
Range |
Weighted Average(a)
|
|||||||
Discount rate |
0.1% - 2.2%
|
1.1%
|
||||||
Probability of payment for unachieved milestones |
56% - 92%
|
64%
|
||||||
Probability of payment for royalties by indication(b)
|
56% - 100%
|
91%
|
||||||
Projected year of payments |
2021 - 2034
|
2027
|
2020 Form 10-K |
|
46
|
2020 | 2019 | ||||||||||||||||||||||||||||||||||
as of December 31 (in millions) | Contract amount | Weighted average exchange rate | Fair and carrying value receivable/(payable) | Contract amount | Weighted average exchange rate | Fair and carrying value receivable/(payable) | |||||||||||||||||||||||||||||
Receive primarily U.S. dollars in exchange for the following currencies: | |||||||||||||||||||||||||||||||||||
Euro | $ | 7,818 | 1.213 | $ | (39) | $ | 6,217 | 1.116 | $ | (12) | |||||||||||||||||||||||||
Japanese yen | 837 | 103.9 | (7) | 820 | 108.7 | — | |||||||||||||||||||||||||||||
Canadian dollar | 591 | 1.328 | (23) | 504 | 1.324 | (6) | |||||||||||||||||||||||||||||
British pound | 275 | 1.341 | 3 | 427 | 1.305 | (6) | |||||||||||||||||||||||||||||
All other currencies | 1,706 | n/a | (15) | 1,508 | n/a | (10) | |||||||||||||||||||||||||||||
Total | $ | 11,227 | $ | (81) | $ | 9,476 | $ | (34) |
47
|
| 2020 Form 10-K
|
Page | |||||
Consolidated Financial Statements | |||||
2020 Form 10-K |
|
48
|
years ended December 31 (in millions, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
Net revenues | $ | 45,804 | $ | 33,266 | $ | 32,753 | |||||||||||
Cost of products sold | 15,387 | 7,439 | 7,718 | ||||||||||||||
Selling, general and administrative | 11,299 | 6,942 | 7,399 | ||||||||||||||
Research and development | 6,557 | 6,407 | 10,329 | ||||||||||||||
Acquired in-process research and development | 1,198 | 385 | 424 | ||||||||||||||
Other operating (income) expense | — | (890) | 500 | ||||||||||||||
Total operating costs and expenses | 34,441 | 20,283 | 26,370 | ||||||||||||||
Operating earnings | 11,363 | 12,983 | 6,383 | ||||||||||||||
Interest expense, net | 2,280 | 1,509 | 1,144 | ||||||||||||||
Net foreign exchange loss | 71 | 42 | 24 | ||||||||||||||
Other expense, net | 5,614 | 3,006 | 18 | ||||||||||||||
Earnings before income tax expense | 3,398 | 8,426 | 5,197 | ||||||||||||||
Income tax expense (benefit) | (1,224) | 544 | (490) | ||||||||||||||
Net earnings | 4,622 | 7,882 | 5,687 | ||||||||||||||
Net earnings attributable to noncontrolling interest | 6 | — | — | ||||||||||||||
Net earnings attributable to AbbVie Inc. | $ | 4,616 | $ | 7,882 | $ | 5,687 | |||||||||||
Per share data | |||||||||||||||||
Basic earnings per share attributable to AbbVie Inc. | $ | 2.73 | $ | 5.30 | $ | 3.67 | |||||||||||
Diluted earnings per share attributable to AbbVie Inc. | $ | 2.72 | $ | 5.28 | $ | 3.66 | |||||||||||
Weighted-average basic shares outstanding | 1,667 | 1,481 | 1,541 | ||||||||||||||
Weighted-average diluted shares outstanding | 1,673 | 1,484 | 1,546 |
49
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Net earnings | $ | 4,622 | $ | 7,882 | $ | 5,687 | |||||||||||
Foreign currency translation adjustments, net of tax expense (benefit) of $28 in 2020, $(4) in 2019 and $(18) in 2018
|
1,511 | (98) | (391) | ||||||||||||||
Net investment hedging activities, net of tax expense (benefit) of $(221) in 2020, $22 in 2019 and $40 in 2018
|
(799) | 74 | 138 | ||||||||||||||
Pension and post-employment benefits, net of tax expense (benefit) of $(47) in 2020, $(323) in 2019 and $35 in 2018
|
(102) | (1,243) | 197 | ||||||||||||||
Marketable security activities, net of tax expense (benefit) of $— in 2020, $— in 2019 and $— in 2018
|
— | 10 | (10) | ||||||||||||||
Cash flow hedging activities, net of tax expense (benefit) of $(23) in 2020, $70 in 2019 and $23 in 2018
|
(131) | 141 | 313 | ||||||||||||||
Other comprehensive income (loss) | $ | 479 | $ | (1,116) | $ | 247 | |||||||||||
Comprehensive income | 5,101 | 6,766 | 5,934 | ||||||||||||||
Comprehensive income attributable to noncontrolling interest | 6 | — | — | ||||||||||||||
Comprehensive income attributable to AbbVie Inc. | $ | 5,095 | $ | 6,766 | $ | 5,934 |
2020 Form 10-K |
|
50
|
as of December 31 (in millions, except share data) | 2020 | 2019 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and equivalents | $ | 8,449 | $ | 39,924 | |||||||
Short-term investments | 30 | — | |||||||||
Accounts receivable, net | 8,822 | 5,428 | |||||||||
Inventories | 3,310 | 1,813 | |||||||||
Prepaid expenses and other | 3,562 | 2,354 | |||||||||
Total current assets | 24,173 | 49,519 | |||||||||
Investments | 293 | 93 | |||||||||
Property and equipment, net | 5,248 | 2,962 | |||||||||
Intangible assets, net | 82,876 | 18,649 | |||||||||
Goodwill | 33,124 | 15,604 | |||||||||
Other assets | 4,851 | 2,288 | |||||||||
Total assets | $ | 150,565 | $ | 89,115 | |||||||
Liabilities and Equity | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings | $ | 34 | $ | — | |||||||
Current portion of long-term debt and finance lease obligations | 8,468 | 3,753 | |||||||||
Accounts payable and accrued liabilities | 20,159 | 11,832 | |||||||||
Total current liabilities | 28,661 | 15,585 | |||||||||
Long-term debt and finance lease obligations | 77,554 | 62,975 | |||||||||
Deferred income taxes | 3,646 | 1,130 | |||||||||
Other long-term liabilities | 27,607 | 17,597 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity (deficit) | |||||||||||
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,792,140,764 shares issued as of December 31, 2020 and 1,781,582,608 as of December 31, 2019
|
18 | 18 | |||||||||
Common stock held in treasury, at cost, 27,007,945 shares as of December 31, 2020 and 302,671,146 as of December 31, 2019
|
(2,264) | (24,504) | |||||||||
Additional paid-in capital | 17,384 | 15,193 | |||||||||
Retained earnings | 1,055 | 4,717 | |||||||||
Accumulated other comprehensive loss | (3,117) | (3,596) | |||||||||
Total stockholders' equity (deficit) | 13,076 | (8,172) | |||||||||
Noncontrolling interest | 21 | — | |||||||||
Total equity (deficit) | 13,097 | (8,172) | |||||||||
Total liabilities and equity | $ | 150,565 | $ | 89,115 |
51
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | Common shares outstanding | Common stock | Treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interest | Total | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 1,592 | $ | 18 | $ | (11,923) | $ | 14,270 | $ | 5,459 | $ | (2,727) | $ | — | $ | 5,097 | ||||||||||||||||||||||||||||||||
Adoption of new accounting standards(a)
|
— | — | — | — | (1,733) | — | — | (1,733) | |||||||||||||||||||||||||||||||||||||||
Net earnings attributable to AbbVie Inc. | — | — | — | — | 5,687 | — | — | 5,687 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 247 | — | 247 | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (6,045) | — | — | (6,045) | |||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (121) | — | (12,215) | — | — | — | — | (12,215) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation plans and other | 8 | — | 30 | 486 | — | — | — | 516 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,479 | 18 | (24,108) | 14,756 | 3,368 | (2,480) | — | (8,446) | |||||||||||||||||||||||||||||||||||||||
Net earnings attributable to AbbVie Inc. | — | — | — | — | 7,882 | — | — | 7,882 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (1,116) | — | (1,116) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (6,533) | — | — | (6,533) | |||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (5) | — | (428) | — | — | — | — | (428) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation plans and other | 5 | — | 32 | 437 | — | — | — | 469 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,479 | 18 | (24,504) | 15,193 | 4,717 | (3,596) | — | (8,172) | |||||||||||||||||||||||||||||||||||||||
Net earnings attributable to AbbVie Inc. | — | — | — | — | 4,616 | — | — | 4,616 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 479 | — | 479 | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | (8,278) | — | (8,278) | ||||||||||||||||||||||||||||||||||||||||
Common shares and equity awards issued for acquisition of Allergan plc | 286 | — | 23,166 | 1,243 | — | — | — | 24,409 | |||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (10) | — | (978) | — | — | — | — | (978) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation plans and other | 10 | — | 52 | 948 | — | — | — | 1,000 | |||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interest | — | — | — | — | — | — | 21 | 21 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 1,765 | $ | 18 | $ | (2,264) | $ | 17,384 | $ | 1,055 | $ | (3,117) | $ | 21 | $ | 13,097 |
2020 Form 10-K |
|
52
|
years ended December 31 (in millions) (brackets denote cash outflows) | 2020 | 2019 | 2018 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net earnings | $ | 4,622 | $ | 7,882 | $ | 5,687 | |||||||||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||||||||||||
Depreciation | 666 | 464 | 471 | ||||||||||||||
Amortization of intangible assets | 5,805 | 1,553 | 1,294 | ||||||||||||||
Deferred income taxes | (2,325) | 122 | (1,517) | ||||||||||||||
Change in fair value of contingent consideration liabilities | 5,753 | 3,091 | 49 | ||||||||||||||
Stock-based compensation | 753 | 430 | 421 | ||||||||||||||
Upfront costs and milestones related to collaborations | 1,376 | 490 | 1,061 | ||||||||||||||
Gain on divestitures | — | (330) | — | ||||||||||||||
Intangible asset impairment | — | 1,030 | 5,070 | ||||||||||||||
Impacts related to U.S. tax reform | — | — | 424 | ||||||||||||||
Other, net | 832 | 43 | 76 | ||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||||
Accounts receivable | (929) | (74) | (591) | ||||||||||||||
Inventories | (40) | (231) | (226) | ||||||||||||||
Prepaid expenses and other assets | 134 | (225) | (200) | ||||||||||||||
Accounts payable and other liabilities | 1,514 | 97 | 734 | ||||||||||||||
Income tax assets and liabilities, net | (573) | (1,018) | 674 | ||||||||||||||
Cash flows from operating activities | 17,588 | 13,324 | 13,427 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Acquisition of businesses, net of cash acquired | (38,260) | — | — | ||||||||||||||
Other acquisitions and investments | (1,350) | (1,135) | (736) | ||||||||||||||
Acquisitions of property and equipment | (798) | (552) | (638) | ||||||||||||||
Purchases of investment securities | (61) | (583) | (1,792) | ||||||||||||||
Sales and maturities of investment securities | 1,525 | 2,699 | 2,160 | ||||||||||||||
Other, net | 1,387 | 167 | — | ||||||||||||||
Cash flows from investing activities | (37,557) | 596 | (1,006) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Net change in commercial paper borrowings | — | (699) | 299 | ||||||||||||||
Proceeds from issuance of other short-term borrowings | — | — | 3,002 | ||||||||||||||
Repayments of other short-term borrowings | — | (3,000) | — | ||||||||||||||
Proceeds from issuance of long-term debt | 3,000 | 31,482 | 5,963 | ||||||||||||||
Repayments of long-term debt and finance lease obligations | (5,683) | (1,536) | (6,035) | ||||||||||||||
Debt issuance costs | (20) | (424) | (40) | ||||||||||||||
Dividends paid | (7,716) | (6,366) | (5,580) | ||||||||||||||
Purchases of treasury stock | (978) | (629) | (12,014) | ||||||||||||||
Proceeds from the exercise of stock options | 209 | 8 | 73 | ||||||||||||||
Payments of contingent consideration liabilities | (321) | (163) | (78) | ||||||||||||||
Other, net | 8 | 35 | 14 | ||||||||||||||
Cash flows from financing activities | (11,501) | 18,708 | (14,396) | ||||||||||||||
Effect of exchange rate changes on cash and equivalents | (5) | 7 | (39) | ||||||||||||||
Net change in cash and equivalents | (31,475) | 32,635 | (2,014) | ||||||||||||||
Cash and equivalents, beginning of year | 39,924 | 7,289 | 9,303 | ||||||||||||||
Cash and equivalents, end of year | $ | 8,449 | $ | 39,924 | $ | 7,289 | |||||||||||
Other supplemental information | |||||||||||||||||
Interest paid, net of portion capitalized | $ | 2,619 | $ | 1,794 | $ | 1,215 | |||||||||||
Income taxes paid (received) | 1,674 | 1,447 | (35) | ||||||||||||||
Supplemental schedule of non-cash investing and financing activities | |||||||||||||||||
Issuance of common shares associated with acquisitions of businesses | 23,979 | — | — |
53
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
54
|
55
|
| 2020 Form 10-K
|
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Finished goods | $ | 1,318 | $ | 485 | |||||||
Work-in-process | 1,201 | 942 | |||||||||
Raw materials | 791 | 386 | |||||||||
Inventories | $ | 3,310 | $ | 1,813 |
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Land | $ | 288 | $ | 72 | |||||||
Buildings | 2,555 | 1,613 | |||||||||
Equipment | 6,976 | 6,012 | |||||||||
Construction in progress | 1,040 | 491 | |||||||||
Property and equipment, gross | 10,859 | 8,188 | |||||||||
Less accumulated depreciation | (5,611) | (5,226) | |||||||||
Property and equipment, net | $ | 5,248 | $ | 2,962 |
2020 Form 10-K |
|
56
|
57
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
58
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Interest expense | $ | 2,454 | $ | 1,784 | $ | 1,348 | |||||||||||
Interest income | (174) | (275) | (204) | ||||||||||||||
Interest expense, net | $ | 2,280 | $ | 1,509 | $ | 1,144 |
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Sales rebates | $ | 7,188 | $ | 4,484 | |||||||
Dividends payable | 2,335 | 1,771 | |||||||||
Accounts payable | 2,276 | 1,452 | |||||||||
Salaries, wages and commissions | 1,669 | 830 | |||||||||
Royalty and license arrangements | 483 | 324 | |||||||||
Other | 6,208 | 2,971 | |||||||||
Accounts payable and accrued liabilities | $ | 20,159 | $ | 11,832 |
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Contingent consideration liabilities | $ | 12,289 | $ | 7,201 | |||||||
Liabilities for unrecognized tax benefits | 5,680 | 2,772 | |||||||||
Income taxes payable | 3,847 | 3,453 | |||||||||
Pension and other post-employment benefits | 3,413 | 2,949 | |||||||||
Other | 2,378 | 1,222 | |||||||||
Other long-term liabilities | $ | 27,607 | $ | 17,597 |
59
|
| 2020 Form 10-K
|
Years ended December 31, | |||||||||||||||||
(in millions, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
Basic EPS | |||||||||||||||||
Net earnings attributable to AbbVie Inc. | $ | 4,616 | $ | 7,882 | $ | 5,687 | |||||||||||
Earnings allocated to participating securities | 60 | 40 | 30 | ||||||||||||||
Earnings available to common shareholders | $ | 4,556 | $ | 7,842 | $ | 5,657 | |||||||||||
Weighted average basic shares of common stock outstanding | 1,667 | 1,481 | 1,541 | ||||||||||||||
Basic earnings per share attributable to AbbVie Inc. | $ | 2.73 | $ | 5.30 | $ | 3.67 | |||||||||||
Diluted EPS | |||||||||||||||||
Net earnings attributable to AbbVie Inc. | $ | 4,616 | $ | 7,882 | $ | 5,687 | |||||||||||
Earnings allocated to participating securities | 60 | 40 | 30 | ||||||||||||||
Earnings available to common shareholders | $ | 4,556 | $ | 7,842 | $ | 5,657 | |||||||||||
Weighted average shares of common stock outstanding | 1,667 | 1,481 | 1,541 | ||||||||||||||
Effect of dilutive securities | 6 | 3 | 5 | ||||||||||||||
Weighted average diluted shares of common stock outstanding | 1,673 | 1,484 | 1,546 | ||||||||||||||
Diluted earnings per share attributable to AbbVie Inc. | $ | 2.72 | $ | 5.28 | $ | 3.66 |
2020 Form 10-K |
|
60
|
61
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | 2020 | 2019 | ||||||||||||
Net revenues | $ | 50,521 | $ | 49,028 | ||||||||||
Net earnings (loss) | 6,746 | (38) |
2020 Form 10-K |
|
62
|
63
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
United States - Janssen's share of profits (included in cost of products sold) | $ | 2,012 | $ | 1,803 | $ | 1,372 | |||||||||||
International - AbbVie's share of profits (included in net revenues) | 1,009 | 844 | 622 | ||||||||||||||
Global - AbbVie's share of other costs (included in respective line items) | 295 | 321 | 326 |
2020 Form 10-K |
|
64
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Genentech's share of profits, including royalties (included in cost of products sold) | $ | 533 | $ | 320 | $ | 141 | |||||||||||
AbbVie's share of sales and marketing costs from U.S. collaboration (included in SG&A) | 46 | 41 | 27 | ||||||||||||||
AbbVie's share of development costs (included in R&D) | 129 | 128 | 160 |
(in millions) | |||||
Balance as of December 31, 2018 | $ | 15,663 | |||
Foreign currency translation adjustments | (59) | ||||
Balance as of December 31, 2019 | 15,604 | ||||
Additions(a)
|
17,008 | ||||
Foreign currency translation adjustments | 512 | ||||
Balance as of December 31, 2020 | $ | 33,124 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
as of December 31 (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 | $ | 87,707 | $ | (11,620) | $ | 76,087 | $ | 19,547 | $ | (6,405) | $ | 13,142 | |||||||||||||||||||||||
License agreements | 7,828 | (2,916) | 4,912 | 7,798 | (2,291) | 5,507 | |||||||||||||||||||||||||||||
Total definite-lived intangible assets | 95,535 | (14,536) | 80,999 | 27,345 | (8,696) | 18,649 | |||||||||||||||||||||||||||||
Indefinite-lived research and development | 1,877 | — | 1,877 | — | — | — | |||||||||||||||||||||||||||||
Total intangible assets, net | $ | 97,412 | $ | (14,536) | $ | 82,876 | $ | 27,345 | $ | (8,696) | $ | 18,649 |
65
|
| 2020 Form 10-K
|
(in billions) | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||||||||||||
Anticipated annual amortization expense | $ | 7.7 | $ | 7.2 | $ | 7.5 | $ | 8.0 | $ | 8.4 |
2020 | ||||||||||||||
year ended December 31 (in millions) | Severance and employee benefits | Other integration | ||||||||||||
Cost of products sold | $ | 109 | $ | 21 | ||||||||||
Research and development | 199 | 177 | ||||||||||||
Selling, general and administrative | 388 | 237 | ||||||||||||
Total charges | $ | 696 | $ | 435 |
2020 | ||||||||||||||
year ended December 31 (in millions) | Severance and employee benefits | Other integration | ||||||||||||
Charges | $ | 594 | $ | 435 | ||||||||||
Payments and other adjustments | (227) | (415) | ||||||||||||
Accrued balance as of December 31, 2020 | $ | 367 | $ | 20 |
2020 Form 10-K |
|
66
|
as of December 31 (in millions) | Balance sheet caption | 2020 | 2019 | |||||||||||
Assets | ||||||||||||||
Operating | Other assets | $ | 895 | $ | 344 | |||||||||
Finance | Property and equipment, net | 27 | 23 | |||||||||||
Total lease assets | $ | 922 | $ | 367 | ||||||||||
Liabilities | ||||||||||||||
Operating | ||||||||||||||
Current | Accounts payable and accrued liabilities | $ | 175 | $ | 109 | |||||||||
Noncurrent | Other long-term liabilities | 832 | 251 | |||||||||||
Finance | ||||||||||||||
Current | Current portion of long-term debt and finance lease obligations | 8 | 7 | |||||||||||
Noncurrent | Long-term debt and finance lease obligations | 21 | 20 | |||||||||||
Total lease liabilities | $ | 1,036 | $ | 387 |
67
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | 2020 | 2019 | ||||||||||||
Operating lease cost | $ | 192 | $ | 124 | ||||||||||
Short-term lease cost | 59 | 34 | ||||||||||||
Variable lease cost | 60 | 62 | ||||||||||||
Total lease cost | $ | 311 | $ | 220 |
December 31,
2020 |
December 31,
2019 |
||||||||||
Weighted-average remaining lease term (years) | |||||||||||
Operating | 8 | 5 | |||||||||
Finance | 3 | 3 | |||||||||
Weighted-average discount rate | |||||||||||
Operating | 2.5 | % | 3.9 | % | |||||||
Finance | 1.4 | % | 3.9 | % |
years ended December 31 (in millions) | 2020 | 2019 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||
Operating cash flows from operating leases | $ | 185 | $ | 125 | |||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 692 | 26 |
(in millions) |
Operating
leases |
Finance
leases |
Total (a)
|
||||||||||||||
2021 | $ | 202 | $ | 27 | $ | 229 | |||||||||||
2022 | 178 | 3 | 181 | ||||||||||||||
2023 | 140 | 2 | 142 | ||||||||||||||
2024 | 111 | 1 | 112 | ||||||||||||||
2025 | 96 | — | 96 | ||||||||||||||
Thereafter | 394 | — | 394 | ||||||||||||||
Total lease payments | 1,121 | 33 | 1,154 | ||||||||||||||
Less: Interest | 114 | 4 | 118 | ||||||||||||||
Present value of lease liabilities | $ | 1,007 | $ | 29 | $ | 1,036 |
2020 Form 10-K |
|
68
|
as of December 31 (dollars in millions) |
Effective
interest rate
in 2020(a)
|
2020 |
Effective
interest rate
in 2019(a)
|
2019 | ||||||||||||||||||||||||||||||||||
Senior notes issued in 2012 | ||||||||||||||||||||||||||||||||||||||
2.90% notes due 2022
|
2.97 | % | $ | 3,100 | 2.97 | % | $ | 3,100 | ||||||||||||||||||||||||||||||
4.40% notes due 2042
|
4.46 | % | 2,600 | 4.46 | % | 2,600 | ||||||||||||||||||||||||||||||||
Senior notes issued in 2015 | ||||||||||||||||||||||||||||||||||||||
2.50% notes due 2020
|
2.65 | % | — | 2.65 | % | 3,750 | ||||||||||||||||||||||||||||||||
3.20% notes due 2022
|
3.28 | % | 1,000 | 3.28 | % | 1,000 | ||||||||||||||||||||||||||||||||
3.60% notes due 2025
|
3.66 | % | 3,750 | 3.66 | % | 3,750 | ||||||||||||||||||||||||||||||||
4.50% notes due 2035
|
4.58 | % | 2,500 | 4.58 | % | 2,500 | ||||||||||||||||||||||||||||||||
4.70% notes due 2045
|
4.73 | % | 2,700 | 4.73 | % | 2,700 | ||||||||||||||||||||||||||||||||
Senior notes issued in 2016 | ||||||||||||||||||||||||||||||||||||||
2.30% notes due 2021
|
2.40 | % | 1,800 | 2.40 | % | 1,800 | ||||||||||||||||||||||||||||||||
2.85% notes due 2023
|
2.91 | % | 1,000 | 2.91 | % | 1,000 | ||||||||||||||||||||||||||||||||
3.20% notes due 2026
|
3.28 | % | 2,000 | 3.28 | % | 2,000 | ||||||||||||||||||||||||||||||||
4.30% notes due 2036
|
4.37 | % | 1,000 | 4.37 | % | 1,000 | ||||||||||||||||||||||||||||||||
4.45% notes due 2046
|
4.50 | % | 2,000 | 4.50 | % | 2,000 | ||||||||||||||||||||||||||||||||
Senior Euro notes issued in 2016 | ||||||||||||||||||||||||||||||||||||||
1.375% notes due 2024 (€1,450 principal)
|
1.46 | % | 1,783 | 1.46 | % | 1,625 | ||||||||||||||||||||||||||||||||
2.125% notes due 2028 (€750 principal)
|
2.18 | % | 922 | 2.18 | % | 840 | ||||||||||||||||||||||||||||||||
Senior notes issued in 2018 | ||||||||||||||||||||||||||||||||||||||
3.375% notes due 2021
|
3.51 | % | 1,250 | 3.51 | % | 1,250 | ||||||||||||||||||||||||||||||||
3.75% notes due 2023
|
3.84 | % | 1,250 | 3.84 | % | 1,250 | ||||||||||||||||||||||||||||||||
4.25% notes due 2028
|
4.38 | % | 1,750 | 4.38 | % | 1,750 | ||||||||||||||||||||||||||||||||
4.875% notes due 2048
|
4.94 | % | 1,750 | 4.94 | % | 1,750 | ||||||||||||||||||||||||||||||||
Senior Euro notes issued in 2019 | ||||||||||||||||||||||||||||||||||||||
0.75% notes due 2027 (€750 principal)
|
0.86 | % | 922 | 0.86 | % | 840 | ||||||||||||||||||||||||||||||||
1.25% notes due 2031 (€650 principal)
|
1.30 | % | 799 | 1.30 | % | 728 | ||||||||||||||||||||||||||||||||
Senior notes issued in 2019 | ||||||||||||||||||||||||||||||||||||||
Floating rate notes due May 2021 | 1.33 | % | 750 | 2.08 | % | 750 | ||||||||||||||||||||||||||||||||
Floating rate notes due November 2021 | 1.42 | % | 750 | 2.12 | % | 750 | ||||||||||||||||||||||||||||||||
Floating rate notes due 2022 | 1.62 | % | 750 | 2.29 | % | 750 | ||||||||||||||||||||||||||||||||
2.15% notes due 2021
|
2.23 | % | 1,750 | 2.23 | % | 1,750 | ||||||||||||||||||||||||||||||||
2.30% notes due 2022
|
2.42 | % | 3,000 | 2.42 | % | 3,000 | ||||||||||||||||||||||||||||||||
2.60% notes due 2024
|
2.69 | % | 3,750 | 2.69 | % | 3,750 | ||||||||||||||||||||||||||||||||
2.95% notes due 2026
|
3.02 | % | 4,000 | 3.02 | % | 4,000 | ||||||||||||||||||||||||||||||||
3.20% notes due 2029
|
3.25 | % | 5,500 | 3.25 | % | 5,500 | ||||||||||||||||||||||||||||||||
4.05% notes due 2039
|
4.11 | % | 4,000 | 4.11 | % | 4,000 | ||||||||||||||||||||||||||||||||
4.25% notes due 2049
|
4.29 | % | 5,750 | 4.29 | % | 5,750 | ||||||||||||||||||||||||||||||||
Term loan facilities | ||||||||||||||||||||||||||||||||||||||
Floating rate notes due 2023 | 1.29 | % | 1,000 | — | % | — | ||||||||||||||||||||||||||||||||
Floating rate notes due 2025 | 1.42 | % | 2,000 | — | % | — | ||||||||||||||||||||||||||||||||
Senior notes acquired in 2020 | ||||||||||||||||||||||||||||||||||||||
5.000% notes due 2021
|
1.59 | % | 1,200 | — | % | — | ||||||||||||||||||||||||||||||||
3.450% notes due 2022
|
1.89 | % | 2,878 | — | % | — | ||||||||||||||||||||||||||||||||
3.250% notes due 2022
|
1.85 | % | 1,700 | — | % | — | ||||||||||||||||||||||||||||||||
2.800% notes due 2023
|
2.08 | % | 350 | — | % | — | ||||||||||||||||||||||||||||||||
3.850% notes due 2024
|
1.98 | % | 1,032 | — | % | — | ||||||||||||||||||||||||||||||||
3.800% notes due 2025
|
2.00 | % | 3,021 | — | % | — | ||||||||||||||||||||||||||||||||
4.550% notes due 2035
|
3.43 | % | 1,789 | — | % | — | ||||||||||||||||||||||||||||||||
4.625% notes due 2042
|
3.93 | % | 457 | — | % | — | ||||||||||||||||||||||||||||||||
4.850% notes due 2044
|
4.02 | % | 1,074 | — | % | — | ||||||||||||||||||||||||||||||||
4.750% notes due 2045
|
4.13 | % | 881 | — | % | — |
69
|
| 2020 Form 10-K
|
as of December 31 (dollars in millions) |
Effective
interest rate
in 2020(a)
|
2020 |
Effective
interest rate
in 2019(a)
|
2019 | ||||||||||||||||||||||||||||||||||
Senior Euro notes acquired in 2020 | ||||||||||||||||||||||||||||||||||||||
0.500% notes due 2021 (€750 principal)
|
0.68 | % | 922 | — | % | — | ||||||||||||||||||||||||||||||||
1.500% notes due 2023 (€500 principal)
|
0.48 | % | 615 | — | % | — | ||||||||||||||||||||||||||||||||
1.250% notes due 2024 (€700 principal)
|
0.64 | % | 861 | — | % | — | ||||||||||||||||||||||||||||||||
2.625% notes due 2028 (€500 principal)
|
1.18 | % | 615 | — | % | — | ||||||||||||||||||||||||||||||||
2.125% notes due 2029 (€550 principal)
|
1.18 | % | 677 | — | % | — | ||||||||||||||||||||||||||||||||
Other | 29 | 27 | ||||||||||||||||||||||||||||||||||||
Fair value hedges | 278 | (48) | ||||||||||||||||||||||||||||||||||||
Unamortized bond discounts | (146) | (161) | ||||||||||||||||||||||||||||||||||||
Unamortized deferred financing costs | (287) | (323) | ||||||||||||||||||||||||||||||||||||
Unamortized bond premiums (b)
|
1,200 | — | ||||||||||||||||||||||||||||||||||||
Total long-term debt and finance lease obligations | 86,022 | 66,728 | ||||||||||||||||||||||||||||||||||||
Current portion | 8,468 | 3,753 | ||||||||||||||||||||||||||||||||||||
Noncurrent portion | $ | 77,554 | $ | 62,975 |
2020 Form 10-K |
|
70
|
71
|
| 2020 Form 10-K
|
as of and for the years ending December 31 (in millions) | |||||
2021 | $ | 8,422 | |||
2022 | 12,428 | ||||
2023 | 4,215 | ||||
2024 | 7,426 | ||||
2025 | 8,771 | ||||
Thereafter | 43,686 | ||||
Total obligations and commitments | 84,948 | ||||
Fair value hedges, unamortized bond premiums and discounts, deferred financing costs and finance
lease obligations |
1,074 | ||||
Total long-term debt and finance lease obligations | $ | 86,022 |
2020 Form 10-K |
|
72
|
Fair value -
Derivatives in asset position
|
Fair value -
Derivatives in liability position |
||||||||||||||||||||||
as of December 31 (in millions) | Balance sheet caption | 2020 | 2019 | Balance sheet caption | 2020 | 2019 | |||||||||||||||||
Foreign currency forward exchange contracts | |||||||||||||||||||||||
Designated as cash flow hedges | Prepaid expenses and other | $ | 2 | $ | 3 | Accounts payable and accrued liabilities | $ | 82 | $ | 14 | |||||||||||||
Designated as cash flow hedges | Other assets | — | — | Other long-term liabilities | 6 | — | |||||||||||||||||
Designated as net investment hedges | Prepaid expenses and other | — | — | Accounts payable and accrued liabilities | 11 | 24 | |||||||||||||||||
Not designated as hedges | Prepaid expenses and other | 49 | 19 | Accounts payable and accrued liabilities | 33 | 18 | |||||||||||||||||
Interest rate swap contracts | |||||||||||||||||||||||
Designated as cash flow hedges | Prepaid expenses and other | — | — | Accounts payable and accrued liabilities | 14 | — | |||||||||||||||||
Designated as cash flow hedges | Other assets | — | 3 | Other long-term liabilities | 20 | — | |||||||||||||||||
Designated as fair value hedges | Prepaid expenses and other | 7 | — | Accounts payable and accrued liabilities | — | 2 | |||||||||||||||||
Designated as fair value hedges | Other assets | 131 | 28 | Other long-term liabilities | — | 74 | |||||||||||||||||
Total derivatives | $ | 189 | $ | 53 | $ | 166 | $ | 132 |
73
|
| 2020 Form 10-K
|
years ended in December 31 (in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
Foreign currency forward exchange contracts | ||||||||||||||||||||
Designated as cash flow hedges | $ | (71) | $ | (5) | $ | 175 | ||||||||||||||
Designated as net investment hedges | (95) | 33 | — | |||||||||||||||||
Interest rate swap contracts designated as cash flow hedges | (53) | 4 | — | |||||||||||||||||
Treasury rate lock agreements designated as cash flow hedges | — | 383 | — |
years ended December 31 (in millions) | Statement of earnings caption | 2020 | 2019 | 2018 | ||||||||||||||||
Foreign currency forward exchange contracts | ||||||||||||||||||||
Designated as cash flow hedges | Cost of products sold | $ | 23 | $ | 167 | $ | (161) | |||||||||||||
Designated as net investment hedges | Interest expense, net | 18 | 27 | — | ||||||||||||||||
Not designated as hedges | Net foreign exchange loss | 58 | (70) | 83 | ||||||||||||||||
Treasury rate lock agreements designated as cash flow hedges | Interest expense, net | 24 | 3 | — | ||||||||||||||||
Interest rate swap contracts | ||||||||||||||||||||
Designated as cash flow hedges | Interest expense, net | (17) | 1 | — | ||||||||||||||||
Designated as fair value hedges | Interest expense, net | 365 | 418 | (71) | ||||||||||||||||
Debt designated as hedged item in fair value hedges | Interest expense, net | (365) | (418) | 71 |
2020 Form 10-K |
|
74
|
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 | $ | 8,449 | $ | 2,758 | $ | 5,691 | $ | — | |||||||||||||||
Money market funds and time deposits | 12 | — | 12 | — | |||||||||||||||||||
Debt securities | 50 | — | 50 | — | |||||||||||||||||||
Equity securities | 159 | 149 | 10 | — | |||||||||||||||||||
Interest rate swap contracts | 138 | — | 138 | — | |||||||||||||||||||
Foreign currency contracts | 51 | — | 51 | — | |||||||||||||||||||
Total assets | $ | 8,859 | $ | 2,907 | $ | 5,952 | $ | — | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest rate swap contracts | $ | 34 | $ | — | $ | 34 | $ | — | |||||||||||||||
Foreign currency contracts | 132 | — | 132 | — | |||||||||||||||||||
Contingent consideration | 12,997 | — | — | 12,997 | |||||||||||||||||||
Total liabilities | $ | 13,163 | $ | — | $ | 166 | $ | 12,997 |
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 |
75
|
| 2020 Form 10-K
|
Range |
Weighted Average(a)
|
|||||||
Discount rate |
0.1% - 2.2%
|
1.1%
|
||||||
Probability of payment for unachieved milestones |
56% - 92%
|
64%
|
||||||
Probability of payment for royalties by indication(b)
|
56% - 100%
|
91%
|
||||||
Projected year of payments |
2021 - 2034
|
2027
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 7,340 | $ | 4,483 | $ | 4,534 | |||||||||||
Additions(a)
|
225 | — | — | ||||||||||||||
Change in fair value recognized in net earnings | 5,753 | 3,091 | 49 | ||||||||||||||
Payments | (321) | (234) | (100) | ||||||||||||||
Ending balance | $ | 12,997 | $ | 7,340 | $ | 4,483 |
2020 Form 10-K |
|
76
|
Basis of fair value measurement | ||||||||||||||||||||||||||
(in millions) | Book value | Approximate fair values |
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 | $ | 34 | $ | 34 | $ | — | $ | 34 | $ | — | ||||||||||||||||
Current portion of long-term debt and finance lease obligations, excluding fair value hedges | 8,461 | 8,542 | 8,249 | 293 | — | |||||||||||||||||||||
Long-term debt and finance lease obligations, excluding fair value hedges | 77,283 | 87,761 | 86,137 | 1,624 | — | |||||||||||||||||||||
Total liabilities | $ | 85,778 | $ | 96,337 | $ | 94,386 | $ | 1,951 | $ | — |
Basis of fair value measurement | ||||||||||||||||||||||||||
(in millions) | Book value | Approximate fair values |
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 | $ | — |
77
|
| 2020 Form 10-K
|
Defined benefit plans | Other post-employment plans | ||||||||||||||||||||||
as of and for the years ended December 31 (in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Projected benefit obligations | |||||||||||||||||||||||
Beginning of period | $ | 8,646 | $ | 6,618 | $ | 1,050 | $ | 561 | |||||||||||||||
Service cost | 370 | 269 | 42 | 25 | |||||||||||||||||||
Interest cost | 264 | 259 | 34 | 29 | |||||||||||||||||||
Employee contributions | 2 | 2 | — | — | |||||||||||||||||||
Amendments | — | — | (397) | — | |||||||||||||||||||
Actuarial loss | 1,105 | 1,703 | 40 | 451 | |||||||||||||||||||
Benefits paid | (249) | (206) | (17) | (17) | |||||||||||||||||||
Acquisition | 1,409 | — | 43 | — | |||||||||||||||||||
Other, primarily foreign currency translation adjustments | 245 | 1 | — | 1 | |||||||||||||||||||
End of period | 11,792 | 8,646 | 795 | 1,050 | |||||||||||||||||||
Fair value of plan assets | |||||||||||||||||||||||
Beginning of period | 7,116 | 5,637 | — | — | |||||||||||||||||||
Actual return on plan assets | 979 | 946 | — | — | |||||||||||||||||||
Company contributions | 367 | 727 | 17 | 17 | |||||||||||||||||||
Employee contributions | 2 | 2 | — | — | |||||||||||||||||||
Benefits paid | (249) | (206) | (17) | (17) | |||||||||||||||||||
Acquisition | 1,296 | — | — | — | |||||||||||||||||||
Other, primarily foreign currency translation adjustments | 191 | 10 | — | — | |||||||||||||||||||
End of period | 9,702 | 7,116 | — | — | |||||||||||||||||||
Funded status, end of period | $ | (2,090) | $ | (1,530) | $ | (795) | $ | (1,050) | |||||||||||||||
Amounts recognized on the consolidated balance sheets | |||||||||||||||||||||||
Other assets | $ | 563 | $ | 395 | $ | — | $ | — | |||||||||||||||
Accounts payable and accrued liabilities | (12) | (8) | (23) | (18) | |||||||||||||||||||
Other long-term liabilities | (2,641) | (1,917) | (772) | (1,032) | |||||||||||||||||||
Net obligation | $ | (2,090) | $ | (1,530) | $ | (795) | $ | (1,050) | |||||||||||||||
Actuarial loss, net | $ | 4,163 | $ | 3,633 | $ | 482 | $ | 469 | |||||||||||||||
Prior service cost (credit) | 8 | 10 | (408) | (16) | |||||||||||||||||||
Accumulated other comprehensive loss | $ | 4,171 | $ | 3,643 | $ | 74 | $ | 453 |
2020 Form 10-K |
|
78
|
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Accumulated benefit obligation | $ | 7,527 | $ | 5,752 | |||||||
Fair value of plan assets | 6,066 | 4,820 |
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Projected benefit obligation | $ | 8,719 | $ | 6,820 | |||||||
Fair value of plan assets | 6,066 | 4,895 |
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Defined benefit plans | |||||||||||||||||
Actuarial loss | $ | 701 | $ | 1,231 | $ | 209 | |||||||||||
Amortization of prior service cost | (2) | — | — | ||||||||||||||
Amortization of actuarial loss | (227) | (109) | (140) | ||||||||||||||
Foreign exchange loss (gain) and other | 56 | (6) | (13) | ||||||||||||||
Total loss | $ | 528 | $ | 1,116 | $ | 56 | |||||||||||
Other post-employment plans | |||||||||||||||||
Actuarial loss (gain) | $ | 40 | $ | 451 | $ | (287) | |||||||||||
Prior service cost (credit) | (397) | — | — | ||||||||||||||
Amortization of prior service credit | 4 | — | — | ||||||||||||||
Amortization of actuarial loss | (26) | (1) | (1) | ||||||||||||||
Total loss (gain) | $ | (379) | $ | 450 | $ | (288) |
79
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Defined benefit plans | |||||||||||||||||
Service cost | $ | 370 | $ | 269 | $ | 285 | |||||||||||
Interest cost | 264 | 259 | 227 | ||||||||||||||
Expected return on plan assets | (575) | (474) | (439) | ||||||||||||||
Amortization of prior service cost | 2 | — | — | ||||||||||||||
Amortization of actuarial loss | 227 | 109 | 140 | ||||||||||||||
Net periodic benefit cost | $ | 288 | $ | 163 | $ | 213 | |||||||||||
Other post-employment plans | |||||||||||||||||
Service cost | $ | 42 | $ | 25 | $ | 26 | |||||||||||
Interest cost | 34 | 29 | 25 | ||||||||||||||
Amortization of prior service credit | (4) | — | — | ||||||||||||||
Amortization of actuarial loss | 26 | 1 | 1 | ||||||||||||||
Net periodic benefit cost | $ | 98 | $ | 55 | $ | 52 |
as of December 31 | 2020 | 2019 | |||||||||
Defined benefit plans | |||||||||||
Discount rate | 2.4 | % | 3.0 | % | |||||||
Rate of compensation increases | 4.6 | % | 4.6 | % | |||||||
Cash balance interest crediting rate | 2.8 | % | 2.8 | % | |||||||
Other post-employment plans | |||||||||||
Discount rate | 2.8 | % | 3.6 | % |
years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Defined benefit plans | |||||||||||||||||
Discount rate for determining service cost | 3.1 | % | 4.0 | % | 3.4 | % | |||||||||||
Discount rate for determining interest cost | 3.0 | % | 4.0 | % | 3.1 | % | |||||||||||
Expected long-term rate of return on plan assets | 7.1 | % | 7.6 | % | 7.7 | % | |||||||||||
Expected rate of change in compensation | 4.6 | % | 4.6 | % | 4.4 | % | |||||||||||
Cash balance interest crediting rate | 2.8 | % | 2.8 | % | 2.8 | % | |||||||||||
Other post-employment plans | |||||||||||||||||
Discount rate for determining service cost | 3.7 | % | 4.7 | % | 4.0 | % | |||||||||||
Discount rate for determining interest cost | 3.2 | % | 4.3 | % | 3.7 | % |
2020 Form 10-K |
|
80
|
Basis of fair value measurement | |||||||||||||||||||||||
as of December 31 (in millions) | 2020 |
Quoted prices in active markets for identical assets
(Level 1) |
Significant other observable inputs
(Level 2) |
Significant unobservable inputs
(Level 3) |
|||||||||||||||||||
Equities | |||||||||||||||||||||||
U.S. large cap(a)
|
$ | 1,143 | $ | 1,143 | $ | — | $ | — | |||||||||||||||
U.S. mid cap(b)
|
164 | 164 | — | — | |||||||||||||||||||
International(c)
|
524 | 524 | — | — | |||||||||||||||||||
Fixed income securities | |||||||||||||||||||||||
U.S. government securities(d)
|
132 | 18 | 114 | — | |||||||||||||||||||
Corporate debt instruments(d)
|
854 | 178 | 676 | — | |||||||||||||||||||
Non-U.S. government securities(d)
|
544 | 397 | 147 | — | |||||||||||||||||||
Other(d)
|
297 | 294 | 3 | — | |||||||||||||||||||
Absolute return funds(e)
|
310 | 4 | 306 | — | |||||||||||||||||||
Real assets | 10 | 10 | — | — | |||||||||||||||||||
Other(f)
|
252 | 250 | 2 | — | |||||||||||||||||||
Total | $ | 4,230 | $ | 2,982 | $ | 1,248 | $ | — | |||||||||||||||
Total assets measured at NAV | 5,472 | ||||||||||||||||||||||
Fair value of plan assets | $ | 9,702 |
Basis of fair value measurement | |||||||||||||||||||||||
as of December 31 (in millions) | 2019 |
Quoted prices in active markets for identical assets
(Level 1) |
Significant other observable inputs
(Level 2) |
Significant unobservable inputs
(Level 3) |
|||||||||||||||||||
Equities | |||||||||||||||||||||||
U.S. large cap(a)
|
$ | 884 | $ | 884 | $ | — | $ | — | |||||||||||||||
U.S. mid cap(b)
|
138 | 138 | — | — | |||||||||||||||||||
International(c)
|
349 | 349 | — | — | |||||||||||||||||||
Fixed income securities | |||||||||||||||||||||||
U.S. government securities(d)
|
149 | 21 | 128 | — | |||||||||||||||||||
Corporate debt instruments(d)
|
372 | 112 | 260 | — | |||||||||||||||||||
Non-U.S. government securities(d)
|
202 | 84 | 118 | — | |||||||||||||||||||
Other(d)
|
320 | 318 | 2 | — | |||||||||||||||||||
Absolute return funds(e)
|
296 | 4 | 292 | — | |||||||||||||||||||
Real assets | 9 | 9 | — | — | |||||||||||||||||||
Other(f)
|
132 | 132 | — | — | |||||||||||||||||||
Total | $ | 2,851 | $ | 2,051 | $ | 800 | $ | — | |||||||||||||||
Total assets measured at NAV | 4,265 | ||||||||||||||||||||||
Fair value of plan assets | $ | 7,116 |
81
|
| 2020 Form 10-K
|
years ending December 31 (in millions) |
Defined
benefit plans |
Other
post-employment plans |
|||||||||
2021 | $ | 284 | $ | 23 | |||||||
2022 | 301 | 29 | |||||||||
2023 | 319 | 31 | |||||||||
2024 | 339 | 33 | |||||||||
2025 | 362 | 36 | |||||||||
2026 to 2030 | 2,169 | 217 |
2020 Form 10-K |
|
82
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Cost of products sold | $ | 47 | $ | 29 | $ | 27 | |||||||||||
Research and development | 247 | 171 | 169 | ||||||||||||||
Selling, general and administrative | 459 | 230 | 225 | ||||||||||||||
Pre-tax compensation expense | 753 | 430 | 421 | ||||||||||||||
Tax benefit | 131 | 80 | 73 | ||||||||||||||
After-tax compensation expense | $ | 622 | $ | 350 | $ | 348 |
(options in thousands, aggregate intrinsic value in millions) | Options |
Weighted- average
exercise price |
Weighted-average remaining
life (in years) |
Aggregate intrinsic value | |||||||||||||||||||
Outstanding at December 31, 2019 | 6,761 | $ | 60.39 | 5.9 | $ | 207 | |||||||||||||||||
Granted | 1,995 | 93.50 | |||||||||||||||||||||
Granted in acquisition | 11,152 | 70.48 | |||||||||||||||||||||
Exercised | (4,129) | 51.29 | |||||||||||||||||||||
Lapsed | (88) | 107.33 | |||||||||||||||||||||
Outstanding at December 31, 2020 | 15,691 | $ | 73.90 | 4.7 | $ | 559 | |||||||||||||||||
Exercisable at December 31, 2020 | 12,440 | $ | 69.99 | 3.6 | $ | 498 |
83
|
| 2020 Form 10-K
|
(share units in thousands) | Share units | Weighted-average grant date fair value | |||||||||
Outstanding at December 31, 2019 | 10,232 | $ | 81.72 | ||||||||
Granted | 5,524 | 92.35 | |||||||||
Granted in acquisition | 8,234 | 83.96 | |||||||||
Vested | (6,667) | 80.09 | |||||||||
Forfeited | (1,405) | 84.13 | |||||||||
Outstanding at December 31, 2020 | 15,918 | $ | 87.03 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Date Declared | Payment Date | Dividend Per Share | Date Declared | Payment Date | Dividend Per Share | Date Declared | Payment Date | Dividend Per Share | ||||||||||||||||||||||||||||||||||||||||||
10/30/20 | 02/16/21 | $1.30 | 11/01/19 | 02/14/20 | $1.18 | 11/02/18 | 02/15/19 | $1.07 | ||||||||||||||||||||||||||||||||||||||||||
09/11/20 | 11/16/20 | $1.18 | 09/06/19 | 11/15/19 | $1.07 | 09/07/18 | 11/15/18 | $0.96 | ||||||||||||||||||||||||||||||||||||||||||
06/17/20 | 08/14/20 | $1.18 | 06/20/19 | 08/15/19 | $1.07 | 06/14/18 | 08/15/18 | $0.96 | ||||||||||||||||||||||||||||||||||||||||||
02/20/20 | 05/15/20 | $1.18 | 02/21/19 | 05/15/19 | $1.07 | 02/15/18 | 05/15/18 | $0.96 |
2020 Form 10-K |
|
84
|
(in millions) (brackets denote losses) | 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, 2017 | $ | (439) | $ | (203) | $ | (1,919) | $ | — | $ | (166) | $ | (2,727) | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (391) | 138 | 84 | (14) | 156 | (27) | |||||||||||||||||||||||||||||
Net losses reclassified from accumulated other comprehensive loss | — | — | 113 | 4 | 157 | 274 | |||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | (391) | 138 | 197 | (10) | 313 | 247 | |||||||||||||||||||||||||||||
Balance as of December 31, 2018 | (830) | (65) | (1,722) | (10) | 147 | (2,480) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (98) | 95 | (1,330) | 12 | 298 | (1,023) | |||||||||||||||||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive loss | — | (21) | 87 | (2) | (157) | (93) | |||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | (98) | 74 | (1,243) | 10 | 141 | (1,116) | |||||||||||||||||||||||||||||
Balance as of December 31, 2019 | (928) | 9 | (2,965) | — | 288 | (3,596) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,511 | (785) | (300) | — | (108) | 318 | |||||||||||||||||||||||||||||
Net losses (gains) reclassified from accumulated other comprehensive loss | — | (14) | 198 | — | (23) | 161 | |||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | 1,511 | (799) | (102) | — | (131) | 479 | |||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 583 | $ | (790) | $ | (3,067) | $ | — | $ | 157 | $ | (3,117) |
85
|
| 2020 Form 10-K
|
years ended December 31 (in millions) (brackets denote gains) | 2020 | 2019 | 2018 | ||||||||||||||
Net investment hedging activities | |||||||||||||||||
Gains on derivative amount excluded from effectiveness testing(a)
|
$ | (18) | $ | (27) | $ | — | |||||||||||
Tax expense | 4 | 6 | — | ||||||||||||||
Total reclassifications, net of tax | $ | (14) | $ | (21) | $ | — | |||||||||||
Pension and post-employment benefits | |||||||||||||||||
Amortization of actuarial losses and other(b)
|
$ | 251 | $ | 110 | $ | 141 | |||||||||||
Tax benefit | (53) | (23) | (28) | ||||||||||||||
Total reclassifications, net of tax | $ | 198 | $ | 87 | $ | 113 | |||||||||||
Cash flow hedging activities | |||||||||||||||||
Losses (gains) on foreign currency forward exchange contracts(c)
|
$ | (23) | $ | (167) | $ | 161 | |||||||||||
Gains on treasury rate lock agreements(a)
|
(24) | (3) | — | ||||||||||||||
Losses (gains) on interest rate swap contracts(a)
|
17 | (1) | — | ||||||||||||||
Tax expense (benefit) | 7 | 14 | (4) | ||||||||||||||
Total reclassifications, net of tax | $ | (23) | $ | (157) | $ | 157 |
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Domestic | $ | (4,467) | $ | (2,784) | $ | (4,274) | |||||||||||
Foreign | 7,865 | 11,210 | 9,471 | ||||||||||||||
Total earnings before income tax expense | $ | 3,398 | $ | 8,426 | $ | 5,197 |
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Current | |||||||||||||||||
Domestic | $ | 907 | $ | 102 | $ | 593 | |||||||||||
Foreign | 194 | 320 | 434 | ||||||||||||||
Total current taxes | $ | 1,101 | $ | 422 | $ | 1,027 | |||||||||||
Deferred | |||||||||||||||||
Domestic | $ | (58) | $ | (137) | $ | (1,497) | |||||||||||
Foreign | (2,267) | 259 | (20) | ||||||||||||||
Total deferred taxes | $ | (2,325) | $ | 122 | $ | (1,517) | |||||||||||
Total income tax expense (benefit) | $ | (1,224) | $ | 544 | $ | (490) |
2020 Form 10-K |
|
86
|
years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Effect of foreign operations | 2.4 | (8.4) | (28.7) | ||||||||||||||
U.S. tax credits | (10.6) | (3.3) | (7.3) | ||||||||||||||
Impacts related to U.S. tax reform | (1.1) | (1.6) | 8.2 | ||||||||||||||
Non-deductible expenses | 7.2 | 1.0 | 1.2 | ||||||||||||||
Tax law changes and related restructuring | (48.5) | 3.1 | — | ||||||||||||||
Stock-based compensation excess tax benefit | (0.9) | (0.2) | (1.5) | ||||||||||||||
Tax audit settlements | (5.1) | (4.7) | (2.5) | ||||||||||||||
All other, net | (0.4) | (0.4) | 0.2 | ||||||||||||||
Effective tax rate | (36.0) | % | 6.5 | % | (9.4) | % |
87
|
| 2020 Form 10-K
|
as of December 31 (in millions) | 2020 | 2019 | |||||||||
Deferred tax assets | |||||||||||
Compensation and employee benefits | $ | 1,109 | $ | 810 | |||||||
Accruals and reserves | 438 | 371 | |||||||||
Chargebacks and rebates | 555 | 477 | |||||||||
Advance payments | 324 | 615 | |||||||||
Net operating losses and other credit carryforwards | 2,765 | 838 | |||||||||
Other | 1,371 | 406 | |||||||||
Total deferred tax assets | 6,562 | 3,517 | |||||||||
Valuation allowances | (1,203) | (731) | |||||||||
Total net deferred tax assets | 5,359 | 2,786 | |||||||||
Deferred tax liabilities | |||||||||||
Excess of book basis over tax basis of intangible assets | (5,274) | (2,712) | |||||||||
Excess of book basis over tax basis in investments | (335) | (249) | |||||||||
Other | (982) | (440) | |||||||||
Total deferred tax liabilities | (6,591) | (3,401) | |||||||||
Net deferred tax liabilities | $ | (1,232) | $ | (615) |
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 2,661 | $ | 2,852 | $ | 2,701 | |||||||||||
Increase due to acquisition | 2,674 | — | — | ||||||||||||||
Increase due to current year tax positions | 91 | 113 | 163 | ||||||||||||||
Increase due to prior year tax positions | 59 | 499 | 110 | ||||||||||||||
Decrease due to prior year tax positions | (7) | (21) | (36) | ||||||||||||||
Settlements | (141) | (749) | (79) | ||||||||||||||
Lapse of statutes of limitations | (73) | (33) | (7) | ||||||||||||||
Ending balance | $ | 5,264 | $ | 2,661 | $ | 2,852 |
2020 Form 10-K |
|
88
|
89
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
90
|
91
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
92
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
Immunology | ||||||||||||||||||||
Humira | United States | $ | 16,112 | $ | 14,864 | $ | 13,685 | |||||||||||||
International | 3,720 | 4,305 | 6,251 | |||||||||||||||||
Total | $ | 19,832 | $ | 19,169 | $ | 19,936 | ||||||||||||||
Skyrizi | United States | $ | 1,385 | $ | 311 | $ | — | |||||||||||||
International | 205 | 44 | — | |||||||||||||||||
Total | $ | 1,590 | $ | 355 | $ | — | ||||||||||||||
Rinvoq | United States | $ | 653 | $ | 47 | $ | — | |||||||||||||
International | 78 | — | — | |||||||||||||||||
Total | $ | 731 | $ | 47 | $ | — | ||||||||||||||
Hematologic Oncology | ||||||||||||||||||||
Imbruvica | United States | $ | 4,305 | $ | 3,830 | $ | 2,968 | |||||||||||||
Collaboration revenues | 1,009 | 844 | 622 | |||||||||||||||||
Total | $ | 5,314 | $ | 4,674 | $ | 3,590 | ||||||||||||||
Venclexta | United States | $ | 804 | $ | 521 | $ | 247 | |||||||||||||
International | 533 | 271 | 97 | |||||||||||||||||
Total | $ | 1,337 | $ | 792 | $ | 344 | ||||||||||||||
Aesthetics | ||||||||||||||||||||
Botox Cosmetic (a)
|
United States | $ | 687 | $ | — | $ | — | |||||||||||||
International | 425 | — | — | |||||||||||||||||
Total | $ | 1,112 | $ | — | $ | — | ||||||||||||||
Juvederm Collection (a)
|
United States | $ | 318 | $ | — | $ | — | |||||||||||||
International | 400 | — | — | |||||||||||||||||
Total | $ | 718 | $ | — | $ | — | ||||||||||||||
Other Aesthetics (a)
|
United States | $ | 666 | $ | — | $ | — | |||||||||||||
International | 94 | — | — | |||||||||||||||||
Total | $ | 760 | $ | — | $ | — | ||||||||||||||
Neuroscience | ||||||||||||||||||||
Botox Therapeutic (a)
|
United States | $ | 1,155 | $ | — | $ | — | |||||||||||||
International | 232 | — | — | |||||||||||||||||
Total | $ | 1,387 | $ | — | $ | — | ||||||||||||||
Vraylar (a)
|
United States | $ | 951 | $ | — | $ | — | |||||||||||||
Duodopa | United States | $ | 103 | $ | 97 | $ | 80 | |||||||||||||
International | 391 | 364 | 350 | |||||||||||||||||
Total | $ | 494 | $ | 461 | $ | 430 | ||||||||||||||
Ubrelvy (a)
|
United States | $ | 125 | $ | — | $ | — | |||||||||||||
Other Neuroscience (a)
|
United States | $ | 528 | $ | — | $ | — | |||||||||||||
International | 11 | — | — | |||||||||||||||||
Total | $ | 539 | $ | — | $ | — |
93
|
| 2020 Form 10-K
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
Eye Care | ||||||||||||||||||||
Lumigan/Ganfort (a)
|
United States | $ | 165 | $ | — | $ | — | |||||||||||||
International | 213 | — | — | |||||||||||||||||
Total | $ | 378 | $ | — | $ | — | ||||||||||||||
Alphagan/Combigan (a)
|
United States | $ | 223 | $ | — | $ | — | |||||||||||||
International | 103 | — | — | |||||||||||||||||
Total | $ | 326 | $ | — | $ | — | ||||||||||||||
Restasis (a)
|
United States | $ | 755 | $ | — | $ | — | |||||||||||||
International | 32 | — | — | |||||||||||||||||
Total | $ | 787 | $ | — | $ | — | ||||||||||||||
Other Eye Care (a)
|
United States | $ | 305 | $ | — | $ | — | |||||||||||||
International | 388 | — | — | |||||||||||||||||
Total | $ | 693 | $ | — | $ | — | ||||||||||||||
Women's Health | ||||||||||||||||||||
Lo Loestrin (a)
|
United States | $ | 346 | $ | — | $ | — | |||||||||||||
International | 10 | — | — | |||||||||||||||||
Total | $ | 356 | $ | — | $ | — | ||||||||||||||
Orilissa/Oriahnn | United States | $ | 121 | $ | 91 | $ | 11 | |||||||||||||
International | 4 | 2 | — | |||||||||||||||||
Total | $ | 125 | $ | 93 | $ | 11 | ||||||||||||||
Other Women's Health (a)
|
United States | $ | 181 | $ | — | $ | — | |||||||||||||
International | 11 | — | — | |||||||||||||||||
Total | $ | 192 | $ | — | $ | — | ||||||||||||||
Other Key Products | ||||||||||||||||||||
Mavyret | United States | $ | 785 | $ | 1,473 | $ | 1,614 | |||||||||||||
International | 1,045 | 1,420 | 1,824 | |||||||||||||||||
Total | $ | 1,830 | $ | 2,893 | $ | 3,438 | ||||||||||||||
Creon | United States | $ | 1,114 | $ | 1,041 | $ | 928 | |||||||||||||
Lupron | United States | $ | 600 | $ | 720 | $ | 726 | |||||||||||||
International | 152 | 167 | 166 | |||||||||||||||||
Total | $ | 752 | $ | 887 | $ | 892 | ||||||||||||||
Linzess/Constella (a)
|
United States | $ | 649 | $ | — | $ | — | |||||||||||||
International | 18 | — | — | |||||||||||||||||
Total | $ | 667 | $ | — | $ | — | ||||||||||||||
Synthroid | United States | $ | 771 | $ | 786 | $ | 776 | |||||||||||||
All other | $ | 2,923 | $ | 2,068 | $ | 2,408 | ||||||||||||||
Total net revenues | $ | 45,804 | $ | 33,266 | $ | 32,753 |
2020 Form 10-K |
|
94
|
years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
United States | $ | 34,879 | $ | 23,907 | $ | 21,524 | |||||||||||
Japan | 1,198 | 1,211 | 1,591 | ||||||||||||||
Canada | 1,159 | 813 | 730 | ||||||||||||||
Germany | 1,049 | 909 | 1,292 | ||||||||||||||
France | 797 | 695 | 783 | ||||||||||||||
Australia | 527 | 395 | 350 | ||||||||||||||
United Kingdom | 509 | 372 | 855 | ||||||||||||||
China | 471 | 195 | 152 | ||||||||||||||
Spain | 453 | 472 | 611 | ||||||||||||||
Brazil | 406 | 359 | 350 | ||||||||||||||
Italy | 379 | 372 | 652 | ||||||||||||||
All other countries | 3,977 | 3,566 | 3,863 | ||||||||||||||
Total net revenues | $ | 45,804 | $ | 33,266 | $ | 32,753 |
as of December 31 (in millions) | 2020 | 2019 | |||||||||
United States and Puerto Rico | $ | 3,354 | $ | 2,026 | |||||||
Europe | 1,534 | 646 | |||||||||
All other | 360 | 290 | |||||||||
Total long-lived assets | $ | 5,248 | $ | 2,962 |
quarter ended December 31 (in millions except per share data) | 2020 | ||||||||||
Net revenues | $ | 13,858 | |||||||||
Gross margin | 9,174 | ||||||||||
Net earnings attributable to AbbVie Inc.(a)
|
36 | ||||||||||
Basic earnings per share attributable to AbbVie Inc. | $ | 0.01 | |||||||||
Diluted earnings per share attributable to AbbVie Inc. | $ | 0.01 | |||||||||
Cash dividends declared per common share | $ | 1.30 |
95
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
96
|
Sales rebate accruals for Medicaid, Medicare and managed care programs | ||||||||
Description of the Matter |
As discussed in Note 2 to the consolidated financial statements under the caption “Revenue Recognition,” the Company established provisions for sales rebates in the same period the related product is sold. At December 31, 2020, the Company had $7,188 million in sales rebate accruals, a large portion of which were for rebates provided to pharmacy benefit managers, state government Medicaid programs, insurance companies that administer Medicare drug plans and private entities for Medicaid, Medicare and managed care programs. In order to establish these sales rebate accruals, the Company estimated its rebates based upon the identification of the products subject to a rebate, the applicable price and rebate terms and the estimated lag time between the sale and payment of the rebate.
Auditing the Medicaid, Medicare and managed care sales rebate accruals was complex and required significant auditor judgment because the accruals consider multiple subjective and complex estimates and assumptions. These estimates and assumptions included the estimated inventory in the distribution channel, which impacts the lag time between the sale to the customer and payment of the rebate, and the final payer related to product sales, which impacts the applicable price and rebate terms. In deriving these estimates and assumptions, the Company used both internal and external sources of information to estimate product in the distribution channels, payer mix, prescription volumes and historical experience. Management supplemented its historical data analysis with qualitative adjustments based upon changes in rebate trends, rebate programs and contract terms, legislative changes, or other significant events which indicate a change in the reserve is appropriate.
|
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s sales rebate accruals for Medicaid, Medicare and managed care programs. This included testing controls over management’s review of the significant assumptions and other inputs used in the estimation of Medicaid, Medicare and managed care rebates, among others, including the significant assumptions discussed above. The testing was inclusive of management’s controls to evaluate the accuracy of its reserve judgments to actual rebates paid, rebate validation and processing, and controls to ensure that the data used to evaluate and support the significant assumptions was complete, accurate and, where applicable, verified to external data sources.
To test the sales rebate accruals for Medicaid, Medicare, and managed care programs, our audit procedures included, among others, understanding and evaluating the significant assumptions and underlying data used in management’s calculations. Our testing of significant assumptions included corroboration to external data sources. We evaluated the reasonableness of assumptions considering industry and economic trends, product profiles, and other regulatory factors. We assessed the historical accuracy of management’s estimates by comparing actual activity to previous estimates and performed analytical procedures, based on internal and external data sources, to evaluate the completeness of the reserves. For Medicaid, we involved a specialist with an understanding of statutory reimbursement requirements to assess the consistency of the Company’s calculation methodologies with applicable government regulations and policy.
|
|||||||
Valuation of contingent consideration | ||||||||
Description of the Matter |
As discussed in Note 2 to the consolidated financial statements under the caption “Business Combinations” and in Note 11 under the caption “Financial Instruments and Fair Value Measures,” the Company recognized contingent consideration liabilities at the estimated fair value on the acquisition date in connection with applying the acquisition method of accounting for business combinations. Subsequent changes to the fair value of the contingent consideration liabilities were recorded within the consolidated statement of earnings in the period of change. At December 31, 2020, the Company had $12,997 million in contingent consideration liabilities, which represented a ‘Level 3’ fair value measurement in the fair value hierarchy due to the significant unobservable inputs used in determining the fair value and the use of management judgment about the assumptions market participants would use in pricing the liabilities.
Auditing the valuation of contingent consideration liabilities was complex and required significant auditor judgment due to the use of a Monte Carlo simulation model and the high degree of subjectivity in evaluating certain assumptions required to estimate the fair value of contingent royalty payments. In particular, the fair value measurement was sensitive to the significant assumptions underlying the estimated amount of future sales of the acquired products. Management utilized its expertise within the industry, including commercial dynamics, trends and utilization, as well as knowledge of clinical development and regulatory approval processes to determine certain of these assumptions.
|
97
|
| 2020 Form 10-K
|
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s contingent consideration liabilities process including, among others, management’s process to establish the significant assumptions and measure the liability. This included testing controls over management’s review of the significant assumptions and other inputs used in the determination of fair value. The testing was inclusive of key management review controls to monitor and evaluate clinical development of the acquired products and estimated future sales, and controls to ensure that the data used to evaluate and support the significant assumptions was complete, accurate and, where applicable, verified to external data sources.
To test the estimated fair value of contingent consideration liabilities, our audit procedures included, among others, inspecting the terms of the executed agreement, assessing the Monte Carlo simulation model used and testing the key contractual inputs and significant assumptions discussed above. We evaluated the assumptions and judgments considering observable industry and economic trends and standards, external data sources and regulatory factors. Estimated amounts of future sales were evaluated for reasonableness in relation to internal and external analyses, clinical development progress and timelines, probability of success benchmarks, and regulatory notices. Our procedures included evaluating the data sources used by management in determining its assumptions and, where necessary, included an evaluation of available information that either corroborated or contradicted management’s conclusions. We involved a valuation specialist to assess the Company’s Monte Carlo simulation model and to perform corroborative fair value calculations.
|
|||||||
Accounting for Allergan plc acquisition – Valuation of intangible assets | ||||||||
Description of the Matter |
As discussed in Note 5 to the consolidated financial statements under the caption “Licensing, Acquisitions and Other Arrangements”, the Company completed the acquisition of Allergan plc (“Allergan”) on May 8, 2020 for approximately $64,084 million. The Company measured the assets acquired and liabilities assumed at fair value, which resulted in the recognition of $69,080 million of intangible assets, comprised of $67,330 million of developed product rights and $1,750 million of in-process research and development (“IPR&D”).
Auditing the valuation of intangible assets was complex and required significant auditor judgment due to the high degree of subjectivity in evaluating certain assumptions required to estimate the fair value of the identified intangible assets. In particular, the fair value measurement was sensitive to management’s forecasts of net revenues, including growth rates used to estimate future net cash flows for acquired aesthetics and recently launched products.
|
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting for acquisitions including, among others, management’s process to establish the significant assumptions used in determining the fair values of intangible assets. This included testing controls over management’s review of the significant assumptions and other inputs used in the determination of estimated future net revenues, the determination of future net cash flows, estimated growth rates, and review of the valuation model.
To test the estimated fair value of intangible assets, our audit procedures included, among others, inspecting the terms of the executed agreement, evaluating the valuation methods used, and testing the significant assumptions discussed above. We evaluated the assumptions and judgments considering observable industry and economic trends and standards, external data sources, and historical product trends, including those of comparable products, to the extent applicable. Estimated future net revenues were evaluated for reasonableness against internal and external analyses, including analyst expectations, industry trends, and market trends. Our procedures included evaluating the data sources used by management in determining its assumptions and, where necessary, included an evaluation of available information that either corroborated or contradicted management’s conclusions. We involved a valuation specialist to assess the valuation model and to perform corroborative fair value calculations.
|
2020 Form 10-K |
|
98
|
Accounting for Allergan plc acquisition – Unrecognized tax benefits | ||||||||
Description of the Matter |
As discussed in Note 14 under the caption “Income Taxes,” as part of the acquisition of Allergan plc, the Company recorded $2,674 million of unrecognized tax benefits resulting from uncertain tax positions. The Company applied judgment in evaluating the completeness of unrecognized tax benefits assumed as of the acquisition date. Some of the more significant judgments inherent in the Company’s evaluation of assumed uncertain tax positions included whether a tax position’s technical merits were more-likely-than-not to be sustained, including consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of proceedings (or negotiations) with taxing and legal authorities.
Auditing the Company’s analysis and accounting for uncertain tax positions was complex due to the interpretation of tax laws and legal rulings in multiple tax paying jurisdictions and required significant judgment in determining whether an assumed tax position’s technical merits were more-likely-than-not to be sustained. In particular, each assumed unrecognized tax benefit involved unique facts and circumstances and multiple potential outcomes that were evaluated, with many uncertainties around initial recognition, including regulatory changes, litigation and examination activity. Management utilized outside tax and legal counsel, where appropriate, in its evaluation.
|
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting for acquisitions including, among others, management’s process to evaluate the completeness and estimation of unrecognized tax benefits. This included testing controls over management’s determination of whether an assumed tax position’s technical merits were more-likely-than-not to be sustained and, if so, recognizing the estimated amount of qualified tax benefit. We also obtained an understanding, evaluated the design and tested the operating effectiveness of controls to ensure that the data used to evaluate and support the significant fair value assumptions and unrecognized tax benefits was complete, accurate and, where applicable, verified to external data sources.
To test the completeness and recognition of unrecognized tax benefits, our audit procedures included, among others, testing management’s process for estimating the unrecognized tax benefits. Testing management’s process included assessing management’s interpretation of the unique facts, circumstances and related tax laws and legal rulings in each tax paying jurisdiction, examining whether the technical merits of each tax position were more-likely-than-not to be sustained, and evaluating the recognition of the amount of qualified tax benefit. Professionals with specialized skill and knowledge were used to assist in the evaluation of the completeness and recognition of the Company’s unrecognized tax benefits, including consideration of applicable tax statutes and related interpretations and precedents.
|
99
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
100
|
101
|
| 2020 Form 10-K
|
2020 Form 10-K |
|
102
|
103
|
| 2020 Form 10-K
|
Plan Category |
(a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) |
(b)
Weighted- average exercise price of outstanding options, warrants and rights (2) |
(c)
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (3) |
||||||||||||||
Equity compensation plans approved by security holders | 31,608,617 | $ | 73.90 | 36,857,294 | |||||||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||
Total | 31,608,617 | $ | 73.90 | 36,857,294 |
2020 Form 10-K |
|
104
|
Exhibit
Number
|
Exhibit Description | |||||||
105
|
| 2020 Form 10-K
|
Exhibit
Number
|
Exhibit Description | |||||||
2020 Form 10-K |
|
106
|
Exhibit
Number
|
Exhibit Description | |||||||
107
|
| 2020 Form 10-K
|
Exhibit
Number
|
Exhibit Description | |||||||
101 |
The following financial statements and notes from the AbbVie Inc. Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 19, 2021, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Earnings; (ii) Consolidated Statements of Comprehensive Income; (iii) Consolidated Balance Sheets; (iv) Consolidated Statements of Equity; (v) Consolidated Statements of Cash Flows; and (vi) the Notes to Consolidated Financial Statements.
|
|||||||
104 | Cover Page Interactive Data File (the cover page from the AbbVie Inc. Annual Report on Form 10-K formatted as Inline XBRL and contained in Exhibit 101). | |||||||
The AbbVie Inc. 2021 Definitive Proxy Statement will be filed with the Securities and Exchange Commission under separate cover on or about March 22, 2021.
|
2020 Form 10-K |
|
108
|
109
|
| 2020 Form 10-K
|
AbbVie Inc. | ||||||||||||||
By: | /s/ RICHARD A. GONZALEZ | |||||||||||||
Name: | Richard A. Gonzalez | |||||||||||||
Title: |
Chairman of the Board and
Chief Executive Officer |
|||||||||||||
Date: | February 19, 2021 |
/s/ RICHARD A. GONZALEZ | /s/ ROBERT A. MICHAEL | |||||||
Richard A. Gonzalez
Chairman of the Board and Chief Executive Officer (Principal Executive Officer) |
Robert A. Michael
Executive Vice President, Chief Financial Officer (Principal Financial Officer) |
|||||||
/s/ BRIAN L. DURKIN | ||||||||
Brian L. Durkin
Vice President, Controller (Principal Accounting Officer) |
||||||||
/s/ ROBERT J. ALPERN, M.D. | /s/ ROXANNE S. AUSTIN | |||||||
Robert J. Alpern, M.D.
Director of AbbVie Inc. |
Roxanne S. Austin
Director of AbbVie Inc. |
|||||||
/s/ WILLIAM H.L. BURNSIDE | /s/ THOMAS C. FREYMAN | |||||||
William H.L. Burnside
Director of AbbVie Inc. |
Thomas C. Freyman
Director of AbbVie Inc. |
|||||||
/s/ BRETT J. HART | /s/ EDWARD M. LIDDY | |||||||
Brett J. Hart
Director of AbbVie Inc. |
Edward M. Liddy
Director of AbbVie Inc. |
|||||||
/s/ MELODY B. MEYER | /s/ EDWARD J. RAPP | |||||||
Melody B. Meyer
Director of AbbVie Inc. |
Edward J. Rapp
Director of AbbVie Inc. |
|||||||
/s/ REBECCA B. ROBERTS | /s/ GLENN F. TILTON | |||||||
Rebecca B. Roberts
Director of AbbVie Inc. |
Glenn F. Tilton
Director of AbbVie Inc. |
|||||||
/s/ FREDERICK H. WADDELL | ||||||||
Frederick H. Waddell
Director of AbbVie Inc. |
2020 Form 10-K |
|
110
|
Domestic Subsidiaries | Incorporation | |||||||
AbbVie Aviation LLC | Illinois | |||||||
AbbVie Biopharmaceuticals LLC | Delaware | |||||||
AbbVie Bioresearch Center Inc. | Delaware | |||||||
AbbVie Biotech Ventures Inc. | Delaware | |||||||
AbbVie Biotherapeutics Inc. | Delaware | |||||||
AbbVie Domestic Holdings Inc. | Delaware | |||||||
AbbVie Endocrine Inc. | Delaware | |||||||
AbbVie Endocrinology Inc. (d/b/a Pharmacy Solutions) | Delaware | |||||||
AbbVie Finance Corporation | Delaware | |||||||
AbbVie Finance LLC | Delaware | |||||||
AbbVie Global Holdings Inc. | Delaware | |||||||
AbbVie Holdco Inc. | Delaware | |||||||
AbbVie Holdings Inc. | Delaware | |||||||
AbbVie Investments Inc. | Delaware | |||||||
AbbVie Pharma Inc. | Delaware | |||||||
AbbVie Pharmaceuticals LLC | Delaware | |||||||
AbbVie Products LLC | Georgia | |||||||
AbbVie Purchasing LLC | Delaware | |||||||
AbbVie Resources Inc. | Delaware |
AbbVie Resources International Inc. | Delaware | |||||||
AbbVie Respiratory LLC | Delaware | |||||||
AbbVie Sales Inc. | Delaware | |||||||
AbbVie Services Inc. | Delaware | |||||||
AbbVie Stemcentrx LLC | Delaware | |||||||
AbbVie Subsidiary LLC | Delaware | |||||||
AbbVie US Holdings LLC | Delaware | |||||||
AbbVie US LLC | Delaware | |||||||
AbbVie Ventures LLC | Delaware | |||||||
Aeropharm Technology, LLC | Delaware | |||||||
AGN International Inc. | Delaware | |||||||
AGN Kythera, LP | Delaware | |||||||
AGN Labs LLC | Delaware | |||||||
AGN LLC | Delaware | |||||||
AGN Sundry, LLC | Delaware | |||||||
Allergan Akarna LLC | Delaware | |||||||
Allergan Finance, LLC | Nevada | |||||||
ALLERGAN FINCO 2 INC. | Delaware | |||||||
ALLERGAN FINCO INC. | Delaware | |||||||
Allergan GI Corp | Delaware | |||||||
Allergan GP Holding LLC | Delaware | |||||||
Allergan Holdco US, Inc. | Delaware | |||||||
Allergan Holdings B1, Inc. | Delaware | |||||||
Allergan Holdings, Inc. | Delaware | |||||||
Allergan, Inc. | Delaware | |||||||
Allergan Laboratories, LLC | Delaware | |||||||
Allergan Lending 2 LLC | Delaware | |||||||
Allergan Lending LLC | Delaware | |||||||
Allergan Pharma Inc. | Delaware | |||||||
Allergan Property Holdings, LLC | Delaware | |||||||
Allergan Puerto Rico Holdings, LLC | Delaware | |||||||
Allergan Sales Puerto Rico, Inc. | California | |||||||
Allergan Sales, LLC (d/b/a Allergan; d/b/a Bioscience Laboratories) | Delaware | |||||||
Allergan Therapeutics LLC | Delaware | |||||||
Allergan USA, Inc. (d/b/a Pacificom / Pacific Communications) | Delaware | |||||||
Allergan W.C. Holding Inc. | Delaware | |||||||
Anterios, Inc. | Delaware | |||||||
Aptalis Pharma US, Inc. | Delaware | |||||||
AqueSys, Inc. | Delaware | |||||||
BioDisplay Technologies, Inc. | Illinois | |||||||
Bonti, Inc. | Delaware | |||||||
Cearna Aesthetics, Inc. | Delaware | |||||||
Chase Pharmaceuticals Corporation | Delaware | |||||||
Del Mar Indemnity Company LLC | Hawaii | |||||||
Durata Holdings, Inc. | Delaware | |||||||
Durata Therapeutics, Inc. | Delaware | |||||||
Durata Therapeutics U.S. Limited | Delaware | |||||||
Eden Biodesign, LLC | Delaware | |||||||
Envy Medical, Inc. | Delaware | |||||||
Exemplar Pharma, LLC | Delaware | |||||||
Foresight Vision5, Inc. | Delaware | |||||||
Fremont Holding L.L.C. | Delaware | |||||||
Furiex Pharmaceuticals LLC | Delaware | |||||||
IEP Pharmaceutical Devices, LLC | Delaware | |||||||
Keller Medical, Inc. | Delaware | |||||||
Knoll Pharmaceutical Company | New Jersey | |||||||
KOS Pharmaceuticals, Inc. | Delaware | |||||||
Life Properties Inc. | Delaware | |||||||
LifeCell Corporation | Delaware | |||||||
MAP Pharmaceuticals, LLC | Delaware | |||||||
Mavupharma, Inc. | Delaware | |||||||
MPEX Pharmaceuticals, Inc. | Delaware | |||||||
Naurex Inc. | Delaware | |||||||
Oculeve, Inc. | Delaware |
Organics L.L.C. | Delaware | |||||||
Pacific Pharma, Inc. | Delaware | |||||||
Pharmacyclics LLC | Delaware | |||||||
Pharmax Holding Limited | Delaware | |||||||
Repros Therapeutics Inc. | Delaware | |||||||
Rowell Laboratories, Inc. | Minnesota | |||||||
RP Merger Sub, Inc. | Delaware | |||||||
Sapphire Merger Sub, Inc. | Delaware | |||||||
Silicone Engineering, Inc. | California | |||||||
Suffolk Merger Sub, Inc. | Delaware | |||||||
Tobira Therapeutics, Inc. | Delaware | |||||||
Topokine Therapeutics, Inc. | Delaware | |||||||
Transderm, Inc. | Delaware | |||||||
Unimed Pharmaceuticals, LLC | Delaware | |||||||
Venice Subsidiary LLC | Delaware | |||||||
Vicuron Pharmaceuticals LLC | Delaware | |||||||
Vitae Pharmaceuticals, LLC | Delaware | |||||||
Warner Chilcott Leasing Equipment Inc. | Delaware | |||||||
Warner Chilcott Sales (US), LLC | Delaware | |||||||
Zeltiq A LLC | Delaware | |||||||
Zeltiq Aesthetics, Inc. | Delaware | |||||||
Zeltiq International, LLC | Delaware |
Foreign Subsidiaries | Incorporation | |||||||
AbbVie S.A. | Argentina | |||||||
Allergan Productos Farmaceuticos S.A. | Argentina | |||||||
Allergan Australia Pty Limited | Australia | |||||||
Elastagen Pty Ltd | Australia | |||||||
Kythera Biopharmaceuticals Australia Pty Ltd | Australia | |||||||
AbbVie Pty Ltd | Australia | |||||||
AbbVie GmbH | Austria | |||||||
AbbVie Bahamas Ltd. | Bahamas | |||||||
AbbVie SA | Belgium | |||||||
Allergan N.V. | Belgium | |||||||
Odyssa Pharma SPRL | Belgium | |||||||
AbbVie Ltd | Bermuda | |||||||
AbbVie Biotechnology Ltd | Bermuda | |||||||
AbbVie Finance Limited | Bermuda | |||||||
AbbVie Global Enterprises Ltd. | Bermuda | |||||||
AbbVie Holdings Unlimited | Bermuda | |||||||
Allergan Development Ventures I, LP | Bermuda | |||||||
Allergan Holdings B Ltd. | Bermuda | |||||||
Allergan Holdings B2, Ltd. | Bermuda | |||||||
Kythera Holdings Ltd | Bermuda | |||||||
Warner Chilcott Holdings Company II, Limited | Bermuda | |||||||
Warner Chilcott Holdings Company III, Limited | Bermuda | |||||||
Warner Chilcott Limited | Bermuda | |||||||
AbbVie d.o.o. | Bosnia | |||||||
AbbVie Farmacêutica Ltda. | Brazil | |||||||
AbbVie Participações Ltda. | Brazil | |||||||
Allergan Productos Farmaceuticos Ltda. | Brazil | |||||||
AbbVie EOOD | Bulgaria | |||||||
Allergan Bulgaria EOOD | Bulgaria | |||||||
AbbVie Corporation | Canada | |||||||
AbbVie Holdings Corporation | Canada | |||||||
Allergan Inc. | Canada | |||||||
Aptalis Pharma Canada ULC | Canada (Alberta) | |||||||
Allergan Holdings C, Ltd. | Cayman Islands | |||||||
Allergan Overseas Holding | Cayman Islands | |||||||
Pharmacyclics Cayman Ltd. | Cayman Islands | |||||||
Stemcentrx Cayman Ltd. | Cayman Islands | |||||||
AbbVie Productos Farmacéuticos Limitada | Chile | |||||||
Allergan Laboratorios Limitada | Chile | |||||||
AbbVie Pharmaceutical Trading (Shanghai) Co., Ltd. | China | |||||||
Allergan (Chengdu) Medical Aesthetics Clinic Co., Ltd. | China | |||||||
Allergan Information Consulting (Shanghai) Co., Ltd. | China | |||||||
Allergan Medical Device (Shanghai) Co., Ltd. | China | |||||||
Pharmacyclics (Shanghai) Management Consulting Service Limited | China | |||||||
AbbVie S.A.S. | Colombia | |||||||
Allergan de Colombia S.A. | Colombia | |||||||
Allergan Costa Rica S.R.L. | Costa Rica | |||||||
AbbVie d.o.o. | Croatia | |||||||
AbbVie Limited | Cyprus | |||||||
AbbVie s.r.o. | Czech Republic | |||||||
Allergan CZ, s.r.o. | Czech Republic | |||||||
AbbVie A/S | Denmark | |||||||
Allergan ApS | Denmark | |||||||
AbbVie, S.R.L. | Dominican Republic | |||||||
AbbVie L.L.C. | Egypt | |||||||
AbbVie OÜ | Estonia | |||||||
AbbVie Oy | Finland | |||||||
Allergan Finland Oy | Finland | |||||||
AbbVie SAS | France | |||||||
Allergan France SAS | France | |||||||
Allergan Holdings France SAS | France | |||||||
Allergan Industrie SAS | France | |||||||
Eurand France S.A.S. | France | |||||||
Forest Holdings France S.A.S. | France | |||||||
AbbVie Biotechnology GmbH | Germany | |||||||
AbbVie Deutschland GmbH & Co. KG | Germany | |||||||
AbbVie Komplementär GmbH | Germany | |||||||
AbbVie Pharmaceuticals GmbH | Germany | |||||||
AbbVie Real Estate Management GmbH | Germany | |||||||
Allergan GmbH | Germany | |||||||
AbbVie (Gibraltar) Holdings Limited | Gibraltar | |||||||
AbbVie (Gibraltar) Limited | Gibraltar | |||||||
AbbVie Pharmaceuticals Societe Anonyme | Greece | |||||||
Allergan Hellas Pharmaceuticals S.A. | Greece | |||||||
AbbVie, S.A. | Guatemala | |||||||
AbbVie Limited | Hong Kong | |||||||
Allergan Hong Kong Limited | Hong Kong | |||||||
AbbVie Kft. | Hungary | |||||||
Allergan Hungary Kft. | Hungary | |||||||
Allergan Healthcare India Private Limited | India | |||||||
Allergan India Private Limited* | India | |||||||
AbbVie International Holdings Unlimited Company | Ireland | |||||||
AbbVie Ireland Holdings Unlimited Company | Ireland | |||||||
AbbVie Ireland Unlimited Company | Ireland |
AbbVie Limited | Ireland | |||||||
AbbVie Manufacturing Management Unlimited Company | Ireland | |||||||
Allergan Botox Unlimited Company (In voluntary liquidation) | Ireland | |||||||
Allergan Equities Unlimited Company | Ireland | |||||||
Allergan Furiex Ireland Limited (In voluntary liquidation) | Ireland | |||||||
Allergan Holdings Unlimited Company | Ireland | |||||||
Allergan Ireland Finance Limited (In voluntary liquidation) | Ireland | |||||||
Allergan Ireland Holdings Unlimited Company | Ireland | |||||||
Allergan Ireland Limited | Ireland | |||||||
Allergan Limited | Ireland | |||||||
Allergan Pharma Limited | Ireland | |||||||
Allergan Pharmaceuticals Holdings (Ireland) Unlimited Company (In voluntary liquidation) | Ireland | |||||||
Allergan Pharmaceuticals International Limited | Ireland | |||||||
Allergan Pharmaceuticals Ireland | Ireland | |||||||
Allergan Services International, Unlimited Company | Ireland | |||||||
Allergan WC Ireland Holdings Limited | Ireland | |||||||
Forest Laboratories Ireland Limited | Ireland | |||||||
Fournier Laboratories Ireland Limited | Ireland | |||||||
Pharmacyclics (Europe) Limited | Ireland | |||||||
Tosara Exports Unlimited Company (In voluntary liquidation) | Ireland | |||||||
Warner Chilcott Intermediate (Ireland) ULC | Ireland | |||||||
Zeltiq Ireland International Holdings Unlimited Company | Ireland | |||||||
Zeltiq Ireland Unlimited Company | Ireland | |||||||
AbbVie Biopharmaceuticals Ltd. | Israel | |||||||
Allergan Israel Ltd. | Israel | |||||||
Marbelle Threads Ltd. | Israel | |||||||
AbbVie S.r.l. | Italy | |||||||
Allergan S.p.A. | Italy | |||||||
Aptalis Pharma S.r.l. | Italy | |||||||
AbbVie GK | Japan | |||||||
Allergan International YK | Japan | |||||||
Allergan Japan KK | Japan | |||||||
Allergan K.K. | Japan | |||||||
Allergan NK | Japan | |||||||
AbbVie Ltd | Korea, South | |||||||
Allergan Korea Ltd. | Korea, South | |||||||
AbbVie SIA | Latvia | |||||||
AbbVie UAB | Lithuania | |||||||
Allergan Baltics, UAB | Lithuania | |||||||
AbbVie Biotherapeutics S.àr.l. | Luxembourg | |||||||
AbbVie (Gibraltar) Holdings Limited Luxembourg S.C.S. | Luxembourg | |||||||
AbbVie International S.à r.l. | Luxembourg | |||||||
AbbVie Investments S.à r.l. | Luxembourg | |||||||
AbbVie Overseas S.àr.l. | Luxembourg | |||||||
AbbVie Holdings S.à r.l. | Luxembourg | |||||||
AbbVie Global S.à r.l. | Luxembourg | |||||||
Allergan AHI S.à r.l. | Luxembourg | |||||||
Allergan Capital 2 S.à r.l. | Luxembourg | |||||||
Allergan Capital S.à r.l. | Luxembourg | |||||||
Allergan Europe S.à r.l. | Luxembourg | |||||||
Allergan Finance S.à r.l. | Luxembourg | |||||||
Allergan Funding SCS | Luxembourg | |||||||
Allergan Global S.à r.l. | Luxembourg | |||||||
Allergan Holdings S.à r.l. | Luxembourg | |||||||
Allergan International Holding S.à r.l. | Luxembourg | |||||||
Allergan Luxembourg International S.à r.l. | Luxembourg | |||||||
Allergan WC 1 S.à r.l. | Luxembourg | |||||||
Allergan WC 2 S.à r.l. | Luxembourg | |||||||
AbbVie Sdn. Bhd. | Malaysia | |||||||
Allergan Malaysia Sdn Bhd | Malaysia | |||||||
Allergan Malta Holding Limited | Malta | |||||||
Allergan Malta II Limited | Malta |
Allergan Malta Limited | Malta | |||||||
AbbVie Farmacéuticos, S.A. de C.V. | Mexico | |||||||
Allergan Servicios Profesionales, S. de R.L. de C.V. | Mexico | |||||||
Allergan, S.A. de C.V. | Mexico | |||||||
AbbVie B.V. | Netherlands | |||||||
AbbVie Central Finance B.V. | Netherlands | |||||||
AbbVie Enterprises B.V. | Netherlands | |||||||
AbbVie Finance B.V. | Netherlands | |||||||
AbbVie Ireland NL B.V. | Netherlands | |||||||
AbbVie Japan Holdings B.V. | Netherlands | |||||||
AbbVie Logistics B.V | Netherlands | |||||||
AbbVie Nederland Holdings B.V. | Netherlands | |||||||
AbbVie Pharmaceuticals B.V. | Netherlands | |||||||
AbbVie Research B.V. | Netherlands | |||||||
AbbVie Venezuela B.V. | Netherlands | |||||||
AbbVie Venezuela Holdings B.V. | Netherlands | |||||||
Allergan B.V. | Netherlands | |||||||
Aptalis Holding B.V. | Netherlands | |||||||
Aptalis Netherlands B.V. | Netherlands | |||||||
Forest Finance B.V. | Netherlands | |||||||
Warner Chilcott Nederland B.V. | Netherlands | |||||||
AbbVie Limited | New Zealand | |||||||
Allergan New Zealand Limited | New Zealand | |||||||
AbbVie AS | Norway | |||||||
Allergan AS | Norway | |||||||
AbbVie, S. de R.L. | Panama | |||||||
Allergan Healthcare Philippines, Inc. | Philippines | |||||||
AbbVie Polska Sp. z o.o. | Poland | |||||||
AbbVie Sp. z o.o. | Poland | |||||||
Allergan Sp. z .o.o. | Poland | |||||||
AbbVie, L.da | Portugal | |||||||
AbbVie Promoção, L.da | Portugal | |||||||
AbbVie Corp | Puerto Rico | |||||||
Knoll LLC | Puerto Rico | |||||||
AbbVie S.R.L. | Romania | |||||||
AbbVie Trading S.R.L. | Romania | |||||||
Allergan S.R.L. | Romania | |||||||
AbbVie Limited Liability Company | Russia | |||||||
Allergan C.I.S. S.a.r.l. | Russia | |||||||
Allergan Saudi Arabia LLC* | Saudi Arabia | |||||||
Allergan d.o.o. Beograd | Serbia | |||||||
AbbVie Operations Singapore Pte. Ltd. | Singapore | |||||||
AbbVie Pte. Ltd. | Singapore | |||||||
Allergan Singapore Pte. Ltd. | Singapore | |||||||
AbbVie Holdings s.r.o. | Slovakia | |||||||
AbbVie s.r.o. | Slovakia | |||||||
Allergan SK s.r.o. | Slovakia | |||||||
AbbVie Biofarmacevtska druzba d.o.o. | Slovenia | |||||||
AbbVie (Pty) Ltd. | South Africa | |||||||
Allergan Pharmaceuticals (Proprietary) Limited | South Africa | |||||||
AbbVie Spain, S.L. | Spain | |||||||
Allergan S.A. | Spain | |||||||
AbbVie AB | Sweden | |||||||
Allergan Norden AB | Sweden | |||||||
AbbVie AG | Switzerland | |||||||
AbbVie Biopharmaceuticals GmbH | Switzerland | |||||||
Allergan AG | Switzerland | |||||||
Pharmacyclics Switzerland GmbH | Switzerland | |||||||
VarioRaw Percutive S.à r.l. | Switzerland | |||||||
Warner Chilcott Pharmaceuticals Sárl | Switzerland | |||||||
Allergan Pharmaceuticals Taiwan Co. Ltd. | Taiwan | |||||||
AbbVie Ltd. | Thailand | |||||||
Allergan (Thailand) Limited | Thailand | |||||||
AbbVie Sarl | Tunisia | |||||||
AbbVie Tıbbi İlaçlar Sanayi ve Ticaret Limited Şirketi | Turkey | |||||||
Allergan Illaclari Ticaret Anonim Sirketi | Turkey | |||||||
Allergan Ukraine LLC | Ukraine | |||||||
Allergan Middle East Limited | United Arab Emirates | |||||||
AbbVie Australasia Holdings Limited | United Kingdom | |||||||
AbbVie Biotherapeutics Limited | United Kingdom | |||||||
AbbVie Investments Limited | United Kingdom | |||||||
AbbVie Ltd | United Kingdom | |||||||
AbbVie Trustee Company Limited | United Kingdom | |||||||
AbbVie UK Holdco Limited | United Kingdom | |||||||
Akarna Therapeutics, Limited | United Kingdom | |||||||
Allergan Biologics Limited | United Kingdom | |||||||
Allergan Holdco UK Limited | United Kingdom | |||||||
Allergan Holdings Limited | United Kingdom | |||||||
Allergan Limited | United Kingdom | |||||||
Aptalis Pharma UK Limited | United Kingdom | |||||||
Lifecell EMEA Limited | United Kingdom | |||||||
Northwood Medical Innovation, Ltd. | United Kingdom | |||||||
Renable Pharma Ltd. | United Kingdom | |||||||
Zeltiq Limited | United Kingdom | |||||||
AbbVie S.A. | Uruguay | |||||||
AbbVie Pharmaceuticals SCA. | Venezuela | |||||||
Allergan de Venezuela, C.A. | Venezuela |
Consent of Independent Registered Public Accounting Firm
|
Date: February 19, 2021 |
/s/ Richard A. Gonzalez
|
||||
Richard A. Gonzalez, Chairman of the Board
and Chief Executive Officer
|
Date: February 19, 2021 |
/s/ Robert A. Michael
|
||||
Robert A. Michael, Executive Vice President,
Chief Financial Officer
|
/s/ Richard A. Gonzalez
|
||
Richard A. Gonzalez
Chairman of the Board and
Chief Executive Officer
|
/s/ Robert A. Michael
|
||
Robert A. Michael
Executive Vice President, Chief Financial Officer
|