Post-Employment Benefits

6 Months Ended

Jun. 30, 2013

Note 9

Post-Employment Benefits

Prior to separation, AbbVie employees participated in certain U.S. and international defined benefit pension and other post-employment plans sponsored by Abbott. These plans included participants of Abbott’s other businesses and were accounted for as multi-employer plans in AbbVie’s combined financial statements. As a result, no asset or liability was recorded by AbbVie in the historical balance sheets through December 31, 2012 to recognize the funded status of these plans. In connection with the separation of AbbVie from Abbott on January 1, 2013, these plans were separated and AbbVie assumed obligations previously provided by Abbott and a portion of certain plans owned by AbbVie at December 31, 2012 were transferred to Abbott.

The amounts shown in the table below reflect the amount of AbbVie’s assumption of the net obligations for pension and other post-employment benefits.

		Other
	Defined	post-employment
(in millions)	benefit plans	plans
Accumulated benefit obligation	$2,407	$270
Deferred losses	(1,392)	(46)

Projected benefit obligations	2,873	270
Fair value of assets	2,252	—
Net liability	$621	$270

Net Periodic Benefit Cost

The following is a summary of net periodic benefit cost relating to the company’s pension and other post-employment benefit (OPEB) plans.

	Three months ended June 30,		Six months ended June 30,
Defined benefit plans	2013	2012	2013	2012
Service cost	$47	$4	$94	$8
Interest cost	48	9	96	17
Expected return on plan assets	(66)	(5)	(132)	(10)
Amortization of actuarial losses and prior service costs	25	1	53	1
Net periodic pension benefit cost	$54	$9	$111	$16

	Three months ended June 30,		Six months ended June 30,
Other post-employment plans	2013	2012	2013	2012
Service cost	$6	$-	$12	$-
Interest cost	6	—	12	—
Expected return on plan assets	—	—	—	—
Amortization of actuarial losses and prior service costs	—	—	—	—
Net periodic pension benefit cost	$12	$-	$24	$-

In the first quarter of 2013, AbbVie made a voluntary contribution of $145 million to its main domestic defined benefit pension plan.

- Definition

The entire disclosure for postemployment benefits, which may include supplemental unemployment benefits, obligations recognized for all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Disclosure may also include discussion that an obligation for postemployment benefits is not accrued in accordance with regulation only because the amount cannot be reasonably estimated.

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