Equity

Stock-Based Compensation

Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and is summarized as follows:



	Three months ended March 31,
(in millions)	2018		2017
Cost of products sold	$	4	$	3
Research and development	72		64
Selling, general and administrative	115		74
Pre-tax compensation expense	191		141
Tax benefit	29		47
After-tax compensation expense	$	162	$	94

Stock Options

During the three months ended March 31, 2018, primarily in connection with the company's annual grant, AbbVie granted 0.6 million stock options with a weighted-average grant-date fair value of $21.63. As of March 31, 2018, $15 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years.

RSAs, RSUs and Performance Shares

During the three months ended March 31, 2018, primarily in connection with the company's annual grant, AbbVie granted 3.7 million RSUs and performance shares with a weighted-average grant-date fair value of $115.20. As of March 31, 2018, $467 million of unrecognized compensation cost related to RSAs, RSUs and performance shares is expected to be recognized as expense over approximately the next two years.

Cash Dividends

The following table summarizes quarterly cash dividends declared during 2018 and 2017:



2018				2017
Date Declared	Payment Date	Dividend Per Share		Date Declared	Payment Date	Dividend Per Share
02/15/18	05/15/18	$	0.96	10/27/17	02/15/18	$	0.71
				09/08/17	11/15/17	$	0.64
				06/22/17	08/15/17	$	0.64
				02/16/17	05/15/17	$	0.64

Stock Repurchase Program

On February 15, 2018, AbbVie's board of directors authorized a new $10.0 billion stock repurchase program, which superseded AbbVie's previous stock repurchase program. The new stock repurchase program permits purchases of AbbVie shares from time to time in open-market or private transactions, including accelerated share repurchases, at management's discretion. The program has no time limit and can be discontinued at any time. Shares repurchased under this program are recorded at acquisition cost, including related expenses, and are available for general corporate purposes.

As part of this repurchase program, on May 1, 2018, AbbVie announced a modified "Dutch auction" tender offer to purchase for cash up to $7.5 billion of its common stock at a price not less than $99.00 per share and not more than $114.00 per share. The tender offer expires at midnight Eastern Time, at the end of the day on May 29, 2018, unless extended or terminated by AbbVie.

Prior to the new authorization, AbbVie repurchased approximately 10.9 million shares in the open market for $1.3 billion during the three months ended March 31, 2018. AbbVie's stock repurchase authorization was $10.0 billion as of March 31, 2018.

Accumulated Other Comprehensive Loss

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2018:



(in millions)	Foreign currency translation adjustments			Net investment hedging activities			Pension and post- employment benefits			Marketable security activities			Cash flow hedging activities			Total
Balance as of December 31, 2017	$	(439	)	$	(203	)	$	(1,919	)	$	—		$	(166	)	$	(2,727	)
Other comprehensive income (loss) before reclassifications	189			(104		)	(11		)	(7		)	(45		)	22
Net losses reclassified from accumulated other comprehensive loss	—			—			33			—			42			75
Net current-period other comprehensive income (loss)	189			(104		)	22			(7		)	(3		)	97
Balance as of March 31, 2018	$	(250	)	$	(307	)	$	(1,897	)	$	(7	)	$	(169	)	$	(2,630	)

Other comprehensive income for the three months ended March 31, 2018 included foreign currency translation adjustments totaling a gain of $189 million, which was principally due to the impact of the improvement in the Euro in the three months ended March 31, 2018 on the translation of the company’s assets denominated in the Euro.

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2017:



(in millions)	Foreign currency translation adjustments			Net investment hedging activities			Pension and post- employment benefits			Marketable security activities			Cash flow hedging activities			Total
Balance as of December 31, 2016	$	(1,435	)	$	140		$	(1,513	)	$	46		$	176		$	(2,586	)
Other comprehensive income (loss) before reclassifications	170			(64		)	(8		)	2			(49		)	51
Net losses (gains) reclassified from accumulated other comprehensive loss	—			—			19			(10		)	(16		)	(7		)
Net current-period other comprehensive income (loss)	170			(64		)	11			(8		)	(65		)	44
Balance as of March 31, 2017	$	(1,265	)	$	76		$	(1,502	)	$	38		$	111		$	(2,542	)

Other comprehensive income for the three months ended March 31, 2017 included foreign currency translation adjustments totaling a gain of $170 million, which was principally due to the impact of the improvement in the Euro in the three months ended March 31, 2017 on the translation of the company’s assets denominated in the Euro.

The table below presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss:



	Three months ended March 31,
(in millions) (brackets denote gains)	2018			2017
Pension and post-employment benefits
Amortization of actuarial losses and other^(a)	$	41		$	27
Tax (benefit)	(8		)	(8		)
Total reclassifications, net of tax	$	33		$	19
Cash flow hedging activities
Losses (gains) on designated cash flow hedges^(b)	$	44		$	(17	)
Tax expense (benefit)	(2		)	1
Total reclassifications, net of tax	$	42		$	(16	)

(a) Amounts are included in the computation of net periodic benefit cost (see Note 10).

(b) Amounts are included in cost of products sold (see Note 9).