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Financial Instruments and Fair Value Measures (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Summary of amounts and location of derivatives on the consolidated balance sheets
The following table summarizes the amounts and location of AbbVie's derivative instruments on the consolidated balance sheets:
 
Fair value -
Derivatives in asset position
 
Fair value -
Derivatives in liability position
as of December 31 (in millions)
Balance sheet caption
2019
2018
 
Balance sheet caption
2019
2018
Foreign currency forward exchange contracts
 
 
 
 
 
 
 
Designated as cash flow hedges
Prepaid expenses and other
$
3

$
113

 
Accounts payable and accrued liabilities
$
14

$
—

Designated as net investment hedges
Prepaid expenses and other
—

—

 
Accounts payable and accrued liabilities
24

—

Not designated as hedges
Prepaid expenses and other
19

19

 
Accounts payable and accrued liabilities
18

26

Interest rate swap contracts
 
 
 
 
 
 
 
Designated as cash flow hedges
Other assets
3

—

 
Other long-term liabilities
—

—

Designated as fair value hedges
Prepaid expenses and other
—

—

 
Accounts payable and accrued liabilities
2

—

Designated as fair value hedges
Other assets
28

—

 
Other long-term liabilities
74

466

Total derivatives
 
$
53

$
132

 
 
$
132

$
492
Schedule of pre-tax amounts of derivatives recognized in other comprehensive income (loss)
The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss):
years ended in December 31 (in millions)
 
2019
 
2018
 
2017
Foreign currency forward exchange contracts
 
 
 
 
 
 
Designated as cash flow hedges
 
$
(5
)
 
$
175

 
$
(250
)
Designated as net investment hedges
 
33

 
—

 
—

Interest rate swap contracts designated as cash flow hedges
 
4

 
—

 
—

Treasury rate lock agreements designated as cash flow hedges
 
383

 
—

 
—
Summary of pre-tax amounts and location of derivatives recognized in the consolidated statement of earnings
The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 13 for the amount of net gains (losses) reclassified out of AOCI.
years ended December 31 (in millions)
Statement of earnings caption
2019
 
2018
 
2017
Foreign currency forward exchange contracts
 
 
 
 
 
 
Designated as cash flow hedges
Cost of products sold
$
167

 
$
(161
)
 
$
118

Designated as net investment hedges
Interest expense, net
27

 
—

 
—

Not designated as hedges
Net foreign exchange loss
(70
)
 
83

 
(96
)
Treasury rate lock agreements designated as cash flow hedges
Interest expense, net
3

 
—

 
—

Interest rate swap contracts
 
 
 
 
 
 
Designated as cash flow hedges
Interest expense, net
1

 
—

 
—

Designated as fair value hedges
Interest expense, net
418

 
(71
)
 
(63
)
Debt designated as hedged item in fair value hedges
Interest expense, net
(418
)
 
71

 
63
Summary of bases used to measure assets and liabilities carried at fair value on a recurring basis
The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2019:
 
 
 
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


The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2018:
 
 
 
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
$
7,289

 
$
1,209

 
$
6,080

 
$
—

Time deposits
568

 
—

 
568

 
—

Debt securities
1,536

 
—

 
1,536

 
—

Equity securities
4

 
4

 
—

 
—

Foreign currency contracts
132

 
—

 
132

 
—

Total assets
$
9,529

 
$
1,213

 
$
8,316

 
$
—

Liabilities
 
 
 
 
 
 
 
Interest rate swap contracts
$
466

 
$
—

 
$
466

 
$
—

Foreign currency contracts
26

 
—

 
26

 
—

Contingent consideration
4,483

 
—

 
—

 
4,483

Total liabilities
$
4,975

 
$
—

 
$
492

 
$
4,483
Schedule of changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs:
years ended December 31 (in millions)
2019
 
2018
 
2017
Beginning balance
$
4,483

 
$
4,534

 
$
4,213

Change in fair value recognized in net earnings
3,091

 
49

 
626

Payments
(234
)
 
(100
)
 
(305
)
Ending balance
$
7,340

 
$
4,483

 
$
4,534
Schedule of book values, approximate fair values and bases used to measure certain financial instruments The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2019 are shown in the table below:
 
 
 
 
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

 
$
—


The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2018 are shown in the table below:
 
 
 
 
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
$
3,699

$
3,693

 
$
—

 
$
3,693

 
$
—

Current portion of long-term debt and finance lease obligations, excluding fair value hedges
1,609

1,617

 
1,609

 
8

 
—

Long-term debt and finance lease obligations, excluding fair value hedges
35,468

34,052

 
34,024

 
28

 
—

Total liabilities
$
40,776

$
39,362

 
$
35,633

 
$
3,729

 
$
—
Summary of available-for-sale securities by type
The following table summarizes available-for-sale securities by type as of December 31, 2018:
 
Amortized cost
 
Gross unrealized
 
Fair value
(in millions)
 
Gains
 
Losses
 
Asset backed securities
$
423

 
$
—

 
$
(2
)
 
$
421

Corporate debt securities
1,042

 
1

 
(9
)
 
1,034

Other debt securities
81

 
—

 
—

 
81

Total
$
1,546

 
$
1

 
$
(11
)
 
$
1,536