Equity

9 Months Ended

Sep. 30, 2023

Stockholders' Equity Note [Abstract]

EquityStock-Based Compensation

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


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Cost of products sold	$	9	$	8	$	38	$	33
Research and development	53		47		227		194
Selling, general and administrative	68		71		357		312
Pre-tax compensation expense	130		126		622		539
Tax benefit	(26)		(25)		(111)		(102)
After-tax compensation expense	$	104	$	101	$	511	$	437

Stock Options

During the nine months ended September 30, 2023, 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 $29.89. As of September 30, 2023, $7 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years.

RSUs and Performance Shares

During the nine months ended September 30, 2023, primarily in connection with the company's annual grant, AbbVie granted 5.8 million RSUs and performance shares with a weighted-average grant-date fair value of $149.59. As of September 30, 2023, $692 million of unrecognized compensation cost related to 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 2023 and 2022:


2023				2022
Date Declared	Payment Date	Dividend Per Share		Date Declared	Payment Date	Dividend Per Share
10/26/23	02/15/24	$	1.55	10/28/22	02/15/23	$	1.48
09/08/23	11/15/23	$	1.48	09/09/22	11/15/22	$	1.41
06/22/23	08/15/23	$	1.48	06/23/22	08/15/22	$	1.41
02/16/23	05/15/23	$	1.48	02/17/22	05/16/22	$	1.41

Stock Repurchase Program

The company's stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions 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.

On February 16, 2023, AbbVie’s board of directors authorized a $5.0 billion increase to the existing stock repurchase authorization. AbbVie repurchased 10 million shares for $1.6 billion during the nine months ended September 30, 2023 and 8 million shares for $1.1 billion during the nine months ended September 30, 2022. AbbVie's remaining stock repurchase authorization was approximately $4.8 billion as of September 30, 2023.

Accumulated Other Comprehensive Loss

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2023:


(in millions)	Foreign currency translation adjustments		Net investment hedging activities		Pension and post-employment benefits		Cash flow hedging activities		Total
Balance as of December 31, 2022	$	(1,513)	$	464	$	(1,458)	$	308	$	(2,199)
Other comprehensive income (loss) before reclassifications	(279)		156		43		61		(19)
Net gains reclassified from accumulated other comprehensive loss	—		(67)		(5)		(63)		(135)
Net current-period other comprehensive income (loss)	(279)		89		38		(2)		(154)
Balance as of September 30, 2023	$	(1,792)	$	553	$	(1,420)	$	306	$	(2,353)

Other comprehensive loss for the nine months ended September 30, 2023 included foreign currency translation adjustments totaling a loss of $279 million principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling a gain of $89 million.

The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2022:


(in millions)	Foreign currency translation adjustments		Net investment hedging activities		Pension and post-employment benefits		Cash flow hedging activities		Total
Balance as of December 31, 2021	$	(570)	$	(91)	$	(2,546)	$	308	$	(2,899)
Other comprehensive income (loss) before reclassifications	(2,043)		1,318		6		151		(568)
Net losses (gains) reclassified from accumulated other comprehensive loss	—		(53)		130		(53)		24
Net current-period other comprehensive income (loss)	(2,043)		1,265		136		98		(544)
Balance as of September 30, 2022	$	(2,613)	$	1,174	$	(2,410)	$	406	$	(3,443)

Other comprehensive loss for the nine months ended September 30, 2022 included foreign currency translation adjustments totaling a loss of $2.0 billion principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling a gain of $1.3 billion.

The following table 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 September 30,				Nine months ended September 30,
(in millions) (brackets denote gains)	2023		2022		2023		2022
Net investment hedging activities
Gains on derivative amount excluded from effectiveness testing(a)	$	(28)	$	(29)	$	(85)	$	(67)
Tax expense	6		6		18		14
Total reclassifications, net of tax	$	(22)	$	(23)	$	(67)	$	(53)
Pension and post-employment benefits
Amortization of actuarial losses and other(b)	$	(2)	$	55	$	(5)	$	166
Tax benefit	—		(12)		—		(36)
Total reclassifications, net of tax	$	(2)	$	43	$	(5)	$	130
Cash flow hedging activities
Gains on foreign currency forward exchange contracts(c)	$	(11)	$	(21)	$	(67)	$	(47)
Gains on treasury rate lock agreements(a)	(6)		(6)		(18)		(18)
Losses on cross-currency swap contracts(d)	14		—		6		—
Losses on interest rate swap contracts(a)	—		—		—		3
Tax expense	2		4		16		9
Total reclassifications, net of tax	$	(1)	$	(23)	$	(63)	$	(53)

(a) Amounts are included in interest expense, net (see Note 8).

(b) Amounts are included in the computation of net periodic benefit cost (see Note 9).

(d) Amounts are included in net foreign exchange loss (see Note 8).