View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2016
Document and Entity Information
Entry Registrant Name	AbbVie Inc.
Entity Central Index Key	0001551152
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 99,729,245,619
Entity Common Stock, Shares Outstanding		1,593,920,285
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY

Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net revenues	$ 25,638	$ 22,859	$ 19,960
Cost of products sold	5,833	4,500	4,426
Selling, general and administrative	5,855	6,387	7,724
Research and development	4,366	4,285	3,297
Acquired in-process research and development	200	150	352
Other expense		0	750
Total operating costs and expenses	16,254	15,322	16,549
Operating earnings	9,384	7,537	3,411
Interest expense, net	965	686	391
Net foreign exchange loss	303	193	678
Other expense (income), net	232	13	(27)
Earnings before income tax expense	7,884	6,645	2,369
Income tax expense	1,931	1,501	595
Net earnings	$ 5,953	$ 5,144	$ 1,774
Per share data
Basic earnings per share (in dollars per share)	$ 3.65	$ 3.15	$ 1.11
Diluted earnings per share (in dollars per share)	3.63	3.13	1.10
Cash dividends declared per common share (in dollars per share)	$ 2.35	$ 2.10	$ 1.75
Weighted-average basic shares outstanding (in shares)	1,622	1,625	1,595
Weighted-average diluted shares outstanding (in shares)	1,631	1,637	1,610

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net earnings	$ 5,953	$ 5,144	$ 1,774
Foreign currency translation adjustments, net of tax expense (benefit) of $(31) in 2016, $(139) in 2015 and $(158) in 2014	(165)	(667)	(1,073)
Pension and post-employment benefits, net of tax expense (benefit) of $(75) in 2016, $96 in 2015 and $(351) in 2014	(135)	230	(781)
Unrealized gains (losses) on marketable securities, net of tax expense (benefit) of $(11) in 2016, $22 in 2015 and $1 in 2014	(1)	44	1
Other comprehensive loss	(25)	(530)	(1,589)
Comprehensive income	5,928	4,614	185
Net investment hedging activities, net of tax expense (benefit) of $79 in 2016, $— in 2015 and $— in 2014
Hedging activities, net of tax	140	0	0
Cash flow hedging activities, net of tax expense (benefit) of $18 in 2016, $(6) in 2015 and $8 in 2014
Hedging activities, net of tax	$ 136	$ (137)	$ 264

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Foreign currency translation adjustments, tax expense (benefit)	$ (31)	$ (139)	$ (158)
Pension and post-employment benefits, tax expense (benefit)	75	(96)	351
Unrealized gains on marketable securities, tax expense (benefit)	(11)	22	1
Cash Flow Hedges
Hedging activities, tax expense (benefit)	18	(6)	8
Net Investment Hedges
Hedging activities, tax expense (benefit)	$ 79	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash and equivalents	$ 5,100	$ 8,399
Short-term investments	1,323	8
Accounts receivable, net	4,758	4,730
Inventories	1,444	1,719
Prepaid expenses and other	3,562	1,458
Total current assets	16,187	16,314
Investments	1,783	145
Property and equipment, net	2,604	2,565
Intangible assets, net	28,897	19,709
Goodwill	15,416	13,168
Other assets	1,212	1,149
Total assets	66,099	53,050
Current liabilities
Short-term borrowings	377	406
Current portion of long-term debt and lease obligations	25	2,025
Accounts payable and accrued liabilities	9,379	8,463
Total current liabilities	9,781	10,894
Long-term debt and lease obligations	36,440	29,240
Deferred income taxes	6,890	5,276
Other long-term liabilities	8,352	3,695
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,754,900,486 shares issued as of December 31, 2016 and 1,749,027,140 as of December 31, 2015.	18	17
Common stock held in treasury, at cost, 162,387,762 shares as of December 31, 2016 and 139,134,205 shares as of December 31, 2015.	(10,852)	(8,839)
Additional paid-in-capital	13,678	13,080
Retained earnings	4,378	2,248
Accumulated other comprehensive loss	(2,586)	(2,561)
Total stockholders’ equity	4,636	3,945
Total liabilities and equity	$ 66,099	$ 53,050

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	4,000,000,000	4,000,000,000
Common stock, issued (in shares)	1,754,900,486	1,749,027,140
Common stock held in treasury, at cost (in shares)	162,387,762	139,134,205

Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions	Total	Common stock	Treasury stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss
Beginning balance at Dec. 31, 2013	$ 4,492	$ 16	$ (320)	$ 3,671	$ 1,567	$ (442)
Beginning balance (in shares) at Dec. 31, 2013		1,587
Increase (Decrease) in Stockholders' Equity
Net earnings	1,774				1,774
Other comprehensive loss, net of tax	(1,589)					(1,589)
Dividends declared	(2,806)				(2,806)
Purchases of treasury stock	$ (665)		(665)
Purchases of treasury stock (in shares)	(9)	(9)
Stock-based compensation plans and other	$ 536		13	523
Stock-based compensation plans and other (in shares)		13
Ending balance at Dec. 31, 2014	1,742	$ 16	(972)	4,194	535	(2,031)
Ending balance (in shares) at Dec. 31, 2014		1,591
Increase (Decrease) in Stockholders' Equity
Net earnings	5,144				5,144
Other comprehensive loss, net of tax	(530)					(530)
Dividends declared	(3,431)				(3,431)
Common shares issued to stockholders in acquisition	8,405	$ 1		8,404
Common shares issued to stockholders in acquisition (in shares)		128
Purchases of treasury stock	$ (7,886)		(7,886)
Purchases of treasury stock (in shares)	(46)	(119)
Stock-based compensation plans and other	$ 501		19	482
Stock-based compensation plans and other (in shares)		10
Ending balance at Dec. 31, 2015	3,945	$ 17	(8,839)	13,080	2,248	(2,561)
Ending balance (in shares) at Dec. 31, 2015		1,610
Increase (Decrease) in Stockholders' Equity
Net earnings	5,953					0
Other comprehensive loss, net of tax	(25)					(25)
Dividends declared	(3,823)				(3,823)
Common shares issued to stockholders in acquisition	3,923	$ 0	3,958	(35)
Common shares issued to stockholders in acquisition (in shares)		63
Purchases of treasury stock	$ (6,018)		(6,018)
Purchases of treasury stock (in shares)	(34)	(94)
Stock-based compensation plans and other	$ 681	$ 1	47	633
Stock-based compensation plans and other (in shares)		14
Ending balance at Dec. 31, 2016	$ 4,636	$ 18	$ (10,852)	$ 13,678	$ 4,378	$ (2,586)
Ending balance (in shares) at Dec. 31, 2016		1,593

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Cash flows from operating activities

Net earnings

$ 5,953

$ 5,144

$ 1,774

Adjustments to reconcile net earnings to net cash from operating activities:

Depreciation

425

417

383

Amortization of intangible assets

764

419

403

Change in fair value of contingent consideration

228

Stock-based compensation

353

282

241

Upfront costs and milestones related to collaborations

280

1,102

Devaluation loss related to Venezuela

298

Other, net

429

489

434

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(71)

(1,076)

(172)

Inventories

(38)

(434)

(203)

Prepaid expenses and other assets

(393)

511

(220)

Accounts payable and other liabilities

(1,187)

1,503

(193)

Cash flows from operating activities

^[1]

7,041

7,535

3,549

Cash flows from investing activities

Acquisition of businesses, net of cash acquired

(2,495)

(11,488)

Other acquisitions and investments

(262)

(964)

(622)

Acquisitions of property and equipment

(479)

(532)

(612)

Purchases of investment securities

(5,315)

(851)

(1,169)

Sales and maturities of investment securities

2,359

899

1,477

Other

118

Cash flows from investing activities

(6,074)

(12,936)

(926)

Cash flows from financing activities

Net change in short-term borrowings

(29)

(19)

Proceeds from issuance of long-term debt

11,627

20,660

Repayments of long-term debt and lease obligations

(6,010)

(4,018)

(17)

Debt issuance cost

(69)

(182)

(141)

Dividends paid

(3,717)

(3,294)

(2,661)

Purchases of treasury stock

(6,033)

(7,586)

(665)

Proceeds from the exercise of stock options

268

155

232

Other, net

(53)

Cash flows from financing activities

(3,928)

5,752

(3,293)

Effect of exchange rate changes on cash and equivalents

(338)

(300)

(577)

Net increase (decrease) in cash and equivalents

(3,299)

(1,247)

Cash and equivalents, beginning of year

8,399

8,348

9,595

Cash and equivalents, end of year

5,100

8,399

8,348

Other supplemental information

Interest paid, net of portion capitalized

986

536

419

Income taxes paid

3,563

1,108

$ 498

Supplemental schedule of non-cash investing and financing activities

Issuance of common shares associated with acquisitions of businesses

$ 3,923

$ 8,405

[1]	Cash flows from operating activities included the impact of transaction and financing-related and other costs incurred in connection with the terminated proposed combination with Shire plc. See Note 5 for additional information.

Background and Basis of Presentation

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Background and Basis of Presentation

Background

The principal business of AbbVie Inc. (AbbVie or the company) is the discovery, development, manufacture and sale of a broad line of pharmaceutical products. AbbVie's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses. Substantially all of AbbVie's net revenues in the United States are to three wholesalers. Outside the United States, products are sold primarily to customers or through distributors, depending on the market served.

AbbVie was incorporated in Delaware on April 10, 2012. On January 1, 2013, AbbVie became an independent, publicly-traded company as a result of the distribution by Abbott Laboratories (Abbott) of 100% of the outstanding common stock of AbbVie to Abbott's shareholders. AbbVie incurred separation-related expenses of $270 million in 2015 and $445 million in 2014, which were principally classified in selling, general and administrative expenses (SG&A) in the consolidated statements of earnings. These charges principally related to information technology, legal and regulatory fees.

Basis of Historical Presentation

For a certain portion of AbbVie’s operations, the legal transfer of AbbVie’s assets (net of liabilities) did not occur with the separation of AbbVie on January 1, 2013 due to the time required to transfer marketing authorizations and satisfy other regulatory requirements in certain countries. Under the terms of the separation agreement with Abbott, AbbVie was responsible for the business activities conducted by Abbott on its behalf and was subject to the risks and entitled to the benefits generated by these operations and assets. As a result, the related assets and liabilities and results of operations have been reported in AbbVie’s consolidated financial statements as of and for the years ended December 31, 2016, 2015 and 2014. Net revenues related to these operations were insignificant in 2016, $213 million in 2015 and $282 million in 2014. All of these operations have been transferred to AbbVie as of December 31, 2016.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Use of Estimates

The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for rebates, pension and post-employment benefits, income taxes, litigation, valuation of intangible assets and goodwill, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures.

Basis of Consolidation

The consolidated financial statements as of and for the years ended December 31, 2016 and 2015 include the accounts of AbbVie and all of its subsidiaries in which a controlling interest is maintained. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, where AbbVie is determined to be the primary beneficiary. Investments in companies over which AbbVie has a significant influence but not a controlling interest are accounted for using the equity method with AbbVie's share of earnings or losses reported in other expense (income), net in the consolidated statements of earnings. All other investments are generally accounted for using the cost method. Intercompany balances and transactions are eliminated.

Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period presentation.

Revenue Recognition

AbbVie recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability of the sales price is reasonably assured. Revenue from product sales is recognized when title and risk of loss have passed to the customer. Provisions for discounts, rebates, sales incentives to customers, returns and other adjustments are provided for in the period the related revenues are recorded. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer. For each type of rebate, the factors used in the calculations of the accrual include the identification of the products subject to the rebate, the applicable price terms and the estimated lag time between sale and payment of the rebate, which can be significant. Sales incentives to customers are insignificant. Historical data is readily available and reliable and is used for estimating the amount of the reduction in gross revenues. Revenue from the launch of a new product, from an improved version of an existing product, or for shipments in excess of a customer's normal requirements are recorded when the conditions noted above are met. In those situations, management records a returns reserve for such revenue, if necessary. Sales of product rights for marketable products are recorded as revenue upon disposition of the rights.

Research and Development Expenses

Internal research and development (R&D) costs are expensed as incurred. Clinical trial costs incurred by third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development collaborations for pre-commercialization milestones, the milestone payment obligations are expensed when the milestone results are achieved. Payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the remaining useful life of the related product.

Collaborations and Other Arrangements

The company enters into collaborative agreements with third parties to develop and commercialize drug candidates. Collaborative activities may include joint research and development and commercialization of new products. AbbVie generally receives certain licensing rights under these arrangements. These collaborations often require upfront payments and may include additional milestone, research and development cost sharing, royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development and commercialization. Upfront payments associated with collaborative arrangements during the development stage are expensed to acquired in-process research and development (IPR&D) expenses in the consolidated statements of earnings. Subsequent payments made to the partner for the achievement of milestones during the development stage are expensed to R&D expense in the consolidated statements of earnings when the milestone is achieved. Milestone payments made to the partner subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the estimated useful life of the related asset. Royalties are expensed to cost of products sold in the consolidated statements of earnings when incurred.

Advertising

Costs associated with advertising are expensed as incurred and are included in SG&A expenses in the consolidated statements of earnings. Advertising expenses were $764 million in 2016, $704 million in 2015 and $665 million in 2014.

Pension and Other Post-Employment Benefits

AbbVie records annual expenses relating to its defined benefit pension and other post-employment plans based on calculations which utilize various actuarial assumptions, including discount rates, rates of return on assets, compensation increases, turnover rates and health care cost trend rates. AbbVie reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive loss (AOCI), net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are amortized to net periodic benefit cost over a five-year period.

Income Taxes

Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pretax earnings based on current tax laws. Deferred taxes are provided using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized.

Cash and Equivalents

Cash and equivalents include money market funds and time deposits with original maturities of three months or less.

Investments

Investments consist primarily of time deposits, marketable debt securities, held-to-maturity debt securities and equity securities. Investments in marketable securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in AOCI on the consolidated balance sheets. Investments in equity securities that are not traded on public stock exchanges and held-to-maturity debt securities are recorded at cost.

AbbVie periodically assesses its investment securities for other-than-temporary impairment losses. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below the cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security, intent to sell, or whether AbbVie will more likely than not be required to sell the security before recovery of its amortized cost basis. AbbVie also considers industry factors and general market trends. When AbbVie determines that an other than temporary decline has occurred, a cost basis investment is written down with a charge to other expense (income), net in the consolidated statements of earnings and an available-for-sale investment's unrealized loss is reclassified from AOCI to other expense (income), net in the consolidated statements of earnings. Realized gains and losses on sales of investments are computed using the first-in, first-out method adjusted for any other-than-temporary declines in fair value that were recorded in net earnings.

Accounts Receivable

Accounts receivable are stated at their net realizable value. The allowance against gross accounts receivable reflects the best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. Accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted. The allowance was $72 million at December 31, 2016 and $78 million at December 31, 2015.

Inventories

Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs. Inventories consisted of the following:



as of December 31 (in millions)	2016		2015
Finished goods	$	223	$	469
Work-in-process	1,080		1,081
Raw materials	141		169
Inventories	$	1,444	$	1,719

Property and Equipment



as of December 31 (in millions)	2016			2015
Land	$	46		$	46
Buildings	1,344			1,284
Equipment	5,726			5,656
Construction in progress	410			348
Property and equipment, gross	7,526			7,334
Less accumulated depreciation	(4,922		)	(4,769		)
Property and equipment, net	$	2,604		$	2,565

Depreciation for property and equipment is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life for buildings ranges from 10 to 50 years. Buildings include leasehold improvements which are amortized over the life of the related facility lease (including any renewal periods, if appropriate) or the asset, whichever is shorter. The estimated useful life for equipment ranges from 3 to 20 years. Equipment includes certain computer software and software development costs incurred in connection with developing or obtaining software for internal use and is amortized over 3 to 10 years. Depreciation expense was $425 million in 2016, $417 million in 2015 and $383 million in 2014. Assets related to capital leases were insignificant at December 31, 2016 and 2015.

Litigation and Contingencies

Loss contingency provisions are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. When a best estimate cannot be made, the minimum loss contingency amount in a probable range is recorded. Legal fees are expensed as incurred. AbbVie accrues for product liability claims, on an undiscounted basis. The liabilities are evaluated quarterly and adjusted if necessary as additional information becomes available. Receivables for insurance recoveries, if any, for product liability claims are recorded as assets, on an undiscounted basis, when it is probable that a recovery will be realized.

Business Combinations

AbbVie utilizes the acquisition method of accounting for business combinations. This method requires, among other things, that results of operations of acquired companies are included in AbbVie's results of operations beginning on the respective acquisition dates and that assets acquired and liabilities assumed are recognized at fair value as of the acquisition date. Any excess of the fair value of consideration transferred over the fair values of the net assets acquired is recognized as goodwill. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liabilities are recognized in other expense (income), net in the consolidated statements of earnings. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time generally not to exceed twelve months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred.

Goodwill and Intangible Assets

Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow model. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital and terminal values of market participants. Definite-lived intangibles are amortized over their estimated useful lives using the estimated pattern of economic benefit. AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. AbbVie first compares the projected undiscounted cash flows to be generated by the asset to its carrying value. If the undiscounted cash flows of an intangible asset are less than the carrying value, the intangible asset is written down to its fair value. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest level for which cash flows are largely independent of the cash flows of other assets and liabilities.

Goodwill and indefinite-lived assets are not amortized, but are subject to an impairment review annually and more frequently when indicators of impairment exist. An impairment of goodwill could occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. An impairment of Indefinite-lived intangible assets, which consist of capitalized IPR&D, would occur if the fair value of the IPR&D intangible asset is less than the carrying amount.

The company tests its goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value of reporting unit is less than its carrying amount, a quantitative impairment test is performed. AbbVie tests indefinite-lived intangible assets using a quantitative impairment test. For its quantitative impairment tests, the company uses an estimated future cash flow approach that requires significant judgment with respect to future volume, revenue and expense growth rates, changes in working capital use, future foreign currency exchange rates, the selection of an appropriate discount rate, asset groupings and other assumptions and estimates. The estimates and assumptions used are consistent with the company's business plans and a market participant's views of a company and similar companies. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of the assets and potentially result in different impacts to the company's results of operations. Actual results may differ from the company's estimates.

Acquired In-Process Research and Development

In an asset acquisition, the initial costs of rights to IPR&D projects acquired are expensed as IPR&D in the consolidated statements of earnings unless the project has an alternative future use. These costs include initial payments incurred prior to regulatory approval in connection with research and development collaboration agreements that provide rights to develop, manufacture, market and/or sell pharmaceutical products. In a business combination, the fair value of IPR&D projects acquired are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. R&D costs incurred after the acquisition are expensed as incurred.

Foreign Currency Translation

Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in other comprehensive (loss) income (OCI) in the consolidated statements of comprehensive income. The net assets of subsidiaries in highly inflationary economies are remeasured as if the functional currency were the reporting currency. The remeasurement is recognized in net foreign exchange loss in the consolidated statements of earnings.

Derivatives

All derivative instruments are recognized as either assets or liabilities at fair value on the consolidated balance sheets and are classified as current or long-term based on the scheduled maturity of the instrument.

For derivatives formally designated as hedges, the company assesses at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in the fair value or cash flows of the hedged item. The changes in fair value of a derivative designated as a fair value hedge and of the hedged item attributable to the hedged risk are recognized in earnings immediately. The effective portions of changes in the fair value of a derivative designated as a cash flow hedge are reported in AOCI and are subsequently recognized in earnings consistent with the underlying hedged item. If it is determined that a derivative is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If a hedged forecasted transaction becomes probable of not occurring, any gains or losses are reclassified from AOCI to earnings. Derivatives that are not designated as hedges are adjusted to fair value through current earnings.

The company also uses derivative instruments or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. Realized and unrealized gains and losses from these hedges are included in AOCI.

Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing section of the consolidated statements of cash flows.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-9, Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The amendments in this standard supersede most current revenue recognition requirements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. AbbVie can apply the amendments using one of the following two methods: (i) retrospectively to each prior reporting period presented, or (ii) modified retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. This standard will be effective for AbbVie starting with the first quarter of 2018. Early application is permitted only for annual reporting periods beginning starting with the first quarter of 2017. AbbVie will adopt the standard effective the first quarter of 2018 and apply the amendments using the modified retrospective method. AbbVie's revenues are primarily comprised of product sales. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The standard requires several targeted changes including that equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net earnings. These provisions will not impact the accounting for AbbVie's investments in debt securities. The new guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. Amendments are to be applied as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This standard will be effective for AbbVie starting with the first quarter of 2018. The standard does not permit early adoption with the exception of certain targeted provisions. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new standard requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new standard must be adopted using the modified retrospective approach and will be effective for AbbVie starting with the first quarter of 2019. Early adoption is permitted. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Under the new guidance, excess tax benefits associated with share-based awards will be recognized in the statement of earnings when the awards vest or settle, rather than in stockholders’ equity. The standard also permits entities to make a policy election to account for forfeitures as they occur and clarifies the statement of cash flows presentation for certain components of share-based awards. AbbVie will adopt the standard effective the first quarter of 2017 with any adjustments reflected as of the beginning of the fiscal year of adoption. AbbVie cannot predict the impact of adopting this standard as it will be dependent upon several unknown factors including when employees exercise stock options and the company's stock price at settlement date. However, based on historical trends, AbbVie does not believe the adoption will have a material impact on the company's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The standard changes how credit losses are measured for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. The standard additionally requires new disclosures and will be effective for AbbVie starting with the first quarter of 2020. Early adoption beginning in the first quarter of 2019 is permitted. With certain exceptions, adjustments are to be applied using a modified-retrospective approach by reflecting adjustments through a cumulative-effect impact to retained earnings as of the beginning of the fiscal year of adoption. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740). The new standard requires entities to recognize the income tax consequences of an intercompany transfer of an asset other than inventory when the transfer occurs. Under current U.S. GAAP, the income tax consequences of these intercompany asset transfers are deferred until the asset is sold to a third party or otherwise recovered through use. The standard will be effective for AbbVie starting with the first quarter of 2018. Early adoption is permitted as of the beginning of an annual period. Adjustments for this update are to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings with any adjustments reflected as of the beginning of the fiscal year of adoption. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. As of December 31, 2016, AbbVie had approximately $1.9 billion of prepaid income tax assets that will be affected by this standard, of which $1.4 billion was included in prepaid expenses and other on the consolidated balance sheet.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The standard provides clarifying guidance to assist in the evaluation of whether transactions are treated as business combinations or asset acquisitions. AbbVie will early adopt the standard starting with the first quarter of 2017. The ASU will be applied prospectively to any transactions occurring after adoption.

Supplemental Financial Information

12 Months Ended

Dec. 31, 2016

Supplemental Financial Information

Supplemental Financial Information

Interest Expense, Net



years ended December 31 (in millions)	2016			2015			2014
Interest expense	$	1,047		$	719		$	429
Interest income	(82		)	(33		)	(38		)
Interest expense, net	$	965		$	686		$	391

Accounts Payable and Accrued Liabilities



as of December 31 (in millions)	2016		2015
Sales rebates	$	2,887	$	2,355
Accounts payable	1,407		1,597
Dividends payable	1,028		924
Salaries, wages and commissions	644		632
Royalty and license arrangements	434		411
Other	2,979		2,544
Accounts payable and accrued liabilities	$	9,379	$	8,463

Other Long-Term Liabilities



as of December 31 (in millions)	2016		2015
Contingent consideration	$	3,941	$	—
Pension and other post-employment benefits	2,085		1,949
Liabilities for unrecognized tax benefits	1,166		902
Other	1,160		844
Other long-term liabilities	$	8,352	$	3,695

Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

AbbVie grants certain shares of restricted stock awards (RSAs) and restricted stock units (RSUs) that are considered to be participating securities. Due to the presence of participating securities, AbbVie calculates earnings per share (EPS) using the more dilutive of the treasury stock or the two-class method. For all periods presented, the two-class method was more dilutive.

The following table summarizes the impact of the two-class method:



	Years ended December 31,
(in millions, except per share information)	2016		2015		2014
Basic EPS
Net earnings	$	5,953	$	5,144	$	1,774
Earnings allocated to participating securities	30		26		9
Earnings available to common shareholders	$	5,923	$	5,118	$	1,765
Weighted-average basic shares outstanding	1,622		1,625		1,595
Basic earnings per share	$	3.65	$	3.15	$	1.11

Diluted EPS
Net earnings	$	5,953	$	5,144	$	1,774
Earnings allocated to participating securities	30		26		9
Earnings available to common shareholders	$	5,923	$	5,118	$	1,765
Weighted-average shares of common stock outstanding	1,622		1,625		1,595
Effect of dilutive securities	9		12		15
Weighted-average diluted shares outstanding	1,631		1,637		1,610
Diluted earnings per share	$	3.63	$	3.13	$	1.10

As further described in Note 12, in both 2016 and 2015, AbbVie entered into and executed an accelerated share repurchase agreement (ASR) with third party financial institutions. For purposes of calculating EPS, AbbVie reflected the ASR as a repurchase of AbbVie common stock in the relevant periods.

Certain shares issuable under stock-based compensation plans were excluded from the computation of EPS because the effect would have been antidilutive. The number of common shares excluded was insignificant for all periods presented.

Licensing, Acquisitions, and Other Arrangements

12 Months Ended

Dec. 31, 2016

Licensing, Acquisitions, and Other Arrangements

Licensing, Acquisitions, and Other Arrangements

Licensing, Acquisitions and Other Arrangements

Acquisition of Stemcentrx

On June 1, 2016, AbbVie acquired all of the outstanding equity interests in Stemcentrx, a privately-held biotechnology company. The transaction expands AbbVie’s oncology pipeline by adding the late-stage asset rovalpituzumab tesirine (Rova-T), four additional early-stage clinical compounds in solid tumor indications and a significant portfolio of pre-clinical assets. Rova-T is currently in registrational trials for small cell lung cancer.

The acquisition of Stemcentrx has been accounted for as a business combination using the acquisition method of accounting. The aggregate upfront consideration for the acquisition of Stemcentrx consisted of approximately 62.4 million shares of AbbVie common stock, issued from common stock held in treasury, and cash. AbbVie may make up to $4.0 billion in additional payments upon the achievement of certain development and regulatory milestones. The acquisition-date fair value of this contingent consideration totaled $620 million and was estimated using a combination of probability-weighted discounted cash flow models and Monte Carlo simulation models. The estimate was based on significant inputs that are not observable in the market, referred to as Level 3 inputs, as described in more detail in Note 10. The following table summarizes total consideration:



(in millions)
Cash	$	1,883
Fair value of AbbVie common stock	3,923
Contingent consideration	620
Total consideration	$	6,426

The following table summarizes fair values of assets acquired and liabilities assumed as of the June 1, 2016 acquisition date:



(in millions)
Assets acquired and liabilities assumed
Accounts receivable	$	1
Prepaid expenses and other	7
Property and equipment	17
Intangible assets - Indefinite-lived research and development	6,100
Accounts payable and accrued liabilities	(31		)
Deferred income taxes	(1,933		)
Other long-term liabilities	(7		)
Total identifiable net assets	4,154
Goodwill	2,272
Total assets acquired and liabilities assumed	$	6,426

Intangible assets related to IPR&D for Rova-T, four additional early-stage clinical compounds in solid tumor indications and several additional pre-clinical compounds. The estimated fair value of the acquired IPR&D was determined using the multi-period excess earnings model of the “income approach,” which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Some of the more significant assumptions inherent in the development of those asset valuations include the estimated annual cash flows for each asset or product (including net revenues, cost of sales, R&D costs, selling and marketing costs and working capital/contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the regulatory approval probabilities, commercial success risks, competitive landscape, as well as other factors.

The goodwill recognized from the acquisition of Stemcentrx represents expected synergies, including the ability to: (i) leverage the respective strengths of each business; (ii) expand the combined company’s product portfolio; (iii) accelerate AbbVie's clinical and commercial presence in oncology; and (iv) establish a strong leadership position in oncology and was impacted by the establishment of a deferred tax liability for the acquired identifiable intangible assets which have no tax basis. The goodwill is not deductible for tax purposes.

Subsequent to the acquisition date, the company made certain measurement period adjustments including a refinement of the discount rate assumption, to increase the fair value of consideration transferred by $273 million and made measurement period adjustments to the preliminary purchase price allocation, including: (i) an increase to indefinite-lived research and development intangible assets of $330 million; (ii) an increase to deferred income tax liabilities of $78 million; and (iii) an increase to goodwill of $21 million. These measurement period adjustments have been reflected in the tables above. The company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. These adjustments did not have a significant impact on AbbVie's results of operations. In the fourth quarter of 2016, the company finalized its valuation of the acquisition date assets acquired and liabilities assumed.

Following the acquisition date, the operating results of Stemcentrx have been included in the company's financial statements. AbbVie’s consolidated statement of earnings for the year ended December 31, 2016 included no net revenues and an operating loss of $165 million associated with Stemcentrx's operations. This operating loss included $43 million of post-acquisition stock-based compensation expense for Stemcentrx options and excluded interest expense and certain acquisition costs.

Pro Forma Financial Information

The following table presents the unaudited pro forma combined results of operations of AbbVie and Stemcentrx for the years ended December 31, 2016 and 2015 as if the acquisition of Stemcentrx had occurred on January 1, 2015:



	Years ended December 31,
(in millions, except per share information)	2016		2015
Net revenues	$	25,641	$	22,869
Net earnings	5,907		4,894
Basic earnings per share	$	3.58	$	2.90
Diluted earnings per share	$	3.56	$	2.88

The unaudited pro forma financial information was prepared using the acquisition method of accounting and was based on the historical financial information of AbbVie and Stemcentrx. In order to reflect the occurrence of the acquisition on January 1, 2015 as required, the unaudited pro forma financial information includes adjustments to reflect the additional interest expense associated with the issuance of debt to finance the acquisition and the reclassification of acquisition, integration and financing-related costs incurred during the year ended December 31, 2016 to the year ended December 31, 2015. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2015. In addition, the unaudited pro forma financial information is not a projection of the future results of operations of the combined company nor does it reflect the expected realization of any cost savings or synergies associated with the acquisition.

Acquisition of BI 655066 and BI 655064 from Boehringer Ingelheim

On April 1, 2016, AbbVie acquired all rights to risankizumab (BI 655066), an anti-IL-23 monoclonal biologic antibody in Phase 3 development for psoriasis, from Boehringer Ingelheim (BI) pursuant to a global collaboration agreement. AbbVie is also evaluating the potential of this biologic therapy in Crohn’s disease, psoriatic arthritis and asthma. In addition to risankizumab, AbbVie also gained rights to an anti-CD40 antibody, BI 655064, currently in Phase 1 development. BI will retain responsibility for further development of BI 655064 and AbbVie may elect to advance the program after completion of certain clinical achievements. The acquired assets include all patents, data, know-how, third-party agreements, regulatory filings and manufacturing technology related to BI 655066 and BI 655064.

The company concluded that the acquired assets met the definition of a business and accounted for the transaction as a business combination using the acquisition method of accounting. Under the terms of the agreement, AbbVie made an upfront payment of $595 million. $18 million of additional payments to BI pursuant to a contractual obligation to reimburse BI for certain development costs it incurred prior to the acquisition date were deferred. In addition, AbbVie may make additional contingent payments upon the achievement of defined development, regulatory and commercial milestones, as well as royalty payments based on net revenues of licensed products. The maximum aggregate amount payable for development and regulatory milestones is approximately $1.6 billion. The acquisition-date fair value of these milestones was $606 million. In addition, the acquisition-date fair value of contingent royalty payments was $2.8 billion. The potential contingent consideration payments were estimated by applying a probability-weighted expected payment model for contingent milestone payments and a Monte Carlo simulation model for contingent royalty payments, which were then discounted to present value. The fair value measurements were based on Level 3 inputs. The following table summarizes total consideration:



(in millions)
Cash	$	595
Deferred consideration payable	18
Contingent consideration	3,365
Total consideration	$	3,978

The following table summarizes fair values of assets acquired as of the April 1, 2016 acquisition date:



(in millions)
Assets acquired
Identifiable intangible assets - Indefinite-lived research and development	$	3,890
Goodwill	88
Total assets acquired	$	3,978

The estimated fair value of the acquired IPR&D was determined using the multi-period excess earnings model of the “income approach.” The goodwill recognized from this acquisition includes expected synergies, including an expansion of the combined company’s immunology product portfolio.

Subsequent to the acquisition date, the company made a measurement period adjustment to decrease the fair value of consideration transferred by $397 million and made measurement period adjustments to the preliminary purchase price allocation, including: (i) a decrease to indefinite-lived research and development intangible assets of $460 million; and (ii) an increase to goodwill of $63 million. These measurement period adjustments have been reflected in the tables above. The company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. In the fourth quarter of 2016, the company finalized its valuation of the acquisition date assets acquired.

Pro forma results of operations for this acquisition have not been presented because this acquisition is insignificant to AbbVie’s consolidated results of operations.

Acquisition of Pharmacyclics

On May 26, 2015, AbbVie acquired Pharmacyclics, a biopharmaceutical company that develops and commercializes novel therapies for people impacted by cancer. Pharmacyclics markets IMBRUVICA® (ibrutinib), a Bruton's tyrosine kinase (BTK) inhibitor, targeting B-cell malignancies.

The acquisition of Pharmacyclics was accounted for as a business combination using the acquisition method of accounting. The total consideration for the acquisition of Pharmacyclics consisted of cash and approximately 128 million shares of AbbVie common stock and is summarized as follows:



(in millions)
Cash	$	12,365
Fair value of AbbVie common stock	8,405
Total consideration	$	20,770

The following table summarizes the fair values of assets acquired and liabilities assumed as of the May 26, 2015 acquisition date:



(in millions)
Assets acquired and liabilities assumed
Cash and equivalents	$	877
Short-term investments	11
Accounts receivable	106
Inventories	492
Other assets	212
Intangible assets
Definite-lived developed product rights	4,590
Definite-lived license agreements	6,780
Indefinite-lived research and development	7,180
Accounts payable and accrued liabilities	(381		)
Deferred income taxes	(6,453		)
Other long-term liabilities	(254		)
Total identifiable net assets	13,160
Goodwill	7,610
Total assets acquired and liabilities assumed	$	20,770

The amortization of the fair market value step-up for acquired inventory was included in cost of products sold and R&D in the consolidated statements of earnings. The related amortization was $274 million in 2016 and $113 million in 2015.

Intangible assets relate to the IMBRUVICA developed product rights, IPR&D in the United States related to additional indications for IMBRUVICA and the contractual rights to IMBRUVICA profits and losses outside the United States as a result of the collaboration agreement with Janssen Biotech, Inc. and its affiliates (Janssen), one of the Janssen Pharmaceutical companies of Johnson & Johnson. See Note 6 for additional information regarding the collaboration with Janssen. The acquired definite-lived intangible assets are being amortized over a weighted-average estimated useful life of 12 years using the estimated pattern of economic benefit. The estimated fair value of the IPR&D and identifiable intangible assets was determined using the "income approach."

The goodwill recognized from the acquisition of Pharmacyclics includes expected synergies, including the ability to leverage the respective strengths of each business, expanding the combined company's product portfolio, acceleration of clinical and commercial presence in oncology and establishment of a strong leadership position in hematological oncology. The goodwill is not deductible for tax purposes.

In the second quarter of 2016, the company finalized its valuation of the acquisition date assets acquired and liabilities assumed. There were no measurement period adjustments in 2016.

From the acquisition date through December 31, 2015, AbbVie's 2015 consolidated statement of earnings included net revenues of $774 million and an operating loss of $519 million associated with Pharmacyclics' operations. The operating loss included $346 million of acquisition-related compensation expense, $261 million of inventory step-up and intangible asset amortization and $100 million of transaction and integration costs. Of these costs, $294 million was recorded within SG&A expenses, $152 million within R&D expense and $261 million within cost of products sold in the 2015 consolidated statement of earnings.

Pro Forma Financial Information

The following table presents the unaudited pro forma combined results of operations of AbbVie and Pharmacyclics for 2015 and 2014 as if the acquisition of Pharmacyclics had occurred on January 1, 2014:



years ended December 31 (in millions, except per share information)	2015		2014
Net revenues	$	23,215	$	20,690
Net earnings	5,345		812
Basic earnings per share	$	3.18	$	0.47
Diluted earnings per share	$	3.16	$	0.47

The unaudited pro forma financial information was prepared using the acquisition method of accounting and was based on the historical financial information of AbbVie and Pharmacyclics. In order to reflect the occurrence of the acquisition on January 1, 2014 as required, the unaudited pro forma financial information includes adjustments to reflect the incremental amortization expense to be incurred based on the fair values of the identifiable intangible assets acquired; the incremental cost of products sold related to the fair value adjustments associated with the acquisition-date inventory; the additional interest expense associated with the issuance of debt to finance the acquisition; and the reclassification of acquisition, integration and financing-related costs incurred during the year ended December 31, 2015 to the year ended December 31, 2014. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2014. In addition, the unaudited pro forma financial information is not a projection of the future results of operations of the combined company nor does it reflect the expected realization of any cost savings or synergies associated with the acquisition.

Other Licensing & Acquisitions Activity

Excluding the acquisitions above, cash outflows related to other acquisitions and investments totaled $262 million in 2016, $964 million in 2015 and $622 million in 2014. AbbVie recorded IPR&D charges of $200 million in 2016, $150 million in 2015 and $352 million in 2014. In 2014, AbbVie also recorded other operating expenses of $750 million related to the collaboration with Calico Life Sciences LLC (Calico). Significant arrangements impacting 2016, 2015 and 2014, some of which require contingent milestone payments, are summarized below.

C₂N Diagnostics

In March 2015, AbbVie entered into an exclusive worldwide license agreement with C₂N Diagnostics (C₂N) to develop and commercialize anti-tau antibodies for the treatment of Alzheimer's disease and other neurological disorders. As part of the agreement, AbbVie made an initial upfront payment of $100 million, which was expensed to IPR&D in 2015. In 2016, AbbVie made an additional payment of $35 million, which was recorded in R&D expense, due to the achievement of a development milestone under the license agreement. Upon the achievement of certain development, regulatory and commercial milestones, AbbVie could make additional payments of up to $650 million, as well as royalties on net revenues.

Calico Life Sciences LLC

In September 2014, AbbVie and Calico entered into a novel R&D collaboration agreement to discover, develop and commercialize new therapies for patients with age-related diseases, including neurodegeneration and cancer. In 2014, AbbVie recorded $750 million in other operating expense in the consolidated statement of earnings related to its commitments under the agreement of which $250 million was paid in 2014 and $500 million was paid in early 2015. Calico is responsible for research and early development during the first five years and will continue to advance collaboration projects through Phase 2a for a 10 year period. AbbVie will have the option to exclusively license collaboration compounds after completion of Phase 2a. AbbVie will support Calico in its early R&D efforts and, upon option exercise, would be responsible for all late-stage development and commercial activities. Collaboration costs and profits will be shared equally by both companies post option exercise.

Infinity Pharmaceuticals, Inc.

In September 2014, AbbVie entered into a global collaboration agreement with Infinity Pharmaceuticals, Inc. (Infinity) to develop and commercialize duvelisib (IPI-145) for the treatment of patients with cancer. As part of the agreement, AbbVie made an initial upfront payment of $275 million, which was expensed to IPR&D in the third quarter of 2014. In 2015, AbbVie made an additional payment of $130 million, which was recorded in R&D expense in the consolidated statement of earnings, due to the achievement of a development milestone under the collaboration agreement. In June 2016, AbbVie exercised its right to end its global collaboration with Infinity. Pursuant to the terms of the global collaboration agreement, the worldwide rights to duvelisib reverted to Infinity.

Other Arrangements

In addition to the significant arrangements described above, AbbVie entered into several other arrangements resulting in charges to IPR&D of $200 million in 2016, $50 million in 2015 and $77 million in 2014. In connection with the other individually insignificant early stage arrangements entered into in 2016, AbbVie could make additional payments of up to $2.6 billion upon the achievement of certain development, regulatory and commercial milestones.

Other Activity

Priority Review Voucher (PRV)

In August 2015, AbbVie entered into an agreement to purchase a rare pediatric disease PRV from a third party. The PRV entitles AbbVie to receive an FDA priority review of a single New Drug Application or Biologics License Application, which reduces the target review time and could lead to an expedited approval. In exchange for the PRV, AbbVie made a payment of $350 million, which was recorded in R&D expense in the consolidated statement of earnings and as an operating cash outflow in the consolidated statement of cash flows for 2015. AbbVie intends to use the PRV for an existing R&D project.

Termination of Proposed Combination with Shire

On October 15, 2014, AbbVie's board of directors withdrew its previous recommendation to AbbVie stockholders in favor of a proposed combination with Shire and recommended stockholders vote against the proposed combination. On October 20, 2014, AbbVie and Shire mutually agreed to terminate the proposed combination. In 2014, the company incurred transaction and financing-related costs totaling $1.8 billion, of which $1.7 billion was recorded in SG&A expenses and $141 million was recorded in interest expense, net in the consolidated statement of earnings. Included in SG&A expenses was a break fee of $1.6 billion, which was tax deductible, paid by AbbVie to Shire in October 2014 as a result of the termination of the proposed combination. In addition, the company recorded $666 million of net foreign exchange losses primarily due to undesignated forward contracts that were entered into to hedge anticipated foreign currency cash outflows associated with the terminated proposed combination with Shire and the exit of certain foreign currency positions. The forward contracts were settled in 2014. In the first quarter of 2015, AbbVie recorded additional foreign exchange losses of $170 million to reflect the completed liquidation of its remaining foreign currency positions.

Collaboration with Janssen Biotech, Inc.

12 Months Ended

Dec. 31, 2016

Collaboration with Janssen Biotech, Inc.

Collaboration with Janssen Biotech, Inc.

In December 2011, Pharmacyclics entered into a worldwide collaboration and license agreement with Janssen for the joint development and commercialization of IMBRUVICA, a novel, orally active, selective covalent inhibitor of BTK and certain compounds structurally related to IMBRUVICA, for oncology and other indications, excluding all immune and inflammatory mediated diseases or conditions and all psychiatric or psychological diseases or conditions, in the United States and outside the United States.

The collaboration provides Janssen with an exclusive license to commercialize IMBRUVICA outside of the United States and co-exclusively with AbbVie in the United States. Both parties are responsible for the development, manufacturing and marketing of any products generated as a result of the collaboration. The collaboration has no set duration or specific expiration date and provides for potential future development, regulatory and approval milestone payments of up to $200 million to AbbVie.

Janssen is responsible for and has exclusive rights to commercialize IMBRUVICA outside the United States. While both parties have co-exclusive rights to commercialize the products in the United States, AbbVie is the principal in the end customer product sales. For sales of IMBRUVICA in the United States, revenues are included in net revenues. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of products. Amounts payable to AbbVie by Janssen for IMBRUVICA collaboration profits outside the United States are included in net revenues. Amounts payable to Janssen by AbbVie for IMBRUVICA collaboration profits in the United States are included in cost of products sold. The collaboration also includes a cost sharing arrangement for associated collaboration activities. Except in certain cases, in general, Janssen is responsible for approximately 60% of collaboration development costs and AbbVie is responsible for the remaining 40% of collaboration development costs. Operating expenses for costs incurred under the collaboration are reported in their respective expense line items, net of any payments due to or reimbursements due from Janssen.

The following table shows the profit and cost sharing relationship between Janssen and AbbVie:



	Twelve months ended December 31,
(in millions)	2016		2015
Collaboration revenues - International	$	252	$	95
AbbVie profit share costs - United States	735		306
AbbVie's share of cost sharing expenses	262		159

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The following table summarizes the changes in the carrying amount of goodwill:



(in millions)
Balance as of December 31, 2014	$	5,862
Additions (see Note 5)	7,610
Foreign currency translation and other adjustments	(304		)
Balance as of December 31, 2015	13,168
Additions (see Note 5)	2,360
Foreign currency translation and other adjustments	(112		)
Balance as of December 31, 2016	$	15,416

The latest impairment assessment of goodwill was completed in the third quarter of 2016. As of December 31, 2016, there were no accumulated goodwill impairment losses. Future impairment tests for goodwill will be performed annually in the third quarter, or earlier if impairment indicators exist.

Intangible Assets, Net

The following table summarizes intangible assets:



	2016							2015
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	$	16,464	$	(4,256	)	$	12,208	$	9,103	$	(3,944	)	$	5,159
License agreements	7,809		(1,110		)	6,699		8,000		(1,023		)	6,977
Total definite-lived intangible assets	24,273		(5,366		)	18,907		17,103		(4,967		)	12,136
Indefinite-lived research and development	9,990		—			9,990		7,573		—			7,573
Total intangible assets, net	$	34,263	$	(5,366	)	$	28,897	$	24,676	$	(4,967	)	$	19,709

Intangible assets with finite useful lives are amortized over their estimated useful lives, which range between 2 to 16 years with an average of 12 years for developed product rights and 11 years for license agreements. In 2016, AbbVie reclassified an aggregate $7.6 billion of indefinite-lived research and development intangible assets to developed product rights and license agreements intangible assets upon receiving certain regulatory approvals related to IMBRUVICA and ZINBRYTA. These intangible assets will be amortized over their estimated useful lives using the estimated pattern of economic benefit. Additionally, in 2016, AbbVie reduced both the gross carrying amount and accumulated amortization by $396 million for certain developed product rights and license agreements that are fully amortized and no longer generating cash flows.

Amortization expense was $764 million in 2016, $419 million in 2015 and $403 million in 2014 and was included in cost of products sold in the consolidated statements of earnings. The anticipated annual amortization expense for definite lived intangible assets recorded as of December 31, 2016 is as follows:



(in billions)	2017		2018		2019		2020		2021
Anticipated annual amortization expense	$	1.1	$	1.3	$	1.6	$	1.8	$	2.0

In the first quarter of 2016, an impairment charge of $39 million was recorded related to certain developed product rights in the United States due to a decline in the market for the product. In 2015, no intangible asset impairment charges were recorded. In the third quarter of 2014, an impairment charge of $37 million was recorded related to certain on-market product rights in Japan due to increased generic competition. The 2016 and 2014 impairment charges were based on discounted cash flow analyses and were included in cost of products sold in the consolidated statements of earnings.

The indefinite-lived intangible assets represent acquired IPR&D associated with products that have not yet received regulatory approval. Indefinite-lived intangible assets as of December 31, 2016 primarily related to the acquisition of Stemcentrx and BI compounds. Indefinite-lived intangible assets as of December 31, 2015 primarily related to the acquisition of Pharmacyclics. See Note 5 for additional information. The latest impairment assessment of intangible assets not subject to amortization was completed in the third quarter of 2016. No impairment charges were recorded in 2016 and 2015 and those recorded in 2014 were insignificant. Future impairment tests for indefinite-lived intangible assets will be performed annually in the third quarter, or earlier if impairment indicators exist.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Restructuring Plans

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring Plans

AbbVie continuously evaluates its operations to identify opportunities to optimize its manufacturing and R&D operations, commercial infrastructure and administrative costs and to respond to changes in its business environment, for example, in conjunction with the loss and expected loss of exclusivity of certain products. As a result, AbbVie management periodically approves individual restructuring plans to achieve these objectives. In 2016, 2015 and 2014, no such plans were individually significant. Restructuring charges recorded were $52 million in 2016, $138 million in 2015 and $23 million in 2014 and were primarily related to employee severance and contractual obligations. These charges were recorded in cost of products sold, R&D expense and SG&A expenses in the consolidated statements of earnings based on classification of the affected employees or operations.

The following summarizes the cash activity in the restructuring reserve for 2016, 2015 and 2014:



(in millions)
Accrued balance at December 31, 2013	$	191
2014 restructuring charges	16
Payments and other adjustments	(85		)
Accrued balance at December 31, 2014	122
2015 restructuring charges	126
Payments and other adjustments	(100		)
Accrued balance at December 31, 2015	148
2016 restructuring charges	52
Payments and other adjustments	(113		)
Accrued balance at December 31, 2016	$	87

Debt, Credit Facilities, and Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Debt, Credit Facilities, and Commitments and Contingencies

Debt, Credit Facilities, and Commitments and Contingencies

Debt, Credit Facilities and Commitments and Contingencies

The following is a summary of long-term debt:



as of December 31 (in millions)	Effective interest rate in 2016^(a)		2016			Effective interest rate in 2015^(a)		2015
Senior notes issued in 2012:
1.75% notes due 2017	1.86	%	$	—		1.86	%	$	4,000
2.00% notes due 2018	2.15	%	1,000			2.15	%	1,000
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:
1.80% notes due 2018	1.92	%	3,000			1.92	%	3,000
2.50% notes due 2020	2.65	%	3,750			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			—	%	—
2.85% notes due 2023	2.91	%	1,000			—	%	—
3.20% notes due 2026	3.28	%	2,000			—	%	—
4.30% notes due 2036	4.37	%	1,000			—	%	—
4.45% notes due 2046	4.50	%	2,000			—	%	—
Senior Euro notes issued in 2016:
0.38% notes due 2019 (€1,400 principal)	0.55	%	1,464			—	%	—
1.38% notes due 2024 (€1,450 principal)	1.46	%	1,516			—	%	—
2.13% notes due 2028 (€750 principal)	2.18	%	784			—	%	—
Term loan facilities:
Floating rate notes due 2016	—	%	—			1.23	%	2,000
Floating rate notes due 2018	1.64	%	2,000			1.38	%	2,000
Other	—	%	113			—	%	139
Fair value hedges	—	%	(338		)	—	%	(72		)
Unamortized bond discounts	—	%	(110		)	—	%	(85		)
Unamortized deferred financing costs	—	%	(164		)	—	%	(117		)
Total long-term debt and lease obligations			36,465					31,265
Current portion			25					2,025
Noncurrent portion			$	36,440				$	29,240


(a)	Excludes the effect of any related interest rate swaps.

In November 2016, the company issued €3.6 billion aggregate principal amount of unsecured senior Euro notes. These senior notes rank equally with all other unsecured and unsubordinated indebtedness of the company. AbbVie may redeem the senior notes prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium. AbbVie may redeem the senior notes at par between one and three months prior to maturity. In connection with the offering, debt issuance costs totaled $17 million and debt discounts incurred totaled $9 million and are being amortized over the respective terms of the notes to interest expense, net in the consolidated statements of earnings. The company used the proceeds to redeem $4.0 billion aggregate principal amount of 1.75% senior notes due to mature in November 2017. As a result of this redemption, the company incurred a charge of $39 million ($25 million after tax) related to the make-whole premium, write-off of unamortized debt issuance costs and other expenses. The charge was recorded in interest expense, net in the consolidated statement of earnings.

In May 2016, the company issued $7.8 billion aggregate principal amount of unsecured senior notes. These senior notes rank equally with all other unsecured and unsubordinated indebtedness of the company. AbbVie may redeem the senior notes prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium. AbbVie may redeem the senior notes at par between one and six months prior to maturity. In connection with the offering, debt issuance costs totaled $52 million and debt discounts incurred totaled $29 million and are being amortized over the respective terms of the notes to interest expense, net in the consolidated statements of earnings. Of the $7.7 billion net proceeds, $2.0 billion was used to repay the company’s outstanding term loan that was due to mature in November 2016, approximately $1.9 billion was used to finance the acquisition of Stemcentrx and approximately $3.8 billion was used to finance an ASR with a third party financial institution. See Note 5 for additional information related to the acquisition of Stemcentrx and Note 12 for additional information related to the ASR.

In September 2015, AbbVie entered into a $2.0 billion three-year term loan credit agreement and a $2.0 billion 364-day term loan credit agreement (collectively, the term loan facilities). In November 2015, AbbVie drew on these term loan facilities and used the proceeds to refinance its $4.0 billion of senior notes that matured in November 2015. In connection with the May 2016 unsecured senior notes issuance, AbbVie repaid the 364-day term loan credit agreement. The borrowings under the term loan facilities bear interest at variable rates which are adjusted based on AbbVie's public debt ratings.

In May 2015, the company issued $16.7 billion aggregate principal amount of unsecured senior notes. The senior notes rank equally with all other unsecured and unsubordinated indebtedness of the company. AbbVie may redeem the senior notes prior to maturity at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium and, except for the 1.80% notes due 2018, AbbVie may redeem the senior notes at par between one and six months prior to maturity. Debt issuance costs incurred in connection with the offering totaled $93 million and are being amortized over the respective terms of the senior notes to interest expense, net in the consolidated statements of earnings. Approximately $11.5 billion of the net proceeds from the issuance of the senior notes were used to finance the acquisition of Pharmacyclics and approximately $5.0 billion of the net proceeds were used to finance an ASR with a third party financial institution. See Note 5 for additional information related to the acquisition of Pharmacyclics and Note 12 for additional information related to the ASR.

In March 2015, AbbVie entered into an $18.0 billion bridge loan in support of the then planned acquisition of Pharmacyclics. No amounts were drawn under the bridge loan, which was terminated as a result of the company's May 2015 senior notes issuance. Interest expense, net in 2015 includes $86 million of costs related to the bridge loan.

AbbVie has outstanding $6.7 billion aggregate principal amount of unsecured senior notes which were issued in 2012. AbbVie may redeem all of the senior notes of each series, at any time, or some of the senior notes of each series, from time to time, at a redemption price equal to the principal amount of the senior notes redeemed plus a make-whole premium.

At December 31, 2016, the company was in compliance with its senior note covenants and term loan covenants.

Short-Term Borrowings

Short-term borrowings included commercial paper borrowings of $377 million at December 31, 2016 and $400 million at December 31, 2015. The weighted-average interest rate on short-term borrowings was 0.6% in 2016, 0.3% in 2015 and 0.2% in 2014.

In October 2014, AbbVie entered into a $3.0 billion five-year revolving credit facility, which matures in October 2019. The revolving credit facility enables the company to borrow funds on an unsecured basis at variable interest rates and contains various covenants. At December 31, 2016, the company was in compliance with all its credit facility covenants. Commitment fees under AbbVie's revolving credit facilities were insignificant in 2016, 2015 and 2014. No amounts were outstanding under the credit facility as of December 31, 2016 and December 31, 2015.

Maturities of Long-Term Debt and Capital Lease Obligations

The following table summarizes AbbVie's future minimum lease payments under non-cancelable operating leases, debt maturities and future minimum lease payments for capital lease obligations as of December 31, 2016:



as of and for the years ending December 31 (in millions)	Operating leases		Debt maturities and capital leases
2017	$	131	$	25
2018	116		6,023
2019	106		1,480
2020	95		3,760
2021	77		1,802
Thereafter	449		23,987
Total obligations and commitments	974		37,077
Fair value hedges, unamortized bond discounts and deferred financing costs	—		(612		)
Total debt and lease obligations	$	974	$	36,465

Lease expense was $159 million in 2016, $146 million in 2015 and $115 million in 2014. AbbVie's operating leases generally include renewal options and provide for the company to pay taxes, maintenance, insurance and other operating costs of the leased property. As of December 31, 2016, annual future minimum lease payments for capital lease obligations are insignificant.

Contingencies and Guarantees

In connection with the separation, AbbVie has indemnified Abbott for all liabilities resulting from the operation of AbbVie's business other than income tax liabilities with respect to periods prior to the distribution date and other liabilities as agreed to by AbbVie and Abbott. AbbVie has no material exposures to off-balance sheet arrangements and no special-purpose entities. In the ordinary course of business, AbbVie has periodically entered into third-party agreements, such as the assignment of product rights, which have resulted in AbbVie becoming secondarily liable for obligations for which AbbVie had previously been primarily liable. Based upon past experience, the likelihood of payments under these agreements is remote. AbbVie periodically acquires a business or product rights in which AbbVie agrees to pay contingent consideration based on attaining certain thresholds or based on the occurrence of certain future events.

Financial Instruments and Fair Value Measures

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measures

Risk Management Policy

The company is exposed to foreign currency exchange rate and interest rate risks related to its business operations. AbbVie's hedging policy attempts to manage these risks to an acceptable level based on the company's judgment of the appropriate trade-off between risk, opportunity and costs. The company uses derivative and nonderivative instruments to reduce its exposure to foreign currency exchange rates. AbbVie is also exposed to the risk that its earnings and cash flows could be adversely impacted by fluctuations in interest rates and periodically enters into interest rate swaps, in which the company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. Derivative instruments are not used for trading purposes or to manage exposure to changes in interest rates for investment securities and none of the company's outstanding derivative instruments contain credit risk related contingent features; collateral is generally not required.

Financial Instruments

Various AbbVie foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany transactions denominated in a currency other than the functional currency of the local entity. These contracts, with notional amounts totaling $2.2 billion at December 31, 2016 and $1.5 billion at December 31, 2015 are designated as cash flow hedges and are recorded at fair value. The durations of these forward exchange contracts were generally less than eighteen months. Accumulated gains and losses as of December 31, 2016 will be reclassified from AOCI and included in cost of products sold at the time the products are sold, generally not exceeding six months from the date of settlement.

The company also enters into foreign currency forward exchange contracts to manage its exposure to foreign currency denominated trade payables and receivables and intercompany loans. These contracts are not designated as hedges and are recorded at fair value. Resulting gains or losses are reflected in net foreign exchange loss in the consolidated statements of earnings and are generally offset by losses or gains on the foreign currency exposure being managed. AbbVie held notional amounts of $6.6 billion at December 31, 2016 and $6.8 billion at December 31, 2015 of such undesignated foreign currency forward exchange contracts.

In 2014, the company entered into undesignated forward exchange contracts with a total notional amount of $16.9 billion to hedge anticipated foreign currency cash outflows associated with the terminated proposed combination with Shire. A large portion of these contracts were originally due to mature in the first quarter of 2015, but were net settled in the fourth quarter of 2014. In 2014, the company realized $490 million in net foreign exchange losses associated with the Shire-related forward exchange contracts.

The company also uses foreign currency forward exchange contracts or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. In the fourth quarter of 2016, the company issued €3.6 billion aggregate principal amount of senior Euro notes and designated the principal amounts of this foreign denominated debt as net investment hedges. Concurrently, the company settled foreign currency forward exchange contracts with aggregate notional amounts of €3.5 billion ($3.9 billion) that were designated as net investment hedges.

AbbVie is a party to interest rate hedge contracts, designated as fair value hedges, totaling $11.8 billion at December 31, 2016 and $11.0 billion at December 31, 2015. The effect of the hedge contracts is to change a fixed-rate interest obligation to a floating rate for that portion of the debt. AbbVie records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount.

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	2016		2015		Balance sheet caption	2016		2015
Foreign currency forward exchange contracts-
Hedging instruments	Prepaid expenses and other	$	170	$	33	Accounts payable and accrued liabilities	$	5	$	—
Others not designated as hedges	Prepaid expenses and other	55		28		Accounts payable and accrued liabilities	33		21
Interest rate swaps designated as fair value hedges	Other assets	—		9		Other long-term liabilities	338		81
Total derivatives		$	225	$	70		$	376	$	102

While certain derivatives are subject to netting arrangements with the company's counterparties, the company does not offset derivative assets and liabilities within the consolidated balance sheets.

The following table presents the amounts of gains/ (losses) from derivative instruments recognized in other comprehensive loss. The amount of hedge ineffectiveness was insignificant for all periods presented:



	2016						2015						2014
(in millions)	Cash Flow Hedges		Net Investment Hedges		Total		Cash Flow Hedges		Net Investment Hedges		Total		Cash Flow Hedges		Net Investment Hedges		Total
Foreign currency forward exchange contracts	$	174	$	118	$	292	$	122	$	—	$	122	$	193	$	—	$	193

Assuming market rates remain constant through contract maturities, we expect to transfer pretax unrealized gains of $194 million into cost of products sold for foreign currency cash flow hedges during the next 12 months.

Related to AbbVie’s non-derivative, foreign currency denominated debt designated as net investment hedges, the company recognized a pre-tax gain of $101 million in other comprehensive income (loss) in 2016.

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 effective portions of the net gains/(losses) reclassified out of AOCI into net earnings. See Note 12 for the amount of net gains/(losses) reclassified out of AOCI.



years ended December 31 (in millions)	Statement of earnings caption	2016			2015			2014
Foreign currency forward exchange contracts-
Designated as cash flow hedges	Cost of products sold	$	20		$	265		$	(79	)
Not designated as hedges	Net foreign exchange loss	6			(155		)	(523		)
Non-designated treasury rate lock agreements	Other expense (income), net	(12		)	—			—
Interest rate swaps designated as fair value hedges	Interest expense, net	(266		)	108			252
Total		$	(252	)	$	218		$	(350	)

The gain/(loss) related to outstanding interest rate swaps designated as fair value hedges is recognized in interest expense, net and directly offsets the (loss)/gain on the underlying hedged item, the fixed-rate debt, resulting in no net impact to interest expense, net for all periods presented.

Fair Value Measures

The fair value hierarchy consists of the following three levels:


•	Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access;


•	Level 2—Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and


•	Level 3—Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company's management about the assumptions market participants would use in pricing the asset or liability.

The following table summarizes the bases used to measure certain assets and liabilities that were carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2016:



			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	$	5,100	$	1,191	$	3,909	$	—
Time deposits	1,014		—		1,014		—
Debt securities	1,974		—		1,974		—
Equity securities	76		76		—		—
Foreign currency contracts	225		—		225		—
Total assets	$	8,389	$	1,267	$	7,122	$	—
Liabilities
Interest rate hedges	$	338	$	—	$	338	$	—
Foreign currency contracts	38		—		38		—
Contingent consideration	4,213		—		—		4,213
Total liabilities	$	4,589	$	—	$	376	$	4,213

The following table summarizes the bases used to measure certain assets and liabilities that were carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2015:



			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	$	8,399	$	798	$	7,601	$	—
Time deposits	8		—		8		—
Equity securities	111		111		—		—
Interest rate hedges	9		—		9		—
Foreign currency contracts	61		—		61		—
Total assets	$	8,588	$	909	$	7,679	$	—
Liabilities
Interest rate hedges	$	81	$	—	$	81	$	—
Foreign currency contracts	21		—		21		—
Total liabilities	$	102	$	—	$	102	$	—

The fair values of time deposits approximate their amortized cost due to the short maturities of these instruments. The fair values of available-for-sale debt securities were based on prices obtained from commercial pricing services. Available-for-sale equity securities consists of investments for which the fair values were determined by using the published market price per unit multiplied by the number of units held, without consideration of transaction costs. The derivatives entered into by the company were valued using publicized spot curves for interest rate hedges and publicized forward curves for foreign currency contracts. The fair value measurements of the contingent consideration liabilities were determined based on significant unobservable inputs, including the discount rate, estimated probabilities and timing of achieving specified development, regulatory and commercial milestones and the estimated amount of future sales of the acquired products still in development. Changes to the fair value of the contingent consideration liabilities can result from changes to one or a number of inputs, including discount rates, the probabilities of achieving the milestones, the time required to achieve the milestones and estimated future sales. Significant judgment is employed in determining the appropriateness of these inputs. Changes to the inputs described above could have a material impact on the company's financial position and results of operations in any given period. At December 31, 2016, a 50 basis point increase/decrease in the assumed discount rate would have decreased/increased the value of the contingent consideration liabilities by approximately $180 million. Additionally, at December 31, 2016, a five percentage point increase/decrease in the assumed probability of success across all potential indications would have increased/decreased the value of the contingent consideration liabilities by approximately $360 million.

There have been no transfers of assets or liabilities between the fair value measurement levels. The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent consideration related to the acquisitions of Stemcentrx and BI compounds. See Note 5 for additional information.



(in millions)
Fair value as of December 31, 2015	$	—
Additions	3,985
Change in fair value recognized in net earnings	228
Fair value as of December 31, 2016	$	4,213

The change in fair value recognized in net earnings was recorded in other expense (income), net in the consolidated statement of net earnings for the twelve months ended December 31, 2016.

In addition to the financial instruments that the company is required to recognize at fair value on the consolidated balance sheets, the company has certain financial instruments that were recognized at historical cost or some basis other than fair value. The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2016 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)
Assets
Investments	$	42	$	42	$	—	$	5	$	37
Total assets	$	42	$	42	$	—	$	5	$	37
Liabilities
Short-term borrowings	$	377	$	377	$	—	$	377	$	—
Current portion of long-term debt and lease obligations	25		25		—		25		—
Long-term debt and lease obligations, excluding fair value hedges	36,778		36,664		34,589		2,075		—
Total liabilities	$	37,180	$	37,066	$	34,589	$	2,477	$	—

The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2015 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)
Assets
Investments	$	34	$	37	$	—	$	—	$	37
Total assets	$	34	$	37	$	—	$	—	$	37
Liabilities
Short-term borrowings	$	406	$	406	$	—	$	406	$	—
Current portion of long-term debt and lease obligations	2,025		2,016		—		2,016		—
Long-term debt and lease obligations, excluding fair value hedges	29,312		29,143		27,061		2,082		—
Total liabilities	$	31,743	$	31,565	$	27,061	$	4,504	$	—

Investments primarily consist of cost method investments. To determine the fair values of other cost method investments, the company takes into consideration recent transactions, as well as the financial information of the investee, which represents a Level 3 basis of fair value measurement. The fair values of short-term and current borrowings approximate the carrying values due to the short maturities of these instruments.

The fair values of long-term debt, excluding fair value hedges and the term loans, were determined by using the published market price for the debt instruments, without consideration of transaction costs, which represents a Level 1 basis of fair value measurement. The fair values of the term loans were determined based on a discounted cash flow analysis using quoted market rates, which represents a Level 2 basis of fair value measurement. The counterparties to financial instruments consist of select major international financial institutions.

Available-for-sale Securities

Substantially all of the company’s investments in debt and equity securities were classified as available-for-sale. As of December 31, 2016, $309 million of debt securities were classified as short-term. Long-term debt securities mature primarily within five years. There were no significant debt securities outstanding as of December 31, 2015. Estimated fair values of available-for-sale debt securities were based on prices obtained from commercial pricing services. The following table is a summary of available-for-sale securities by type as of December 31, 2016:



	Amortized Cost		Gross unrealized					Fair Value
(in millions)	Amortized Cost		Gains		Losses			Fair Value
Asset backed securities	$	891	$	1	$	(4	)	$	888
Corporate debt securities	961		1		(2		)	960
Other debt securities	127		—		(1		)	126
Equity securities	18		60		(2		)	76
Total	$	1,997	$	62	$	(9	)	$	2,050

AbbVie had no other-than-temporary impairments as of December 31, 2016. For the years ended December 31, 2016 and 2015, net realized gains were insignificant.

Concentrations of Risk

The company invests excess cash in time deposits, money market funds and debt securities to diversify the concentration of cash among different financial institutions. The company has established credit exposure limits and monitors concentrations of credit risk associated with financial institution deposits.

The functional currency of the company's Venezuela operations is the U.S. dollar due to the hyperinflationary status of the Venezuelan economy. At December 31, 2015, there were three legal exchange mechanisms administered by the Venezuelan government. These were the official rate of 6.3 Venezuelan bolivars (VEF) per U.S. dollar, the Supplementary System for the Administration of Foreign Currency (SICAD) rate of approximately 13.5 VEF per U.S. dollar and the Foreign Exchange Marginal System (SIMADI) rate of approximately 200. Effective March 10, 2016, the Venezuelan government devalued the official rate of 6.3 to 10 VEF per U.S. dollar, eliminated the SICAD rate and replaced SIMADI with a new exchange mechanism, Divisa Complementaria (DICOM). As of December 31, 2016, the DICOM rate was approximately 673 VEF per U.S. dollar.

During the first quarter of 2016, in consideration of declining economic conditions in Venezuela and a decline in transactions settled at the official rate, AbbVie determined that its net monetary assets denominated in the Venezuelan bolivar were no longer expected to be settled at the official rate of 10 VEF per U.S. dollar, but rather at the DICOM rate. Therefore, during the first quarter of 2016, AbbVie recorded a charge of $298 million to net foreign exchange loss to revalue its bolivar-denominated net monetary assets using the DICOM rate then in effect of approximately 270 VEF per U.S. dollar. As of December 31, 2016, AbbVie’s net monetary assets in Venezuela were insignificant.

AbbVie continues to do business with foreign governments in certain countries, including Greece, Portugal, Italy and Spain, which have historically experienced challenges in credit and economic conditions. Substantially all of AbbVie’s trade receivables in Greece, Portugal, Italy and Spain are with government health systems. Outstanding net governmental receivables in these countries totaled $244 million at December 31, 2016 and $525 million at December 31, 2015. The company also continues to do business with foreign governments in certain oil-exporting countries which have recently experienced a deterioration in economic conditions, including Saudi Arabia and Russia. Outstanding net governmental receivables were $122 million related to Saudi Arabia and $110 million related to Russia as of December 31, 2016. Due to oil market conditions in recent years, liquidity issues in certain countries may result in delays in the collection of receivables. Global economic conditions and customer-specific factors may require the company to periodically re-evaluate the collectability of its receivables and the company could potentially incur credit losses.

Of total net accounts receivable, three U.S. wholesalers accounted for 51% as of December 31, 2016 and 51% as of December 31, 2015 and substantially all of AbbVie's net revenues in the United States are to these three wholesalers.

HUMIRA (adalimumab) is AbbVie's single largest product and accounted for approximately 63% in 2016, 61% in 2015 and 63% in 2014 of AbbVie's total net revenues.

Post-Employment Benefits

12 Months Ended

Dec. 31, 2016

Postemployment Benefits [Abstract]

Post-Employment Benefits

AbbVie sponsors various pension and other post-employment benefit plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. In addition, AbbVie provides medical benefits, primarily to eligible retirees in the United States and Puerto Rico, through other post-retirement benefit plans. Net obligations for these plans have been reflected on the consolidated balance sheets as of December 31, 2016 and 2015.

AbbVie's principal domestic defined benefit plan is the AbbVie Pension Plan. AbbVie made voluntary contributions of $150 million in 2016, $150 million in 2015 and $370 million in 2014 to this plan. AbbVie also made a voluntary contribution of $150 million to this plan subsequent to December 31, 2016.

The benefit plan information in the table below pertains to the global AbbVie-sponsored defined benefit and other post-employment plans:



	Defined benefit plans						Other post-employment plans
as of and for the years ended December 31 (in millions)	2016			2015			2016			2015
Projected benefit obligations
Beginning of period	$	5,387		$	5,681		$	557		$	538
Service cost	210			227			25			25
Interest cost	201			219			24			23
Employee contributions	1			2			—			—
Actuarial loss (gain)	313			(467		)	33			(17		)
Benefits paid	(163		)	(158		)	(12		)	(11		)
Other, primarily foreign currency translation adjustments	(120		)	(117		)	—			(1		)
End of period	5,829			5,387			627			557
Fair value of plan assets
Beginning of period	4,174			4,173			—			—
Actual return (loss) on plan assets	383			(25		)	—			—
Company contributions	273			217			12			11
Employee contributions	1			2			—			—
Benefits paid	(163		)	(158		)	(12		)	(11		)
Other, primarily foreign currency translation adjustments	(96		)	(35		)	—			—
End of period	4,572			4,174			—			—
Funded status end of period	$	(1,257	)	$	(1,213	)	$	(627	)	$	(557	)

Amounts recognized on the consolidated balance sheets
Other assets	$	240		$	214		$	—		$	—
Accounts payable and accrued liabilities	(25		)	(24		)	(14		)	(11		)
Other long-term liabilities	(1,472		)	(1,403		)	(613		)	(546		)
Net obligation	$	(1,257	)	$	(1,213	)	$	(627	)	$	(557	)
Actuarial loss, net	$	2,118		$	1,939		$	179		$	154
Prior service cost (credit)	14			16			(37		)	(45		)
Accumulated other comprehensive loss	$	2,132		$	1,955		$	142		$	109

The projected benefit obligations (PBO) in the table above included $1.7 billion at December 31, 2016 and $1.5 billion at December 31, 2015, related to international defined benefit plans.

For plans reflected in the table above, the accumulated benefit obligations (ABO) were $5.3 billion at December 31, 2016 and $4.8 billion at December 31, 2015. For those plans reflected in the table above in which the ABO exceeded plan assets at December 31, 2016, the ABO was $3.2 billion, the PBO was $3.7 billion and aggregate plan assets were $2.2 billion.

Amounts Recognized in Other Comprehensive Loss

The following table summarizes the pre-tax gains and losses included in other comprehensive loss:



years ended December 31 (in millions)	2016			2015			2014
Defined benefit plans
Actuarial loss (gain)	$	284		$	(117	)	$	1,127
Prior service cost	—			—			1
Amortization of actuarial loss and prior service cost	(85		)	(127		)	(68		)
Foreign exchange gain	(22		)	(37		)	(41		)
Total pre-tax loss (gain) recognized in other comprehensive loss	$	177		$	(281	)	$	1,019
Other post-employment plans
Actuarial loss (gain)	$	33		$	(17	)	$	111
Prior service credit	—			—			(13		)
Amortization of actuarial loss and prior service cost (credit)	—			(2		)	3
Total pre-tax loss (gain) recognized in other comprehensive loss	$	33		$	(19	)	$	101

The pre-tax amount of actuarial loss and prior service cost included in AOCI at December 31, 2016 that is expected to be recognized in net periodic benefit cost in 2017 is $103 million for defined benefit plans and $3 million for other post-employment plans.

Net Periodic Benefit Cost



years ended December 31 (in millions)	2016			2015			2014
Defined benefit plans
Service cost	$	210		$	227		$	173
Interest cost	201			219			217
Expected return on plan assets	(354		)	(325		)	(302		)
Amortization of actuarial loss and prior service cost	85			127			68
Net periodic benefit cost	$	142		$	248		$	156
Other post-employment plans
Service cost	$	25		$	25		$	22
Interest cost	24			23			22
Amortization of actuarial loss (gain) and prior service cost (credit)	—			2			(2		)
Net periodic benefit cost	$	49		$	50		$	42

Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date



as of December 31	2016		2015
Defined benefit plans
Discount rate	3.9	%	4.4	%
Rate of compensation increases	4.4	%	4.4	%
Other post-employment plans
Discount rate	4.7	%	4.9	%

The assumptions used in calculating the December 31, 2016 measurement date benefit obligations will be used in the calculation of net periodic benefit cost in 2017.

Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost



years ended December 31	2016		2015		2014
Defined benefit plans
Discount rate for determining service cost	4.4	%	3.9	%	4.9	%
Discount rate for determining interest cost	4.0	%	3.9	%	4.9	%
Expected long-term rate of return on plan assets	7.9	%	7.8	%	7.9	%
Expected rate of change in compensation	4.4	%	4.4	%	5.0	%
Other post-employment plans
Discount rate for determining service cost	5.1	%	4.5	%	5.3	%
Discount rate for determining interest cost	4.3	%	4.5	%	5.3	%

Effective December 31, 2015, AbbVie elected to change the method it uses to estimate the service and interest cost components of net periodic benefit costs. Historically, AbbVie estimated these service and interest cost components of this expense utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. In late 2015, AbbVie elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. AbbVie elected to make this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. AbbVie has accounted for this change prospectively as a change in accounting estimate that is inseparable from a change in accounting principle. This change reduced AbbVie's net periodic benefit cost by approximately $41 million in 2016. This change had no effect on the 2015 or 2014 expense and did not affect the measurement of AbbVie's total benefit obligations.

For the December 31, 2016 post-retirement health care obligations remeasurement, the company assumed a 6.8 percent pre-65 (7.8 percent post-65) annual rate of increase in the per capita cost of covered health care benefits. The rate was assumed to decrease gradually to 4.5 percent in 2064 and remain at that level thereafter. For purposes of measuring the 2016 post-retirement health care costs, the company assumed a 7.3 percent pre-65 (8.3 percent post-65) annual rate of increase in the per capita cost of covered health care benefits. The rate was assumed to decrease gradually to 4.5 percent for 2064 and remain at that level thereafter.

Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. As of December 31, 2016, a 1 percentage point change in assumed health care cost trend rates would have the following effects:



	One percentage point
year ended December 31, 2016 (in millions) (brackets denote a reduction)	Increase		Decrease
Service cost and interest cost	$	11	$	(9	)
Projected benefit obligation	120		(95		)

Defined Benefit Pension Plan Assets



			Basis of fair value measurement
as of December 31 (in millions)	2016		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)	$	519	$	519	$	—	$	—
U.S. mid cap^(b)	63		63		—		—
International^(c)	97		97		—		—
Fixed income securities
U.S. government securities^(d)	94		—		94		—
Corporate debt instruments^(d)	243		162		81		—
Non-U.S. government securities^(d)	32		30		2		—
Other^(d)	184		179		5		—
Absolute return funds^(e)	228		3		225		—
Real assets	31		31		—		—
Other^(f)	61		61		—		—
Total	$	1,552	$	1,145	$	407	$	—
Total assets measured at NAV	3,020
Fair value of plan assets	$	4,572



			Basis of fair value measurement
as of December 31 (in millions)	2015		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)	$	542	$	542	$	—	$	—
U.S. mid cap^(b)	35		35		—		—
International^(c)	100		100		—		—
Fixed income securities
U.S. government securities^(d)	93		15		78		—
Corporate debt instruments^(d)	203		124		79		—
Non-U.S. government securities^(d)	35		33		2
Other^(d)	126		122		4		—
Absolute return funds^(e)	194		2		192		—
Real assets	8		8		—		—
Other^(f)	93		93		—		—
Total	$	1,429	$	1,074	$	355	$	—
Total assets measured at NAV	2,745
Fair value of plan assets	$	4,174


(a)	A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices.


(b)	A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices.


(c)	A mix of index funds and actively managed equity accounts that are benchmarked to various non-US equity indices in both developed and emerging markets.


(d)	Securities held by actively managed accounts, index funds and mutual funds.


(e)	Funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets.


(f)	Investments in cash and cash equivalents.

Equities and registered investment companies having quoted prices are valued at the published market prices. Fixed income securities that are valued using significant other observable inputs are quoted at prices obtained from independent financial service industry-recognized vendors. Investments held in pooled investment funds, common collective trusts or limited partnerships are valued at the net asset value (NAV) practical expedient to estimate fair value. The NAV is provided by the fund administrator and is based on the value of the underlying assets owned by the fund minus its liabilities.

The investment mix of equity securities, fixed income and other asset allocation strategies is based upon achieving a desired return, balancing higher return, more volatile equity securities and lower return, less volatile fixed income securities. Investment allocations are established for each plan and are generally made across a range of markets, industry sectors, capitalization sizes and in the case of fixed income securities, maturities and credit quality. The target investment allocations for the AbbVie Pension Plan is 35% in equity securities, 20% in fixed income securities and 45% in asset allocation strategies and other holdings. There are no known significant concentrations of risk in the plan assets of the AbbVie Pension Plan or any other plans' assets.

The plans' expected return on plan assets assumption is based on management's expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions.

Expected Defined Benefit and Other Post-Employment Plan Payments



years ending December 31 (in millions)	Defined benefit plans		Other post-employment plans
2017	$	174	$	14
2018	185		17
2019	199		20
2020	211		20
2021	226		22
2022 to 2026	1,351		145

The above table reflects total benefit payments expected to be paid to participants, which includes payments funded from both plan and company assets.

Defined Contribution Plan

AbbVie's principal defined contribution plan is the AbbVie Savings Plan. AbbVie recorded expense of $75 million in 2016, $73 million in 2015 and $67 million in 2014 related to this plan. AbbVie provides certain other post-employment benefits, primarily salary continuation arrangements, to qualifying employees and accrues for the related cost over the service lives of the employees.

Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Equity

Stock-Based Compensation

AbbVie grants stock-based awards to eligible employees pursuant to the AbbVie 2013 Incentive Stock Program (2013 ISP), which provides for several different forms of benefits, including nonqualified stock options, RSAs, RSUs and various performance-based awards. Under the 2013 ISP, 100 million shares of AbbVie common stock were reserved for issuance as awards to AbbVie employees. The 2013 ISP also facilitated the assumption of certain awards granted under Abbott’s incentive stock program, which were adjusted and converted into Abbott and AbbVie stock-based awards as a result of AbbVie's separation from Abbott.

Compensation expense for stock-based awards is measured based on the grant date fair value of the awards and the estimated number of awards that are expected to vest. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Compensation cost for stock-based awards is amortized over the service period, which could be shorter than the vesting period if an employee is retirement eligible. Retirement eligible employees generally are those who are age 55 or order and have at least ten years of service.

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



	Years ended December 31,
(in millions)	2016		2015		2014
Cost of products sold	$	22	$	21	$	16
Research and development	193		111		78
Selling, general and administrative	181		150		147
Pre-tax compensation expense	396		282		241
Tax benefit	104		89		73
After-tax compensation expense	$	292	$	193	$	168

Stock-based compensation expense for the year ended December 31, 2016 also included the post-combination impact related to Stemcentrx options. See Note 5 for additional information related to the Stemcentrx acquisition.

The realized excess tax benefits associated with stock-based compensation totaled $55 million in 2016, $61 million in 2015 and $56 million in 2014. These amounts were recorded in additional paid in capital and were presented in the consolidated statements of cash flows as an outflow in operating activities and an inflow in financing activities.

Stock Options

Stock options awarded pursuant to the 2013 ISP typically have a contractual term of 10 years and generally vest in one-third increments over a three-year period. The exercise price is equal to at least 100% of the market value on the date of grant. The fair value is determined using the Black-Scholes model. The weighted-average grant-date fair values of stock options granted were $9.29 in 2016, $9.96 in 2015 and $9.83 in 2014.

The following table summarizes AbbVie stock option activity in 2016:



(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, 2015	23,569		$	30.64	3.0	$	674
Granted	1,143		54.99
Granted in acquisition	1,076		12.85
Exercised	(9,720	)	26.71
Lapsed	(106	)	23.62
Outstanding at December 31, 2016	15,962		$	33.63	3.7	$	463
Exercisable at December 31, 2016	12,945		$	30.76	2.5	$	412

The total intrinsic value of options exercised was $325 million in 2016, $216 million in 2015 and $253 million in 2014. The total fair value of options vested during 2016 was $28 million. On June 1, 2016, AbbVie issued stock options for 1.1 million AbbVie shares to holders of unvested Stemcentrx options as a result of the conversion of such options in connection with the Stemcentrx acquisition. These options were fair-valued using a lattice valuation model. See Note 5 for additional information related to the Stemcentrx acquisition.

As of December 31, 2016, $34 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

RSUs awarded to employees other than senior executives and other key employees pursuant to the 2013 ISP generally vest in one-third increments over a three year period. Recipients of these RSUs are entitled to receive dividend equivalents as dividends are declared and paid during the RSU vesting period.

The majority of the equity awards AbbVie grants to its senior executives and other key employees under the 2013 ISP are performance-based. Such awards granted before 2016 consisted of RSAs (or RSUs to the extent necessary for global employees) that generally vest in one-third increments over a three-to-five year period, with vesting contingent upon AbbVie achieving a minimum annual return on equity (ROE). Recipients are entitled to receive dividends (or dividend equivalents for RSUs) as dividends are declared and paid during the award vesting period.

In 2016, AbbVie redesigned certain aspects of its long-term incentive program. As a result, equity awards granted in 2016 to senior executives and other key employees consist of a combination of performance-vested RSUs and performance shares. The performance-vested RSUs have the potential to vest in one-third increments during a three-year performance period based on AbbVie’s ROE relative to a defined peer group of pharmaceutical, biotech and life sciences companies. The recipient may receive one share of AbbVie common stock for each vested award. The performance shares have the potential to vest over a three-year performance period and may be earned based on AbbVie’s EPS achievement and AbbVie’s total stockholder return (TSR) (a market condition) relative to a defined peer group of pharmaceutical, biotech and life sciences companies. Dividend equivalents on performance-vested RSUs and performance shares accrue during the performance period and are payable at vesting only to the extent that shares are earned.

The weighted-average grant-date fair value of RSAs, RSUs and performance shares generally is determined based on the number of shares/units granted and the quoted price of AbbVie’s common stock on the date of grant. The weighted-average grant-date fair values of performance shares with a TSR market condition are determined using the Monte Carlo simulation model.

The following table summarizes AbbVie RSA, RSU and performance share activity for 2016:



(share units in thousands)	Share units		Weighted-average grant date fair value
Outstanding at December 31, 2015	12,490		$	51.66
Granted	5,561		55.28
Vested	(6,559	)	46.24
Forfeited	(777	)	57.00
Outstanding at December 31, 2016	10,715		$	56.47

The fair market value of RSAs, RSUs and performance shares (as applicable) vested was $362 million in 2016, $335 million in 2015 and $338 million in 2014.

As of December 31, 2016, $228 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 for the years ended December 31, 2016 and 2015:



2016				2015
Date Declared	Payment Date	Dividend Per Share		Date Declared	Payment Date	Dividend Per Share
10/28/16	02/15/17	$	0.64	10/30/15	02/16/16	$	0.57
09/09/16	11/15/16	$	0.57	09/11/15	11/16/15	$	0.51
06/16/16	08/15/16	$	0.57	06/18/15	08/14/15	$	0.51
02/18/16	05/16/16	$	0.57	02/19/15	05/15/15	$	0.51

Stock Repurchase Program

AbbVie's board of directors authorized increases to its existing stock repurchase program of $4.0 billion in April 2016 in anticipation of executing an ASR in connection with the Stemcentrx acquisition and of $5.0 billion in March 2015 in anticipation of executing an ASR in connection with the Pharmacyclics acquisition. The stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions at management’s direction depending on the company’s cash flows, net debt level and market conditions. The program has no time limit and can be discontinued at any time. Shares repurchased under these programs are recorded at acquisition cost, including related expenses and are available for general corporate purposes. The following table shows details about AbbVie’s ASR transactions:



(shares in millions, repurchase amounts in billions)
Execution date	Purchase amount		Initial delivery of shares	Final delivery of shares	Related acquisition
05/26/15	$	5.0	68.1	5.0	Pharmacyclics
06/01/16	3.8		54.4	5.4	Stemcentrx

On June 2, 2016, the initial 54.4 million shares of AbbVie’s common stock related to the 2016 ASR were received. The 2016 ASR transaction was completed on September 28, 2016, resulting in the receipt of an additional 5.4 million shares. AbbVie recorded the aggregate $3.8 billion purchase price of the 2016 ASR as a reduction to common stock held in treasury on the consolidated balance sheet as of December 31, 2016.

In addition to the ASRs, AbbVie repurchased on the open market approximately 34 million shares for $2.1 billion in 2016, 46 million shares for $2.8 billion in 2015 and 9 million shares for $550 million in 2014. AbbVie's remaining share repurchase authorization was $36 million as of December 31, 2016. On February 16, 2017, AbbVie's board of directors authorized a $5.0 billion increase to AbbVie's existing stock repurchase program. The stock repurchase authorization permits shares to be repurchased in open market or private transactions, has no time limit and may be discontinued at any time.

Accumulated Other Comprehensive Loss

The following table summarizes the changes in each component of AOCI, net of tax, for 2016, 2015 and 2014:



(in millions) (brackets denote losses)	Foreign currency translation adjustments			Net investment hedging activities		Pension and post- employment benefits			Unrealized gains (losses) on marketable securities			Cash flow hedging activities			Total
Balance as of December 31, 2013	$	470		$	—	$	(827	)	$	2		$	(87	)	$	(442	)
Other comprehensive income (loss) before reclassifications	(1,073		)	—		(827		)	1			187			(1,712		)
Net losses reclassified from accumulated other comprehensive loss	—			—		46			—			77			123
Net current-period other comprehensive income (loss)	(1,073		)	—		(781		)	1			264			(1,589		)
Balance as of December 31, 2014	(603		)	—		(1,608		)	3			177			(2,031		)
Other comprehensive income (loss) before reclassifications	(667		)	—		147			48			122			(350		)
Net losses (gains) reclassified from accumulated other comprehensive loss	—			—		83			(4		)	(259		)	(180		)
Net current-period other comprehensive income (loss)	(667		)	—		230			44			(137		)	(530		)
Balance as of December 31, 2015	(1,270		)	—		(1,378		)	47			40			(2,561		)
Other comprehensive income (loss) before reclassifications	(165		)	140		(194		)	7			160			(52		)
Net losses (gains) reclassified from accumulated other comprehensive loss	—			—		59			(8		)	(24		)	27
Net current-period other comprehensive income (loss)	(165		)	140		(135		)	(1		)	136			(25		)
Balance as of December 31, 2016	$	(1,435	)	$	140	$	(1,513	)	$	46		$	176		$	(2,586	)

Other comprehensive loss in 2016 included foreign currency translation adjustments totaling a loss of $165 million, which was principally due to the impact of the weakening of the Euro on the translation of the company’s Euro -denominated assets. Other comprehensive loss in 2015 included foreign currency translation adjustments totaling a loss of $667 million, which was principally driven by the impact of the weakening of the Euro on the translation of the company's Euro-denominated assets. Other comprehensive loss in 2014 included foreign currency translation adjustments totaling a loss of $1.1 billion, which was principally driven by (i) the impact of the substantial weakening of the Euro in 2014 on the translation of the company's Euro-denominated assets and (ii) the weakening of foreign currencies in combination with an increased concentration of cash denominated in foreign currencies accumulated in anticipation of the terminated proposed combination with Shire.

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



years ended December 31 (in millions) (brackets denote gains)	2016			2015			2014
Pension and post-employment benefits
Amortization of actuarial losses and other^(a)	$	85		$	129		$	65
Tax benefit	(26		)	(46		)	(19		)
Total reclassifications, net of tax	$	59		$	83		$	46

Cash flow hedging activities
Losses (gains) on designated cash flow hedges^(b)	$	(20	)	$	(265	)	$	79
Tax expense (benefit)	(4		)	6			(2		)
Total reclassifications, net of tax	$	(24	)	$	(259	)	$	77


(a)	Amounts are included in the computation of net periodic benefit cost (see Note 11).


(b)	Amounts are included in cost of products sold (see Note 10).

Other

In addition to common stock, AbbVie's authorized capital includes 200 million shares of preferred stock, par value $0.01. As of December 31, 2016, no shares of preferred stock were issued or outstanding.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Earnings Before Income Tax Expense



years ended December 31 (in millions)	2016			2015			2014
Domestic	$	(1,651	)	$	(1,038	)	$	(3,245	)
Foreign	9,535			7,683			5,614
Total earnings before income tax expense	$	7,884		$	6,645		$	2,369

The domestic loss before income taxes in 2014 was driven by transaction and financing-related costs associated with the terminated proposed combination with Shire. See Note 5 for additional information.

Income Tax Expense



years ended December 31 (in millions)	2016			2015		2014
Current
Domestic	$	2,229		$	1,036	$	634
Foreign	498			313		341
Total current taxes	$	2,727		$	1,349	$	975
Deferred
Domestic	$	(792	)	$	141	$	(301	)
Foreign	(4		)	11		(79		)
Total deferred taxes	$	(796	)	$	152	$	(380	)
Total income tax expense	$	1,931		$	1,501	$	595

Effective Tax Rate Reconciliation



years ended December 31	2016		2015		2014
Statutory tax rate	35.0	%	35.0	%	35.0	%
Effect of foreign operations	(10.3	)	(9.4	)	(11.3	)
U.S. tax credits	(4.4	)	(4.5	)	(8.9	)
Branded prescription drug fee	0.5		0.7		3.7
Tax law change related to foreign currency	2.4		—		—
Valuation allowances	—		(1.6	)	3.6
All other, net	1.3		2.4		3.0
Effective tax rate	24.5	%	22.6	%	25.1	%

The effective tax rate fluctuates year to year due to the allocation of the company's taxable earnings among jurisdictions, as well as certain discrete factors and events in each year, including acquisitions and collaborations. The effective tax rates in 2016, 2015 and 2014 differed from the statutory tax rate principally due to the benefit from foreign operations which reflects the impact of lower income tax rates in locations outside the United States, tax exemptions and incentives in Puerto Rico and other foreign tax jurisdictions, business development activities and the cost of repatriation decisions. The effective tax rates for these periods also reflected the benefit from U.S. tax credits principally related to research and development credits, the orphan drug tax credit and Puerto Rico excise tax credits. The Puerto Rico excise tax credits relate to legislation enacted by Puerto Rico that assesses an excise tax on certain products manufactured in Puerto Rico. The tax is levied on gross inventory purchases from entities in Puerto Rico and is included in cost of products sold in the consolidated statements of earnings. The majority of the tax is creditable for U.S. income tax purposes.

The effective tax rate in 2016 included additional expense of $187 million related to the recognition of the tax effect of regulations issued by the Internal Revenue Service on December 7, 2016 that changed the determination of the US taxability of foreign currency gains and losses related to certain foreign operations.

The effective income tax rate included a tax benefit of $103 million in 2015 from a reduction of state valuation allowances.

The effective tax rate in 2014 included additional expenses of $129 million related to the Branded Prescription Drug Fee, which is non-deductible and state valuation allowances of $129 million. On July 28, 2014, the Internal Revenue Service issued final rules and regulations for the Branded Prescription Drug Fee, an annual non-tax-deductible fee payable to the federal government under the Affordable Care Act based on an allocation of a company's market share for branded prescription drugs sold to certain government programs in the prior year. The final rules accelerated the expense recognition criteria for the fee obligation from the year in which the fee is paid, to the year in which the market share used to allocate the fee is determined. This change required AbbVie and other industry participants to recognize an additional year of expense in 2014.

Deferred Tax Assets and Liabilities



as of December 31 (in millions)	2016			2015
Deferred tax assets
Compensation and employee benefits	$	665		$	584
Accruals and reserves	378			368
Chargebacks and rebates	473			472
Deferred revenue	391			372
Depreciation	24			45
Net operating losses and other credit carryforwards	151			282
Other	71			316
Total deferred tax assets	2,153			2,439
Valuation allowances	(76		)	(70		)
Total net deferred tax assets	2,077			2,369
Deferred tax liabilities
Excess of book basis over tax basis of intangible assets	(5,375		)	(4,459		)
Excess of book basis over tax basis in investments	(3,367		)	(2,958		)
Total deferred tax liabilities	(8,742		)	(7,417		)
Net deferred tax liabilities	$	(6,665	)	$	(5,048	)

The increases in the deferred tax liabilities were primarily due to the acquisition of Stemcentrx in which AbbVie recorded the excess of book basis over tax basis of intangible assets.

As of December 31, 2016, gross state net operating losses were $847 million and tax credit carryforwards were $188 million. The state tax carryforwards expire between 2017 and 2036. As of December 31, 2016, foreign net operating loss carryforwards were $198 million. Foreign net operating loss carryforwards of $166 million expire between 2017 and 2026 and the remaining do not have an expiration period.

The company had valuation allowances of $76 million as of December 31, 2016 and $70 million as of December 31, 2015. These were principally related to state net operating losses and credit carryforwards that are not expected to be realized.

Deferred income taxes have not been provided on approximately $29 billion of the undistributed earnings of foreign subsidiaries as these earnings have been indefinitely reinvested for continued use in foreign operations. Due to the complexities in tax laws and assumptions that would have to be made, it is not practicable to estimate the amount of income taxes that would be due if these earnings were distributed.

Unrecognized Tax Benefits



years ended December 31 (in millions)	2016			2015			2014
Balance as of January 1	$	954		$	421		$	247
Increase due to current year tax positions	118			187			115
Increase due to prior year tax positions	111			369			67
Decrease due to prior year tax positions	(7		)	(15		)	(6		)
Lapse of statutes of limitations	(8		)	(8		)	(2		)
Balance as of December 31	$	1,168		$	954		$	421

AbbVie and Abbott entered into a tax sharing agreement, effective on the date of separation, which provides that Abbott is liable for and has indemnified AbbVie against all income tax liabilities for periods prior to the separation. AbbVie will be responsible for unrecognized tax benefits and related interest and penalties for periods after separation or in instances where an existing entity was transferred to AbbVie upon separation.

If recognized, the net amount of potential tax benefits that would impact the company's effective tax rate is $1.1 billion in 2016 and $901 million in 2015. Of the unrecognized tax benefits recorded in the table above as of December 31, 2016, AbbVie would be indemnified for approximately $96 million. The "Increase due to prior year tax positions" in the table above includes amounts relating to federal, state and international items as well as prior positions acquired through business development activities during the year. Uncertain tax positions are generally included as a long-term liability on the consolidated balance sheets.

AbbVie recognizes interest and penalties related to income tax matters in income tax expense in the consolidated statements of earnings. AbbVie recognized gross income tax expense of $35 million in 2016, $13 million in 2015 and $10 million in 2014, for interest and penalties related to income tax matters. AbbVie had an accrual for the payment of gross interest and penalties of $112 million at December 31, 2016, $83 million at December 31, 2015 and $25 million at December 31, 2014.

The company is routinely audited by the tax authorities in significant jurisdictions and a number of audits are currently underway. It is reasonably possible during the next twelve months that uncertain tax positions may be settled, which could result in a decrease in the gross amount of unrecognized tax benefits. Due to the potential for resolution of federal, state and foreign examinations and the expiration of various statutes of limitation, the company's gross unrecognized tax benefits balance may change within the next twelve months up to $201 million. All significant federal, state, local and international matters have been concluded for years through 2005. The company believes adequate provision has been made for all income tax uncertainties.

Legal Proceedings and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings and Contingencies

AbbVie is subject to contingencies, such as various claims, legal proceedings and investigations regarding product liability, intellectual property, commercial, securities and other matters that arise in the normal course of business. Loss contingency provisions are recorded for probable losses at management's best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount within a probable range is recorded. The recorded accrual balance for litigation was approximately $225 million as of December 31, 2016 and approximately $170 million at December 31, 2015. Initiation of new legal proceedings or a change in the status of existing proceedings may result in a change in the estimated loss accrued by AbbVie. While it is not feasible to predict the outcome of all proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on AbbVie's consolidated financial position, results of operations or cash flows.

Subject to certain exceptions specified in the separation agreement by and between Abbott and AbbVie, AbbVie assumed the liability for, and control of, all pending and threatened legal matters related to its business, including liabilities for any claims or legal proceedings related to products that had been part of its business, but were discontinued prior to the distribution, as well as assumed or retained liabilities, and will indemnify Abbott for any liability arising out of or resulting from such assumed legal matters.

Several pending lawsuits filed against Unimed Pharmaceuticals, Inc., Solvay Pharmaceuticals, Inc. (a company Abbott acquired in February 2010 and now known as AbbVie Products LLC) and others are consolidated for pre-trial purposes in the United States District Court for the Northern District of Georgia under the Multi-District Litigation (MDL) Rules as In re: AndroGel Antitrust Litigation, MDL No. 2084. These cases, brought by private plaintiffs and the Federal Trade Commission (FTC), generally allege Solvay's patent litigation involving AndroGel was sham litigation and the 2006 patent litigation settlement agreements and related agreements with three generic companies violate federal antitrust laws. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys' fees. These cases include: (a) four individual plaintiff lawsuits; (b) three purported class actions; and (c) Federal Trade Commission v. Actavis, Inc. et al. Following the district court's dismissal of all plaintiffs' claims, appellate proceedings led to the reinstatement of the claims regarding the patent litigation settlements, which are proceeding in discovery in the district court. The Attorney General of the State of Alaska has served AbbVie with a Civil Investigative Demand, primarily seeking documents that AbbVie produced in these lawsuits.

Lawsuits are pending against AbbVie and others generally alleging that the 2005 patent litigation settlement involving Niaspan entered into between Kos Pharmaceuticals, Inc. (a company acquired by Abbott in 2006 and presently a subsidiary of AbbVie) and a generic company violates federal and state antitrust laws and state unfair and deceptive trade practices and unjust enrichment laws. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys' fees. The lawsuits consist of four individual plaintiff lawsuits and two consolidated purported class actions: one brought by three named direct purchasers of Niaspan and the other brought by ten named end-payor purchasers of Niaspan. The cases are consolidated for pre-trial proceedings in the United States District Court for the Eastern District of Pennsylvania under the MDL Rules as In re: Niaspan Antitrust Litigation, MDL No. 2460. The office of the Attorney General of the State of Alaska has served AbbVie with a Civil Investigative Demand, primarily seeking documents that AbbVie produced in this lawsuit. In October 2016, the State of California filed a lawsuit regarding the Niaspan patent litigation settlement in Orange County Superior Court, asserting a claim under the unfair competition provision of the California Business and Professions Code seeking injunctive relief, restitution, civil penalties and attorneys' fees.

In November 2007, GlaxoSmithKline plc (GSK) filed a lawsuit against Abbott in the United States District Court for the Northern District of California alleging that Abbott violated federal antitrust and various state laws in connection with the 2003 Norvir re-pricing. In March 2011, a jury found that Abbott did not violate antitrust laws, but breached its license agreement with GSK. In January 2014, the United States Court of Appeals for the Ninth Circuit reversed this verdict and remanded the case for a new trial due to the alleged improper exclusion of a potential juror. The case was returned to the district court in California, but after GSK dismissed its federal antitrust claims, the case was transferred in April 2015 to the United States District Court for the Middle District of North Carolina, where pre-trial proceedings are pending. AbbVie assumed the liability for and control of this proceeding in connection with its separation from Abbott.

In September 2014, the FTC filed suit in the United States District Court for the Eastern District of Pennsylvania against AbbVie and others, alleging that the 2011 patent litigation with two generic companies regarding AndroGel was sham litigation and the patent litigation settlement with one of those generic companies violates federal antitrust laws. The FTC's complaint seeks monetary damages and injunctive relief. In May 2015, the court dismissed the FTC's claim regarding the patent litigation settlement. The office of the Attorney General of the State of Alaska has served AbbVie with a Civil Investigative Demand, primarily seeking documents that AbbVie produced in this lawsuit.

In March 2015, the State of Louisiana filed a lawsuit, State of Louisiana v. Fournier Industrie et Sante, et al., against AbbVie, Abbott and affiliated Abbott entities in Louisiana state court. Plaintiff alleges that patent applications and patent litigation filed and other alleged conduct from the early 2000's and before related to the drug TriCor violated Louisiana State antitrust and unfair trade practices laws. The lawsuit seeks monetary damages and attorneys' fees. In August 2015, the court dismissed the case as time-barred. In December 2016, the appellate court for the state’s appeal remanded for the trial court to determine whether the state is a proper party in interest.

In August 2013, a putative class action lawsuit, Sidney Hillman Health Center of Rochester, et al. v. AbbVie Inc., et al., was filed against AbbVie in the United States District Court for the Northern District of Illinois by three healthcare benefit providers alleging violations of Federal Racketeer Influenced and Corrupt Organizations (RICO) statutes and state deceptive business practice and unjust enrichment laws in connection with reimbursements for certain uses of Depakote from 1998 to 2012. Plaintiffs seek monetary damages and/or equitable relief and attorneys' fees. In June 2016, the court granted AbbVie’s motion to dismiss, without prejudice, and the plaintiffs have filed an amended complaint.

In November 2014, a putative class action lawsuit, Medical Mutual of Ohio v. AbbVie Inc., et al., was filed against several manufacturers of testosterone replacement therapies (TRTs), including AbbVie, in the United States District Court for the Northern District of Illinois on behalf of all insurance companies, health benefit providers and other third party payors who paid for TRTs, including AndroGel. The claims asserted include violations of the federal RICO Act and state consumer fraud and deceptive trade practices laws. The complaint seeks monetary damages and injunctive relief. A similar lawsuit, Allied Services Division Welfare Fund v. AbbVie Inc., et al., was filed in the same court in October 2015 on behalf of the same putative class members and a putative class of consumers.

Product liability cases are pending in which plaintiffs generally allege that AbbVie and other manufacturers of TRTs did not adequately warn about risks of certain injuries, primarily heart attacks, strokes and blood clots. Approximately 3,941 claims are consolidated for pre-trial purposes in the United States District Court for the Northern District of Illinois under the MDL Rules as In re: Testosterone Replacement Therapy Products Liability Litigation, MDL No. 2545. Approximately 217 claims are pending in various state courts. Plaintiffs seek compensatory and punitive damages.

Product liability cases are pending in which plaintiffs generally allege that AbbVie did not adequately warn about risk of certain injuries, primarily various birth defects, arising from use of Depakote. Over ninety percent of the approximately 698 claims are pending in the United States District Court for the Southern District of Illinois, and the rest are pending in various other federal and state courts. Plaintiffs seek compensatory and punitive damages.

In November 2014, five individuals filed a putative class action lawsuit on behalf of purchasers and sellers of certain Shire plc (Shire) securities between June 20 and October 14, 2014, against AbbVie and its chief executive officer in the United States District Court for the Northern District of Illinois alleging that the defendants made and/or are responsible for material misstatements in violation of federal securities laws in connection with AbbVie's proposed transaction with Shire.

In June 2016, a lawsuit, Elliott Associates, L.P., et al. v. AbbVie Inc., was filed by five investment funds against AbbVie in the Cook County, Illinois Circuit Court alleging that AbbVie made misrepresentations and omissions in connection with its proposed transaction with Shire. Plaintiffs seek compensatory and punitive damages.

Beginning in May 2016, the Patent Trial & Appeal Board of the U.S. Patent & Trademark Office (PTO) instituted five inter partes review proceedings brought by Coherus Biosciences and Boehringer Ingelheim related to three AbbVie patents covering methods of treatment of rheumatoid arthritis using adalimumab. In these proceedings, the PTO will review the validity of the patents.

AbbVie is seeking to enforce certain patent rights related to adalimumab (a drug AbbVie sells under the trademark HUMIRA®). In a case filed in United States District Court for the District of Delaware in August 2016, AbbVie alleges that Amgen Inc.’s and Amgen Manufacturing, Limited’s proposed biosimilar adalimumab product infringes certain AbbVie patents. AbbVie seeks declaratory and injunctive relief.

Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Area Information

AbbVie operates in one business segment—pharmaceutical products. Substantially all of AbbVie's net revenues in the United States are to three wholesalers. Outside the United States, products are sold primarily to health care providers or through distributors, depending on the market served. The following tables detail AbbVie's worldwide net revenues:



years ended December 31 (in millions)	2016		2015		2014
HUMIRA	$	16,078	$	14,012	$	12,543
IMBRUVICA	1,832		754		—
VIEKIRA	1,522		1,639		48
Lupron	821		826		778
Synagis	730		740		835
Synthroid	763		755		709
Creon	730		632		516
AndroGel	675		694		934
Kaletra	549		700		870
Sevoflurane	428		474		550
Duodopa	293		231		220
All other	1,217		1,402		1,957
Total net revenues	$	25,638	$	22,859	$	19,960

Net revenues to external customers by geographic area, based on product shipment destination, were as follows:



years ended December 31 (in millions)	2016		2015		2014
United States	$	15,947	$	13,561	$	10,845
Germany	1,104		1,082		1,035
United Kingdom	776		688		722
Japan	770		599		581
France	713		597		584
Canada	624		551		551
Spain	589		618		534
Italy	523		452		432
Brazil	355		376		435
The Netherlands	352		334		345
All other countries	3,885		4,001		3,896
Total net revenues	$	25,638	$	22,859	$	19,960

Long-lived assets, primarily net property and equipment, by geographic area were as follows:



years ended December 31 (in millions)	2016		2015
United States and Puerto Rico	$	1,822	$	1,868
Europe	504		513
All other	278		184
Total long-lived assets	$	2,604	$	2,565

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (unaudited)



(in millions except per share data)	2016		2015
First Quarter
Net revenues	$	5,958	$	5,040
Gross margin	4,589		4,098
Net earnings^(a)	1,354		1,022
Basic earnings per share	$	0.83	$	0.64
Diluted earnings per share	$	0.83	$	0.63
Cash dividends declared per common share	$	0.57	$	0.51
Second Quarter
Net revenues	$	6,452	$	5,475
Gross margin	5,047		4,559
Net earnings^(b)	1,610		1,366
Basic earnings per share	$	0.99	$	0.84
Diluted earnings per share	$	0.98	$	0.83
Cash dividends declared per common share	$	0.57	$	0.51
Third Quarter
Net revenues	$	6,432	$	5,944
Gross margin	4,928		4,777
Net earnings^(c)	1,598		1,239
Basic earnings per share	$	0.97	$	0.75
Diluted earnings per share	$	0.97	$	0.74
Cash dividends declared per common share	$	0.57	$	0.51
Fourth Quarter
Net revenues	$	6,796	$	6,400
Gross margin	5,241		4,925
Net earnings^(d)	1,391		1,517
Basic earnings per share	$	0.86	$	0.93
Diluted earnings per share	$	0.85	$	0.92
Cash dividends declared per common share	$	0.64	$	0.57

(a)

Results for the first quarter of 2016 included a net foreign exchange loss of $298 million relating to the devaluation of AbbVie’s net monetary assets denominated in the Venezuelan bolivar. Results for the first quarter of 2015 included after-tax foreign exchange losses of $170 million related to the liquidation in 2015 of remaining foreign currency positions related to the terminated proposed combination with Shire in 2014, a $100 million after-tax charge as a result of entering into an exclusive worldwide license agreement with C₂N and after-tax costs of $41 million incurred in connection with the with the acquisition of Pharmacyclics.

(b)

Second quarter results in 2016 included after-tax costs totaling $122 million relating to the acquisition of Stemcentrx and BI compounds as well as the amortization of the acquisition date fair value step-up for inventory related to the acquisition of Pharmacyclics. Second quarter results for 2015 included after-tax costs totaling $215 million incurred in connection with the acquisition and integration of Pharmacyclics.

(c)

Third quarter results in 2016 included after-tax costs totaling $104 million relating to the change in fair value of contingent consideration. Results for the third quarter of 2015 included a $350 million after-tax charge related to the purchase of a rare pediatric disease PRV from a third party, after after-tax costs totaling $85 million incurred in connection with the acquisition and integration of Pharmacyclics and an $83 million after-tax charge due to the achievement of a development milestone under the global collaboration with Infinity.

(d)

Fourth quarter results in 2016 included after-tax costs totaling $187 million associated with a tax law change for regulations issued in the fourth quarter of 2016 that revised the treatment of foreign currency translation gains and losses for certain operations and included after-tax costs totaling $85 million relating to the change in fair value of contingent consideration. Fourth quarter results for 2015 included after-tax costs totaling $68 million incurred in connection with the acquisition and integration of Pharmacyclics and after-tax charges of $101 million to increase the company's litigation reserves.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for rebates, pension and post-employment benefits, income taxes, litigation, valuation of intangible assets and goodwill, contingent consideration liabilities, financial instruments and inventory and accounts receivable exposures.
Basis of Consolidation	Basis of Consolidation The consolidated financial statements as of and for the years ended December 31, 2016 and 2015 include the accounts of AbbVie and all of its subsidiaries in which a controlling interest is maintained. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, where AbbVie is determined to be the primary beneficiary. Investments in companies over which AbbVie has a significant influence but not a controlling interest are accounted for using the equity method with AbbVie's share of earnings or losses reported in other expense (income), net in the consolidated statements of earnings. All other investments are generally accounted for using the cost method. Intercompany balances and transactions are eliminated. Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period presentation.
Revenue Recognition	Revenue Recognition AbbVie recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability of the sales price is reasonably assured. Revenue from product sales is recognized when title and risk of loss have passed to the customer. Provisions for discounts, rebates, sales incentives to customers, returns and other adjustments are provided for in the period the related revenues are recorded. Rebate amounts are typically based upon the volume of purchases using contractual or statutory prices, which may vary by product and by payer. For each type of rebate, the factors used in the calculations of the accrual include the identification of the products subject to the rebate, the applicable price terms and the estimated lag time between sale and payment of the rebate, which can be significant. Sales incentives to customers are insignificant. Historical data is readily available and reliable and is used for estimating the amount of the reduction in gross revenues. Revenue from the launch of a new product, from an improved version of an existing product, or for shipments in excess of a customer's normal requirements are recorded when the conditions noted above are met. In those situations, management records a returns reserve for such revenue, if necessary. Sales of product rights for marketable products are recorded as revenue upon disposition of the rights.
Research and Development Expenses	Research and Development Expenses Internal research and development (R&D) costs are expensed as incurred. Clinical trial costs incurred by third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development collaborations for pre-commercialization milestones, the milestone payment obligations are expensed when the milestone results are achieved. Payments made to third parties subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the remaining useful life of the related product.
Collaborations and Other Arrangements	Collaborations and Other Arrangements The company enters into collaborative agreements with third parties to develop and commercialize drug candidates. Collaborative activities may include joint research and development and commercialization of new products. AbbVie generally receives certain licensing rights under these arrangements. These collaborations often require upfront payments and may include additional milestone, research and development cost sharing, royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development and commercialization. Upfront payments associated with collaborative arrangements during the development stage are expensed to acquired in-process research and development (IPR&D) expenses in the consolidated statements of earnings. Subsequent payments made to the partner for the achievement of milestones during the development stage are expensed to R&D expense in the consolidated statements of earnings when the milestone is achieved. Milestone payments made to the partner subsequent to regulatory approval are capitalized as intangible assets and amortized to cost of products sold over the estimated useful life of the related asset. Royalties are expensed to cost of products sold in the consolidated statements of earnings when incurred.
Advertising	Advertising Costs associated with advertising are expensed as incurred and are included in SG&A expenses in the consolidated statements of earnings.
Pension and Other Post-Employment Benefits	Pension and Other Post-Employment Benefits AbbVie records annual expenses relating to its defined benefit pension and other post-employment plans based on calculations which utilize various actuarial assumptions, including discount rates, rates of return on assets, compensation increases, turnover rates and health care cost trend rates. AbbVie reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. Actuarial gains and losses are deferred in accumulated other comprehensive loss (AOCI), net of tax and are amortized over the remaining service attribution periods of the employees under the corridor method. Differences between the expected long-term return on plan assets and the actual annual return are amortized to net periodic benefit cost over a five-year period.
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method. Provisions for federal, state and foreign income taxes are calculated on reported pretax earnings based on current tax laws. Deferred taxes are provided using enacted tax rates on the future tax consequences of temporary differences, which are the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and the tax benefits of carryforwards. A valuation allowance is established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized.
Cash and Equivalents	Cash and Equivalents Cash and equivalents include money market funds and time deposits with original maturities of three months or less.
Investments	Investments Investments consist primarily of time deposits, marketable debt securities, held-to-maturity debt securities and equity securities. Investments in marketable securities are classified as available-for-sale and are recorded at fair value with any unrealized holding gains or losses, net of tax, included in AOCI on the consolidated balance sheets. Investments in equity securities that are not traded on public stock exchanges and held-to-maturity debt securities are recorded at cost. AbbVie periodically assesses its investment securities for other-than-temporary impairment losses. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below the cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security, intent to sell, or whether AbbVie will more likely than not be required to sell the security before recovery of its amortized cost basis. AbbVie also considers industry factors and general market trends. When AbbVie determines that an other than temporary decline has occurred, a cost basis investment is written down with a charge to other expense (income), net in the consolidated statements of earnings and an available-for-sale investment's unrealized loss is reclassified from AOCI to other expense (income), net in the consolidated statements of earnings. Realized gains and losses on sales of investments are computed using the first-in, first-out method adjusted for any other-than-temporary declines in fair value that were recorded in net earnings.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at their net realizable value. The allowance against gross accounts receivable reflects the best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. Accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted.
Inventories	Inventories Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs.
Property and Equipment	Depreciation for property and equipment is recorded on a straight-line basis over the estimated useful lives of the assets. The estimated useful life for buildings ranges from 10 to 50 years. Buildings include leasehold improvements which are amortized over the life of the related facility lease (including any renewal periods, if appropriate) or the asset, whichever is shorter. The estimated useful life for equipment ranges from 3 to 20 years. Equipment includes certain computer software and software development costs incurred in connection with developing or obtaining software for internal use and is amortized over 3 to 10 years.
Litigation and Contingencies	Litigation and Contingencies Loss contingency provisions are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. When a best estimate cannot be made, the minimum loss contingency amount in a probable range is recorded. Legal fees are expensed as incurred. AbbVie accrues for product liability claims, on an undiscounted basis. The liabilities are evaluated quarterly and adjusted if necessary as additional information becomes available. Receivables for insurance recoveries, if any, for product liability claims are recorded as assets, on an undiscounted basis, when it is probable that a recovery will be realized.
Business Combinations	Business Combinations AbbVie utilizes the acquisition method of accounting for business combinations. This method requires, among other things, that results of operations of acquired companies are included in AbbVie's results of operations beginning on the respective acquisition dates and that assets acquired and liabilities assumed are recognized at fair value as of the acquisition date. Any excess of the fair value of consideration transferred over the fair values of the net assets acquired is recognized as goodwill. Contingent consideration liabilities are recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liabilities are recognized in other expense (income), net in the consolidated statements of earnings. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time generally not to exceed twelve months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow model. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, the cost of capital and terminal values of market participants. Definite-lived intangibles are amortized over their estimated useful lives using the estimated pattern of economic benefit. AbbVie reviews the recoverability of definite-lived intangible assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. AbbVie first compares the projected undiscounted cash flows to be generated by the asset to its carrying value. If the undiscounted cash flows of an intangible asset are less than the carrying value, the intangible asset is written down to its fair value. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest level for which cash flows are largely independent of the cash flows of other assets and liabilities. Goodwill and indefinite-lived assets are not amortized, but are subject to an impairment review annually and more frequently when indicators of impairment exist. An impairment of goodwill could occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. An impairment of Indefinite-lived intangible assets, which consist of capitalized IPR&D, would occur if the fair value of the IPR&D intangible asset is less than the carrying amount. The company tests its goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If the company concludes it is more likely than not that the fair value of reporting unit is less than its carrying amount, a quantitative impairment test is performed. AbbVie tests indefinite-lived intangible assets using a quantitative impairment test. For its quantitative impairment tests, the company uses an estimated future cash flow approach that requires significant judgment with respect to future volume, revenue and expense growth rates, changes in working capital use, future foreign currency exchange rates, the selection of an appropriate discount rate, asset groupings and other assumptions and estimates. The estimates and assumptions used are consistent with the company's business plans and a market participant's views of a company and similar companies. The use of alternative estimates and assumptions could increase or decrease the estimated fair value of the assets and potentially result in different impacts to the company's results of operations. Actual results may differ from the company's estimates.
Acquired In-Process Research and Development	Acquired In-Process Research and Development In an asset acquisition, the initial costs of rights to IPR&D projects acquired are expensed as IPR&D in the consolidated statements of earnings unless the project has an alternative future use. These costs include initial payments incurred prior to regulatory approval in connection with research and development collaboration agreements that provide rights to develop, manufacture, market and/or sell pharmaceutical products. In a business combination, the fair value of IPR&D projects acquired are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a definite-lived intangible asset, or discontinuation, at which point the intangible asset will be written off. R&D costs incurred after the acquisition are expensed as incurred.
Foreign Currency Translation	Foreign Currency Translation Foreign subsidiary earnings are translated into U.S. dollars using average exchange rates. The net assets of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recognized in other comprehensive (loss) income (OCI) in the consolidated statements of comprehensive income. The net assets of subsidiaries in highly inflationary economies are remeasured as if the functional currency were the reporting currency. The remeasurement is recognized in net foreign exchange loss in the consolidated statements of earnings.
Derivatives	Derivatives All derivative instruments are recognized as either assets or liabilities at fair value on the consolidated balance sheets and are classified as current or long-term based on the scheduled maturity of the instrument. For derivatives formally designated as hedges, the company assesses at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in the fair value or cash flows of the hedged item. The changes in fair value of a derivative designated as a fair value hedge and of the hedged item attributable to the hedged risk are recognized in earnings immediately. The effective portions of changes in the fair value of a derivative designated as a cash flow hedge are reported in AOCI and are subsequently recognized in earnings consistent with the underlying hedged item. If it is determined that a derivative is no longer highly effective as a hedge, the company discontinues hedge accounting prospectively. If a hedged forecasted transaction becomes probable of not occurring, any gains or losses are reclassified from AOCI to earnings. Derivatives that are not designated as hedges are adjusted to fair value through current earnings. The company also uses derivative instruments or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. Realized and unrealized gains and losses from these hedges are included in AOCI. Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing section of the consolidated statements of cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-9, Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The amendments in this standard supersede most current revenue recognition requirements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. AbbVie can apply the amendments using one of the following two methods: (i) retrospectively to each prior reporting period presented, or (ii) modified retrospectively with the cumulative effect of initially applying the amendments recognized at the date of initial application. This standard will be effective for AbbVie starting with the first quarter of 2018. Early application is permitted only for annual reporting periods beginning starting with the first quarter of 2017. AbbVie will adopt the standard effective the first quarter of 2018 and apply the amendments using the modified retrospective method. AbbVie's revenues are primarily comprised of product sales. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The standard requires several targeted changes including that equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net earnings. These provisions will not impact the accounting for AbbVie's investments in debt securities. The new guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. Amendments are to be applied as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This standard will be effective for AbbVie starting with the first quarter of 2018. The standard does not permit early adoption with the exception of certain targeted provisions. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new standard requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new standard must be adopted using the modified retrospective approach and will be effective for AbbVie starting with the first quarter of 2019. Early adoption is permitted. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Under the new guidance, excess tax benefits associated with share-based awards will be recognized in the statement of earnings when the awards vest or settle, rather than in stockholders’ equity. The standard also permits entities to make a policy election to account for forfeitures as they occur and clarifies the statement of cash flows presentation for certain components of share-based awards. AbbVie will adopt the standard effective the first quarter of 2017 with any adjustments reflected as of the beginning of the fiscal year of adoption. AbbVie cannot predict the impact of adopting this standard as it will be dependent upon several unknown factors including when employees exercise stock options and the company's stock price at settlement date. However, based on historical trends, AbbVie does not believe the adoption will have a material impact on the company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The standard changes how credit losses are measured for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. The standard additionally requires new disclosures and will be effective for AbbVie starting with the first quarter of 2020. Early adoption beginning in the first quarter of 2019 is permitted. With certain exceptions, adjustments are to be applied using a modified-retrospective approach by reflecting adjustments through a cumulative-effect impact to retained earnings as of the beginning of the fiscal year of adoption. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740). The new standard requires entities to recognize the income tax consequences of an intercompany transfer of an asset other than inventory when the transfer occurs. Under current U.S. GAAP, the income tax consequences of these intercompany asset transfers are deferred until the asset is sold to a third party or otherwise recovered through use. The standard will be effective for AbbVie starting with the first quarter of 2018. Early adoption is permitted as of the beginning of an annual period. Adjustments for this update are to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings with any adjustments reflected as of the beginning of the fiscal year of adoption. AbbVie is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. As of December 31, 2016, AbbVie had approximately $1.9 billion of prepaid income tax assets that will be affected by this standard, of which $1.4 billion was included in prepaid expenses and other on the consolidated balance sheet. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The standard provides clarifying guidance to assist in the evaluation of whether transactions are treated as business combinations or asset acquisitions. AbbVie will early adopt the standard starting with the first quarter of 2017. The ASU will be applied prospectively to any transactions occurring after adoption.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Schedule of inventories, net

Inventories are valued at the lower of cost (first-in, first-out basis) or market. Cost includes material and conversion costs. Inventories consisted of the following:



as of December 31 (in millions)	2016		2015
Finished goods	$	223	$	469
Work-in-process	1,080		1,081
Raw materials	141		169
Inventories	$	1,444	$	1,719

Schedule of property and equipment, net

Property and Equipment



as of December 31 (in millions)	2016			2015
Land	$	46		$	46
Buildings	1,344			1,284
Equipment	5,726			5,656
Construction in progress	410			348
Property and equipment, gross	7,526			7,334
Less accumulated depreciation	(4,922		)	(4,769		)
Property and equipment, net	$	2,604		$	2,565

Supplemental Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Financial Information

Schedule of interest expense, net

Interest Expense, Net



years ended December 31 (in millions)	2016			2015			2014
Interest expense	$	1,047		$	719		$	429
Interest income	(82		)	(33		)	(38		)
Interest expense, net	$	965		$	686		$	391

Schedule of accounts payable and accrued liabilities

Accounts Payable and Accrued Liabilities



as of December 31 (in millions)	2016		2015
Sales rebates	$	2,887	$	2,355
Accounts payable	1,407		1,597
Dividends payable	1,028		924
Salaries, wages and commissions	644		632
Royalty and license arrangements	434		411
Other	2,979		2,544
Accounts payable and accrued liabilities	$	9,379	$	8,463

Schedule of long-term liabilities

Other Long-Term Liabilities



as of December 31 (in millions)	2016		2015
Contingent consideration	$	3,941	$	—
Pension and other post-employment benefits	2,085		1,949
Liabilities for unrecognized tax benefits	1,166		902
Other	1,160		844
Other long-term liabilities	$	8,352	$	3,695

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of diluted earnings per share, impact of two-class method

The following table summarizes the impact of the two-class method:



	Years ended December 31,
(in millions, except per share information)	2016		2015		2014
Basic EPS
Net earnings	$	5,953	$	5,144	$	1,774
Earnings allocated to participating securities	30		26		9
Earnings available to common shareholders	$	5,923	$	5,118	$	1,765
Weighted-average basic shares outstanding	1,622		1,625		1,595
Basic earnings per share	$	3.65	$	3.15	$	1.11

Diluted EPS
Net earnings	$	5,953	$	5,144	$	1,774
Earnings allocated to participating securities	30		26		9
Earnings available to common shareholders	$	5,923	$	5,118	$	1,765
Weighted-average shares of common stock outstanding	1,622		1,625		1,595
Effect of dilutive securities	9		12		15
Weighted-average diluted shares outstanding	1,631		1,637		1,610
Diluted earnings per share	$	3.63	$	3.13	$	1.10

Licensing, Acquisitions, and Other Arrangements (Tables)

12 Months Ended

Dec. 31, 2016

Stemcentrx

Business Acquisition [Line Items]

Schedule of consideration paid

The following table summarizes total consideration:



(in millions)
Cash	$	1,883
Fair value of AbbVie common stock	3,923
Contingent consideration	620
Total consideration	$	6,426

Schedule of assets acquired and liabilities assumed

The following table summarizes fair values of assets acquired and liabilities assumed as of the June 1, 2016 acquisition date:



(in millions)
Assets acquired and liabilities assumed
Accounts receivable	$	1
Prepaid expenses and other	7
Property and equipment	17
Intangible assets - Indefinite-lived research and development	6,100
Accounts payable and accrued liabilities	(31		)
Deferred income taxes	(1,933		)
Other long-term liabilities	(7		)
Total identifiable net assets	4,154
Goodwill	2,272
Total assets acquired and liabilities assumed	$	6,426

Schedule of proforma results of operations



	Years ended December 31,
(in millions, except per share information)	2016		2015
Net revenues	$	25,641	$	22,869
Net earnings	5,907		4,894
Basic earnings per share	$	3.58	$	2.90
Diluted earnings per share	$	3.56	$	2.88

Business Acquisition [Line Items]

Schedule of consideration paid

The following table summarizes total consideration:



(in millions)
Cash	$	595
Deferred consideration payable	18
Contingent consideration	3,365
Total consideration	$	3,978

Schedule of assets acquired and liabilities assumed

The following table summarizes fair values of assets acquired as of the April 1, 2016 acquisition date:



(in millions)
Assets acquired
Identifiable intangible assets - Indefinite-lived research and development	$	3,890
Goodwill	88
Total assets acquired	$	3,978

Pharmacyclics

Business Acquisition [Line Items]

Schedule of consideration paid

The total consideration for the acquisition of Pharmacyclics consisted of cash and approximately 128 million shares of AbbVie common stock and is summarized as follows:



(in millions)
Cash	$	12,365
Fair value of AbbVie common stock	8,405
Total consideration	$	20,770

Schedule of assets acquired and liabilities assumed

The following table summarizes the fair values of assets acquired and liabilities assumed as of the May 26, 2015 acquisition date:



(in millions)
Assets acquired and liabilities assumed
Cash and equivalents	$	877
Short-term investments	11
Accounts receivable	106
Inventories	492
Other assets	212
Intangible assets
Definite-lived developed product rights	4,590
Definite-lived license agreements	6,780
Indefinite-lived research and development	7,180
Accounts payable and accrued liabilities	(381		)
Deferred income taxes	(6,453		)
Other long-term liabilities	(254		)
Total identifiable net assets	13,160
Goodwill	7,610
Total assets acquired and liabilities assumed	$	20,770

Schedule of proforma results of operations



years ended December 31 (in millions, except per share information)	2015		2014
Net revenues	$	23,215	$	20,690
Net earnings	5,345		812
Basic earnings per share	$	3.18	$	0.47
Diluted earnings per share	$	3.16	$	0.47

Collaboration with Janssen Biotech, Inc. (Tables)

12 Months Ended

Dec. 31, 2016

Collaboration with Janssen Biotech, Inc.

Schedule of profit and cost sharing relationship

The following table shows the profit and cost sharing relationship between Janssen and AbbVie:



	Twelve months ended December 31,
(in millions)	2016		2015
Collaboration revenues - International	$	252	$	95
AbbVie profit share costs - United States	735		306
AbbVie's share of cost sharing expenses	262		159

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of changes in the carrying amount of the entity's goodwill

The following table summarizes the changes in the carrying amount of goodwill:



(in millions)
Balance as of December 31, 2014	$	5,862
Additions (see Note 5)	7,610
Foreign currency translation and other adjustments	(304		)
Balance as of December 31, 2015	13,168
Additions (see Note 5)	2,360
Foreign currency translation and other adjustments	(112		)
Balance as of December 31, 2016	$	15,416

Schedule of definite-lived intangible assets

The following table summarizes intangible assets:



	2016							2015
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	$	16,464	$	(4,256	)	$	12,208	$	9,103	$	(3,944	)	$	5,159
License agreements	7,809		(1,110		)	6,699		8,000		(1,023		)	6,977
Total definite-lived intangible assets	24,273		(5,366		)	18,907		17,103		(4,967		)	12,136
Indefinite-lived research and development	9,990		—			9,990		7,573		—			7,573
Total intangible assets, net	$	34,263	$	(5,366	)	$	28,897	$	24,676	$	(4,967	)	$	19,709

Schedule of indefinite-lived intangible assets

The following table summarizes intangible assets:



	2016							2015
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	$	16,464	$	(4,256	)	$	12,208	$	9,103	$	(3,944	)	$	5,159
License agreements	7,809		(1,110		)	6,699		8,000		(1,023		)	6,977
Total definite-lived intangible assets	24,273		(5,366		)	18,907		17,103		(4,967		)	12,136
Indefinite-lived research and development	9,990		—			9,990		7,573		—			7,573
Total intangible assets, net	$	34,263	$	(5,366	)	$	28,897	$	24,676	$	(4,967	)	$	19,709

Summary of anticipated annual amortization expense

The anticipated annual amortization expense for definite lived intangible assets recorded as of December 31, 2016 is as follows:



(in billions)	2017		2018		2019		2020		2021
Anticipated annual amortization expense	$	1.1	$	1.3	$	1.6	$	1.8	$	2.0

Restructuring Plans (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Summary of the cash activity in the restructuring reserve

The following summarizes the cash activity in the restructuring reserve for 2016, 2015 and 2014:



(in millions)
Accrued balance at December 31, 2013	$	191
2014 restructuring charges	16
Payments and other adjustments	(85		)
Accrued balance at December 31, 2014	122
2015 restructuring charges	126
Payments and other adjustments	(100		)
Accrued balance at December 31, 2015	148
2016 restructuring charges	52
Payments and other adjustments	(113		)
Accrued balance at December 31, 2016	$	87

Debt, Credit Facilities, and Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Debt, Credit Facilities, and Commitments and Contingencies

Summary of long-term debt

The following is a summary of long-term debt:



as of December 31 (in millions)	Effective interest rate in 2016^(a)		2016			Effective interest rate in 2015^(a)		2015
Senior notes issued in 2012:
1.75% notes due 2017	1.86	%	$	—		1.86	%	$	4,000
2.00% notes due 2018	2.15	%	1,000			2.15	%	1,000
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:
1.80% notes due 2018	1.92	%	3,000			1.92	%	3,000
2.50% notes due 2020	2.65	%	3,750			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			—	%	—
2.85% notes due 2023	2.91	%	1,000			—	%	—
3.20% notes due 2026	3.28	%	2,000			—	%	—
4.30% notes due 2036	4.37	%	1,000			—	%	—
4.45% notes due 2046	4.50	%	2,000			—	%	—
Senior Euro notes issued in 2016:
0.38% notes due 2019 (€1,400 principal)	0.55	%	1,464			—	%	—
1.38% notes due 2024 (€1,450 principal)	1.46	%	1,516			—	%	—
2.13% notes due 2028 (€750 principal)	2.18	%	784			—	%	—
Term loan facilities:
Floating rate notes due 2016	—	%	—			1.23	%	2,000
Floating rate notes due 2018	1.64	%	2,000			1.38	%	2,000
Other	—	%	113			—	%	139
Fair value hedges	—	%	(338		)	—	%	(72		)
Unamortized bond discounts	—	%	(110		)	—	%	(85		)
Unamortized deferred financing costs	—	%	(164		)	—	%	(117		)
Total long-term debt and lease obligations			36,465					31,265
Current portion			25					2,025
Noncurrent portion			$	36,440				$	29,240


(a)	Excludes the effect of any related interest rate swaps.

Summary of future minimum operating lease payments, capital lease payments and debt maturities



as of and for the years ending December 31 (in millions)	Operating leases		Debt maturities and capital leases
2017	$	131	$	25
2018	116		6,023
2019	106		1,480
2020	95		3,760
2021	77		1,802
Thereafter	449		23,987
Total obligations and commitments	974		37,077
Fair value hedges, unamortized bond discounts and deferred financing costs	—		(612		)
Total debt and lease obligations	$	974	$	36,465

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Financial Instruments and Fair Value Measures (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of amounts and balance sheet location of derivatives

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	2016		2015		Balance sheet caption	2016		2015
Foreign currency forward exchange contracts-
Hedging instruments	Prepaid expenses and other	$	170	$	33	Accounts payable and accrued liabilities	$	5	$	—
Others not designated as hedges	Prepaid expenses and other	55		28		Accounts payable and accrued liabilities	33		21
Interest rate swaps designated as fair value hedges	Other assets	—		9		Other long-term liabilities	338		81
Total derivatives		$	225	$	70		$	376	$	102

Schedule of amounts and location of gains (losses) recognized



	2016						2015						2014
(in millions)	Cash Flow Hedges		Net Investment Hedges		Total		Cash Flow Hedges		Net Investment Hedges		Total		Cash Flow Hedges		Net Investment Hedges		Total
Foreign currency forward exchange contracts	$	174	$	118	$	292	$	122	$	—	$	122	$	193	$	—	$	193



years ended December 31 (in millions)	Statement of earnings caption	2016			2015			2014
Foreign currency forward exchange contracts-
Designated as cash flow hedges	Cost of products sold	$	20		$	265		$	(79	)
Not designated as hedges	Net foreign exchange loss	6			(155		)	(523		)
Non-designated treasury rate lock agreements	Other expense (income), net	(12		)	—			—
Interest rate swaps designated as fair value hedges	Interest expense, net	(266		)	108			252
Total		$	(252	)	$	218		$	(350	)

Summary of the 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 that were carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2016:



			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	$	5,100	$	1,191	$	3,909	$	—
Time deposits	1,014		—		1,014		—
Debt securities	1,974		—		1,974		—
Equity securities	76		76		—		—
Foreign currency contracts	225		—		225		—
Total assets	$	8,389	$	1,267	$	7,122	$	—
Liabilities
Interest rate hedges	$	338	$	—	$	338	$	—
Foreign currency contracts	38		—		38		—
Contingent consideration	4,213		—		—		4,213
Total liabilities	$	4,589	$	—	$	376	$	4,213

The following table summarizes the bases used to measure certain assets and liabilities that were carried at fair value on a recurring basis on the consolidated balance sheet as of December 31, 2015:



			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	$	8,399	$	798	$	7,601	$	—
Time deposits	8		—		8		—
Equity securities	111		111		—		—
Interest rate hedges	9		—		9		—
Foreign currency contracts	61		—		61		—
Total assets	$	8,588	$	909	$	7,679	$	—
Liabilities
Interest rate hedges	$	81	$	—	$	81	$	—
Foreign currency contracts	21		—		21		—
Total liabilities	$	102	$	—	$	102	$	—

Schedule of reconciliation of the fair value measurements

The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consist of contingent consideration related to the acquisitions of Stemcentrx and BI compounds. See Note 5 for additional information.



(in millions)
Fair value as of December 31, 2015	$	—
Additions	3,985
Change in fair value recognized in net earnings	228
Fair value as of December 31, 2016	$	4,213

Summary of the bases used to measure the approximate fair value of 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, 2016 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)
Assets
Investments	$	42	$	42	$	—	$	5	$	37
Total assets	$	42	$	42	$	—	$	5	$	37
Liabilities
Short-term borrowings	$	377	$	377	$	—	$	377	$	—
Current portion of long-term debt and lease obligations	25		25		—		25		—
Long-term debt and lease obligations, excluding fair value hedges	36,778		36,664		34,589		2,075		—
Total liabilities	$	37,180	$	37,066	$	34,589	$	2,477	$	—

The book values, approximate fair values and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2015 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)
Assets
Investments	$	34	$	37	$	—	$	—	$	37
Total assets	$	34	$	37	$	—	$	—	$	37
Liabilities
Short-term borrowings	$	406	$	406	$	—	$	406	$	—
Current portion of long-term debt and lease obligations	2,025		2,016		—		2,016		—
Long-term debt and lease obligations, excluding fair value hedges	29,312		29,143		27,061		2,082		—
Total liabilities	$	31,743	$	31,565	$	27,061	$	4,504	$	—

Summary of available-for-sale securities by type

The following table is a summary of available-for-sale securities by type as of December 31, 2016:



	Amortized Cost		Gross unrealized					Fair Value
(in millions)	Amortized Cost		Gains		Losses			Fair Value
Asset backed securities	$	891	$	1	$	(4	)	$	888
Corporate debt securities	961		1		(2		)	960
Other debt securities	127		—		(1		)	126
Equity securities	18		60		(2		)	76
Total	$	1,997	$	62	$	(9	)	$	2,050

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Post-Employment Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Postemployment Benefits [Abstract]

Schedule of benefit plan information

The benefit plan information in the table below pertains to the global AbbVie-sponsored defined benefit and other post-employment plans:



	Defined benefit plans						Other post-employment plans
as of and for the years ended December 31 (in millions)	2016			2015			2016			2015
Projected benefit obligations
Beginning of period	$	5,387		$	5,681		$	557		$	538
Service cost	210			227			25			25
Interest cost	201			219			24			23
Employee contributions	1			2			—			—
Actuarial loss (gain)	313			(467		)	33			(17		)
Benefits paid	(163		)	(158		)	(12		)	(11		)
Other, primarily foreign currency translation adjustments	(120		)	(117		)	—			(1		)
End of period	5,829			5,387			627			557
Fair value of plan assets
Beginning of period	4,174			4,173			—			—
Actual return (loss) on plan assets	383			(25		)	—			—
Company contributions	273			217			12			11
Employee contributions	1			2			—			—
Benefits paid	(163		)	(158		)	(12		)	(11		)
Other, primarily foreign currency translation adjustments	(96		)	(35		)	—			—
End of period	4,572			4,174			—			—
Funded status end of period	$	(1,257	)	$	(1,213	)	$	(627	)	$	(557	)

Amounts recognized on the consolidated balance sheets
Other assets	$	240		$	214		$	—		$	—
Accounts payable and accrued liabilities	(25		)	(24		)	(14		)	(11		)
Other long-term liabilities	(1,472		)	(1,403		)	(613		)	(546		)
Net obligation	$	(1,257	)	$	(1,213	)	$	(627	)	$	(557	)
Actuarial loss, net	$	2,118		$	1,939		$	179		$	154
Prior service cost (credit)	14			16			(37		)	(45		)
Accumulated other comprehensive loss	$	2,132		$	1,955		$	142		$	109

Summary of pretax gains and losses included in other comprehensive income (loss)

The following table summarizes the pre-tax gains and losses included in other comprehensive loss:



years ended December 31 (in millions)	2016			2015			2014
Defined benefit plans
Actuarial loss (gain)	$	284		$	(117	)	$	1,127
Prior service cost	—			—			1
Amortization of actuarial loss and prior service cost	(85		)	(127		)	(68		)
Foreign exchange gain	(22		)	(37		)	(41		)
Total pre-tax loss (gain) recognized in other comprehensive loss	$	177		$	(281	)	$	1,019
Other post-employment plans
Actuarial loss (gain)	$	33		$	(17	)	$	111
Prior service credit	—			—			(13		)
Amortization of actuarial loss and prior service cost (credit)	—			(2		)	3
Total pre-tax loss (gain) recognized in other comprehensive loss	$	33		$	(19	)	$	101

Summary of net periodic benefit cost relating to the company's defined benefit and other post-employment plans

Net Periodic Benefit Cost



years ended December 31 (in millions)	2016			2015			2014
Defined benefit plans
Service cost	$	210		$	227		$	173
Interest cost	201			219			217
Expected return on plan assets	(354		)	(325		)	(302		)
Amortization of actuarial loss and prior service cost	85			127			68
Net periodic benefit cost	$	142		$	248		$	156
Other post-employment plans
Service cost	$	25		$	25		$	22
Interest cost	24			23			22
Amortization of actuarial loss (gain) and prior service cost (credit)	—			2			(2		)
Net periodic benefit cost	$	49		$	50		$	42

Schedule of weighted-average assumptions used in determining benefit obligations at the measurement date

Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date



as of December 31	2016		2015
Defined benefit plans
Discount rate	3.9	%	4.4	%
Rate of compensation increases	4.4	%	4.4	%
Other post-employment plans
Discount rate	4.7	%	4.9	%

Schedule of weighted-average assumptions used in determining net periodic benefit cost

Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost



years ended December 31	2016		2015		2014
Defined benefit plans
Discount rate for determining service cost	4.4	%	3.9	%	4.9	%
Discount rate for determining interest cost	4.0	%	3.9	%	4.9	%
Expected long-term rate of return on plan assets	7.9	%	7.8	%	7.9	%
Expected rate of change in compensation	4.4	%	4.4	%	5.0	%
Other post-employment plans
Discount rate for determining service cost	5.1	%	4.5	%	5.3	%
Discount rate for determining interest cost	4.3	%	4.5	%	5.3	%

Schedule of effect of 1% change in assumed health care cost trend rates

As of December 31, 2016, a 1 percentage point change in assumed health care cost trend rates would have the following effects:



	One percentage point
year ended December 31, 2016 (in millions) (brackets denote a reduction)	Increase		Decrease
Service cost and interest cost	$	11	$	(9	)
Projected benefit obligation	120		(95		)

Schedule of defined benefit pension plan assets

Defined Benefit Pension Plan Assets



			Basis of fair value measurement
as of December 31 (in millions)	2016		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)	$	519	$	519	$	—	$	—
U.S. mid cap^(b)	63		63		—		—
International^(c)	97		97		—		—
Fixed income securities
U.S. government securities^(d)	94		—		94		—
Corporate debt instruments^(d)	243		162		81		—
Non-U.S. government securities^(d)	32		30		2		—
Other^(d)	184		179		5		—
Absolute return funds^(e)	228		3		225		—
Real assets	31		31		—		—
Other^(f)	61		61		—		—
Total	$	1,552	$	1,145	$	407	$	—
Total assets measured at NAV	3,020
Fair value of plan assets	$	4,572



			Basis of fair value measurement
as of December 31 (in millions)	2015		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)	$	542	$	542	$	—	$	—
U.S. mid cap^(b)	35		35		—		—
International^(c)	100		100		—		—
Fixed income securities
U.S. government securities^(d)	93		15		78		—
Corporate debt instruments^(d)	203		124		79		—
Non-U.S. government securities^(d)	35		33		2
Other^(d)	126		122		4		—
Absolute return funds^(e)	194		2		192		—
Real assets	8		8		—		—
Other^(f)	93		93		—		—
Total	$	1,429	$	1,074	$	355	$	—
Total assets measured at NAV	2,745
Fair value of plan assets	$	4,174


(a)	A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices.


(b)	A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices.


(c)	A mix of index funds and actively managed equity accounts that are benchmarked to various non-US equity indices in both developed and emerging markets.


(d)	Securities held by actively managed accounts, index funds and mutual funds.


(e)	Funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets.


(f)	Investments in cash and cash equivalents.

Schedule of expected defined benefit and other post-employment payments

Expected Defined Benefit and Other Post-Employment Plan Payments



years ending December 31 (in millions)	Defined benefit plans		Other post-employment plans
2017	$	174	$	14
2018	185		17
2019	199		20
2020	211		20
2021	226		22
2022 to 2026	1,351		145

Equity (Tables)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Schedule of share-based compensation expense

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



	Years ended December 31,
(in millions)	2016		2015		2014
Cost of products sold	$	22	$	21	$	16
Research and development	193		111		78
Selling, general and administrative	181		150		147
Pre-tax compensation expense	396		282		241
Tax benefit	104		89		73
After-tax compensation expense	$	292	$	193	$	168

Summary of AbbVie stock option activity

The following table summarizes AbbVie stock option activity in 2016:



(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, 2015	23,569		$	30.64	3.0	$	674
Granted	1,143		54.99
Granted in acquisition	1,076		12.85
Exercised	(9,720	)	26.71
Lapsed	(106	)	23.62
Outstanding at December 31, 2016	15,962		$	33.63	3.7	$	463
Exercisable at December 31, 2016	12,945		$	30.76	2.5	$	412

Summary of AbbVie RSA and RSU activity

The following table summarizes AbbVie RSA, RSU and performance share activity for 2016:



(share units in thousands)	Share units		Weighted-average grant date fair value
Outstanding at December 31, 2015	12,490		$	51.66
Granted	5,561		55.28
Vested	(6,559	)	46.24
Forfeited	(777	)	57.00
Outstanding at December 31, 2016	10,715		$	56.47

Summary of quarterly cash dividends

The following table summarizes quarterly cash dividends for the years ended December 31, 2016 and 2015:



2016				2015
Date Declared	Payment Date	Dividend Per Share		Date Declared	Payment Date	Dividend Per Share
10/28/16	02/15/17	$	0.64	10/30/15	02/16/16	$	0.57
09/09/16	11/15/16	$	0.57	09/11/15	11/16/15	$	0.51
06/16/16	08/15/16	$	0.57	06/18/15	08/14/15	$	0.51
02/18/16	05/16/16	$	0.57	02/19/15	05/15/15	$	0.51

Summary of accelerated share repurchase program

The following table shows details about AbbVie’s ASR transactions:



(shares in millions, repurchase amounts in billions)
Execution date	Purchase amount		Initial delivery of shares	Final delivery of shares	Related acquisition
05/26/15	$	5.0	68.1	5.0	Pharmacyclics
06/01/16	3.8		54.4	5.4	Stemcentrx

Summary of changes in each component of AOCI, net of tax

The following table summarizes the changes in each component of AOCI, net of tax, for 2016, 2015 and 2014:



(in millions) (brackets denote losses)	Foreign currency translation adjustments			Net investment hedging activities		Pension and post- employment benefits			Unrealized gains (losses) on marketable securities			Cash flow hedging activities			Total
Balance as of December 31, 2013	$	470		$	—	$	(827	)	$	2		$	(87	)	$	(442	)
Other comprehensive income (loss) before reclassifications	(1,073		)	—		(827		)	1			187			(1,712		)
Net losses reclassified from accumulated other comprehensive loss	—			—		46			—			77			123
Net current-period other comprehensive income (loss)	(1,073		)	—		(781		)	1			264			(1,589		)
Balance as of December 31, 2014	(603		)	—		(1,608		)	3			177			(2,031		)
Other comprehensive income (loss) before reclassifications	(667		)	—		147			48			122			(350		)
Net losses (gains) reclassified from accumulated other comprehensive loss	—			—		83			(4		)	(259		)	(180		)
Net current-period other comprehensive income (loss)	(667		)	—		230			44			(137		)	(530		)
Balance as of December 31, 2015	(1,270		)	—		(1,378		)	47			40			(2,561		)
Other comprehensive income (loss) before reclassifications	(165		)	140		(194		)	7			160			(52		)
Net losses (gains) reclassified from accumulated other comprehensive loss	—			—		59			(8		)	(24		)	27
Net current-period other comprehensive income (loss)	(165		)	140		(135		)	(1		)	136			(25		)
Balance as of December 31, 2016	$	(1,435	)	$	140	$	(1,513	)	$	46		$	176		$	(2,586	)

Schedule of the impact of significant amounts reclassified out of components of accumulated other comprehensive loss

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



years ended December 31 (in millions) (brackets denote gains)	2016			2015			2014
Pension and post-employment benefits
Amortization of actuarial losses and other^(a)	$	85		$	129		$	65
Tax benefit	(26		)	(46		)	(19		)
Total reclassifications, net of tax	$	59		$	83		$	46

Cash flow hedging activities
Losses (gains) on designated cash flow hedges^(b)	$	(20	)	$	(265	)	$	79
Tax expense (benefit)	(4		)	6			(2		)
Total reclassifications, net of tax	$	(24	)	$	(259	)	$	77


(a)	Amounts are included in the computation of net periodic benefit cost (see Note 11).


(b)	Amounts are included in cost of products sold (see Note 10).

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes

Earnings Before Income Tax Expense



years ended December 31 (in millions)	2016			2015			2014
Domestic	$	(1,651	)	$	(1,038	)	$	(3,245	)
Foreign	9,535			7,683			5,614
Total earnings before income tax expense	$	7,884		$	6,645		$	2,369

Schedule of income tax expense

Income Tax Expense



years ended December 31 (in millions)	2016			2015		2014
Current
Domestic	$	2,229		$	1,036	$	634
Foreign	498			313		341
Total current taxes	$	2,727		$	1,349	$	975
Deferred
Domestic	$	(792	)	$	141	$	(301	)
Foreign	(4		)	11		(79		)
Total deferred taxes	$	(796	)	$	152	$	(380	)
Total income tax expense	$	1,931		$	1,501	$	595

Summary of effective tax rate reconciliation

Effective Tax Rate Reconciliation



years ended December 31	2016		2015		2014
Statutory tax rate	35.0	%	35.0	%	35.0	%
Effect of foreign operations	(10.3	)	(9.4	)	(11.3	)
U.S. tax credits	(4.4	)	(4.5	)	(8.9	)
Branded prescription drug fee	0.5		0.7		3.7
Tax law change related to foreign currency	2.4		—		—
Valuation allowances	—		(1.6	)	3.6
All other, net	1.3		2.4		3.0
Effective tax rate	24.5	%	22.6	%	25.1	%

Schedule of deferred tax assets and liabilities

Deferred Tax Assets and Liabilities



as of December 31 (in millions)	2016			2015
Deferred tax assets
Compensation and employee benefits	$	665		$	584
Accruals and reserves	378			368
Chargebacks and rebates	473			472
Deferred revenue	391			372
Depreciation	24			45
Net operating losses and other credit carryforwards	151			282
Other	71			316
Total deferred tax assets	2,153			2,439
Valuation allowances	(76		)	(70		)
Total net deferred tax assets	2,077			2,369
Deferred tax liabilities
Excess of book basis over tax basis of intangible assets	(5,375		)	(4,459		)
Excess of book basis over tax basis in investments	(3,367		)	(2,958		)
Total deferred tax liabilities	(8,742		)	(7,417		)
Net deferred tax liabilities	$	(6,665	)	$	(5,048	)

Schedule of unrecognized tax benefits

Unrecognized Tax Benefits



years ended December 31 (in millions)	2016			2015			2014
Balance as of January 1	$	954		$	421		$	247
Increase due to current year tax positions	118			187			115
Increase due to prior year tax positions	111			369			67
Decrease due to prior year tax positions	(7		)	(15		)	(6		)
Lapse of statutes of limitations	(8		)	(8		)	(2		)
Balance as of December 31	$	1,168		$	954		$	421

Segment and Geographic Area Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of net revenues by product

The following tables detail AbbVie's worldwide net revenues:



years ended December 31 (in millions)	2016		2015		2014
HUMIRA	$	16,078	$	14,012	$	12,543
IMBRUVICA	1,832		754		—
VIEKIRA	1,522		1,639		48
Lupron	821		826		778
Synagis	730		740		835
Synthroid	763		755		709
Creon	730		632		516
AndroGel	675		694		934
Kaletra	549		700		870
Sevoflurane	428		474		550
Duodopa	293		231		220
All other	1,217		1,402		1,957
Total net revenues	$	25,638	$	22,859	$	19,960

Schedule of net revenues to external customers by geographic area

Net revenues to external customers by geographic area, based on product shipment destination, were as follows:



years ended December 31 (in millions)	2016		2015		2014
United States	$	15,947	$	13,561	$	10,845
Germany	1,104		1,082		1,035
United Kingdom	776		688		722
Japan	770		599		581
France	713		597		584
Canada	624		551		551
Spain	589		618		534
Italy	523		452		432
Brazil	355		376		435
The Netherlands	352		334		345
All other countries	3,885		4,001		3,896
Total net revenues	$	25,638	$	22,859	$	19,960

Schedule of long-lived assets by geographic area

Long-lived assets, primarily net property and equipment, by geographic area were as follows:



years ended December 31 (in millions)	2016		2015
United States and Puerto Rico	$	1,822	$	1,868
Europe	504		513
All other	278		184
Total long-lived assets	$	2,604	$	2,565

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly financial data (unaudited)



(in millions except per share data)	2016		2015
First Quarter
Net revenues	$	5,958	$	5,040
Gross margin	4,589		4,098
Net earnings^(a)	1,354		1,022
Basic earnings per share	$	0.83	$	0.64
Diluted earnings per share	$	0.83	$	0.63
Cash dividends declared per common share	$	0.57	$	0.51
Second Quarter
Net revenues	$	6,452	$	5,475
Gross margin	5,047		4,559
Net earnings^(b)	1,610		1,366
Basic earnings per share	$	0.99	$	0.84
Diluted earnings per share	$	0.98	$	0.83
Cash dividends declared per common share	$	0.57	$	0.51
Third Quarter
Net revenues	$	6,432	$	5,944
Gross margin	4,928		4,777
Net earnings^(c)	1,598		1,239
Basic earnings per share	$	0.97	$	0.75
Diluted earnings per share	$	0.97	$	0.74
Cash dividends declared per common share	$	0.57	$	0.51
Fourth Quarter
Net revenues	$	6,796	$	6,400
Gross margin	5,241		4,925
Net earnings^(d)	1,391		1,517
Basic earnings per share	$	0.86	$	0.93
Diluted earnings per share	$	0.85	$	0.92
Cash dividends declared per common share	$	0.64	$	0.57

(a)

(b)

(c)

(d)

Background and Basis of Presentation (Details) $ in Millions		12 Months Ended
	Jan. 01, 2013	Dec. 31, 2016 wholesaler	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of wholesalers \| wholesaler		3
Separation related expenses			$ 270	$ 445
AbbVie sponsored plans
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of outstanding common stock distributed to Abbott Laboratories' shareholders	100.00%
Abbott Laboratories \| Separation Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Net revenues			$ 213	$ 282

Summary of Significant Accounting Policies - Additional information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Advertising expenses		$ 764,000,000	$ 704,000,000	$ 665,000,000
Amortization period of differences between the expected and actual return on plan assets		5 years
Allowance for accounts receivable		$ 72,000,000	78,000,000
Impairment charges	$ 37,000,000		$ 0
Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid income tax assets		1,900,000,000
Accounting Standards Update 2016-16 \| Prepaid Expenses and Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid income tax assets		$ 1,400,000,000

Summary of Significant Accounting Policies - Schedule of Inventories, Net (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Finished goods	$ 223	$ 469
Work-in-process	1,080	1,081
Raw materials	141	169
Inventories	$ 1,444	$ 1,719

Summary of Significant Accounting Policies - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Property and equipment, gross	$ 7,526	$ 7,334
Less accumulated depreciation	(4,922)	(4,769)
Property and equipment, net	2,604	2,565
Depreciation expense	425	417	$ 383
Land
Property and Equipment
Property and equipment, gross	46	46
Buildings
Property and Equipment
Property and equipment, gross	$ 1,344	1,284
Buildings \| Minimum
Property and Equipment
Estimated useful lives	10 years
Buildings \| Maximum
Property and Equipment
Estimated useful lives	50 years
Equipment
Property and Equipment
Property and equipment, gross	$ 5,726	5,656
Equipment \| Minimum
Property and Equipment
Estimated useful lives	3 years
Amortization period of software costs included in equipment	3 years
Equipment \| Maximum
Property and Equipment
Estimated useful lives	20 years
Amortization period of software costs included in equipment	10 years
Construction in progress
Property and Equipment
Property and equipment, gross	$ 410	$ 348

Supplemental Financial Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest Expense, net
Interest expense	$ 1,047	$ 719	$ 429
Interest income	(82)	(33)	(38)
Interest expense, net	965	686	$ 391
Accounts Payable and Accrued Liabilities
Sales rebates	2,887	2,355
Accounts payable	1,407	1,597
Dividends payable	1,028	924
Salaries, wages and commissions	644	632
Royalty and license arrangements	434	411
Other	2,979	2,544
Accounts payable and accrued liabilities	9,379	8,463
Other Long-Term Liabilities
Contingent consideration	3,941	0
Pension and other post-employment benefits	2,085	1,949
Liabilities for unrecognized tax benefits	1,166	902
Other	1,160	844
Other long-term liabilities	$ 8,352	$ 3,695

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic EPS
Net earnings	$ 1,391	$ 1,598	$ 1,610	$ 1,354	$ 1,517	$ 1,239	$ 1,366	$ 1,022	$ 5,953	$ 5,144	$ 1,774
Earnings allocated to participating securities									30	26	9
Earnings available to common shareholders									$ 5,923	$ 5,118	$ 1,765
Weighted-average basic shares outstanding (in shares)									1,622	1,625	1,595
Basic earnings per share (in dollars per share)	$ 0.86	$ 0.97	$ 0.99	$ 0.83	$ 0.93	$ 0.75	$ 0.84	$ 0.64	$ 3.65	$ 3.15	$ 1.11
Diluted EPS
Net earnings	$ 1,391	$ 1,598	$ 1,610	$ 1,354	$ 1,517	$ 1,239	$ 1,366	$ 1,022	$ 5,953	$ 5,144	$ 1,774
Earnings allocated to participating securities									30	26	9
Earnings available to common shareholders									$ 5,923	$ 5,118	$ 1,765
Weighted-average basic shares outstanding (in shares)									1,622	1,625	1,595
Effect of dilutive securities (in shares)									9	12	15
Weighted-average diluted shares outstanding (in shares)									1,631	1,637	1,610
Diluted earnings per share (in dollars per share)	$ 0.85	$ 0.97	$ 0.98	$ 0.83	$ 0.92	$ 0.74	$ 0.83	$ 0.63	$ 3.63	$ 3.13	$ 1.10

Licensing, Acquisitions, and Other Arrangements - Additional Information (Details) shares in Millions				3 Months Ended								12 Months Ended
	Jun. 01, 2016 USD ($) compound shares	Apr. 01, 2016 USD ($)	May 26, 2015 shares	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Net revenues				$ 6,796,000,000	$ 6,432,000,000	$ 6,452,000,000	$ 5,958,000,000	$ 6,400,000,000	$ 5,944,000,000	$ 5,475,000,000	$ 5,040,000,000	$ 25,638,000,000	$ 22,859,000,000	$ 19,960,000,000
Operating loss												$ (9,384,000,000)	(7,537,000,000)	$ (3,411,000,000)
Maximum
Business Acquisition [Line Items]
Intangible asset useful life												16 years
Stemcentrx
Business Acquisition [Line Items]
Number of early-stage clinical compounds in solid tumor indications acquired \| compound	4
Shares issued as consideration (in shares) \| shares	62.4
Additional payment	$ 4,000,000,000
Contingent consideration	$ 620,000,000
Adjustment to consideration transferred												$ 273,000,000
Adjustment to deferred income tax liabilities												78,000,000
Goodwill adjustment												21,000,000
Net revenues												0
Operating loss												165,000,000
Acquisition-related compensation expense												43,000,000
Stemcentrx \| IPR&D
Business Acquisition [Line Items]
Adjustment to intangible assets												330,000,000
BI
Business Acquisition [Line Items]
Additional payment		$ 18,000,000
Contingent consideration		3,365,000,000
Adjustment to consideration transferred												(397,000,000)
Goodwill adjustment												63,000,000
Initial upfront payment		595,000,000
Milestone payments		606,000,000
Royalty payments		2,800,000,000
Measurement period adjustment												0
BI \| IPR&D
Business Acquisition [Line Items]
Adjustment to intangible assets												(460,000,000)
BI \| Maximum
Business Acquisition [Line Items]
Additional payment		$ 1,600,000,000
Pharmacyclics
Business Acquisition [Line Items]
Shares issued as consideration (in shares) \| shares			128.0
Net revenues													774,000,000
Operating loss													519,000,000
Acquisition-related compensation expense													346,000,000
Amortization of step up for inventory												$ 274,000,000	113,000,000
Intangible asset useful life												12 years
Inventory step up and intangible assets amortization													261,000,000
Transaction and integration costs													100,000,000
Acquisition related costs											$ 41,000,000
Pharmacyclics \| Selling, general and administrative
Business Acquisition [Line Items]
Acquisition related costs													294,000,000
Pharmacyclics \| Research and development
Business Acquisition [Line Items]
Acquisition related costs													152,000,000
Pharmacyclics \| Cost of products sold
Business Acquisition [Line Items]
Acquisition related costs													$ 261,000,000

Licensing, Acquisitions, and Other Arrangements - Schedule of Consideration Paid (Details) - USD ($) $ in Millions	Jun. 01, 2016	Apr. 01, 2016	May 26, 2015
Stemcentrx
Business Acquisition [Line Items]
Cash	$ 1,883
Fair value of AbbVie common stock	3,923
Contingent consideration	620
Total consideration	$ 6,426
BI
Business Acquisition [Line Items]
Cash		$ 595
Deferred consideration payable		18
Contingent consideration		3,365
Total consideration		$ 3,978
Pharmacyclics
Business Acquisition [Line Items]
Cash			$ 12,365
Fair value of AbbVie common stock			8,405
Total consideration			$ 20,770

Licensing, Acquisitions, and Other Arrangements - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Dec. 31, 2016	Jun. 01, 2016	Apr. 01, 2016	Dec. 31, 2015	May 26, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 15,416			$ 13,168		$ 5,862
Stemcentrx
Business Acquisition [Line Items]
Accounts receivable		$ 1
Prepaid expenses and other		7
Property and equipment		17
Accounts payable and accrued liabilities		(31)
Deferred income taxes		(1,933)
Other long-term liabilities		(7)
Total identifiable net assets		4,154
Goodwill		2,272
Total assets acquired and liabilities assumed		6,426
BI
Business Acquisition [Line Items]
Goodwill			$ 88
Total assets acquired and liabilities assumed			3,978
Pharmacyclics
Business Acquisition [Line Items]
Cash and equivalents					$ 877
Short-term investments					11
Accounts receivable					106
Inventories					492
Other assets					212
Accounts payable and accrued liabilities					(381)
Deferred income taxes					(6,453)
Other long-term liabilities					(254)
Total identifiable net assets					13,160
Goodwill					7,610
Total assets acquired and liabilities assumed					20,770
Developed product rights \| Pharmacyclics
Business Acquisition [Line Items]
Intangible assets					4,590
License agreements \| Pharmacyclics
Business Acquisition [Line Items]
Intangible assets					6,780
IPR&D \| Stemcentrx
Business Acquisition [Line Items]
Intangible assets		$ 6,100
IPR&D \| BI
Business Acquisition [Line Items]
Intangible assets			$ 3,890
IPR&D \| Pharmacyclics
Business Acquisition [Line Items]
Intangible assets					$ 7,180

Licensing, Acquisitions, and Other Arrangements - Proforma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stemcentrx
Business Acquisition [Line Items]
Net revenues	$ 25,641	$ 22,869
Net earnings	$ 5,907	$ 4,894
Basic earnings per share (in dollars per share)	$ 3.58	$ 2.90
Diluted earnings per share (in dollars per share)	$ 3.56	$ 2.88
Pharmacyclics
Business Acquisition [Line Items]
Net revenues	$ 23,215	$ 20,690
Net earnings	$ 5,345	$ 812
Basic earnings per share (in dollars per share)	$ 3.18	$ 0.47
Diluted earnings per share (in dollars per share)	$ 3.16	$ 0.47

Licensing, Acquisitions, and Other Arrangements - Other Licensing & Acquisitions Activity (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended			12 Months Ended
	Oct. 31, 2014	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Cash outflows related to other acquisitions and investments					$ 262	$ 964	$ 622
Acquired in-process research and development					$ 200	150	352
Other operating expense related to collaboration						0	750
Calico Life Sciences LLC
Business Acquisition [Line Items]
Other operating expense related to collaboration							750
Initial upfront payment						500	250
Research and early development term					5 years
Advance collaboration projects term					10 years
C2N Diagnostics
Business Acquisition [Line Items]
Additional payment					$ 650
Other Collaboration Arrangements
Business Acquisition [Line Items]
Acquired in-process research and development					200	50	77
Rare Pediatric Disease Priority Review Voucher From United Therapeutics Corporation
Business Acquisition [Line Items]
Research and development expense		$ 350
IPR&D \| C2N Diagnostics
Business Acquisition [Line Items]
Initial upfront payment						100
Research and development expense					35
IPR&D \| Infinity Pharmaceuticals Inc.
Business Acquisition [Line Items]
Initial upfront payment				$ 275
Research and development \| Infinity Pharmaceuticals Inc.
Business Acquisition [Line Items]
Research and development expense						130
Research and development \| Rare Pediatric Disease Priority Review Voucher From United Therapeutics Corporation
Business Acquisition [Line Items]
Research and development expense						$ 350
Maximum
Business Acquisition [Line Items]
Potential milestone payments					$ 2,600
Shire plc
Business Acquisition [Line Items]
Transaction and finance related costs							1,800
Break fee	$ 1,600
Foreign exchange gain (loss) associated with forward contracts			$ (170)				(490)
Shire plc \| Selling, general and administrative
Business Acquisition [Line Items]
Transaction and finance related costs							1,700
Shire plc \| Interest Expense
Business Acquisition [Line Items]
Transaction and finance related costs							141
Foreign currency forward exchange contracts \| Shire plc
Business Acquisition [Line Items]
Foreign exchange gain (loss) associated with forward contracts			$ (170)				$ (666)

Collaboration with Janssen Biotech, Inc. (Details) - Collaborative arrangement - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Share of collaboration development costs responsible by the entity	40.00%
Outside of United States
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenues - International	$ 252	$ 95
AbbVie's share of cost sharing expenses	$ 262	159
Janssen Biotech, Inc
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Share of collaboration development costs responsible by Janssen	60.00%
Janssen Biotech, Inc \| United States
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
AbbVie profit share costs - United States	$ 735	$ 306
Pharmacyclics \| Janssen Biotech, Inc
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone payments	$ 200

Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill
Balance at the beginning of the period	$ 13,168	$ 5,862
Additions	2,360	7,610
Foreign currency translation and other adjustments	(112)	(304)
Balance at the end pf the period	$ 15,416	$ 13,168

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Accumulated goodwill impairment losses			$ 0
Amortization of intangible assets			764,000,000	$ 419,000,000	$ 403,000,000
Intangible impairment charges		$ 37,000,000		0
Impairment charges			$ 0	$ 0
Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period			2 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period			16 years
Developed product rights
Finite-Lived Intangible Assets [Line Items]
Reclassification of indefinite lived intangible assets to finite lived intangibles			$ 7,600,000,000
Developed product rights \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Amortization period			12 years
License agreements \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Amortization period			11 years
Developed Product Rights And License Agreements
Finite-Lived Intangible Assets [Line Items]
Reduction in carrying amount of amortization			$ 396,000,000
Developed Product Rights
Finite-Lived Intangible Assets [Line Items]
Intangible impairment charges	$ 39,000,000

Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 24,273	$ 17,103
Accumulated amortization	(5,366)	(4,967)
Net carrying amount	18,907	12,136
Indefinite-lived research and development	9,990	7,573
Total intangible assets gross carrying amount	34,263	24,676
Total intangible assets, net	28,897	19,709
Developed product rights
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	16,464	9,103
Accumulated amortization	(4,256)	(3,944)
Net carrying amount	12,208	5,159
License agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	7,809	8,000
Accumulated amortization	(1,110)	(1,023)
Net carrying amount	$ 6,699	$ 6,977

Goodwill and Intangible Assets - Anticipated Annual Amortization Expense (Details) $ in Billions	Dec. 31, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 1.1
2018	1.3
2019	1.6
2020	1.8
2021	$ 2.0

Restructuring Plans (Details) - USD ($) $ in Millions	12 Months Ended
Restructuring Plans (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 52	$ 126	$ 16
Restructuring Reserve [Roll Forward]
Accrued balance beginning of the period	148	122	191
Restructuring charges	52	126	16
Payments and other adjustments	(113)	(100)	(85)
Accrued balance end of the period	87	148	122
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	52	138	23
Restructuring Reserve [Roll Forward]
Restructuring charges	$ 52	$ 138	$ 23

Debt, Credit Facilities, and Commitments and Contingencies - Summary of Long-Term Debt (Details) - USD ($)	Dec. 31, 2016	May 31, 2016	Dec. 31, 2015	Sep. 30, 2015
Debt, Credit Facilities, and Commitments and Contingencies
Long-term debt and lease obligations, gross	$ 37,077,000,000
Fair value hedges	(338,000,000)		$ (72,000,000)
Unamortized bond discounts	(110,000,000)		(85,000,000)
Unamortized deferred financing costs	(164,000,000)		(117,000,000)
Total long-term debt and lease obligations	36,465,000,000		31,265,000,000
Current portion	25,000,000		2,025,000,000
Noncurrent portion	$ 36,440,000,000		$ 29,240,000,000
1.80% notes due 2018
Debt, Credit Facilities, and Commitments and Contingencies
Interest rate percentage	1.80%
Floating rate notes due 2016
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	0.00%		1.23%
Long-term debt and lease obligations, gross	$ 0		$ 2,000,000,000
Total long-term debt and lease obligations				$ 2,000,000,000
Floating rate notes due 2018
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	1.64%		1.38%
Long-term debt and lease obligations, gross	$ 2,000,000,000		$ 2,000,000,000
Total long-term debt and lease obligations				$ 2,000,000,000
Other
Debt, Credit Facilities, and Commitments and Contingencies
Long-term debt and lease obligations, gross	$ 113,000,000		$ 139,000,000
Senior Notes
Debt, Credit Facilities, and Commitments and Contingencies
Principle amount of debt		$ 7,800,000,000.0
Senior Notes \| 1.75% notes due 2017
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	1.86%		1.86%
Long-term debt and lease obligations, gross	$ 0		$ 4,000,000,000
Interest rate percentage	1.75%
Senior Notes \| 2.00% notes due 2018
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	2.15%		2.15%
Long-term debt and lease obligations, gross	$ 1,000,000,000		$ 1,000,000,000
Interest rate percentage	2.00%
Senior Notes \| 2.90% notes due 2022
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	2.97%		2.97%
Long-term debt and lease obligations, gross	$ 3,100,000,000		$ 3,100,000,000
Interest rate percentage	2.90%
Senior Notes \| 4.40% notes due 2042
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	4.46%		4.46%
Long-term debt and lease obligations, gross	$ 2,600,000,000		$ 2,600,000,000
Interest rate percentage	4.40%
Senior Notes \| 1.80% notes due 2018
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	1.92%		1.92%
Long-term debt and lease obligations, gross	$ 3,000,000,000		$ 3,000,000,000
Interest rate percentage	1.80%
Senior Notes \| 2.50% notes due 2020
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	2.65%		2.65%
Long-term debt and lease obligations, gross	$ 3,750,000,000		$ 3,750,000,000
Interest rate percentage	2.50%
Senior Notes \| 3.20% notes due 2022
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	3.28%		3.28%
Long-term debt and lease obligations, gross	$ 1,000,000,000		$ 1,000,000,000
Interest rate percentage	3.20%
Senior Notes \| 3.60% notes due 2025
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	3.66%		3.66%
Long-term debt and lease obligations, gross	$ 3,750,000,000		$ 3,750,000,000
Interest rate percentage	3.60%
Senior Notes \| 4.50% notes due 2035
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	4.58%		4.58%
Long-term debt and lease obligations, gross	$ 2,500,000,000		$ 2,500,000,000
Interest rate percentage	4.50%
Senior Notes \| 4.70% notes due 2045
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	4.73%		4.73%
Long-term debt and lease obligations, gross	$ 2,700,000,000		$ 2,700,000,000
Interest rate percentage	4.70%
Senior Notes \| 2.30% notes due 2021
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	2.40%
Long-term debt and lease obligations, gross	$ 1,800,000,000
Interest rate percentage	2.30%
Senior Notes \| 2.85% notes due 2023
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	2.91%
Long-term debt and lease obligations, gross	$ 1,000,000,000
Interest rate percentage	2.85%
Senior Notes \| 3.20% notes due 2026
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	3.28%
Long-term debt and lease obligations, gross	$ 2,000,000,000
Interest rate percentage	3.20%
Senior Notes \| 4.30% notes due 2036
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	4.37%
Long-term debt and lease obligations, gross	$ 1,000,000,000
Interest rate percentage	4.30%
Senior Notes \| 4.45% notes due 2046
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	4.50%
Long-term debt and lease obligations, gross	$ 2,000,000,000
Interest rate percentage	4.45%
Senior Notes \| 0.38% notes due 2019 (€1,400 principal)
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	0.55%
Long-term debt and lease obligations, gross	$ 1,464,000,000
Interest rate percentage	0.38%
Principle amount of debt	$ 1,400,000,000
Senior Notes \| 1.38% notes due 2024 (€1,450 principal)
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	1.46%
Long-term debt and lease obligations, gross	$ 1,516,000,000
Interest rate percentage	1.38%
Principle amount of debt	$ 1,450,000,000
Senior Notes \| 2.13% notes due 2028 (€750 principal)
Debt, Credit Facilities, and Commitments and Contingencies
Weighted-average effective interest rate	2.18%
Long-term debt and lease obligations, gross	$ 784,000,000
Interest rate percentage	2.13%
Principle amount of debt	$ 750,000,000

Debt, Credit Facilities, and Commitments and Contingencies - Additional Information (Details)	1 Months Ended						12 Months Ended
	Nov. 30, 2016 USD ($)	May 31, 2016 USD ($)	Nov. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	May 31, 2015 USD ($)	Oct. 31, 2014 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Nov. 30, 2016 EUR (€)	Mar. 31, 2015 USD ($)
Short-term Debt [Line Items]
Debt issuance costs					$ 93,000,000
Debt repayments		$ 2,000,000,000
Debt proceeds, net		7,700,000,000
Term loan amount							$ 36,465,000,000	$ 31,265,000,000
Notes issued					16,700,000,000
Short-term borrowings							377,000,000	406,000,000
Lease expense							$ 159,000,000	146,000,000	$ 115,000,000
Senior Euro Notes
Short-term Debt [Line Items]
Debt repayments	$ 4,000,000,000
1.75% notes due 2017
Short-term Debt [Line Items]
Debt redemption charge	39,000,000
Debt redemption charge, net of tax	25,000,000
Floating rate notes due 2018
Short-term Debt [Line Items]
Term loan amount				$ 2,000,000,000
Debt term				3 years
Floating rate notes due 2016
Short-term Debt [Line Items]
Term loan amount				$ 2,000,000,000
Debt term				364 days
Long Term Variable Rate Notes Due In 2015
Short-term Debt [Line Items]
Repayment			$ 4,000,000,000
1.80% notes due 2018
Short-term Debt [Line Items]
Interest rate percentage							1.80%
Bridge Loan
Short-term Debt [Line Items]
Principle amount of debt											$ 18,000,000,000
Debt issuance costs								86,000,000
Amount drawn											$ 0
Long Term Notes Issued In 2012
Short-term Debt [Line Items]
Term loan amount							$ 6,700,000,000
Commercial Paper
Short-term Debt [Line Items]
Short-term borrowings							$ 377,000,000	$ 400,000,000
Weighted-average interest rate (as a percent)							0.60%	0.30%	0.20%
Stemcentrx
Short-term Debt [Line Items]
Proceeds used to finance acquisition		1,900,000,000
Pharmacyclics
Short-term Debt [Line Items]
Proceeds from debt issued to pay acquisition					11,500,000,000
Third Party Financial Institution
Short-term Debt [Line Items]
Proceeds used to finance share repurchase		3,800,000,000
Morgan Stanley & Co. LLC
Short-term Debt [Line Items]
Proceeds from debt issued to financing					$ 5,000,000,000
Revolving Credit Facility
Short-term Debt [Line Items]
Debt term						5 years
Borrowing capacity						$ 3,000,000,000.0
Credit agreement outstanding							$ 0	$ 0
Senior Notes
Short-term Debt [Line Items]
Principle amount of debt		7,800,000,000.0
Debt issuance costs		52,000,000
Debt discounts incurred		$ 29,000,000
Senior Notes \| Senior Euro Notes
Short-term Debt [Line Items]
Principle amount of debt \| €										€ 3,600,000,000.0
Debt issuance costs	17,000,000
Debt discounts incurred	$ 9,000,000
Senior Notes \| 1.75% notes due 2017
Short-term Debt [Line Items]
Interest rate percentage							1.75%
Senior Notes \| 1.80% notes due 2018
Short-term Debt [Line Items]
Interest rate percentage							1.80%
Minimum
Short-term Debt [Line Items]
Debt redemption period							1 month
Maximum
Short-term Debt [Line Items]
Debt redemption period							6 months

Debt, Credit Facilities, and Commitments and Contingencies - Future Minimum Operating Lease Payments, Capital Lease Payments and Debt Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Operating leases
2017	$ 131
2018	116
2019	106
2020	95
2021	77
Thereafter	449
Total obligations and commitments	974
Debt maturities and capital leases
2017	25
2018	6,023
2019	1,480
2020	3,760
2021	1,802
Thereafter	23,987
Total obligations and commitments	37,077
Fair value hedges, unamortized bond discounts and deferred financing costs	(612)
Total long-term debt and lease obligations	$ 36,465	$ 31,265

Financial Instruments and Fair Value Measures - Financial Instruments (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) company	Dec. 31, 2014 USD ($)	Dec. 31, 2016 EUR (€) company	May 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Derivative instruments, notional amount and fair value
Number of outstanding derivative instruments containing credit risk contingent features \| company		0		0
Shire plc
Derivative instruments, notional amount and fair value
Foreign exchange gain (loss) associated with forward contracts	$ (170,000,000)		$ (490,000,000)
Foreign currency forward exchange contracts \| Cash Flow Hedges
Derivative instruments, notional amount and fair value
Pretax gain to be transferred within 12 months		$ 194,000,000
Foreign currency forward exchange contracts \| Shire plc
Derivative instruments, notional amount and fair value
Foreign exchange gain (loss) associated with forward contracts	$ (170,000,000)		(666,000,000)
Designated As Hedging Instrument \| Foreign currency forward exchange contracts \| Cash Flow Hedges
Derivative instruments, notional amount and fair value
Notional amount of derivative instruments		$ 2,200,000,000				$ 1,500,000,000
Duration of forward contracts		18 months
Approximate length of time over which accumulated gains and losses will be recognized in Cost of products sold		6 months
Designated As Hedging Instrument \| Foreign currency forward exchange contracts \| Net Investment Hedges
Derivative instruments, notional amount and fair value
Notional amount of derivative instruments		$ 3,900,000,000		€ 3,500,000,000
Designated As Hedging Instrument \| Interest Rate Swap \| Fair Value Hedging
Derivative instruments, notional amount and fair value
Notional amount of derivative instruments		11,800,000,000				11,000,000,000
Others not designated as hedges \| Foreign currency forward exchange contracts
Derivative instruments, notional amount and fair value
Notional amount of derivative instruments		6,600,000,000				$ 6,800,000,000
Others not designated as hedges \| Foreign currency forward exchange contracts \| Cash Flow Hedges
Derivative instruments, notional amount and fair value
Notional amount of derivative instruments			$ 16,900,000,000
Senior Notes
Derivative instruments, notional amount and fair value
Principle amount of debt issued					$ 7,800,000,000.0
Senior Notes \| Designated As Hedging Instrument \| Net Investment Hedges
Derivative instruments, notional amount and fair value
Principle amount of debt issued \| €				€ 3,600,000,000.0
Pre-tax gain on non-derivative hedge		$ 101,000,000

Financial Instruments and Fair Value Measures - Amounts and Balance Sheet Location of Derivatives (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Derivatives in asset position	$ 225	$ 70
Derivatives in liability position	376	102
Hedging instruments \| Prepaid expenses and other \| Foreign currency forward exchange contracts
Derivative [Line Items]
Derivatives in asset position	170	33
Hedging instruments \| Prepaid expenses and other \| Interest rate swaps designated as fair value hedges
Derivative [Line Items]
Derivatives in asset position	0	9
Hedging instruments \| Accounts payable and accrued liabilities \| Foreign currency forward exchange contracts
Derivative [Line Items]
Derivatives in liability position	5
Hedging instruments \| Other long-term liabilities \| Interest rate swaps designated as fair value hedges
Derivative [Line Items]
Derivatives in liability position	338	81
Others not designated as hedges \| Prepaid expenses and other \| Foreign currency forward exchange contracts
Derivative [Line Items]
Derivatives in asset position	55	28
Others not designated as hedges \| Accounts payable and accrued liabilities \| Foreign currency forward exchange contracts
Derivative [Line Items]
Derivatives in liability position	$ 33	$ 21

Financial Instruments and Fair Value Measures - Amounts and Location of Gains (Losses) Recognized (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Gain (loss) on derivatives
Income (expense) and gain (loss) reclassified into or recorded in net earnings	$ (252)	$ 218	$ (350)
Foreign currency forward exchange contracts
Gain (loss) on derivatives
Gains (losses) recognized in other comprehensive (loss) income	292	122	193
Foreign currency forward exchange contracts \| Not designated as hedges \| Net foreign exchange loss
Gain (loss) on derivatives
Income (expense) and gain (loss) reclassified into or recorded in net earnings	6	(155)	(523)
Foreign currency forward exchange contracts \| Cash Flow Hedges
Gain (loss) on derivatives
Gains (losses) recognized in other comprehensive (loss) income	174	122	193
Foreign currency forward exchange contracts \| Cash Flow Hedges \| Cost of products sold
Gain (loss) on derivatives
Income (expense) and gain (loss) reclassified into or recorded in net earnings	20	265	(79)
Foreign currency forward exchange contracts \| Net Investment Hedges
Gain (loss) on derivatives
Gains (losses) recognized in other comprehensive (loss) income	118	0	0
Non-designated treasury rate lock agreements \| Not designated as hedges \| Other expense (income), net
Gain (loss) on derivatives
Income (expense) and gain (loss) reclassified into or recorded in net earnings	(12)	0	0
Interest rate swaps designated as fair value hedges \| Fair Value Hedging \| Interest expense, net
Gain (loss) on derivatives
Income (expense) and gain (loss) reclassified into or recorded in net earnings	$ (266)	$ 108	$ 252

Financial Instruments and Fair Value Measures - Basis Used to Measure Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Assets
Equity securities	$ 2,050
Foreign currency contracts - asset position	225	$ 70
Liabilities
Foreign currency contracts - liability position	376	102
Fair Value Measurements Recurring
Assets
Cash and equivalents	5,100	8,399
Debt securities	1,974
Equity securities	76	111
Interest rate hedges		9
Total assets	8,389	8,588
Liabilities
Interest rate hedges	338	81
Contingent consideration	4,213
Total liabilities	4,589	102
Fair Value Measurements Recurring \| Foreign Currency Contract
Assets
Foreign currency contracts - asset position	225	61
Liabilities
Foreign currency contracts - liability position	38	21
Fair Value Measurements Recurring \| Bank Time Deposits
Assets
Time deposits	1,014	8
Fair Value Measurements Recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Cash and equivalents	1,191	798
Debt securities	0
Equity securities	76	111
Total assets	1,267	909
Liabilities
Contingent consideration	0
Fair Value Measurements Recurring \| Significant other observable inputs (Level 2)
Assets
Cash and equivalents	3,909	7,601
Debt securities	1,974
Interest rate hedges		9
Total assets	7,122	7,679
Liabilities
Interest rate hedges	338	81
Contingent consideration	0
Total liabilities	376	102
Fair Value Measurements Recurring \| Significant other observable inputs (Level 2) \| Foreign Currency Contract
Assets
Foreign currency contracts - asset position	225	61
Liabilities
Foreign currency contracts - liability position	38	21
Fair Value Measurements Recurring \| Significant other observable inputs (Level 2) \| Bank Time Deposits
Assets
Time deposits	1,014	$ 8
Fair Value Measurements Recurring \| Significant unobservable Inputs (Level 3)
Assets
Debt securities	0
Liabilities
Contingent consideration	4,213
Total liabilities	$ 4,213

Financial Instruments and Fair Value Measures - Fair Value Measures (Details) - Changes Measurement - Stemcentrx and BI $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Change in assumed discount rate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in assumed discount rate that would effect contingent consideration	50.00%
Potential change in fair value of contingent consideration	$ 180
Change in assumed probability rate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Potential change in fair value of contingent consideration	$ 360
Change in assumed probability rate that would effect contingent consideration	5.00%

Financial Instruments and Fair Value Measures - Reconciliation of the Fair Value Measurements (Details)	12 Months Ended
	Dec. 31, 2016 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfer of assets from level 1 to level 2	$ 0
Transfer of assets from level 2 to level 1	0
Transfer of liabilities from level 1 to level 2	0
Transfer of liabilities from level 2 to level 1	0
Stemcentrx and BI
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at the beginning of the period	0
Additions	3,985,000,000
Change in fair value recognized in net earnings	228,000,000
Fair value at the end of the period	$ 4,213,000,000

Financial Instruments and Fair Value Measures - Basis Used to Measure Approximate Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Book Value
Assets
Investments	$ 42	$ 34
Total assets	42	34
Liabilities
Short-term borrowings	377	406
Current portion of long-term debt and lease obligations	25	2,025
Long-term debt and lease obligations, excluding fair value hedges	36,778	29,312
Total liabilities	37,180	31,743
Estimate of Fair Value Measurement
Assets
Investments	42	37
Total assets	42	37
Liabilities
Short-term borrowings	377	406
Current portion of long-term debt and lease obligations	25	2,016
Long-term debt and lease obligations, excluding fair value hedges	36,664	29,143
Total liabilities	37,066	31,565
Estimate of Fair Value Measurement \| Quoted prices in active markets for identical assets (Level 1)
Assets
Investments		0
Total assets		0
Liabilities
Current portion of long-term debt and lease obligations		0
Long-term debt and lease obligations, excluding fair value hedges	34,589	27,061
Total liabilities	34,589	27,061
Estimate of Fair Value Measurement \| Significant other observable inputs (Level 2)
Assets
Investments	5	0
Total assets	5	0
Liabilities
Short-term borrowings	377	406
Current portion of long-term debt and lease obligations	25	2,016
Long-term debt and lease obligations, excluding fair value hedges	2,075	2,082
Total liabilities	2,477	4,504
Estimate of Fair Value Measurement \| Significant unobservable Inputs (Level 3)
Assets
Investments	37	37
Total assets	$ 37	$ 37

Financial Instruments and Fair Value Measures - Available-for-sale Securities, by Type (Details)	12 Months Ended
	Dec. 31, 2016 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Debt security maturity period	5 years
Asset backed securities	$ 1,997,000,000
Gross unrealized, Gains	62,000,000
Gross unrealized, Losses	(9,000,000)
Equity securities	2,050,000,000
Other than temporary impairments	0
Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Debt securities	309,000,000
Asset backed securities
Schedule of Available-for-sale Securities [Line Items]
Asset backed securities	891,000,000
Gross unrealized, Gains	1,000,000
Gross unrealized, Losses	(4,000,000)
Equity securities	888,000,000
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Asset backed securities	961,000,000
Gross unrealized, Gains	1,000,000
Gross unrealized, Losses	(2,000,000)
Equity securities	960,000,000
Other debt securities
Schedule of Available-for-sale Securities [Line Items]
Asset backed securities	127,000,000
Gross unrealized, Gains	0
Gross unrealized, Losses	(1,000,000)
Equity securities	126,000,000
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Asset backed securities	18,000,000
Gross unrealized, Gains	60,000,000
Gross unrealized, Losses	(2,000,000)
Equity securities	$ 76,000,000

Financial Instruments and Fair Value Measures - Concentrations of Risk (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016 USD ($) / $	Dec. 31, 2016 USD ($) wholesaler / $	Dec. 31, 2015 USD ($) / $	Dec. 31, 2014	Mar. 10, 2016 / $
Concentration of Risk
Exchange rate					10
Number of principal customers \| wholesaler		3
Official Rate
Concentration of Risk
Exchange rate		673	6.3
SICAD
Concentration of Risk
Exchange rate			13.5
SIMADI
Concentration of Risk
Exchange rate			200
DICOM
Concentration of Risk
Exchange rate	270
Asset devaluation loss \| $	$ 298
Accounts Receivable
Concentration of Risk
Number of principal customers \| wholesaler		3
Accounts Receivable \| Geographic Risk
Concentration of Risk
Concentrations risk (as a percent)		51.00%	51.00%
Net revenues
Concentration of Risk
Number of principal customers \| wholesaler		3
Net revenues \| HUMIRA
Concentration of Risk
Concentrations risk (as a percent)		63.00%	61.00%	63.00%
Greece, Portugal, Italy, and Spain \| Geographic Risk
Concentration of Risk
Net governmental receivables outstanding \| $		$ 244	$ 525
SAUDI ARABIA \| Geographic Risk
Concentration of Risk
Net governmental receivables outstanding \| $		122
RUSSIAN FEDERATION \| Geographic Risk
Concentration of Risk
Net governmental receivables outstanding \| $		$ 110

Post-Employment Benefits - Additional Information (Details) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
	Feb. 17, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Company contributions		$ 150	$ 150	$ 370
Fair value of plan assets		4,572	4,174
Accumulated benefit obligation		5,300	4,800
Accumulated benefit obligations in excess of plan assets - ABO		3,200
Accumulated benefit obligations in excess of plan assets - PBO		3,700
Accumulated benefit obligations in excess of plan assets - Aggregate plan assets		2,200
Reduction of defined benefit plan net periodic benefit cost		$ 41
Ultimate per capita trend rate for health care costs from 2064 and thereafter		4.50%
Ultimate per capita trend rate for health care costs from 2064 and thereafter (as a percent)		4.50%
Subsequent Event
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Company contributions	$ 150
Foreign Pension Plans Defined Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		$ 1,700	1,500
Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Company contributions		273	217
Fair value of plan assets		4,572	4,174	4,173
Post-employment plan actuarial loss and prior service cost		103
Other post-employment plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Company contributions		12	11
Post-employment plan actuarial loss and prior service cost		$ 3
Post-retirement Health Care Obligations - Pre Sixty Five Years Of Age
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annual rate of increase in the per capita cost of covered health care obligation benefits assumed in the current year (as a percent)		6.80%
Annual rate of increase in the per capita cost of covered health care cost benefits assumed in the current year (as a percent)		7.30%
Post-retirement Health Care Obligations - Post Sixty Five Years Of Age
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annual rate of increase in the per capita cost of covered health care obligation benefits assumed in the current year (as a percent)		7.80%
Annual rate of increase in the per capita cost of covered health care cost benefits assumed in the current year (as a percent)		8.30%
Equity Securities \| Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target investment allocations for Pension Plan (as a percent)		35.00%
Debt Securities \| Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target investment allocations for Pension Plan (as a percent)		20.00%
Defined Benefit Plan Other Assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		$ 61	93
Defined Benefit Plan Other Assets \| Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target investment allocations for Pension Plan (as a percent)		45.00%
AbbVie Savings Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expenses recorded		$ 75	$ 73	$ 67

Post-Employment Benefits - Benefit Plan Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair value of plan assets
Beginning of period	$ 4,174
Company contributions	150	$ 150	$ 370
End of period	4,572	4,174
Amounts recognized on the consolidated balance sheets
Other long-term liabilities	(2,085)	(1,949)
Defined benefit plans
Projected benefit obligations
Beginning of period	5,387	5,681
Service cost	210	227	173
Interest cost	201	219	217
Employee contributions	1	2
Actuarial loss (gain)	313	(467)
Benefits paid	(163)	(158)
Other, primarily foreign currency translation adjustments	(120)	(117)
End of period	5,829	5,387	5,681
Fair value of plan assets
Beginning of period	4,174	4,173
Actual return (loss) on plan assets	383	(25)
Company contributions	273	217
Employee contributions	1	2
Benefits paid	(163)	(158)
Other, primarily foreign currency translation adjustments	(96)	(35)
End of period	4,572	4,174	4,173
Funded status end of period	(1,257)	(1,213)
Amounts recognized on the consolidated balance sheets
Other assets	240	214
Accounts payable and accrued liabilities	(25)	(24)
Other long-term liabilities	(1,472)	(1,403)
Net obligation	(1,257)	(1,213)
Actuarial loss, net	2,118	1,939
Prior service cost (credit)	14	16
Accumulated other comprehensive loss	2,132	1,955
Other post-employment plans
Projected benefit obligations
Beginning of period	557	538
Service cost	25	25	22
Interest cost	24	23	22
Actuarial loss (gain)	33	(17)
Benefits paid	(12)	(11)
Other, primarily foreign currency translation adjustments	0	(1)
End of period	627	557	$ 538
Fair value of plan assets
Company contributions	12	11
Benefits paid	(12)	(11)
Funded status end of period	(627)	(557)
Amounts recognized on the consolidated balance sheets
Accounts payable and accrued liabilities	(14)	(11)
Other long-term liabilities	(613)	(546)
Net obligation	(627)	(557)
Actuarial loss, net	179	154
Prior service cost (credit)	(37)	(45)
Accumulated other comprehensive loss	$ 142	$ 109

Post-Employment Benefits - Pretax Gains and Losses Included in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Actuarial loss (gain)	$ 284	$ (117)	$ 1,127
Prior service cost (credit)		0	1
Amortization of actuarial loss and prior service cost (credit)	(85)	(127)	(68)
Foreign exchange gain	(22)	(37)	(41)
Total pre-tax loss (gain) recognized in other comprehensive loss	177	(281)	1,019
Other post-employment plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Actuarial loss (gain)	33	(17)	111
Prior service cost (credit)		0	(13)
Amortization of actuarial loss and prior service cost (credit)	0	(2)	3
Total pre-tax loss (gain) recognized in other comprehensive loss	$ 33	$ (19)	$ 101

Post-Employment Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 210	$ 227	$ 173
Interest cost	201	219	217
Expected return on plan assets	(354)	(325)	(302)
Amortization of actuarial loss (gain) and prior service cost (credit)	85	127	68
Net periodic benefit cost	142	248	156
Other post-employment plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	25	25	22
Interest cost	24	23	22
Amortization of actuarial loss (gain) and prior service cost (credit)	0	2	(2)
Net periodic benefit cost	$ 49	$ 50	$ 42

Post-Employment Benefits - Weighted-Average Assumptions Used in Determining Benefit Obligation at Measurement Date (Details)	Dec. 31, 2016	Dec. 31, 2015
Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	3.90%	4.40%
Rate of compensation increases	4.40%	4.40%
Other post-employment plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	4.70%	4.90%

Post-Employment Benefits - Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate for determining service cost	4.40%	3.90%	4.90%
Discount rate for determining interest cost	4.00%	3.90%	4.90%
Expected long-term rate of return on plan assets	7.90%	7.80%	7.90%
Expected rate of change in compensation	4.40%	4.40%	5.00%
Other post-employment plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate for determining service cost	5.10%	4.50%	5.30%
Discount rate for determining interest cost	4.30%	4.50%	5.30%

Post-Employment Benefits - Effect of a One Percent Change in Assumed Health Care Cost Trend Rates (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Postemployment Benefits [Abstract]
Effect of one percentage point increase, Service cost and interest cost	$ 11
Effect of one percentage point decrease, Service cost and interest cost	(9)
Effect of one percentage point increase, Projected benefit obligation	120
Effect of one percentage point decrease, Projected benefit obligation	$ (95)

Post-Employment Benefits - Expected Defined Benefit and Other Post-Employment Plan Payments (Details) $ in Millions	Dec. 31, 2016 USD ($)
Defined benefit plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2017	$ 174
2018	185
2019	199
2020	211
2021	226
2022 to 2026	1,351
Other post-employment plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2017	14
2018	17
2019	20
2020	20
2021	22
2022 to 2026	$ 145

Equity - Stock based compensation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (in shares)	100,000,000
Retirement-eligible employees' age	55 years
Minimum number of years of services	10 years
Pre-tax compensation expense	$ 396	$ 282	$ 241
Tax benefit	104	89	73
After-tax compensation expense	292	193	168
Realized excess tax benefits from the exercise of stock options	55	61	56
Cost of products sold
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	22	21	16
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	193	111	78
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	$ 181	$ 150	$ 147

Equity - Stock Options (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Millions		12 Months Ended
	Jun. 01, 2016 shares	Dec. 31, 2016 USD ($) company $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term		10 years
Incremental vesting \| company		0.33
Vesting period		3 years
Exercise price for awards granted as percentage of market value on the date of grant		100.00%
Weighted-average grant-date fair value of the stock options granted (in dollars per share) \| $ / shares		$ 9.29	$ 9.96	$ 9.83
Options
Outstanding at the beginning of the period (in shares) \| shares		23,569
Granted (in shares) \| shares		1,143
Granted in acquisition (in shares) \| shares		1,076
Exercised (in shares) \| shares		(9,720)
Lapsed (in shares) \| shares		(106)
Outstanding at the end of the period (in shares) \| shares		15,962	23,569
Exercisable at the end of the period (in shares) \| shares		12,945
Weighted- average exercise price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares		$ 30.64
Granted (in dollars per share) \| $ / shares		54.99
Granted in acquisition (in dollars per share) \| $ / shares		12.85
Exercised (in dollars per share) \| $ / shares		26.71
Lapsed (in dollars per share) \| $ / shares		23.62
Outstanding at the end of the period (in dollars per share) \| $ / shares		33.63	$ 30.64
Exercisable at the end of the period (in dollars per share) \| $ / shares		$ 30.76
Weighted- average remaining life (in years)
Outstanding		3 years 8 months 12 days	3 years
Exercisable		2 years 6 months
Aggregate intrinsic value
Outstanding \| $		$ 463	$ 674
Exercisable \| $		412
Aggregate intrinsic value of options exercised \| $		325	$ 216	$ 253
Total fair value of options vested \| $		28
Unrecognized compensation cost \| $		$ 34
Period for recognition of unrecognized compensation cost		2 years
Stemcentrx
Aggregate intrinsic value
Number of options issued to holders of acquired company's unvested options \| shares	1,100

Equity - RSAs & RSUs and Performance Shares (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) company $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($)
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental vesting \| company	0.33
Vesting period	3 years
Performance-based RSAs and RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental vesting \| company	0.33
Vesting period	3 years
Expiration period	5 years
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental vesting \| company	0.33
Performance period	3 years
Performance-based shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Common stock received for each vested award (in shares)	1
RSAs, RSUs and Performance Shares
Share units
Shares units outstanding at the beginning of the period (in shares)	12,490,000
Granted (in shares)	5,561,000
Vested (in shares)	(6,559,000)
Forfeited (in shares)	(777,000)
Shares units outstanding at the end of the period (in shares)	10,715,000	12,490,000
Weighted-average grant date fair value
Weighted average fair value outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 51.66
Granted (in dollars per share) \| $ / shares	55.28
Vested (in dollars per share) \| $ / shares	46.24
Forfeited (in dollars per share) \| $ / shares	57.00
Weighted average fair value outstanding at the end of the period (in dollars per share) \| $ / shares	$ 56.47	$ 51.66
Fair market value of awards vested \| $	$ 362	$ 335	$ 338
Unrecognized compensation cost \| $	$ 228
Period for recognition of unrecognized compensation cost	2 years

Equity - Cash Dividends (Details) - $ / shares	Oct. 28, 2016	Sep. 09, 2016	Jun. 16, 2016	Feb. 18, 2016	Oct. 30, 2015	Sep. 11, 2015	Jun. 18, 2015	Feb. 19, 2015
Equity [Abstract]
Dividends paid (in dollars per share)	$ 0.64	$ 0.57	$ 0.57	$ 0.57	$ 0.57	$ 0.51	$ 0.51	$ 0.51

Equity - Share Repurchase Program (Details) - USD ($) shares in Millions				12 Months Ended
	Feb. 16, 2017	Jun. 01, 2016	May 26, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 30, 2016	Mar. 31, 2015
Stock Repurchase Program
Shares repurchased (in shares)				34.0	46.0	9.0
Payment for shares repurchased on the open market				$ 2,100,000,000	$ 2,800,000,000	$ 550,000,000
Remaining authorized repurchase amount				$ 36,000,000
Subsequent Event
Stock Repurchase Program
Increase in authorized share repurchase amount	$ 5,000,000,000
Stemcentrx
Accelerated Share Repurchases [Line Items]
Amount authorized under stock repurchase program							$ 4,000,000,000.0
Purchase amount		$ 3,800,000,000
Initial delivery of shares (in shares)		54.4
Final delivery of shares (in shares)		5.4
Pharmacyclics
Accelerated Share Repurchases [Line Items]
Amount authorized under stock repurchase program								$ 5,000,000,000.0
Purchase amount			$ 5,000,000,000
Initial delivery of shares (in shares)			68.1
Final delivery of shares (in shares)			5.0

Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 3,945	$ 1,742	$ 4,492
Other comprehensive loss	(25)	(530)	(1,589)
Ending balance	4,636	3,945	1,742
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(2,561)	(2,031)	(442)
Other comprehensive income (loss) before reclassifications	(52)	(350)	(1,712)
Net losses (gains) reclassified from accumulated other comprehensive loss	27	(180)	123
Other comprehensive loss	(25)	(530)	(1,589)
Ending balance	(2,586)	(2,561)	(2,031)
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,270)	(603)	470
Other comprehensive income (loss) before reclassifications	(165)	(667)	(1,073)
Other comprehensive loss	(165)	(667)	(1,073)
Ending balance	(1,435)	(1,270)	(603)
Net investment hedging activities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	0	0
Other comprehensive income (loss) before reclassifications	140	0	0
Other comprehensive loss	140	0	0
Ending balance	140	0	0
Pension and post- employment benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,378)	(1,608)	(827)
Other comprehensive income (loss) before reclassifications	(194)	147	(827)
Net losses (gains) reclassified from accumulated other comprehensive loss	59	83	46
Other comprehensive loss	(135)	230	(781)
Ending balance	(1,513)	(1,378)	(1,608)
Unrealized gains (losses) on marketable securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	47	3	2
Other comprehensive income (loss) before reclassifications	7	48	1
Net losses (gains) reclassified from accumulated other comprehensive loss	(8)	(4)
Other comprehensive loss	(1)	44	1
Ending balance	46	47	3
Cash flow hedging activities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	40	177	(87)
Other comprehensive income (loss) before reclassifications	160	122	187
Net losses (gains) reclassified from accumulated other comprehensive loss	(24)	(259)	77
Other comprehensive loss	136	(137)	264
Ending balance	$ 176	$ 40	$ 177

Equity - Amounts Reclassified Out Of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pension and post- employment benefits
Significant amounts reclassified out of each component of AOCI
Reclassifications from accumulated other comprehensive income, before tax	$ 85	$ 129	$ 65
Tax expense (benefit)	(26)	(46)	(19)
Total reclassifications, net of tax	59	83	46
Cash flow hedging activities
Significant amounts reclassified out of each component of AOCI
Reclassifications from accumulated other comprehensive income, before tax	(20)	(265)	79
Tax expense (benefit)	(4)	6	(2)
Total reclassifications, net of tax	$ (24)	$ (259)	$ 77

Equity - Other (Details)	Dec. 31, 2016 $ / shares shares
Equity [Abstract]
Preferred stock authorized (in shares)	200,000,000
Preferred stock par value (in dollars per share) \| $ / shares	$ 0.01
Preferred stock issued (in shares)	0

Income Taxes - Earnings Before Income Tax Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Domestic	$ (1,651)	$ (1,038)	$ (3,245)
Foreign	9,535	7,683	5,614
Total earnings before income tax expense	$ 7,884	$ 6,645	$ 2,369

Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current
Domestic	$ 2,229	$ 1,036	$ 634
Foreign	498	313	341
Total current taxes	2,727	1,349	975
Deferred
Domestic	(792)	141	(301)
Foreign	(4)	11	(79)
Total deferred taxes	(796)	152	(380)
Total income tax expense	$ 1,931	$ 1,501	$ 595

Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
	Dec. 07, 2016	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Statutory tax rate			35.00%	35.00%	35.00%
Effect of foreign operations			(10.30%)	(9.40%)	(11.30%)
U.S. tax credits			(4.40%)	(4.50%)	(8.90%)
Branded prescription drug fee			0.50%	0.70%	3.70%
Tax law change related to foreign currency			2.40%	0.00%	0.00%
Valuation allowances			0.00%	(1.60%)	3.60%
All other, net			1.30%	2.40%	3.00%
Effective tax rate			24.50%	22.60%	25.10%
Operating Loss Carryforwards [Line Items]
Expense related to tax effect of regulations of foreign operation foreign currency gains	$ 187	$ 187
Tax rate reconciliation due to additional expenses					$ 129
State And Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Tax rate reconciliation due to tax (benefit) or expenses relating to valuation allowance				$ (103)	$ 129

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets
Compensation and employee benefits	$ 665	$ 584
Accruals and reserves	378	368
Chargebacks and rebates	473	472
Deferred revenue	391	372
Depreciation	24	45
Net operating losses and other credit carryforwards	151	282
Other	71	316
Total deferred tax assets	2,153	2,439
Valuation allowances	(76)	(70)
Total net deferred tax assets	2,077	2,369
Deferred tax liabilities
Excess of book basis over tax basis of intangible assets	(5,375)	(4,459)
Excess of book basis over tax basis in investments	(3,367)	(2,958)
Total deferred tax liabilities	(8,742)	(7,417)
Net deferred tax liabilities	(6,665)	$ (5,048)
Tax Credit Carryforward [Line Items]
Undistributed foreign earnings, indefinitely reinvested for continued use in foreign operations	29,000
State And Local Jurisdiction
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	847
Tax credit carryforwards	188
Foreign Country
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	198
Operating loss carryforwards with expiration between 2018 and 2023	$ 166

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Unrecognized Tax Benefits
Balance at the beginning of the period	$ 954	$ 421	$ 247
Increase due to current year tax positions	118	187	115
Increase due to prior year tax positions	111	369	67
Decrease due to prior year tax positions	(7)	(15)	(6)
Lapse of statutes of limitations	(8)	(8)	(2)
Balance at the end of the period	1,168	954	421
Net amount of potential tax benefits that would impact the entity's effective tax rate	1,100	901
Reimbursement receivable for unrecognized tax benefits and related interest and penalties for periods after separation	96
Interest and penalties	35	13	10
Accrued interest and penalties	112	$ 83	$ 25
Reasonably possible amount that gross unrecognized tax benefits may change within the next twelve months, high end of range	$ 201

Legal Proceedings and Contingencies (Details) $ in Millions	1 Months Ended			12 Months Ended
Legal Proceedings and Contingencies (Details) $ in Millions	Jun. 30, 2016 investment_fund	Nov. 30, 2014 company	Sep. 30, 2014 company	Dec. 31, 2016 USD ($) company lawsuit class_action claim	Dec. 31, 2015 USD ($)
Legal Proceedings and Contingencies
Recorded accrual balance for litigation \| $				$ 225	$ 170
Number of cases pending \| claim				698
Number of individual putative class action lawsuit \| company		5
Testosterone Replacement Therapy Products Liability Litigation
Legal Proceedings and Contingencies
Numbers of cases are consolidated for pre-trial purposes \| claim				3,941
Number of cases pending \| claim				217
Elliott Associates, L.P.
Legal Proceedings and Contingencies
Number of parties to lawsuit (in investment funds) \| investment_fund	5
Depakote
Legal Proceedings and Contingencies
Percentage of pending claims in US District Courts				90.00%
Patent Litigation \| Andro Gel Antitrust Litigation
Legal Proceedings and Contingencies
Number of generic companies with whom certain litigation related agreements were entered into \| company				3
Number of individual plaintiff lawsuits \| lawsuit				4
Number of purported class actions \| class_action				3
Patent Litigation \| Niaspan
Legal Proceedings and Contingencies
Number of individual plaintiff lawsuits \| lawsuit				4
Number of purported class actions \| class_action				2
Allegation Of Proposed Generic Products Infringing Patents And Seeking Declaratory And Injunctive Relief \| Andro Gel Antitrust Litigation
Legal Proceedings and Contingencies
Number of generic companies with whom certain litigation related agreements were entered into \| company			2

Segment and Geographic Area Information - Net Revenues by Product (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) wholesaler segment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment									1
Number of principal customers \| wholesaler									3
Segment Information
Net revenues	$ 6,796	$ 6,432	$ 6,452	$ 5,958	$ 6,400	$ 5,944	$ 5,475	$ 5,040	$ 25,638	$ 22,859	$ 19,960
HUMIRA
Segment Information
Net revenues									16,078	14,012	12,543
IMBRUVICA
Segment Information
Net revenues									1,832	754	0
VIEKIRA
Segment Information
Net revenues									1,522	1,639	48
Lupron
Segment Information
Net revenues									821	826	778
Synagis
Segment Information
Net revenues									730	740	835
Synthroid
Segment Information
Net revenues									763	755	709
Creon
Segment Information
Net revenues									730	632	516
AndroGel
Segment Information
Net revenues									675	694	934
Kaletra
Segment Information
Net revenues									549	700	870
Sevoflurane
Segment Information
Net revenues									428	474	550
Duodopa
Segment Information
Net revenues									293	231	220
All other
Segment Information
Net revenues									$ 1,217	$ 1,402	$ 1,957

Segment and Geographic Area Information - Net Revenues to External Customers by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 6,796	$ 6,432	$ 6,452	$ 5,958	$ 6,400	$ 5,944	$ 5,475	$ 5,040	$ 25,638	$ 22,859	$ 19,960
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									15,947	13,561	10,845
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									1,104	1,082	1,035
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									776	688	722
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									770	599	581
France
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									713	597	584
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									624	551	551
Spain
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									589	618	534
Italy
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									523	452	432
Brazil
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									355	376	435
The Netherlands
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									352	334	345
All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									$ 3,885	$ 4,001	$ 3,896

Segment and Geographic Area Information - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 2,604	$ 2,565
United States and Puerto Rico
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	1,822	1,868
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	504	513
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 278	$ 184

Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended								12 Months Ended
	Dec. 07, 2016	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Data [Line Items]
Net revenues		$ 6,796	$ 6,432	$ 6,452	$ 5,958	$ 6,400	$ 5,944	$ 5,475	$ 5,040	$ 25,638	$ 22,859	$ 19,960
Gross margin		5,241	4,928	5,047	4,589	4,925	4,777	4,559	4,098
Net earnings		$ 1,391	$ 1,598	$ 1,610	$ 1,354	$ 1,517	$ 1,239	$ 1,366	$ 1,022	$ 5,953	$ 5,144	$ 1,774
Basic earnings per share (in dollars per share)		$ 0.86	$ 0.97	$ 0.99	$ 0.83	$ 0.93	$ 0.75	$ 0.84	$ 0.64	$ 3.65	$ 3.15	$ 1.11
Diluted earnings per share (in dollars per share)		0.85	0.97	0.98	0.83	0.92	0.74	0.83	0.63	3.63	3.13	1.10
Cash dividends declared per common share (in dollars per share)		$ 0.64	$ 0.57	$ 0.57	$ 0.57	$ 0.57	$ 0.51	$ 0.51	$ 0.51	$ 2.35	$ 2.10	$ 1.75
Change in fair value of contingent consideration		$ 85	$ 104							$ 228	$ 0	$ 0
Expense related to tax effect of regulations of foreign operation foreign currency gains	$ 187	$ 187
Increase litigation reserves						$ 101
C2N Diagnostics
Quarterly Financial Data [Line Items]
Terminated proposed combination expense									$ 100
Rare Pediatric Disease Priority Review Voucher From United Therapeutics Corporation
Quarterly Financial Data [Line Items]
Research and development expense							$ 350
Infinity Pharmaceuticals Inc
Quarterly Financial Data [Line Items]
Payments to collaborators							83
Pharmacyclics
Quarterly Financial Data [Line Items]
Net revenues											$ 774
Acquisition related costs									41
Acquisition and integration costs						$ 68	$ 85	$ 215
Stemcentrx and BI
Quarterly Financial Data [Line Items]
Acquisition and finance related costs				$ 122
Shire plc
Quarterly Financial Data [Line Items]
Foreign exchange gain (loss)									$ 170			490
Acquisition and finance related costs												$ 1,800
Venezuelan bolívar fuerte
Quarterly Financial Data [Line Items]
Foreign exchange gain (loss)					$ 298

Post-Employment Benefits - Defined Benefit Pension Plan Assets (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total assets measured at NAV	$ 3,020	$ 2,745
Fair value of plan assets	4,572	4,174
U.S. Large Cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	519	542
U.S. mid cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	63	35
International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	97	100
U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	94	93
Corporate debt instruments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	243	203
Non-U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	32	35
Other fixed income securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	184	126
Absolute return funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	228	194
Real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	31	8
Other real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	61	93
Total
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	1,552	1,429
Quoted prices in active markets for identical assets (Level 1) \| U.S. Large Cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	519	542
Quoted prices in active markets for identical assets (Level 1) \| U.S. mid cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	63	35
Quoted prices in active markets for identical assets (Level 1) \| International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	97	100
Quoted prices in active markets for identical assets (Level 1) \| U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	15
Quoted prices in active markets for identical assets (Level 1) \| Corporate debt instruments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	162	124
Quoted prices in active markets for identical assets (Level 1) \| Non-U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	30	33
Quoted prices in active markets for identical assets (Level 1) \| Other fixed income securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	179	122
Quoted prices in active markets for identical assets (Level 1) \| Absolute return funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	3	2
Quoted prices in active markets for identical assets (Level 1) \| Real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	31	8
Quoted prices in active markets for identical assets (Level 1) \| Other real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	61	93
Quoted prices in active markets for identical assets (Level 1) \| Total
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	1,145	1,074
Significant other observable inputs (Level 2) \| U.S. Large Cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant other observable inputs (Level 2) \| U.S. mid cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant other observable inputs (Level 2) \| International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant other observable inputs (Level 2) \| U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	94	78
Significant other observable inputs (Level 2) \| Corporate debt instruments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	81	79
Significant other observable inputs (Level 2) \| Non-U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	2	2
Significant other observable inputs (Level 2) \| Other fixed income securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	5	4
Significant other observable inputs (Level 2) \| Absolute return funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	225	192
Significant other observable inputs (Level 2) \| Real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant other observable inputs (Level 2) \| Other real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant other observable inputs (Level 2) \| Total
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	407	355
Significant unobservable Inputs (Level 3) \| U.S. Large Cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant unobservable Inputs (Level 3) \| U.S. mid cap
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant unobservable Inputs (Level 3) \| International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant unobservable Inputs (Level 3) \| U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant unobservable Inputs (Level 3) \| Corporate debt instruments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant unobservable Inputs (Level 3) \| Non-U.S. government securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets
Significant unobservable Inputs (Level 3) \| Other fixed income securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant unobservable Inputs (Level 3) \| Absolute return funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant unobservable Inputs (Level 3) \| Real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	0	0
Significant unobservable Inputs (Level 3) \| Other real assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets		0
Significant unobservable Inputs (Level 3) \| Total
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair value of plan assets	$ 0	$ 0