In Q1 2024, the spike in **cash and cash equivalents** was primarily driven by strong **financing activities**. Specifically, AbbVie recorded a **$10,819 million** cash inflow from the issuance of unsecured senior notes and related financing arrangements, which more than offset the **$9,588 million** cash used in investing activities during the acquisition of ImmunoGen. Additionally, **operating activities** contributed **$4,040 million** in cash, further supporting the increase, resulting in a rise from **$12,814 million** at the end of December 2023 to **$18,067 million** by the end of March 2024.  **[0001551152-24-000020_abbv-20240331.htm:37]** 

Why did Cash and Cash Equivalents spike in Q1 2024?

The drop in Cash and Cash Equivalents in Q3 2024 was driven primarily by **acquisition-related cash expenses**—including the acquisitions of ImmunoGen, Inc. and Cerevel Therapeutics Holdings, Inc.—which necessitated a huge cash outlay, along with **substantial net cash outflows from investing activities** (including investments, acquisitions, and capital expenditures) and **increased financing outflows** from debt repayments and **cash dividend payments**. In addition, the **operating cash flow** decreased due to timing of working capital, higher contingent consideration payments, and acquisition-related expenses.  **[0001551152-24-000040_abbv-20240930.htm:46]** 

What drove the sharp drop in Cash and Cash Equivalents in Q3 2024?

The substantial increase in total assets in Q1 2024 to **$148,874 million** was primarily driven by several factors. **Cash and equivalents** increased from **$12,814 million** to **$18,067 million**, significantly boosting the asset base. Additionally, **intangible assets** rose from **$55,610 million** to **$62,225 million**, and **goodwill** increased from **$32,293 million** to **$33,426 million**; both of these increases were largely attributed to the acquisition of ImmunoGen, which was completed on February 12, 2024.  **[0001551152-24-000020_abbv-20240331.htm:2]** **[0001551152-24-000020_abbv-20240331.htm:28]** 

What contributed to the increase in Total Assets in Q1 2024?

The documents indicate that the **current portion of long-term debt surged** in Q2 2024 from **$7,191 million** at the end of 2023 to **$12,586 million** by June 30, 2024. However, they do not provide specific reasons for this increase. They note that such changes are typically due to factors like the **reclassification of long-term debt to current liabilities as it approaches maturity**, **new debt issuances**, or **changes in lease obligations**.  **[0001551152-24-000031_abbv-20240630.htm:2]** 

Why did the current portion of long-term debt surge in Q2 2024?

77e832f282118e8f3c4a392a64d2c45f191e58a45a25a2de44b91424a63d0322

The operating earnings turned negative in Q4 2024 primarily due to a combination of **substantial increases in expenses**. Notably, **R&D expenses** surged from **$1,927 million** to **$6,774 million**, largely driven by a **$4,476 million intangible asset impairment**. In addition, the impact of **acquired IPR&D and milestones expense** rose significantly to **$1,574 million** from **$282 million**, and **SG&A expenses** climbed from **$3,193 million** to **$3,855 million**. These cost increases, along with a minor unfavorable impact from other operating income, collectively resulted in a negative operating earnings outcome for Q4 2024.  **[20250131CG08669:8]** **[0001551152-25-000011_abbv-20241231xexhibit991.htm:8]** 

Why did Operating earnings turn negative in Q4 2024?

In Q4 2024, AbbVie’s R&D spending spiked due to several key factors. The company recorded a **$4.5 billion impairment charge** on the emraclidine intangible asset from the Cerevel Therapeutics acquisition, significantly increasing its R&D expenses. Additionally, the company boosted funding for its pipeline assets and incurred substantial acquisition and integration costs related to the acquisitions of **ImmunoGen** and **Cerevel Therapeutics**.  **[0001551152-25-000011_abbv-20241231xexhibit991.htm:8]** **[0001551152-25-000020_abbv-20241231.htm:70]** 

What drove the significant spike in R&D spending in Q4 2024?

The significant income tax benefit in **Q4 2024** was primarily driven by several factors. **AbbVie** recognized a substantial benefit by resolving tax examinations for multiple prior tax years, which considerably reduced its tax liabilities for those periods. Additionally, changes in income tax reserves and adjustments for specified items—such as **intangible asset impairments**, changes in the fair value of contingent consideration, and litigation matters—played important roles. The impact of the acquired **in-process research and development and milestones expense** further contributed to the benefit, ultimately resulting in a **GAAP income tax benefit of $2,246 million** for Q4 2024.  **[0001551152-25-000011_abbv-20241231xexhibit991.htm:8]** **[20250131CG08669:8]** **[0001551152-25-000011_abbv-20241231xexhibit991.htm:9]** 

Why is there a large income tax benefit in Q4 2024?

The **EPS dropped to negative in Q4 2024** primarily due to several significant factors. **AbbVie incurred $1.6 billion in acquired in-process research and development (IPR&D) and milestones expense**, which contributed an **unfavorable impact of $0.88 per share**. Additionally, the company recorded a **partial impairment charge of $3.5 billion** related to the emraclidine intangible asset from its Cerevel Therapeutics acquisition, which severely affected pre-tax earnings. Although a **$1.9 billion income tax benefit** related to settled income tax examinations helped to offset some of the negative effects, additional adjustments (such as intangible asset amortization and changes in the fair value of contingent consideration) compounded the impact, resulting in a **GAAP diluted EPS of -$0.02** in Q4 2024 compared to **$0.46 in Q4 2023**.  **[0001551152-25-000011_abbv-20241231xexhibit991.htm:0]** **[20250131CG08669:8]** **[0001551152-25-000002_abbv-20250106.htm:1]** 

What caused EPS to drop to negative in Q4 2024?

be5e7da1eb1814af1c8e6987364c3d061c5ce3194f2440d6f1f7f031a5c70dae

AbbVie’s operating cash flow was significantly lower in Q2 2024 because of **negative timing effects on working capital**, **higher contingent consideration payments**, and **decreased results from operations due to cash expenses related to the ImmunoGen acquisition**.  **[0001551152-24-000031_abbv-20240630.htm:41]** 

Why was Operating Cash Flow so low in Q2 2024?

The drastic increase in negative investing cash flow in Q1 2024 was mainly driven by the **$9.8 billion cash consideration paid to acquire ImmunoGen**. This large outflow was somewhat offset by **$591 million in cash acquired**, but also included additional cash payments for other acquisitions and investments of **$190 million** and capital expenditures of **$193 million**. In contrast, Q1 2023 had substantially lower related cash outflows, with investing activities of **$(499) million** mainly reflecting payments for other acquisitions and capital expenditures.  **[0001551152-24-000020_abbv-20240331.htm:37]** **[0001551152-24-000020_abbv-20240331.htm:3]** 

What drove the drastic increase in negative Investing Cash Flow in Q1 2024?

The swing to positive financing cash flow in Q1 2024 was driven primarily by several key factors. **Issuance of unsecured senior notes** generated significant inflows with **$15.0 billion** in proceeds, while activities related to the **term loan credit agreement**—involving issuance and repayment of **$5.0 billion**—further contributed to the cash inflows. These transactions more than offset the cash outflows from **repayment of secured term notes** (of **$99 million**), **cash dividend payments** (which increased slightly from **$2.7 billion** to **$2.8 billion**), and **reduced stock repurchases** (with repurchases decreasing from **10 million shares** for **$1.6 billion** in Q1 2023 to **5 million shares** for **$959 million** in Q1 2024).  **[0001551152-24-000020_abbv-20240331.htm:37]** 

What contributed to the swing to positive Financing Cash Flow in Q1 2024?

The sharp drop in AbbVie’s cash and equivalents by FY 2024—from **$12,814 million** in FY 2023 to **$5,524 million** in FY 2024—resulted primarily from several factors. **Operating activities** saw a decrease in cash flows (**$18,806 million** in 2024 vs. **$22,839 million** in 2023), **investing activities** consumed significantly more cash—with cash used increasing from **$(2,009) million** to **$(20,820) million** largely due to the **$18.5 billion** paid for acquisitions of ImmunoGen and Cerevel Therapeutics—and **financing activities** also contributed to the decline through changes involving unsecured senior notes and dividend payments.  **[0001551152-25-000020_abbv-20241231.htm:87]** **[0001551152-25-000020_abbv-20241231.htm:73]** 

Why did the Cash and Equivalents drop so sharply by FY 2024?

0bd81fa0c3e287d9724f8812fa5fd6902d005bb030198ac273e7c714052c4478

Acquired IPR&D and Milestones (USD, millions)

5e4f5c3fad02e2cac25a74b5c4255c9bd20ff09c916d93d3cff59b7cb11da2b0

Cash and equivalents (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Property and equipment, net (USD, millions)

Intangible assets, net (USD, millions)

Goodwill (USD, millions)

Total assets (USD, millions)

Accounts payable and accrued liabilities (USD, millions)

Accumulated deficit (USD, millions)

Total equity (USD, millions)

21b1fad1993c154955797e42fcca45181ce714d399feb2ac4cf7f4622a0e3e2e

Acquired IPR&D and milestones (USD, millions)

08f38bf5cac3fdd0d0bbfc30fd993755ad58b35e47014855807c58f2834cca88

ecdaa663daa7b9fe9ea792cae63d9ccecf9354adc4d963c284c11b84620f9040

bd32afb8a4b2c0a3c95264406ee3ca5bac9cf188189975d7370ab916b4476e67

dc9f159cc0313559b1321a67f2b4d306bba58c331e1c43d977b87b8c4f539f1e

Number of compounds, devices or indications in development (Number)

Number of pipeline programs in mid- and late-stage development (Number)

Number of employees (Number)

1415edefc2bca49f93b7f232d5edc0b748129903b2097ab153a243ca3e3e60af

United States

International

- Germany

- Canada

- Japan

- China

- France

- Australia

- Spain

- United Kingdom

- Italy

- Brazil

- All other countries

Total Revenue

c3560cb4786bc0d5060061f6d1f3ea9655013b098b51fa6f31593d507dc3d2e3

5a17d0f29e3aa3950ebc24744545b221877a09a68bb4fdf5c54a3282f6af6a82

AbbVie (ABBV)

Financials