Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

AbbVie Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Domestic	(331)	3,272)	2,647)	1,987)	907)
Foreign	1,210)	994)	916)	351)	194)
Current taxes	879)	4,266)	3,563)	2,338)	1,101)
Domestic	(1,303)	(2,324)	(1,512)	(839)	(58)
Foreign	(146)	(565)	(419)	(59)	(2,267)
Deferred taxes	(1,449)	(2,889)	(1,931)	(898)	(2,325)
Income tax expense (benefit)	(570)	1,377)	1,632)	1,440)	(1,224)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Current taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	AbbVie Inc. current taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	AbbVie Inc. deferred taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Income tax expense (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	AbbVie Inc. income tax expense (benefit) decreased from 2022 to 2023 and from 2023 to 2024.

AbbVie Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Effect of foreign operations	7.60%	8.00%	-4.40%	-5.40%	2.40%
U.S. tax credits	-5.40%	-3.10%	-2.80%	-2.80%	-10.60%
Stock-based compensation	-1.20%	-1.00%	-0.60%	0.00%	0.00%
Non-deductible expenses	1.10%	0.70%	0.40%	0.30%	7.20%
Tax law changes and related structuring	-0.30%	-3.80%	-2.40%	-2.00%	-48.50%
Tax audits, settlements and reserves	-51.40%	-1.10%	0.90%	-0.40%	-5.10%
Acquisition costs	13.40%	0.20%	0.00%	0.00%	0.00%
All other, net	-0.10%	1.10%	0.00%	0.40%	-1.30%
Effective tax rate, before impacts related to U.S. tax reform	-15.30%	22.00%	12.10%	11.10%	-34.90%
Impacts related to U.S. tax reform	0.00%	0.00%	0.00%	0.00%	-1.10%
Effective tax rate	-15.30%	22.00%	12.10%	11.10%	-36.00%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Effective tax rate, before impacts related to U.S. tax reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	AbbVie Inc. effective tax rate, before impacts related to U.S. tax reform increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

AbbVie Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Compensation and employee benefits	215)	519)	497)	937)	1,109)
Accruals and reserves	1,253)	1,113)	1,023)	667)	438)
Chargebacks and rebates	1,354)	1,431)	991)	837)	555)
Advance payments	66)	298)	547)	809)	324)
Net operating losses and other carryforwards	15,815)	14,316)	10,391)	10,095)	2,765)
Other	2,156)	2,259)	1,710)	1,234)	1,371)
Deferred tax assets	20,859)	19,936)	15,159)	14,579)	6,562)
Valuation allowances	(14,823)	(13,478)	(9,627)	(9,391)	(1,203)
Net deferred tax assets	6,036)	6,458)	5,532)	5,188)	5,359)
Excess of book basis over tax basis of intangible assets	(1,969)	(1,535)	(3,590)	(4,711)	(5,274)
Excess of book basis over tax basis in investments	(302)	(374)	(340)	(308)	(335)
Other	(718)	(746)	(772)	(904)	(982)
Deferred tax liabilities	(2,989)	(2,655)	(4,702)	(5,923)	(6,591)
Net deferred tax assets (liabilities)	3,047)	3,803)	830)	(735)	(1,232)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	AbbVie Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	AbbVie Inc. net deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	AbbVie Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

AbbVie Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets	5,626)	5,755)	3,020)	2,274)	2,414)
	Deferred tax liabilities	2,579)	1,952)	2,190)	3,009)	3,646)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	AbbVie Inc. deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	AbbVie Inc. deferred tax liabilities decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

AbbVie Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	135,161)	134,711)	138,805)	146,529)	150,565)
Less: Noncurrent deferred tax assets, net	5,626)	5,755)	3,020)	2,274)	2,414)
Total assets (adjusted)	129,535)	128,956)	135,785)	144,255)	148,151)
Adjustment to Total Liabilities
Total liabilities (as reported)	131,797)	124,314)	121,518)	131,093)	137,468)
Less: Noncurrent deferred tax liabilities, net	2,579)	1,952)	2,190)	3,009)	3,646)
Total liabilities (adjusted)	129,218)	122,362)	119,328)	128,084)	133,822)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	3,325)	10,360)	17,254)	15,408)	13,076)
Less: Net deferred tax assets (liabilities)	3,047)	3,803)	830)	(735)	(1,232)
Stockholders’ equity (adjusted)	278)	6,557)	16,424)	16,143)	14,308)
Adjustment to Net Earnings Attributable To AbbVie Inc.
Net earnings attributable to AbbVie Inc. (as reported)	4,278)	4,863)	11,836)	11,542)	4,616)
Add: Deferred income tax expense (benefit)	(1,449)	(2,889)	(1,931)	(898)	(2,325)
Net earnings attributable to AbbVie Inc. (adjusted)	2,829)	1,974)	9,905)	10,644)	2,291)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

AbbVie Inc., Financial Data: Reported vs. Adjusted

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AbbVie Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	7.59%	8.95%	20.39%	20.54%	10.08%
Adjusted net profit margin	5.02%	3.63%	17.06%	18.94%	5.00%
Total Asset Turnover
Reported total asset turnover	0.42	0.40	0.42	0.38	0.30
Adjusted total asset turnover	0.43	0.42	0.43	0.39	0.31
Financial Leverage
Reported financial leverage	40.65	13.00	8.04	9.51	11.51
Adjusted financial leverage	465.95	19.67	8.27	8.94	10.35
Return on Equity (ROE)
Reported ROE	128.66%	46.94%	68.60%	74.91%	35.30%
Adjusted ROE	1,017.63%	30.11%	60.31%	65.94%	16.01%
Return on Assets (ROA)
Reported ROA	3.17%	3.61%	8.53%	7.88%	3.07%
Adjusted ROA	2.18%	1.53%	7.29%	7.38%	1.55%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	AbbVie Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AbbVie Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	AbbVie Inc. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	AbbVie Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	AbbVie Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

AbbVie Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc.	4,278)	4,863)	11,836)	11,542)	4,616)
Net revenues	56,334)	54,318)	58,054)	56,197)	45,804)
Profitability Ratio
Net profit margin¹	7.59%	8.95%	20.39%	20.54%	10.08%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to AbbVie Inc.	2,829)	1,974)	9,905)	10,644)	2,291)
Net revenues	56,334)	54,318)	58,054)	56,197)	45,804)
Profitability Ratio
Adjusted net profit margin²	5.02%	3.63%	17.06%	18.94%	5.00%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net earnings attributable to AbbVie Inc. ÷ Net revenues
= 100 × 4,278 ÷ 56,334 = 7.59%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to AbbVie Inc. ÷ Net revenues
= 100 × 2,829 ÷ 56,334 = 5.02%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	AbbVie Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net revenues	56,334)	54,318)	58,054)	56,197)	45,804)
Total assets	135,161)	134,711)	138,805)	146,529)	150,565)
Activity Ratio
Total asset turnover¹	0.42	0.40	0.42	0.38	0.30
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues	56,334)	54,318)	58,054)	56,197)	45,804)
Adjusted total assets	129,535)	128,956)	135,785)	144,255)	148,151)
Activity Ratio
Adjusted total asset turnover²	0.43	0.42	0.43	0.39	0.31

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 56,334 ÷ 135,161 = 0.42

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 56,334 ÷ 129,535 = 0.43

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AbbVie Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	135,161)	134,711)	138,805)	146,529)	150,565)
Stockholders’ equity	3,325)	10,360)	17,254)	15,408)	13,076)
Solvency Ratio
Financial leverage¹	40.65	13.00	8.04	9.51	11.51
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	129,535)	128,956)	135,785)	144,255)	148,151)
Adjusted stockholders’ equity	278)	6,557)	16,424)	16,143)	14,308)
Solvency Ratio
Adjusted financial leverage²	465.95	19.67	8.27	8.94	10.35

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 135,161 ÷ 3,325 = 40.65

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 129,535 ÷ 278 = 465.95

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	AbbVie Inc. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc.	4,278)	4,863)	11,836)	11,542)	4,616)
Stockholders’ equity	3,325)	10,360)	17,254)	15,408)	13,076)
Profitability Ratio
ROE¹	128.66%	46.94%	68.60%	74.91%	35.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to AbbVie Inc.	2,829)	1,974)	9,905)	10,644)	2,291)
Adjusted stockholders’ equity	278)	6,557)	16,424)	16,143)	14,308)
Profitability Ratio
Adjusted ROE²	1,017.63%	30.11%	60.31%	65.94%	16.01%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net earnings attributable to AbbVie Inc. ÷ Stockholders’ equity
= 100 × 4,278 ÷ 3,325 = 128.66%

² Adjusted ROE = 100 × Adjusted net earnings attributable to AbbVie Inc. ÷ Adjusted stockholders’ equity
= 100 × 2,829 ÷ 278 = 1,017.63%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	AbbVie Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc.	4,278)	4,863)	11,836)	11,542)	4,616)
Total assets	135,161)	134,711)	138,805)	146,529)	150,565)
Profitability Ratio
ROA¹	3.17%	3.61%	8.53%	7.88%	3.07%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to AbbVie Inc.	2,829)	1,974)	9,905)	10,644)	2,291)
Adjusted total assets	129,535)	128,956)	135,785)	144,255)	148,151)
Profitability Ratio
Adjusted ROA²	2.18%	1.53%	7.29%	7.38%	1.55%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net earnings attributable to AbbVie Inc. ÷ Total assets
= 100 × 4,278 ÷ 135,161 = 3.17%

² Adjusted ROA = 100 × Adjusted net earnings attributable to AbbVie Inc. ÷ Adjusted total assets
= 100 × 2,829 ÷ 129,535 = 2.18%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	AbbVie Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

AbbVie Inc. (NYSE:ABBV)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

AbbVie Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

AbbVie Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)