Full Press Release Details
NORTH CHICAGO, Ill. , Feb. 9, 2023 /PRNewswire/ -- AbbVie (NYSE: ABBV ) announced financial results for the fourth quarter and full year ended December 31, 2022 .
"2022 was another highly productive year capping a decade of outstanding performance. Since our inception, we have built a diverse portfolio of growth products with significant leadership positions, developed a robust pipeline of innovative assets and created a culture of strong execution," said Richard A. Gonzalez , chairman and chief executive officer, AbbVie. "Looking forward, we have a solid foundation which will allow us to absorb the U.S. Humira loss of exclusivity, return to strong top-line growth in 2025 and drive top-tier financial performance over the long term."
Fourth -Quarter Results
Full-Year 2023 Outlook
AbbVie is issuing its adjusted diluted EPS guidance for the full-year 2023 of $10.70 to $11.10 . The company's 2023 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred during 2023, as both cannot be reliably forecasted.
AbbVie's mission is to discover and deliver innovative medicines that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people's lives across several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, and gastroenterology, in addition to products and services across our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com . Follow @abbvie on Twitter, Facebook or LinkedIn .
Conference Call
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our fourth-quarter performance. The call will be webcast through AbbVie's Investor Relations website at investors.abbvie.com . An archived edition of the call will be available after 11:00 a.m. Central time .
Non-GAAP Financial Results
Financial results for 2022 and 2021 are presented on both a reported and a non-GAAP basis. Reported results were prepared in accordance with GAAP and include all revenue and expenses recognized during the period. Non-GAAP results adjust for certain non-cash items and for factors that are unusual or unpredictable, and exclude those costs, expenses, and other specified items presented in the reconciliation tables later in this release. Beginning in the first quarter of 2022, the company includes the impact of upfront and milestone payments related to collaborations, licensing agreements, and other asset acquisitions in its reported non-GAAP financial measures. Prior periods have been revised to conform to the current period presentation. AbbVie's management believes non-GAAP financial measures provide useful information to investors regarding AbbVie's results of operations and assist management, analysts, and investors in evaluating the performance of the business. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.
Forward-Looking Statements
Some statements in this news release are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions and uses of future or conditional verbs, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, and changes to laws and regulations applicable to our industry. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," of AbbVie's 2021 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as updated by its Quarterly Reports on Form 10-Q and in other documents that AbbVie subsequently files with the Securities and Exchange Commission that update, supplement or supersede such information. AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
| AbbVie Inc. Key Product Revenues Quarter Ended December 31, 2022 (Unaudited) | |||||||||||||||
| % Change vs. 4Q21 | |||||||||||||||
| Net Revenues (in millions) | Reported | Operational a | |||||||||||||
| U.S. | Int'l. | Total | U.S. | Int'l. | Total | Int'l. | Total | ||||||||
| NET REVENUES | $ 12,192 | $ 2,929 | $ 15,121 | 4.4 % | (8.7) % | 1.6 % | 1.8 % | 3.8 % | |||||||
| Immunology | 6,975 | 950 | 7,925 | 22.5 | (9.5) | 17.5 | 3.2 | 19.5 | |||||||
| Humira | 5,006 | 573 | 5,579 | 9.9 | (26.5) | 4.6 | (16.9) | 6.0 | |||||||
| Skyrizi | 1,403 | 173 | 1,576 | 84.3 | 29.1 | 76.1 | 47.9 | 78.9 | |||||||
| Rinvoq | 566 | 204 | 770 | 48.6 | 50.1 | 49.0 | 74.5 | 55.4 | |||||||
| Hematologic Oncology | 1,110 | 521 | 1,631 | (18.7) | 2.6 | (12.9) | 8.8 | (11.2) | |||||||
| Imbruvica b | 841 | 274 | 1,115 | (24.6) | 1.6 | (19.5) | 1.6 | (19.5) | |||||||
| Venclexta | 269 | 247 | 516 | 7.7 | 3.7 | 5.7 | 17.0 | 12.2 | |||||||
| Aesthetics | 835 | 452 | 1,287 | (4.7) | (14.8) | (8.5) | (3.4) | (4.2) | |||||||
| Botox Cosmetic | 422 | 220 | 642 | 6.4 | (4.0) | 2.6 | 8.3 | 7.1 | |||||||
| Juvederm Collection | 128 | 194 | 322 | (28.3) | (23.3) | (25.4) | (12.4) | (19.0) | |||||||
| Other Aesthetics | 285 | 38 | 323 | (5.3) | (21.4) | (7.6) | (11.7) | (6.2) | |||||||
| Neuroscience | 1,506 | 204 | 1,710 | 4.7 | (5.7) | 3.4 | 7.2 | 5.1 | |||||||
| Botox Therapeutic | 614 | 114 | 728 | 9.6 | 2.8 | 8.5 | 16.2 | 10.7 | |||||||
| Vraylar | 564 | 1 | 565 | 15.4 | n/m | 15.5 | n/m | 15.5 | |||||||
| Duodopa | 23 | 84 | 107 | (18.3) | (15.8) | (16.3) | (3.2) | (6.5) | |||||||
| Ubrelvy | 197 | — | 197 | 7.5 | n/m | 7.7 | n/m | 7.7 | |||||||
| Qulipta | 52 | — | 52 | >100.0 | n/m | >100.0 | n/m | >100.0 | |||||||
| Other Neuroscience | 56 | 5 | 61 | (66.2) | (8.8) | (64.5) | (1.1) | (64.3) | |||||||
| Eye Care | 338 | 252 | 590 | (49.7) | (12.4) | (38.5) | (1.3) | (35.2) | |||||||
| Lumigan/Ganfort | 56 | 67 | 123 | (22.1) | (13.0) | (17.4) | (3.3) | (12.4) | |||||||
| Alphagan/Combigan | 41 | 33 | 74 | (59.4) | (16.2) | (47.4) | (4.5) | (44.1) | |||||||
| Restasis | 103 | 7 | 110 | (70.5) | (49.0) | (69.6) | (45.0) | (69.4) | |||||||
| Other Eye Care | 138 | 145 | 283 | (7.7) | (7.8) | (7.7) | 4.5 | (1.4) | |||||||
| Other Key Products | 791 | 195 | 986 | (1.5) | (18.4) | (5.4) | (6.2) | (2.6) | |||||||
| Mavyret | 193 | 187 | 380 | (1.8) | (18.8) | (11.0) | (6.5) | (4.4) | |||||||
| Creon | 337 | — | 337 | 3.0 | n/m | 3.0 | n/m | 3.0 | |||||||
| Linzess/Constella | 261 | 8 | 269 | (6.5) | (7.5) | (6.6) | 2.2 | (6.3) |
| a | "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates. |
| b | Reflects profit sharing for Imbruvica international revenues. |
| n/m = not meaningful |
| AbbVie Inc. Key Product Revenues Twelve Months Ended December 31, 2022 (Unaudited) | |||||||||||||||
| % Change vs. 12M21 | |||||||||||||||
| Net Revenues (in millions) | Reported | Operational a | |||||||||||||
| U.S. | Int'l. | Total | U.S. | Int'l. | Total | Int'l. | Total | ||||||||
| NET REVENUES | $ 45,713 | $ 12,341 | $ 58,054 | 5.1 % | (2.7) % | 3.3 % | 5.5 % | 5.1 % | |||||||
| Immunology | 24,897 | 4,027 | 28,924 | 18.1 | (4.0) | 14.4 | 5.7 | 16.0 | |||||||
| Humira | 18,619 | 2,618 | 21,237 | 7.4 | (22.2) | 2.6 | (14.9) | 3.8 | |||||||
| Skyrizi | 4,484 | 681 | 5,165 | 80.4 | 50.4 | 75.7 | 67.1 | 78.3 | |||||||
| Rinvoq | 1,794 | 728 | 2,522 | 41.2 | 91.4 | 52.8 | >100.0 | 58.1 | |||||||
| Hematologic Oncology | 4,435 | 2,142 | 6,577 | (15.6) | 8.6 | (9.0) | 13.9 | (7.6) | |||||||
| Imbruvica b | 3,426 | 1,142 | 4,568 | (20.7) | 5.1 | (15.5) | 5.1 | (15.5) | |||||||
| Venclexta | 1,009 | 1,000 | 2,009 | 8.0 | 12.9 | 10.4 | 24.6 | 16.1 | |||||||
| Aesthetics | 3,324 | 2,009 | 5,333 | (0.8) | 6.7 | 1.9 | 15.6 | 5.1 | |||||||
| Botox Cosmetic | 1,654 | 961 | 2,615 | 16.2 | 18.9 | 17.2 | 28.8 | 20.8 | |||||||
| Juvederm Collection | 548 | 880 | 1,428 | (16.7) | 0.3 | (7.0) | 8.9 | (2.1) | |||||||
| Other Aesthetics | 1,122 | 168 | 1,290 | (11.5) | (14.9) | (12.0) | (8.3) | (11.1) | |||||||
| Neuroscience | 5,681 | 847 | 6,528 | 12.3 | (2.3) | 10.1 | 7.7 | 11.6 | |||||||
| Botox Therapeutic | 2,255 | 464 | 2,719 | 12.1 | 5.6 | 10.9 | 15.3 | 12.6 | |||||||
| Vraylar | 2,037 | 1 | 2,038 | 17.9 | n/m | 17.9 | n/m | 17.9 | |||||||
| Duodopa | 95 | 363 | 458 | (6.7) | (11.3) | (10.4) | (0.8) | (2.0) | |||||||
| Ubrelvy | 680 | — | 680 | 23.2 | n/m | 23.3 | n/m | 23.3 | |||||||
| Qulipta | 158 | — | 158 | >100.0 | n/m | >100.0 | n/m | >100.0 | |||||||
| Other Neuroscience | 456 | 19 | 475 | (30.5) | 4.8 | (29.6) | 9.0 | (29.5) | |||||||
| Eye Care | 1,603 | 1,098 | 2,701 | (33.3) | (5.7) | (24.3) | 3.7 | (21.2) | |||||||
| Lumigan/Ganfort | 242 | 272 | 514 | (11.0) | (11.3) | (11.2) | (3.0) | (6.8) | |||||||
| Alphagan/Combigan | 202 | 144 | 346 | (45.8) | (7.9) | (34.6) | 2.5 | (31.5) | |||||||
| Restasis | 621 | 45 | 666 | (49.6) | (20.2) | (48.3) | (13.8) | (48.0) | |||||||
| Other Eye Care | 538 | 637 | 1,175 | 2.3 | (1.2) | 0.4 | 8.7 | 5.9 | |||||||
| Other Key Products | 3,036 | 818 | 3,854 | 2.9 | (17.2) | (2.2) | (7.9) | 0.1 | |||||||
| Mavyret | 755 | 786 | 1,541 | 0.2 | (17.8) | (9.9) | (8.5) | (4.7) | |||||||
| Creon | 1,278 | — | 1,278 | 7.3 | n/m | 7.3 | n/m | 7.3 | |||||||
| Linzess/Constella | 1,003 | 32 | 1,035 | (0.4) | 0.3 | (0.3) | 7.6 | (0.1) |
| a | "Operational" comparisons are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates. |
| b | Reflects profit sharing for Imbruvica international revenues. |
| n/m = not meaningful |
| AbbVie Inc. Consolidated Statements of Earnings (Unaudited) | |||||||
| (in millions, except per share data) | Fourth Quarter Ended December 31 | Twelve Months Ended December 31 | |||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Net revenues | $ 15,121 | $ 14,886 | $ 58,054 | $ 56,197 | |||
| Cost of products sold | 4,170 | 4,320 | 17,414 | 17,446 | |||
| Selling, general and administrative | 3,417 | 3,260 | 15,260 | 12,349 | |||
| Research and development a | 1,790 | 1,827 | 6,510 | 6,922 | |||
| Acquired IPR&D and milestones a | 243 | 405 | 697 | 1,124 | |||
| Other operating (income) expense, net | (1) | — | 56 | 432 | |||
| Total operating costs and expenses | 9,619 | 9,812 | 39,937 | 38,273 | |||
| Operating earnings | 5,502 | 5,074 | 18,117 | 17,924 | |||
| Interest expense, net | 476 | 571 | 2,044 | 2,384 | |||
| Net foreign exchange loss | 40 | 16 | 148 | 51 | |||
| Other expense, net | 2,021 | 216 | 2,448 | 2,500 | |||
| Earnings before income tax expense | 2,965 | 4,271 | 13,477 | 12,989 | |||
| Income tax expense | 493 | 226 | 1,632 | 1,440 | |||
| Net earnings | 2,472 | 4,045 | 11,845 | 11,549 | |||
| Net earnings (loss) attributable to noncontrolling interest | (1) | 1 | 9 | 7 | |||
| Net earnings attributable to AbbVie Inc. | $ 2,473 | $ 4,044 | $ 11,836 | $ 11,542 | |||
| Diluted earnings per share attributable to AbbVie Inc. | $ 1.38 | $ 2.26 | $ 6.63 | $ 6.45 | |||
| Adjusted diluted earnings per share b | $ 3.60 | $ 3.08 | $ 13.77 | $ 11.83 | |||
| Weighted-average diluted shares outstanding | 1,778 | 1,778 | 1,778 | 1,777 |
| a | During the three months ended March 31, 2022, AbbVie changed its classification of development milestone expense associated with licensing and collaboration arrangements in the consolidated statement of earnings. Milestone payments incurred prior to regulatory approval, which were previously included in research and development expense, are now presented as acquired IPR&D and milestones expense. The reclassification decreased research and development expense and increased acquired IPR&D and milestones expense by $162 million for the twelve months ended December 31, 2021 and had no impact on the three months ended December 31, 2021. The company believes this presentation assists users of the financial statements to better understand the total upfront and subsequent development milestone payments incurred to acquire in-process research and development projects. Prior periods have been revised to conform to the current period presentation. The reclassification had no impact on total operating costs and expenses, operating earnings, net earnings, net earnings attributable to AbbVie, Inc., earnings per share, or total equity. |
| b | Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Weighted-average diluted shares outstanding includes the effect of dilutive securities. |
| AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) | ||||||||||
| 1. Specified items impacted results as follows: | ||||||||||
| Quarter Ended December 31, 2022 | ||||||||||
| (in millions, except per share data) | Earnings | Diluted | ||||||||
| Pre-tax | After-tax a | EPS | ||||||||
| As reported (GAAP) | $ 2,965 | $ 2,473 | $ 1.38 | |||||||
| Adjusted for specified items: | ||||||||||
| Intangible asset amortization | 1,961 | 1,636 | 0.92 | |||||||
| Acquisition and integration costs | 215 | 199 | 0.11 | |||||||
| Change in fair value of contingent consideration | 2,114 | 2,113 | 1.19 | |||||||
| Income tax items | — | (143) | (0.08) | |||||||
| Other | 157 | 144 | 0.08 | |||||||
| As adjusted (non-GAAP) | $ 7,412 | $ 6,422 | $ 3.60 | |||||||
| a Represents net earnings attributable to AbbVie Inc. | ||||||||||
| Acquisition and integration costs primarily include costs related to the Allergan acquisition. Income tax items include a benefit of $323 million related to tax law changes partially offset by certain other tax related items. Other primarily includes restructuring charges associated with streamlining global operations. | ||||||||||
| Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended December 31, 2022 included acquired IPR&D and milestones expense of $243 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.13 to both diluted EPS and adjusted diluted EPS. | ||||||||||
| 2. The impact of the specified items by line item was as follows: | ||||||||||
| Quarter Ended December 31, 2022 | ||||||||||
| (in millions) | Cost of products sold | SG&A | R&D | Other operating income, net | Other expense, net | |||||
| As reported (GAAP) | $ 4,170 | $ 3,417 | $ 1,790 | $ (1) | $ 2,021 | |||||
| Adjusted for specified items: | ||||||||||
| Intangible asset amortization | (1,961) | — | — | — | — | |||||
| Acquisition and integration costs | 1 | (205) | (11) | — | — | |||||
| Change in fair value of contingent consideration | — | — | — | — | (2,114) | |||||
| Other | (99) | (62) | (38) | 1 | 41 | |||||
| As adjusted (non-GAAP) | $ 2,111 | $ 3,150 | $ 1,741 | $ — | $ (52) | |||||
| 3. The adjusted tax rate for the fourth quarter of 2022 was 13.4 percent, as detailed below: | ||||||||||
| Quarter Ended December 31, 2022 | ||||||||||
| (dollars in millions) | Pre-tax earnings | Income taxes | Tax rate | |||||||
| As reported (GAAP) | $ 2,965 | $ 493 | 16.6 % | |||||||
| Specified items | 4,447 | 498 | 11.2 % | |||||||
| As adjusted (non-GAAP) | $ 7,412 | $ 991 | 13.4 % |
| AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) | ||||||||||
| 1. Specified items impacted results as follows: | ||||||||||
| Quarter Ended December 31, 2021 | ||||||||||
| (in millions, except per share data) | Earnings | Diluted | ||||||||
| Pre-tax | After-tax a | EPS | ||||||||
| As reported (GAAP) | $ 4,271 | $ 4,044 | $ 2.26 | |||||||
| Adjusted for specified items: | ||||||||||
| Intangible asset amortization | 1,806 | 1,490 | 0.84 | |||||||
| Acquisition and integration costs | (191) | (212) | (0.12) | |||||||
| Change in fair value of contingent consideration | 232 | 232 | 0.13 | |||||||
| Litigation matters | 200 | 167 | 0.09 | |||||||
| Impacts related to tax law changes | — | (265) | (0.15) | |||||||
| Other | 41 | 58 | 0.03 | |||||||
| As adjusted (non-GAAP) | $ 6,359 | $ 5,514 | $ 3.08 | |||||||
| a Represents net earnings attributable to AbbVie Inc. | ||||||||||
| Acquisition and integration costs reflect a recovery of certain Allergan acquisition-related regulatory fees partially offset by Allergan-related integration costs and Soliton acquisition costs. Other primarily includes COVID-19 related expenses and certain tax related items. | ||||||||||
| Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reportednon-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the three months ended December 31, 2021 included acquired IPR&D and milestones expense of $405 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.23 to both diluted EPS and adjusted diluted EPS. | ||||||||||
| 2. The impact of the specified items by line item was as follows: | ||||||||||
| Quarter Ended December 31, 2021 | ||||||||||
| (in millions) | Cost of products sold | SG&A | R&D | Other expense, net | ||||||
| As reported (GAAP) | $ 4,320 | $ 3,260 | $ 1,827 | $ 216 | ||||||
| Adjusted for specified items: | ||||||||||
| Intangible asset amortization | (1,806) | — | — | — | ||||||
| Acquisition and integration costs | (43) | 250 | (16) | — | ||||||
| Change in fair value of contingent consideration | — | — | — | (232) | ||||||
| Litigation matters | — | (200) | — | — | ||||||
| Other | (23) | (3) | (13) | (2) | ||||||
| As adjusted (non-GAAP) | $ 2,448 | $ 3,307 | $ 1,798 | $ (18) | ||||||
| 3. The adjusted tax rate for the fourth quarter of 2021 was 13.3 percent, as detailed below: | ||||||||||
| Quarter Ended December 31, 2021 | ||||||||||
| (dollars in millions) | Pre-tax earnings | Income taxes | Tax rate | |||||||
| As reported (GAAP) | $ 4,271 | $ 226 | 5.3 % | |||||||
| Specified items | 2,088 | 618 | 29.6 % | |||||||
| As adjusted (non-GAAP) | $ 6,359 | $ 844 | 13.3 % |
| AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) | |||||||||
| 1. Specified items impacted results as follows: | |||||||||
| Twelve Months Ended December 31, 2022 | |||||||||
| (in millions, except per share data) | Earnings | Diluted | |||||||
| Pre-tax | After-tax a | EPS | |||||||
| As reported (GAAP) | $ 13,477 | $ 11,836 | $ 6.63 | ||||||
| Adjusted for specified items: | |||||||||
| Intangible asset amortization | 7,689 | 6,430 | 3.61 | ||||||
| Intangible asset impairment | 770 | 604 | 0.34 | ||||||
| Acquisition and integration costs | 810 | 766 | 0.43 | ||||||
| Change in fair value of contingent consideration | 2,761 | 2,770 | 1.55 | ||||||
| Pylera divestiture | (172) | (126) | (0.07) | ||||||
| Litigation matters | 2,506 | 2,028 | 1.13 | ||||||
| Income tax items | — | (26) | (0.02) | ||||||
| Other | 429 | 315 | 0.17 | ||||||
| As adjusted (non-GAAP) | $ 28,270 | $ 24,597 | $ 13.77 | ||||||
| a Represents net earnings attributable to AbbVie Inc. | |||||||||
| Acquisition and integration costs primarily include costs related to the Allergan acquisition. Litigation matters primarily include a charge related to a potential settlement of litigation involving Allergan's past sales of opioid products. Income tax items include a benefit of $323 million related to tax law changes partially offset by certain other tax related items. Other primarily includes restructuring charges associated with streamlining global operations. | |||||||||
| Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the twelve months ended December 31, 2022 included acquired IPR&D and milestones expense of $697 million on a pre-tax and $682 million on an after-tax basis, representing an unfavorable impact of $0.39 to both diluted EPS and adjusted diluted EPS. | |||||||||
| 2. The impact of the specified items by line item was as follows: | |||||||||
| Twelve Months Ended December 31, 2022 | |||||||||
| (in millions) | Cost of products sold | SG&A | R&D | Other operating expense, net | Other expense, net | ||||
| As reported (GAAP) | $ 17,414 | $ 15,260 | $ 6,510 | $ 56 | $ 2,448 | ||||
| Adjusted for specified items: | |||||||||
| Intangible asset amortization | (7,689) | — | — | — | — | ||||
| Intangible asset impairment | (770) | — | — | — | — | ||||
| Acquisition and integration costs | (83) | (468) | (30) | (229) | — | ||||
| Change in fair value of contingent consideration | — | — | — | — | (2,761) | ||||
| Pylera divestiture | — | — | — | 172 | — | ||||
| Litigation matters | — | (2,506) | — | — | — | ||||
| Other | (259) | (160) | (45) | 1 | 34 | ||||
| As adjusted (non-GAAP) | $ 8,613 | $ 12,126 | $ 6,435 | $ — | $ (279) | ||||
| 3. The adjusted tax rate for the full-year 2022 was 13.0 percent, as detailed below: | |||||||||
| Twelve Months Ended December 31, 2022 | |||||||||
| (dollars in millions) | Pre-tax earnings | Income taxes | Tax rate | ||||||
| As reported (GAAP) | $ 13,477 | $ 1,632 | 12.1 % | ||||||
| Specified items | 14,793 | 2,032 | 13.7 % | ||||||
| As adjusted (non-GAAP) | $ 28,270 | $ 3,664 | 13.0 % |
| AbbVie Inc. Reconciliation of GAAP Reported to Non-GAAP Adjusted Information (Unaudited) | |||||||||
| 1. Specified items impacted results as follows: | |||||||||
| Twelve Months Ended December 31, 2021 | |||||||||
| (in millions, except per share data) | Earnings | Diluted | |||||||
| Pre-tax | After-tax a | EPS | |||||||
| As reported (GAAP) | $ 12,989 | $ 11,542 | $ 6.45 | ||||||
| Adjusted for specified items: | |||||||||
| Intangible asset amortization | 7,718 | 6,419 | 3.60 | ||||||
| Acquisition and integration costs | 344 | 215 | 0.12 | ||||||
| Change in fair value of contingent consideration | 2,679 | 2,677 | 1.50 | ||||||
| Litigation matters | 307 | 253 | 0.14 | ||||||
| Impacts related to tax law changes | — | (265) | (0.15) | ||||||
| Other | 360 | 313 | 0.17 | ||||||
| As adjusted (non-GAAP) | $ 24,397 | $ 21,154 | $ 11.83 | ||||||
| a Represents net earnings attributable to AbbVie Inc. | |||||||||
| Acquisition and integration costs reflect Allergan integration costs, Soliton acquisition costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition partially offset by a recovery of certain Allergan acquisition-related regulatory fees. Other primarily includes the purchase of FDA priority review vouchers from third parties, COVID-19 related expenses, restructuring charges associated with streamlining global operations and certain tax related items. | |||||||||
| Beginning in the first quarter of 2022, the company includes acquired IPR&D and milestones expense in its reported non-GAAP financial measures. Reported GAAP earnings and adjusted non-GAAP earnings for the twelve months ended December 31, 2021 included acquired IPR&D and milestones expense of $1.1 billion on a pre-tax and after-tax basis, as well as other operating expense related to the Calico collaboration of $500 million on a pre-tax and after-tax basis, representing an unfavorable impact of $0.90 to both diluted EPS and adjusted diluted EPS. | |||||||||
| 2. The impact of the specified items by line item was as follows: | |||||||||
| Twelve Months Ended December 31, 2021 | |||||||||
| (in millions) | Cost of products sold | SG&A | R&D | Other operating expense, net | Other expense, net | ||||
| As reported (GAAP) | $ 17,446 | $ 12,349 | $ 6,922 | $ 432 | $ 2,500 | ||||
| Adjusted for specified items: | |||||||||
| Intangible asset amortization | (7,718) | — | — | — | — | ||||
| Acquisition and integration costs | (215) | (25) | (104) | — | — | ||||
| Change in fair value of contingent consideration | — | — | — | — | (2,679) | ||||
| Litigation matters | — | (307) | — | — | — | ||||
| Other | (88) | (53) | (300) | 68 | 13 | ||||
| As adjusted (non-GAAP) | $ 9,425 | $ 11,964 | $ 6,518 | $ 500 | $ (166) | ||||
| 3. The adjusted tax rate for the full-year 2021 was 13.3 percent, as detailed below: | |||||||||
| Twelve Months Ended December 31, 2021 | |||||||||
| (dollars in millions) | Pre-tax earnings | Income taxes | Tax rate | ||||||
| As reported (GAAP) | $ 12,989 | $ 1,440 | 11.1 % | ||||||
| Specified items | 11,408 | 1,796 | 15.8 % | ||||||
| As adjusted (non-GAAP) | $ 24,397 | $ 3,236 | 13.3 % |