Full Press Release Details
NORTH CHICAGO, Ill., Oct. 29, 2021 /PRNewswire/ -- AbbVie (NYSE: ABBV ) announced financial results for the third quarter ended September 30, 2021 .
"We continue to deliver excellent results, with balanced performance across our portfolio driving double-digit operational sales and EPS growth," said Richard A. Gonzalez , chairman and chief executive officer, AbbVie. "Based upon our strong momentum, we are increasing our full-year 2021 EPS guidance. We remain highly confident in AbbVie's long-term outlook and are once again raising our dividend, which has grown over 250 percent since inception."
Third-Quarter Results
Full-Year 2021 Outlook
AbbVie is raising its GAAP diluted EPS guidance for the full-year 2021 from $6.04 to $6.14 to $6.29 to $6.33 . AbbVie is raising its adjusted diluted EPS for the full-year 2021 from $12.52 to $12.62 to $12.63 to $12.67 . The company's 2021 adjusted diluted EPS guidance excludes $6.34 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items.
Company Declares Dividend Increase of 8.5 Percent
AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.30 per share to $1.41 per share beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022 . This reflects an increase of approximately 8.5 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
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, women's health and gastroenterology, in addition to products and services across its Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com . Follow @abbvie on Twitter , Facebook , Instagram , YouTube, and LinkedIn .
Conference Call
AbbVie will host an investor conference call today at 8:00 a.m. Central time to discuss our third-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 2021 and 2020 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. 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. The company's 2021 financial guidance is also being provided on both a reported and a non-GAAP basis.
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, among others, 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 indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the failure to realize the expected benefits of AbbVie's acquisition of Allergan or to promptly and effectively integrate Allergan's business, 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 2020 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 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 September 30, 2021 | |||||||||||||||
| (Unaudited) | |||||||||||||||
| % Change vs. 3Q20 | |||||||||||||||
| Net Revenues (in millions) | Reported | Operational a | |||||||||||||
| U.S. | Int'l. | Total | U.S. | Int'l. | Total | Int'l. | Total | ||||||||
| ADJUSTED NET REVENUES b | $11,279 | $3,063 | $14,342 | 14.1% | 2.4% | 11.3% | 0.1% | 10.8% | |||||||
| Immunology | 5,640 | 1,034 | 6,674 | 18.6 | 0.2 | 15.3 | (2.1) | 14.9 | |||||||
| Humira | 4,613 | 812 | 5,425 | 10.1 | (14.6) | 5.6 | (16.7) | 5.2 | |||||||
| Skyrizi | 679 | 117 | 796 | 79.6 | >100.0 | 83.3 | >100.0 | 82.8 | |||||||
| Rinvoq | 348 | 105 | 453 | 82.5 | >100.0 | >100.0 | >100.0 | >100.0 | |||||||
| Hematologic Oncology | 1,346 | 520 | 1,866 | 1.8 | 30.6 | 8.4 | 29.3 | 8.1 | |||||||
| Imbruvica c | 1,109 | 265 | 1,374 | (0.9) | 5.7 | 0.3 | 5.7 | 0.3 | |||||||
| Venclexta | 237 | 255 | 492 | 16.3 | 73.0 | 40.1 | 69.5 | 38.7 | |||||||
| Aesthetics | 820 | 431 | 1,251 | 32.7 | 23.2 | 29.3 | 18.9 | 27.7 | |||||||
| Botox Cosmetic | 356 | 189 | 545 | 49.6 | 21.6 | 38.5 | 17.5 | 36.9 | |||||||
| Juvederm Collection | 159 | 195 | 354 | 37.6 | 22.9 | 29.1 | 18.6 | 26.6 | |||||||
| Other Aesthetics | 305 | 47 | 352 | 15.4 | 31.5 | 17.3 | 26.5 | 16.7 | |||||||
| Neuroscience | 1,346 | 220 | 1,566 | 28.0 | 11.5 | 25.5 | 8.0 | 25.0 | |||||||
| Botox Therapeutic | 534 | 111 | 645 | 24.4 | 18.6 | 23.4 | 13.8 | 22.5 | |||||||
| Vraylar | 461 | — | 461 | 29.0 | n/a | 29.0 | n/a | 29.0 | |||||||
| Duodopa | 23 | 104 | 127 | (3.9) | 6.0 | 3.9 | 3.9 | 2.2 | |||||||
| Ubrelvy | 162 | — | 162 | >100.0 | n/a | >100.0 | n/a | >100.0 | |||||||
| Other Neuroscience | 166 | 5 | 171 | (17.8) | (12.1) | (17.7) | (18.5) | (17.8) | |||||||
| Eye Care | 585 | 286 | 871 | 6.5 | (1.4) | 3.8 | (3.9) | 2.9 | |||||||
| Lumigan/Ganfort | 63 | 75 | 138 | (0.1) | (12.9) | (7.5) | (15.8) | (9.2) | |||||||
| Alphagan/Combigan | 89 | 39 | 128 | 6.2 | 1.2 | 4.6 | (0.9) | 3.9 | |||||||
| Restasis | 305 | 14 | 319 | 7.5 | (7.4) | 6.7 | (6.5) | 6.7 | |||||||
| Other Eye Care | 128 | 158 | 286 | 8.1 | 5.1 | 6.4 | 2.4 | 4.9 | |||||||
| Women's Health | 199 | 3 | 202 | (12.9) | (67.4) | (15.6) | (70.4) | (15.8) | |||||||
| Lo Loestrin | 105 | 2 | 107 | (20.3) | (27.2) | (20.6) | (32.4) | (20.8) | |||||||
| Orilissa/Oriahnn | 37 | 1 | 38 | 50.5 | 47.5 | 50.4 | 38.4 | 50.0 | |||||||
| Other Women's Health | 57 | — | 57 | (20.9) | (100.0) | (28.4) | (100.0) | (28.4) | |||||||
| Other Key Products | 1,068 | 297 | 1,365 | 7.4 | 9.6 | 7.9 | 8.4 | 7.6 | |||||||
| Mavyret | 183 | 243 | 426 | 0.2 | 5.7 | 3.3 | 4.9 | 2.9 | |||||||
| Creon | 310 | — | 310 | 10.0 | n/a | 10.0 | n/a | 10.0 | |||||||
| Lupron | 134 | 46 | 180 | 35.7 | 34.7 | 35.4 | 31.4 | 34.5 | |||||||
| Linzess/Constella | 253 | 8 | 261 | 4.8 | 10.7 | 5.0 | 4.5 | 4.8 | |||||||
| Synthroid | 188 | — | 188 | (0.8) | n/a | (0.8) | n/a | (0.8) |
| 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 | Adjusted net revenues exclude specified items. Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Percentage change is calculated using adjusted net revenues. |
| c | Reflects profit sharing for Imbruvica international revenues. |
| n/a = not applicable |
| AbbVie Inc. | |||||||||||||||||
| Key Product Revenues | |||||||||||||||||
| Nine Months Ended September 30, 2021 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| % Change vs. 9M20 | |||||||||||||||||
| Net Revenues (in millions) | Reported | Comparable Operational a, b | |||||||||||||||
| U.S. | Int'l. | Total | U.S. | Int'l. | Total | U.S. | Int'l. | Total | |||||||||
| ADJUSTED NET REVENUES c | $31,758 | $9,478 | $41,236 | 31.3% | 22.6% | 29.2% | 13.3% | 6.0% | 11.6% | ||||||||
| Immunology | 15,391 | 3,147 | 18,538 | 16.9 | 3.7 | 14.5 | 16.9 | (1.2) | 13.6 | ||||||||
| Humira | 12,777 | 2,583 | 15,360 | 8.1 | (9.7) | 4.6 | 8.1 | (13.9) | 3.8 | ||||||||
| Skyrizi | 1,725 | 319 | 2,044 | 84.9 | >100.0 | 92.0 | 84.9 | >100.0 | 90.4 | ||||||||
| Rinvoq | 889 | 245 | 1,134 | >100.0 | >100.0 | >100.0 | >100.0 | >100.0 | >100.0 | ||||||||
| Hematologic Oncology | 3,892 | 1,463 | 5,355 | 4.2 | 30.0 | 10.1 | 4.2 | 27.3 | 9.5 | ||||||||
| Imbruvica d | 3,207 | 816 | 4,023 | 2.1 | 8.8 | 3.4 | 2.1 | 8.8 | 3.4 | ||||||||
| Venclexta | 685 | 647 | 1,332 | 14.9 | 72.3 | 37.1 | 14.9 | 64.1 | 33.9 | ||||||||
| Aesthetics | 2,473 | 1,353 | 3,826 | >100.0 | >100.0 | >100.0 | 55.4 | 66.5 | 59.0 | ||||||||
| Botox Cosmetic* | 1,027 | 579 | 1,606 | >100.0 | >100.0 | >100.0 | 70.5 | 55.0 | 64.7 | ||||||||
| Juvederm Collection* | 478 | 625 | 1,103 | >100.0 | >100.0 | >100.0 | 69.6 | 75.4 | 72.8 | ||||||||
| Other Aesthetics* | 968 | 149 | 1,117 | >100.0 | >100.0 | >100.0 | 37.0 | 80.2 | 41.3 | ||||||||
| Neuroscience | 3,621 | 652 | 4,273 | >100.0 | 50.5 | >100.0 | 23.8 | 12.0 | 22.0 | ||||||||
| Botox Therapeutic* | 1,451 | 329 | 1,780 | >100.0 | >100.0 | >100.0 | 21.1 | 26.3 | 21.9 | ||||||||
| Vraylar* | 1,239 | — | 1,239 | >100.0 | n/a | >100.0 | 25.6 | n/a | 25.6 | ||||||||
| Duodopa | 73 | 310 | 383 | (1.5) | 6.9 | 5.2 | (1.5) | 0.1 | (0.2) | ||||||||
| Ubrelvy* | 369 | — | 369 | >100.0 | n/a | >100.0 | >100.0 | n/a | >100.0 | ||||||||
| Other Neuroscience* | 489 | 13 | 502 | 59.7 | 97.2 | 60.5 | (16.9) | 7.6 | (16.5) | ||||||||
| Eye Care | 1,731 | 876 | 2,607 | >100.0 | >100.0 | >100.0 | 4.9 | 4.6 | 4.7 | ||||||||
| Lumigan/Ganfort* | 201 | 229 | 430 | >100.0 | 79.4 | 90.7 | (2.1) | (10.6) | (6.7) | ||||||||
| Alphagan/Combigan* | 271 | 117 | 388 | >100.0 | 90.5 | >100.0 | 4.6 | 3.7 | 4.3 | ||||||||
| Restasis* | 884 | 42 | 926 | >100.0 | >100.0 | >100.0 | 3.8 | 22.4 | 4.5 | ||||||||
| Other Eye Care* | 375 | 488 | 863 | >100.0 | >100.0 | >100.0 | 12.4 | 12.1 | 12.2 | ||||||||
| Women's Health | 555 | 18 | 573 | 38.9 | 5.0 | 37.4 | (17.2) | (36.6) | (18.0) | ||||||||
| Lo Loestrin* | 300 | 9 | 309 | 43.7 | 55.6 | 44.1 | (21.4) | (9.0) | (21.1) | ||||||||
| Orilissa/Oriahnn | 102 | 4 | 106 | 20.5 | 63.2 | 21.8 | 20.5 | 51.9 | 21.5 | ||||||||
| Other Women's Health* | 153 | 5 | 158 | 44.0 | (51.3) | 36.8 | (25.0) | (73.5) | (28.2) | ||||||||
| Other Key Products | 3,176 | 884 | 4,060 | 14.1 | (2.3) | 10.1 | 3.6 | (7.2) | 1.1 | ||||||||
| Mavyret | 557 | 726 | 1,283 | (1.3) | (7.4) | (4.8) | (1.3) | (11.2) | (7.0) | ||||||||
| Creon | 864 | — | 864 | 6.6 | n/a | 6.6 | 6.6 | n/a | 6.6 | ||||||||
| Lupron | 456 | 135 | 591 | (1.2) | 22.8 | 3.4 | (1.2) | 18.7 | 2.6 | ||||||||
| Linzess/Constella* | 728 | 23 | 751 | 96.4 | >100.0 | 96.9 | 11.4 | 7.2 | 11.2 | ||||||||
| Synthroid | 571 | — | 571 | (1.1) | n/a | (1.1) | (1.1) | n/a | (1.1) |
| a | "Comparable Operational" comparisons include full-period current year and prior year results for Allergan products, as if the acquisition closed on January 1, 2019, and are presented at constant currency rates that reflect comparative local currency net revenues at the prior year's foreign exchange rates. |
| b | All historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and reporting conventions for certain rebates and discounts. Historically reported Allergan revenues also exclude Zenpep and Viokace product revenues, which were both divested as part of the acquisition, as well as specified items. |
| c | Adjusted net revenues exclude specified items. Refer to the Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for further details. Percentage change is calculated using adjusted net revenues. |
| d | Reflects profit sharing for Imbruvica international revenues. |
| * | Represents product(s) acquired as part of the Allergan acquisition. |
| n/a = not applicable |
| AbbVie Inc. | |||||||||||||||||||||||||
| Consolidated Statements of Earnings | |||||||||||||||||||||||||
| Quarter and Nine Months Ended September 30, 2021 and 2020 | |||||||||||||||||||||||||
| (Unaudited) (In millions, except per share data) | |||||||||||||||||||||||||
| Third Quarter Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Net revenues | $ | 14,342 | $ | 12,902 | $ | 41,311 | $ | 31,946 | |||||||||||||||||
| Cost of products sold | 4,390 | 5,050 | 13,126 | 10,703 | |||||||||||||||||||||
| Selling, general and administrative | 3,083 | 2,846 | 9,089 | 8,068 | |||||||||||||||||||||
| Research and development | 1,673 | 1,706 | 5,257 | 4,667 | |||||||||||||||||||||
| Acquired in-process research and development | 390 | 45 | 557 | 898 | |||||||||||||||||||||
| Other operating expense, net | 500 | — | 432 | — | |||||||||||||||||||||
| Total operating costs and expenses | 10,036 | 9,647 | 28,461 | 24,336 | |||||||||||||||||||||
| Operating earnings | 4,306 | 3,255 | 12,850 | 7,610 | |||||||||||||||||||||
| Interest expense, net | 585 | 620 | 1,813 | 1,662 | |||||||||||||||||||||
| Net foreign exchange loss | 12 | 20 | 35 | 54 | |||||||||||||||||||||
| Other expense, net | 21 | 115 | 2,284 | 989 | |||||||||||||||||||||
| Earnings before income tax expense | 3,688 | 2,500 | 8,718 | 4,905 | |||||||||||||||||||||
| Income tax expense | 508 | 187 | 1,214 | 321 | |||||||||||||||||||||
| Net earnings | 3,180 | 2,313 | 7,504 | 4,584 | |||||||||||||||||||||
| Net earnings attributable to noncontrolling interest | 1 | 5 | 6 | 4 | |||||||||||||||||||||
| Net earnings attributable to AbbVie Inc. | $ | 3,179 | $ | 2,308 | $ | 7,498 | $ | 4,580 | |||||||||||||||||
| Diluted earnings per share attributable to AbbVie Inc. | $ | 1.78 | $ | 1.29 | $ | 4.19 | $ | 2.77 | |||||||||||||||||
| Adjusted diluted earnings per share a | $ | 3.33 | $ | 2.83 | $ | 9.39 | $ | 7.62 | |||||||||||||||||
| Weighted-average diluted shares outstanding | 1,777 | 1,774 | 1,776 | 1,637 |
| AbbVie Inc. | |||||||||||||||||||||||
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information | |||||||||||||||||||||||
| Quarter Ended September 30, 2021 | |||||||||||||||||||||||
| (Unaudited) (In millions, except per share data) | |||||||||||||||||||||||
| 1. Specified items impacted results as follows: | |||||||||||||||||||||||
| 3Q21 | |||||||||||||||||||||||
| Earnings | Diluted | ||||||||||||||||||||||
| Pre-tax | After-tax a | EPS | |||||||||||||||||||||
| As reported (GAAP) | $ | 3,688 | $ | 3,179 | $ | 1.78 | |||||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||
| Intangible asset amortization | 1,904 | 1,585 | 0.88 | ||||||||||||||||||||
| Acquisition and integration costs | 176 | 166 | 0.09 | ||||||||||||||||||||
| Milestones and other R&D expenses | 12 | 12 | 0.01 | ||||||||||||||||||||
| Acquired IPR&D | 390 | 384 | 0.21 | ||||||||||||||||||||
| Calico collaboration | 500 | 500 | 0.28 | ||||||||||||||||||||
| Change in fair value of contingent consideration | 98 | 98 | 0.06 | ||||||||||||||||||||
| Other | 48 | 29 | 0.02 | ||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 6,816 | $ | 5,953 | $ | 3.33 | |||||||||||||||||
| a Represents net earnings attributable to AbbVie Inc. | |||||||||||||||||||||||
| Acquisition and integration costs reflect Allergan-related integration costs. Milestones and other R&D expenses include milestone payments for previously announced collaborations. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes restructuring charges associated with streamlining global operations and COVID-19 related expenses. | |||||||||||||||||||||||
| 2. The impact of the specified items by line item was as follows: | |||||||||||||||||||||||
| 3Q21 | |||||||||||||||||||||||
| Cost of products sold | SG&A | R&D | Acquired IPR&D | Other operating expense, net | Other expense, net | ||||||||||||||||||
| As reported (GAAP) | $ | 4,390 | $ | 3,083 | $ | 1,673 | $ | 390 | $ | 500 | $ | 21 | |||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||
| Intangible asset amortization | (1,904) | — | — | — | — | — | |||||||||||||||||
| Acquisition and integration costs | (49) | (105) | (22) | — | — | — | |||||||||||||||||
| Milestones and other R&D expenses | — | — | (12) | — | — | — | |||||||||||||||||
| Acquired IPR&D | — | — | — | (390) | — | — | |||||||||||||||||
| Calico collaboration | — | — | — | — | (500) | — | |||||||||||||||||
| Change in fair value of contingent consideration | — | — | — | — | — | (98) | |||||||||||||||||
| Other | (24) | (17) | (7) | — | — | — | |||||||||||||||||
| As adjusted (non-GAAP) | $ | 2,413 | $ | 2,961 | $ | 1,632 | $ | — | $ | — | $ | (77) | |||||||||||
| 3. The adjusted tax rate for the third quarter of 2021 was 12.6 percent, as detailed below: | |||||||||||||||||||||||
| 3Q21 | |||||||||||||||||||||||
| Pre-tax earnings | Income taxes | Tax rate | |||||||||||||||||||||
| As reported (GAAP) | $ | 3,688 | $ | 508 | 13.8 | % | |||||||||||||||||
| Specified items | 3,128 | 354 | 11.3 | % | |||||||||||||||||||
| As adjusted (non-GAAP) | $ | 6,816 | $ | 862 | 12.6 | % |
| AbbVie Inc. | |||||||||||||||||||||||||||
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information | |||||||||||||||||||||||||||
| Quarter Ended September 30, 2020 | |||||||||||||||||||||||||||
| (Unaudited) (In millions, except per share data) | |||||||||||||||||||||||||||
| 1. Specified items impacted results as follows: | |||||||||||||||||||||||||||
| 3Q20 | |||||||||||||||||||||||||||
| Earnings | Diluted | ||||||||||||||||||||||||||
| Pre-tax | After-tax a | EPS | |||||||||||||||||||||||||
| As reported (GAAP) | $ | 2,500 | $ | 2,308 | $ | 1.29 | |||||||||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||
| Intangible asset amortization | 2,117 | 1,800 | 1.02 | ||||||||||||||||||||||||
| Acquisition and integration costs | 792 | 682 | 0.38 | ||||||||||||||||||||||||
| Milestones and other R&D expenses | 40 | 38 | 0.02 | ||||||||||||||||||||||||
| Acquired IPR&D | 45 | 45 | 0.02 | ||||||||||||||||||||||||
| Change in fair value of contingent consideration | 197 | 197 | 0.11 | ||||||||||||||||||||||||
| Other | 30 | (22) | (0.01) | ||||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 5,721 | $ | 5,048 | $ | 2.83 | |||||||||||||||||||||
| a Represents net earnings attributable to AbbVie Inc. | |||||||||||||||||||||||||||
| Acquisition and integration costs reflect amortization of the acquisition date fair value step-up for inventory as well as compensation expense and other integration costs related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes tax settlements and COVID-19 related expenses. | |||||||||||||||||||||||||||
| 2. The impact of the specified items by line item was as follows: | |||||||||||||||||||||||||||
| 3Q20 | |||||||||||||||||||||||||||
| Net revenues | Cost of products sold | SG&A | R&D | Acquired IPR&D | Net foreign exchange loss | Other expense, net | |||||||||||||||||||||
| As reported (GAAP) | $ | 12,902 | $ | 5,050 | $ | 2,846 | $ | 1,706 | $ | 45 | $ | 20 | $ | 115 | |||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||
| Intangible asset amortization | — | (2,117) | — | — | — | — | — | ||||||||||||||||||||
| Acquisition and integration costs | — | (551) | (104) | (137) | — | — | — | ||||||||||||||||||||
| Milestones and other R&D expenses | — | — | — | (40) | — | — | — | ||||||||||||||||||||
| Acquired IPR&D | — | — | — | — | (45) | — | — | ||||||||||||||||||||
| Change in fair value of contingent consideration | — | — | — | — | — | — | (197) | ||||||||||||||||||||
| Other | (20) | (20) | (19) | (16) | — | 5 | — | ||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 12,882 | $ | 2,362 | $ | 2,723 | $ | 1,513 | $ | — | $ | 25 | $ | (82) | |||||||||||||
| 3. The adjusted tax rate for the third quarter of 2020 was 11.7 percent, as detailed below: | |||||||||||||||||||||||||||
| 3Q20 | |||||||||||||||||||||||||||
| Pre-tax earnings | Income taxes | Tax rate | |||||||||||||||||||||||||
| As reported (GAAP) | $ | 2,500 | $ | 187 | 7.5 | % | |||||||||||||||||||||
| Specified items | 3,221 | 481 | 14.9 | % | |||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 5,721 | $ | 668 | 11.7 | % |
| AbbVie Inc. | |||||||||||||||||||||||||||
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information | |||||||||||||||||||||||||||
| Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||
| (Unaudited) (In millions, except per share data) | |||||||||||||||||||||||||||
| 1. Specified items impacted results as follows: | |||||||||||||||||||||||||||
| 9M21 | |||||||||||||||||||||||||||
| Earnings | Diluted | ||||||||||||||||||||||||||
| Pre-tax | After-tax a | EPS | |||||||||||||||||||||||||
| As reported (GAAP) | $ | 8,718 | $ | 7,498 | $ | 4.19 | |||||||||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||
| Intangible asset amortization | 5,912 | 4,929 | 2.77 | ||||||||||||||||||||||||
| Acquisition and integration costs | 535 | 427 | 0.23 | ||||||||||||||||||||||||
| Milestones and other R&D expenses | 359 | 307 | 0.17 | ||||||||||||||||||||||||
| Acquired IPR&D | 557 | 543 | 0.30 | ||||||||||||||||||||||||
| Calico collaboration | 500 | 500 | 0.28 | ||||||||||||||||||||||||
| Change in fair value of contingent consideration | 2,447 | 2,445 | 1.38 | ||||||||||||||||||||||||
| Litigation matters | 107 | 86 | 0.05 | ||||||||||||||||||||||||
| Other | 47 | 42 | 0.02 | ||||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 19,182 | $ | 16,777 | $ | 9.39 | |||||||||||||||||||||
| a Represents net earnings attributable to AbbVie Inc. | |||||||||||||||||||||||||||
| Acquisition and integration costs reflect integration costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of FDA priority review vouchers from third parties. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes restructuring charges associated with streamlining global operations and COVID-19 related expenses, offset by milestone revenue under an existing collaboration agreement. | |||||||||||||||||||||||||||
| 2. The impact of the specified items by line item was as follows: | |||||||||||||||||||||||||||
| 9M21 | |||||||||||||||||||||||||||
| Net revenues | Cost of products sold | SG&A | R&D | Acquired IPR&D | Other operating expense, net | Other expense, net | |||||||||||||||||||||
| As reported (GAAP) | $ | 41,311 | $ | 13,126 | $ | 9,089 | $ | 5,257 | $ | 557 | $ | 432 | $ | 2,284 | |||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||
| Intangible asset amortization | — | (5,912) | — | — | — | — | — | ||||||||||||||||||||
| Acquisition and integration costs | — | (172) | (275) | (88) | — | — | — | ||||||||||||||||||||
| Milestones and other R&D expenses | — | — | — | (359) | — | — | — | ||||||||||||||||||||
| Acquired IPR&D | — | — | — | — | (557) | — | — | ||||||||||||||||||||
| Calico collaboration | — | — | — | — | — | (500) | — | ||||||||||||||||||||
| Change in fair value of contingent consideration | — | — | — | — | — | — | (2,447) | ||||||||||||||||||||
| Litigation matters | — | — | (107) | — | — | — | — | ||||||||||||||||||||
| Other | (75) | (65) | (50) | (90) | — | 68 | 15 | ||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 41,236 | $ | 6,977 | $ | 8,657 | $ | 4,720 | $ | — | $ | — | $ | (148) | |||||||||||||
| 3. The adjusted tax rate for the first nine months of 2021 was 12.5 percent, as detailed below: | |||||||||||||||||||||||||||
| 9M21 | |||||||||||||||||||||||||||
| Pre-tax earnings | Income taxes | Tax rate | |||||||||||||||||||||||||
| As reported (GAAP) | $ | 8,718 | $ | 1,214 | 13.9 | % | |||||||||||||||||||||
| Specified items | 10,464 | 1,185 | 11.3 | % | |||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 19,182 | $ | 2,399 | 12.5 | % |
| AbbVie Inc. | |||||||||||||||||||||||||||||||
| Reconciliation of GAAP Reported to Non-GAAP Adjusted Information | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||
| (Unaudited) (In millions, except per share data) | |||||||||||||||||||||||||||||||
| 1. Specified items impacted results as follows: | |||||||||||||||||||||||||||||||
| 9M20 | |||||||||||||||||||||||||||||||
| Earnings | Diluted | ||||||||||||||||||||||||||||||
| Pre-tax | After-tax a | EPS | |||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 4,905 | $ | 4,580 | $ | 2.77 | |||||||||||||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||||||
| Intangible asset amortization | 3,967 | 3,361 | 2.05 | ||||||||||||||||||||||||||||
| Acquisition and integration costs | 2,899 | 2,624 | 1.60 | ||||||||||||||||||||||||||||
| Milestones and other R&D expenses | 225 | 202 | 0.12 | ||||||||||||||||||||||||||||
| Acquired IPR&D | 898 | 898 | 0.54 | ||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | 1,078 | 1,078 | 0.65 | ||||||||||||||||||||||||||||
| Other | 147 | (187) | (0.11) | ||||||||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 14,119 | $ | 12,556 | $ | 7.62 | |||||||||||||||||||||||||
| a Represents net earnings attributable to AbbVie Inc. | |||||||||||||||||||||||||||||||
| Acquisition and integration costs reflect transaction and financing costs, compensation expense and other integration costs as well as amortization of the acquisition date fair value step-up for inventory related to the Allergan acquisition. Milestones and other R&D expenses include milestone payments for previously announced collaborations and the purchase of an FDA priority review voucher from a third party. Acquired IPR&D represents initial costs to acquire rights to in-process R&D projects through R&D collaborations, licensing arrangements or other asset acquisitions. Other primarily includes the impacts of tax law changes, tax settlements and COVID-19 related charitable contributions and expenses. | |||||||||||||||||||||||||||||||
| 2. The impact of the specified items by line item was as follows: | |||||||||||||||||||||||||||||||
| 9M20 | |||||||||||||||||||||||||||||||
| Net revenues | Cost of products sold | SG&A | R&D | Acquired IPR&D | Interest expense, net | Net foreign exchange loss | Other expense, net | ||||||||||||||||||||||||
| As reported (GAAP) | $ | 31,946 | $ | 10,703 | $ | 8,068 | $ | 4,667 | $ | 898 | $ | 1,662 | $ | 54 | $ | 989 | |||||||||||||||
| Adjusted for specified items: | |||||||||||||||||||||||||||||||
| Intangible asset amortization | — | (3,967) | — | — | — | — | — | — | |||||||||||||||||||||||
| Acquisition and integration costs | — | (1,020) | (1,290) | (315) | — | (274) | — | — | |||||||||||||||||||||||
| Milestones and other R&D expenses | — | — | — | (225) | — | — | — | — | |||||||||||||||||||||||
| Acquired IPR&D | — | — | — | — | (898) | — | — | — | |||||||||||||||||||||||
| Change in fair value of contingent consideration | — | — | — | — | — | — | — | (1,078) | |||||||||||||||||||||||
| Other | (20) | (64) | (64) | (48) | — | — | 9 | — | |||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 31,926 | $ | 5,652 | $ | 6,714 | $ | 4,079 | $ | — | $ | 1,388 | $ | 63 | $ | (89) | |||||||||||||||
| 3. The adjusted tax rate for the first nine months of 2020 was 11.0 percent, as detailed below: | |||||||||||||||||||||||||||||||
| 9M20 | |||||||||||||||||||||||||||||||
| Pre-tax earnings | Income taxes | Tax rate | |||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 4,905 | $ | 321 | 6.5 | % | |||||||||||||||||||||||||
| Specified items | 9,214 | 1,238 | 13.4 | % | |||||||||||||||||||||||||||
| As adjusted (non-GAAP) | $ | 14,119 | $ | 1,559 | 11.0 | % |