Leases
AbbVie's lease portfolio primarily consists of real estate properties, vehicles and equipment. The following table summarizes the amounts and location of operating and finance leases on the consolidated balance sheets:
| | | | | | | | | | | | | | |
| as of December 31 (in millions) | Balance sheet caption | 2025 | | 2024 |
| Assets | | | | |
| Operating | Other assets | $ | 737 | | | $ | 723 | |
| Finance | Property and equipment, net | 44 | | | 33 | |
| Total lease assets | | $ | 781 | | | $ | 756 | |
| Liabilities | | | | |
| Operating | | | | |
| Current | Accounts payable and accrued liabilities | $ | 194 | | | $ | 178 | |
| Noncurrent | Other long-term liabilities | 689 | | | 697 | |
| Finance | | | | |
| Current | Current portion of long-term debt and finance lease obligations | 19 | | | 17 | |
| Noncurrent | Long-term debt and finance lease obligations | 22 | | | 23 | |
| Total lease liabilities | | $ | 924 | | | $ | 915 | |
The following table summarizes the lease costs recognized in the consolidated statements of earnings:
| | | | | | | | | | | | | | | | | | | | |
| years ended December 31 (in millions) | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 213 | | | $ | 196 | | | $ | 189 | |
| | | | | | |
| | | | | | |
| | | | | | |
| Short-term lease cost | | 75 | | | 65 | | | 28 | |
| Variable lease cost | | 104 | | | 86 | | | 88 | |
| Total lease cost | | $ | 392 | | | $ | 347 | | | $ | 305 | |
Sublease income and finance lease costs were insignificant in 2025, 2024 and 2023.
The following table presents the weighted-average remaining lease term and weighted-average discount rate for operating and finance leases: | | | | | | | | | | | | | | | | | |
| years ended December 31 | 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease term (years) | | | | | |
| Operating | 6 | | 7 | | 7 |
| Finance | 4 | | 5 | | 3 |
| Weighted-average discount rate | | | | | |
| Operating | 3.5 | % | | 3.3 | % | | 3.0 | % |
| Finance | 4.3 | % | | 4.2 | % | | 3.6 | % |
The following table presents supplementary cash flow information regarding the company's leases: | | | | | | | | | | | | | | | | | |
| years ended December 31 (in millions) | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Operating cash flows from operating leases | $ | 230 | | | $ | 204 | | | $ | 214 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 212 | | | 159 | | | 173 | |
Finance lease cash flows were insignificant in 2025, 2024 and 2023.
The following table summarizes the future maturities of AbbVie's operating and finance lease liabilities as of December 31, 2025: | | | | | | | | | | | | | | | | | |
| (in millions) | Operating
leases | | Finance
leases | | Total(a) |
| 2026 | $ | 224 | | | $ | 21 | | | $ | 245 | |
| 2027 | 187 | | | 11 | | | 198 | |
| 2028 | 157 | | | 7 | | | 164 | |
| 2029 | 133 | | | 3 | | | 136 | |
| 2030 | 100 | | | — | | | 100 | |
| Thereafter | 184 | | | 2 | | | 186 | |
| Total lease payments | 985 | | | 44 | | | 1,029 | |
| Less: Interest | 102 | | | 3 | | | 105 | |
| Present value of lease liabilities | $ | 883 | | | $ | 41 | | | $ | 924 | |
(a)Lease payments recognized as part of lease liabilities for optional renewal periods are insignificant.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.