Rendering

Component: (Network and Table)
Network
2311301 - Disclosure - Post-Employment Benefits (Tables)
(http://www.abbvie.com/role/PostEmploymentBenefitsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Postemployment Benefits [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Postemployment Benefits [Abstract]
 
Schedule of benefit plan information
The benefit plan information in the table below pertains to the global AbbVie-sponsored defined benefit and other post-employment plans:
 
Defined
benefit plans
 
Other
post-employment
plans
as of and for the years ended December 31 (in millions)
2016
 
2015
 
2016
 
2015
Projected benefit obligations
 
 
 
 
 
 
 
Beginning of period
$
5,387

 
$
5,681

 
$
557

 
$
538

Service cost
210

 
227

 
25

 
25

Interest cost
201

 
219

 
24

 
23

Employee contributions
1

 
2

 

 

Actuarial loss (gain)
313

 
(467
)
 
33

 
(17
)
Benefits paid
(163
)
 
(158
)
 
(12
)
 
(11
)
Other, primarily foreign currency translation adjustments
(120
)
 
(117
)
 

 
(1
)
End of period
5,829

 
5,387

 
627

 
557

Fair value of plan assets
 
 
 
 
 
 
 
Beginning of period
4,174

 
4,173

 

 

Actual return (loss) on plan assets
383

 
(25
)
 

 

Company contributions
273

 
217

 
12

 
11

Employee contributions
1

 
2

 

 

Benefits paid
(163
)
 
(158
)
 
(12
)
 
(11
)
Other, primarily foreign currency translation adjustments
(96
)
 
(35
)
 

 

End of period
4,572

 
4,174

 

 

Funded status end of period
$
(1,257
)
 
$
(1,213
)
 
$
(627
)
 
$
(557
)
 
 
 
 
 
 
 
 
Amounts recognized on the consolidated balance sheets
 
 
 
 
 
 
 
Other assets
$
240

 
$
214

 
$

 
$

Accounts payable and accrued liabilities
(25
)
 
(24
)
 
(14
)
 
(11
)
Other long-term liabilities
(1,472
)
 
(1,403
)
 
(613
)
 
(546
)
Net obligation
$
(1,257
)
 
$
(1,213
)
 
$
(627
)
 
$
(557
)
Actuarial loss, net
$
2,118

 
$
1,939

 
$
179

 
$
154

Prior service cost (credit)
14

 
16

 
(37
)
 
(45
)
Accumulated other comprehensive loss
$
2,132

 
$
1,955

 
$
142

 
$
109

 
 
Summary of pretax gains and losses included in other comprehensive income (loss)
The following table summarizes the pre-tax gains and losses included in other comprehensive loss:
years ended December 31 (in millions)
2016
 
2015
 
2014
Defined benefit plans
 
 
 
 
 
Actuarial loss (gain)
$
284

 
$
(117
)
 
$
1,127

Prior service cost

 

 
1

Amortization of actuarial loss and prior service cost
(85
)
 
(127
)
 
(68
)
Foreign exchange gain
(22
)
 
(37
)
 
(41
)
Total pre-tax loss (gain) recognized in other comprehensive loss
$
177

 
$
(281
)
 
$
1,019

Other post-employment plans
 
 
 
 
 
Actuarial loss (gain)
$
33

 
$
(17
)
 
$
111

Prior service credit

 

 
(13
)
Amortization of actuarial loss and prior service cost (credit)

 
(2
)
 
3

Total pre-tax loss (gain) recognized in other comprehensive loss
$
33

 
$
(19
)
 
$
101

 
 
Summary of net periodic benefit cost relating to the company's defined benefit and other post-employment plans
Net Periodic Benefit Cost

years ended December 31 (in millions)
2016
 
2015
 
2014
Defined benefit plans
 
 
 
 
 
Service cost
$
210

 
$
227

 
$
173

Interest cost
201

 
219

 
217

Expected return on plan assets
(354
)
 
(325
)
 
(302
)
Amortization of actuarial loss and prior service cost
85

 
127

 
68

Net periodic benefit cost
$
142

 
$
248

 
$
156

Other post-employment plans
 
 
 
 
 
Service cost
$
25

 
$
25

 
$
22

Interest cost
24

 
23

 
22

Amortization of actuarial loss (gain) and prior service cost (credit)

 
2

 
(2
)
Net periodic benefit cost
$
49

 
$
50

 
$
42

 
 
Schedule of weighted-average assumptions used in determining benefit obligations at the measurement date
Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date

as of December 31
2016
 
2015
Defined benefit plans
 
 
 
Discount rate
3.9
%
 
4.4
%
Rate of compensation increases
4.4
%
 
4.4
%
Other post-employment plans
 
 
 
Discount rate
4.7
%
 
4.9
%
 
 
Schedule of weighted-average assumptions used in determining net periodic benefit cost
Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost
years ended December 31
2016
 
2015
 
2014
Defined benefit plans
 
 
 
 
 
Discount rate for determining service cost
4.4
%
 
3.9
%
 
4.9
%
Discount rate for determining interest cost
4.0
%
 
3.9
%
 
4.9
%
Expected long-term rate of return on plan assets
7.9
%
 
7.8
%
 
7.9
%
Expected rate of change in compensation
4.4
%
 
4.4
%
 
5.0
%
Other post-employment plans
 
 
 
 
 
Discount rate for determining service cost
5.1
%
 
4.5
%
 
5.3
%
Discount rate for determining interest cost
4.3
%
 
4.5
%
 
5.3
%
 
 
Schedule of effect of 1% change in assumed health care cost trend rates
As of December 31, 2016, a 1 percentage point change in assumed health care cost trend rates would have the following effects:
 
One percentage point
year ended December 31, 2016 (in millions) (brackets denote a reduction)
Increase
 
Decrease
Service cost and interest cost
$
11

 
$
(9
)
Projected benefit obligation
120

 
(95
)
 
 
Schedule of defined benefit pension plan assets
Defined Benefit Pension Plan Assets
 
 
 
Basis of fair value measurement
as of December 31 (in millions)
2016
 
Quoted prices in
 active markets for
 identical assets
 (Level 1)
 
Significant other
 observable
 inputs
 (Level 2)
 
Significant
 unobservable
 inputs
 (Level 3)
Equities
 
 
 
 
 
 
 
U.S. large cap(a)
$
519

 
$
519

 
$

 
$

U.S. mid cap(b)
63

 
63

 

 

International(c)
97

 
97

 

 

Fixed income securities
 
 
 
 
 
 
 
U.S. government securities(d)
94

 

 
94

 

Corporate debt instruments(d)
243

 
162

 
81

 

Non-U.S. government securities(d)
32

 
30

 
2

 

Other(d)
184

 
179

 
5

 

Absolute return funds(e)
228

 
3

 
225

 

Real assets
31

 
31

 

 

Other(f)
61

 
61

 

 

Total
$
1,552

 
$
1,145

 
$
407

 
$

Total assets measured at NAV
3,020

 
 
 
 
 
 
Fair value of plan assets
$
4,572

 


 


 



 
 
 
Basis of fair value measurement
as of December 31 (in millions)
2015
 
Quoted prices in
 active markets for
 identical assets
 (Level 1)
 
Significant other
 observable
 inputs
 (Level 2)
 
Significant
 unobservable
 inputs
 (Level 3)
Equities
 
 
 
 
 
 
 
U.S. large cap(a)
$
542

 
$
542

 
$

 
$

U.S. mid cap(b)
35

 
35

 

 

International(c)
100

 
100

 

 

Fixed income securities
 
 
 
 
 
 
 
U.S. government securities(d)
93

 
15

 
78

 

Corporate debt instruments(d)
203

 
124

 
79

 

Non-U.S. government securities(d)
35

 
33

 
2

 


Other(d)
126

 
122

 
4

 

Absolute return funds(e)
194

 
2

 
192

 

Real assets
8

 
8

 

 

Other(f)
93

 
93

 

 

Total
$
1,429

 
$
1,074

 
$
355

 
$

Total assets measured at NAV
2,745

 
 
 
 
 
 
Fair value of plan assets
$
4,174

 


 


 



(a)
A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices.
(b)
A mix of index funds and actively managed equity accounts that are benchmarked to various mid cap indices.
(c)
A mix of index funds and actively managed equity accounts that are benchmarked to various non-US equity indices in both developed and emerging markets.
(d)
Securities held by actively managed accounts, index funds and mutual funds.
(e)
Funds having global mandates with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, financial futures, currencies and other securities, with objectives to outperform agreed upon benchmarks of specific return and volatility targets.
(f)
Investments in cash and cash equivalents.
 
 
Schedule of expected defined benefit and other post-employment payments
Expected Defined Benefit and Other Post-Employment Plan Payments
years ending December 31 (in millions)
Defined
 benefit plans
 
Other
 post-employment
 plans
2017
$
174

 
$
14

2018
185

 
17

2019
199

 
20

2020
211

 
20

2021
226

 
22

2022 to 2026
1,351

 
145