AbbVie 2012 Annual Report Download - page 145

Abbott Laboratories Supplemental Pension Plan
R. A. Gonzalez: $(4,420,361) / $743,082 / $245,389; L. J. Schumacher: $1,464,372 / $939,737 /
$541,637; W. J. Chase: $378,802 / $226,766; C. Alban: $1,521,110 / $628,531; and
J. M. Leonard: $1,374,571 / $789,474.
Non-Qualified Defined Contribution Plan Earnings
The totals in this column include reportable interest credited under the 1998 Abbott Laboratories
Performance Incentive Plan, the Abbott Laboratories 401(k) Supplemental Plan, and the 1986
Abbott Laboratories Management Incentive Plan.
R. A. Gonzalez: $64,503 / $106,658 / $63,866; L. J. Schumacher: $177,393 / $112,511 / $49,329;
W. J. Chase: $23,972 / $12,381; C. Alban: $75,700 / $43,995; and J. M. Leonard: $168,838 /
$119,585.
The present value of a pension benefit is determined, in part, by the discount rate used for
accounting purposes. As required by the Financial Accounting Standards Board, that discount rate
is determined by reference to the prevailing market rate of interest. In 2012, interest rates declined
and the discount rate used for the Annuity Retirement Plan and Supplemental Pension Plan was
reduced to reflect that decline. A reduction in the discount rate increases the present value of
participants’ pensions while actual payments to be made to participants are not changed. The
discount rate used for 2012 was 4.49%. The discount rate used for 2011 was 5.18%.
The change in pension value included in this total is the result of the following factors: (i) the
impact of changes in the actuarial assumptions Abbott uses to calculate plan liability for financial
reporting purposes, primarily the change in discount rate; (ii) additional pension benefit accrual
under the Annuity Retirement Plan and Supplemental Pension Plan; (iii) the impact of the time
value of money on the pension value; and (iv) with respect to Mr. Gonzalez, distributions made
from these plans, as described in footnote (3) to the Pension Benefits Table on page 41.
(6) The amounts shown below are reported in this column.
For Mr. Gonzalez and Ms. Schumacher, the amounts shown alongside the officer’s name are for
2012, 2011, and 2010, respectively. For Messrs. Chase and Alban and Dr. Leonard, the amounts
shown are for 2012 and 2011.
Earnings, Fees and Tax Payments for Non-Qualified Defined Benefit and Non-Qualified Defined
Contribution Plans (net of the reportable interest included in footnote (5)).
R. A. Gonzalez: $154,681 / $72,623 / $76,225; L. J. Schumacher: $97,801 / $88,141 / $65,627;
W. J. Chase: $13,526 / $12,458; C. Alban: $42,667 / $33,977; and J. M. Leonard: $90,813 / $82,639.
Each of the named executive officers’ awards under the 1998 Abbott Laboratories Performance
Incentive Plan or the 1986 Abbott Laboratories Management Incentive Plan is paid in cash to the
named executive officer on a current basis and may be deposited into a grantor trust established by
the named executive officer, net of maximum tax withholdings. Each of the named executive
officers has also established grantor trusts in connection with the Abbott Laboratories
Supplemental Pension Plan and the Abbott Laboratories 401(k) Supplemental Plan. These
amounts include the earnings (net of the reportable interest included in footnote (5)), fees, and tax
payments paid in connection with these grantor trusts.
Employer Contributions to Defined Contribution Plans
R. A. Gonzalez: $0 / $0 / $0; L. J. Schumacher: $41,584 / $41,375 / $41,166; W. J. Chase: $19,947 /
$18,750; C. Alban: $30,788 / $30,124; and J. M. Leonard: $32,008 / $31,825.
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