AbbVie 2012 Annual Report Download - page 161

Deloitte Entities. As a result, the amounts reported below are not necessarily representative of the fees
AbbVie would expect to pay its auditors and their related affiliates in future years.
2012 2011
Audit fees:(1) .............................................. $17,978,000 $17,472,000
Audit related fees:(2) ........................................ 9,083,000 956,000
Tax fees:(3) ............................................... 186,000 737,000
All other fees:(4) ........................................... 1,151,000 357,000
Total .................................................... $28,398,000 $19,522,000
(1) The Deloitte Entities billed or will bill Abbott for professional services rendered for the audit of
Abbott’s annual financial statements, the audits of Abbott’s internal control over financial
reporting, statutory and subsidiary audits, the review of documents filed with the Securities and
Exchange Commission, and certain accounting consultations in connection with the audits.
(2) Audit related fees include: accounting consultations and audits in connection with proposed
acquisitions and divestitures, audits of certain employee benefit plans’ financial statements, and, in
2012, audits and audit related services in connection with the separation of AbbVie from Abbott,
including associated filings with the Securities and Exchange Commission.
(3) Tax fees consist principally of professional services rendered by the Deloitte Entities for tax
compliance and tax planning and advice including assistance with tax audits and appeals, and tax
advice related to mergers and acquisitions.
(4) All other fees primarily represent consulting services for an information technology project
engagement Abbott entered with a firm before that firm’s acquisition by a Deloitte Entity in 2011.
Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of the
Independent Auditor
The audit committee has established policies and procedures to pre-approve all audit and
permissible non-audit services performed by the independent auditor and its related affiliates.
Prior to engagement of the independent registered public accounting firm for the next year’s audit,
management will submit a schedule of all proposed services expected to be rendered during that year
for each of four categories of services to the audit committee for approval.
Prior to engagement, the audit committee pre-approves these services by category of service. The
fees are budgeted and the audit committee requires the independent registered public accounting firm
and management to report actual fees versus the budget periodically by category of service. During the
year, circumstances may arise when it may become necessary to engage the independent registered
public accounting firm for additional services not contemplated in the original pre-approval. In those
instances, the audit committee requires specific pre-approval before engaging the independent
registered public accounting firm.
The audit committee may delegate pre-approval authority to one or more of its members. The
member to whom such authority is delegated must report any pre-approval decisions to the audit
committee at its next scheduled meeting.
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