AbbVie 2012 Annual Report Download - page 93

Expected Pension and Other Post-Employment Payments
Other
Defined post-employment
(in millions) benefit plans plans
2013 $58 $7
2014 59 7
2015 60 8
2016 64 8
2017 65 9
2018 to 2022 363 53
The above table reflects total benefit payments expected to be paid to participants, which includes
payments funded from company assets as well as paid from the plans.
Other
AbbVie employees also participate in the Abbott Laboratories Stock Retirement Plan, which is
Abbott’s principal defined contribution plan. AbbVie recorded expense of $67 million, $68 million and
$65 million for the years ended December 31, 2012, 2011 and 2010, respectively, related to this plan.
AbbVie provides certain other post-employment benefits, primarily salary continuation plans, to
qualifying employees and accrues for the related cost over the service lives of the employees.
Note 10 Stock-Based Compensation
Prior to separation, AbbVie employees participated in Abbott’s incentive stock program. In conjunction
with the separation, the company adopted the AbbVie Incentive Stock Program, which provides for the
assumption of certain awards granted under the Abbott incentive stock program and authorizes the
grant of several different forms of benefits including nonqualified stock options, restricted stock awards
(RSAs), and restricted stock units (RSUs). The AbbVie Incentive Stock Program initially reserved
100 million shares of common stock for issuance with respect to awards for participants. Subsequent to
year-end, this reserve was reduced by approximately 7 million shares for stock option, RSA and RSU
awards granted by AbbVie’s Board of Directors.
The following disclosures represent the portion of Abbott’s incentive stock program in which AbbVie
employees participated. All awards granted under the program consisted of Abbott common shares. As
such, all related equity account balances are reflected in Abbott’s consolidated statements of
stockholders’ equity and have not been reflected in AbbVie’s combined financial statements. AbbVie’s
combined statements of earnings reflects compensation expense for these stock-based awards associated
with the portion of Abbott’s incentive stock program in which AbbVie employees participated;
accordingly, the amounts presented are not necessarily indicative of future performance and do not
necessarily reflect the results that AbbVie would have experienced as an independent, publicly-traded
company for the periods presented.
All equity award amounts presented below have not been converted to reflect the separation from
Abbott. Upon the separation on January 1, 2013, holders of Abbott stock options, RSAs and RSUs
generally received one AbbVie stock-based award for each Abbott stock-based award outstanding. The
value of the combined Abbott and AbbVie stock-based awards after separation was designed to
generally preserve the intrinsic value and the fair value of the award immediately prior to separation.
The per share data presented in this Note has not been adjusted to reflect the impact of the
separation.
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