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13NOV201221352027
Note 9 Debt, Credit Facilities, and Commitments and Contingencies
.....................................................................................................................................................................................................................................................................................................................................................
The following is a summary of long-term debt as of December 31, 2014 and 2013:
Effective Effective
interest rate interest rate
(in millions) in 2014(a) 2014 in 2013(a) 2013
Floating rate notes due 2015 1.09% $ 500 1.14% $ 500
1.2% notes due 2015 1.31% 3,500 1.31% 3,500
1.75% notes due 2017 1.86% 4,000 1.86% 4,000
2.0% notes due 2018 2.15% 1,000 2.15% 1,000
2.9% notes due 2022 2.97% 3,100 2.97% 3,100
4.4% notes due 2042 4.46% 2,600 4.46% 2,600
Other — 115 — 98
Fair value hedges — (180) — (432)
Unamortized bond discounts — (49) — (56)
Total long-term debt and lease obligations 14,586 14,310
Current portion 4,021 18
Noncurrent portion $10,565 $14,292
(a) Excludes the effect of any related interest rate swaps.
In November 2012, AbbVie issued $14.7 billion aggregate principal amount of senior notes.
Approximately $3.0 billion of these senior notes were issued to Abbott as partial consideration for the
transfer of assets from Abbott to AbbVie. AbbVie used part of the net proceeds from the sale of senior
notes (other than the senior notes issued to Abbott) to finance the payment made in November 2012 of a
$10.2 billion distribution to Abbott, as provided by the terms of the separation agreement. The debt was
guaranteed by Abbott until AbbVie separated from Abbott on January 1, 2013.
AbbVie may redeem all of the senior notes of each series, other than the floating notes due in 2015,
at any time, and some of the senior notes of each series, other than the floating notes due in 2015, from
time to time, at a redemption price equal to the principal amount of the senior notes redeemed plus a
make-whole premium. AbbVie may not redeem the floating notes due in 2015 prior to maturity. At
December 31, 2014, the company was in compliance with its senior note covenants.
Short-Term Borrowings
At December 31, 2014 and 2013, short-term borrowings included $416 million and $400 million,
respectively, of commercial paper borrowings. The weighted-average interest rate on short-term borrowings
was 0.2% and 0.2% for 2014 and 2013, respectively.
Prior to October 2014, AbbVie had a $2.0 billion unsecured five-year revolving credit facility
agreement. In October 2014, AbbVie replaced its existing revolving credit facility with the $3.0 billion
five-year revolving credit facility which also supports commercial paper borrowings. At December 31, 2014,
AbbVie was in compliance with the financial covenants. No borrowings were outstanding under these
facilities at December 31, 2014 and December 31, 2013.
2014 Form 10-K 75