AbbVie 2013 Annual Report Download - page 152

L. Schumacher with respect to original option grants made before 2005. Except for outstanding
options that have a replacement option feature, options granted to the named executive officers
after 2004 do not include a replacement option feature. Additional information about replacement
options is included in the footnotes to the 2013 Grants of Plan-Based Awards table.
(3) These amounts were determined as of the option grant date using a Black-Scholes stock option
valuation model (except for replacement options, which are determined using a lattice model).
These amounts are being reported solely for the purpose of comparative disclosure in accordance
with the Securities and Exchange Commission rules. There is no certainty that the amount
determined using a Black-Scholes stock option valuation model would be the value at which
employee stock options would be traded for cash. For options, other than the replacement options,
the assumptions used to determine the grant date fair value are those described in Note 11,
‘‘Equity,’’ of AbbVie’s Notes to Consolidated Financial Statements included under Item 8,
‘‘Financial Statements and Supplementary Data,’’ in AbbVie’s 2013 Annual Report on SEC
Form 10-K. For AbbVie replacement options, the valuation model used the following assumptions:
expected volatility of 29.57%, dividend yield of 3.64%, risk-free interest of 0.7%, and an option life
equal to 0.51 years. For Abbott replacement options, the valuation model used the following
assumptions: expected volatility of 14%, dividend yield of 1.6%, risk-free interest of 0.2%, and an
option life equal to 0.5 years.
(4) The compensation reported in this column for 2013 was earned as a performance-based incentive
bonus pursuant to the AbbVie 2013 Performance Incentive Plan. Additional information regarding
the plan can be found in the section of this proxy statement captioned ‘‘Compensation Discussion
and Analysis—How Executive Pay Decisions Are Made—Short-Term Incentives.’’
(5) Except as provided below, the plan amounts shown below are reported in this column.
The amounts shown beside each named executive officer’s name are for 2013, 2012, and 2011,
respectively, as applicable. Negative amounts under the AbbVie Pension Plan and the AbbVie
Supplemental Pension Plan are excluded from this column in accordance with SEC rules.
AbbVie Pension Plan
R. Gonzalez: $3,002 / $(426,732) / $33,248; L. Schumacher: $33,119 / $129,541 / $85,875; W. Chase:
$(43,043) / $96,217 / $77,342; C. Alban: $(42,843) / $204,199 / $101,829; and T. Richmond: $(375).
AbbVie Supplemental Pension Plan
R. Gonzalez: $(717,929) / $(4,420,361) / $743,082; L. Schumacher: $783,337 / $1,464,372 / $939,737;
W. Chase: $336,946 / $378,802 / $226,766; C. Alban: $401,517 / $1,521,110 / $628,531; and
T. Richmond: $53,630.
The changes in pension value result primarily from the following factors: (i) the effect of changes
in the actuarial assumptions AbbVie uses to calculate plan liability for financial reporting purposes,
primarily the change in discount rate; (ii) additional pension benefit accrual under the Pension
Plan and the Supplemental Pension Plan; and (iii) the impact of the time value of money on the
pension value.
Non-Qualified Defined Contribution Plan Earnings
The totals in this column include reportable interest credited under the AbbVie 2013 Performance
Incentive Plan and the AbbVie Supplemental Savings Plan.
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