AbbVie 2013 Annual Report Download - page 44

were reflected in the combined balance sheet outside of net parent company investment in AbbVie Inc.
As of December 31, 2013 and 2012, the aggregate amount due from Abbott totaled $738 million and
$696 million, respectively, and was classified in accounts and other receivables, net. The aggregate
amount due to Abbott totaled $876 million and $923 million as of December 31, 2013 and 2012,
respectively, and was classified in accounts payable and accrued liabilities.
The historical combined financial statements also reflected an allocation of expenses related to certain
Abbott corporate functions, including senior management, legal, human resources, finance, information
technology and quality assurance. These expenses were allocated to AbbVie based on direct usage or
benefit where identifiable, with the remainder allocated on a pro rata basis of revenues, headcount,
square footage, number of transactions or other measures. AbbVie considers the expense allocation
methodology and results to be reasonable. However, the allocations may not be indicative of the actual
expenses that would have been incurred had AbbVie operated as an independent, stand-alone, publicly-
traded company for the periods presented.
RESULTS OF OPERATIONS
Net Sales
Percent change
At actual At constant
currency currency
rates rates
for the years ended (in millions) 2013 2012 2011 2013 2012 2013 2012
United States $10,181 $10,435 $ 9,712 (2)% 8% (2)% 8%
International 8,609 7,945 7,732 8% 3% 10% 8%
Net sales $18,790 $18,380 $17,444 2% 5% 3% 8%
The comparisons presented at constant currency rates reflect comparative local currency sales at the
prior year’s foreign exchange rates. This measure provides information on the change in net sales
assuming that foreign currency exchange rates had not changed between the prior and the current
period. AbbVie believes that the non-GAAP measure of change in net sales at constant currency rates,
when used in conjunction with the GAAP measure of change in net sales at actual currency rates, may
provide a more complete understanding of the company’s operations and can facilitate analysis of the
company’s results of operations, particularly in evaluating performance from one period to another.
Sales growth in 2013 was driven by the continued strength of HUMIRA, both in the United States and
internationally as well as sales of key products including Synthroid, Creon and Duodopa. Sales
increased in 2013 despite unfavorable foreign exchange rate fluctuations and the loss of exclusivity for
AbbVie’s consolidated lipid franchise. Generic competition began in November 2012 for TriCor, in July
2013 for TRILIPIX and in September of 2013 for Niaspan. The increase in sales in 2012 was primarily
due to higher HUMIRA sales, partially offset by the impact of unfavorable foreign currency and the
entry of generic competition for TriCor in November 2012.
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