AbbVie 2013 Annual Report Download - page 50

While a significant portion of cash and equivalents at December 31, 2013 are considered reinvested
indefinitely in foreign subsidiaries, AbbVie does not expect such reinvestment to affect its liquidity and
capital resources. If these funds were needed for operations in the United States, AbbVie would be
required to accrue and pay U.S. income taxes to repatriate these funds. AbbVie believes that it has
sufficient sources of liquidity to support its assumption that the disclosed amount of undistributed
earnings at December 31, 2013 has been reinvested indefinitely.
A quarterly dividend of $0.40 per share was paid on common stock in 2013 resulting in total dividends
paid of $2.56 billion for 2013. On December 12, 2013, the board of directors declared a quarterly cash
dividend of $0.40 per share for stockholders of record on January 15, 2014, payable on February 14,
2014. AbbVie expects to pay a regular quarterly cash dividend; however, the timing, declaration,
amount of, and payment of any dividends is within the discretion of its board of directors and will
depend upon many factors, including AbbVie’s financial condition, earnings, capital requirements of its
operating subsidiaries, covenants associated with certain of AbbVie’s debt service obligations, legal
requirements, regulatory constraints, industry practice, ability to access capital markets, and other
factors deemed relevant by its board of directors.
On February 15, 2013, the company announced a $1.5 billion stock repurchase program, which was
effective immediately. Purchases of AbbVie common stock may be made from time to time at
management’s discretion. The plan has no time limit and can be discontinued at any time. During 2013,
AbbVie repurchased approximately 4 million shares of common stock for $223 million in the open
market. AbbVie’s remaining stock repurchase authorization is $1.3 billion as of December 31, 2013.
Substantially all of AbbVie’s trade receivables in Greece, Portugal, Italy and Spain are with
governmental health systems. Global economic conditions and liquidity issues in these countries have
resulted, and may continue to result, in delays in the collection of receivables and credit losses. While
the company continues to receive payments on these receivables, these conditions have resulted in an
increase in the average length of time it takes to collect accounts receivable outstanding.
Outstanding net governmental receivables in these countries at December 31 were as follows.
Net receivables
over one year
Net receivables past due
(in millions) 2013 2012 2013 2012
Greece $ 37 $ 52 $ — $13
Portugal 59 80 3 23
Italy 245 308 22 40
Spain 440 285 135 2
Total $781 $725 $160 $78
With the exception of Greece, AbbVie historically has collected almost all of the outstanding
receivables in these countries. AbbVie continues to monitor the creditworthiness of customers located
in these and other geographic areas and establishes an allowance against an accounts receivable when it
is probable they will not be collected. In addition to closely monitoring economic conditions and
budgetary and other fiscal developments in these countries, AbbVie regularly communicates with its
customers regarding the status of receivable balances, including their payment plans and obtains
positive confirmation of the validity of the receivables. AbbVie also monitors the potential for and
periodically has utilized factoring arrangements to mitigate credit risk although the receivables included
in such arrangements have historically not been a material amount of total outstanding receivables. If
government funding were to become unavailable in these countries or if significant adverse changes in
their reimbursement practices were to occur, AbbVie may not be able to collect the entire balance.
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