AbbVie 2013 Annual Report Download - page 83

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Cumulative unrealized holding gains on available-for-sale equity securities totaled $2 million and
$1 million at December 31, 2013 and 2012, respectively.
There have been no transfers of assets or liabilities between the fair value measurement levels. The
following table is a reconciliation of the fair value measurements that use significant unobservable
inputs (Level 3), which consist of contingent payments related to acquisitions and investments.
(in millions)
Fair value as of December 31, 2011 349
Payments (134)
Other 7
Change in fair value recognized in earnings 29
Fair value as of December 31, 2012 251
Payments (131)
Additions 28
Change in fair value recognized in earnings 17
Fair value as of December 31, 2013 $165
In connection with an acquisition of a business in 2010, the achievement of a certain sales milestone
resulted in a payment of approximately $131 million in 2013 and $134 million in 2012 for which a
liability was previously established. Additions of $28 million related to the acquisition of product rights
during the second quarter of 2013. The change in fair value recognized in earnings for both years was
recognized in net foreign exchange loss (gain) and other (income) expense, net in the consolidated
statements of earnings.
In addition to the financial instruments that the company is required to recognize at fair value on the
consolidated balance sheets, the company has certain financial instruments that are recognized at
historical cost or some basis other than fair value. The carrying values and fair values of certain
financial instruments as of December 31 are shown in the table below.
Approximate
Book values fair values
(in millions) 2013 2012 2013 2012
Assets
Investments $ 108 $ 107 $ 129 $ 104
Liabilities
Short-term borrowings 413 1,020 413 1,020
Current portion of long-term debt and lease obligations 18 22 18 22
Long-term debt and lease obligations, excluding fair value
hedges 14,724 14,711 14,493 15,066
79