.Analysis of Inventory
Difficulty: Advanced
Inventory Accounting Policy
Inventories are valued at the lower of cost (first-in, first-out basis) or market.
Source: AbbVie Inc., Annual Report
Inventory Disclosure
AbbVie Inc., Statement of Financial Position, Inventory
USD $ in millions
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| | Finished goods | |||||
| | Work-in-process | |||||
| | Raw materials | |||||
| | Inventories |
Source: Based on data from AbbVie Inc. Annual Reports
| Item | Description | The company |
|---|---|---|
| Finished goods | Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. | AbbVie Inc.'s finished goods declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
| Work-in-process | Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. | AbbVie Inc.'s work-in-process declined from 2015 to 2016 and from 2016 to 2017. |
| Raw materials | Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. | AbbVie Inc.'s raw materials declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
| Inventories | Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). | AbbVie Inc.'s inventories declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level. |
