Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

AbbVie Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Short-term borrowings	2,499)	—)	—)	1)	14)
Current portion of long-term debt and finance lease obligations	6,056)	6,804)	7,191)	4,135)	12,481)
Sales rebates	14,572)	14,304)	13,627)	10,717)	8,254)
Accounts payable	3,592)	2,945)	3,688)	2,934)	2,882)
Current portion of contingent consideration liabilities	3,455)	2,589)	1,952)	1,469)	1,249)
Dividends payable	3,099)	2,936)	2,783)	2,680)	2,543)
Salaries, wages and commissions	2,219)	1,986)	1,802)	1,371)	1,785)
Royalty and license arrangements	453)	527)	360)	412)	661)
Other	7,344)	6,658)	6,438)	5,819)	5,325)
Accounts payable and accrued liabilities	34,734)	31,945)	30,650)	25,402)	22,699)
Current liabilities	43,289)	38,749)	37,841)	29,538)	35,194)
Long-term debt and finance lease obligations, excluding current portion	58,941)	60,340)	52,194)	59,135)	64,189)
Deferred income taxes	2,389)	2,579)	1,952)	2,190)	3,009)
Contingent consideration liabilities	21,919)	19,077)	17,938)	14,915)	13,638)
Liabilities for unrecognized tax benefits	5,573)	5,049)	6,681)	6,502)	5,970)
Pension and other post-employment benefits	1,410)	1,234)	1,538)	1,638)	3,153)
Income taxes payable	364)	1,261)	2,182)	2,985)	3,442)
Other	3,303)	3,508)	3,988)	4,615)	2,498)
Other long-term liabilities	32,569)	30,129)	32,327)	30,655)	28,701)
Long-term liabilities	93,899)	93,048)	86,473)	91,980)	95,899)
Total liabilities	137,188)	131,797)	124,314)	121,518)	131,093)
Common stock, $0.01 par value	18)	18)	18)	18)	18)
Common stock held in treasury, at cost	(9,146)	(8,201)	(6,533)	(4,594)	(3,143)
Additional paid-in-capital	22,495)	21,333)	20,180)	19,245)	18,305)
Retained earnings (accumulated deficit)	(15,493)	(7,900)	(1,000)	4,784)	3,127)
Accumulated other comprehensive loss	(1,144)	(1,925)	(2,305)	(2,199)	(2,899)
Stockholders’ equity (deficit)	(3,270)	3,325)	10,360)	17,254)	15,408)
Noncontrolling interest	42)	39)	37)	33)	28)
Total equity (deficit)	(3,228)	3,364)	10,397)	17,287)	15,436)
Total liabilities and equity (deficit)	133,960)	135,161)	134,711)	138,805)	146,529)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The liabilities and stockholders’ equity of the company demonstrate notable shifts over the five-year period. Total liabilities generally increased, while stockholders’ equity experienced significant volatility, culminating in a deficit by the end of 2025. A detailed examination of specific liability and equity components reveals key trends.

Current Liabilities: Current liabilities decreased from 2021 to 2022, then increased steadily through 2025. This increase was primarily driven by growth in accounts payable and accrued liabilities, as well as contingent consideration liabilities. Sales rebates also contributed significantly to the overall current liability balance, exhibiting consistent growth throughout the period. Short-term borrowings were minimal until 2025, when they increased substantially.
Long-Term Liabilities: Long-term liabilities decreased from 2021 to 2023, then increased in 2024 before stabilizing in 2025. The largest component, long-term debt and finance lease obligations, followed a similar pattern. Contingent consideration liabilities also increased consistently, contributing to the overall trend. Deferred income taxes and liabilities for unrecognized tax benefits remained relatively stable, while pension and other post-employment benefits decreased significantly.
Total Liabilities: Total liabilities decreased in 2022, then increased through 2025, reaching $137.188 billion. This overall increase reflects the combined trends in both current and long-term liabilities. The increase in 2024 and 2025 was more pronounced, suggesting a greater reliance on debt financing or an increase in long-term obligations.
Stockholders’ Equity: Stockholders’ equity exhibited a marked decline over the period. While initially positive, retained earnings transitioned to a significant accumulated deficit by 2025. This decline was partially offset by increases in additional paid-in capital, but the negative impact of retained earnings outweighed these gains. Accumulated other comprehensive loss remained consistently negative, further contributing to the overall decrease in equity. Common stock held in treasury increased steadily, reducing the overall equity position. By 2025, the company reported a total stockholders’ equity deficit of $3.228 billion.
Total Liabilities and Equity: Total liabilities and equity decreased in 2022, then remained relatively stable through 2025, fluctuating around $134-137 billion. The decrease in equity was largely offset by the increase in liabilities, resulting in a relatively consistent total.

The company’s financial position shifted considerably during the observed period. While liabilities generally increased, the most significant change was the deterioration of stockholders’ equity, culminating in a deficit. This suggests a potential increase in financial risk and a reliance on external financing.

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AbbVie Inc. (NYSE:ABBV)

Balance Sheet: Liabilities and Stockholders’ Equity