Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

AbbVie Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings	4,286)	4,873)	11,845)	11,549)	4,622)
Depreciation	764)	752)	778)	803)	666)
Amortization of intangible assets	7,622)	7,946)	7,689)	7,718)	5,805)
Deferred income taxes	(1,449)	(2,889)	(1,931)	(898)	(2,325)
Change in fair value of contingent consideration liabilities	3,771)	5,128)	2,761)	2,679)	5,753)
Payments of contingent consideration liabilities	(1,995)	(870)	(164)	(91)	—)
Stock-based compensation	911)	747)	671)	692)	753)
Acquired IPR&D and milestones	2,757)	778)	697)	1,124)	1,376)
Other charges related to collaborations	—)	—)	—)	500)	—)
Gain on divestitures	—)	—)	(172)	(68)	—)
Non-cash litigation reserve adjustments, net of cash payments	508)	(443)	2,243)	163)	(31)
Impairment of intangible assets	4,476)	4,229)	770)	50)	—)
Other, net	(63)	(225)	(150)	(213)	863)
Accounts receivable	207)	66)	(1,455)	(1,321)	(929)
Inventories	(319)	(417)	(686)	(142)	(40)
Prepaid expenses and other assets	361)	(188)	(264)	(197)	134)
Accounts payable and other liabilities	177)	3,840)	1,769)	1,719)	1,514)
Income tax assets and liabilities, net	(3,208)	(488)	542)	(1,290)	(573)
Changes in operating assets and liabilities, net of acquisitions	(2,782)	2,813)	(94)	(1,231)	106)
Adjustments to reconcile net earnings to net cash from operating activities	14,520)	17,966)	13,098)	11,228)	12,966)
Cash flows from operating activities	18,806)	22,839)	24,943)	22,777)	17,588)
Acquisition of businesses, net of cash acquired	(17,493)	—)	(255)	(525)	(38,260)
Other acquisitions and investments	(3,024)	(1,223)	(539)	(1,377)	(1,350)
Acquisitions of property and equipment	(974)	(777)	(695)	(787)	(798)
Purchases of investment securities	(73)	(77)	(1,438)	(119)	(61)
Sales and maturities of investment securities	555)	55)	1,530)	98)	1,525)
Other, net	189)	13)	774)	366)	1,387)
Cash flows from investing activities	(20,820)	(2,009)	(623)	(2,344)	(37,557)
Proceeds from issuance of other short-term borrowings	5,008)	—)	—)	—)	—)
Repayments of other short-term borrowings	(5,008)	—)	—)	—)	—)
Proceeds from issuance of long-term debt	16,963)	—)	2,000)	1,000)	3,000)
Repayments of long-term debt and finance lease obligations	(9,613)	(4,149)	(14,433)	(9,414)	(5,683)
Debt issuance costs	(99)	(38)	—)	—)	(20)
Dividends paid	(11,025)	(10,539)	(10,043)	(9,261)	(7,716)
Purchases of treasury stock	(1,708)	(1,972)	(1,487)	(934)	(978)
Proceeds from the exercise of stock options	214)	180)	262)	244)	209)
Payments of contingent consideration liabilities	—)	(752)	(1,132)	(698)	(321)
Other, net	57)	48)	30)	24)	8)
Cash flows from financing activities	(5,211)	(17,222)	(24,803)	(19,039)	(11,501)
Effect of exchange rate changes on cash and equivalents	(65)	5)	(62)	(97)	(5)
Net change in cash and equivalents	(7,290)	3,613)	(545)	1,297)	(31,475)
Cash and equivalents, beginning of year	12,814)	9,201)	9,746)	8,449)	39,924)
Cash and equivalents, end of year	5,524)	12,814)	9,201)	9,746)	8,449)

Based on: 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), 10-K (reporting date: 2020-12-31).

Net Earnings: Net earnings showed a significant increase from 2020 to 2022, more than doubling from 4622 million USD in 2020 to a peak of 11845 million USD in 2022. However, this was followed by a sharp decline in 2023 and 2024, falling to 4873 million USD and 4286 million USD respectively.
Depreciation and Amortization: Depreciation remained relatively stable over the years, fluctuating modestly between 666 million USD and 803 million USD. Amortization of intangible assets increased from 5805 million USD in 2020 to a peak of 7946 million USD in 2023, before slightly decreasing to 7622 million USD in 2024.
Deferred Income Taxes: Deferred income taxes exhibited volatile patterns with negative values throughout, indicating tax-related deferred liabilities. The range varied from -2325 million USD in 2020 to a less negative -898 million USD in 2021, and again more negative in subsequent years, with -2889 million USD in 2023 and -1449 million USD in 2024.
Contingent Consideration Liabilities: The fair value changes of contingent consideration liabilities fluctuated considerably, with a high of 5753 million USD in 2020 dipping to approximately 2679-2761 million USD in 2021 and 2022, then rising sharply again to 5128 million USD in 2023, before declining to 3771 million USD in 2024. Payments towards these liabilities increased notably from 2021 to 2024, reaching nearly -1995 million USD in 2024.
Stock-Based Compensation and Acquired IPR&D: Stock-based compensation showed moderate variation, generally trending upwards from 753 million USD in 2020 to 911 million USD in 2024. Acquired in-process research and development (IPR&D) and milestone payments exhibited irregular trends, declining from 1376 million USD in 2020 to 697 million USD in 2022, and then significantly increasing to 2757 million USD in 2024.
Non-Cash Litigation and Impairment Charges: Non-cash litigation reserve adjustments demonstrated considerable volatility, with a positive peak at 2243 million USD in 2022, but negative adjustments occurred in 2023 (-443 million USD), then rebounded somewhat in 2024 (508 million USD). Impairment of intangible assets increased drastically from no recorded value in 2020 to substantial impairments of 4229 million USD and 4476 million USD in 2023 and 2024 respectively.
Working Capital Changes: Accounts receivable showed negative changes initially but turned positive by 2023 and 2024, indicating improved collection or sales patterns. Inventories depicted increasing negative adjustments until 2022 and then moderated. Accounts payable and other liabilities experienced a sharp increase in 2023 (3840 million USD) but fell significantly in 2024 (177 million USD). Income tax assets and liabilities fluctuated substantially, with marked negative values in 2024 (-3208 million USD).
Operating Cash Flow: Cash flows from operating activities increased from 17588 million USD in 2020, peaking at 24943 million USD in 2022, before decreasing to 18806 million USD in 2024. Adjustments reconciling net earnings to net cash followed a similar trend, indicating strong operational cash generation despite fluctuating earnings.
Investing Activities: Cash used in investing activities was substantially higher in 2020 (-37557 million USD) compared to the following years. Acquisition of businesses showed a major expenditure in 2020 (-38260 million USD) but minimal or no activity in some subsequent years; however, a notable acquisition activity resumed in 2024 (-17493 million USD). Investments in property and equipment were relatively consistent, with a gradual increase in spending over time.
Financing Activities: Financing activities involved a significant outflow in 2020 (-11501 million USD), increasing to -24803 million USD in 2022, before substantially decreasing to -5211 million USD in 2024. Debt issuance and repayments fluctuated, with repayments of long-term debt consistently exceeding issuances until 2024 when debt issuance rose notably to 16963 million USD. Dividends paid showed steady growth, indicating consistent returns to shareholders.
Cash Position: The company's cash and equivalents decreased significantly from 39924 million USD at the beginning of 2020 to 8449 million USD at the end of that year, subsequently stabilizing between 9201 million USD and 12814 million USD until 2023. In 2024, cash and equivalents fell significantly to 5524 million USD, reflecting higher outflows or investments in that year.

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AbbVie Inc. (NYSE:ABBV)

Cash Flow Statement