(dollars in millions except per share data; shares in thousands)

Three Months Ended

March 31

2022

2021
Net sales

$
11,895

$
10,456

Cost of products sold, excluding amortization of intangible assets

4,987

4,401
Amortization of intangible assets

512

509
Research and development

697

654
Selling, general and administrative

2,787

2,783
Total operating cost and expenses

8,983

8,347

Operating earnings

2,912

2,109

Interest expense

131

135
Interest (income)

(14)

(11)
Net foreign exchange (gain) loss

(3)

3
Other (income) expense, net

(78)

(61)
Earnings before taxes

2,876

2,043
Taxes on earnings

429

250
Net Earnings

$
2,447

$
1,793

Basic Earnings Per Common Share

$
1.38

$
1.00

Diluted Earnings Per Common Share

$
1.37

$
1.00

Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share

1,761,911

1,776,842
Dilutive Common Stock Options

12,631

14,661
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options

1,774,542

1,791,503

Outstanding Common Stock Options Having No Dilutive Effect

2,655

2,694

(dollars in millions)

March 31,

December 31,

2022

2021
Assets

Current Assets:

Cash and cash equivalents

$
7,675

$
9,799
Short-term investments

483

450
Trade receivables, less allowances of $640 in 2022 and $519 in 2021

7,179

6,487
Inventories:

Finished products

3,470

3,081
Work in process

695

694
Materials

1,526

1,382
Total inventories

5,691

5,157
Prepaid expenses and other receivables

2,401

2,346
Total Current Assets

23,429

24,239
Investments

763

816
Property and equipment, at cost

19,521

19,364
Less: accumulated depreciation and amortization

10,613

10,405
Net property and equipment

8,908

8,959
Intangible assets, net of amortization

12,225

12,739
Goodwill

23,179

23,231
Deferred income taxes and other assets

5,503

5,212

$
74,007

$
75,196

Liabilities and Shareholders’ Investment

Current Liabilities:

Trade accounts payable

$
4,757

$
4,408
Salaries, wages and commissions

1,147

1,625
Other accrued liabilities

5,577

5,181
Dividends payable

824

831
Income taxes payable

338

306
Current portion of long-term debt

4

754
Total Current Liabilities

12,647

13,105
Long-term debt

17,086

17,296
Post-employment obligations, deferred income taxes and other long-term liabilities

8,645

8,771
Commitments and Contingencies

Shareholders’ Investment:

Preferred shares, 1 dollar par value Authorized — 1,000,000 shares, NaN issued

—

—
Common shares, without par value Authorized — 2,400,000,000 shares
Issued at stated capital amount — Shares: 2022: 1,985,525,053; 2021: 1,985,273,421

24,304

24,470
Common shares held in treasury, at cost — Shares: 2022: 234,582,764; 2021: 221,191,228

(13,726)

(11,822)
Earnings employed in the business

33,295

31,528
Accumulated other comprehensive income (loss)

(8,474)

(8,374)
Total Abbott Shareholders’ Investment

35,399

35,802
Noncontrolling Interests in Subsidiaries

230

222
Total Shareholders’ Investment

35,629

36,024

$
74,007

$
75,196

(in millions except shares and per share data)

Three Months Ended March 31


2022

2021
Common Shares:

Balance at January 1

Shares: 2022: 1,985,273,421; 2021: 1,981,156,896

$
24,470

$
24,145
Issued under incentive stock programs




Shares: 2022: 251,632; 2021: 1,048,595

14

47
Share-based compensation

324

304
Issuance of restricted stock awards

(504)

(473)
Balance at March 31




Shares: 2022: 1,985,525,053; 2021: 1,982,205,491

$
24,304

$
24,023

Common Shares Held in Treasury:

Balance at January 1

Shares: 2022: 221,191,228; 2021: 209,926,622

$
(11,822)

$
(10,042)
Issued under incentive stock programs




Shares: 2022: 4,144,476; 2021: 4,818,787

223

231
Purchased


Shares: 2022: 17,536,012; 2021: 277,508

(2,127)

(34)
Balance at March 31




Shares: 2022: 234,582,764; 2021: 205,385,343

$
(13,726)

$
(9,845)

Earnings Employed in the Business:

Balance at January 1

$
31,528

$
27,627
Net earnings

2,447

1,793
Cash dividends declared on common shares (per share — 2022: $0.47; 2021: $0.45)

(826)

(803)
Effect of common and treasury share transactions

146

52
Balance at March 31

$
33,295

$
28,669

Accumulated Other Comprehensive Income (Loss):

Balance at January 1

$
(8,374)

$
(8,946)
Other comprehensive income (loss)

(100)

(339)
Balance at March 31

$
(8,474)

$
(9,285)

Noncontrolling Interests in Subsidiaries:

Balance at January 1

$
222

$
219
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases

8

7
Balance at March 31

$
230

$
226

(dollars in millions)

Three Months Ended March 31

2022

2021
Cash Flow From (Used in) Operating Activities:

Net earnings

$
2,447

$
1,793
Adjustments to reconcile net earnings to net cash from operating activities —

Depreciation

311

425
Amortization of intangible assets

512

509
Share-based compensation

305

288
Trade receivables

(751)

165
Inventories

(554)

(537)
Other, net

(205)

(6)
Net Cash From Operating Activities

2,065

2,637

Cash Flow From (Used in) Investing Activities:

Acquisitions of property and equipment

(321)

(397)
Acquisitions of businesses and technologies, net of cash acquired

—

(15)
Sales (purchases) of other investment securities, net

(41)

(14)
Other

2

4
Net Cash (Used in) Investing Activities

(360)

(422)

Cash Flow From (Used in) Financing Activities:

Net borrowings (repayments) of short-term debt and other

8

24
Repayments of long-term debt

(751)

(2)
Purchases of common shares

(2,307)

(275)
Proceeds from stock options exercised

59

86
Dividends paid

(832)

(800)
Net Cash (Used in) Financing Activities

(3,823)

(967)

Effect of exchange rate changes on cash and cash equivalents

(6)

(32)

Net Increase (Decrease) in Cash and Cash Equivalents

(2,124)

1,216
Cash and Cash Equivalents, Beginning of Year

9,799

6,838
Cash and Cash Equivalents, End of Period

$
7,675

$
8,054

Note 1 — Basis of Presentation

The following ~~table provides~~tables provide detail by sales category:

Three Months Ended March 31, 2022

Three Months Ended March 31, 2021
(in millions)

U.S.

Int’l

Total

U.S.

Int’l

Total
Established Pharmaceutical Products —












Key Emerging Markets

$
—

$
902

$
902

$
—

$
821

$
821
Other

—

245

245

—

249

249
Total

—

1,147

1,147

—

1,070

1,070
Nutritionals —

Pediatric Nutritionals

338

509

847

508

558

1,066
Adult Nutritionals

339

708

1,047

328

642

970
Total

677

1,217

1,894

836

1,200

2,036
Diagnostics —

Core Laboratory

268

916

1,184

271

911

1,182
Molecular

172

248

420

175

272

447
Point of Care

91

37

128

92

37

129
Rapid Diagnostics

2,210

1,344

3,554

1,103

1,153

2,256
Total

2,741

2,545

5,286

1,641

2,373

4,014
Medical Devices —

Rhythm Management

248

276

524

241

278

519
Electrophysiology

216

269

485

179

252

431
Heart Failure

167

54

221

145

49

194
Vascular

209

410

619

219

416

635
Structural Heart

190

221

411

169

208

377
Neuromodulation

143

36

179

145

39

184
Diabetes Care

343

783

1,126

253

727

980
Total

1,516

2,049

3,565

1,351

1,969

3,320

Other

3

—

3

10

6

16

Total

$
4,937

$
6,958

$
11,895

$
3,838

$
6,618

$
10,456

Note 3 — Supplemental Financial Information

~~Table of Contents~~

~~Note 3 — Supplemental Financial Information (Continued)~~

The following summarizes the activity for the first ~~three~~six months of 2022 related to the allowance for doubtful accounts as of ~~March 31,~~June 30, 2022:

(in millions)

Allowance for Doubtful Accounts:

Balance at December 31, 2021

$
313
Provisions/charges to income

3
Amounts charged off and other deductions

(15)
Balance at March 31, 2022

$
301


(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2021	$	313
Provisions/charges to income	9
Amounts charged off and other deductions	(34)
Balance at June 30, 2022	$	288

The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 3 — Supplemental Financial Information (Continued)

The components of long-term investments as of ~~March 31,~~June 30, 2022 and December 31, 2021 are as follows:

March 31,

December 31,
(in millions)

2022

2021
Long-term Investments:

Equity securities

$
703

$
748
Other

60

68
Total

$
763

$
816


(in millions)	June 30, 2022		December 31, 2021
Long-term Investments:
Equity securities	$	620	$	748
Other	114		68
Total	$	734	$	816

The decrease in Abbott’s long-term investments as of ~~March 31,~~June 30, 2022 versus the balance as of December 31, 2021 primarily relates to a decrease in the value of investments held in a rabbi ~~trust.~~

trust and the impact of equity method investment losses partially offset by an investment in long-term time deposits.

Abbott’s equity securities as of ~~March 31,~~June 30, 2022, include ~~$357~~$303 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.

Abbott also holds certain investments as of ~~March 31,~~June 30, 2022 with a carrying value of ~~$244~~$227 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of ~~$92~~approximately $82 million that do not have a readily determinable fair value.

~~Table of Contents~~

Note 4 — Changes inIn Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows:

Three Months Ended March 31

Cumulative Gains (Losses)

Cumulative Foreign

Net Actuarial (Losses) and

on Derivative Instruments

Currency Translation

Prior Service (Costs) and

Designated as Cash Flow

Adjustments

Credits

Hedges
(in millions)

2022

2021

2022

2021

2022

2021
Balance at January 1

$
(5,839)

$
(4,859)

$
(2,670)

$
(3,871)

$
135

$
(216)
Other comprehensive income (loss) before reclassifications

(106)

(536)

17

22

(34)

96
Amounts reclassified from accumulated other comprehensive income

—

—

45

63

(22)

16
Net current period comprehensive income (loss)

(106)

(536)

62

85

(56)

112
Balance at March 31

$
(5,945)

$
(5,395)

$
(2,608)

$
(3,786)

$
79

$
(104)


	Three Months Ended June 30
	Cumulative Foreign Currency Translation (Loss) Adjustments				Net Actuarial (Losses) and Prior Service (Costs) and Credits				Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges and Other
(in millions)	2022		2021		2022		2021		2022		2021
Balance at March 31	$	(5,945)	$	(5,395)	$	(2,608)	$	(3,786)	$	79	$	(104)
Other comprehensive income (loss) before reclassifications	(315)		165		13		(12)		45		(28)
Amounts reclassified from accumulated other comprehensive income	—		—		41		60		(16)		34
Net current period comprehensive income (loss)	(315)		165		54		48		29		6
Balance at June 30	$	(6,260)	$	(5,230)	$	(2,554)	$	(3,738)	$	108	$	(98)

Table of Contents

~~(Income) loss~~

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 4 — Changes In Accumulated Other Comprehensive Income (Loss) (Continued)


	Six Months Ended June 30
	Cumulative Foreign Currency Translation (Loss) Adjustments				Net Actuarial (Losses) and Prior Service (Costs) and Credits				Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges and Other
(in millions)	2022		2021		2022		2021		2022		2021
Balance at January 1	$	(5,839)	$	(4,859)	$	(2,670)	$	(3,871)	$	135	$	(216)
Other comprehensive income (loss) before reclassifications	(421)		(371)		30		10		11		68
Amounts reclassified from accumulated other comprehensive income	—		—		86		123		(38)		50
Net current period comprehensive income (loss)	(421)		(371)		116		133		(27)		118
Balance at June 30	$	(6,260)	$	(5,230)	$	(2,554)	$	(3,738)	$	108	$	(98)

Reclassified amounts ~~reclassified from accumulated other comprehensive income related to~~for cash flow hedges are recorded as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit costs; see Note 11 for additional details.

Note 5 — Goodwill and Intangible Assets

The total amount of goodwill reported was $22.7 billion at June 30, 2022 and $23.2 billion at ~~March 31, 2022 and~~ December 31, 2021. Foreign currency translation adjustments decreased goodwill by approximately ~~$50~~$486 million in the first ~~three~~six months of 2022. The amount of goodwill related to reportable segments at ~~March 31,~~June 30, 2022 was ~~$2.8~~$2.7 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, ~~$3.7~~$3.6 billion for the Diagnostic Products segment, and ~~$16.4~~$16.1 billion for the Medical Devices segment. There was 0no reduction of goodwill relating to impairments in the first ~~three~~six months of 2022.

The gross amount of amortizable intangible assets, primarily product rights and technology, was $27.3 billion and $27.7 billion as of ~~March 31,~~June 30, 2022 and December 31, 2021, ~~and accumulated~~respectively. Accumulated amortization was ~~$16.4~~$16.6 billion ~~as of March 31, 2022~~ and $15.9 billion as of June 30, 2022 and December 31, ~~2021.~~2021, respectively. Foreign currency translation adjustments ~~increased~~decreased intangible assets by $3$122 million in the first ~~three~~six months of 2022. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.1 billion in 2022, $2.0 billion in 2023, $1.9 billion in 2024, $1.7 billion in 2025 and $1.6 billion in 2026.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $919 million as of ~~March 31,~~June 30, 2022 and December 31, 2021.

~~Table of Contents~~

Note 6 — Restructuring Plans

On May 27, 2021, Abbott management approved a restructuring plan related to its Diagnostic Products segment to align its manufacturing network for COVID-19 diagnostic tests with changes in the second quarter in projected testing demand driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, the accelerated rollout of COVID-19 vaccines globally and the U.S. health authority’s updated guidance on testing for fully vaccinated individuals. In the second quarter of 2021, Abbott recorded charges of $499 million under this plan in Cost of products sold. The charge recognized in the second quarter included fixed asset write-downs of $80 million, inventory-related charges of $248 million, and other exit costs, which included contract cancellations and employee-related costs of $171 million.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 6 — Restructuring Plans (Continued)

In the second half of 2021, as the Delta and Omicron variants of COVID-19 spread and the number of new COVID-19 cases increased significantly, particularly in the U.S., demand for rapid COVID-19 tests increased significantly. As a result, in thesecond half of 2021, Abbott sold approximately $181 million of inventory that was previously estimated to have no net realizable value under the second quarter of 2021 restructuring action. In addition, the estimate of other exit costs was reduced by a net $58 million as Abbott fulfilled its purchase obligations under certain contracts for which a liability was recorded in the second quarter of 2021 or Abbott settled with the counterparty in the second half of 2021.

The following summarizes the activity related to this restructuring action and the status of the related accruals as of ~~March 31,~~June 30, 2022:

Inventory-

Related

Fixed Asset

Other Exit

(in millions)

Charges

Write-Downs

Costs

Total
Restructuring charges recorded in 2021

$
248

$
80

$
113

$
441
Payments

—

—

(90)

(90)
Other non-cash

(248)

(80)

—

(328)
Accrued balance at December 31, 2021

—

—

23

23
Payments and other adjustments

—

—

(3)

(3)
Accrued balance at March 31, 2022

$
—

$
—

$
20

$
20


(in millions)	Inventory- Related Charges		Fixed Asset Write-Downs		Other Exit Costs		Total
Restructuring charges recorded in 2021	$	248	$	80	$	113	$	441
Payments	—		—		(90)		(90)
Other non-cash	(248)		(80)		—		(328)
Accrued balance at December 31, 2021	—		—		23		23
Payments and other adjustments	—		—		(10)		(10)
Accrued balance at June 30, 2022	$	—	$	—	$	13	$	13

In 2021, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies inAbbott’s ~~diagnostics,~~diagnostic, established ~~pharmaceuticals,~~pharmaceutical, nutritional, and medical ~~devices~~device businesses. Abbott recorded employee-related severance and other charges ofapproximately $68 million in 2021 of whichapproximately $16 million was recorded in Cost of products sold, approximately $4 million was recorded in Research and development, and approximately $48 million was recorded in Selling, general and administrative expense.

The following summarizes the activity for these restructurings:

(in millions)

Restructuring charges

$
68
Payments and other adjustments

(7)
Accrued balance at December 31, 2021

61
Payments and other adjustments

(16)
Accrued balance at March 31, 2022

$
45


(in millions)
Restructuring charges recorded in 2021	$	68
Payments and other adjustments	(7)
Accrued balance at December 31, 2021	61
Payments and other adjustments	(30)
Accrued balance at June 30, 2022	$	31

~~Table of Contents~~

Note 7 — Incentive Stock Programs

In the first ~~three~~six months of 2022, Abbott granted ~~2,594,059~~2,627,843 stock options, ~~514,148~~514,205 restricted stock awards and ~~5,303,072~~5,390,484 restricted stock units under its incentive stock program. At ~~March 31,~~June 30, 2022, approximately 8687 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at ~~March 31,~~June 30, 2022 is as follows:

Outstanding

Exercisable
Number of shares

29,479,237

23,547,781
Weighted average remaining life (years)

5.9

5.1
Weighted average exercise price

$
69.87

$
59.23
Aggregate intrinsic value (in millions)

$
1,445

$
1,397


	Outstanding		Exercisable
Number of shares	29,318,781		23,516,664
Weighted average remaining life (years)	5.6		4.8
Weighted average exercise price	$	69.99	$	59.40
Aggregate intrinsic value (in millions)	$	1,199	$	1,172

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 7 — Incentive Stock Programs (Continued)

The total unrecognized share-based compensation cost at ~~March 31,~~June 30, 2022 amounted to approximately ~~$825~~$713 million which is expected to be recognized over the next three years.

Note 8 — Debt and Lines of Credit

On March 15, 2022, Abbott repaid the $750 million outstanding principal amount of its 2.55% Notes ~~due 2022~~ upon maturity.

Note 9 — Financial Instruments, Derivatives and Fair Value Measures

Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates primarily for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with gross notional amounts totaling ~~$8.5~~$8.4 billion at ~~March 31,~~June 30, 2022 and $8.6 billion at December 31, 2021, are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value. Accumulated gains and losses as of ~~March 31,~~June 30, 2022 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.

Abbott enters into foreign currency forward exchange contracts to manage currency exposures for foreign currency denominated third-party trade payables and receivables, and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency of the entity. For intercompany loans, the contracts require Abbott to sell or buy foreign currencies, primarily European currencies, in exchange for primarily U.S. dollars and other European currencies. For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar and European currencies. At ~~March 31,~~June 30, 2022 and December 31, 2021, Abbott held the gross notional ~~amount~~amounts of $11.3 billion and $12.2 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated a yen-denominated, 5-year term loan of approximately ~~$491~~$437 million and $521 million as of ~~March 31,~~June 30, 2022 and December 31, 2021, respectively, as a hedge of the net investment in certain foreign subsidiaries. The change in the value of the debt, which is due to changes in foreign exchange rates, is recorded in Accumulated other comprehensive income (loss), net of tax.

Abbott is a party to interest rate hedge contracts totaling approximately $2.9 billion at ~~March 31,~~June 30, 2022 and December 31, 2021 to manage its exposure to changes in the fair value of fixed-rate debt. These contracts are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates. The effect of the hedge is to change a fixed-rate interest obligation to a variable rate for that portion of the debt. Abbott records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 9 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the amounts and location of certain derivative financial instruments as of ~~March 31,~~June 30, 2022 and December 31, 2021:

Fair Value - Assets

Fair��Value - Liabilities

March 31,

Dec. 31,

March 31,

Dec. 31,


(in millions)

2022

2021

Balance Sheet Caption

2022

2021

Balance Sheet Caption
Interest rate swaps designated as fair value hedges

$
—

$
87

Deferred income taxes and other assets

$
34

$
—

Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:

Hedging instruments

204

222

Prepaid expenses and other receivables

183

65

Other accrued liabilities
Others not designated as hedges

149

70

Prepaid expenses and other receivables

93

32

Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary

—

—

n/a

491

521

Long-term debt

$
353

$
379

$
801

$
618


	Fair Value - Assets					Fair Value - Liabilities
(in millions)	June 30, 2022		Dec. 31, 2021		Balance Sheet Caption	June 30, 2022		Dec. 31, 2021		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	—	$	87	Deferred income taxes and other assets	$	81	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments	462		222		Prepaid expenses and other receivables	83		65		Other accrued liabilities
Others not designated as hedges	101		70		Prepaid expenses and other receivables	89		32		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	437		521		Long-term debt
	$	563	$	379		$	690	$	618

The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges and certain other derivative financial instruments, as well as the amounts and location of income (expense) and gain (loss) reclassified into income for the three and six months ended ~~March 31,~~June 30, 2022 and 2021.

Gain (loss) Recognized in

Income (expense) and

Other Comprehensive

Gain (loss) Reclassified

Income (loss)

into Income

(in millions)

2022

2021

2022

2021

Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges

$
(49)

$
134

$
27

$
(23)

Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary

30

35

—

—

n/a
Interest rate swaps designated as fair value hedges

n/a

n/a

(121)

(69)

Interest expense


	Gain (loss) Recognized in Other Comprehensive Income (loss)								Income (expense) and Gain (loss) Reclassified into Income
	Three Months Ended June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30
(in millions)	2022		2021		2022		2021		2022		2021		2022		2021		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	141	$	(88)	$	92	$	46	$	43	$	(92)	$	70	$	(115)	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	54		2		84		37		—		—		—		—		n/a
Interest rate swaps designated as fair value hedges	n/a		n/a		n/a		n/a		(47)		2		(168)		(67)		Interest expense

~~Losses~~

Table of ~~$51~~Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 9 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

Gains of $303 million and ~~gains~~losses of ~~$49~~$16 million were recognized in the three months ended ~~March 31,~~June 30, 2022 and 2021, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $252 million and $33 million were recognized in the six months ended June 30, 2022 and 2021, respectively, related to foreign currency forward exchange contracts not designated as a hedge. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line.

~~Table of Contents~~

~~Note 9 — Financial Instruments, Derivatives and Fair Value Measures (Continued)~~

The carrying values and fair values of certain financial instruments as of ~~March 31,~~June 30, 2022 and December 31, 2021 are shown in the following table. The carrying values of all other financial instruments approximate their estimated fair values. The counterparties to financial instruments consist of select major international financial institutions. Abbott does not expect any losses from non-performance by these counterparties.

March 31, 2022

December 31, 2021


Carrying

Fair

Carrying

Fair
(in millions)

Value

Value

Value

Value
Long-term Investment Securities:

Equity securities

$
703

$
703

$
748

$
748
Other

60

60

68

68
Total long-term debt

(17,090)

(18,704)

(18,050)

(21,152)
Foreign Currency Forward Exchange Contracts:

Receivable position

353

353

292

292
(Payable) position

(276)

(276)

(97)

(97)
Interest Rate Hedge Contracts:

Receivable position

—

—

87

87
(Payable) position

(34)

(34)

—

—


	June 30, 2022				December 31, 2021
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Investment Securities:
Equity securities	$	620	$	620	$	748	$	748
Other	114		114		68		68
Total Long-term Debt	(16,760)		(17,033)		(18,050)		(21,152)
Foreign Currency Forward Exchange Contracts:
Receivable position	563		563		292		292
(Payable) position	(172)		(172)		(97)		(97)
Interest Rate Hedge Contracts:
Receivable position	—		—		87		87
(Payable) position	(81)		(81)		—		—

The fair value of the debt was determined based on significant other observable inputs, including current interest rates.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 9 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet:

Basis of Fair Value Measurement

Quoted

Significant

Prices in

Other

Significant

Outstanding

Active

Observable

Unobservable
(in millions)

Balances

Markets

Inputs

Inputs
March 31, 2022:

Equity securities

$
367

$
367

$
—

$
—
Foreign currency forward exchange contracts

353

—

353

—
Total Assets

$
720

$
367

$
353

$
—

Fair value of hedged long-term debt

$
2,805

$
—

$
2,805

$
—
Interest rate swap derivative financial instruments

34

—

34

—
Foreign currency forward exchange contracts

276

—

276

—
Contingent consideration related to business combinations

134

—

—

134
Total Liabilities

$
3,249

$
—

$
3,115

$
134

December 31, 2021:

Equity securities

$
402

$
402

$
—

$
—
Interest rate swap derivative financial instruments

87

—

87

—
Foreign currency forward exchange contracts

292

—

292

—
Total Assets

$
781

$
402

$
379

$
—

Fair value of hedged long-term debt

$
2,926

$
—

$
2,926

$
—
Foreign currency forward exchange contracts

97

—

97

—
Contingent consideration related to business combinations

130

—

—

130
Total Liabilities

$
3,153

$
—

$
3,023

$
130

~~Table of Contents~~

~~Note 9 — Financial Instruments, Derivatives and Fair Value Measures (Continued)~~

The fair value of foreign currency forward exchange contracts is determined using a market approach, which utilizes values for comparable derivative instruments. The fair value of debt was determined based on the face value of the debt adjusted for the fair value of the interest rate swaps, which is based on a discounted cash flow analysis using significant other observable inputs. The fair value of the contingent consideration was determined based on independent appraisals at the time of acquisition, adjusted for the time value of money and other changes in fair value.

Note 10 — Litigation and Environmental Matters

Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $10 million.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 10 — Litigation and Environmental Matters (Continued)

Abbott is involved in various claims and legal proceedings, and Abbott estimates the range of possible loss for its legal proceedings and environmental exposures to be from approximately $30 million to $45 million. The recorded accrual balance at ~~March 31,~~June 30, 2022 for these proceedings and exposures was approximately $40 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations.

Note 11 — Post-Employment Benefits

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. Net cost recognized for the three and six months ended ~~March 31~~June 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:

Defined Benefit Plans

Medical and Dental Plans

March 31,

March 31,

March 31,

March 31,
(in millions)

2022

2021

2022

2021

Service cost — benefits earned during the period

$
96

$
100

$
13

$
14
Interest cost on projected benefit obligations

76

62

10

8
Expected return on plan assets

(236)

(211)

(7)

(7)
Net amortization of:

Actuarial loss, net

59

81

5

7
Prior service cost (credit)

—

—

(6)

(7)
Net cost (credit)

$
(5)

$
32

$
15

$
15


	Defined Benefit Plans								Medical and Dental Plans
	Three Months Ended June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30
(in millions)	2022		2021		2022		2021		2022		2021		2022		2021
Service cost - benefits earned during the period	$	94	$	96	$	190	$	196	$	12	$	14	$	25	$	28
Interest cost on projected benefit obligations	75		62		151		124		8		9		18		17
Expected return on plan assets	(234)		(211)		(470)		(422)		(8)		(7)		(15)		(14)
Net amortization of:
Actuarial loss, net	57		78		116		159		1		7		6		14
Prior service cost (credit)	1		1		1		1		(6)		(7)		(12)		(14)
Net cost (credit)	$	(7)	$	26	$	(12)	$	58	$	7	$	16	$	22	$	31

Abbott funds its domestic defined benefit plans according to Internal Revenue Service funding limitations. International pension plans are funded according to similar regulations. In the first ~~three~~six months of 2022 and 2021, ~~$334~~$348 million and ~~$16~~$80 million, respectively, were contributed to defined benefit plans. ~~Contributions made~~In the first six months of 2022, $28 million was contributed to the post-employment medical and dental ~~plans in the first three months of 2022 were $28 million. NaN~~plans. No contributions were made to the post-employment medical and dental plans in the first ~~three~~six months of 2021.

~~Table of Contents~~

Note 12 — Taxes on Earnings

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first ~~three~~six months of 2022 and 2021, taxes on earnings include approximately ~~$30~~$32 million and ~~$80~~$90 million, respectively, in excess tax benefits associated with share-based compensation. In the first ~~three~~six months of 2022, taxes on earnings also include approximately ~~$30~~$27 million of tax expense as the result of the resolution of various tax positions related to prior years.

Tax authorities in various jurisdictions regularly review Abbott’s income tax filings. Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease approximately ~~$70~~$90 million to ~~$80~~$115 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 13 — Segment Information

Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world.

Abbott’s reportable segments are as follows:

Established Pharmaceutical Products — International sales of a broad line of branded generic pharmaceutical products.

Nutritional Products — Worldwide sales of a broad line of adult and pediatric nutritional products.

Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories, ~~physicians’~~physician offices and alternate-care testing sites. For segment reporting purposes, the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular Diagnostics and Point of Care Diagnostics divisions are aggregated and reported as the Diagnostic Products segment.

Medical Devices — Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. For segment reporting purposes, the Cardiac Rhythm Management, Electrophysiology, Heart Failure, Vascular, Structural Heart, Neuromodulation and Diabetes Care divisions are aggregated and reported as the Medical Devices segment.

Abbott’s underlying accounting records are maintained on a legal entity basis for government and public reporting requirements. Segment disclosures are on a performance basis consistent with internal management reporting. Intersegment transfers of inventory are recorded at standard cost and are not a measure of segment operating earnings. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment’s assets.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

June 30, 2022

(Unaudited)

Note 13 — Segment Information (Continued)

The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and is not presented in accordance with generally accepted accounting principles applied to the ~~condensed~~ consolidated financial statements.


	Net Sales to External Customers								Operating Earnings
	Three Months Ended June 30				Six Months Ended June 30				Three Months Ended June 30				Six Months Ended June 30
(in millions)	2022		2021		2022		2021		2022		2021		2022		2021
Established Pharmaceutical Products	$	1,223	$	1,180	$	2,370	$	2,250	$	258	$	220	$	500	$	389
Nutritional Products	1,953		2,108		3,847		4,144		230		490		481		957
Diagnostic Products	4,322		3,247		9,608		7,261		1,710		1,076		4,279		2,777
Medical Devices	3,757		3,666		7,322		6,986		1,155		1,208		2,233		2,215
Total Reportable Segments	11,255		10,201		23,147		20,641		3,353		2,994		7,493		6,338
Other	2		22		5		38
Net sales	$	11,257	$	10,223	$	23,152	$	20,679
Corporate functions and benefit plan costs									(123)		(132)		(237)		(246)
Net interest expense									(106)		(123)		(223)		(247)
Share-based compensation (a)									(142)		(132)		(447)		(420)
Amortization of intangible assets									(507)		(504)		(1,019)		(1,013)
Other, net (b)									(123)		(755)		(339)		(1,021)
Earnings before taxes									$	2,352	$	1,348	$	5,228	$	3,391

Three Months Ended March 31

Net Sales to

Operating

External Customers

Earnings
(in millions)

2022

2021

2022

2021
Established Pharmaceutical Products

$
1,147

$
1,070

$
242

$
169
Nutritional Products

1,894

2,036

251

467
Diagnostic Products

5,286

4,014

2,569

1,701
Medical Devices

3,565

3,320

1,078

1,007
Total Reportable Segments

11,892

10,440

4,140

3,344
Other

3

16

Net sales

$
11,895

$
10,456

Corporate functions and benefit plans costs

(114)

(114)
Net interest expense

(117)

(124)
Share-based compensation (a)

(305)

(288)
Amortization of intangible assets

(512)

(509)
Other, net (b)

(216)

(266)
Earnings before taxes

$
2,876

$
2,043

~~(a)~~
(a)			Approximately 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards.

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Review -— Results of Operations

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Patent protection and licenses, technological and performance features, and inclusion of Abbott’s products under a contract most impact which products are sold; price controls, competition and rebates most impact the net selling prices of products; and foreign currency translation impacts the measurement of net sales and costs. Abbott’s primary products are medical devices, diagnostic testing products, nutritional products and branded generic pharmaceuticals.

The following ~~table details~~tables detail sales by reportable segment for the three and six months ended ~~March 31.~~June 30. Percent changes are versus the prior year and are based on unrounded numbers.

Net Sales to External Customers


Three Months

Three Months






Ended

Ended

Impact of

Total Change

March 31,

March 31,

Total

Foreign

Excl. Foreign

(in millions)

2022

2021

Change

Exchange

Exchange

Established Pharmaceutical Products

$
1,147

$
1,070

7.1
%
(6.3)
%
13.4
%
Nutritional Products

1,894

2,036

(7.0)

(2.6)

(4.4)

Diagnostic Products

5,286

4,014

31.7

(3.4)

35.1

Medical Devices

3,565

3,320

7.4

(4.1)

11.5

Total Reportable Segments

11,892

10,440

13.9

(3.8)

17.7

Other

3

16

(85.8)

—

(85.8)

Net Sales

$
11,895

$
10,456

13.8

(3.7)

17.5

Total U.S.

$
4,937

$
3,838

28.6

—

28.6

Total International

$
6,958

$
6,618

5.1

(6.0)

11.1


	Net Sales to External Customers
(in millions)	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange

Established Pharmaceutical Products	$	1,223	$	1,180	3.7	%	(5.5)	%	9.2	%
Nutritional Products	1,953		2,108		(7.4)		(2.9)		(4.5)
Diagnostic Products	4,322		3,247		33.1		(3.8)		36.9
Medical Devices	3,757		3,666		2.5		(5.0)		7.5
Total Reportable Segments	11,255		10,201		10.3		(4.3)		14.6
Other	2		22		n/m		n/m		n/m
Net Sales	$	11,257	$	10,223	10.1		(4.2)		14.3

Total U.S.	$	4,892	$	3,581	36.6		—		36.6

Total International	$	6,365	$	6,642	(4.2)		(6.5)		2.3

~~Note:~~


	Net Sales to External Customers
(in millions)	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange

Established Pharmaceutical Products	$	2,370	$	2,250	5.3	%	(5.9)	%	11.2	%
Nutritional Products	3,847		4,144		(7.2)		(2.8)		(4.4)
Diagnostic Products	9,608		7,261		32.3		(3.6)		35.9
Medical Devices	7,322		6,986		4.8		(4.6)		9.4
Total Reportable Segments	23,147		20,641		12.1		(4.0)		16.1
Other	5		38		n/m		n/m		n/m
Net Sales	$	23,152	$	20,679	12.0		(3.9)		15.9

Total U.S.	$	9,829	$	7,419	32.5		—		32.5

Total International	$	13,323	$	13,260	0.5		(6.2)		6.7

Notes:

In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

n/m = Percent change is not meaningful

Table of Contents

The ~~17.5~~14.3 percent increase in total net sales during the ~~first three months~~second quarter of 2022, excluding the impact of foreign exchange, reflected demand for Abbott’s rapid ~~diagnostics~~diagnostic tests to detect COVID-19 as well as growth in ~~Abbott’s~~the Medical Devices and Established Pharmaceutical Products segments partially offset by lower Nutritional Products sales. ~~During the first quarter of 2022,~~ Abbott’s COVID-19 testing-related sales totaled approximately ~~$3.3~~$2.3 billion ~~led by combined sales of approximately $3.0 billion related to Abbott’s BinaxNOW~~^®~~, Panbio~~^®~~, and ID NOW~~^® ~~rapid testing platforms. During~~during the ~~first~~second quarter of ~~2021, Abbott’s COVID-19 testing-related sales totaled~~2022 and approximately ~~$2.2~~$1.3 billion ~~led by combined sales~~during the second quarter of ~~approximately $1.8 billion related to Abbott’s BinaxNOW, Panbio, and ID NOW rapid testing platforms.~~2021. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales ~~increased 3.9~~decreased 0.3 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased ~~7.7~~4.1 percent. Abbott’s net sales were unfavorably impacted by changes in foreign exchange rates in the second quarter as the relatively stronger U.S. dollar decreased total international sales by 6.5 percent and total sales by 4.2 percent.

The 15.9 percent increase in total net sales during the first six months of 2022, excluding the impact of foreign exchange, reflected demand for Abbott’s rapid diagnostic tests to detect COVID-19 as well as growth in the Medical Devices and Established Pharmaceutical Products segments partially offset by lower Nutritional Products sales. Abbott’s COVID-19 testing-related sales totaled approximately $5.6 billion during the first six months of 2022 and approximately $3.5 billion during the first six months of 2021. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 1.7 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 5.9 percent. Abbott’s net sales were unfavorably impacted by changes in foreign exchange rates in the first ~~quarter~~six months as the relatively stronger U.S. dollar decreased total international sales by ~~6.0~~6.2 percent and total sales by ~~3.7~~3.9 percent.

Due to the unpredictability of the duration and impact of the current COVID-19 pandemic, the future extent to which the COVID-19 pandemic will have a material effect on Abbott’s business, financial condition or results of operations is uncertain.

~~Table of Contents~~

The table below provides detail by sales category for the ~~three~~six months ended ~~March 31.~~June 30. Percent changes are versus the prior year and are based on unrounded numbers.

Impact of

Total Change

March 31,

March 31,

Total

Foreign

Excl. Foreign

(in millions)

2022

2021

Change

Exchange

Exchange

Established Pharmaceutical Products —











Key Emerging Markets

$
902

$
821

9.8
%
(7.3)
%
17.1
%
Other Emerging Markets

245

249

(1.7)

(2.9)

1.2

Nutritionals —

International Pediatric Nutritionals

509

558

(8.8)

(3.4)

(5.4)

U.S. Pediatric Nutritionals

338

508

(33.6)

—

(33.6)

International Adult Nutritionals

708

642

10.3

(5.3)

15.6

U.S. Adult Nutritionals

339

328

3.7

—

3.7

Diagnostics —

Core Laboratory

1,184

1,182

0.1

(4.1)

4.2

Molecular

420

447

(5.9)

(2.9)

(3.0)

Point of Care

128

129

(0.6)

(1.0)

0.4

Rapid Diagnostics

3,554

2,256

57.5

(3.3)

60.8

Medical Devices —

Rhythm Management

524

519

1.0

(3.2)

4.2

Electrophysiology

485

431

12.6

(4.2)

16.8

Heart Failure

221

194

14.2

(2.0)

16.2

Vascular

619

635

(2.6)

(3.6)

1.0

Structural Heart

411

377

9.1

(4.7)

13.8

Neuromodulation

179

184

(3.1)

(1.6)

(1.5)

Diabetes Care

1,126

980

14.9

(5.5)

20.4


(in millions)	June 30, 2022		June 30, 2021		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange
Established Pharmaceutical Products —
Key Emerging Markets	$	1,833	$	1,736	5.6	%	(6.2)	%	11.8	%
Other Emerging Markets	537		514		4.5		(4.7)		9.2

Nutritionals —
International Pediatric Nutritionals	1,021		1,123		(9.1)		(3.5)		(5.6)
U.S. Pediatric Nutritionals	751		1,036		(27.5)		—		(27.5)
International Adult Nutritionals	1,388		1,312		5.8		(5.7)		11.5
U.S. Adult Nutritionals	687		673		2.1		—		2.1

Diagnostics —
Core Laboratory	2,405		2,488		(3.4)		(4.7)		1.3
Molecular	632		737		(14.2)		(2.9)		(11.3)
Point of Care	267		266		0.4		(1.0)		1.4
Rapid Diagnostics	6,304		3,770		67.2		(3.2)		70.4

Medical Devices —
Rhythm Management	1,072		1,086		(1.3)		(3.8)		2.5
Electrophysiology	971		918		5.8		(4.7)		10.5
Heart Failure	462		421		9.7		(2.2)		11.9
Vascular	1,272		1,332		(4.5)		(4.1)		(0.4)
Structural Heart	851		799		6.5		(5.2)		11.7
Neuromodulation	376		394		(4.6)		(1.7)		(2.9)
Diabetes Care	2,318		2,036		13.8		(6.0)		19.8

Table of Contents

Excluding the unfavorable effect of foreign exchange, sales in the Key Emerging Markets for Established Pharmaceutical Products increased ~~17.1~~11.8 percent in the first six months of 2022, led by double-digit growth in several countries and therapeutic areas, including gastroenterology, central nervous system/pain management, and respiratory products. Other Emerging Markets, excluding the effect of foreign exchange, increased by ~~1.2 percent.~~

9.2 percent in the first six months of 2022.

International Pediatric Nutritional sales, excluding the effect of foreign exchange, decreased ~~5.4 percent. The~~5.6 percent in the first six months of 2022 versus the comparable 2021 period and the decrease reflects lower sales due to challenging market dynamics in the infant category in Greater China partially offset by higher volumes sold in various countries in Southeast Asia, Latin America and the Middle East. International Adult Nutritional sales, excluding the effect of foreign exchange, increased ~~15.6~~11.5 percent, reflecting double digit growth of the Ensure®and Glucerna® brands in several countries in Southeast Asia and China. In the first six months of 2022, U.S. Adult Nutritional sales increased ~~3.7 percent, reflecting continued growth of the Ensure~~^® ~~and Glucerna~~^® ~~brands in several countries including the U.S.~~

2.1 percent.

In U.S. Pediatric Nutritionals, Abbott initiated a voluntary recall in February 2022 of certain infant powder formula products manufactured at ~~one of~~ its ~~U.S. facilities~~facility in Sturgis, Michigan and stopped production at the facility. The ~~33.6~~27.5 percent decrease in U.S. Pediatric Nutritional sales in the first six months of 2022 reflects the impact of the recall and production stoppage partially offset by increased demand for Abbott’s Pedialyte® ~~and PediaSure~~^® products. U.S. sales of certain infant powder formulas associated with the recall were ~~$59~~$175 million in the first ~~quarter~~six months of 2022 and ~~$288~~$568 million in the first ~~quarter~~six months of 2021.

On May 16, 2022, Abbott ~~is working~~entered into a consent decree with the U.S. Food and Drug Administration (FDA) on ~~corrective actions~~the steps necessary to resume production and ~~enhancements so that operations~~maintain the Sturgis facility and operations. On July 1, Abbott restarted partial production at the facility ~~can be restarted.~~starting with its specialty formula EleCare® and metabolic formulas. Subsequently, Abbott ~~cannot predict when manufacturing at~~restarted Similac® production. The consent decree does not affect any other Abbott plant or operation.

Abbott has taken various actions to mitigate the ~~facility will restart. Abbott is also working to bring~~impact of the recall on the supply of formula in the U.S. These actions have included the shipment of infant formula powder ~~formula to~~into the U.S. from ~~its FDA-regulated~~Abbott's FDA-registered facility in ~~Europe and to increase~~Ireland, prioritization of infant formula production at its Columbus, Ohio facility, conversion of other ~~U.S.~~liquid manufacturing ~~plants.~~

lines into manufacturing Similac liquid ready-to-feed product, and increased production of powder infant formula at its Casa Grande, Arizona manufacturing site.

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The ~~35.1~~35.9 percent increase in Diagnostic Products sales in the first six months of 2022, excluding the impact of foreign exchange, was driven by demand for Abbott’s portfolio of COVID-19 tests in Rapid Diagnostics and growth in routine diagnostic testing in ~~Core Laboratory Diagnostics and~~ Molecular Diagnostics. In Core Laboratory Diagnostics, sales increased ~~4.2~~1.3 percent in the first six months of 2022, excluding the effect of foreign exchange, due to the higher volume of routine diagnostic testing from the continued roll-out of the Alinity^® platform and an expanded menu of ~~tests~~tests. These increases were partially offset by lower sales of Abbott’s laboratory-based tests for the detection of COVID-19 IgG and IgM antibodies, which determine if someone was previously infected with the COVID-19 ~~virus.~~virus, as well as market disruptions in China due to COVID-19 quarantine restrictions in various cities during the second quarter of 2022. In the first ~~three~~six months of 2022 and 2021, Core Laboratory Diagnostics ~~COVID-19~~ IgG and IgM antibody testing-related sales on Abbott’s ARCHITECT^® and Alinity i platforms were ~~$28~~$40 million and ~~$54~~$112 million, respectively. In the first ~~three~~six months of 2022, Core Laboratory Diagnostics sales ~~increased 2.4~~decreased 0.5 percent, excluding COVID-19 testing-related sales, and increased ~~6.6~~4.3 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

The ~~3.0~~11.3 percent decrease in Molecular Diagnostics sales in the first six months of 2022, excluding the effect of foreign exchange, was driven by lower demand for Abbott’s laboratory-based molecular tests for COVID-19 ~~on its m2000~~^® ~~platform~~ partially offset by growth in the base business from increased routine molecular testing and an expanded menu of ~~tests.~~tests. In the first ~~three~~six months of 2022 and 2021, Molecular Diagnostics COVID-19 testing-related sales were ~~$246~~$321 million and ~~$307~~$480 million, respectively. In the first ~~three~~six months of 2022, Molecular Diagnostics sales increased ~~24.8~~21.7 percent, excluding COVID-19 testing-related sales, and increased ~~29.0~~26.0 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

In Rapid Diagnostics, sales increased ~~60.8~~70.4 percent in the first six months of 2022, excluding the effect of foreign exchange, due to the demand for Abbott’s COVID-19 tests on its rapid testing platforms, including the Panbio® system, the ID NOW® platform, and the BinaxNOW® COVID-19 Ag Card test. In the first ~~three~~six months of 2022 and 2021, Rapid Diagnostics COVID-19 testing-related sales were ~~approximately $3.0~~$5.3 billion and ~~$1.8~~$2.8 billion, respectively. In the first ~~three~~six months of 2022, Rapid Diagnostics sales increased ~~21.6~~14.0 percent, excluding COVID-19 testing-related sales, and increased ~~23.5~~16.1 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.These increases reflect higher sales of ID NOW tests for flu, strep, and respiratory syncytial virus (RSV) as well as growth in various other Rapid Diagnostics products.

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Excluding the effect of foreign exchange, total Medical Devices sales grew ~~11.5~~9.4 percent in the first six months of 2022, driven by double-digit growth in Diabetes Care, Electrophysiology, Structural Heart and Heart Failure. Growth in Diabetes Care sales was driven by continued growth of FreeStyle Libre®, Abbott’s continuous glucose monitoring system, ~~internationally and~~ in the U.S. and internationally. FreeStyle Libre sales totaled ~~$995 million~~$2.1 billion in the first ~~three~~six months of 2022, which reflected a ~~26.2~~25.9 percent increase, excluding the effect of foreign exchange, over the first ~~three~~six months of 2021 when FreeStyle Libre sales totaled ~~$827 million.~~

$1.7 billion. In May 2022, Abbott announced FDA clearance of its Freestyle Libre 3 system, which automatically delivers up-to-the-minute glucose readings and 14-day accuracy in the world's smallest and thinnest wearable sensor.

~~While~~

During the first six months of 2022, procedure volumes across Abbott’s cardiovascular and neuromodulation businesses were negatively impacted by elevated COVID-19 case rates early in 2022 as well as new surges of COVID-19 in several geographies, healthcare staffing challenges, and quarantine restrictions in China during the second quarter. Despite such challenges, overall volume trends improved ~~as case rates declined~~ in ~~the second half of~~several businesses versus the first ~~quarter.~~six months of 2021. In Electrophysiology, the 10.5 percent growth, excluding the effect of foreign exchange, reflects the increase in procedure volumes ~~also reflects~~and the U.S. ~~roll-out~~roll‑out of Abbott’s EnSite™ X EP System with Ensite Omnipolar Technology (OT), a new cardiac mapping platform available in the U.S., Japan and across Europe. In January 2022, Abbott announced FDA clearance for the EnSite X EP System with EnSite OT. The system leverages the Advisor™ HD Grid Catheter to provide a ~~360-degree~~360‑degree view of the heart without regard to the orientation of the catheter in the heart.

Growth in Structural Heart during the first six months of 2022, excluding the effect of foreign exchange, was ~~broad-based~~11.7 percent, driven by growth across several areas of the business, including Amplatzer® Amulet® Left Atrial Appendage Occluder, which offers immediate closure of the left atrial appendage, an area in the heart where blood clots can form and MitraClip®, ~~Abbott’s~~Abbott's market-leading device for the minimally invasive treatment of mitral regurgitation, a leaky heart valve. In Vascular, the ~~1.0~~0.4 percent ~~growth~~decrease in sales, excluding the impact of foreign exchange, during the first six months of 2022 reflects ~~higher endovascular sales partially offset by~~ the negative effect of lower average pricing for drug-eluting stents (DES) in the U.S. and a lag in the recovery of percutaneous coronary intervention case rates compared to many other cardiovascular ~~procedures.~~

procedures partially offset by higher endovascular sales.

In the first six months of 2022, Medical Devices received various other product approvals. In February 2022, Abbott received FDA approval for an expanded indication for its CardioMEMS™ HF system, a small implantable sensor and remote monitoring system that can detect early warning signs of worsening heart failure. In April 2022, Abbott announced FDA approval for its Aveir™ single-chamber leadless pacemaker for the treatment of patients in the U.S. with slow heart rhythms.

The gross profit margin percentage was ~~53.8~~51.7 percent for the ~~first~~second quarter of 2022 compared to ~~53.0~~46.7 percent for the second quarter of 2021 and 52.8 percent for the first ~~quarter~~six months of 2022 compared to 49.9 percent for the first six months of 2021. The ~~increase~~increases in the quarter ~~reflects~~and the ~~effect~~first six months of 2022 reflect the nonrecurrence of $499 million of 2021 restructuring charges. The increases in the quarter and the first six months of 2022 also reflect higher sales volume of COVID-19 rapid tests and various other products, the impact of gross margin improvement initiatives, and the favorable impact of foreign exchange on ~~costs~~costs. These increases were partially offset by the impact of the voluntary product recall in the Nutritional business, higher manufacturing and ~~higher~~supply chain costs, including inflation, ~~on various manufacturing inputs,~~ commodities and distribution ~~costs.~~

expenses, and lower COVID-19 testing-related sales in Core Laboratory and Molecular Diagnostics.

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Research and development (R&D) expenses increased ~~$43~~$30 million, or ~~6.5~~4.8 percent, in the second quarter of 2022 and increased $73 million, or 5.6 percent, in the first ~~quarter~~six months of ~~2022.~~2022 compared to the prior year. The ~~2022 increase~~increases in R&D ~~was~~expenses in the second quarter and the first six months of 2022 were primarily driven by higher spending on various projects to advance products in development partially offset by the favorable impact of foreign exchange.

Selling, general and administrative expenses ~~were basically flat~~increased $31 million, or 1.1 percent, in the second quarter of 2022, and increased $35 million, or 0.6 percent, in the first ~~quarter~~six months of 2022, ~~compared~~due primarily to ~~the first quarter of 2021. Higher~~higher selling and marketing spending to drive growth across various businesses ~~was~~partially offset by the nonrecurrence of certain 2021 litigation costs and the favorable impact of foreign exchange.

Other (Income) Expense, net

Other income, net increased from ~~$61~~$79 million of income in the second quarter of 2021 to $82 million of income in the second quarter of 2022 and from $140 million of income in the first ~~quarter~~six months of 2021 to ~~$78~~$160 million of income in the first ~~quarter~~six months of 2022. The ~~increase~~increases in the second quarter and the first ~~quarter was~~six months of 2022 were primarily due to higher income in 2022 related to the non-service cost components of net pension and post-retirement medical benefit costs

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partially offset by the ~~change in earnings~~nonrecurrence of a gain on the sale of an equity method ~~investments.~~

investment that occurred in the second quarter of 2021.

Interest Expense, net

Interest expense, net ~~decreased $7~~declined $17 million in the second quarter of 2022 and $24 million in the first ~~quarter~~six months of 2022 ~~primarily~~versus 2021 due to the impact of higher interest rates and cash and short-term investment balances on interest income ~~in the first quarter of 2022~~ and the repayment of debt in the first quarter of 2022.

Taxes on Earnings

Liquidity and Capital Resources ~~March 31,~~June 30, 2022 Compared with December 31, 2021

~~Cash~~

The decrease in cash and cash equivalents ~~decreased~~ from $9.8 billion at December 31, 2021 to ~~$7.7~~$8.9 billion at ~~March 31,~~June 30, 2022 ~~as cash used to fund~~primarily reflects share repurchases, the payment of dividends, the repayment of debt and capital expenditures ~~was~~ partially offset by the cash generated from operations in the first ~~three~~six months of 2022. Working capital ~~declined from~~was $12.6 billion at June 30, 2022 and $11.1 billion at December 31, ~~2021 to $10.8 billion at March 31,~~2021. The increase in working capital in 2022 asprimarily reflects increases in accounts receivable and inventory and a decrease in the current portion of long-term debt partially offset by a decrease in cash and cash ~~equivalents and the increase in accounts payable were partially offset by increases in accounts receivable and inventory.~~

equivalents.

In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first ~~three~~six months of 2022 totaled ~~$2.1~~approximately $4.5 billion, a decrease of ~~$572~~$290 million ~~compared to~~from the prior year primarily due to an increased investment in ~~various~~ working capital ~~components~~ and the timing of pension and postretirement benefit plan contributions partially offset by higher operating earnings and a reduction in cash taxes paid. ~~Cash taxes paid in the first three months of 2022 totaled approximately $195 million versus $270 million in 2021. Other, net in~~ Net cash from operating activities ~~was a use~~includes $348 million of ~~$205~~pension contributions and the payment of cash taxes of approximately $657 million ~~for the first three months of 2022 and a use of $6 million for the first three months of 2021. The year-over-year change~~ in ~~Other, net in~~2022. Net cash from operating activities ~~primarily reflects~~includes $80 million of pension contributions and the ~~timing~~payment of ~~benefit plan contributions.~~

cash taxes of approximately $715 million in 2021.

On March 15, 2022, Abbott repaid the $750 million outstanding principal amount of its 2.55% Notes ~~due 2022~~ upon maturity.

In September 2019, the board of directors authorized the early redemption of up to $5 billion of outstanding long-term notes.As of ~~March 31,~~June 30, 2022, $2.15 billion of the $5 billion authorization remains available.

At ~~March 31,~~June 30, 2022, Abbott’s long-term debt rating was AA- by Standard & Poor’s Corporation and A1 by Moody’s Investors Service. Abbott expects to maintain an investment grade rating. Abbott has readily available financial resources, including lines of credit of $5$5.0 billion which expire in 2025.

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In December 2021, the board of directors authorized the repurchase of up to $5 billion of Abbott’s common shares from time to time. The new authorization was in addition to the $1.081 billion portion of the share repurchase program authorized in 2019 that was unused as of December 31, 2021.In the first quarter of 2022, Abbott repurchased 17.3 million of its common shares for $2.1 billion which fully utilized the authorization remaining under the 2019 share repurchase program and a portion of the 2021 authorization.As of ~~March 31,~~June 30, 2022, $3.981 billion remains available for repurchase under the 2021 repurchase program.

In each of the first ~~quarter~~two quarters of 2022, Abbott declared a quarterly dividend of $0.47 per share on its common shares, which represents an increase of 4.4 percent over the $0.45 per share dividend declared in each of the first ~~quarter~~two quarters of 2021.

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Legislative Issues

Abbott’s primary markets are highly competitive and subject to substantial government regulations throughout the world. Abbott expects debate to continue over the availability, method of delivery, and payment for health care products and services. It is not possible to predict the extent to which Abbott or the health care industry in general might be adversely affected by these factors in the future. A more complete discussion of these factors is contained in Item 1, Business, and Item 1A, Risk Factors, in the 2021 Annual Report on Form 10-K.

Private Securities Litigation Reform Act of 1995 — A Caution Concerning Forward-Looking Statements

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Abbott cautions that any forward-looking statements made by Abbott are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect ~~Abbott’s~~Abbott's operations are discussed in Item 1A, ~~“Risk Factors”~~"Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

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PART I. FINANCIAL INFORMATION

Item 4.Controls and Procedures

~~(a)~~

~~Evaluation of disclosure controls and procedures.~~ The Chief Executive Officer, Robert B. Ford, and Chief Financial Officer, Robert E. Funck, Jr., evaluated the effectiveness of Abbott Laboratories’ disclosure controls and procedures as of the end of the period covered by this report, and concluded that Abbott Laboratories’ disclosure controls and procedures were effective to ensure that information Abbott is required to disclose in the reports that it files or submits with the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and to ensure that information required to be disclosed by Abbott in the reports that it files or submits under the Exchange Act is accumulated and communicated to Abbott’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(a)

~~(b)~~

~~Changes in internal control over financial reporting.~~ During the quarter ended March 31, 2022, there were no changes in Abbott’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, Abbott’s internal control over financial reporting.

Evaluation of disclosure controls and procedures.

The Chief Executive Officer, Robert B. Ford, and Chief Financial Officer, Robert E. Funck, Jr., evaluated the effectiveness of Abbott Laboratories’ disclosure controls and procedures as of the end of the period covered by this report, and concluded that Abbott Laboratories’ disclosure controls and procedures were effective to ensure that information Abbott is required to disclose in the reports that it files or submits with the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and to ensure that information required to be disclosed by Abbott in the reports that it files or submits under the Exchange Act is accumulated and communicated to Abbott’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b)Changes in internal control over financial reporting. During the quarter ended June 30, 2022, there were no changes in Abbott’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, Abbott’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.Legal Proceedings

Abbott is involved in various claims, legal proceedings and investigations as described in our Annual Report on Form 10-K for the year ended December 31, 2021 ~~including (as of March 31, 2022, except where noted below) those described below. While it is not feasible to predict the outcome of such pending claims, proceedings~~ and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations.

~~In its 2021 Annual~~our Quarterly Report on Form ~~10-K, Abbott reported that it is a defendant in numerous lawsuits in federal and state courts involving certain of its specialty infant formula products administered to preterm infants. In April 2022,~~10-Q for the ~~U.S. Judicial Panel on Multidistrict Litigation ordered the consolidation of the federal court cases in the Northern District of Illinois for pretrial purposes.~~

quarterly period ended March 31, 2022.

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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

(c)Issuer Purchases of Equity Securities


Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 1, 2022 - April 30, 2022	0	(1)	$	0	0	$	3,981,169,070	(2)
May 1, 2022 - May 31, 2022	0	(1)	0		0	3,981,169,070		(2)
June 1, 2022 - June 30, 2022	0	(1)	0		0	3,981,169,070		(2)
Total	0	(1)	$	0	0	$	3,981,169,070	(2)

~~(c)~~

~~Issuer Purchases of Equity Securities~~

These shares do not include the shares surrendered to Abbott to satisfy tax withholding obligations in connection with the vesting of restricted stock or restricted stock units.

(d) Maximum

Number (or

(c) Total Number

Approximate

of Shares (or

Dollar Value) of

(a) Total

Units) Purchased

Shares (or Units)

Number of

(b) Average

as Part of

that May Yet Be

Shares (or

Price Paid per

Publicly

Purchased Under

Units)

Share (or

Announced Plans

the Plans or

Period

Purchased

Unit)

or Programs

Programs

January 1, 2022 – January 31, 2022

650,000
⁽¹⁾
$
127.262

650,000

$
5,998,449,112
⁽²⁾
February 1, 2022 – February 28, 2022

8,550,000
⁽¹⁾

123.643

8,550,000

4,941,301,237
⁽²⁾
March 1, 2022 – March 31, 2022

8,113,060
⁽¹⁾

118.344

8,113,060

3,981,169,070
⁽²⁾
Total

17,313,060
⁽¹⁾
$
121.296

17,313,060

$
3,981,169,070
⁽²⁾

2.On December 10, 2021, the board of directors authorized the repurchase of up to $5 billion of Abbott common shares, from time to time.

1.	~~These shares do not include the shares surrendered to Abbott to satisfy tax withholding obligations in connection with the vesting of restricted stock or restricted stock units.~~

On October 11, 2019, the board of directors authorized the repurchase of up to $3 billion of Abbott common shares, from time to time (the “2019 Plan”). On December 10, 2021, the board of directors authorized the repurchase of up to $5 billion of Abbott common shares, from time to time (the “2021 Plan”). The amount available for repurchase under the remaining portion of the 2019 Plan has been fully utilized as part of the share repurchases in the first quarter of 2022.

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Item 6.Exhibits


Exhibit No.		Exhibit

~~3.1~~ 31.1		~~By-Laws of Abbott Laboratories, as amended and restated effective April 29, 2022, filed as Exhibit 3.1 to the Abbott Laboratories Current Report on Form 8-K filed on February 22, 2022.~~

~~31.1~~	Certification of Chief Executive Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

31.2		Certification of Chief Financial Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

Exhibits 32.1 and 32.2 are furnished herewith and should not be deemed to be “filed” under the Securities Exchange Act of 1934.

32.1		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following financial statements and notes from the Abbott Laboratories Quarterly Report on Form 10-Q for the quarter and six months ended ~~March 31,~~June 30, 2022, formatted in Inline XBRL: (i) Condensed Consolidated Statement of Earnings; (ii) Condensed Consolidated Statement of Comprehensive Income; (iii) Condensed Consolidated Balance Sheet; (iv) Condensed Consolidated Statement of Shareholders’ Investment; (v) Condensed Consolidated Statement of Cash Flows; and (vi) Notes to the Condensed Consolidated Financial Statements.

104		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document and included in Exhibit 101).

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~ABBOTT LABORATORIES~~
ABBOTT LABORATORIES
~~By:~~
By:			/s/ Robert E. Funck, Jr.
			Robert E. Funck, Jr.
			Executive Vice President, Finance and Chief Financial Officer

			Date: ~~May 3,~~August 2, 2022


An Illinois Corporation		I.R.S. Employer Identification No.
	36-0698440	~~36-0698440~~



Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Shares, Without Par Value	ABT	New York Stock Exchange Chicago Stock Exchange, Inc.


Part I - Financial Information
			Page
Item 1. Financial Statements and Supplementary Data

Condensed Consolidated Statement of Earnings			3
Condensed Consolidated Statement of Comprehensive Income			4
Condensed Consolidated Balance Sheet			5
Condensed Consolidated Statement of Shareholders’ Investment			6
Condensed Consolidated Statement of Cash Flows			78
Notes to the Condensed Consolidated Financial Statements			89

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			1922

Item 4. Controls and Procedures			2428

Part II - Other Information			28

Item 1. Legal Proceedings			2428

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2528

Item 6. Exhibits			2629

Signature			2730


(in millions)
Contract Liabilities:
Balance at December 31, 2021	$	520
Unearned revenue from cash received during the period		171
Revenue recognized related to contract liability balance		(178)
Balance at March 31, 2022	$	513


⌧ x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


◻ o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended
	March 31
	2022		2021
Net sales	$	11,895	$	10,456

Cost of products sold, excluding amortization of intangible assets		4,987		4,401
Amortization of intangible assets		512		509
Research and development		697		654
Selling, general and administrative		2,787		2,783
Total operating cost and expenses		8,983		8,347

Operating earnings		2,912		2,109

Interest expense		131		135
Interest (income)		(14)		(11)
Net foreign exchange (gain) loss		(3)		3
Other (income) expense, net		(78)		(61)
Earnings before taxes		2,876		2,043
Taxes on earnings		429		250
Net Earnings	$	2,447	$	1,793

Basic Earnings Per Common Share	$	1.38	$	1.00

Diluted Earnings Per Common Share	$	1.37	$	1.00

Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share		1,761,911		1,776,842
Dilutive Common Stock Options		12,631		14,661
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options		1,774,542		1,791,503

Outstanding Common Stock Options Having No Dilutive Effect		2,655		2,694


	Three Months Ended				Six Months Ended
	June 30				June 30
	2022		2021		2022		2021
Net sales	$	11,257	$	10,223	$	23,152	$	20,679

Cost of products sold, excluding amortization of intangible assets	4,933		4,947		9,920		9,348
Amortization of intangible assets	507		504		1,019		1,013
Research and development	684		654		1,381		1,308
Selling, general and administrative	2,757		2,726		5,544		5,509
Total operating cost and expenses	8,881		8,831		17,864		17,178

Operating earnings	2,376		1,392		5,288		3,501

Interest expense	132		134		263		269
Interest (income)	(26)		(11)		(40)		(22)
Net foreign exchange (gain) loss	—		—		(3)		3
Other (income) expense, net	(82)		(79)		(160)		(140)
Earnings before taxes	2,352		1,348		5,228		3,391
Taxes on earnings	334		159		763		409
Net Earnings	$	2,018	$	1,189	$	4,465	$	2,982

Basic Earnings Per Common Share	$	1.15	$	0.67	$	2.53	$	1.67

Diluted Earnings Per Common Share	$	1.14	$	0.66	$	2.51	$	1.66

Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,753,865		1,779,203		1,757,858		1,778,049
Dilutive Common Stock Options	11,598		14,076		12,115		14,369
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,765,463		1,793,279		1,769,973		1,792,418

Outstanding Common Stock Options Having No Dilutive Effect	5,419		2,720		2,655		2,694


	June 30, 2022		December 31, 2021
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	$	(6,260)	$	(5,839)
Net actuarial (losses) and prior service (costs) and credits	(2,554)		(2,670)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other	108		135
Accumulated other comprehensive income (loss)	$	(8,706)	$	(8,374)


	March 31,		December 31,
	2022		2021
Assets
Current Assets:
Cash and cash equivalents	$	7,675	$	9,799
Short-term investments		483		450
Trade receivables, less allowances of $640 in 2022 and $519 in 2021		7,179		6,487
Inventories:
Finished products		3,470		3,081
Work in process		695		694
Materials		1,526		1,382
Total inventories		5,691		5,157
Prepaid expenses and other receivables		2,401		2,346
Total Current Assets		23,429		24,239
Investments		763		816
Property and equipment, at cost		19,521		19,364
Less: accumulated depreciation and amortization		10,613		10,405
Net property and equipment		8,908		8,959
Intangible assets, net of amortization		12,225		12,739
Goodwill		23,179		23,231
Deferred income taxes and other assets		5,503		5,212
	$	74,007	$	75,196



Liabilities and Shareholders’ Investment
Current Liabilities:
Trade accounts payable	$	4,757	$	4,408
Salaries, wages and commissions		1,147		1,625
Other accrued liabilities		5,577		5,181
Dividends payable		824		831
Income taxes payable		338		306
Current portion of long-term debt		4		754
Total Current Liabilities		12,647		13,105
Long-term debt		17,086		17,296
Post-employment obligations, deferred income taxes and other long-term liabilities		8,645		8,771
Commitments and Contingencies
Shareholders’ Investment:
Preferred shares, 1 dollar par value Authorized — 1,000,000 shares, NaN issued		—		—
Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2022: 1,985,525,053; 2021: 1,985,273,421		24,304		24,470
Common shares held in treasury, at cost — Shares: 2022: 234,582,764; 2021: 221,191,228		(13,726)		(11,822)
Earnings employed in the business		33,295		31,528
Accumulated other comprehensive income (loss)		(8,474)		(8,374)
Total Abbott Shareholders’ Investment		35,399		35,802
Noncontrolling Interests in Subsidiaries		230		222
Total Shareholders’ Investment		35,629		36,024
	$	74,007	$	75,196


	Three Months Ended March 31
	2022		2021
Common Shares:
Balance at January 1
Shares: 2022: 1,985,273,421; 2021: 1,981,156,896	$	24,470	$	24,145
Issued under incentive stock programs
Shares: 2022: 251,632; 2021: 1,048,595		14		47
Share-based compensation		324		304
Issuance of restricted stock awards		(504)		(473)
Balance at March 31
Shares: 2022: 1,985,525,053; 2021: 1,982,205,491	$	24,304	$	24,023

Common Shares Held in Treasury:
Balance at January 1
Shares: 2022: 221,191,228; 2021: 209,926,622	$	(11,822)	$	(10,042)
Issued under incentive stock programs
Shares: 2022: 4,144,476; 2021: 4,818,787		223		231
Purchased
Shares: 2022: 17,536,012; 2021: 277,508		(2,127)		(34)
Balance at March 31
Shares: 2022: 234,582,764; 2021: 205,385,343	$	(13,726)	$	(9,845)

Earnings Employed in the Business:
Balance at January 1	$	31,528	$	27,627
Net earnings		2,447		1,793
Cash dividends declared on common shares (per share — 2022: $0.47; 2021: $0.45)		(826)		(803)
Effect of common and treasury share transactions		146		52
Balance at March 31	$	33,295	$	28,669

Accumulated Other Comprehensive Income (Loss):
Balance at January 1	$	(8,374)	$	(8,946)
Other comprehensive income (loss)		(100)		(339)
Balance at March 31	$	(8,474)	$	(9,285)

Noncontrolling Interests in Subsidiaries:
Balance at January 1	$	222	$	219
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases		8		7
Balance at March 31	$	230	$	226


	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	902	$	902	$	—	$	821	$	821
Other		—		245		245		—		249		249
Total		—		1,147		1,147		—		1,070		1,070
Nutritionals —
Pediatric Nutritionals		338		509		847		508		558		1,066
Adult Nutritionals		339		708		1,047		328		642		970
Total		677		1,217		1,894		836		1,200		2,036
Diagnostics —
Core Laboratory		268		916		1,184		271		911		1,182
Molecular		172		248		420		175		272		447
Point of Care		91		37		128		92		37		129
Rapid Diagnostics		2,210		1,344		3,554		1,103		1,153		2,256
Total		2,741		2,545		5,286		1,641		2,373		4,014
Medical Devices —
Rhythm Management		248		276		524		241		278		519
Electrophysiology		216		269		485		179		252		431
Heart Failure		167		54		221		145		49		194
Vascular		209		410		619		219		416		635
Structural Heart		190		221		411		169		208		377
Neuromodulation		143		36		179		145		39		184
Diabetes Care		343		783		1,126		253		727		980
Total		1,516		2,049		3,565		1,351		1,969		3,320

Other		3		—		3		10		6		16

Total	$	4,937	$	6,958	$	11,895	$	3,838	$	6,618	$	10,456


	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	931	$	931	$	—	$	915	$	915
Other	—		292		292		—		265		265
Total	—		1,223		1,223		—		1,180		1,180
Nutritionals —
Pediatric Nutritionals	413		512		925		528		565		1,093
Adult Nutritionals	348		680		1,028		345		670		1,015
Total	761		1,192		1,953		873		1,235		2,108
Diagnostics —
Core Laboratory	287		934		1,221		283		1,023		1,306
Molecular	71		141		212		94		196		290
Point of Care	101		38		139		97		40		137
Rapid Diagnostics	2,010		740		2,750		681		833		1,514
Total	2,469		1,853		4,322		1,155		2,092		3,247
Medical Devices —
Rhythm Management	264		284		548		269		298		567
Electrophysiology	226		260		486		209		278		487
Heart Failure	179		62		241		168		59		227
Vascular	228		425		653		246		451		697
Structural Heart	207		233		440		191		231		422
Neuromodulation	157		40		197		166		44		210
Diabetes Care	399		793		1,192		289		767		1,056
Total	1,660		2,097		3,757		1,538		2,128		3,666

Other	2		—		2		15		7		22

Total	$	4,892	$	6,365	$	11,257	$	3,581	$	6,642	$	10,223


	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	1,833	$	1,833	$	—	$	1,736	$	1,736
Other	—		537		537		—		514		514
Total	—		2,370		2,370		—		2,250		2,250
Nutritionals —
Pediatric Nutritionals	751		1,021		1,772		1,036		1,123		2,159
Adult Nutritionals	687		1,388		2,075		673		1,312		1,985
Total	1,438		2,409		3,847		1,709		2,435		4,144
Diagnostics —
Core Laboratory	555		1,850		2,405		554		1,934		2,488
Molecular	243		389		632		269		468		737
Point of Care	192		75		267		189		77		266
Rapid Diagnostics	4,220		2,084		6,304		1,784		1,986		3,770
Total	5,210		4,398		9,608		2,796		4,465		7,261
Medical Devices —
Rhythm Management	512		560		1,072		510		576		1,086
Electrophysiology	442		529		971		388		530		918
Heart Failure	346		116		462		313		108		421
Vascular	437		835		1,272		465		867		1,332
Structural Heart	397		454		851		360		439		799
Neuromodulation	300		76		376		311		83		394
Diabetes Care	742		1,576		2,318		542		1,494		2,036
Total	3,176		4,146		7,322		2,889		4,097		6,986

Other	5		—		5		25		13		38

Total	$	9,829	$	13,323	$	23,152	$	7,419	$	13,260	$	20,679


	Three Months Ended March 31
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2022		2021		2022		2021		2022		2021
Balance at January 1	$	(5,839)	$	(4,859)	$	(2,670)	$	(3,871)	$	135	$	(216)
Other comprehensive income (loss) before reclassifications		(106)		(536)		17		22		(34)		96
Amounts reclassified from accumulated other comprehensive income		—		—		45		63		(22)		16
Net current period comprehensive income (loss)		(106)		(536)		62		85		(56)		112
Balance at March 31	$	(5,945)	$	(5,395)	$	(2,608)	$	(3,786)	$	79	$	(104)


	Inventory-
	Related		Fixed Asset		Other Exit
(in millions)	Charges		Write-Downs		Costs		Total
Restructuring charges recorded in 2021	$	248	$	80	$	113	$	441
Payments		—		—		(90)		(90)
Other non-cash		(248)		(80)		—		(328)
Accrued balance at December 31, 2021		—		—		23		23
Payments and other adjustments		—		—		(3)		(3)
Accrued balance at March 31, 2022	$	—	$	—	$	20	$	20


(in millions)
Restructuring charges	$	68
Payments and other adjustments		(7)
Accrued balance at December 31, 2021		61
Payments and other adjustments		(16)
Accrued balance at March 31, 2022	$	45


	Outstanding		Exercisable
Number of shares		29,479,237		23,547,781
Weighted average remaining life (years)		5.9		5.1
Weighted average exercise price	$	69.87	$	59.23
Aggregate intrinsic value (in millions)	$	1,445	$	1,397


	Fair Value - Assets					Fair��Value - Liabilities
	March 31,		Dec. 31,			March 31,		Dec. 31,
(in millions)	2022		2021		Balance Sheet Caption	2022		2021		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	—	$	87	Deferred income taxes and other assets	$	34	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		204		222	Prepaid expenses and other receivables		183		65	Other accrued liabilities
Others not designated as hedges		149		70	Prepaid expenses and other receivables		93		32	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		491		521	Long-term debt
	$	353	$	379		$	801	$	618


	Gain (loss) Recognized in				Income (expense) and
	Other Comprehensive				Gain (loss) Reclassified
	Income (loss)				into Income
(in millions)	2022		2021		2022		2021		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	(49)	$	134	$	27	$	(23)	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		30		35		—		—	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		(121)		(69)	Interest expense


	March 31, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	703	$	703	$	748	$	748
Other		60		60		68		68
Total long-term debt		(17,090)		(18,704)		(18,050)		(21,152)
Foreign Currency Forward Exchange Contracts:
Receivable position		353		353		292		292
(Payable) position		(276)		(276)		(97)		(97)
Interest Rate Hedge Contracts:
Receivable position		—		—		87		87
(Payable) position		(34)		(34)		—		—


			Basis of Fair Value Measurement
			Quoted		Significant
			Prices in		Other		Significant
	Outstanding		Active		Observable		Unobservable
(in millions)	Balances		Markets		Inputs		Inputs
March 31, 2022:
Equity securities	$	367	$	367	$	—	$	—
Foreign currency forward exchange contracts		353		—		353		—
Total Assets	$	720	$	367	$	353	$	—

Fair value of hedged long-term debt	$	2,805	$	—	$	2,805	$	—
Interest rate swap derivative financial instruments		34		—		34		—
Foreign currency forward exchange contracts		276		—		276		—
Contingent consideration related to business combinations		134		—		—		134
Total Liabilities	$	3,249	$	—	$	3,115	$	134

December 31, 2021:
Equity securities	$	402	$	402	$	—	$	—
Interest rate swap derivative financial instruments		87		—		87		—
Foreign currency forward exchange contracts		292		—		292		—
Total Assets	$	781	$	402	$	379	$	—

Fair value of hedged long-term debt	$	2,926	$	—	$	2,926	$	—
Foreign currency forward exchange contracts		97		—		97		—
Contingent consideration related to business combinations		130		—		—		130
Total Liabilities	$	3,153	$	—	$	3,023	$	130


			Basis of Fair Value Measurement
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
June 30, 2022:
Equity securities	$	311	$	311	$	—	$	—
Foreign currency forward exchange contracts	563		—		563		—
Total Assets	$	874	$	311	$	563	$	—

Fair value of hedged long-term debt	$	2,759	$	—	$	2,759	$	—
Interest rate swap derivative financial instruments	81		—		81		—
Foreign currency forward exchange contracts	172		—		172		—
Contingent consideration related to business combinations	136		—		—		136
Total Liabilities	$	3,148	$	—	$	3,012	$	136

December 31, 2021:
Equity securities	$	402	$	402	$	—	$	—
Interest rate swap derivative financial instruments	87		—		87		—
Foreign currency forward exchange contracts	292		—		292		—
Total Assets	$	781	$	402	$	379	$	—

Fair value of hedged long-term debt	$	2,926	$	—	$	2,926	$	—
Foreign currency forward exchange contracts	97		—		97		—
Contingent consideration related to business combinations	130		—		—		130
Total Liabilities	$	3,153	$	—	$	3,023	$	130


	Defined Benefit Plans				Medical and Dental Plans
	March 31,		March 31,		March 31,		March 31,
(in millions)	2022		2021		2022		2021

Service cost — benefits earned during the period	$	96	$	100	$	13	$	14
Interest cost on projected benefit obligations		76		62		10		8
Expected return on plan assets		(236)		(211)		(7)		(7)
Net amortization of:
Actuarial loss, net		59		81		5		7
Prior service cost (credit)		—		—		(6)		(7)
Net cost (credit)	$	(5)	$	32	$	15	$	15


	Three Months Ended March 31
	Net Sales to				Operating
	External Customers				Earnings
(in millions)	2022		2021		2022		2021
Established Pharmaceutical Products	$	1,147	$	1,070	$	242	$	169
Nutritional Products		1,894		2,036		251		467
Diagnostic Products		5,286		4,014		2,569		1,701
Medical Devices		3,565		3,320		1,078		1,007
Total Reportable Segments		11,892		10,440		4,140		3,344
Other		3		16
Net sales	$	11,895	$	10,456
Corporate functions and benefit plans costs						(114)		(114)
Net interest expense						(117)		(124)
Share-based compensation (a)						(305)		(288)
Amortization of intangible assets						(512)		(509)
Other, net (b)						(216)		(266)
Earnings before taxes					$	2,876	$	2,043

~~(b)~~
(b)			Other, net for the three and six months ended ~~March 31,~~June 30, 2022 includes ~~$120~~$42 million and $162 million, respectively, of charges related to a voluntary recall within the Nutritional Products segment. Other, net for the three and six months ended ~~March 31, 2021 includes net costs related to certain litigation. Other, net for the three months ended March 31,~~June 30, 2022 and 2021 also includes integration costs associated with the ~~acquisitions~~acquisition of ~~St. Jude Medical and~~ Alere ~~Inc.,~~ and restructuring charges. Restructuring charges in 2021 include Abbott’s restructuring plan for its COVID-19 test manufacturing network. Other, net for the three and six months ended June 30, 2021 also includes costs related to certain litigation.


	Net Sales to External Customers
	Three Months		Three Months
	Ended		Ended				Impact of		Total Change
	March 31,		March 31,		Total		Foreign		Excl. Foreign
(in millions)	2022		2021		Change		Exchange		Exchange

Established Pharmaceutical Products	$	1,147	$	1,070	7.1	%	(6.3)	%	13.4	%
Nutritional Products		1,894		2,036	(7.0)		(2.6)		(4.4)
Diagnostic Products		5,286		4,014	31.7		(3.4)		35.1
Medical Devices		3,565		3,320	7.4		(4.1)		11.5
Total Reportable Segments		11,892		10,440	13.9		(3.8)		17.7
Other		3		16	(85.8)		—		(85.8)
Net Sales	$	11,895	$	10,456	13.8		(3.7)		17.5

Total U.S.	$	4,937	$	3,838	28.6		—		28.6

Total International	$	6,958	$	6,618	5.1		(6.0)		11.1


						(d) Maximum
						Number (or
					(c) Total Number	Approximate
					of Shares (or	Dollar Value) of
	(a) Total				Units) Purchased	Shares (or Units)
	Number of		(b) Average		as Part of	that May Yet Be
	Shares (or		Price Paid per		Publicly	Purchased Under
	Units)		Share (or		Announced Plans	the Plans or
Period	Purchased		Unit)		or Programs	Programs
January 1, 2022 – January 31, 2022	650,000	⁽¹⁾	$	127.262	650,000	$	5,998,449,112	⁽²⁾
February 1, 2022 – February 28, 2022	8,550,000	⁽¹⁾		123.643	8,550,000		4,941,301,237	⁽²⁾
March 1, 2022 – March 31, 2022	8,113,060	⁽¹⁾		118.344	8,113,060		3,981,169,070	⁽²⁾
Total	17,313,060	⁽¹⁾	$	121.296	17,313,060	$	3,981,169,070	⁽²⁾

Large Accelerated Filer ☒x

Accelerated Filer ☐o

Non-Accelerated Filer ☐o

Smaller reporting company ☐o

Emerging growth company ☐o