UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


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

For the quarterly period ended ~~September 30, 2022~~March 31, 2023


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

For the transition period from to

Commission File No. 1-2189

ABBOTT LABORATORIES


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

100 Abbott Park Road

Abbott Park, Illinois 60064-6400

Telephone: (224) 667-6100

Securities Registered Pursuant to Section 12(b) of the Act:



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.

Indicate by check mark whether the registrant: (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer x			Accelerated Filer o

Non-Accelerated Filer o			Smaller reporting company o

			Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of ~~September 30, 2022,~~March 31, 2023, Abbott Laboratories had ~~1,743,573,777~~1,738,946,799 common shares without par value outstanding.

Table of Contents

Abbott Laboratories

Table of Contents

Abbott Laboratories and Subsidiaries

~~Condensed~~Condensed Consolidated Statement of Earnings

(Unaudited)

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


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30				September 30					March 31
		2022		2021		2022		2021			2023		2022
Net sales	Net sales	$	10,410	$	10,928	$	33,562	$	31,607	Net sales	$	9,747	$	11,895

Cost of products sold, excluding amortization of intangible assets	Cost of products sold, excluding amortization of intangible assets	4,629		4,423		14,549		13,771		Cost of products sold, excluding amortization of intangible assets	4,331		4,987
Amortization of intangible assets	Amortization of intangible assets	498		520		1,517		1,533		Amortization of intangible assets	491		512
Research and development	Research and development	782		672		2,163		1,980		Research and development	654		697
Selling, general and administrative	Selling, general and administrative	2,731		2,767		8,275		8,276		Selling, general and administrative	2,762		2,787
Total operating cost and expenses	Total operating cost and expenses	8,640		8,382		26,504		25,560		Total operating cost and expenses	8,238		8,983

Operating earnings	Operating earnings	1,770		2,546		7,058		6,047		Operating earnings	1,509		2,912

Interest expense	Interest expense	141		133		404		402		Interest expense	153		131
Interest (income)	Interest (income)	(55)		(10)		(95)		(32)		Interest (income)	(101)		(14)
Net foreign exchange (gain) loss	Net foreign exchange (gain) loss	19		4		16		7		Net foreign exchange (gain) loss	6		(3)
Other (income) expense, net	Other (income) expense, net	(93)		(74)		(253)		(214)		Other (income) expense, net	(111)		(78)
Earnings before taxes	Earnings before taxes	1,758		2,493		6,986		5,884		Earnings before taxes	1,562		2,876
Taxes on earnings	Taxes on earnings	323		393		1,086		802		Taxes on earnings	244		429
Net Earnings	Net Earnings	$	1,435	$	2,100	$	5,900	$	5,082	Net Earnings	$	1,318	$	2,447

Basic Earnings Per Common Share	Basic Earnings Per Common Share	$	0.82	$	1.18	$	3.35	$	2.85	Basic Earnings Per Common Share	$	0.75	$	1.38

Diluted Earnings Per Common Share	Diluted Earnings Per Common Share	$	0.81	$	1.17	$	3.32	$	2.83	Diluted Earnings Per Common Share	$	0.75	$	1.37

Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,752,968		1,774,516		1,756,209		1,776,870		Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share	1,741,738		1,761,911
Dilutive Common Stock Options	Dilutive Common Stock Options	10,685		14,483		11,638		14,407		Dilutive Common Stock Options	9,977		12,631
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,763,653		1,788,999		1,767,847		1,791,277		Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,751,715		1,774,542

Outstanding Common Stock Options Having No Dilutive Effect	Outstanding Common Stock Options Having No Dilutive Effect	5,445		2,740		2,655		2,694		Outstanding Common Stock Options Having No Dilutive Effect	7,332		2,655

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Comprehensive Income

~~(Unaudited)~~(Unaudited)

(dollars in ~~millions)~~millions)


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30				September 30					March 31
		2022		2021		2022		2021			2023		2022
Net Earnings	Net Earnings	$	1,435	$	2,100	$	5,900	$	5,082	Net Earnings	$	1,318	$	2,447
Foreign currency translation gain (loss) adjustments	Foreign currency translation gain (loss) adjustments	(1,008)		(391)		(1,429)		(762)		Foreign currency translation gain (loss) adjustments	139		(106)
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $11 and $36 in 2022 and $18 and $54 in 2021		56		78		172		211
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $50 and $96 in 2022 and $50 and $98 in 2021		213		139		186		257
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $— in 2023 and $13 in 2022										Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $— in 2023 and $13 in 2022	2		62
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $(58) in 2023 and $(15) in 2022										Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $(58) in 2023 and $(15) in 2022	(129)		(56)
Other comprehensive income (loss)	Other comprehensive income (loss)	(739)		(174)		(1,071)		(294)		Other comprehensive income (loss)	12		(100)
Comprehensive Income	Comprehensive Income	$	696	$	1,926	$	4,829	$	4,788	Comprehensive Income	$	1,330	$	2,347


		September 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:	Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:					Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	Cumulative foreign currency translation (loss) adjustments	$	(7,268)	$	(5,839)	Cumulative foreign currency translation (loss) adjustments	$	(6,594)	$	(6,733)
Net actuarial (losses) and prior service (costs) and credits	Net actuarial (losses) and prior service (costs) and credits	(2,498)		(2,670)		Net actuarial (losses) and prior service (costs) and credits	(1,491)		(1,493)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other		321		135
Accumulated other comprehensive income (loss)		$	(9,445)	$	(8,374)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges						Cumulative gains (losses) on derivative instruments designated as cash flow hedges	46		175
Accumulated Other Comprehensive Income (Loss)						Accumulated Other Comprehensive Income (Loss)	$	(8,039)	$	(8,051)

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

(dollars in millions)


		September 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Assets	Assets					Assets
Current Assets:	Current Assets:					Current Assets:
Cash and cash equivalents	Cash and cash equivalents	$	9,594	$	9,799	Cash and cash equivalents	$	9,161	$	9,882
Short-term investments	Short-term investments	313		450		Short-term investments	371		288
Trade receivables, less allowances of $520 in 2022 and $519 in 2021		6,408		6,487
Trade receivables, less allowances of $503 in 2023 and $500 in 2022						Trade receivables, less allowances of $503 in 2023 and $500 in 2022	6,020		6,218
Inventories:	Inventories:					Inventories:
Finished products	Finished products	3,407		3,081		Finished products	3,944		3,805
Work in process	Work in process	726		694		Work in process	805		680
Materials	Materials	1,601		1,382		Materials	1,924		1,688
Total inventories	Total inventories	5,734		5,157		Total inventories	6,673		6,173
Prepaid expenses and other receivables	Prepaid expenses and other receivables	2,796		2,346		Prepaid expenses and other receivables	2,152		2,663
Total Current Assets	Total Current Assets	24,845		24,239		Total Current Assets	24,377		25,224
Investments	Investments	764		816		Investments	776		766
Property and equipment, at cost	Property and equipment, at cost	19,306		19,364		Property and equipment, at cost	20,605		20,212
Less: accumulated depreciation and amortization	Less: accumulated depreciation and amortization	10,617		10,405		Less: accumulated depreciation and amortization	11,323		11,050
Net property and equipment	Net property and equipment	8,689		8,959		Net property and equipment	9,282		9,162
Intangible assets, net of amortization	Intangible assets, net of amortization	10,850		12,739		Intangible assets, net of amortization	10,006		10,454
Goodwill	Goodwill	22,284		23,231		Goodwill	22,927		22,799
Deferred income taxes and other assets	Deferred income taxes and other assets	5,369		5,212		Deferred income taxes and other assets	6,426		6,033
		$	72,801	$	75,196		$	73,794	$	74,438
Liabilities and Shareholders’ Investment	Liabilities and Shareholders’ Investment					Liabilities and Shareholders’ Investment
Current Liabilities:	Current Liabilities:					Current Liabilities:
Trade accounts payable	Trade accounts payable	$	4,133	$	4,408	Trade accounts payable	$	4,167	$	4,607
Salaries, wages and commissions	Salaries, wages and commissions	1,426		1,625		Salaries, wages and commissions	1,098		1,556
Other accrued liabilities	Other accrued liabilities	5,475		5,181		Other accrued liabilities	5,758		5,845
Dividends payable	Dividends payable	820		831		Dividends payable	888		887
Income taxes payable	Income taxes payable	394		306		Income taxes payable	334		343
Current portion of long-term debt	Current portion of long-term debt	1,117		754		Current portion of long-term debt	2,285		2,251
Total Current Liabilities	Total Current Liabilities	13,365		13,105		Total Current Liabilities	14,530		15,489
Long-term debt	Long-term debt	15,297		17,296		Long-term debt	14,615		14,522
Post-employment obligations, deferred income taxes and other long-term liabilities	Post-employment obligations, deferred income taxes and other long-term liabilities	8,255		8,771		Post-employment obligations, deferred income taxes and other long-term liabilities	7,417		7,522
Commitments and Contingencies	Commitments and Contingencies					Commitments and Contingencies
Shareholders’ Investment:	Shareholders’ Investment:					Shareholders’ Investment:
Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued	Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued	—		—		Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued	—		—
Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2022: 1,985,919,440; 2021: 1,985,273,421		24,560		24,470
Common shares held in treasury, at cost — Shares: 2022: 242,345,663; 2021: 221,191,228		(14,555)		(11,822)
Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2023: 1,986,904,170; 2022: 1,986,519,278						Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2023: 1,986,904,170; 2022: 1,986,519,278	24,488		24,709
Common shares held in treasury, at cost — Shares: 2023: 247,957,371; 2022: 248,724,257						Common shares held in treasury, at cost — Shares: 2023: 247,957,371; 2022: 248,724,257	(15,307)		(15,229)
Earnings employed in the business	Earnings employed in the business	35,115		31,528		Earnings employed in the business	35,868		35,257
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)	(9,445)		(8,374)		Accumulated other comprehensive income (loss)	(8,039)		(8,051)
Total Abbott Shareholders’ Investment	Total Abbott Shareholders’ Investment	35,675		35,802		Total Abbott Shareholders’ Investment	37,010		36,686
Noncontrolling Interests in Subsidiaries	Noncontrolling Interests in Subsidiaries	209		222		Noncontrolling Interests in Subsidiaries	222		219
Total Shareholders’ Investment	Total Shareholders’ Investment	35,884		36,024		Total Shareholders’ Investment	37,232		36,905
		$	72,801	$	75,196		$	73,794	$	74,438

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Condensed Consolidated Statement of Shareholders’ Investment~~

~~(Unaudited)~~

~~(in millions except shares and per share data)~~

Three Months Ended September 30
2022 2021
Common Shares:
Balance at June 30
Shares: 2022: 1,985,676,735; 2021: 1,982,553,488 $ 24,429 $ 24,153
Issued under incentive stock programs
Shares: 2022: 242,705; 2021: 550,366 12 26
Share-based compensation 123 113
Issuance of restricted stock awards (4) (7)
Balance at September 30
Shares: 2022: 1,985,919,440; 2021: 1,983,103,854 $ 24,560 $ 24,285
Common Shares Held in Treasury:
Balance at June 30
Shares: 2022: 234,456,992; 2021: 209,736,139 $ (13,720) $ (10,340)
Issued under incentive stock programs
Shares: 2022: 528,436; 2021: 545,860 31 26
Purchased
Shares: 2022: 8,417,107; 2021: 5,626,606 (866) (685)
Balance at September 30
Shares: 2022: 242,345,663; 2021: 214,816,885 $ (14,555) $ (10,999)
Earnings Employed in the Business:
Balance at June 30 $ 34,487 $ 29,053
Net earnings 1,435 2,100
Cash dividends declared on common shares (per share — 2022: $0.47; 2021: $0.45) (822) (799)
Effect of common and treasury share transactions 15 22
Balance at September 30 $ 35,115 $ 30,376
Accumulated Other Comprehensive Income (Loss):
Balance at June 30 $ (8,706) $ (9,066)
Other comprehensive income (loss) (739) (174)
Balance at September 30 $ (9,445) $ (9,240)
Noncontrolling Interests in Subsidiaries:
Balance at June 30 $ 226 $ 229
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases (17) (13)
Balance at September 30 $ 209 $ 216

~~The accompanying notes to condensed consolidated financial statements are an integral part of this statement.~~

~~Table of Contents~~

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Shareholders’ Investment

(Unaudited)

(in millions except shares and per share data)


		Nine Months Ended September 30					Three Months Ended March 31
		2022		2021			2023		2022
Common Shares:	Common Shares:					Common Shares:
Balance at January 1	Balance at January 1					Balance at January 1
Shares: 2022: 1,985,273,421; 2021: 1,981,156,896		$	24,470	$	24,145
Shares: 2023: 1,986,519,278; 2022: 1,985,273,421						Shares: 2023: 1,986,519,278; 2022: 1,985,273,421	$	24,709	$	24,470
Issued under incentive stock programs	Issued under incentive stock programs					Issued under incentive stock programs
Shares: 2022: 646,019; 2021: 1,946,958		36		91
Shares: 2023: 384,892; 2022: 251,632						Shares: 2023: 384,892; 2022: 251,632	16		14
Share-based compensation	Share-based compensation	572		536		Share-based compensation	296		324
Issuance of restricted stock awards	Issuance of restricted stock awards	(518)		(487)		Issuance of restricted stock awards	(533)		(504)
Balance at September 30
Shares: 2022: 1,985,919,440; 2021: 1,983,103,854		$	24,560	$	24,285
Balance at March 31						Balance at March 31
Shares: 2023: 1,986,904,170; 2022: 1,985,525,053						Shares: 2023: 1,986,904,170; 2022: 1,985,525,053	$	24,488	$	24,304

Common Shares Held in Treasury:	Common Shares Held in Treasury:					Common Shares Held in Treasury:
Balance at January 1	Balance at January 1					Balance at January 1
Shares: 2022: 221,191,228; 2021: 209,926,622		$	(11,822)	$	(10,042)
Shares: 2023: 248,724,257; 2022: 221,191,228						Shares: 2023: 248,724,257; 2022: 221,191,228	$	(15,229)	$	(11,822)
Issued under incentive stock programs	Issued under incentive stock programs					Issued under incentive stock programs
Shares: 2022: 4,808,575; 2021: 5,524,291		261		265
Shares: 2023: 3,933,165; 2022: 4,144,476						Shares: 2023: 3,933,165; 2022: 4,144,476	242		223
Purchased	Purchased					Purchased
Shares: 2022: 25,963,010; 2021: 10,414,554		(2,994)		(1,222)
Balance at September 30
Shares: 2022: 242,345,663; 2021: 214,816,885		$	(14,555)	$	(10,999)
Shares: 2023: 3,166,279; 2022: 17,536,012						Shares: 2023: 3,166,279; 2022: 17,536,012	(320)		(2,127)
Balance at March 31						Balance at March 31
Shares: 2023: 247,957,371; 2022: 234,582,764						Shares: 2023: 247,957,371; 2022: 234,582,764	$	(15,307)	$	(13,726)

Earnings Employed in the Business:	Earnings Employed in the Business:					Earnings Employed in the Business:
Balance at January 1	Balance at January 1	$	31,528	$	27,627	Balance at January 1	$	35,257	$	31,528
Net earnings	Net earnings	5,900		5,082		Net earnings	1,318		2,447
Cash dividends declared on common shares (per share — 2022: $1.41; 2021: $1.35)		(2,475)		(2,403)
Cash dividends declared on common shares (per share — 2023: $0.51; 2022: $0.47)						Cash dividends declared on common shares (per share — 2023: $0.51; 2022: $0.47)	(890)		(826)
Effect of common and treasury share transactions	Effect of common and treasury share transactions	162		70		Effect of common and treasury share transactions	183		146
Balance at September 30		$	35,115	$	30,376
Balance at March 31						Balance at March 31	$	35,868	$	33,295

Accumulated Other Comprehensive Income (Loss):	Accumulated Other Comprehensive Income (Loss):					Accumulated Other Comprehensive Income (Loss):
Balance at January 1	Balance at January 1	$	(8,374)	$	(8,946)	Balance at January 1	$	(8,051)	$	(8,374)
Other comprehensive income (loss)	Other comprehensive income (loss)	(1,071)		(294)		Other comprehensive income (loss)	12		(100)
Balance at September 30		$	(9,445)	$	(9,240)
Balance at March 31						Balance at March 31	$	(8,039)	$	(8,474)

Noncontrolling Interests in Subsidiaries:	Noncontrolling Interests in Subsidiaries:					Noncontrolling Interests in Subsidiaries:
Balance at January 1	Balance at January 1	$	222	$	219	Balance at January 1	$	219	$	222
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases	Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases	(13)		(3)		Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases	3		8
Balance at September 30		$	209	$	216
Balance at March 31						Balance at March 31	$	222	$	230

The accompanying notes to condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(dollars in millions)


	Three Months Ended March 31
	2023		2022
Cash Flow From (Used in) Operating Activities:
Net earnings	$	1,318	$	2,447
Adjustments to reconcile net earnings to net cash from operating activities —
Depreciation	315		311
Amortization of intangible assets	491		512
Share-based compensation	281		305
Trade receivables	233		(751)
Inventories	(419)		(554)
Other, net	(1,076)		(205)
Net Cash From Operating Activities	1,143		2,065

Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(380)		(321)


Sales (purchases) of other investment securities, net	(86)		(41)
Other	4		2
Net Cash From (Used in) Investing Activities	(462)		(360)

Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other	(42)		8

Repayments of long-term debt	—		(751)
Purchases of common shares	(540)		(2,307)
Proceeds from stock options exercised	62		59
Dividends paid	(890)		(832)
Net Cash From (Used in) Financing Activities	(1,410)		(3,823)

Effect of exchange rate changes on cash and cash equivalents	8		(6)

Net Increase (Decrease) in Cash and Cash Equivalents	(721)		(2,124)
Cash and Cash Equivalents, Beginning of Year	9,882		9,799
Cash and Cash Equivalents, End of Period	$	9,161	$	7,675

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Condensed Consolidated Statement of Cash Flows~~

~~(Unaudited)~~

~~(dollars in millions)~~

Nine Months Ended September 30
2022 2021
Cash Flow From (Used in) Operating Activities:
Net earnings $ 5,900 $ 5,082
Adjustments to reconcile net earnings to net cash from operating activities —
Depreciation 943 1,122
Amortization of intangible assets 1,517 1,533
Share-based compensation 570 534
Trade receivables (409) (194)
Inventories (1,224) (471)
Other, net (42) (140)
Net Cash From Operating Activities 7,255 7,466
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment (1,167) (1,271)
Acquisitions of businesses and technologies, net of cash acquired — (187)
Proceeds from business dispositions 48 134
Sales (purchases) of other investment securities, net (3) (27)
Other 14 14
Net Cash From (Used in) Investing Activities (1,108) (1,337)
Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other 37 (7)
Proceeds from issuance of long-term debt 7 —
Repayments of long-term debt (753) (45)
Purchases of common shares (3,110) (1,325)
Proceeds from stock options exercised 126 173
Dividends paid (2,486) (2,404)
Net Cash From (Used in) Financing Activities (6,179) (3,608)
Effect of exchange rate changes on cash and cash equivalents (173) (57)
Net Increase (Decrease) in Cash and Cash Equivalents (205) 2,464
Cash and Cash Equivalents, Beginning of Year 9,799 6,838
Cash and Cash Equivalents, End of Period $ 9,594 $ 9,302

~~The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.~~

~~Table of Contents~~

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 1 — Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements. However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made. It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

Note 2 — New Accounting Standards

Recent Adopted Accounting Standards

In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2022-04, Disclosure of Supplier Finance Program Obligations, which requires an entity to report information about its supplier finance program. Abbott adopted the standard on January 1, 2023. The new standard did not have an impact on Abbott's condensed consolidated financial statements.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

March 31, 2023

(Unaudited)

Note 23 — Revenue

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.

The following tables provide detail by sales category:


		Three Months Ended September 30, 2022						Three Months Ended September 30, 2021							Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
(in millions)	(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total		(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —	Established Pharmaceutical Products —													Established Pharmaceutical Products —
Key Emerging Markets	Key Emerging Markets	$	—	$	993	$	993	$	—	$	936	$	936	Key Emerging Markets	$	—	$	912	$	912	$	—	$	906	$	906
Other	Other	—		333		333		—		329		329		Other	—		277		277		—		241		241
Total	Total	—		1,326		1,326		—		1,265		1,265		Total	—		1,189		1,189		—		1,147		1,147
Nutritionals —	Nutritionals —													Nutritionals —
Pediatric Nutritionals	Pediatric Nutritionals	357		470		827		586		514		1,100		Pediatric Nutritionals	459		465		924		338		509		847
Adult Nutritionals	Adult Nutritionals	329		639		968		333		675		1,008		Adult Nutritionals	353		690		1,043		339		708		1,047
Total	Total	686		1,109		1,795		919		1,189		2,108		Total	812		1,155		1,967		677		1,217		1,894
Diagnostics —	Diagnostics —													Diagnostics —
Core Laboratory	Core Laboratory	281		938		1,219		291		1,001		1,292		Core Laboratory	289		893		1,182		268		916		1,184
Molecular	Molecular	65		118		183		162		183		345		Molecular	47		100		147		172		248		420
Point of Care	Point of Care	92		35		127		100		35		135		Point of Care	93		41		134		91		37		128
Rapid Diagnostics	Rapid Diagnostics	1,303		839		2,142		1,394		746		2,140		Rapid Diagnostics	906		319		1,225		2,181		1,344		3,525
Total	Total	1,741		1,930		3,671		1,947		1,965		3,912		Total	1,335		1,353		2,688		2,712		2,545		5,257
Medical Devices —	Medical Devices —													Medical Devices —
Rhythm Management	Rhythm Management	263		270		533		266		305		571		Rhythm Management	260		267		527		248		276		524
Electrophysiology	Electrophysiology	225		244		469		192		293		485		Electrophysiology	238		267		505		216		269		485
Heart Failure	Heart Failure	177		51		228		170		59		229		Heart Failure	218		63		281		196		54		250
Vascular	Vascular	213		393		606		219		425		644		Vascular	218		399		617		209		410		619
Structural Heart	Structural Heart	207		213		420		177		215		392		Structural Heart	210		251		461		190		221		411
Neuromodulation	Neuromodulation	156		36		192		149		41		190		Neuromodulation	155		41		196		143		36		179
Diabetes Care	Diabetes Care	423		744		1,167		323		798		1,121		Diabetes Care	479		834		1,313		343		783		1,126
Total	Total	1,664		1,951		3,615		1,496		2,136		3,632		Total	1,778		2,122		3,900		1,545		2,049		3,594

Other	Other	3		—		3		6		5		11		Other	3		—		3		3		—		3

Total	Total	$	4,094	$	6,316	$	10,410	$	4,368	$	6,560	$	10,928	Total	$	3,928	$	5,819	$	9,747	$	4,937	$	6,958	$	11,895

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $29 million of sales for the first quarter of 2022 were moved from Rapid Diagnostics to Heart Failure.

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2022~~

~~(Unaudited)~~

~~Note 2 — Revenue (Continued)~~

Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021
(in millions) U.S. Int’l Total U.S. Int’l Total
Established Pharmaceutical Products —
Key Emerging Markets $ — $ 2,826 $ 2,826 $ — $ 2,672 $ 2,672
Other — 870 870 — 843 843
Total — 3,696 3,696 — 3,515 3,515
Nutritionals —
Pediatric Nutritionals 1,108 1,491 2,599 1,622 1,637 3,259
Adult Nutritionals 1,016 2,027 3,043 1,006 1,987 2,993
Total 2,124 3,518 5,642 2,628 3,624 6,252
Diagnostics —
Core Laboratory 836 2,788 3,624 845 2,935 3,780
Molecular 308 507 815 431 651 1,082
Point of Care 284 110 394 289 112 401
Rapid Diagnostics 5,523 2,923 8,446 3,178 2,732 5,910
Total 6,951 6,328 13,279 4,743 6,430 11,173
Medical Devices —
Rhythm Management 775 830 1,605 776 881 1,657
Electrophysiology 667 773 1,440 580 823 1,403
Heart Failure 523 167 690 483 167 650
Vascular 650 1,228 1,878 684 1,292 1,976
Structural Heart 604 667 1,271 537 654 1,191
Neuromodulation 456 112 568 460 124 584
Diabetes Care 1,165 2,320 3,485 865 2,292 3,157
Total 4,840 6,097 10,937 4,385 6,233 10,618
Other 8 — 8 31 18 49
Total $ 13,923 $ 19,639 $ 33,562 $ 11,787 $ 19,820 $ 31,607

Remaining Performance Obligations

As of ~~September 30, 2022,~~March 31, 2023, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately ~~$3.9~~$4.1 billion in the Diagnostics segment and approximately ~~$433~~$450 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 60 percent of these remaining performance obligations over the next 24 months, approximately 1617 percent over the subsequent 12 months and the remainder thereafter.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

March 31, 2023

(Unaudited)

Note 3 — Revenue (Continued)

These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations, extended warranty or service obligations related to previously sold equipment, and remote monitoring services related to previously implanted devices. Abbott has applied the practical expedient described in ~~Financial Accounting Standards Board (FASB)~~FASB Accounting Standards Codification (ASC) 606-10-50-14 and has not included remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above.

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2022~~

~~(Unaudited)~~

~~Note 2 — Revenue (Continued)~~

Other Contract Assets and Liabilities

Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at the net amount expected to be collected. Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and end of the period, as well as the changes in the balance, were not significant.

Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. Abbott’s contract liabilities arise primarily in the Medical Devices reportable segment when payment is received upfront for various multi-period extended service arrangements.

Changes in the contract liabilities during the period are as follows:


(in millions)
Contract Liabilities:
Balance at December 31, ~~2021~~2022	$	~~520~~500
Unearned revenue from cash received during the period	~~466~~122
Revenue recognized related to contract liability balance	~~(508)~~(93)
Balance at ~~September 30, 2022~~March 31, 2023	$	~~478~~529

Note 34 — Supplemental Financial Information

Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Net earnings allocated to common shares for the three months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ were ~~$1.429~~$1.313 billion and ~~$2.092 billion, respectively, and for the nine months ended September 30, 2022 and 2021 were $5.876 billion and $5.061~~$2.438 billion, respectively.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first ~~nine~~three months of ~~2022~~2023 includes ~~$362~~$282 million of pension contributions and the payment of cash taxes of approximately ~~$987~~$122 million. The first ~~nine~~three months of ~~2021~~2022 includes ~~$366~~$334 million of pension contributions and the payment of cash taxes of approximately ~~$990~~$195 million.

The following summarizes the activity for the first ~~nine~~three months of ~~2022~~2023 related to the allowance for doubtful accounts as of ~~September 30, 2022:~~March 31, 2023:


(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, ~~2021~~2022	$	~~313~~262
Provisions/charges to income	108
Amounts charged off and other ~~deductions~~adjustments	~~(49)~~2
Balance at ~~September 30, 2022~~March 31, 2023	$	~~274~~272

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

March 31, 2023

(Unaudited)

Note 4 — Supplemental Financial Information (Continued)

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~~

~~September 30, 2022~~

~~(Unaudited)~~

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

The components of long-term investments as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are as follows:


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	March 31, 2023		December 31, 2022
Long-term Investments:	Long-term Investments:					Long-term Investments:
Equity securities	Equity securities	$	604	$	748	Equity securities	$	565	$	558
Other	Other	160		68		Other	211		208
Total	Total	$	764	$	816	Total	$	776	$	766

The ~~decrease~~increase in Abbott’s long-term investments as of ~~September 30, 2022~~March 31, 2023 versus the balance as of December 31, ~~2021~~2022 primarily relates to ~~a decrease~~an increase in the value of ~~investments~~securities held in a rabbi trust and ~~the impact of~~additional investments,partially offset by equity method investment ~~losses partially offset by an investment in long-term time deposits.~~losses.

Abbott’s equity securities as of ~~September 30, 2022,~~March 31, 2023, include ~~$285~~$305 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 ~~September 30, 2022~~March 31, 2023 with a carrying value of ~~$228~~$162 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately ~~$83~~$88 million that do not have a readily determinable fair value.

In September 2021, Abbott acquired 100 percent of Walk Vascular, LLC (Walk Vascular), a commercial-stage medical device company with a minimally invasive thrombectomy system designed to remove peripheral blood clots. The purchase price, the allocation of acquired assets and liabilities, and the revenue and net income contributed by Walk Vascular since the date of acquisition are not material to Abbott’s condensed consolidated financial statements.

Note 45 — Changes In Accumulated Other Comprehensive Income (Loss)

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


		Three Months Ended September 30													Three Months Ended March 31
		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					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)	(in millions)	2022		2021		2022		2021		2022		2021		(in millions)	2023		2022		2023		2022		2023		2022
Balance at June 30		$	(6,260)	$	(5,230)	$	(2,554)	$	(3,738)	$	108	$	(98)
Balance at January 1														Balance at January 1	$	(6,733)	$	(5,839)	$	(1,493)	$	(2,670)	$	175	$	135
Other comprehensive income (loss) before reclassifications	Other comprehensive income (loss) before reclassifications	(1,008)		(391)		15		16		278		70		Other comprehensive income (loss) before reclassifications	139		(106)		2		17		(42)		(34)
Amounts reclassified from accumulated other comprehensive income	Amounts reclassified from accumulated other comprehensive income	—		—		41		62		(65)		69		Amounts reclassified from accumulated other comprehensive income	—		—		—		45		(87)		(22)
Net current period comprehensive income (loss)	Net current period comprehensive income (loss)	(1,008)		(391)		56		78		213		139		Net current period comprehensive income (loss)	139		(106)		2		62		(129)		(56)
Balance at September 30		$	(7,268)	$	(5,621)	$	(2,498)	$	(3,660)	$	321	$	41
Balance at March 31														Balance at March 31	$	(6,594)	$	(5,945)	$	(1,491)	$	(2,608)	$	46	$	79

1211

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 45 — Changes In Accumulated Other Comprehensive Income (Loss) (Continued)

Nine Months Ended September 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 (1,429) (762) 45 26 289 138
Amounts reclassified from accumulated other comprehensive income — — 127 185 (103) 119
Net current period comprehensive income (loss) (1,429) (762) 172 211 186 257
Balance at September 30 $ (7,268) $ (5,621) $ (2,498) $ (3,660) $ 321 $ 41

Reclassified amounts 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 1112 for additional details.

Note 56 — Goodwill and Intangible Assets

The total amount of goodwill reported was ~~$22.3~~$22.9 billion at ~~September 30, 2022~~March 31, 2023 and ~~$23.2~~$22.8 billion at December 31, ~~2021.~~2022. Foreign currency translation adjustments ~~decreased~~increased goodwill by approximately ~~$946~~$128 million in the first ~~nine~~three months of ~~2022.~~2023. The amount of goodwill related to reportable segments at ~~September 30, 2022~~March 31, 2023 was ~~$2.6~~$2.7 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.5 billion for the Diagnostic Products segment, and ~~$15.9~~$16.4 billion for the Medical Devices segment. There was no reduction of goodwill relating to impairments in the first ~~nine~~three months of ~~2022.~~2023.

The gross amount of amortizable intangible assets, primarily product rights and technology, was ~~$26.9~~$27.4 billion and ~~$27.7~~$27.2 billion as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively. Accumulated amortization was ~~$16.9~~$18.2 billion and ~~$15.9~~$17.6 billion as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively. Foreign currency translation adjustments ~~decreased~~increased intangible assets by ~~$250~~$43 million in the first ~~nine~~three months of ~~2022.~~2023. 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~~$1.5 billion in ~~2026.~~2026 and $1.2 billion in 2027.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $807 million as of ~~September 30, 2022~~March 31, 2023 and ~~$919 million as of~~ December 31, 2021. In the third quarter of 2022, $111 million of impairment charges were recorded on the Research and development line of the Condensed Consolidated Statement of Earnings related to certain IPR&D intangible assets associated with the Medical Devices business segment.2022.

Note 67 — Restructuring Plans

~~On May 27, 2021,~~In 2022 and 2023, 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 of 2021 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~~

~~September 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 the second 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 September 30, 2022:~~

(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 September 30, 2022 $ — $ — $ 13 $ 13

~~In 2021, Abbott management approved~~various plans to streamline operations in order to reduce costs and improve efficiencies in ~~Abbott’s diagnostic, established pharmaceutical, and nutritional businesses. In 2022 and 2021, Abbott management approved plans to streamline operations in~~ its medical devices, ~~segment.~~nutritional, diagnostic, and established pharmaceutical businesses. In the first three months of 2023, Abbott recorded ~~employees-related~~employee related severance and other charges of approximately ~~$12~~$17 million, ~~in the first nine months of 2022~~ of which approximately $5$6 million was recorded in Cost of products sold, ~~approximately $2 million was recorded in Research and development,~~ and approximately $5$11 million was recorded in Selling, general and administrative ~~expense.~~expenses.

The following summarizes the activity ~~for~~related to these ~~restructurings:~~restructuring actions and the status of the related accruals as of March 31, 2023:


(in millions)
~~Restructuring charges recorded in 2021~~Accrued balance at December 31, 2022	$	68228
Restructuring charges in 2023	17
Payments and other adjustments	~~(7)~~(61)
Accrued balance at ~~December~~March 31, ~~2021~~	61
~~Restructuring charges recorded in 2022~~	12
~~Payments and other adjustments~~	~~(39)~~
~~Accrued balance at September 30, 2022~~2023	$	34184

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 78 — Incentive Stock ~~Program~~Programs

In the first ~~nine~~three months of ~~2022,~~2023, Abbott granted ~~2,634,647~~1,887,093 stock options, ~~514,205~~445,278 restricted stock awards and ~~5,427,697~~4,761,433 restricted stock units under its incentive stock program. At ~~September 30, 2022,~~March 31, 2023, approximately 8774 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at ~~September 30, 2022~~March 31, 2023 is as follows:


		Outstanding		Exercisable			Outstanding		Exercisable
Number of shares	Number of shares	29,048,449		23,310,464		Number of shares	29,760,644		25,107,006
Weighted average remaining life (years)	Weighted average remaining life (years)	5.4		4.6		Weighted average remaining life (years)	5.4		4.7
Weighted average exercise price	Weighted average exercise price	$	70.22	$	59.69	Weighted average exercise price	$	73.33	$	65.76
Aggregate intrinsic value (in millions)	Aggregate intrinsic value (in millions)	$	901	$	890	Aggregate intrinsic value (in millions)	$	947	$	946

The total unrecognized share-based compensation cost at ~~September 30, 2022~~March 31, 2023 amounted to approximately ~~$600~~$760 million, which is expected to be recognized over the next three years.

Note 89 — Debt and Lines of Credit

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

Note 910 — 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 ~~$7.9~~$7.1 billion at ~~September 30, 2022~~March 31, 2023 and ~~$8.6~~$7.7 billion at December 31, ~~2021,~~2022, 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 ~~September 30, 2022~~March 31, 2023 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 ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, Abbott held the gross notional amounts of ~~$10.3~~$11.4 billion and ~~$12.2~~$12.0 billion, respectively, of such foreign currency forward exchange contracts.

Abbott has designated a yen-denominated, 5-year term loan of approximately ~~$413~~$451 million and ~~$521~~$446 million as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, 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 with a notional ~~values~~amount totaling approximately $2.9 billion at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 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

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 910 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the amounts and location of certain derivative financial instruments as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:


		Fair Value - Assets					Fair Value - Liabilities						Fair Value - Assets					Fair Value - Liabilities
(in millions)	(in millions)	September 30, 2022		Dec. 31, 2021		Balance Sheet Caption	September 30, 2022		Dec. 31, 2021		Balance Sheet Caption	(in millions)	March 31, 2023		December 31, 2022		Balance Sheet Caption	March 31, 2023		December 31, 2022		Balance Sheet Caption
Interest rate swaps designated as fair value hedges		$	—	$	87	Deferred income taxes and other assets	$	166	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Interest rate swaps designated as fair value hedges:												Interest rate swaps designated as fair value hedges:
Non-current												Non-current	$	—	$	—	Deferred income taxes and other assets	$	126	$	136	Post-employment obligations, deferred income taxes and other long-term liabilities
Current												Current	—		—		Prepaid expenses and other receivables	21		20		Other accrued liabilities
Foreign currency forward exchange contracts:	Foreign currency forward exchange contracts:											Foreign currency forward exchange contracts:
Hedging instruments	Hedging instruments	760		222		Prepaid expenses and other receivables	66		65		Other accrued liabilities	Hedging instruments	76		304		Prepaid expenses and other receivables	139		96		Other accrued liabilities
Others not designated as hedges	Others not designated as hedges	148		70		Prepaid expenses and other receivables	141		32		Other accrued liabilities	Others not designated as hedges	78		108		Prepaid expenses and other receivables	96		130		Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary	Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	413		521		Long-term debt	Debt designated as a hedge of net investment in a foreign subsidiary	—		—		n/a	451		446		Long-term debt
		$	908	$	379		$	786	$	618			$	154	$	412		$	833	$	828

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 nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021.~~2022.


		Gain (loss) Recognized in Other Comprehensive Income (loss)								Income (expense) and Gain (loss) Reclassified into Income										Gain (loss) Recognized in Other Comprehensive Income (loss)				Income (expense) and Gain (loss) Reclassified into Income
		Three Months Ended September 30				Nine Months Ended September 30				Three Months Ended September 30				Nine Months Ended September 30						Three Months Ended March 31				Three Months Ended March 31
(in millions)	(in millions)	2022		2021		2022		2021		2022		2021		2022		2021		Income Statement Caption	(in millions)	2023		2022		2023		2022		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	Foreign currency forward exchange contracts designated as cash flow hedges	$	350	$	96	$	442	$	142	$	79	$	(92)	$	149	$	(207)	Cost of products sold	Foreign currency forward exchange contracts designated as cash flow hedges	$	(63)	$	(49)	$	126	$	27	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary	Debt designated as a hedge of net investment in a foreign subsidiary	24		4		108		41		—		—		—		—		n/a	Debt designated as a hedge of net investment in a foreign subsidiary	(5)		30		—		—		n/a
Interest rate swaps designated as fair value hedges	Interest rate swaps designated as fair value hedges	n/a		n/a		n/a		n/a		(85)		(14)		(253)		(81)		Interest expense	Interest rate swaps designated as fair value hedges	n/a		n/a		9		(121)		Interest expense

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 910 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

Losses of ~~$27~~$103 million and ~~$18~~$51 million were recognized in the three months ended ~~September 30,~~March 31, 2023 and 2022, and 2021, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $225 million and $15 million were recognized in the nine months ended September 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.

The carrying values and fair values of certain financial instruments as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 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.


		September 30, 2022				December 31, 2021					March 31, 2023				December 31, 2022
(in millions)	(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value		(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Investment Securities:	Long-term Investment Securities:									Long-term Investment Securities:
Equity securities	Equity securities	$	604	$	604	$	748	$	748	Equity securities	$	565	$	565	$	558	$	558
Other	Other	160		160		68		68		Other	211		211		208		208
Total Long-term Debt	Total Long-term Debt	(16,414)		(15,821)		(18,050)		(21,152)		Total Long-term Debt	(16,900)		(16,927)		(16,773)		(16,313)
Foreign Currency Forward Exchange Contracts:	Foreign Currency Forward Exchange Contracts:									Foreign Currency Forward Exchange Contracts:
Receivable position	Receivable position	908		908		292		292		Receivable position	154		154		412		412
(Payable) position	(Payable) position	(207)		(207)		(97)		(97)		(Payable) position	(235)		(235)		(226)		(226)
Interest Rate Hedge Contracts:	Interest Rate Hedge Contracts:									Interest Rate Hedge Contracts:
Receivable position		—		—		87		87

(Payable) position	(Payable) position	(166)		(166)		—		—		(Payable) position	(147)		(147)		(156)		(156)

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

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 910 — 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									Basis of Fair Value Measurement
(in millions)	(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs		(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
September 30, 2022:
March 31, 2023:										March 31, 2023:
Equity securities	Equity securities	$	293	$	293	$	—	$	—	Equity securities	$	315	$	315	$	—	$	—
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts	908		—		908		—		Foreign currency forward exchange contracts	154		—		154		—
Total Assets	Total Assets	$	1,201	$	293	$	908	$	—	Total Assets	$	469	$	315	$	154	$	—

Fair value of hedged long-term debt	Fair value of hedged long-term debt	$	2,685	$	—	$	2,685	$	—	Fair value of hedged long-term debt	$	2,720	$	—	$	2,720	$	—
Interest rate swap derivative financial instruments	Interest rate swap derivative financial instruments	166		—		166		—		Interest rate swap derivative financial instruments	147		—		147		—
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts	207		—		207		—		Foreign currency forward exchange contracts	235		—		235		—
Contingent consideration related to business combinations	Contingent consideration related to business combinations	138		—		—		138		Contingent consideration related to business combinations	133		—		—		133
Total Liabilities	Total Liabilities	$	3,196	$	—	$	3,058	$	138	Total Liabilities	$	3,235	$	—	$	3,102	$	133

December 31, 2021:
December 31, 2022:										December 31, 2022:
Equity securities	Equity securities	$	402	$	402	$	—	$	—	Equity securities	$	307	$	307	$	—	$	—
Interest rate swap derivative financial instruments		87		—		87		—

Foreign currency forward exchange contracts	Foreign currency forward exchange contracts	292		—		292		—		Foreign currency forward exchange contracts	412		—		412		—
Total Assets	Total Assets	$	781	$	402	$	379	$	—	Total Assets	$	719	$	307	$	412	$	—

Fair value of hedged long-term debt	Fair value of hedged long-term debt	$	2,926	$	—	$	2,926	$	—	Fair value of hedged long-term debt	$	2,691	$	—	$	2,691	$	—
Interest rate swap derivative financial instruments										Interest rate swap derivative financial instruments	156		—		156		—
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts	97		—		97		—		Foreign currency forward exchange contracts	226		—		226		—
Contingent consideration related to business combinations	Contingent consideration related to business combinations	130		—		—		130		Contingent consideration related to business combinations	130		—		—		130
Total Liabilities	Total Liabilities	$	3,153	$	—	$	3,023	$	130	Total Liabilities	$	3,203	$	—	$	3,073	$	130

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 1011 — 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.

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 1011 — 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 ~~$40~~$25 million to ~~$50~~$35 million. The recorded accrual balance at ~~September 30, 2022~~March 31, 2023 for these proceedings and exposures was approximately ~~$45~~$30 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 1112 — 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 nine~~ months ended ~~September 30~~March 31 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									Defined Benefit Plans				Medical and Dental Plans
		Three Months Ended Sept. 30				Nine Months Ended Sept. 30				Three Months Ended Sept. 30				Nine Months Ended Sept. 30					Three Months Ended March 31				Three Months Ended March 31
(in millions)	(in millions)	2022		2021		2022		2021		2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Service cost - benefits earned during the period	Service cost - benefits earned during the period	$	92	$	98	$	282	$	294	$	13	$	14	$	38	$	42	Service cost - benefits earned during the period	$	60	$	96	$	9	$	13
Interest cost on projected benefit obligations	Interest cost on projected benefit obligations	74		62		225		186		9		8		27		25		Interest cost on projected benefit obligations	114		76		14		10
Expected return on plan assets	Expected return on plan assets	(231)		(211)		(701)		(633)		(8)		(6)		(23)		(20)		Expected return on plan assets	(242)		(236)		(6)		(7)
Net amortization of:	Net amortization of:																	Net amortization of:
Actuarial loss, net	Actuarial loss, net	58		79		174		238		2		7		8		21		Actuarial loss, net	3		59		—		5
Prior service cost (credit)	Prior service cost (credit)	—		—		1		1		(6)		(7)		(18)		(21)		Prior service cost (credit)	—		—		(3)		(6)
Net cost (credit)	Net cost (credit)	$	(7)	$	28	$	(19)	$	86	$	10	$	16	$	32	$	47	Net cost (credit)	$	(65)	$	(5)	$	14	$	15

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 ~~nine~~three months of 2023 and 2022, ~~and 2021, $362~~$282 million and ~~$366~~$334 million, respectively, were contributed to defined benefit plans. In the first ~~nine~~three months of ~~2022~~2023 and ~~2021,~~2022, $28 million~~and$26 million, respectively~~, ~~were~~ was contributed in each year to the post-employment medical and dental plans.

Note 1213 — Taxes on Earnings

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first ~~nine~~three months of ~~2022~~2023 and ~~2021,~~2022, taxes on earnings include approximately ~~$36~~$3 million and ~~$97~~$30 million, respectively, in excess tax benefits associated with share-based compensation. In the first ~~nine~~three months of 2023 and 2022, taxes on earnings also include approximately ~~$20~~$22 million and $30 million, respectively, 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 $75 million to ~~$100~~$80 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.

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Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 1314 — 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 ~~physician offices~~ and alternate-care testing sites. For segment reporting purposes, the Core ~~Laboratory~~Laboratories 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.

2018

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2022~~March 31, 2023

(Unaudited)

Note 1314 — 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 consolidated financial statements.


		Net Sales to External Customers								Operating Earnings									Net Sales to External Customers				Operating Earnings
		Three Months Ended Sept. 30				Nine Months Ended Sept. 30				Three Months Ended Sept. 30				Nine Months Ended Sept. 30					Three Months Ended March 31				Three Months Ended March 31
(in millions)	(in millions)	2022		2021		2022		2021		2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Established Pharmaceutical Products	Established Pharmaceutical Products	$	1,326	$	1,265	$	3,696	$	3,515	$	331	$	293	$	831	$	682	Established Pharmaceutical Products	$	1,189	$	1,147	$	300	$	242
Nutritional Products	Nutritional Products	1,795		2,108		5,642		6,252		69		431		550		1,388		Nutritional Products	1,967		1,894		380		251
Diagnostic Products	Diagnostic Products	3,671		3,912		13,279		11,173		1,352		1,652		5,631		4,429		Diagnostic Products	2,688		5,257		651		2,564
Medical Devices	Medical Devices	3,615		3,632		10,937		10,618		1,039		1,160		3,272		3,375		Medical Devices	3,900		3,594		1,078		1,083
Total Reportable Segments	Total Reportable Segments	10,407		10,917		33,554		31,558		2,791		3,536		10,284		9,874		Total Reportable Segments	9,744		11,892		2,409		4,140
Other	Other	3		11		8		49										Other	3		3
Net sales	Net sales	$	10,410	$	10,928	$	33,562	$	31,607									Net sales	$	9,747	$	11,895
Corporate functions and benefit plan costs	Corporate functions and benefit plan costs									(115)		(204)		(352)		(450)		Corporate functions and benefit plan costs					(77)		(114)
Net interest expense	Net interest expense									(86)		(123)		(309)		(370)		Net interest expense					(52)		(117)
Share-based compensation (a)	Share-based compensation (a)									(123)		(114)		(570)		(534)		Share-based compensation (a)					(281)		(305)
Amortization of intangible assets	Amortization of intangible assets									(498)		(520)		(1,517)		(1,533)		Amortization of intangible assets					(491)		(512)
Other, net (b)	Other, net (b)									(211)		(82)		(550)		(1,103)		Other, net (b)					54		(216)
Earnings before taxes	Earnings before taxes									$	1,758	$	2,493	$	6,986	$	5,884	Earnings before taxes					$	1,562	$	2,876


Notes:			2022 Sales and Operating Earnings for the Diagnostic Products and Medical Devices reportable segments have been updated to reflect the internal transfer of the Acelis Connected Health business from Diagnostic Products to Medical Devices on January 1, 2023.
(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.


(b)			Other, net for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 includes ~~$10~~$120 million ~~and $172 million, respectively,~~ of charges related to a voluntary recall within the Nutritional Products segment and $111 million of charges related to the impairment of IPR&D intangible assets. Other, net for the three and nine months ended September 30, 2022 and 2021 also includes integration costs associated with the acquisition of Alere and restructuring charges. Restructuring charges in 2021 include Abbott’s restructuring plan for its COVID-19 test manufacturing network. Other, net for the nine months ended September 30, 2021 also includes costs related to certain litigation.segment.

Note 15 — Subsequent Event

On April 27, 2023, Abbott completed the acquisition of Cardiovascular Systems, Inc. (CSI) for $20 per common share, which equated to a purchase price of approximately $850 million. The acquisition was funded with cash on hand. CSI sells an atherectomy system used in treating peripheral and coronary artery disease. The acquisition adds complementary technologies to Abbott’s portfolio of vascular device offerings. The transaction will be accounted for as a business combination. Abbott has begun the process of measuring, as of the acquisition date, the acquired assets and assumed liabilities. Preliminary purchase price allocation estimates will be disclosed in Abbott’s Form 10-Q for the period ending June 30, 2023.

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 tables detail sales by reportable segment for the three ~~and nine~~ months ended ~~September 30.~~March 31. Percent changes are versus the prior year and are based on unrounded numbers.


		Net Sales to External Customers											Net Sales to External Customers
(in millions)	(in millions)	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange		(in millions)	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange

Established Pharmaceutical Products	Established Pharmaceutical Products	$	1,326	$	1,265	4.9	%	(7.3)	%	12.2	%	Established Pharmaceutical Products	$	1,189	$	1,147	3.7	%	(7.4)	%	11.1	%
Nutritional Products	Nutritional Products	1,795		2,108		(14.9)		(4.6)		(10.3)		Nutritional Products	1,967		1,894		3.8		(3.9)		7.7
Diagnostic Products	Diagnostic Products	3,671		3,912		(6.2)		(5.6)		(0.6)		Diagnostic Products	2,688		5,257		(48.9)		(1.8)		(47.1)
Medical Devices	Medical Devices	3,615		3,632		(0.5)		(6.9)		6.4		Medical Devices	3,900		3,594		8.5		(3.9)		12.4
Total Reportable Segments	Total Reportable Segments	10,407		10,917		(4.7)		(6.0)		1.3		Total Reportable Segments	9,744		11,892		(18.1)		(3.3)		(14.8)
Other	Other	3		11		n/m		n/m		n/m		Other	3		3		n/m		n/m		n/m
Net Sales	Net Sales	$	10,410	$	10,928	(4.7)		(6.0)		1.3		Net Sales	$	9,747	$	11,895	(18.1)		(3.3)		(14.8)

Total U.S.	Total U.S.	$	4,094	$	4,368	(6.3)		—		(6.3)		Total U.S.	$	3,928	$	4,937	(20.4)		—		(20.4)

Total International	Total International	$	6,316	$	6,560	(3.7)		(10.0)		6.3		Total International	$	5,819	$	6,958	(16.4)		(5.7)		(10.7)


Notes:			The Acelis Connected Health business was internally transferred from Diagnostic Products to Medical Devices on January 1, 2023. As a result, $29 million of sales for the first quarter of 2022 were moved from Diagnostic Products to Medical Devices.
			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

Net Sales to External Customers
(in millions) Nine Months Ended
September 30, 2022 Nine Months Ended
September 30, 2021 Total
Change Impact of
Foreign
Exchange Total Change
Excl. Foreign
Exchange
Established Pharmaceutical Products $ 3,696 $ 3,515 5.2 % (6.4) % 11.6 %
Nutritional Products 5,642 6,252 (9.8) (3.4) (6.4)
Diagnostic Products 13,279 11,173 18.9 (4.2) 23.1
Medical Devices 10,937 10,618 3.0 (5.4) 8.4
Total Reportable Segments 33,554 31,558 6.3 (4.7) 11.0
Other 8 49 n/m n/m n/m
Net Sales $ 33,562 $ 31,607 6.2 (4.7) 10.9
Total U.S. $ 13,923 $ 11,787 18.1 — 18.1
Total International $ 19,639 $ 19,820 (0.9) (7.4) 6.5

~~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 ~~1.3~~14.8 percent ~~increase~~decrease in total net sales during the ~~third quarter~~first three months of ~~2022,~~2023, excluding the impact of foreign exchange, reflected ~~growth~~the decrease in ~~the Medical Devices and Established Pharmaceutical Products segments~~demand for Abbott’s rapid diagnostic tests to detect COVID-19, partially offset by ~~lower Nutritional Products sales as well as a year-over-year decline in COVID-19 testing-related revenues.~~higher growth across other businesses. Abbott’s COVID-19 testing-related sales totaled approximately ~~$1.7~~$730 million during the first quarter of 2023 and approximately $3.3 billion during the ~~third~~first quarter of ~~2022 and approximately $1.9 billion during the third quarter of 2021.~~2022. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales ~~decreased 3.1~~increased 4.9 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 3.2 percent. Abbott’s net sales were unfavorably impacted by changes in foreign exchange rates in the third quarter as the relatively stronger U.S. dollar decreased total international sales by 10.0 percent and total sales by 6.0 percent.

The 10.9 percent increase in total net sales during the first nine 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 $7.3 billion during the first nine months of 2022 and approximately $5.4 billion during the first nine months of 2021. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 0.1 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 4.99.4 percent. Abbott’s net sales were unfavorably impacted by changes in foreign exchange rates in the first ~~nine months~~quarter as the relatively stronger U.S. dollar decreased total international sales by ~~7.4~~5.7 percent and total sales by ~~4.7~~3.3 percent.

Due to the unpredictability of ~~the duration and impact of the current~~demand for COVID-19 ~~pandemic,~~tests, 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.

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


(in millions)	(in millions)	Sept. 30, 2022		Sept. 30, 2021		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange		(in millions)	March 31, 2023		March 31, 2022		Total Change		Impact of Foreign Exchange		Total Change Excl. Foreign Exchange
Established Pharmaceutical Products —	Established Pharmaceutical Products —											Established Pharmaceutical Products —
Key Emerging Markets	Key Emerging Markets	$	2,826	$	2,672	5.8	%	(6.4)	%	12.2	%	Key Emerging Markets	$	912	$	906	0.7	%	(7.6)	%	8.3	%
Other Emerging Markets	Other Emerging Markets	870		843		3.2		(6.3)		9.5		Other Emerging Markets	277		241		15.0		(6.8)		21.8

Nutritionals —	Nutritionals —											Nutritionals —
International Pediatric Nutritionals	International Pediatric Nutritionals	1,491		1,637		(8.9)		(4.3)		(4.6)		International Pediatric Nutritionals	465		509		(8.6)		(4.7)		(3.9)
U.S. Pediatric Nutritionals	U.S. Pediatric Nutritionals	1,108		1,622		(31.7)		—		(31.7)		U.S. Pediatric Nutritionals	459		338		36.1		—		36.1
International Adult Nutritionals	International Adult Nutritionals	2,027		1,987		2.0		(7.0)		9.0		International Adult Nutritionals	690		708		(2.6)		(7.0)		4.4
U.S. Adult Nutritionals	U.S. Adult Nutritionals	1,016		1,006		1.0		—		1.0		U.S. Adult Nutritionals	353		339		3.9		—		3.9

Diagnostics —	Diagnostics —											Diagnostics —
Core Laboratory	Core Laboratory	3,624		3,780		(4.1)		(5.7)		1.6		Core Laboratory	1,182		1,184		(0.2)		(5.3)		5.1
Molecular	Molecular	815		1,082		(24.7)		(2.8)		(21.9)		Molecular	147		420		(65.0)		(1.0)		(64.0)
Point of Care	Point of Care	394		401		(1.6)		(1.2)		(0.4)		Point of Care	134		128		4.7		(1.0)		5.7
Rapid Diagnostics	Rapid Diagnostics	8,446		5,910		42.9		(3.8)		46.7		Rapid Diagnostics	1,225		3,525		(65.3)		(0.8)		(64.5)

Medical Devices —	Medical Devices —											Medical Devices —
Rhythm Management	Rhythm Management	1,605		1,657		(3.2)		(4.5)		1.3		Rhythm Management	527		524		0.4		(3.6)		4.0
Electrophysiology	Electrophysiology	1,440		1,403		2.6		(5.6)		8.2		Electrophysiology	505		485		3.9		(4.9)		8.8
Heart Failure	Heart Failure	690		650		6.2		(2.4)		8.6		Heart Failure	281		250		12.4		(1.2)		13.6
Vascular	Vascular	1,878		1,976		(5.0)		(4.9)		(0.1)		Vascular	617		619		(0.2)		(4.1)		3.9
Structural Heart	Structural Heart	1,271		1,191		6.7		(6.1)		12.8		Structural Heart	461		411		12.2		(4.2)		16.4
Neuromodulation	Neuromodulation	568		584		(2.7)		(2.1)		(0.6)		Neuromodulation	196		179		9.4		(1.8)		11.2
Diabetes Care	Diabetes Care	3,485		3,157		10.4		(7.0)		17.4		Diabetes Care	1,313		1,126		16.6		(4.4)		21.0

Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $29 million of sales for the first quarter of 2022 were moved from Rapid Diagnostics to Heart Failure.

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Excluding the unfavorable effect of foreign exchange, sales in the Key Emerging Markets for Established Pharmaceutical Products increased ~~12.2~~8.3 percent in the first ~~nine~~three months of ~~2022,~~2023, led by ~~double-digit~~ growth in several countries, including ~~India~~Brazil, China and ~~China,~~southeast Asia, and across several therapeutic areas, including ~~gastroenterology,~~cardio-metabolic, respiratory, and central nervous system/pain ~~management, and respiratory products.~~management. Other Emerging Markets, excluding the effect of foreign exchange, increased by ~~9.5~~21.8 percent in the first ~~nine~~three months of ~~2022.~~2023.

~~International~~Excluding the impact of foreign exchange, total Nutritional Products sales in the first three months of 2023 increased 7.7 percent. In U.S. Pediatric ~~Nutritional~~Nutritionals, the 36.1 percent increase in sales ~~excluding~~in the first three months of 2023 reflects the impact of the unfavorable effects of the voluntary recall of certain infant formula products in the first quarter of 2022, partially offset by a decrease in 2023 Pedialyte® sales. Excluding the effect of foreign exchange, ~~decreased 4.6 percent in~~ the first nine months of 2022 versus the comparable 2021 period. The decrease reflects the impact of challenging market dynamics in the infant category in Greater China partially offset by higher sales volumes in various countries in Southeast Asia and Latin America. International Adult Nutritional sales, excluding the effect of foreign exchange, increased 9.0 percent, reflecting double digit growth of the Ensure® ~~and Glucerna~~® ~~brands in several countries in Southeast Asia and China. In the first nine months of 2022, U.S. Adult Nutritional sales increased 1.0 percent.~~

In U.S. Pediatric Nutritionals, Abbott initiated a voluntary recall in February 2022 of certain infant powder formula products manufactured at its facility in Sturgis, Michigan and stopped production at the facility. On May 16, 2022, Abbott entered into a consent decree with the U.S. Food and Drug Administration (FDA) on the steps necessary to resume production and maintain the Sturgis facility and operations. On July 1, Abbott restarted partial production at the facility starting with its specialty formula EleCare® ~~and metabolic formulas. Subsequently, Abbott restarted Similac~~® ~~production. The consent decree does not affect any other Abbott plant or operation.~~

During the first three quarters of 2022, Abbott took various actions to mitigate the impact of the recall on the supply of formula in the U.S. These actions included the shipment of infant formula powder into the U.S. from Abbott's FDA-registered facility in Ireland; prioritization of infant formula production at its Columbus, Ohio facility; conversion of other liquid manufacturing lines into manufacturing Similac liquid ready-to-feed product; increased production of powder infant formula at its Casa Grande, Arizona manufacturing site; and importation of product from its facility in Spain as permitted by the FDA.

~~The 31.7~~3.9 percent decrease in ~~U.S.~~International Pediatric Nutritional sales in the first ~~nine~~three months of ~~2022~~2023 primarily reflects the impact of exiting the ~~recall and the Sturgis production stoppage~~pediatric nutrition business in China, partially offset by ~~increased demand for Abbott’s Pedialyte~~growth in several other markets® ~~products. U.S. sales of infant powder formula brands associated with the recall were $277 million and $900 million in the first nine months of 2022 and 2021, respectively.~~.

Excluding the effect of foreign exchange, the increases of 3.9 percent in U.S. Adult Nutritionals and 4.4 percent in International Adult Nutritionals in the first three months of 2023 were led by growth of Ensure® products.

The ~~23.1~~47.1 percent ~~increase~~decrease in Diagnostic Products sales in the first ~~nine~~three months of ~~2022,~~2023, excluding the impact of foreign exchange, was driven by lower demand for ~~Abbott’s portfolio of~~ COVID-19 ~~tests in~~tests. In Rapid Diagnostics, sales decreased 64.5 percent in the first three months of 2023, excluding the effect of foreign exchange, due to lower demand for COVID-19 tests. In the first three months of 2023 and ~~growth in routine diagnostic testing in Molecular Diagnostics.~~ 2022, Rapid Diagnostics COVID-19 testing-related sales were $704 million and $3.0 billion, respectively. In the first three months of 2023, Rapid Diagnostics sales increased 5.1 percent, excluding COVID-19 testing-related sales, and increased 8.0 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

In Core Laboratory Diagnostics, sales increased ~~1.6~~5.1 percent in the first ~~nine~~three months of ~~2022,~~2023, excluding the effect of foreign exchange, due to the higher volume of routine diagnostic testing ~~from the continued roll-out of the Alinity~~® ~~platform~~performed in hospitals and ~~an expanded menu of tests. These increases were~~other laboratories, partially offset by lower test 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, as well as market disruptions in China due to COVID-19 quarantine restrictions in various cities primarily during the second quarter of 2022.antibodies. In the first ~~nine~~three months of ~~2022~~2023 and ~~2021,~~2022, Core Laboratory Diagnostics ~~IgG and IgM antibody~~COVID-19 testing-related sales ~~on Abbott’s ARCHITECT and Alinity i platforms~~ were ~~$51~~$6 million and ~~$159~~$28 million, respectively. In the first ~~nine~~three months of ~~2022,~~2023, Core Laboratory Diagnostics sales ~~decreased 1.3~~increased 1.7 percent, excluding COVID-19 testing-related sales, and increased ~~4.6~~7.1 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

The 64.0 percent decrease in Molecular Diagnostics sales in the first three months of 2023, excluding the effect of foreign exchange, was driven by lower demand for laboratory-based molecular tests for COVID-19 as well as lower demand for respiratory testing compared to significantly higher-than-usual demand in the first quarter of 2022. In the first three months of 2023 and 2022, Molecular Diagnostics COVID-19 testing-related sales were $20 million and $246 million, respectively. In the first three months of 2023, Molecular Diagnostics sales decreased 27.1 percent, excluding COVID-19 testing-related sales, and decreased 24.8 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

~~The 21.9 percent decrease in Molecular Diagnostics sales in the first nine months of 2022, excluding the effect of foreign exchange, was driven by~~ ~~lower demand for Abbott’s laboratory-based molecular tests for COVID-19 partially offset by growth in the base business from increased routine molecular testing~~. In the first nine months of 2022 and 2021, Molecular Diagnostics COVID-19 testing-related sales were $375 million and $699 million, respectively. In the first nine months of 2022, Molecular Diagnostics sales increased 14.9 percent, excluding COVID-19 testing-related sales, and increased 19.4 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

In Rapid Diagnostics, sales increased 46.7 percent in the first nine 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 nine months of 2022 and 2021, Rapid Diagnostics COVID-19 testing-related sales were $6.9 billion and $4.5 billion, respectively. In the first nine months of 2022, Rapid Diagnostics sales increased 11.8 percent, excluding COVID-19 testing-related sales, and increased 14.6 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.~~These increases reflect higher sales~~

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~~of ID NOW tests for flu, strep, and respiratory syncytial virus (RSV) as well as growth in various other Rapid Diagnostics products.~~

Excluding the effect of foreign exchange, total Medical Devices sales grew ~~8.4~~12.4 percent in the first ~~nine~~three months of ~~2022, driven~~2023, led by double-digit growth in Diabetes Care, ~~Electrophysiology,~~ Structural Heart, Heart Failure and ~~Heart Failure. Growth in~~Neuromodulation. Higher Diabetes Care sales ~~was~~were driven by continued growth of FreeStyle Libre®, Abbott’s continuous glucose monitoring system, in the U.S. and internationally. FreeStyle Libre sales totaled ~~$3.1~~$1.2 billion in the first ~~nine~~three months of ~~2022,~~2023, which reflected a ~~22.8~~25.4 percent increase, excluding the effect of foreign exchange, over the first ~~nine~~three months of ~~2021~~2022 when FreeStyle Libre sales totaled ~~$2.7~~$1.0 billion. ~~During the third quarter of 2022, Abbott launched its FreeStyle Libre 3 system in the U.S., which automatically delivers up-to-the-minute glucose readings and 14-day accuracy in a wearable sensor.~~

During the first ~~nine~~three months of ~~2022,~~2023, procedure volumes increased across ~~Abbott’s~~the cardiovascular and neuromodulation ~~businesses were negatively impacted by new surges of COVID-19~~businesses. In Structural Heart, the 16.4 percent increase in various geographies as well as intermittent COVID-19 lockdown restrictions in China and healthcare staffing challenges throughout the nine months. Despite such challenges, overall volume trends improved in several businesses versus the first nine months of 2021. In Electrophysiology, the 8.2 percent growth,sales, excluding the effect of foreign exchange, reflects an acceleration in the growth of the MitraClip® product along with contributions from recently launched products, including Amulet®, Navitor®, and TriClip®. In Vascular, the 3.9 percent increase in ~~procedure volumes and~~sales, excluding the ~~continued roll‑out~~impact of ~~Abbott’s EnSite~~® ~~X EP System with Ensite Omnipolar Technology (OT), a new cardiac mapping platform available~~foreign exchange, during the first three months of 2023 primarily reflects double-digit growth in ~~the U.S., Japan and across Europe. In January 2022, Abbott announced FDA clearance for the EnSite~~endovascular sales.

® ~~X EP System with EnSite OT. The system leverages the Advisor~~® ~~HD Grid Catheter to provide a 360‑degree view~~Table of ~~the heart without regard to the orientation of the catheter in the heart.~~Contents

~~Growth~~In Electrophysiology, the 8.8 percent increase in ~~Structural Heart during~~sales, excluding the ~~first nine months~~effect of ~~2022,~~foreign exchange, primarily reflects higher procedure volumes in various European countries and the U.S. In Neuromodulation the 11.2 percent increase in sales, excluding the effect of foreign exchange, was ~~12.8 percent,~~ driven by ~~growth across several areas~~the recent launch of the ~~business, including Amplatzer~~Eterna®_~~Amulet~~®TM ~~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 market-leading device~~rechargeable spinal cord stimulation system for the ~~minimally invasive~~ treatment of mitral regurgitation, a leaky heart valve. In Vascular, sales during the first nine months of 2022, excluding the impact of foreign exchange, were virtually unchanged as higher endovascular sales were 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 rateschronic pain along with market growth compared to ~~many other cardiovascular procedures.~~the prior year period.

In the first ~~nine~~three months of ~~2022,~~2023, Medical Devices received various ~~other~~ product approvals. In ~~February 2022,~~January 2023, Abbott announced that the U.S. Food and Drug Administration (FDA) had approved Navitor, Abbott's second-generation transcatheter aortic valve implantation system to treat people with severe aortic stenosis who are at high or extreme risk for open-heart surgery. In March 2023, Abbott's Freestyle Libre continuous glucose monitoring system received U.S. FDA ~~approval~~clearance for ~~an expanded indication for its CardioMEMS~~integration with automated insulin delivery systems. In March 2023, the U.S. FDA approved Abbott's Epic® ~~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.~~Max stented tissue valve to treat people with ~~slow heart rhythms.~~aortic regurgitation or stenosis.

The gross profit margin percentage was ~~50.7~~50.5 percent for the ~~third~~first quarter of ~~2022~~2023 compared to ~~54.8~~53.8 percent for the ~~third~~first quarter of ~~2021.~~2022. The decrease in the first quarter of 2023 reflects the ~~continued~~unfavorable effects of lower sales of COVID-19 tests, foreign exchange, and higher costs for various manufacturing inputs, partially offset by the impact in 2022 of the voluntary product recall ~~and Sturgis manufacturing stoppage~~ in the Nutritional business during the first half of 2022 as well as the prioritization of infant formula sales related to the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The decrease also reflects higher manufacturing and supply chain costs across Abbott's businesses, including inflation, commodities and distribution expenses as well as lower COVID-19 testing-related sales in 2022 and the nonrecurrence of a favorable change in estimate in the third quarter of 2021 related to a previously recognized restructuring plan.

The gross profit margin was 52.1 percent for the first nine months of 2022 compared to 51.6 percent for the first nine months of 2021. The increase reflects the nonrecurrence of 2021 restructuring charges and the impact in 2023 of higher sales of COVID-19 rapid tests during the first nine months of 2022. These favorable impacts were partially offset by the impact of the voluntary product recall and Sturgis manufacturing stoppage in the Nutritional business as well as higher manufacturing and supply chain costs across Abbott's businesses, including inflation and higher commodity and distribution expenses. The future extent to which inflation, supply chain disruptions, and unfavorable foreign exchange rates will have a material effect on Abbott's operating results is uncertain.gross margin improvement initiatives.

Research and development (R&D) expenses ~~increased $110~~decreased $43 million, or ~~16.2 percent, in the third quarter of 2022 and increased $183 million, or 9.2~~6.2 percent, in the first ~~nine months~~quarter of ~~2022~~2023 compared to the prior year. The ~~increase~~decrease in ~~the third quarter primarily reflects the impairment of certain in-process~~ R&D ~~intangible assets in the third quarter of 2022. The increase~~expenses in the first ~~nine months~~quarter of 2023 was ~~also~~primarily driven by ~~higher~~the timing of spending on various projects ~~to advance products in development partially offset by~~and the favorable impact of foreign exchange.

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Selling, general and administrative ~~(SG&A)~~ expenses decreased ~~$36~~$25 million, or ~~1.3~~0.9 percent, in the ~~third~~first quarter of ~~2022~~2023 compared to the prior year as higher selling and marketing spending to drive growth across various businesses was ~~more than~~ offset by the favorable impact of foreign ~~exchange. SG&A expenses were virtually unchanged in the first nine months of 2022 compared to the prior year as higher selling~~exchange and ~~marketing spending was offset by~~ the nonrecurrence of ~~certain 2021 litigation costs and~~2022 expenses related to the ~~favorable impact of foreign exchange.~~product recall in the Nutritional segment.

Other (Income) Expense, net

Other income, net increased from ~~$74 million of income in the third quarter of 2021 to $93 million of income in the third quarter of 2022 and from $214~~$78 million of income in the first ~~nine months~~quarter of ~~2021~~2022 to ~~$253~~$111 million of income in the first ~~nine months~~quarter of ~~2022. The increases~~2023. The increase in ~~the third quarter and~~ the first ~~nine months~~quarter of ~~2022 were primarily due to~~2023 reflects higher income in ~~2022~~2023 related to the non-service cost components of net pension and post-retirement medical benefit costs. In the first nine months of 2022, the higher year-to-date income related to the non-service cost components was partially offset by the nonrecurrence of a gain on the sale of an equity method investment that occurred in the second quarter of 2021.

Interest Expense, net

Interest ~~expense,~~expense, net ~~declined $37~~decreased $65 million ~~in the third quarter of 2022 and $61 million~~ in the first ~~nine months~~quarter of ~~2022 versus 2021~~2023 due to the impact of higher interest rates ~~and cash and short-term investment balances~~ on interest income, ~~and the repayment of debt in the first quarter of 2022~~ partially offset by the impact of interest rate hedge contracts related to certain fixed-rate debt.

Taxes on Earnings

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Liquidity and Capital Resources ~~September 30, 2022~~March 31, 2023 Compared with December 31, ~~2021~~2022

The decrease in cash and cash equivalents from ~~$9.8~~$9.9 billion at December 31, ~~2021~~2022 to ~~$9.6~~$9.2 billion at ~~September 30, 2022~~March 31, 2023 primarily reflects ~~share repurchases,~~ the payment of dividends, share repurchases and capital expenditures, ~~and the repayment of debt~~ partially offset by the cash generated from operations in the first ~~nine~~three months of ~~2022.~~2023. Working capital was ~~$11.5~~$9.8 billion at ~~September 30, 2022~~March 31, 2023 and ~~$11.1~~$9.7 billion at December 31, ~~2021.~~2022. The increase in working capital in ~~2022~~2023 primarily reflects an increase in inventory and a decrease in accounts payable, partially offset by ~~an increase in the current portion of long-term debt and~~ a decrease in cash and cash equivalents.

In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first ~~nine~~three months of ~~2022~~2023 totaled approximately ~~$7.3~~$1.1 billion, which reflects a decrease of ~~$211~~$922 million from the prior ~~year~~year. The decrease is primarily due to ~~an increased investment~~a decline in ~~working capital~~operating earnings, partially offset by ~~higher operating earnings.~~the timing of the collection of trade receivables and a reduction in cash taxes paid. In the first three months of 2023, Net cash from operating activities includes ~~$362~~$282 million of pension contributions and the payment of cash taxes of approximately ~~$987 million in 2022.~~$122 million. In the first three months of 2022, Net cash from operating activities includes ~~$366~~$334 million of pension contributions and the payment of cash taxes of approximately ~~$990 million in 2021.~~$195 million.

On March 15, 2022, Abbott repaid the $750 million outstanding principal amount of its 2.55% Notes 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 ~~September 30, 2022,~~March 31, 2023, $2.15 billion of the $5 billion authorization remains available.

At ~~September 30, 2022,~~March 31, 2023, 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 $5.0 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 ~~nine months~~quarter of ~~2022,~~2023, Abbott repurchased ~~25.7~~approximately 3 million of its common shares for ~~$2.965 billion which fully utilized the authorization remaining under the 2019 share repurchase program and a portion of the 2021 authorization.~~$300 million. As of ~~September 30, 2022, $3.116~~March 31, 2023, $2.134 billion remains available for repurchase under the ~~2021~~share repurchase ~~program.~~program authorized by the board of directors in December 2021.

In ~~each of~~ the first ~~three quarters~~quarter of ~~2022,~~2023, Abbott declared a quarterly dividend of ~~$0.47~~$0.51 per share on its common shares, which represents an increase of ~~4.4~~8.5 percent over the ~~$0.45~~$0.47 per share dividend declared in ~~each of~~ the first ~~three quarters~~quarter of ~~2021.~~2022.

Business Acquisition

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~~2022 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 operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, 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.

(b)Changes in internal control over financial reporting. During the quarter ended ~~September 30, 2022,~~March 31, 2023, 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, asincluding those described in our Annual Report on Form 10-K for the year ended December 31, ~~2021 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31,~~ 2022.

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(1)
(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(2)
July 1, 2022 - July 31, 2022 — $ — — $ 3,981,169,070
August 1, 2022 - August 31, 2022 1,050,000 102.567 1,050,000 3,873,473,475
September 1, 2022 - September 30, 2022 7,363,597 102.895 7,363,597 3,115,796,433
Total 8,413,597 $ 102.854 8,413,597 $ 3,115,796,433


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
January 1, 2023 - January 31, 2023	—	(1)	$	—	—	$	2,434,092,348	(2)
February 1, 2023 - February 28, 2023	600,000	(1)	100.933		600,000	2,373,532,278		(2)
March 1, 2023 - March 31, 2023	2,369,830	(1)	101.037		2,369,830	2,134,092,391		(2)
Total	2,969,830	(1)	101.016		2,969,830	$	2,134,092,391	(2)

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.

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.

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Item 6. Exhibits


Exhibit No.						Exhibit

3.1						By-Laws of Abbott Laboratories, as amended and restated, effective ~~September 15, 2022,~~April 28, 2023, filed as Exhibit 3.1 to the Abbott Laboratories Current Report on Form 8-K fi l e dfiled on ~~September 15, 2022~~February 17, 2023.

.10.1						Abbott Laboratories Non-Employee Directors' Fee Plan, as amended and restated.

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 nine months~~ ended ~~September 30, 2022,~~March 31, 2023, 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).

2926

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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

By:			/s/ ~~Robert~~ROBERT E. ~~Funck, Jr.~~FUNCK, JR.
			Robert E. Funck, Jr.
			Executive Vice President, Finance and Chief Financial Officer

			Date: ~~November 1, 2022~~May 4, 2023

3027


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			87
Notes to the Condensed Consolidated Financial Statements			98

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			2220

Item 4. Controls and Procedures			2825

Part II - Other Information			2825

Item 1. Legal Proceedings			2825

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2825

Item 6. Exhibits			2926

Signature			3027


	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,826	$	2,826	$	—	$	2,672	$	2,672
Other	—		870		870		—		843		843
Total	—		3,696		3,696		—		3,515		3,515
Nutritionals —
Pediatric Nutritionals	1,108		1,491		2,599		1,622		1,637		3,259
Adult Nutritionals	1,016		2,027		3,043		1,006		1,987		2,993
Total	2,124		3,518		5,642		2,628		3,624		6,252
Diagnostics —
Core Laboratory	836		2,788		3,624		845		2,935		3,780
Molecular	308		507		815		431		651		1,082
Point of Care	284		110		394		289		112		401
Rapid Diagnostics	5,523		2,923		8,446		3,178		2,732		5,910
Total	6,951		6,328		13,279		4,743		6,430		11,173
Medical Devices —
Rhythm Management	775		830		1,605		776		881		1,657
Electrophysiology	667		773		1,440		580		823		1,403
Heart Failure	523		167		690		483		167		650
Vascular	650		1,228		1,878		684		1,292		1,976
Structural Heart	604		667		1,271		537		654		1,191
Neuromodulation	456		112		568		460		124		584
Diabetes Care	1,165		2,320		3,485		865		2,292		3,157
Total	4,840		6,097		10,937		4,385		6,233		10,618

Other	8		—		8		31		18		49

Total	$	13,923	$	19,639	$	33,562	$	11,787	$	19,820	$	31,607


(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 September 30, 2022	$	—	$	—	$	13	$	13


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

Established Pharmaceutical Products	$	3,696	$	3,515	5.2	%	(6.4)	%	11.6	%
Nutritional Products	5,642		6,252		(9.8)		(3.4)		(6.4)
Diagnostic Products	13,279		11,173		18.9		(4.2)		23.1
Medical Devices	10,937		10,618		3.0		(5.4)		8.4
Total Reportable Segments	33,554		31,558		6.3		(4.7)		11.0
Other	8		49		n/m		n/m		n/m
Net Sales	$	33,562	$	31,607	6.2		(4.7)		10.9

Total U.S.	$	13,923	$	11,787	18.1		—		18.1

Total International	$	19,639	$	19,820	(0.9)		(7.4)		6.5