Abbott Laboratories (ABT) 10-Q 4 May 10 2010 Q1 Quarterly report Financial data

Condensed Consolidated Statemen

Condensed Consolidated Statement of Earnings (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Condensed Consolidated Statement of Earnings
Net Sales	$7,698,354	$6,718,368
Cost of products sold	3,335,104	2,935,921
Research and development	730,367	650,743
Selling, general and administrative	2,162,400	2,070,945
Total Operating Cost and Expenses	6,227,871	5,657,609
Operating Earnings	1,470,483	1,060,759
Interest expense	118,201	124,190
Interest (income)	(29,531)	(36,044)
Net foreign exchange loss (gain)	70,019	14,434
Other (income) expense, net	(10,413)	(974,300)
Earnings Before Taxes	1,322,207	1,932,479
Taxes on Earnings	319,192	493,842
Net Earnings	$1,003,015	$1,438,637
Basic Earnings Per Common Share (in dollars per share)	0.65	0.93
Diluted Earnings Per Common Share (in dollars per share)	0.64	0.92
Cash Dividends Declared Per Common Share (in dollars per share)	0.44	0.4
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,547,815	1,545,767
Dilutive Common Stock Options and Awards (in shares)	13,508	10,618
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards (in shares)	1,561,323	1,556,385
Outstanding Common Stock Options Having No Dilutive Effect (in shares)	29,403	67,391

1_Condensed Consolidated Statem

Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash Flow From (Used in) Operating Activities:
Net earnings	$1,003,015	$1,438,637
Adjustments to reconcile earnings to net cash from operating activities -
Depreciation	287,249	270,072
Amortization of intangibles	275,252	193,973
Share-based compensation	173,866	186,947
Derecognition of a contingent liability associated with the conclusion of the TAP Pharmaceutical Products Inc. joint venture		(797,130)
Trade receivables	291,638	375,665
Inventories	(49,631)	(198,704)
Other, net	(458,637)	(770,742)
Net Cash From Operating Activities	1,522,752	698,718
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(245,143)	(252,151)
Acquisitions of businesses, net of cash acquired	(6,415,648)	(1,492,059)
Proceeds from sales of investment securities, net	874,139	138,962
Deposit of restricted funds	(1,870,000)
Other	(2,108)	(510)
Net Cash (Used in) Investing Activities	(7,658,760)	(1,605,758)
Cash Flow From (Used in) Financing Activities:
Proceeds from issuance of short-term debt and other	775,006	1,770,418
Proceeds from issuance of long-term debt		3,000,000
Payment of long-term debt	(1,254)	(1,983,176)
Purchases of common shares	(861,368)	(822,953)
Proceeds from stock options exercised, including income tax benefit	188,169	279,394
Dividends paid	(620,752)	(559,081)
Net Cash (Used in) From Financing Activities	(520,199)	1,684,602
Effect of exchange rate changes on cash and cash equivalents	(586,312)	(14,789)
Net (Decrease) Increase in Cash and Cash Equivalents	(7,242,519)	762,773
Cash and Cash Equivalents, Beginning of Year	8,809,339	4,112,022
Cash and Cash Equivalents, End of Period	$1,566,820	$4,874,795

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current Assets:
Cash and cash equivalents	$1,566,820	$8,809,339
Investments, primarily time deposits and certificates of deposit	255,253	1,122,709
Restricted funds, primarily U.S. treasury bills	1,870,000
Trade receivables, less allowances of $315,873 in 2010 and $311,546 in 2009	6,520,222	6,541,941
Inventories:
Finished products	2,138,884	2,289,280
Work in process	746,890	448,487
Materials	525,147	527,110
Total inventories	3,410,921	3,264,877
Prepaid expenses, deferred income taxes, and other receivables	4,067,462	3,575,025
Total Current Assets	17,690,678	23,313,891
Investments	1,120,483	1,132,866
Property and Equipment, at Cost	16,803,187	16,486,906
Less: accumulated depreciation and amortization	8,743,073	8,867,417
Net Property and Equipment	8,060,114	7,619,489
Intangible Assets, net of amortization	10,663,369	6,291,989
Goodwill	15,007,686	13,200,174
Deferred Income Taxes and Other Assets	816,292	858,214
Total Assets	53,358,622	52,416,623
Current Liabilities:
Short-term borrowings	5,730,427	4,978,438
Trade accounts payable	1,663,523	1,280,542
Salaries, dividends payable, and other accruals	6,301,954	6,137,187
Income taxes payable	769,488	442,140
Current portion of long-term debt	718,093	211,182
Total Current Liabilities	15,183,485	13,049,489
Long-term Debt	10,878,649	11,266,294
Post-employment Obligations, Deferred Income Taxes and Other Long-term Liabilities	6,284,148	5,202,111
Commitments and Contingencies
Shareholders' Investment:
Preferred shares, one dollar par value Authorized - 1,000,000 shares, none issued	0	0
Common shares, without par value Authorized - 2,400,000,000 shares Issued at stated capital amount - Shares: 2010: 1,616,801,616; 2009: 1,612,683,987	8,413,595	8,257,873
Common shares held in treasury, at cost - Shares: 2010: 73,236,557; 2009: 61,516,398	(3,945,682)	(3,310,347)
Earnings employed in the business	17,367,857	17,054,027
Accumulated other comprehensive income (loss)	(975,671)	854,074
Total Abbott Shareholders' Investment	20,860,099	22,855,627
Noncontrolling Interests in Subsidiaries	152,241	43,102
Total Equity	21,012,340	22,898,729
Total Liabilities and Shareholders' Investment	$53,358,622	$52,416,623

2_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheet (Parenthetical) (USD $)
In Thousands, except Share data	Mar. 31, 2010	Dec. 31, 2009
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$315,873	$311,546
Preferred shares, par value (in dollars per share)	$1	$1
Preferred shares, Authorized shares	1,000,000	1,000,000
Preferred shares, Issued shares	0	0
Common shares, par value (in dollars per share)
Common shares, Authorized shares	2,400,000,000	2,400,000,000
Common shares, Issued shares	1,616,801,616	1,612,683,987
Common shares held in treasury	73,236,557	61,516,398

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010
Basis of Presentation
Basis of Presentation	Note 1 Basis of Presentation The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rulesand 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 Abbotts Annual Report on Form10-K for the year ended December31, 2009.

Supplemental Financial Informat

Supplemental Financial Information
	3 Months Ended Mar. 31, 2010
Supplemental Financial Information
Supplemental Financial Information	Note 2 Supplemental Financial Information Unvested restricted stock units 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 March31, 2010 and 2009 were $1.001 billion and $1.436 billion, respectively. Other (income) expense, net, for the first quarter of 2009 includes the derecognition of a contingent liability of $797 million and ongoing contractual payments from Takeda associated with the conclusion of the TAP joint venture, and income from the recording of certain investments at fair value in connection with business acquisitions. Net foreign exchange loss (gain) includes a charge of approximately $86 million for the impact of the devaluation of the bolivar currency in Venezuela on balance sheet translation. Other, net in Net cash from operating activities for 2010 and 2009 includes the effects of contributions to defined benefit plans of $466 million and $741 million, respectively, and to the post-employment medical and dental benefit plans of $66 million and $13 million, respectively. The judgment entered by the U.S. District Court for the Eastern District of Texas against Abbott in its litigation with New York University and Centocor,Inc. requires Abbott to secure the judgment in the event that its appeal to the Federal Circuit court is unsuccessful in overturning the district courts decision. In the first quarter of 2010, Abbott deposited $1.87 billion with an escrow agent and considers these assets to be restricted. The components of long-term investments as of March31, 2010 and December31, 2009 are as follows: March31 December31 (dollars in millions) 2010 2009 Equity securities $ 144 $ 153 Note receivable from Boston Scientific, 4% interest, due in 2011 884 880 Other 92 100 Total $ 1,120 $ 1,133

Taxes on Earnings

Taxes on Earnings
	3 Months Ended Mar. 31, 2010
Taxes on Earnings
Taxes on Earnings	Note 3 Taxes on Earnings Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. The effective tax rates are less than the statutory U.S. federal income tax rate principally due to the benefit of lower statutory tax rates and tax exemptions in several foreign taxing jurisdictions. As a result of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act which were signed into law in the first quarter of 2010, Abbott recorded a charge of approximately $60 million in the first quarter 2010 to reduce deferred tax assets associated with retiree health care liabilities related to the Medicare PartD retiree drug subsidy.

Litigation and Environmental Ma

Litigation and Environmental Matters
	3 Months Ended Mar. 31, 2010
Litigation and Environmental Matters
Litigation and Environmental Matters	Note 4 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 $3million, and the aggregate cleanup exposure is not expected to exceed $15million. There are a number of patent disputes with third parties who claim Abbotts products infringe their patents. In April2007, New York University (NYU) and Centocor,Inc. filed a lawsuit in the Eastern District of Texas asserting that HUMIRA infringes a patent co-owned by NYU and Centocor and exclusively licensed to Centocor. In June2009, a jury found that Abbott had willfully infringed the patent and awarded NYU and Centocor approximately $1.67 billion in past compensatory damages. In October2009, the district court overturned the jurys finding that Abbotts infringement was willful, but denied Abbotts request to overturn the jurys verdict on validity, infringement, and damages. In December2009, the district court issued a final judgment and awarded the plaintiffs an additional $175 million in prejudgment interest. Abbott has appealed the jurys verdict. Abbott is confident in the merits of its case and believes that it will prevail on appeal. As a result, no reserves have been recorded in this case. Abbotts acquisition of Kos Pharmaceuticals Inc. resulted in the assumption of various cases and investigations and Abbott has recorded a reserve. There are several civil actions pending brought by individuals or entities that allege generally that Abbott and numerous pharmaceutical companies reported false or misleading pricing information relating to the average wholesale price of certain pharmaceutical products in connection with federal, state and private reimbursement. Civil actions have also been brought against Abbott, and in some cases other members of the pharmaceutical industry, by state attorneys general seeking to recover alleged damages on behalf of state Medicaid programs. In May2006, Abbott was notified that the U.S. Department of Justice intervened in a civil whistle-blower lawsuit alleging that Abbott inflated prices for Medicaid and Medicare reimbursable drugs. Abbott has settled a few of the cases and recorded reserves for its estimated losses in a few other cases, however, Abbott is unable to estimate the range or amount of possible loss for the remaining cases, and no loss reserves have been recorded for them. Many of the products involved in these cases are Hospira products. Hospira, Abbotts former hospital products business, was spun off to Abbotts shareholders in 2004. Abbott retained liability for losses that result from these cases and investigations to the extent any such losses both relate to the sale of Hospiras products prior to the spin-off of Hospira and relate to allegations that were made in such pending and future cas

Post-Employment Benefits

Post-Employment Benefits
	3 Months Ended Mar. 31, 2010
Post-Employment Benefits
Post-Employment Benefits	Note 5 Post-Employment Benefits Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net cost for the three months ended March31 for Abbotts major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans (dollars in millions) 2010 2009 2010 2009 Service cost- benefits earned during the period $ 78 $ 60 $ 14 $ 12 Interest cost on projected benefit obligations 117 94 26 26 Expected return on plans assets (149 ) (127 ) (7 ) (6 ) Net amortization 28 18 6 4 Net cost $ 74 $ 45 $ 39 $ 36 Abbott funds its domestic defined benefit plans according to IRS funding limitations. In the first quarters of 2010 and 2009, $466 million and $741 million, respectively, was contributed to defined benefit plans and $66 million and $13 million, respectively, was contributed to the post-employment medical and dental benefit plans.

Comprehensive Income, net of ta

Comprehensive Income, net of tax
	3 Months Ended Mar. 31, 2010
Comprehensive Income, net of tax
Comprehensive Income, net of tax	Note 6 Comprehensive Income, net of tax Three Months Ended March31 (dollars in millions) 2010 2009 Foreign currency translation (loss) adjustments $ (1,987 ) $ (59 ) Unrealized (losses) gains on marketable equity securities (2 ) 3 Amortization of net actuarial losses and prior service cost and credits 22 16 Net adjustments for derivative instruments designated as cash flow hedges 137 9 Other comprehensive (loss), net of tax (1,830 ) (31 ) Net Earnings 1,003 1,439 Comprehensive (Loss) Income $ (827 ) $ 1,408 March31 2010 December31 2009 Supplemental Comprehensive Income Information, net of tax: Cumulative foreign currency translation (gain) adjustments $ (1,048 ) $ (3,035 ) Cumulative unrealized (gains) on marketable equity securities (22 ) (24 ) Net actuarial losses and prior service cost and credits 2,139 2,161 Cumulative (gains) losses on derivative instruments designated as cash flow hedges (93 ) 44

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information
Segment Information	Note 7 Segment Information Abbotts principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbotts products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians offices and government agencies throughout the world. Abbotts reportable segments are as follows: Pharmaceutical Products Worldwide sales of a broad line of pharmaceuticals. For segment reporting purposes, three pharmaceutical divisions are aggregated and reported as the Pharmaceutical Products segment. 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 and alternate-care testing sites. For segment reporting purposes, three diagnostic divisions are aggregated and reported as the Diagnostic Products segment. Vascular Products Worldwide sales of coronary, endovascular, vessel closure and other products. Abbotts 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. For acquisitions prior to 2006, substantially all intangible assets and related amortization are not allocated to segments. The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and are not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements. Three Months Ended March31 Net Sales to External Customers Operating Earnings (dollars in millions) 2010 2009 2010 2009 Pharmaceutical Products $ 4,103 $ 3,636 $ 1,528 $ 1,305 Nutritional Products 1,320 1,181 188 180 Diagnostic Products 915 816 146 88 Vascular Products 747 645 182 160 Total Reportable Segments 7,085 6,278 2,044 1,733 Other 613 440 Net Sales $ 7,698 $ 6,718 Corporate functions and benefit plans costs (120 ) (94 ) Non-reportable segments 90 61 Net interest expense (89 ) (88 ) Share-based compensation (a) (169 ) (174 ) Other, net (b) (434 ) 494 Consolidated Earnings Before Taxes $ 1,322 $ 1,932 (a) Approximately 40 to 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 months ended March31, 2009, includes the derecognition of a contingent liability o

Incentive Stock Programs

Incentive Stock Programs
	3 Months Ended Mar. 31, 2010
Incentive Stock Programs
Incentive Stock Programs	Note 8 Incentive Stock Programs In the first three months of 2010, Abbott granted 1,510,300 stock options, 163,395 replacement stock options, 1,734,700 restricted stock awards and 5,611,368 restricted stock units under these programs. At March31, 2010, approximately 200million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at March31, 2010 is as follows: Outstanding Exercisable Number of shares 113,746,326 103,058,409 Weighted average remaining life (years) 5.5 5.2 Weighted average exercise price $ 50.26 $ 49.78 Aggregate intrinsic value (in millions) $ 435 $ 435 The total unrecognized share-based compensation cost at March31, 2010 amounted to approximately $450 million which is expected to be recognized over the next three years.

Business Acquisitions

Business Acquisitions
	3 Months Ended Mar. 31, 2010
Business Acquisitions
Business Acquisitions	Note 9 Business Acquisitions In February2010, Abbott acquired Solvays pharmaceuticals business (Solvay Pharmaceuticals) for approximately $6.1 billion, in cash, plus additional payments of up to EUR 100 million per year if certain sales milestones are met in 2011, 2012 and 2013. Contingent consideration of approximately $290 million was recorded based on a preliminary valuation. The acquisition of Solvay Pharmaceuticals provides Abbott with a large and complementary portfolio of pharmaceutical products and expands Abbotts presence in key global emerging markets. Abbott acquired control of this business on February15, 2010 and the financial results of the acquired operations are included in these financial statements beginning on that date. Net sales and pretax loss of the acquired operations, including acquisition and integration expenses, for the first quarter 2010 were approximately $210 million and $37 million, respectively. The acquisition was funded with current cash and short-term investments. The preliminary allocation of the fair value of the acquisition is shown in the table below (in billions of dollars). The allocation of the fair value of the acquisition will be finalized when the valuations are completed. Goodwill, non-deductible $ 2.1 Acquired intangible assets, non-deductible 4.1 Acquired in-process research and development, non-deductible 0.6 Acquired net tangible assets 0.8 Deferred income taxes recorded at acquisition (1.2 ) Total preliminary allocation of fair value $ 6.4 Acquired intangible assets consist primarily of product rights for currently marketed products and will be amortized over 2 to 14 years (average of 11 years). Acquired in-process research and development will be accounted for as indefinite lived intangible assets until regulatory approval or discontinuation. The net tangible assets acquired consist primarily of trade accounts receivable of approximately $620 million, inventory of approximately $420 million, property and equipment of approximately $710 million, net of assumed liabilities, primarily trade accounts payable, accrued compensation and other liabilities. The following unaudited pro forma financial information reflects the consolidated results of operations of Abbott as if the acquisition of Solvay Pharmaceuticals had taken place on January1, 2010 and January1, 2009. The pro forma information includes adjustments for amortization of intangible assets and fair value adjustments to acquisition-date inventory as well as acquisition and integration expenses. The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date. (in billions of dollars, except per share amounts) Three Months Ended March31 2010 2009 Net sales $ 8.3 $ 7.4 Net earnings 1.0 1.3 Diluted earnings per common share 0.63 0.86 In March2010, Abbott acquired STARLIMS Technologies for approximately $105million, in cash, net of cash held by STARLIMS, providing Abbott with leading products and expertise to

Financial Instruments, Derivati

Financial Instruments, Derivatives and Fair Value Measures
	3 Months Ended Mar. 31, 2010
Financial Instruments, Derivatives and Fair Value Measures
Financial Instruments, Derivatives and Fair Value Measures	Note 10 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 for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, totaling $1.3 billion and $2.0 billion at March31, 2010 and December31, 2009, respectively, 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 March31, 2010 will be included in Cost of products sold at the time the products are sold, generally through the next twelve 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 and Japanese yen, 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, European currencies and Japanese yen. At March31, 2010 and December31, 2009, Abbott held $8.3 billion and $7.5 billion, respectively, of such foreign currency forward exchange contracts. Abbott has designated foreign denominated short-term debt as a hedge of the net investment in a foreign subsidiary of approximately $570 million and approximately $575 million as of March31, 2010 and December31, 2009, respectively. Accordingly, changes in the fair value of this debt due to changes in exchange rates are recorded in Accumulated other comprehensive income (loss), net of tax. Abbott is a party to interest rate swap contracts totaling $5.5 billion at March31, 2010 and December31, 2009 to manage its exposure to changes in the fair value of fixed-rate debt due 2011 through 2019. 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. No hedge ineffectiveness was recorded in income in 2010 or 2009 for these hedges. The following table summarizes the amounts and location of certain derivative financial instruments as of March31, 2010 and December31, 2009: Fair Value - Assets Fair Value - Liabilities (dollars in millions) March31 2010 Dec.31 2009 Balance Sheet Caption March31 2010 Dec.31 2009 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ 73 $ 80 Deferred income taxes and other assets $ 151 $ 218 Post-employment oblig

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	3 Months Ended Mar. 31, 2010
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note11 Goodwill and Intangible Assets Abbott recorded goodwill of approximately $2.1 billion in 2010 related to the acquisitions of Solvay Pharmaceuticals and STARLIMS Technologies. In addition, in the first quarter of 2010, Abbott paid $250 million to Boston Scientific as a result of the approval to market the Xience V drug-eluting stent in Japan, resulting in an increase in goodwill. Abbott recorded goodwill of approximately $1.7 billion in 2009 related to the acquisitions of Advanced Medical Optics,Inc. and Ibis Biosciences,Inc. Goodwill related to the Solvay Pharmaceuticals acquisition was allocated to the Pharmaceutical Products segment, goodwill related to the Boston Scientific payment was allocated to the Vascular Products segment and goodwill associated with the Ibis and STARLIMS acquisitions was allocated to the Diagnostic Products segment. Foreign currency translation adjustments and other adjustments decreased goodwill in the first three months of 2010 and 2009 by approximately $600 million and $2 million, respectively. The amount of goodwill related to reportable segments at March31, 2010 was $8.4 billion for the Pharmaceutical Products segment, $206 million for the Nutritional Products segment, $417 million for the Diagnostic Products segment and $2.7 billion for the Vascular Products segment. There were no reductions of goodwill relating to impairments or disposal of all or a portion of a business. The gross amount of amortizable intangible assets, primarily product rights and technology was $14.9 billion as of March31, 2010 and $10.8 billion as of December31, 2009, and accumulated amortization was $5.4 billion as of March31, 2010 and $5.1 billion as of December31, 2009. Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $1.2 billion and $610 million at March31, 2010 and December31, 2009, respectively. The estimated annual amortization expense for intangible assets is approximately $1.4 billion in 2010, $1.5 billion in 2011, $1.4 billion in 2012, $1.0 billion in 2013 and $965 million in 2014. Amortizable intangible assets are amortized over 2 to 30years (average 11 years).

Restructuring Plans

Restructuring Plans
	3 Months Ended Mar. 31, 2010
Restructuring Plans
Restructuring Plans	Note 12 Restructuring Plans In 2008, Abbott management approved a plan to streamline global manufacturing operations, reduce overall costs, and improve efficiencies in Abbotts core diagnostic business. Charges of approximately $14 million and $9 million were recorded in the first three months of 2010 and 2009, respectively, relating to this restructuring, primarily for accelerated depreciation and product transfer costs. Additional charges will occur through 2011 as a result of product re-registration timelines required under manufacturing regulations in a number of countries and product transition timelines. The following summarizes the activity for this restructuring: (dollars in millions) 2010 2009 Accrued balance at January1 $ 98 $ 110 Restructuring charges 1 Payments and other adjustments (1 ) Accrued balance at March31 $ 98 $ 110 In 2009 and prior years, Abbott management approved plans to realign its worldwide pharmaceutical and vascular manufacturing operations and selected domestic and international commercial and research and development operations in order to reduce costs. Charges of $3 million and $9 million were subsequently recorded in the first three months of 2010 and 2009, respectively, relating to these restructurings, primarily for accelerated depreciation and product transfer costs. The following summarizes the activity for these restructurings: (dollars in millions) 2010 2009 Accrued balance at January1 $ 145 $ 105 Restructuring charges 26 Payments and other adjustments (31 ) (24 ) Accrued balance at March31 $ 114 $ 107

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	0000001800
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,543,565,059
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1