Abbott Laboratories (ABT) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	1,800
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
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	1,490,441,465
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statement of Earnings
Net Sales	$ 5,170	$ 5,057	$ 10,067	$ 9,812
Cost of products sold, excluding amortization of intangible assets	2,218	2,288	4,299	4,562
Amortization of intangible assets	151	133	307	260
Research and development	345	310	658	679
Selling, general and administrative	1,727	1,649	3,464	3,269
Total operating cost and expenses	4,441	4,380	8,728	8,770
Operating earnings	729	677	1,339	1,042
Interest expense	44	36	81	72
Interest (income)	(27)	(19)	(48)	(35)
Net foreign exchange loss (gain)	5		(49)	1
Other (income) expense, net	(279)	2	(284)	5
Earnings from continuing operations before taxes	986	658	1,639	999
Taxes on earnings from continuing operations	200	233	324	350
Earnings from continuing operations	786	425	1,315	649
Earnings (loss) from discontinued operations, net of taxes	(1)	41	25	192
Gain (loss) on sale of discontinued operations, net of tax	(1)		1,736
Net earnings (loss) from discontinued operations, net of tax	(2)	41	1,761	192
Net Earnings	$ 784	$ 466	$ 3,076	$ 841
Basic Earnings Per Common Share
Continuing operations (in dollars per share)	$ 0.52	$ 0.28	$ 0.87	$ 0.42
Discontinued operations (in dollars per share)		0.03	1.17	0.13
Net earnings (in dollars per share)	0.52	0.31	2.04	0.55
Diluted Earnings Per Common Share
Continuing operations (in dollars per share)	0.52	0.28	0.87	0.42
Discontinued operations (in dollars per share)		0.02	1.16	0.13
Net earnings (in dollars per share)	0.52	0.30	2.03	0.55
Cash Dividends Declared Per Common Share (in dollars per share)	$ 0.24	$ 0.22	$ 0.48	$ 0.44
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,493,771	1,506,595	1,500,285	1,521,668
Dilutive Common Stock Options (in shares)	10,444	10,451	10,676	10,605
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares)	1,504,215	1,517,046	1,510,961	1,532,273
Outstanding Common Stock Options Having No Dilutive Effect (in shares)	658	544	658	544

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Condensed Consolidated Statement of Comprehensive Income
Net Earnings	$ 784	$ 466	$ 3,076	$ 841
Foreign currency translation (loss) gain adjustments	84	(19)	(827)	43
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $10 and $25 in 2015 and $7 and $15 in 2014	22	12	53	28
Unrealized gains (losses) on marketable equity securities, net of taxes of $256 and $344 in 2015 and $(2) and $(2) in 2014	522	(4)	695	(4)
Net adjustments for derivative instruments designated as cash flow hedges and other, net of taxes of $(6) and nil in 2015 and $(2) and $(2) in 2014	(25)	(7)	1	(7)
Other comprehensive income (loss)	603	(18)	(78)	60
Comprehensive Income	1,387	$ 448	2,998	$ 901
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax
Cumulative foreign currency translation (loss) adjustments	(3,643)		(3,643)		$ (2,924)
Net actuarial (losses) and prior service cost and credits	(2,157)		(2,157)		(2,229)
Cumulative unrealized gains on marketable equity securities	696		696		1
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other	$ 100		$ 100		$ 99

Condensed Consolidated Stateme4

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statement of Comprehensive Income
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, taxes	$ 10	$ 7	$ 25	$ 15
Unrealized gains (losses) on marketable equity securities, taxes	256	(2)	344	(2)
Net adjustments for derivative instruments designated as cash flow hedges and other, taxes	$ (6)	$ (2)	$ 0	$ (2)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 4,048	$ 4,063
Short-term investments	7,129	397
Trade receivables, less allowances of $362 in 2015 and $310 in 2014	3,553	3,586
Inventories:
Finished products	1,869	1,807
Work in process	303	278
Materials	563	558
Total inventories	2,735	2,643
Prepaid expenses, deferred income taxes, and other receivables	3,573	3,680
Current assets held for disposition	93	892
Total Current Assets	21,131	15,261
Investments	243	229
Property and Equipment, at cost	12,433	12,632
Less: accumulated depreciation and amortization	6,695	6,697
Net property and equipment	5,738	5,935
Intangible assets, net of amortization	5,785	6,198
Goodwill	9,896	10,067
Deferred income taxes and other assets	1,330	1,651
Non-current assets held for disposition	2	1,934
Total Assets	44,125	41,275
Current Liabilities:
Short-term borrowings	2,867	4,382
Trade accounts payable	1,000	1,064
Salaries, wages and commissions	759	776
Other accrued liabilities	3,288	2,943
Dividends payable	358	362
Income taxes payable	589	270
Current portion of long-term debt	32	55
Current liabilities held for disposition	292	680
Total Current Liabilities	9,185	10,532
Long-term debt	5,862	3,408
Post-employment Obligations, deferred income taxes and other long - term Liabilities	$ 5,952	5,588
Non-current liabilities held for disposition		$ 108
Commitments and Contingencies
Shareholders' Investment:
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: 2015: 1,699,703,688; 2014: 1,694,929,949	$ 12,566	$ 12,383
Common shares held in treasury, at cost - Shares: 2015:209,262,223; 2014: 186,894,515	(9,716)	(8,678)
Earnings employed in the business	25,162	22,874
Accumulated other comprehensive income (loss)	(5,004)	(5,053)
Total Abbott Shareholders' Investment	23,008	21,526
Noncontrolling Interests in Subsidiaries	118	113
Total Shareholders' Investment	23,126	21,639
Total Liabilities and Shareholders' Investment	$ 44,125	$ 41,275

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 362	$ 310
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, Authorized shares	2,400,000,000	2,400,000,000
Common shares, Issued shares	1,699,703,688	1,694,929,949
Common shares held in treasury, shares	209,262,223	186,894,515

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 3,076	$ 841
Adjustments to reconcile net earnings to net cash from operating activities -
Depreciation	416	463
Amortization of intangibles	307	335
Share-based compensation	205	168
Gain on sale of discontinued operations	(2,820)
Gain on sale of Mylan shares	(207)
Trade receivables	(125)	(76)
Inventories	(210)	(141)
Other, net	301	(354)
Net Cash From Operating Activities	943	1,236
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(451)	(513)
Proceeds from business disposition	230
Acquisitions of businesses and technology, net of cash acquired	(4)
Proceeds from the sale of Mylan shares	2,290
(Purchases) Sales of investment securities, net	(2,056)	1,119
Other	28	27
Net Cash From (Used in) Investing Activities	37	633
Cash Flow From (Used in) Financing Activities:
Net (repayments of) proceeds from issuance of short-term debt and other	(1,518)	872
Proceeds from the issuance of long-term debt	2,485
Repayments of long-term debt	(33)
Purchases of common shares	(1,347)	(2,193)
Proceeds from stock options exercised, including income tax benefit	213	226
Dividends paid	(724)	(676)
Net Cash (Used in) Financing Activities	(924)	(1,771)
Effect of exchange rate changes on cash and cash equivalents	(71)	(3)
Net Increase (Decrease) in Cash and Cash Equivalents	(15)	95
Cash and Cash Equivalents, Beginning of Year	4,063	3,475
Cash and Cash Equivalents, End of Period	$ 4,048	$ 3,570

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Basis of Presentation	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, 2014. The consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations.
Discontinued Operations	Note 2 — Discontinued Operations On February 27, 2015, Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan Inc. (Mylan) for 110 million shares (or approximately 22%) of a newly formed entity (Mylan N.V.) that combined Mylan’s existing business and Abbott’s developed markets branded generics pharmaceuticals business. Mylan N.V. is publicly traded. Historically, this business was included in Abbott’s Established Pharmaceutical Products segment. Abbott retained its branded generics pharmaceuticals business in emerging markets. At the date of closing, the 110 million Mylan N.V. shares that Abbott received were valued at $5.77 billion and Abbott recorded an after-tax gain on the sale of the business of approximately $1.6 billion. The shareholder agreement with Mylan N.V. includes voting and other restrictions that prevent Abbott from exercising significant influence over the operating and financial policies of Mylan N.V. At the close of this transaction, Abbott and Mylan entered into transition services agreements pursuant to which Abbott and Mylan are providing various back office support services to each other on an interim transitional basis. Transition services may be provided for up to 2 years. Charges by Abbott under these transition services agreements are recorded as a reduction of the costs to provide the respective service in the applicable expense category in the Condensed Consolidated Statement of Earnings. This transition support does not constitute significant continuing involvement in Mylan’s operations. Abbott also entered into manufacturing supply agreements with Mylan related to certain products, with the supply term ranging from 3 to 10 years and requiring a 2 year notice prior to termination. The cash flows associated with these transition service and manufacturing supply agreements are not expected to be significant and therefore, these cash flows are not direct cash flows of the disposed component under Accounting Standards Codification 205. In April 2015, Abbott sold 40.3 million of the 110 million ordinary shares of Mylan N.V. received in the sale of the developed markets branded generics pharmaceuticals business to Mylan. In the second quarter of 2015, Abbott recorded a pretax gain of $207 million on $2.29 billion in net proceeds from the sale of these shares. The gain is recognized in the Other (income) expense line of the Condensed Consolidated Statement of Earnings. The proceeds from the sale were invested in short-term investments. On February 10, 2015, Abbott completed the sale of its animal health business to Zoetis Inc. Abbott received cash proceeds of $230 million and reported an after tax gain on the sale of approximately $130 million. As a result of the disposition of the above businesses, the current and prior year operating results of these businesses up to the date of sale are reported as part of discontinued operations on the Earnings from Discontinued Operations, net of tax line in the Condensed Consolidated Statement of Earnings. Discontinued operations include an allocation of interest expense assuming a uniform ratio of consolidated debt to equity for all of Abbott’s historical operations. On January 1, 2013, Abbott completed the separation of AbbVie Inc. (AbbVie), which was formed to hold Abbott’s research-based proprietary pharmaceuticals business. For a small portion of AbbVie’s operations, the legal transfer of AbbVie’s assets (net of liabilities) did not occur with the separation of AbbVie on January 1, 2013 due to the time required to transfer marketing authorizations and other regulatory requirements in each of these countries. Under the terms of the separation agreement with Abbott, AbbVie is subject to the risks and entitled to the benefits generated by these operations and assets. The majority of these operations were transferred to AbbVie in 2013 and 2014. These assets and liabilities have been presented as held for disposition in the Condensed Consolidated Balance Sheet. Abbott has recorded a prepaid asset of $210 million for its obligation to transfer these net liabilities held for disposition to AbbVie. Abbott has retained all liabilities for all U.S. federal and foreign income taxes on income prior to the separation, as well as certain non-income taxes attributable to AbbVie’s business prior to the separation. AbbVie generally will be liable for all other taxes attributable to its business. Earnings from discontinued operations in the first six months of 2015 and 2014 reflect the recognition of $17 million and $42 million, respectively, of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation. The following table summarizes the components of discontinued operations: Three Months Ended June 30 Six Months Ended June 30 (in millions) 2015 2014 2015 2014 Net Sales Developed markets generics pharmaceuticals and animal health businesses $ — $ $ $ AbbVie — — — — Total $ — $ $ $ Earnings (Loss) Before Tax Developed markets generics pharmaceuticals and animal health businesses $ ) $ $ $ AbbVie — — — — Total $ ) $ $ $ Income Tax Expense (Benefit) Developed markets generics pharmaceuticals and animal health businesses $ — $ $ $ AbbVie ) ) ) ) Total $ ) $ $ ) $ ) Net Earnings Developed markets generics pharmaceuticals and animal health businesses $ ) $ $ $ AbbVie Total $ ) $ $ $ The sale of the developed markets branded generics pharmaceuticals and animal health businesses in the first six months of 2015 resulted in the recognition of a pretax gain of $2.820 billion, tax expense of $1.084 billion and an after tax gain of $1.736 billion. The assets of the operations held for disposition and the liabilities to be assumed in the disposition related to the businesses noted above, as well as the AbbVie assets and liabilities are classified as held for disposition in the Condensed Consolidated Balance Sheet as of June 30, 2015 and December 31, 2014. The cash flows associated with the developed markets branded generics pharmaceuticals and animal health businesses are included in Abbott’s Condensed Consolidated Statement of Cash Flows up to the date of disposition. The following is a summary of the assets and liabilities held for disposition: (in millions) June 30, 2015 December 31, 2014 Trade receivables, net $ $ Total inventories Prepaid expenses, deferred income taxes, and other receivables Current assets held for disposition Net property and equipment Intangible assets, net of amortization — Goodwill — Deferred income taxes and other assets — Non-current assets held for disposition Total assets held for disposition $ $ Trade accounts payable $ $ Salaries, wages, commissions and other accrued liabilities Current liabilities held for disposition Post-employment obligations, deferred income taxes and other long-term liabilities — Total liabilities held for disposition $ $

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Jun. 30, 2015
Supplemental Financial Information
Supplemental Financial Information	Note 3 — 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. Earnings from Continuing Operations allocated to common shares for the three months ended June 30, 2015 and 2014 were $783 million and $423 million, respectively and for the six months ended June 30, 2015 and 2014 were $1,309 million and $646 million, respectively. Net earnings allocated to common shares for the three months ended June 30, 2015 and 2014 were $780 million and $463 million, respectively, and for the six months ended June 30, 2015 and 2014 were $3,061 million and $837 million, respectively. Other (income) expense, net in the second quarter of 2015 primarily relates to a $207 million gain on the sale of a portion of Abbott’s position in Mylan stock and $79 million of income resulting from a decrease in the fair value of contingent consideration related to a business acquisition. In the second quarter of 2015, Abbott sold 40.3 million of the 110 million ordinary shares of Mylan N.V. received in the sale of the developed markets branded generics pharmaceuticals business to Mylan. Abbott received $2.29 billion in net proceeds from the sale of these shares. As a result of this sale, Abbott’s ownership interest in Mylan N.V. decreased from approximately 22% to approximately 14%. Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first six months of 2015 and 2014 includes the effects of contributions to defined benefit plans of $547 million and $330 million, respectively, and to the post-employment medical and dental benefit plans of $24 million and $40 million in the six month periods of 2015 and 2014, respectively. The first six months of 2015 also includes the non-cash impact of approximately $1.1 billion of tax expense associated with the gain on the sale of businesses. The first six months of 2014 includes approximately $70 million of tax benefits, net of cash refunded by taxing authorities, resulting from the resolution of various tax positions pertaining to prior years. The components of short-term and long-term investments as of June 30, 2015 and December 31, 2014 are as follows: Short-term Investments June 30, December 31, (in millions) 2015 2014 Equity securities $ $ — Other, primarily bank time deposits Total $ $ Long-term Investments (in millions) Equity securities $ $ Other Total $ $ The short-term investments in equity securities reflect the market value as of June 30, 2015 of 69.7 million of ordinary shares of Mylan N.V. In March 2015, Abbott issued $2.5 billion of long-term debt consisting of $750 million of 2.00% Senior Notes due March 15, 2020; $750 million of 2.55% Senior Notes due March 15, 2022; and $1.0 billion of 2.95% Senior Notes due March 15, 2025. Abbott also entered into interest rate swap contracts totaling $2.5 billion. These contracts have the effect of changing Abbott’s obligation from a fixed interest rate to a variable interest rate obligation.

Other Comprehensive Income

Other Comprehensive Income	6 Months Ended
	Jun. 30, 2015
Other Comprehensive Income
Other Comprehensive Income	Note 4 — 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 June 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains on Marketable Equity Securities Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Balance at March 31 $ ) $ ) $ ) $ ) $ $ $ $ Other comprehensive income (loss) before reclassifications ) — — — Amounts reclassified from accumulated other comprehensive income — — ) ) ) ) Net current period comprehensive income ) ) ) ) Balance at June 30 $ ) $ ) $ ) $ ) $ $ $ $ ) Six Months Ended June 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains on Marketable Equity Securities Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Balance at December 31, 2014 and 2013 $ ) $ ) $ ) $ ) $ $ $ $ Impact of business dispositions — — — — — — Other comprehensive income (loss) before reclassifications ) — — ) Amounts reclassified from accumulated other comprehensive income — — ) ) ) ) Net current period comprehensive income ) ) ) Balance at June 30 $ ) $ ) $ ) $ ) $ $ $ $ ) Reclassified amounts for foreign currency translation are recorded in the Condensed Consolidated Statement of Earnings as Net foreign exchange loss (gain); gains on marketable equity securities as Other (income) expense, net and cash flow hedges as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit plan costs; see Note 11 for additional details.

Business Acquisitions

Business Acquisitions	6 Months Ended
	Jun. 30, 2015
Business Acquisitions
Business Acquisitions	Note 5 — Business Acquisitions In September 2014, Abbott completed the acquisition of the controlling interest in CFR Pharmaceuticals S.A. (CFR) for approximately $2.9 billion in cash ($2.8 billion net of CFR cash on hand at closing). Including the assumption of approximately $570 million of debt, the total cost of the acquisition was $3.4 billion. The acquisition of CFR more than doubles Abbott’s branded generics pharmaceutical presence in Latin America and further expands its presence in emerging markets. CFR’s financial results are included in Abbott’s financial statements beginning on September 26, 2014, the date that Abbott acquired control of this business. Abbott owns 99.9% of the outstanding ordinary shares of CFR. The fair value of the non-controlling interest at the acquisition date was approximately $3 million. The acquisition was funded with cash and cash equivalents and short-term investments. The preliminary allocation of the fair value of the acquisition is shown in the table below. The allocation of the fair value of the acquisition will be finalized when the valuation is completed. (in billions) Acquired intangible assets, non-deductible $ Goodwill, non-deductible Acquired net tangible assets Deferred income taxes recorded at acquisition ) Total preliminary allocation of fair value $ Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 12 to 16 years (average of 15 years). The goodwill is primarily attributable to intangible assets that do not qualify for separate recognition. The goodwill is identifiable to the Established Pharmaceutical Products segment. The acquired tangible assets consist primarily of cash and cash equivalents of approximately $94 million, trade accounts receivable of approximately $179 million, inventory of approximately $169 million, other current assets of approximately $51 million, property and equipment of approximately $209 million, and other long-term assets of approximately $138 million. Assumed liabilities consist of borrowings of approximately $570 million, trade accounts payable and other current liabilities of approximately $200 million and other noncurrent liabilities of approximately $15 million. Annualized net sales for CFR Pharmaceuticals are expected to total approximately $750 million at current exchange rates. Had the acquisition of CFR Pharmaceuticals taken place on January 1, 2013, the consolidated net sales and earnings of Abbott would not have been significantly different from the reported amounts. In December 2014, Abbott acquired control of Veropharm, a leading Russian pharmaceutical company for approximately $315 million, excluding assumed debt, plus a subsequent $5 million payment related to a working capital adjustment. Through this acquisition, Abbott establishes a manufacturing footprint in Russia and obtains a portfolio of medicines that is well aligned with Abbott’s current pharmaceutical therapeutic areas of focus. Abbott acquired control of Veropharm through its purchase of Limited Liability Company Garden Hills, the holding company that owns approximately 98 percent of Veropharm. Including the assumption of approximately $90 million of debt and a minority interest with a fair value of $5 million, the total value of the acquired business was approximately $415 million. The preliminary allocation of the fair value of the acquisition resulted in definite-lived non-deductible intangible assets of approximately $100 million, non-deductible goodwill of approximately $115 million, and net deferred tax liabilities of approximately $25 million. Non-deductible goodwill is identifiable with the Established Pharmaceutical Products segment. Additionally, Abbott acquired property, plant, and equipment of approximately $165 million, accounts receivable of approximately $45 million, inventory of approximately $25 million, and net other liabilities of approximately $10 million. Acquired intangible assets consist of developed technology and are being amortized over 16 years. In 2015, Abbott acquired the remaining shares of Veropharm, increasing its ownership to 100 percent. In December 2014, Abbott completed the acquisition of Topera, Inc. for approximately $250 million in cash, plus additional payments up to $300 million to be made upon completion of certain regulatory and sales milestones. The acquisition of Topera provides Abbott a foundational entry in the electrophysiology market. The final allocation of the fair value of the acquisition resulted in non-deductible acquired in-process research and development of approximately $20 million, which is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation, non-deductible definite-lived intangibles assets of approximately $325 million, non-deductible goodwill of approximately $175 million, net deferred tax liabilities of approximately $105 million, and contingent consideration of approximately $165 million. The fair value of the contingent consideration was determined based on an independent appraisal. Acquired intangible assets consist of developed technology and trademarks, and are being amortized over 16 years. The preliminary allocations of fair value of the acquisitions of CFR Pharmaceuticals and Veropharm will be finalized when valuations are completed. Had the aggregate of the above acquisitions taken place on January 1, 2013, consolidated net sales and earnings would not have been significantly different from reported amounts.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 — Goodwill and Intangible Assets The total amount of goodwill reported was $9.896 billion at June 30, 2015 and $10.067 billion at December 31, 2014, which excluded goodwill classified as held for disposition. As part of the disposal of the developed markets branded generics pharmaceuticals business in the first six months of 2015, $894 million of goodwill was included as part of the net assets sold. In the first six months of 2015, foreign currency translation adjustments decreased goodwill by approximately $235 million, while purchase price allocation adjustments associated with recent acquisitions increased goodwill by approximately $67 million. The amount of goodwill related to reportable segments at June 30, 2015 was $3.3 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $443 million for the Diagnostic Products segment, and $2.9 billion for the Vascular Products segment. There was no reduction of goodwill relating to impairments. The gross amount of amortizable intangible assets, primarily product rights and technology was $10.8 billion as of June 30, 2015 and December 31, 2014, and accumulated amortization was $5.1 billion as of June 30, 2015 and $4.9 billion as of December 31, 2014. The December 31, 2014 amounts exclude the intangibles that were classified as held for disposition. $738 million of intangibles were included in the net assets transferred as part of the disposal of the developed markets branded generics pharmaceuticals business in the first six months of 2015. Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $134 million at June 30, 2015 and December 31, 2014. Abbott’s estimated annual amortization expense for intangible assets is approximately $680 million in 2015, $660 million in 2016, $650 million in 2017, $570 million in 2018 and $530 million in 2019. Amortizable intangible assets are amortized over 2 to 20 years (weighted average 12 years).

Restructuring Plans

Restructuring Plans	6 Months Ended
	Jun. 30, 2015
Restructuring Plans
Restructuring Plans	Note 7 — Restructuring Plans In 2014, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including nutritional and established pharmaceuticals businesses. In the first six months of 2015, charges of approximately $19 million were recognized, of which approximately $1 million is recognized in Cost of products sold and approximately $18 million is recognized in Selling, general and administrative expense. Additional charges of approximately $25 million were recorded primarily for accelerated depreciation. The following summarizes the activity for the first six months of 2015 related to these restructuring actions and the status of the related accrual as of June 30, 2015: (in millions) Accrued balance at December 31, 2014 $ Restructuring charges recorded in 2015 Payments and other adjustments ) Accrued balance at June 30, 2015 $ From 2013 to 2015, Abbott management approved various plans to reduce costs and improve efficiencies across various functional areas. In the first six months of 2015, charges of approximately $25 million were recognized, of which approximately $9 million is recorded in Cost of products sold, approximately $2 million is recorded in Research and Development, and approximately $14 million is recorded in Selling, general and administrative expense. In 2013, Abbott management also approved plans to streamline certain manufacturing operations in order to reduce costs and improve efficiencies in Abbott’s established pharmaceuticals business. In 2012, Abbott management approved plans to streamline various commercial operations in order to reduce costs and improve efficiencies in Abbott’s core diagnostics, established pharmaceuticals and nutritionals businesses. The following summarizes the activity for the first six months of 2015 related to these restructuring actions and the status of the related accrual as of June 30, 2015: (in millions) Accrued balance at December 31, 2014 $ Restructuring charges recorded in 2015 Payments and other adjustments ) Accrued balance at June 30, 2015 $ In 2013 and prior years, Abbott management approved plans to realign its vascular manufacturing operations and core diagnostics business in order to reduce costs. The following summarizes the activity for the first six months of 2015 related to these restructuring actions and the status of the related accrual as of June 30, 2015: (in millions) Accrued balance at December 31, 2014 $ Payments and other adjustments ) Accrued balance at June 30, 2015 $

Incentive Stock Programs

Incentive Stock Programs	6 Months Ended
	Jun. 30, 2015
Incentive Stock Programs
Incentive Stock Programs	Note 8 — Incentive Stock Programs In the first six months of 2015, Abbott granted 5,518,363 stock options, 660,787 restricted stock awards and 5,774,560 restricted stock units under its incentive stock programs. At June 30, 2015, approximately 86 million shares were reserved for future grants. Information regarding the number of stock options outstanding and exercisable at June 30, 2015 is as follows: Outstanding Exercisable Number of shares Weighted average remaining life ( years ) Weighted average exercise price $ $ Aggregate intrinsic value ( in millions ) $ $ The total unrecognized share-based compensation cost at June 30, 2015 amounted to approximately $249 million which is expected to be recognized over the next three years.

Financial Instruments, Derivati

Financial Instruments, Derivatives and Fair Value Measures	6 Months Ended
	Jun. 30, 2015
Financial Instruments, Derivatives and Fair Value Measures
Financial Instruments, Derivatives and Fair Value Measures	Note 9 — Financial Instruments, Derivatives and Fair Value Measures Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with notional amounts totaling $1.6 billion at June 30, 2015 and $1.5 billion at December 31, 2014 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 June 30, 2015 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months. The amount of hedge ineffectiveness was not significant in 2015 and 2014. 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 June 30, 2015 and December 31, 2014, Abbott held $14.1 billion 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 $431 million and approximately $445 million as of June 30, 2015 and December 31, 2014, respectively. Accordingly, changes in the reported 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 hedge contracts totaling approximately $4.0 billion at June 30, 2015 and $1.5 billion at December 31, 2014 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. No hedge ineffectiveness was recorded in income in 2015 or 2014 for these hedges. The following table summarizes the amounts and location of certain derivative financial instruments as of June 30, 2015 and December 31, 2014: Fair Value - Assets Fair Value - Liabilities (in millions) June 30, 2015 Dec. 31, 2014 Balance Sheet Caption June 30, 2015 Dec. 31, 2014 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ $ Deferred income taxes and other assets $ $ — Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments Prepaid expenses, deferred income taxes, and other receivables — Other accrued liabilities Others not designated as hedges Prepaid expenses, deferred income taxes, and other receivables Other accrued liabilities Debt designated as a hedge of net investment in a foreign subsidiary — — n/a Short-term borrowings $ $ $ $ The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary 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 months and six months ended June 30, 2015 and 2014. The amount of hedge ineffectiveness was not significant in 2015 and 2014 for these hedges. Gain (loss) Recognized in Other Comprehensive Income (loss) Income (expense) and Gain (loss) Reclassified into Income Three Months Ended June 30 Six Months Ended June 30 Three Months Ended June 30 Six Months Ended June 30 Income Statement (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Caption Foreign currency forward exchange contracts designated as cash flow hedges $ $ ) $ $ ) $ $ $ $ Cost of products sold Debt designated as a hedge of net investment in a foreign subsidiary ) ) ) ) n/a n/a n/a n/a n/a Interest rate swaps designated as fair value hedges n/a n/a n/a n/a ) ) Interest expense Foreign currency forward exchange contracts not designated as hedges n/a n/a n/a n/a ) ) ) ) Net foreign exchange loss (gain) The interest rate swaps 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 hedged debt is marked to market, offsetting the effect of marking the interest rate swaps to market. The carrying values and fair values of certain financial instruments as of June 30, 2015 and December 31, 2014 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 nonperformance by these counterparties. June 30, 2015 December 31, 2014 (in millions) Carrying Value Fair Value Carrying Value Fair Value Investment Securities: Equity securities $ $ $ $ Other Total Long-term Debt ) ) ) ) Foreign Currency Forward Exchange Contracts: Receivable position (Payable) position ) ) ) ) Interest Rate Hedge Contracts: Receivable position Payable position ) ) — — The fair value of the debt was determined based on significant other observable inputs, including current interest rates. 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 (in millions) Outstanding Balances Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2015: Equity securities $ $ $ $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Foreign currency forward exchange contracts — — Interest rate swap derivative financial instruments — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $ December 31, 2014: Equity securities $ $ $ — $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Foreign currency forward exchange contracts — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $ Equity securities are principally comprised of Mylan N.V. ordinary shares. The fair value of the Mylan equity securities was determined based on the value of the publicly-traded ordinary shares adjusted for the restrictions related to the resale of these shares. 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. 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 the contingent consideration was determined based on an independent appraisal adjusted for the time value of money and other changes in fair value primarily resulting from changes in regulatory timelines.

Litigation and Environmental Ma

Litigation and Environmental Matters	6 Months Ended
	Jun. 30, 2015
Litigation and Environmental Matters
Litigation and Environmental Matters	Note 10 — Litigation and Environmental Matters Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $15 million. 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 million to $55 million. The recorded accrual balance at June 30, 2015 for these proceedings and exposures was approximately $50 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.

Post-Employment Benefits

Post-Employment Benefits	6 Months Ended
	Jun. 30, 2015
Post-Employment Benefits
Post-Employment Benefits	Note 11 — Post-Employment Benefits Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net cost recognized in continuing operations for the three months and six months ended June 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 ( in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost — benefits earned during the period $ $ $ $ $ $ $ $ Interest cost on projected benefit obligations Expected return on plan assets ) ) ) ) ) ) ) ) Net amortization of: Actuarial loss, net Prior service cost (credit) — — — ) ) ) ) Total Cost ) Less: Discontinued operations — — — — — Net cost - continuing operations $ $ $ $ $ ) $ $ $ Abbott funds its domestic defined benefit plans according to IRS funding limitations. International pension plans are funded according to similar regulations. In the first six months of 2015 and 2014, $547 million and $330 million, respectively, were contributed to defined benefit plans and $24 million and $40 million were contributed to the post-employment medical and dental benefit plans in the first six months of 2015 and 2014, respectively.

Taxes on Earnings

Taxes on Earnings	6 Months Ended
	Jun. 30, 2015
Taxes on Earnings
Taxes on Earnings	Note 12 — Taxes on Earnings Taxes on earnings from continuing operations reflect the estimated annual effective rates and include charges for interest and penalties. In the first six months of 2015, taxes on earnings from continuing operations include a tax cost of $69 million related to the disposal of shares of Mylan stock. Taxes on earnings from continuing operations were not affected by any adjustments as the result of the resolution of various tax positions pertaining to prior years. Tax expense related to discontinued operations includes $665 million of tax expense on certain current-year funds earned outside the U. S. that were not designated as permanently reinvested overseas. Earnings from discontinued operations, net of tax, in the first six months of 2015 also reflects the recognition of $17 million of net tax benefits primarily as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $35 million. Taxes on earnings from continuing operations, in the first six months of 2014, reflect a tax cost of $7 million, primarily as a result of the resolution of various tax positions related to the branded generics pharmaceutical business. Earnings from discontinued operations, net of tax, in the first six months of 2014 reflects the recognition of $109 million of net tax benefits primarily as a result of the resolution of various tax positions related to the developed markets branded generics pharmaceuticals business , as well as AbbVie’s operations, for years prior to the separation. The conclusion of these tax matters decreased the gross amount of unrecognized tax benefits by approximately $134 million. 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 by $525 million to $635 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters. In the U.S., Abbott’s federal income tax returns through 2011 are settled except for two issues.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information
Segment Information	Note 13 — Segment Information Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world. Abbott’s reportable segments are as follows: Established Pharmaceutical Products — International sales of a broad line of branded generic pharmaceutical products. Nutritional Products — Worldwide sales of a broad line of adult and pediatric nutritional products. Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. For segment reporting purposes, the Core Laboratories Diagnostics, Molecular Diagnostics, Point of Care and Ibis diagnostic divisions are aggregated and reported as the Diagnostic Products segment. Vascular Products — Worldwide sales of coronary, endovascular, structural heart, vessel closure and other medical device products. For segment reporting purposes, the Vascular and Electrophysiology Products divisions are aggregated and reported as the Vascular Products segment. Non-reportable segments include the Diabetes Care and Medical Optics segments. On February 27, 2015, Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan N.V. This business was previously included in the Established Pharmaceutical Products segment for the first six months of 2014; therefore, the 2014 segment information below has been adjusted to reflect the classification of the developed markets branded generics pharmaceuticals business as part of discontinued operations in the Condensed Consolidated Statement of Earnings. 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. 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. Net Sales to External Customers Operating Earnings Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Established Pharmaceutical Products $ $ $ $ $ $ $ $ Nutritional Products Diagnostic Products Vascular Products Total Reportable Segments Other Net Sales $ $ $ $ Corporate functions and benefit plans costs ) ) ) ) Non-reportable segments Net interest expense ) ) ) ) Share-based compensation (a) ) ) ) ) Amortization of intangible assets ) ) ) ) Other, net (b) ) ) Consolidated Earnings from Continuing Operations Before Taxes $ $ $ $ (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 in 2015 includes a gain on the sale of a portion of Abbott’s position in Mylan stock and a decrease in the fair value of contingent consideration related to a business acquisition, which was partially offset by charges associated with cost reduction initiatives.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations.
Components of discontinued operations	Three Months Ended June 30 Six Months Ended June 30 (in millions) 2015 2014 2015 2014 Net Sales Developed markets generics pharmaceuticals and animal health businesses $ — $ $ $ AbbVie — — — — Total $ — $ $ $ Earnings (Loss) Before Tax Developed markets generics pharmaceuticals and animal health businesses $ ) $ $ $ AbbVie — — — — Total $ ) $ $ $ Income Tax Expense (Benefit) Developed markets generics pharmaceuticals and animal health businesses $ — $ $ $ AbbVie ) ) ) ) Total $ ) $ $ ) $ ) Net Earnings Developed markets generics pharmaceuticals and animal health businesses $ ) $ $ $ AbbVie Total $ ) $ $ $
Summary of the assets and liabilities held for sale	(in millions) June 30, 2015 December 31, 2014 Trade receivables, net $ $ Total inventories Prepaid expenses, deferred income taxes, and other receivables Current assets held for disposition Net property and equipment Intangible assets, net of amortization — Goodwill — Deferred income taxes and other assets — Non-current assets held for disposition Total assets held for disposition $ $ Trade accounts payable $ $ Salaries, wages, commissions and other accrued liabilities Current liabilities held for disposition Post-employment obligations, deferred income taxes and other long-term liabilities — Total liabilities held for disposition $ $

Supplemental Financial Inform22

Supplemental Financial Information (Tables)	6 Months Ended
	Jun. 30, 2015
Supplemental Financial Information
Components of short-term and long-term investments	Short-term Investments June 30, December 31, (in millions) 2015 2014 Equity securities $ $ — Other, primarily bank time deposits Total $ $ Long-term Investments (in millions) Equity securities $ $ Other Total $ $

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Other Comprehensive Income
Schedule of the changes in accumulated other comprehensive income (loss), net of income taxes	Three Months Ended June 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains on Marketable Equity Securities Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Balance at March 31 $ ) $ ) $ ) $ ) $ $ $ $ Other comprehensive income (loss) before reclassifications ) — — — Amounts reclassified from accumulated other comprehensive income — — ) ) ) ) Net current period comprehensive income ) ) ) ) Balance at June 30 $ ) $ ) $ ) $ ) $ $ $ $ ) Six Months Ended June 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains on Marketable Equity Securities Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Balance at December 31, 2014 and 2013 $ ) $ ) $ ) $ ) $ $ $ $ Impact of business dispositions — — — — — — Other comprehensive income (loss) before reclassifications ) — — ) Amounts reclassified from accumulated other comprehensive income — — ) ) ) ) Net current period comprehensive income ) ) ) Balance at June 30 $ ) $ ) $ ) $ ) $ $ $ $ )

Business Acquisitions (Tables)

Business Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2015
Business Acquisitions
Schedule of the allocation of the fair value of the acquisition	(in billions) Acquired intangible assets, non-deductible $ Goodwill, non-deductible Acquired net tangible assets Deferred income taxes recorded at acquisition ) Total preliminary allocation of fair value $

Restructuring Plans (Tables)

Restructuring Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Restructuring Plan 2014
Restructuring costs
Schedule of restructuring activity	(in millions) Accrued balance at December 31, 2014 $ Restructuring charges recorded in 2015 Payments and other adjustments ) Accrued balance at June 30, 2015 $
Restructuring Plan 2015 and 2013
Restructuring costs
Schedule of restructuring activity	(in millions) Accrued balance at December 31, 2014 $ Restructuring charges recorded in 2015 Payments and other adjustments ) Accrued balance at June 30, 2015 $
Restructuring Plan 2013 and Prior Years
Restructuring costs
Schedule of restructuring activity	(in millions) Accrued balance at December 31, 2014 $ Payments and other adjustments ) Accrued balance at June 30, 2015 $

Incentive Stock Programs (Table

Incentive Stock Programs (Tables)	6 Months Ended
	Jun. 30, 2015
Incentive Stock Programs
Stock options outstanding and exercisable	Outstanding Exercisable Number of shares Weighted average remaining life ( years ) Weighted average exercise price $ $ Aggregate intrinsic value ( in millions ) $ $

Financial Instruments, Deriva27

Financial Instruments, Derivatives and Fair Value Measures (Tables)	6 Months Ended
	Jun. 30, 2015
Financial Instruments, Derivatives and Fair Value Measures
Summary of the amounts and location of certain derivative financial instruments	Fair Value - Assets Fair Value - Liabilities (in millions) June 30, 2015 Dec. 31, 2014 Balance Sheet Caption June 30, 2015 Dec. 31, 2014 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ $ Deferred income taxes and other assets $ $ — Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments Prepaid expenses, deferred income taxes, and other receivables — Other accrued liabilities Others not designated as hedges Prepaid expenses, deferred income taxes, and other receivables Other accrued liabilities Debt designated as a hedge of net investment in a foreign subsidiary — — n/a Short-term borrowings $ $ $ $
Schedule of derivatives gain (loss) in OCI and earnings	Gain (loss) Recognized in Other Comprehensive Income (loss) Income (expense) and Gain (loss) Reclassified into Income Three Months Ended June 30 Six Months Ended June 30 Three Months Ended June 30 Six Months Ended June 30 Income Statement (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Caption Foreign currency forward exchange contracts designated as cash flow hedges $ $ ) $ $ ) $ $ $ $ Cost of products sold Debt designated as a hedge of net investment in a foreign subsidiary ) ) ) ) n/a n/a n/a n/a n/a Interest rate swaps designated as fair value hedges n/a n/a n/a n/a ) ) Interest expense Foreign currency forward exchange contracts not designated as hedges n/a n/a n/a n/a ) ) ) ) Net foreign exchange loss (gain)
Schedule of carrying values and fair values of certain financial instruments	June 30, 2015 December 31, 2014 (in millions) Carrying Value Fair Value Carrying Value Fair Value Investment Securities: Equity securities $ $ $ $ Other Total Long-term Debt ) ) ) ) Foreign Currency Forward Exchange Contracts: Receivable position (Payable) position ) ) ) ) Interest Rate Hedge Contracts: Receivable position Payable position ) ) — —
Schedule of assets and liabilities measured at fair value on a recurring basis	Basis of Fair Value Measurement (in millions) Outstanding Balances Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2015: Equity securities $ $ $ $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Foreign currency forward exchange contracts — — Interest rate swap derivative financial instruments — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $ December 31, 2014: Equity securities $ $ $ — $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Foreign currency forward exchange contracts — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $

Post-Employment Benefits (Table

Post-Employment Benefits (Tables)	6 Months Ended
	Jun. 30, 2015
Post-Employment Benefits
Net cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans	Defined Benefit Plans Medical and Dental Plans Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 ( in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost — benefits earned during the period $ $ $ $ $ $ $ $ Interest cost on projected benefit obligations Expected return on plan assets ) ) ) ) ) ) ) ) Net amortization of: Actuarial loss, net Prior service cost (credit) — — — ) ) ) ) Total Cost ) Less: Discontinued operations — — — — — Net cost - continuing operations $ $ $ $ $ ) $ $ $

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Information
Schedule of segment and geographic area information	Net Sales to External Customers Operating Earnings Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Established Pharmaceutical Products $ $ $ $ $ $ $ $ Nutritional Products Diagnostic Products Vascular Products Total Reportable Segments Other Net Sales $ $ $ $ Corporate functions and benefit plans costs ) ) ) ) Non-reportable segments Net interest expense ) ) ) ) Share-based compensation (a) ) ) ) ) Amortization of intangible assets ) ) ) ) Other, net (b) ) ) Consolidated Earnings from Continuing Operations Before Taxes $ $ $ $ (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 in 2015 includes a gain on the sale of a portion of Abbott’s position in Mylan stock and a decrease in the fair value of contingent consideration related to a business acquisition, which was partially offset by charges associated with cost reduction initiatives.

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) shares in Millions, $ in Millions	Feb. 27, 2015	Feb. 27, 2015	Feb. 10, 2015	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Proceeds from the disposition of business							$ 230
Gain on sale of Mylan shares					$ 207		207
Proceeds from the sale of Mylan shares					2,290		2,290
After Tax Gain					(1)		1,736
Pretax gain on sale of discontinued operations							2,820
Trade receivables, net					39		39		$ 498
Total inventories					23		23		254
Prepaid expenses, deferred income taxes, and other receivables					31		31		140
Current assets held for disposition					93		93		892
Net property and equipment					2		2		125
Earnings from discontinued operations, net tax benefits					(2)	$ 41	1,761	$ 192
Intangible assets, net of amortization									804
Goodwill									950
Deferred income taxes and other assets									55
Non-current assets held for disposition					2		2		1,934
Total assets held for disposition					95		95		2,826
Trade accounts payable					279		279		423
Salaries, wages, commissions and other accrued liabilities					13		13		257
Current liabilities held for disposition					292		292		680
Post-employment obligations, deferred income taxes and other long-term liabilities									108
Non-current liabilities held for disposition									108
Total liabilities held for disposition					292		$ 292		$ 788
Developed markets branded generics pharmaceuticals business
Amount of shares received for sale of generics pharmaceuticals business to Mylan Inc	$ 5,770	$ 5,770
Period of notice require to terminate manufacturing supply of products							2 years
After Tax Gain		$ 1,600
Developed markets branded generics pharmaceuticals business | Minimum
Period for providing manufacturing supply of products							3 years
Developed markets branded generics pharmaceuticals business | Maximum
Period of transition services							2 years
Period for providing manufacturing supply of products							10 years
Animal Health Business
Proceeds from the disposition of business			$ 230
After Tax Gain			$ 130
AbbVie | Proprietary Pharmaceuticals Business Assets and Liabilities Held for Disposal
Prepaid assets					$ 210		$ 210
AbbVie | Discontinued operations
Earnings from discontinued operations, net tax benefits							$ 17	$ 42
Mylan
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc				110
Proceeds from the disposition of business				$ 40.3
Mylan | Developed markets branded generics pharmaceuticals business
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc	110						110
Proceeds from the disposition of business							$ 40.3
Gain on sale of Mylan shares							$ 207
Mylan NV | Developed markets branded generics pharmaceuticals business
Percentage of shares received for sale of generics pharmaceuticals business to Mylan Inc	22.00%	22.00%

Discontinued Operations (Deta31

Discontinued Operations (Details 2) - USD ($) $ in Millions	Feb. 27, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales			$ 494	$ 256	$ 983
Pretax income		$ (5)	79	20	161
Income Tax Expense (Benefit)		(4)	38	(5)	(31)
Net income		(1)	41	25	192
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
Pretax gain on sale of discontinued operations				2,820
Non-cash impact of tax expense associated with the gain on the sale of businesses				1,100
After Tax Gain		(1)		1,736
Developed markets branded generics pharmaceuticals business
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
After Tax Gain	$ 1,600
Developed markets generics pharmaceuticals and animal health business
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales			494	256	983
Pretax income		(5)	79	20	161
Income Tax Expense (Benefit)			44	12	11
Net income		(5)	35	8	150
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
Pretax gain on sale of discontinued operations				2,820
Non-cash impact of tax expense associated with the gain on the sale of businesses				1,084
After Tax Gain				1,736
AbbVie
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income Tax Expense (Benefit)		(4)	(6)	(17)	(42)
Net income		$ 4	$ 6	$ 17	$ 42

Supplemental Financial Inform32

Supplemental Financial Information (Details) - USD ($) shares in Millions, $ in Millions	Feb. 27, 2015	Apr. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Supplemental Financial Information
Earnings from continuing operations allocated to common shares			$ 783		$ 423	$ 1,309	$ 646
Net earnings allocated to common shares			780		$ 463	3,061	837
Noncash impact of tax benefits from resolution of prior year tax positions included in other, net use of cash in Net cash from operating activities							70
Component of long-term investment
Short-term Investments, Total			7,129			7,129		$ 397
Investments			243			243		229
Gain on sale of Mylan shares			$ 207			207
Pretax gain on sale of discontinued operations						2,820
Decrease in fair value of contingent consideration						79
Proceeds from Divestiture of Businesses						230
Debt and Lines of Credit
Long-term debt issued				$ 2,500
Post-employment Obligations and Other Long-term Liabilities:
Non-cash impact of tax expense associated with the gain on the sale of businesses						$ 1,100
Mylan NV
Component of long-term investment
Number of shares owned			69.7			69.7
Percentage of shares held before sale of generics pharmaceuticals business to Mylan Inc						22.00%
Ownership interest (as a percent)			14.00%			14.00%
Mylan
Component of long-term investment
Proceeds from Divestiture of Businesses		$ 40.3
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc		110
Interest rate swaps
Debt and Lines of Credit
Notional amount of contracts entered during the period				2,500
2.00% Senior Notes Due March 15, 2020
Debt and Lines of Credit
Long-term debt issued				$ 750
Interest rate percentage				2.00%
2.55% Senior Notes Due March 15, 2022
Debt and Lines of Credit
Long-term debt issued				$ 750
Interest rate percentage				2.55%
2.95% Senior Notes Due March 15, 2025
Debt and Lines of Credit
Long-term debt issued				$ 1,000
Interest rate percentage				2.95%
Defined Benefit Plans
Post-employment Obligations and Other Long-term Liabilities:
Company contributions						$ 547	330
Medical and Dental Plans
Post-employment Obligations and Other Long-term Liabilities:
Company contributions						24	$ 40
Equity securities
Component of long-term investment
Short-term Investments, Total			$ 4,672			4,672
Investments			226			226		212
Other
Component of long-term investment
Investments			17			17		17
Other, Primarily Bank Time Deposits and Us Treasury Bills Member
Component of long-term investment
Short-term Investments, Total			$ 2,457			2,457		$ 397
Developed markets branded generics pharmaceuticals business | Mylan
Component of long-term investment
Gain on sale of Mylan shares						207
Proceeds from Divestiture of Businesses						$ 40.3
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc	110					110

Other Comprehensive Income (Det

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period			$ (5,053)
Balance at the end of the period	$ (5,004)		(5,004)
Cumulative Foreign Currency Translation Adjustments
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	(3,727)	$ (656)	(2,924)	$ (718)
Impact of business dispositions			108
Other comprehensive income (loss) before reclassifications	84	(19)	(827)	43
Net current period comprehensive income	84	(19)	(827)	43
Balance at the end of the period	(3,643)	(675)	(3,643)	(675)
Net Actuarial Losses and Prior Service Costs and Credits
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	(2,179)	(1,296)	(2,229)	(1,312)
Impact of business dispositions			19
Amounts reclassified from accumulated other comprehensive income	22	12	53	28
Net current period comprehensive income	22	12	53	28
Balance at the end of the period	(2,157)	(1,284)	(2,157)	(1,284)
Cumulative Unrealized Gains on Marketable Equity Securities
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	174	13	1	13
Other comprehensive income (loss) before reclassifications	660	1	833	2
Amounts reclassified from accumulated other comprehensive income	(138)	(5)	(138)	(6)
Net current period comprehensive income	522	(4)	695	(4)
Balance at the end of the period	696	9	696	9
Cumulative Gains on Derivative Instruments Designated as Cash Flow Hedges
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	125	5	99	5
Other comprehensive income (loss) before reclassifications	5		48	(1)
Amounts reclassified from accumulated other comprehensive income	(30)	(7)	(47)	(6)
Net current period comprehensive income	(25)	(7)	1	(7)
Balance at the end of the period	$ 100	$ (2)	$ 100	$ (2)

Business Acquisitions (Details)

Business Acquisitions (Details) - USD ($) $ in Millions	Sep. 26, 2014	Sep. 26, 2014	Dec. 31, 2014	Jun. 30, 2015	Dec. 31, 2014
Business acquisitions
Subsequent payment related to working capital adjustment			$ 5
Net cash paid, net of cash on hand of acquired company				$ 4
Minimum
Allocation of the fair value
Amortization period of acquired intangible assets				2 years
Maximum
Allocation of the fair value
Amortization period of acquired intangible assets				20 years
Average
Allocation of the fair value
Amortization period of acquired intangible assets				12 years
CFR Pharmaceuticals SA
Business acquisitions
Cash paid for business acquisition	$ 2,900
Net cash paid, net of cash on hand of acquired company	2,800
Assumed debt	570	$ 570
Acquisition cost	$ 3,400
Percentage of voting interest acquired	99.90%	99.90%
Fair value of the non-controlling interest at the acquisition date	$ 3	$ 3
Allocation of the fair value
Acquired intangible assets, non-deductible	1,800	1,800
Goodwill, non-deductible		1,600
Acquired net tangible assets	60	60
Deferred income taxes recorded at acquisition	(540)	(540)
Total preliminary allocation of fair value	2,920	2,920
Cash and cash equivalents	94	94
Trade accounts receivable	179	179
Inventory	169	169
Other current assets	51	51
Property and equipment	209	209
Other long-term assets	138	138
Borrowings	570	570
Trade accounts payable and other current liabilities	200	200
Other noncurrent liabilities	15	$ 15
Pro forma financial information
Annualized net sales expected	$ 750
CFR Pharmaceuticals SA | Minimum
Allocation of the fair value
Amortization period of acquired intangible assets	12 years
CFR Pharmaceuticals SA | Maximum
Allocation of the fair value
Amortization period of acquired intangible assets	16 years
CFR Pharmaceuticals SA | Average
Allocation of the fair value
Amortization period of acquired intangible assets	15 years
Veropharm
Business acquisitions
Cash paid for business acquisition			$ 315
Acquisition cost					$ 415
Percentage of voting interest acquired			98.00%	100.00%	98.00%
Fair value of the non-controlling interest at the acquisition date			$ 5		$ 5
Assumed debt			90		90
Allocation of the fair value
Goodwill, non-deductible			115
Deferred income taxes recorded at acquisition			$ (25)		(25)
Amortization period of acquired intangible assets			16 years
Trade accounts receivable			$ 45		45
Inventory			25		25
Property and equipment			165		165
Other current liabilities			10		10
Pro forma financial information
Non-deductible definite-lived intangible assets			100		100
Topera
Business acquisitions
Cash paid for business acquisition			250
Allocation of the fair value
Goodwill, non-deductible			175
Deferred income taxes recorded at acquisition			$ (105)		(105)
Amortization period of acquired intangible assets			16 years
Pro forma financial information
Additional payments upon completion of certain development, regulatory and sales milestones			$ 300		300
Non-deductible acquired in-process research and development			20		20
Non-deductible definite-lived intangible assets			325		325
Contingent consideration			$ 165		$ 165

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Goodwill and intangible assets information
Goodwill	$ 9,896	$ 10,067
Foreign currency translation adjustments decreased goodwill	235
Purchase price allocation adjustments associated with increased (decreased) goodwill	67
Amount of reduction of goodwill relating to impairments	0
Developed markets branded generics pharmaceuticals business
Goodwill and intangible assets information
Goodwill	894
Increased intangible assets	738
Established Pharmaceutical Products
Goodwill and intangible assets information
Goodwill	3,300
Nutritional Products
Goodwill and intangible assets information
Goodwill	286
Diagnostic Products
Goodwill and intangible assets information
Goodwill	443
Vascular Products
Goodwill and intangible assets information
Goodwill	$ 2,900

Goodwill and Intangible Asset36

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets
Gross amount of amortizable intangible assets	$ 10,800	$ 10,800
Accumulated amortization of intangible assets	5,100	4,900
Indefinite-lived intangible assets related to in-process research and development acquired in a business combination	134	$ 134
Estimated annual amortization expense, intangible assets, 2015	680
Estimated annual amortization expense, intangible assets, 2016	660
Estimated annual amortization expense, intangible assets, 2017	650
Estimated annual amortization expense, intangible assets, 2018	570
Estimated annual amortization expense, intangible assets, 2019	$ 530
Minimum
Goodwill and Intangible Assets
Average amortization period, intangible assets	2 years
Maximum
Goodwill and Intangible Assets
Average amortization period, intangible assets	20 years
Average
Goodwill and Intangible Assets
Average amortization period, intangible assets	12 years

Restructuring Plans (Details)

Restructuring Plans (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Research and development
Restructuring costs
Restructuring charges	$ 2
Restructuring Plan 2014
Restructuring costs
Restructuring charges	19
Additional charges for accelerated depreciation	25
Restructuring Plan 2014 | Cost of products sold
Restructuring costs
Restructuring charges	1
Restructuring Plan 2014 | Selling, general and administrative expense
Restructuring costs
Restructuring charges	18
Restructuring Plan 2015
Restructuring costs
Restructuring charges	25
Restructuring Plan 2015 | Cost of products sold
Restructuring costs
Restructuring charges	9
Restructuring Plan 2015 | Selling, general and administrative expense
Restructuring costs
Restructuring charges	$ 14

Restructuring Plans (Details 2)

Restructuring Plans (Details 2) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Restructuring Plan 2014
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	$ 118
Restructuring charges	19
Payments and other adjustments	(44)
Restructuring reserve, ending balance of the period	93
Additional charges for accelerated depreciation	25
Restructuring Plan 2014 | Cost of products sold
Restructuring reserve activity
Restructuring charges	1
Restructuring Plan 2014 | Selling, general and administrative expense
Restructuring reserve activity
Restructuring charges	18
Restructuring Plan 2015
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	135
Restructuring charges	25
Payments and other adjustments	(42)
Restructuring reserve, ending balance of the period	118
Restructuring Plan 2015 | Cost of products sold
Restructuring reserve activity
Restructuring charges	9
Restructuring Plan 2015 | Selling, general and administrative expense
Restructuring reserve activity
Restructuring charges	14
Restructuring Plan 2013 and Prior Years
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	39
Payments and other adjustments	(7)
Restructuring reserve, ending balance of the period	$ 32

Incentive Stock Programs (Detai

Incentive Stock Programs (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions	Total
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock programs, shares reserved for future grants	86,000,000
Total unrecognized compensation cost	$ 249
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	5,518,363
Stock options outstanding, number of shares	37,098,123
Exercisable options, number of shares	27,421,775
Stock options outstanding, weighted-average remaining life	4 years 10 months 24 days
Exercisable options, weighted-average remaining life	3 years 4 months 24 days
Stock options outstanding, weighted-average exercise price (in dollars per share)	$ 31.06
Exercisable options, weighted-average exercise price (in dollars per share)	$ 26.83
Aggregate intrinsic value of options outstanding	$ 669
Aggregate intrinsic value of options exercisable	$ 611
Total unrecognized compensation cost, recognition period	3 years
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	660,787
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	5,774,560

Financial Instruments, Deriva40

Financial Instruments, Derivatives and Fair Value Measures (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 460	$ 358
Fair Value - Liabilities	523	575
Designated as hedging instrument | Short-term borrowings | Net investment hedges
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	431	445
Designated as hedging instrument | Interest rate swaps | Fair value hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	4,000	1,500
Amount of hedge ineffectiveness recorded in income	0	0
Designated as hedging instrument | Interest rate swaps | Deferred income taxes and other assets | Fair value hedges
Derivative instruments, notional amount and fair value
Fair Value - Assets	103	101
Designated as hedging instrument | Interest rate swaps | Post-employment obligations, deferred income taxes and other long-term liabilities | Fair value hedges
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	17
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	$ 1,600	1,500
Minimum length of time over which accumulated gains and losses will be recognized in Cost of products sold	12 months
Maximum length of time over which accumulated gains and losses will be recognized in Cost of products sold	18 months
Designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 87	107
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	9
Not designated as hedging instrument | Foreign currency forward exchange contracts
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	14,100	14,100
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses, deferred income taxes, and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	270	150
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	$ 66	$ 130

Financial Instruments, Deriva41

Financial Instruments, Derivatives and Fair Value Measures (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net investment hedges | Designated as hedging instrument
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	$ (11)	$ (7)	$ (14)	$ (18)
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense
Gain (loss) on derivatives
Gain (loss) Reclassified into Income	(63)	8	(14)	19
Foreign currency forward exchange contracts | Not designated as hedging instrument | Net foreign exchange loss (gain)
Gain (loss) on derivatives
Gain (loss) Reclassified into Income	(85)	(11)	(101)	(25)
Foreign currency forward exchange contracts | Cash flow hedges | Designated as hedging instrument | Cost of products sold
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	5	(3)	48	(1)
Gain (loss) Reclassified into Income	$ 30	$ 2	$ 47	$ 5

Financial Instruments, Deriva42

Financial Instruments, Derivatives and Fair Value Measures (Details 3) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair value, asset and liability measures
Investments Securities	$ 243	$ 229
Foreign currency forward exchange contracts, receivable position	460	358
Foreign currency forward exchange contracts, (payable) position	(523)	(575)
Equity securities
Fair value, asset and liability measures
Investments Securities	226	212
Carrying value
Fair value, asset and liability measures
Total long-term debt	(5,894)	(3,463)
Foreign currency forward exchange contracts, receivable position	357	263
Foreign currency forward exchange contracts, (payable) position	(75)	(135)
Interest rate hedge contracts, receivable position	103	101
Interest rate hedge contract, (payable) position	(17)
Carrying value | Equity securities
Fair value, asset and liability measures
Investments Securities	4,898	212
Carrying value | Other.
Fair value, asset and liability measures
Investments Securities	17	17
Fair value
Fair value, asset and liability measures
Total long-term debt	(6,323)	(4,113)
Foreign currency forward exchange contracts, receivable position	357	263
Foreign currency forward exchange contracts, (payable) position	(75)	(135)
Interest rate hedge contracts, receivable position	103	101
Interest rate hedge contract, (payable) position	(17)
Fair value | Equity securities
Fair value, asset and liability measures
Investments Securities	4,898	212
Fair value | Other.
Fair value, asset and liability measures
Investments Securities	$ 17	$ 17

Financial Instruments, Deriva43

Financial Instruments, Derivatives and Fair Value Measures (Details 4) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair value, asset and liability measures
Fair Value - Assets	$ 460	$ 358
Fair Value - Liabilities	523	575
Recurring | Fair value
Fair value, asset and liability measures
Equity securities	4,682	9
Interest rate swap derivative financial instruments, assets	103	101
Total Assets	5,142	373
Fair value of hedged long-term debt	4,104	1,637
Interest rate swap derivative financial instruments	17
Contingent consideration related to business combinations	169	243
Total Liabilities	4,365	2,015
Recurring | Fair value | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	357	263
Fair Value - Liabilities	75	135
Recurring | Quoted Prices in Active Markets
Fair value, asset and liability measures
Equity securities	10	9
Total Assets	10	9
Recurring | Significant Other Observable Inputs
Fair value, asset and liability measures
Equity securities	4,672
Interest rate swap derivative financial instruments, assets	103	101
Total Assets	5,132	364
Fair value of hedged long-term debt	4,104	1,637
Interest rate swap derivative financial instruments	17
Total Liabilities	4,196	1,772
Recurring | Significant Other Observable Inputs | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	357	263
Fair Value - Liabilities	75	135
Recurring | Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	169	243
Total Liabilities	$ 169	$ 243

Litigation and Environmental 44

Litigation and Environmental Matters (Details) $ in Millions	Jun. 30, 2015USD ($)
Loss Contingencies
Maximum expected cleanup exposure for individual site	$ 4
Maximum expected cleanup exposure in aggregate	15
Other legal proceedings and environmental exposures
Loss Contingencies
Other legal proceedings or environmental exposure, minimum	40
Other legal proceedings or environmental exposure, maximum	55
Recorded reserve balance for legal proceedings and exposures	$ 50

Post-Employment Benefits (Detai

Post-Employment Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	$ 68	$ 62	$ 150	$ 128
Interest cost on projected benefit obligations	77	75	156	152
Expected return on plan assets	(128)	(113)	(257)	(226)
Actuarial loss, net	42	24	89	49
Prior service cost (credit)				1
Total Cost	59	48	138	104
Net amortization of:
Company contributions			547	330
Defined Benefit Plans | Discontinued operations
Defined benefit plan net periodic benefit cost
Total Cost		4	1	8
Defined Benefit Plans | Continuing operations
Defined benefit plan net periodic benefit cost
Total Cost	59	44	137	96
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	6	9	15	18
Interest cost on projected benefit obligations	11	16	25	32
Expected return on plan assets	(10)	(9)	(19)	(19)
Actuarial loss, net	1	4	10	9
Prior service cost (credit)	(12)	(9)	(24)	(18)
Total Cost	(4)	11	7	22
Net amortization of:
Company contributions			24	40
Medical and Dental Plans | Continuing operations
Defined benefit plan net periodic benefit cost
Total Cost	$ (4)	$ 11	$ 7	$ 22

Taxes on Earnings (Details)

Taxes on Earnings (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Taxes on Earnings
Tax cost related to the disposal of shares	$ 69
Non-cash impact of tax expense associated with the gain on the sale of businesses	1,100
Decrease in gross unrecognized tax benefits	35
Decrease in gross unrecognized tax benefits, upper bound	635
Decrease in gross unrecognized tax benefits, lower bound	525
AbbVie
Taxes on Earnings
Tax costs (benefits) as a result of the resolution of various tax positions.	(17)
Discontinued operations
Taxes on Earnings
Non-cash impact of tax expense associated with the gain on the sale of businesses	665
Discontinued operations | AbbVie
Taxes on Earnings
Favorable resolution of various tax positions and other unusual provision items		$ 109
Decrease in gross unrecognized tax benefits		$ 134
Developed markets branded generics pharmaceuticals business
Taxes on Earnings
Tax costs (benefits) as a result of the resolution of various tax positions.	$ 7

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information
Net Sales to External Customers		$ 5,170	$ 5,057	$ 10,067	$ 9,812
Operating Earnings		729	677	1,339	1,042
Amortization of intangible assets		(151)	(133)	(307)	(260)
Earnings from continuing operations before taxes		986	658	1,639	999
Other
Segment Reporting Information
Net Sales to External Customers		577	628	1,117	1,216
Total Reportable Segments
Segment Reporting Information
Net Sales to External Customers		4,593	4,429	8,950	8,596
Operating Earnings		1,145	1,044	2,222	1,891
Earnings from continuing operations before taxes		986	658	1,639	999
Total Reportable Segments | Established Pharmaceutical Products
Segment Reporting Information
Net Sales to External Customers		977	744	1,874	1,425
Operating Earnings		172	160	339	281
Total Reportable Segments | Nutritional Products
Segment Reporting Information
Net Sales to External Customers		1,717	1,731	3,386	3,362
Operating Earnings		389	302	739	585
Total Reportable Segments | Diagnostic Products
Segment Reporting Information
Net Sales to External Customers		1,177	1,189	2,270	2,306
Operating Earnings		304	279	580	501
Total Reportable Segments | Vascular Products
Segment Reporting Information
Net Sales to External Customers		722	765	1,420	1,503
Operating Earnings		280	303	564	524
Corporate functions
Segment Reporting Information
Corporate functions and benefit plans costs		(104)	(103)	(221)	(161)
Reconciling items
Segment Reporting Information
Non-reportable segments		62	106	117	172
Net interest expense		(17)	(17)	(33)	(37)
Share-based compensation	[1]	(57)	(48)	(205)	(164)
Amortization of intangible assets		(151)	(133)	(307)	(260)
Other, net	[2]	$ 108	$ (191)	$ 66	$ (442)
Minimum
Segment Reporting Information
Annual share-based awards recognized in first quarter (as a percent)				40.00%
Maximum
Segment Reporting Information
Annual share-based awards recognized in first quarter (as a percent)				45.00%
[1]	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.
[2]	Other, net in 2015 includes a gain on the sale of a portion of Abbott’s position in Mylan stock and a decrease in the fair value of contingent consideration related to a business acquisition, which was partially offset by charges associated with cost reduction initiatives.