Abbott Laboratories (ABT) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2015shares
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	1,800
Document Type	10-Q
Document Period End Date	Sep. 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	1,491,719,891
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Statemen

Condensed Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statement of Earnings
Net Sales	$ 5,150	$ 5,079	$ 15,217	$ 14,891
Cost of products sold, excluding amortization of intangible assets	2,242	2,319	6,541	6,881
Amortization of intangible assets	151	132	458	392
Research and development	378	305	1,036	984
Selling, general and administrative	1,666	1,595	5,130	4,864
Total operating cost and expenses	4,437	4,351	13,165	13,121
Operating earnings	713	728	2,052	1,770
Interest expense	41	35	122	107
Interest (income)	(25)	(18)	(73)	(53)
Net foreign exchange (gain) loss	(14)	(1)	(63)
Other (income) expense, net	(3)	(3)	(287)	2
Earnings from continuing operations before taxes	714	715	2,353	1,714
Taxes on earnings from continuing operations	118	277	442	627
Earnings from continuing operations	596	438	1,911	1,087
Earnings (loss) from discontinued operations, net of taxes	(32)	100	(7)	293
Gain (loss) on sale of discontinued operations, net of tax	16		1,752
Net earnings (loss) from discontinued operations, net of tax	(16)	100	1,745	293
Net Earnings	$ 580	$ 538	$ 3,656	$ 1,380
Basic Earnings (Loss) Per Common Share
Continuing operations (in dollars per share)	$ 0.40	$ 0.29	$ 1.27	$ 0.71
Discontinued operations (in dollars per share)	(0.01)	0.07	1.16	0.19
Net earnings (in dollars per share)	0.39	0.36	2.43	0.90
Diluted Earnings (Loss) Per Common Share
Continuing operations (in dollars per share)	0.39	0.29	1.26	0.71
Discontinued operations (in dollars per share)	(0.01)	0.07	1.15	0.19
Net earnings (in dollars per share)	0.38	0.36	2.41	0.90
Cash Dividends Declared Per Common Share (in dollars per share)	$ 0.24	$ 0.22	$ 0.72	$ 0.66
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,495,465	1,508,596	1,498,914	1,517,834
Dilutive Common Stock Options (in shares)	9,702	11,184	10,230	10,798
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares)	1,505,167	1,519,780	1,509,144	1,528,632
Outstanding Common Stock Options Having No Dilutive Effect (in shares)	717	535	658	535

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Condensed Consolidated Statement of Comprehensive Income
Net Earnings	$ 580	$ 538	$ 3,656	$ 1,380
Foreign currency translation (loss) gain adjustments	(645)	(1,096)	(1,472)	(1,053)
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $14 and $39 in 2015 and $7 and $22 in 2014	26	16	79	44
Unrealized gains (losses) on marketable equity securities, net of tax expense (benefit) of $(240) and $104 in 2015 and $(5) and $(7) in 2014	(1,596)	(8)	(901)	(12)
Net adjustments for derivative instruments designated as cash flow hedges and other, net of taxes of $2 and $2 in 2015 and $14 and $12 in 2014	8	65	9	58
Other comprehensive income (loss)	(2,207)	(1,023)	(2,285)	(963)
Comprehensive Income (Loss)	(1,627)	$ (485)	1,371	$ 417
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax
Cumulative foreign currency translation (loss) adjustments	(4,288)		(4,288)		$ (2,924)
Net actuarial (losses) and prior service cost and credits	(2,131)		(2,131)		(2,229)
Cumulative unrealized gains (losses) on marketable equity securities	(900)		(900)		1
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other	$ 108		$ 108		$ 99

Condensed Consolidated Stateme4

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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	$ 14	$ 7	$ 39	$ 22
Unrealized gains (losses) on marketable equity securities, taxes	(240)	(5)	104	(7)
Net adjustments for derivative instruments designated as cash flow hedges and other, taxes	$ 2	$ 14	$ 2	$ 12

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 3,132	$ 4,063
Short-term investments	3,007	397
Trade receivables, less allowances of $358 in 2015 and $310 in 2014	3,460	3,586
Inventories:
Finished products	1,810	1,807
Work in process	289	278
Materials	534	558
Total inventories	2,633	2,643
Prepaid expenses, deferred income taxes, and other receivables	3,523	3,680
Current assets held for disposition	139	892
Total Current Assets	15,894	15,261
Investments	3,055	229
Property and equipment, at cost	12,528	12,632
Less: accumulated depreciation and amortization	6,731	6,697
Net property and equipment	5,797	5,935
Intangible assets, net of amortization	5,844	6,198
Goodwill	9,750	10,067
Deferred income taxes and other assets	1,383	1,651
Non-current assets held for disposition	2	1,934
Total Assets	41,725	41,275
Current Liabilities:
Short-term borrowings	2,370	4,382
Trade accounts payable	1,007	1,064
Salaries, wages and commissions	854	776
Other accrued liabilities	3,294	2,943
Dividends payable	359	362
Income taxes payable	483	270
Current portion of long-term debt	32	55
Current liabilities held for disposition	356	680
Total Current Liabilities	8,755	10,532
Long-term debt	5,953	3,408
Post-employment Obligations, deferred income taxes and other long - term Liabilities	$ 5,798	5,588
Non-current liabilities held for disposition		$ 108
Commitments and Contingencies
Shareholders' Investment:
Common shares, without par value Authorized - 2,400,000,000 shares Issued at stated capital amount - Shares: 2015: 1,700,525,346; 2014: 1,694,929,949	$ 12,641	$ 12,383
Common shares held in treasury, at cost - Shares: 2015: 208,805,455; 2014: 186,894,515	(9,694)	(8,678)
Earnings employed in the business	25,375	22,874
Accumulated other comprehensive income (loss)	(7,211)	(5,053)
Total Abbott Shareholders' Investment	21,111	21,526
Noncontrolling Interests in Subsidiaries	108	113
Total Shareholders' Investment	21,219	21,639
Total Liabilities and Shareholders' Investment	$ 41,725	$ 41,275

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 358	$ 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	1,700,525,346	1,694,929,949
Common shares held in treasury, shares	208,805,455	186,894,515

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 3,656	$ 1,380
Adjustments to reconcile net earnings to net cash from operating activities -
Depreciation	648	689
Amortization of intangibles	458	464
Share-based compensation	249	208
Gain on sale of discontinued operations	(2,837)
Gain on sale of Mylan N.V. shares	(207)
Trade receivables	(151)	(173)
Inventories	(213)	(203)
Other, net	535	72
Net Cash From Operating Activities	2,138	2,437
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(862)	(790)
Proceeds from business disposition	230
Acquisitions of businesses and technologies, net of cash acquired	(235)	(2,822)
Proceeds from the sale of Mylan N.V. shares	2,290
(Purchases) Sales of other investment securities, net	(2,626)	3,358
Other	43	62
Net Cash (Used In) Investing Activities	(1,160)	(192)
Cash Flow From (Used in) Financing Activities:
Net (repayments of) proceeds from issuance of short-term debt and other	(2,019)	1,269
Proceeds from the issuance of long-term debt	2,485
Repayments of long-term debt	(36)
Contingent and other consideration payments related to business acquisitions		(400)
Purchases of common shares	(1,349)	(2,194)
Proceeds from stock options exercised, including income tax benefit	263	290
Dividends paid	(1,083)	(1,007)
Net Cash (Used in) Financing Activities	(1,739)	(2,042)
Effect of exchange rate changes on cash and cash equivalents	(170)	(65)
Net Increase (Decrease) in Cash and Cash Equivalents	(931)	138
Cash and Cash Equivalents, Beginning of Year	4,063	3,475
Cash and Cash Equivalents, End of Period	$ 3,132	$ 3,613

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 first nine months 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 $216 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 nine months of 2015 and 2014 reflect the recognition of $10 million of tax expense and $37 million of tax benefit, respectively, 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 Sept. 30 Nine Months Ended Sept. 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 (Loss) 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 nine months of 2015 resulted in the recognition of a pretax gain of $2.837 billion, tax expense of $1.085 billion and an after tax gain of $1.752 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 September 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) September 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	9 Months Ended
	Sep. 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 September 30, 2015 and 2014 were $593 million and $437 million, respectively and for the nine months ended September 30, 2015 and 2014 were $1.902 billion and $1.083 billion, respectively. Net earnings allocated to common shares for the three months ended September 30, 2015 and 2014 were $577 million and $536 million, respectively, and for the nine months ended September 30, 2015 and 2014 were $3.638 billion and $1.373 billion, respectively. Other (income) expense, net in the first nine months of 2015 primarily relates to a $207 million gain on the sale of a portion of Abbott’s position in Mylan N.V. stock and $79 million of income resulting from a decrease in the fair value of contingent consideration related to a business acquisition. In the first nine months 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 nine months of 2015 and 2014 includes the effects of contributions to defined benefit plans of $551 million and $350 million, respectively, and to the post-employment medical and dental benefit plans of $24 million and $40 million in the nine month periods of 2015 and 2014, respectively. The first nine 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 nine months of 2014 includes approximately $165 million of cash refunded by taxing authorities, resulting from the resolution of various tax positions pertaining to prior years; and the timing of cash taxes. The components of short-term and long-term investments as of September 30, 2015 and December 31, 2014 are as follows: Short-term Investments September 30, December 31, (in millions) 2015 2014 Investments, primarily bank time deposits $ $ Long-term Investments (in millions) Equity securities $ $ Other Total $ $ The long-term investments in equity securities as of September 30, 2015 include 69.7 million of ordinary shares of Mylan N.V. with a market value of $2.808 billion. 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.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2015
Changes in Accumulated Other Comprehensive Income (Loss)
Changes in Accumulated Other Comprehensive Income (Loss)	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 September 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains (Losses) 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 June 30 $ ) $ ) $ ) $ ) $ $ $ $ ) Other comprehensive income (loss) before reclassifications ) ) — — ) Amounts reclassified from accumulated other comprehensive income — — — ) ) ) Net current period comprehensive income ) ) ) ) Balance at September 30 $ ) $ ) $ ) $ ) $ ) $ $ $ Nine Months Ended September 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains (Losses) 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 September 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	9 Months Ended
	Sep. 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 currently 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 final allocation of the fair value of the acquisition is shown in the table below. (in billions) Acquired intangible assets, non-deductible $ Goodwill, non-deductible Acquired net tangible assets Deferred income taxes recorded at acquisition ) Total final allocation of fair value $ Acquired intangible assets consist primarily of product rights for currently marketed products and are amortized over 12 to 16 years (weighted 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 $180 million, inventory of approximately $169 million, other current assets of approximately $51 million, property and equipment of approximately $210 million, and other long-term assets of approximately $145 million. Assumed liabilities consist of borrowings of approximately $570 million, trade accounts payable and other current liabilities of approximately $240 million and other noncurrent liabilities of approximately $14 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 non-controlling 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 $105 million, non-deductible goodwill of approximately $110 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 preliminary 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 intangible assets of approximately $325 million, non-deductible goodwill of approximately $105 million, net deferred tax liabilities of approximately $105 million, and contingent consideration of approximately $95 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. In August 2015, Abbott completed the acquisition of the equity of Tendyne Holdings, Inc. that Abbott did not already own for approximately $225 million in cash plus additional payments up to $135 million to be made upon completion of certain regulatory milestones. The acquisition of Tendyne, which is focused on developing minimally invasive mitral valve replacement therapies, allows Abbott to broaden its foundation in the treatment of mitral valve disease. The preliminary allocation of the fair value of the acquisition resulted in non-deductible acquired in-process research and development of approximately $240 million, which is accounted for as an indefinite-lived intangible asset until regulatory approval or discontinuation, non-deductible goodwill of approximately $155 million, net deferred tax liabilities of approximately $90 million, and contingent consideration of approximately $80 million. The preliminary allocations of fair value will be finalized when valuations are completed. Had the aggregate of the above acquisitions taken place as of the beginning of the comparable prior annual reporting period for each acquisition, consolidated net sales and earnings would not have been significantly different from reported amounts.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 — Goodwill and Intangible Assets The total amount of goodwill reported was $9.750 billion at September 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 nine months of 2015, $894 million of goodwill was included as part of the net assets sold. In the first nine months of 2015, foreign currency translation adjustments decreased goodwill by approximately $273 million, while purchase price allocation adjustments associated with recent acquisitions decreased goodwill by approximately $44 million. The amount of goodwill related to reportable segments at September 30, 2015 was $3.0 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $449 million for the Diagnostic Products segment, and $3.0 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 September 30, 2015 and $11.0 billion as of December 31, 2014, and accumulated amortization was $5.3 billion as of September 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. Intangibles of $738 million were included in the net assets transferred as part of the disposal of the developed markets branded generics pharmaceuticals business in the first nine months of 2015. Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, was approximately $377 million at September 30, 2015 and $134 million at 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	9 Months Ended
	Sep. 30, 2015
Restructuring Plans
Restructuring Plans	Note 7 — Restructuring Plans In 2015 and 2014, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in various Abbott businesses including the nutritional, established pharmaceuticals and vascular businesses. In the first nine months of 2015, charges of approximately $80 million were recognized, of which approximately $25 million is recorded in Cost of products sold, approximately $38 million is recorded in Research and Development and approximately $17 million is recorded in Selling, general and administrative expense. Additional charges of approximately $34 million were recorded primarily for accelerated depreciation. The following summarizes the activity for the first nine months of 2015 related to these restructuring actions and the status of the related accrual as of September 30, 2015: (in millions) Accrued balance at December 31, 2014 $ Restructuring charges recorded in 2015 Payments and other adjustments ) Accrued balance at September 30, 2015 $ From 2013 to 2015, Abbott management approved various plans to reduce costs and improve efficiencies across various functional areas. In the first nine months of 2015, charges of approximately $38 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 $27 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 nine months of 2015 related to these restructuring actions and the status of the related accrual as of September 30, 2015: (in millions) Accrued balance at December 31, 2014 $ Restructuring charges recorded in 2015 Payments and other adjustments ) Accrued balance at September 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 nine months of 2015 related to these restructuring actions and the status of the related accrual as of September 30, 2015: (in millions) Accrued balance at December 31, 2014 $ Payments and other adjustments ) Accrued balance at September 30, 2015 $

Incentive Stock Programs

Incentive Stock Programs	9 Months Ended
	Sep. 30, 2015
Incentive Stock Programs
Incentive Stock Programs	Note 8 — Incentive Stock Programs In the first nine months of 2015, Abbott granted 5,577,553 stock options, 662,553 restricted stock awards and 5,864,895 restricted stock units under its incentive stock programs. At September 30, 2015, approximately 87 million shares were reserved for future grants. Information regarding the number of stock options outstanding and exercisable at September 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 September 30, 2015 amounted to approximately $209 million which is expected to be recognized over the next three years.

Financial Instruments, Derivati

Financial Instruments, Derivatives and Fair Value Measures	9 Months Ended
	Sep. 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 $2.5 billion at September 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 September 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 September 30, 2015 and December 31, 2014, Abbott held $13.2 billion and $14.1 billion, respectively, of such foreign currency forward exchange contracts. Abbott has designated foreign denominated short-term debt as a hedge of the net investment in a foreign subsidiary of approximately $442 million and approximately $445 million as of September 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 September 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 September 30, 2015 and December 31, 2014: Fair Value - Assets Fair Value - Liabilities (in millions) Sept. 30, 2015 Dec. 31, 2014 Balance Sheet Caption Sept. 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 nine months ended September 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 Sept. 30 Nine Months Ended Sept. 30 Three Months Ended Sept. 30 Nine Months Ended Sept. 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 September 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. September 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 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 September 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 — — 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 N.V. equity securities was determined based on the value of the publicly-traded ordinary 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. The following table summarizes the available-for-sale equity securities in an unrealized loss position: (in millions) September 30, 2015 December 31, 2014 Fair value of securities in an unrealized loss position $ $ Unrealized gross losses — Available-for-sale securities are periodically assessed for other-than-temporary impairment losses. Almost all of the unrealized losses relate to the holding of Mylan N.V. ordinary shares, which have been in an unrealized loss position for less than three months at September 30, 2015. Factors considered in assessing other-than-temporary impairment losses include the length of time and the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, Abbott’s intent and ability to retain the securities for a period of time sufficient to allow for recovery in fair value, overall market conditions, and industry and company specific factors. Based on that evaluation and Abbott’s ability and intent to hold these investments for a reasonable period of time sufficient for a forecasted recovery of fair value, Abbott does not consider these securities to be other-than-temporarily impaired at September 30, 2015.

Litigation and Environmental Ma

Litigation and Environmental Matters	9 Months Ended
	Sep. 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 $50 million to $65 million. The recorded accrual balance at September 30, 2015 for these proceedings and exposures was approximately $60 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	9 Months Ended
	Sep. 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 nine months ended September 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 Nine Months Three Months Nine Months Ended Sept. 30 Ended Sept. 30 Ended Sept. 30 Ended Sept. 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 nine months of 2015 and 2014, $551 million and $350 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 nine months of 2015 and 2014, respectively.

Taxes on Earnings

Taxes on Earnings	9 Months Ended
	Sep. 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 nine months of 2015, taxes on earnings from continuing operations include a tax cost of $71 million related to the disposal of shares of Mylan N.V. stock. Taxes on earnings from continuing operations were not affected by any adjustments as a result of the resolution of various tax positions pertaining to prior years. Tax expense related to discontinued operations includes $667 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 nine months of 2015 also reflects the recognition of $10 million of net tax expense 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 $16 million. Taxes on earnings from continuing operations, in the first nine months of 2014, reflect a tax cost of $37 million, primarily as a result of the resolution of various tax positions related to the branded generics pharmaceutical business and the impact of changes in the Chilean tax rate. Earnings from discontinued operations, net of tax, in the first nine months of 2014 reflects the recognition of $101 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	9 Months Ended
	Sep. 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. This business was previously included in the Established Pharmaceutical Products segment for the first nine 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 Nine Months Three Months Nine Months Ended Sept. 30 Ended Sept. 30 Ended Sept. 30 Ended Sept. 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 for the nine months ended September 30, 2015 includes a gain on the sale of a portion of Abbott’s position in Mylan N.V. 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)	9 Months Ended
	Sep. 30, 2015
Discontinued Operations.
Components of discontinued operations	Three Months Ended Sept. 30 Nine Months Ended Sept. 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 (Loss) Developed markets generics pharmaceuticals and animal health businesses $ ) $ $ $ AbbVie ) ) ) Total $ ) $ $ ) $
Summary of the assets and liabilities held for sale	(in millions) September 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)	9 Months Ended
	Sep. 30, 2015
Supplemental Financial Information
Components of short-term and long-term investments	Short-term Investments September 30, December 31, (in millions) 2015 2014 Investments, primarily bank time deposits $ $ Long-term Investments (in millions) Equity securities $ $ Other Total $ $

Changes in Accumulated Other 23

Changes in Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2015
Changes in Accumulated Other Comprehensive Income (Loss)
Schedule of the changes in accumulated other comprehensive income (loss), net of income taxes	Three Months Ended September 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains (Losses) 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 June 30 $ ) $ ) $ ) $ ) $ $ $ $ ) Other comprehensive income (loss) before reclassifications ) ) — — ) Amounts reclassified from accumulated other comprehensive income — — — ) ) ) Net current period comprehensive income ) ) ) ) Balance at September 30 $ ) $ ) $ ) $ ) $ ) $ $ $ Nine Months Ended September 30 Cumulative Foreign Currency Translation Adjustments Net Actuarial Losses and Prior Service Costs and Credits Cumulative Unrealized Gains (Losses) 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 September 30 $ ) $ ) $ ) $ ) $ ) $ $ $

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 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 final allocation of fair value $

Restructuring Plans (Tables)

Restructuring Plans (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring Plan 2015 and 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 September 30, 2015 $
Restructuring Plan 2013 to 2015
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 September 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 September 30, 2015 $

Incentive Stock Programs (Table

Incentive Stock Programs (Tables)	9 Months Ended
	Sep. 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)	9 Months Ended
	Sep. 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) Sept. 30, 2015 Dec. 31, 2014 Balance Sheet Caption Sept. 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 Sept. 30 Nine Months Ended Sept. 30 Three Months Ended Sept. 30 Nine Months Ended Sept. 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	September 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
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 September 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 — — 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 $ $ — $ $
Schedule summarizes the available-for-sale equity securities in an unrealized loss position	(in millions) September 30, 2015 December 31, 2014 Fair value of securities in an unrealized loss position $ $ Unrealized gross losses —

Post-Employment Benefits (Table

Post-Employment Benefits (Tables)	9 Months Ended
	Sep. 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 Nine Months Three Months Nine Months Ended Sept. 30 Ended Sept. 30 Ended Sept. 30 Ended Sept. 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)	9 Months Ended
	Sep. 30, 2015
Segment Information
Schedule of segment and geographic area information	Net Sales to External Customers Operating Earnings Three Months Nine Months Three Months Nine Months Ended Sept. 30 Ended Sept. 30 Ended Sept. 30 Ended Sept. 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 for the nine months ended September 30, 2015 includes a gain on the sale of a portion of Abbott’s position in Mylan N.V. 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	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Proceeds from the disposition of business							$ 230
Gain on sale of Mylan shares							207
Proceeds from the sale of Mylan N.V. shares							2,290
After Tax Gain					$ 16		1,752
Pretax gain on sale of discontinued operations							2,837
Trade receivables, net					58		58		$ 498
Total inventories					48		48		254
Prepaid expenses, deferred income taxes, and other receivables					33		33		140
Current assets held for disposition					139		139		892
Net property and equipment					2		2		125
Earnings from discontinued operations, net tax benefits					(16)	$ 100	1,745	$ 293
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					141		141		2,826
Trade accounts payable					337		337		423
Salaries, wages, commissions and other accrued liabilities					19		19		257
Current liabilities held for disposition					356		356		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					356		$ 356		$ 788
Developed markets branded generics pharmaceuticals business
Value 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
Intangible assets, net of amortization					738		$ 738
Goodwill					894		$ 894
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					$ 216		$ 216
AbbVie | Discontinued operations
Earnings from discontinued operations, net tax benefits							$ 10	$ 37
Mylan
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc				110
Number of shares in investment sold				40.3
Mylan | Developed markets branded generics pharmaceuticals business
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc	110						110
Gain on sale of Mylan shares							$ 207
Number of shares in investment sold							40.3
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	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales			$ 544	$ 256	$ 1,527
Earnings (Loss) Before Tax		$ (6)	163	14	324
Income Tax Expense (Benefit)		26	63	21	31
Net Earnings (Loss)		(32)	100	(7)	293
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
Pretax gain on sale of discontinued operations				2,837
Non-cash impact of tax expense associated with the gain on the sale of businesses				1,100
After Tax Gain		16		1,752
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			544	256	1,527
Earnings (Loss) Before Tax		(6)	163	14	324
Income Tax Expense (Benefit)		(1)	58	11	68
Net Earnings (Loss)		(5)	105	3	256
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax [Abstract]
Pretax gain on sale of discontinued operations				2,837
Non-cash impact of tax expense associated with the gain on the sale of businesses				1,085
After Tax Gain				1,752
AbbVie
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income Tax Expense (Benefit)		27	5	10	(37)
Net Earnings (Loss)		$ (27)	$ (5)	$ (10)	$ 37

Supplemental Financial Inform32

Supplemental Financial Information (Details) - USD ($) shares in Millions	Feb. 27, 2015	Apr. 30, 2015	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Supplemental Financial Information
Earnings from continuing operations allocated to common shares			$ 593,000,000		$ 437,000,000	$ 1,902,000,000	$ 1,083,000,000
Net earnings allocated to common shares			577,000,000		$ 536,000,000	3,638,000,000	1,373,000,000
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						165,000,000
Component of investments
Investments, primarily bank time deposits			3,007,000,000			3,007,000,000		$ 397,000,000
Investments			$ 3,055,000,000			3,055,000,000		229,000,000
Gain on sale of Mylan shares						207,000,000
Pretax gain on sale of discontinued operations						2,837,000,000
Decrease in fair value of contingent consideration						79,000,000
Proceeds from the sale of Mylan N.V. shares						2,290,000,000
Debt and Lines of Credit
Long-term debt issued				$ 2,500,000,000
Post-employment Obligations and Other Long-term Liabilities:
Non-cash impact of tax expense associated with the gain on the sale of businesses						$ 1,100,000,000
Mylan NV
Component of investments
Number of shares owned			69.7			69.7
Market value			$ 2,808,000,000			$ 2,808,000,000
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 investments
Number of shares in investment sold		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				2,500,000,000
2.00% Senior Notes Due March 15, 2020
Debt and Lines of Credit
Long-term debt issued				$ 750,000,000
Interest rate percentage				2.00%
2.55% Senior Notes Due March 15, 2022
Debt and Lines of Credit
Long-term debt issued				$ 750,000,000
Interest rate percentage				2.55%
2.95% Senior Notes Due March 15, 2025
Debt and Lines of Credit
Long-term debt issued				$ 1,000,000,000
Interest rate percentage				2.95%
Defined Benefit Plans
Post-employment Obligations and Other Long-term Liabilities:
Company contributions						$ 551,000,000	350,000,000
Medical and Dental Plans
Post-employment Obligations and Other Long-term Liabilities:
Company contributions						24,000,000	$ 40,000,000
Equity securities
Component of investments
Investments			$ 3,038,000,000			3,038,000,000		212,000,000
Other
Component of investments
Investments			17,000,000			17,000,000		17,000,000
Other, Primarily Bank Time Deposits and Us Treasury Bills Member
Component of investments
Investments, primarily bank time deposits			$ 3,007,000,000			3,007,000,000		$ 397,000,000
Developed markets branded generics pharmaceuticals business | Mylan
Component of investments
Gain on sale of Mylan shares						$ 207,000,000
Number of shares in investment sold						40.3
Number of shares received for sale of generics pharmaceuticals business to Mylan Inc	110					110

Changes in Accumulated Other 33

Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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	$ (7,211)		(7,211)
Cumulative Foreign Currency Translation Adjustments
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	(3,643)	$ (675)	(2,924)	$ (718)
Impact of business dispositions			108
Other comprehensive income (loss) before reclassifications	(645)	(1,096)	(1,472)	(1,053)
Net current period comprehensive income	(645)	(1,096)	(1,472)	(1,053)
Balance at the end of the period	(4,288)	(1,771)	(4,288)	(1,771)
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	(2,157)	(1,284)	(2,229)	(1,312)
Impact of business dispositions			19
Amounts reclassified from accumulated other comprehensive income	26	16	79	44
Net current period comprehensive income	26	16	79	44
Balance at the end of the period	(2,131)	(1,268)	(2,131)	(1,268)
Cumulative Unrealized Gains (Losses) on Marketable Equity Securities
Other comprehensive income from continuing operations, net of income taxes
Balance at the beginning of the period	696	9	1	13
Other comprehensive income (loss) before reclassifications	(1,596)	2	(763)	4
Amounts reclassified from accumulated other comprehensive income		(10)	(138)	(16)
Net current period comprehensive income	(1,596)	(8)	(901)	(12)
Balance at the end of the period	(900)	1	(900)	1
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	100	(2)	99	5
Other comprehensive income (loss) before reclassifications	41	67	89	66
Amounts reclassified from accumulated other comprehensive income	(33)	(2)	(80)	(8)
Net current period comprehensive income	8	65	9	58
Balance at the end of the period	$ 108	$ 63	$ 108	$ 63

Business Acquisitions (Details)

Business Acquisitions (Details) - USD ($) $ in Millions	Sep. 26, 2014	Aug. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Business acquisitions
Subsequent payment related to working capital adjustment			$ 5
Net cash paid, net of cash on hand of acquired company				$ 235	$ 2,822
Allocation of the fair value
Goodwill			10,067	$ 9,750		$ 10,067
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
Established Pharmaceutical Products
Allocation of the fair value
Goodwill				$ 3,000
Nutritional Products
Allocation of the fair value
Goodwill				286
Diagnostic Products
Allocation of the fair value
Goodwill				449
Vascular Products
Allocation of the fair value
Goodwill				$ 3,000
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
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
Allocation of the fair value
Acquired intangible assets, non-deductible	1,870
Goodwill	1,420
Acquired net tangible assets	30
Deferred income taxes recorded at acquisition	(400)
Total final allocation of fair value	2,920
Cash and cash equivalents	94
Trade accounts receivable	180
Inventory	169
Other current assets	51
Property and equipment	210
Other long-term assets	145
Borrowings	570
Trade accounts payable and other current liabilities	240
Other noncurrent liabilities	14
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			110			110
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
Non-deductible definite-lived intangible assets			105			105
Topera
Business acquisitions
Cash paid for business acquisition			250
Allocation of the fair value
Goodwill			105			105
Deferred income taxes recorded at acquisition			$ (105)			(105)
Amortization period of acquired intangible assets			16 years
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			$ 95			$ 95
Tendyne Holdings, Inc.
Business acquisitions
Cash paid for business acquisition		$ 225
Allocation of the fair value
Goodwill		155
Deferred income taxes recorded at acquisition		(90)
Additional payments upon completion of certain development, regulatory and sales milestones		135
Non-deductible acquired in-process research and development		240
Contingent consideration		$ 80

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Goodwill and intangible assets information
Goodwill	$ 9,750	$ 10,067
Foreign currency translation adjustments decreased goodwill	273
Goodwill as part of the disposal		950
Purchase price allocation adjustments associated with increased (decreased) goodwill	(44)
Amount of reduction of goodwill relating to impairments	0
Intangibles assets included in the net assets transferred as part of the disposal		$ 804
Developed markets branded generics pharmaceuticals business
Goodwill and intangible assets information
Goodwill as part of the disposal	894
Intangibles assets included in the net assets transferred as part of the disposal	738
Established Pharmaceutical Products
Goodwill and intangible assets information
Goodwill	3,000
Nutritional Products
Goodwill and intangible assets information
Goodwill	286
Diagnostic Products
Goodwill and intangible assets information
Goodwill	449
Vascular Products
Goodwill and intangible assets information
Goodwill	$ 3,000

Goodwill and Intangible Asset36

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets
Gross amount of amortizable intangible assets	$ 10,800	$ 11,000
Accumulated amortization of intangible assets	5,300	4,900
Indefinite-lived intangible assets related to in-process research and development acquired in a business combination	377	$ 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	9 Months Ended
	Sep. 30, 2015USD ($)
Restructuring Plan 2015 and 2014
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	$ 118
Restructuring charges	80
Payments and other adjustments	(78)
Restructuring reserve, ending balance of the period	120
Additional charges for accelerated depreciation	34
Restructuring Plan 2015 and 2014 | Research and development
Restructuring reserve activity
Restructuring charges	38
Restructuring Plan 2015 and 2014 | Cost of products sold
Restructuring reserve activity
Restructuring charges	25
Restructuring Plan 2015 and 2014 | Selling, general and administrative expense
Restructuring reserve activity
Restructuring charges	17
Restructuring Plan 2013 to 2015
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	135
Restructuring charges	38
Payments and other adjustments	(64)
Restructuring reserve, ending balance of the period	109
Restructuring Plan 2013 to 2015 | Research and development
Restructuring reserve activity
Restructuring charges	2
Restructuring Plan 2013 to 2015 | Cost of products sold
Restructuring reserve activity
Restructuring charges	9
Restructuring Plan 2013 to 2015 | Selling, general and administrative expense
Restructuring reserve activity
Restructuring charges	27
Restructuring Plan 2013 and Prior Years
Restructuring reserve activity
Restructuring reserve, beginning balance of the period	39
Payments and other adjustments	(9)
Restructuring reserve, ending balance of the period	$ 30

Incentive Stock Programs (Detai

Incentive Stock Programs (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock programs, shares reserved for future grants	87,000,000
Total unrecognized compensation cost | $	$ 209
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, stock options (in shares)	5,577,553
Stock options outstanding, number of shares	36,258,229
Exercisable options, number of shares	26,691,599
Stock options outstanding, weighted-average remaining life	4 years 8 months 12 days
Exercisable options, weighted-average remaining life	3 years 2 months 12 days
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares	$ 31.23
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares	$ 26.94
Aggregate intrinsic value of options outstanding | $	$ 367
Aggregate intrinsic value of options exercisable | $	$ 357
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)	662,553
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	5,864,895

Financial Instruments, Deriva39

Financial Instruments, Derivatives and Fair Value Measures (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 379	$ 358
Fair Value - Liabilities	567	575
Designated as hedging instrument | Short-term borrowings | Net investment hedges
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	442	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	172	101
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	$ 2,500	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	$ 100	107
Designated as hedging instrument | Foreign currency forward exchange contracts. | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	20
Not designated as hedging instrument | Foreign currency forward exchange contracts.
Derivative instruments, notional amount and fair value
Notional amount of cash flow hedge instruments	13,200	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	107	150
Not designated as hedging instrument | Foreign currency forward exchange contracts. | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	$ 105	$ 130

Financial Instruments, Deriva40

Financial Instruments, Derivatives and Fair Value Measures (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net investment hedges | Designated as hedging instrument
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)	$ (11)	$ 38	$ 3	$ 20
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense
Gain (loss) on derivatives
Gain (loss) Reclassified into Income	85	(6)	71	13
Foreign currency forward exchange contracts. | Not designated as hedging instrument | Net foreign exchange loss (gain)
Gain (loss) on derivatives
Gain (loss) Reclassified into Income	9	76	(92)	50
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)	41	58	89	56
Gain (loss) Reclassified into Income	$ 33	$ 2	$ 80	$ 7

Financial Instruments, Deriva41

Financial Instruments, Derivatives and Fair Value Measures (Details 3) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Fair value, asset and liability measures
Investments Securities	$ 3,055	$ 229
Foreign currency forward exchange contracts, receivable position	379	358
Foreign currency forward exchange contracts, (payable) position	(567)	(575)
Equity securities
Fair value, asset and liability measures
Investments Securities	3,038	212
Carrying value
Fair value, asset and liability measures
Total long-term debt	(5,985)	(3,463)
Foreign currency forward exchange contracts, receivable position	207	263
Foreign currency forward exchange contracts, (payable) position	(125)	(135)
Interest rate hedge contracts, receivable position	172	101
Carrying value | Equity securities
Fair value, asset and liability measures
Investments Securities	3,038	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	(6,493)	(4,113)
Foreign currency forward exchange contracts, receivable position	207	263
Foreign currency forward exchange contracts, (payable) position	(125)	(135)
Interest rate hedge contracts, receivable position	172	101
Fair value | Equity securities
Fair value, asset and liability measures
Investments Securities	3,038	212
Fair value | Other.
Fair value, asset and liability measures
Investments Securities	$ 17	$ 17

Financial Instruments, Deriva42

Financial Instruments, Derivatives and Fair Value Measures (Details 4) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Fair value, asset and liability measures
Fair Value - Assets	$ 379	$ 358
Fair Value - Liabilities	567	575
Available-for-sale equity securities in an unrealized loss position
Fair value of securities in an unrealized loss position	2,812	6
Unrealized gross losses	797
Recurring
Fair value, asset and liability measures
Equity securities	2,817	9
Interest rate swap derivative financial instruments, assets	172	101
Total Assets	3,196	373
Fair value of hedged long-term debt	4,196	1,637
Contingent consideration related to business combinations	180	243
Total Liabilities	4,501	2,015
Recurring | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	207	263
Fair Value - Liabilities	125	135
Recurring | Quoted Prices in Active Markets
Fair value, asset and liability measures
Equity securities	2,817	9
Total Assets	2,817	9
Recurring | Significant Other Observable Inputs
Fair value, asset and liability measures
Interest rate swap derivative financial instruments, assets	172	101
Total Assets	379	364
Fair value of hedged long-term debt	4,196	1,637
Total Liabilities	4,321	1,772
Recurring | Significant Other Observable Inputs | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	207	263
Fair Value - Liabilities	125	135
Recurring | Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	180	243
Total Liabilities	$ 180	$ 243

Litigation and Environmental 43

Litigation and Environmental Matters (Details) $ in Millions	Sep. 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	50
Other legal proceedings or environmental exposure, maximum	65
Recorded reserve balance for legal proceedings and exposures	$ 60

Post-Employment Benefits (Detai

Post-Employment Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	$ 80	$ 61	$ 230	$ 184
Interest cost on projected benefit obligations	78	73	234	222
Expected return on plan assets	(128)	(109)	(385)	(330)
Actuarial loss, net	47	23	136	71
Prior service cost (credit)		1		2
Total Cost	77	49	215	149
Net amortization of:
Company contributions			551	350
Defined Benefit Plans | Discontinued operations
Defined benefit plan net periodic benefit cost
Total Cost		4	1	12
Defined Benefit Plans | Continuing operations
Defined benefit plan net periodic benefit cost
Total Cost	77	45	214	137
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	9	9	24	27
Interest cost on projected benefit obligations	14	16	39	48
Expected return on plan assets	(10)	(10)	(29)	(29)
Actuarial loss, net	8	5	18	14
Prior service cost (credit)	(12)	(9)	(36)	(27)
Total Cost	9	11	16	33
Net amortization of:
Company contributions			24	40
Medical and Dental Plans | Continuing operations
Defined benefit plan net periodic benefit cost
Total Cost	$ 9	$ 11	$ 16	$ 33

Taxes on Earnings (Details)

Taxes on Earnings (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Taxes on Earnings
Tax cost related to the disposal of shares	$ 71
Non-cash impact of tax expense associated with the gain on the sale of businesses	1,100
Decrease in gross unrecognized tax benefits	16
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.	10
Discontinued operations
Taxes on Earnings
Non-cash impact of tax expense associated with the gain on the sale of businesses	667
Discontinued operations | AbbVie
Taxes on Earnings
Favorable resolution of various tax positions and other unusual provision items		$ 101
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.	$ 37

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information
Net Sales to External Customers		$ 5,150	$ 5,079	$ 15,217	$ 14,891
Operating Earnings		713	728	2,052	1,770
Amortization of intangible assets		(151)	(132)	(458)	(392)
Earnings from continuing operations before taxes		714	715	2,353	1,714
Other
Segment Reporting Information
Net Sales to External Customers		572	611	1,689	1,828
Total Reportable Segments
Segment Reporting Information
Net Sales to External Customers		4,578	4,468	13,528	13,063
Operating Earnings		1,182	1,119	3,404	3,009
Total Reportable Segments | Established Pharmaceutical Products
Segment Reporting Information
Net Sales to External Customers		961	771	2,835	2,196
Operating Earnings		177	160	516	441
Total Reportable Segments | Nutritional Products
Segment Reporting Information
Net Sales to External Customers		1,789	1,787	5,175	5,149
Operating Earnings		459	369	1,198	954
Total Reportable Segments | Diagnostic Products
Segment Reporting Information
Net Sales to External Customers		1,156	1,180	3,426	3,486
Operating Earnings		307	310	887	810
Total Reportable Segments | Vascular Products
Segment Reporting Information
Net Sales to External Customers		672	730	2,092	2,232
Operating Earnings		239	280	803	804
Corporate functions
Segment Reporting Information
Corporate functions and benefit plans costs		(109)	(76)	(330)	(237)
Reconciling items
Segment Reporting Information
Non-reportable segments		76	124	193	297
Net interest expense		(16)	(17)	(49)	(54)
Share-based compensation	[1]	(43)	(39)	(248)	(203)
Amortization of intangible assets		(151)	(132)	(458)	(392)
Other, net	[2]	$ (225)	$ (264)	$ (159)	$ (706)
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 for the nine months ended September 30, 2015 includes a gain on the sale of a portion of Abbott’s position in Mylan N.V. 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.