Abbott Laboratories (ABT) 10-Q 2 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2018shares
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	1,800
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
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	1,753,187,766
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statement of Earnings
Net sales	$ 7,390	$ 6,335
Cost of products sold, excluding amortization of intangible assets	3,067	3,062
Amortization of intangible assets	584	522
Research and development	589	553
Selling, general and administrative	2,542	2,440
Total operating cost and expenses	6,782	6,577
Operating earnings (loss)	608	(242)
Interest expense	227	226
Interest (income)	(28)	(22)
Net foreign exchange (gain) loss	(3)	(16)
Net loss on extinguishment of debt	14
Other (income) expense, net	(33)	(1,166)
Earnings from continuing operations before tax	431	736
Tax expense on earnings from continuing operations	22	350
Earnings from continuing operations	409	386
Earnings from discontinued operations, net of tax	9	33
Net Earnings	$ 418	$ 419
Basic Earnings Per Common Share --
Continuing operations (in dollars per share)	$ 0.23	$ 0.22
Discontinued operations (in dollars per share)	0.01	0.02
Net earnings (in dollars per share)	0.24	0.24
Diluted Earnings Per Common Share --
Continuing operations (in dollars per share)	0.23	0.22
Discontinued operations (in dollars per share)		0.02
Net earnings (in dollars per share)	0.23	0.24
Cash Dividends Declared Per Common Share (in dollars per share)	$ 0.28	$ 0.265
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,753,412	1,727,356
Dilutive Common Stock Options (in shares)	11,866	7,839
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares)	1,765,278	1,735,195
Outstanding Common Stock Options Having No Dilutive Effect (in shares)		9,432

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Condensed Consolidated Statement of Comprehensive Income
Net earnings	$ 418	$ 419
Foreign currency translation gain (loss) adjustments	333	533
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $17 in 2018 and $12 in 2017	23	34
Unrealized gains (losses) on marketable equity securities, net of taxes $53 in 2017		80
Net (losses) gains for derivative instruments designated as cash flow hedges, net of taxes of $(20) in 2018 and $(24) in 2017	(32)	(65)
Other comprehensive income	324	582
Comprehensive Income	742	$ 1,001
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	(3,119)		$ (3,452)
Net actuarial (losses) and prior service (cost) and credits	(2,498)		(2,521)
Cumulative unrealized (losses) gains on marketable equity securities			(5)
Cumulative (losses) gains on derivative instruments designated as cash flow hedges	(116)		(84)
Accumulated other comprehensive income (loss)	$ (5,733)		$ (6,062)

Condensed Consolidated Stateme4

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statement of Comprehensive Income
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, taxes	$ 17	$ 12
Unrealized gains (losses) on marketable equity securities, taxes		53
Net (losses) gains for derivative instruments designated as cash flow hedges, taxes	$ (20)	$ (24)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 3,857	$ 9,407
Short-term investments	185	203
Trade receivables, less allowances of $321 in 2018 and $294 in 2017	5,356	5,249
Inventories:
Finished products	2,424	2,339
Work in process	536	472
Materials	866	790
Total inventories	3,826	3,601
Prepaid expenses and other receivables	1,720	1,667
Current assets held for disposition	20	20
Total Current Assets	14,964	20,147
Investments	913	883
Property and equipment, at cost	15,556	15,265
Less: accumulated depreciation and amortization	7,897	7,658
Net property and equipment	7,659	7,607
Intangible assets, net of amortization	20,943	21,473
Goodwill	24,227	24,020
Deferred income taxes and other assets	2,082	1,944
Non-current assets held for disposition	120	176
Total Assets	70,908	76,250
Current Liabilities:
Short-term borrowings	230	206
Trade accounts payable	2,476	2,402
Salaries, wages and commissions	949	1,187
Other accrued liabilities	4,144	3,811
Dividends payable	492	489
Income taxes payable	212	309
Current portion of long-term debt	507	508
Total Current Liabilities	9,010	8,912
Long-term debt	21,154	27,210
Post-employment obligations, deferred income taxes and other long-term liabilities	9,143	9,030
Commitments and Contingencies
Shareholders' Investment:
Preferred shares, one dollar par value Authorized - 1,000,000 shares, none issued
Common shares, without par value Authorized - 2,400,000,000 shares Issued at stated capital amount - Shares: 2018: 1,969,331,007; 2017: 1,965,908,188	23,223	23,206
Common shares held in treasury, at cost - Shares: 2018: 216,143,241; 2017: 222,305,719	(9,947)	(10,225)
Earnings employed in the business	23,856	23,978
Accumulated other comprehensive income (loss)	(5,733)	(6,062)
Total Abbott Shareholders' Investment	31,399	30,897
Noncontrolling Interests in Subsidiaries	202	201
Total Shareholders' Investment	31,601	31,098
Total Liabilities and Shareholders' Investment	$ 70,908	$ 76,250

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 321	$ 294
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	1,969,331,007	1,965,908,188
Common shares held in treasury, shares	216,143,241	222,305,719

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 418	$ 419
Adjustments to reconcile earnings to net cash from (used in) operating activities -
Depreciation	268	252
Amortization of intangible assets	584	522
Share-based compensation	212	171
Amortization of inventory step-up	32	392
Gain on sale of businesses		(1,151)
Trade receivables	(53)	30
Inventories	(171)	(162)
Other, net	(182)	101
Net Cash From (Used in) Operating Activities	1,108	574
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(275)	(272)
Acquisitions of businesses and technologies, net of cash acquired		(13,027)
Proceeds from business disposition		5,472
Proceeds from the sale of Mylan N.V. shares		1,685
Sales (purchases) of investment securities, net	(5)	(15)
Other	42	3
Net Cash From (Used in) Investing Activities	(238)	(6,154)
Cash Flow From (Used in) Financing Activities:
Net proceeds (repayments of) short-term debt and other	6	(1,455)
Repayments of long-term debt	(5,979)	(2,505)
Payment of contingent consideration		(13)
Purchases of common shares	(128)	(95)
Proceeds from stock options exercised	137	129
Dividends paid	(491)	(460)
Net Cash From (Used in) Financing Activities	(6,455)	(4,399)
Effect of exchange rate changes on cash and cash equivalents	35	65
Net Decrease in Cash and Cash Equivalents	(5,550)	(9,914)
Cash and Cash Equivalents, Beginning of Year	9,407	18,620
Cash and Cash Equivalents, End of Period	$ 3,857	$ 8,706

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
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, 2017. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

New Accounting Standards

New Accounting Standards	3 Months Ended
	Mar. 31, 2018
New Accounting Standards
New Accounting Standards	Note 2 — New Accounting Standards Recently Adopted Accounting Standards In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost which changes the financial statement presentation requirements for pension and other postretirement benefit expense. While service cost continues to be reported in the same financial statement line items as other current employee compensation costs, the ASU requires all other components of pension and other postretirement benefit expense to be presented separately from service cost, and outside any subtotal of income from operations. Abbott adopted the standard in the first quarter of 2018 and the Condensed Consolidated Statement of Earnings was retrospectively adjusted, resulting in the reclassification of $40 million of income from Operating earnings (loss) to Other (income) expense, net in the first quarter of 2017. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash , which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning and end-of-period total amounts shown on the statement of cash flows. Abbott adopted this standard beginning in the first quarter of 2018, and applied the guidance retrospectively to all periods presented. Abbott did not have any restricted cash balances in the periods presented except for $75 million of restricted cash acquired as part of the Alere Inc. acquisition in October 2017. The restrictions on this cash were eliminated prior to the end of 2017. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires the recognition of the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. Abbott adopted the standard on January 1, 2018, using a modified retrospective approach and recorded a cumulative catch-up adjustment to Earnings employed in the business in the Condensed Consolidated Balance Sheet that was not significant. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which clarifies how companies should present and classify certain cash receipts and cash payments in the statement of cash flows. The ASU became effective for Abbott in the first quarter of 2018 and did not have a material impact to the Company’s Condensed Consolidated Statement of Cash Flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Recognition and Measurement of Financial Assets and Financial Liabilities , which provides new guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. Abbott adopted the standard on January 1, 2018. Under the new standard, changes in the fair value of equity investments with readily determinable fair values are recorded in Other (income) expense, net within the Consolidated Statement of Earnings. Previously, such fair value changes were recorded in other comprehensive income. Abbott has elected the measurement alternative allowed by ASU 2016-01 for its equity investments without readily determinable fair values. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Changes in the measurement of these investments will be recorded in Other (income) expense, net within the Statement of Earnings. As part of the adoption, the cumulative-effect adjustment to Earnings employed in the business in the Condensed Consolidated Balance Sheet for net unrealized losses on equity investments that were recorded in Accumulated other comprehensive income (loss) as of December 31, 2017 was not significant. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for accounting for revenue from contracts with customers and supersedes nearly all previously existing revenue recognition guidance. The core principle of the ASU is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Abbott adopted the new standard as of January 1, 2018, using the modified retrospective approach method. Under this method, entities recognize the cumulative effect of applying the new standard at the date of initial application with no restatement of comparative periods presented. The cumulative effect of applying the new standard resulted in an increase to Earnings employed in the business in the Condensed Consolidated Balance Sheet of $23 million which was recorded on January 1, 2018. The new standard has been applied only to those contracts that were not completed as of January 1, 2018. The impact of adopting ASU 2014-09 was not significant to individual financial statement line items in the Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Earnings. Recent Accounting Standards Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows companies to reclassify stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act, from accumulated other comprehensive income to retained earnings. The standard becomes effective for Abbott beginning in the first quarter of 2019 and early adoption is permitted. Abbott is currently evaluating the impact the new guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which makes changes to the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The standard becomes effective for Abbott beginning in the first quarter of 2019 and early adoption is permitted. Abbott is currently evaluating the effect that the new guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize assets and liabilities for most leases on the balance sheet. The standard becomes effective for Abbott beginning in the first quarter of 2019 and early adoption is permitted. Adoption requires application of the new guidance for all periods presented. Abbott is currently evaluating the impact the new guidance will have on its consolidated financial statements.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2018
Revenue
Revenue	Note 3 — Revenue Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Patent protection and licenses, technological and performance features, and inclusion of Abbott’s products under a contract most impact which products are sold; price controls, competition and rebates most impact the net selling prices of products; and foreign currency translation impacts the measurement of net sales and costs. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world. Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Cardiovascular and Neuromodulation Products. Diabetes Care is a non-reportable segment and is included in Other in the following table. The following table provides detail by sales category: 2018 2017 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ $ $ — $ $ Other — — Total — — Nutritionals — Pediatric Nutritionals Adult Nutritionals Total Diagnostics — Core Laboratory Molecular Point of Care Rapid Diagnostics — — — Total Cardiovascular and Neuromodulation — Rhythm Management Electrophysiology Heart Failure Vascular Structural Heart Neuromodulation Total Other Total $ $ $ $ $ $ Abbott recognizes revenue from product sales upon the transfer of control, which is generally upon shipment or delivery, depending on the delivery terms set forth in the customer contract. For maintenance agreements that provide service beyond Abbott’s standard warranty and other service agreements, revenue is recognized ratably over the contract term. A time-based measure of progress appropriately reflects the transfer of services to the customer. Payment terms between Abbott and its customers vary by the type of customer, country of sale, and the products or services offered. The term between invoicing and the payment due date is not significant. Management exercises judgment in estimating variable consideration. Provisions for discounts, rebates and sales incentives to customers, and returns and other adjustments are provided for in the period the related sales are recorded. Sales incentives to customers are not material. Historical data is readily available and reliable, and is used for estimating the amount of the reduction in gross sales. Abbott provides rebates to government agencies, wholesalers, group purchasing organizations and other private entities. Rebate amounts are usually based upon the volume of purchases using contractual or statutory prices for a product. Factors used in the rebate calculations include the identification of which products have been sold subject to a rebate, which customer or government agency price terms apply, and the estimated lag time between sale and payment of a rebate. Using historical trends, adjusted for current changes, Abbott estimates the amount of the rebate that will be paid, and records the liability as a reduction of gross sales when Abbott records its sale of the product. Settlement of the rebate generally occurs from one to six months after sale. Abbott regularly analyzes the historical rebate trends and makes adjustments to reserves for changes in trends and terms of rebate programs. Historically, adjustments to prior years’ rebate accruals have not been material to net income. Other allowances charged against gross sales include cash discounts and returns, which are not significant. Cash discounts are known within 15 to 30 days of sale, and therefore can be reliably estimated. Returns can be reliably estimated because Abbott’s historical returns are low, and because sales return terms and other sales terms have remained relatively unchanged for several periods. Product warranties are also not significant. Abbott also applies judgment in determining the timing of revenue recognition related to contracts that include multiple performance obligations. The total transaction price of the contract is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. For goods or services for which observable standalone selling prices are not available, Abbott uses an expected cost plus a margin approach to estimate the standalone selling price of each performance obligation. Remaining Performance Obligations As of March 31, 2018, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $2.9 billion in the Diagnostics segment and approximately $340 million in the Cardiovascular and Neuromodulation segment. Abbott expects to recognize revenue on approximately 60% of these remaining performance obligations over the next 24 months, approximately 15% over the subsequent 12 months and the remainder thereafter. These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations, extended warranty or service obligations related to previously sold equipment, and remote monitoring services related to previously implanted devices. Abbott has applied the practical expedient described in Accounting Standards Codification (ASC) 606-10-50-14 and has not included remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above. Assets Recognized for Costs to Obtain a Contract with a Customer Abbott has applied the practical expedient in ASC 340-40-25-4 and records as an expense the incremental costs of obtaining contracts with customers in the period of occurrence when the amortization period of the asset that Abbott otherwise would have recognized is one year or less. Upfront commission fees paid to sales personnel as a result of obtaining or renewing contracts with customers are incremental to obtaining the contract. Abbott capitalizes these amounts as contract costs. Capitalized commission fees are amortized based on the contract duration to which the assets relate which ranges from two to ten years. The amounts as of March 31, 2018, were not significant. Additionally, the cost of transmitters provided to customers that use Abbott’s remote monitoring service with respect to certain medical devices are capitalized as contract costs. Capitalized transmitter costs are amortized based on the timing of the transfer of services to which the assets relate, which typically ranges from eight to ten years. The amounts as of March 31, 2018, were not significant. Other Contract Assets and Liabilities Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at their net realizable value. Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and end of the period, as well as the changes in the balance, were not significant. Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. Abbott’s contract liabilities arise primarily in the cardiovascular and neuromodulation reportable segment when payment is received upfront for various multi-period extended service arrangements. Changes in the contract liabilities during the period are as follows: (in millions) March 31, Contract Liabilities 2018 Balance at January 1, 2018 $ Unearned revenue from cash received during the period Revenue recognized that was included in contract liability balance at beginning of period ) Balance at March 31, 2018 $

Discontinued Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2018
Discontinued Operations
Discontinued Operations	Note 4 — Discontinued 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. 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 related 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 reflect the recognition of a net tax benefit of $9 million and $33 million in the first quarter of 2018 and 2017, respectively, as a result of the resolution of various tax positions primarily related to AbbVie’s operations for years prior to the separation.

Assets Held for Disposition

Assets Held for Disposition	3 Months Ended
	Mar. 31, 2018
Assets Held for Disposition
Assets Held for Disposition	Note 5 — Assets Held for Disposition As discussed in Note 8 - Business Acquisitions, in conjunction with the acquisition of Alere Inc. (Alere), Abbott sold the Triage MeterPro cardiovascular and toxicology business and the assets and liabilities related to its B-type Natriuretic Peptide assay business run on Beckman Coulter analyzers to Quidel Corporation (Quidel). The legal transfer of certain assets and liabilities related to these businesses did not occur at the close of the sale to Quidel due to, among other factors, the time required to transfer marketing authorizations and other regulatory requirements in various countries. Under the terms of the sale agreement with Abbott, Quidel is subject to the risks and entitled to the benefits generated by these operations and assets. The assets presented as held for disposition in the Condensed Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017, primarily relate to the businesses sold to Quidel. (in millions) March 31, December 31, Trade receivables, net $ $ Total inventories Current assets held for disposition Net property and equipment — Intangible assets, net of amortization Goodwill Non-current assets held for disposition Total assets held for disposition $ $

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Mar. 31, 2018
Supplemental Financial Information
Supplemental Financial Information	Note 6 — 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 March 31, 2018 and 2017 were $406 million and $384 million, respectively. Net earnings allocated to common shares for the three months ended March 31, 2018 and 2017 were $415 million and $417 million, respectively. Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first three months of 2018 includes the payment of cash taxes of approximately $220 million. The first three months of 2017 includes the effect of contributions to defined benefit plans of $283 million. The first quarter of 2017 also includes the impact of approximately $430 million of tax expense related to business dispositions, partially offset by cash taxes paid of approximately $160 million. In February 2017, Abbott completed the sale of Abbott Medical Optics (AMO) to Johnson & Johnson and recognized a pre-tax gain of $1.151 billion, which is reported in Other (income) expense, net within the Condensed Consolidated Statement of Earnings in the first quarter of 2017. Abbott recorded an after-tax gain of $721 million in the first quarter of 2017 related to the sale of AMO. The operating results of AMO up through the date of sale continued to be included in Earnings from Continuing Operations as they did not qualify for reporting as discontinued operations. For the three months ended March 31, 2017, AMO’s losses before taxes were $18 million. In March 2017, Abbott sold 44 million of the ordinary shares of Mylan N.V. received upon the sale of its developed markets branded generics pharmaceuticals business to Mylan Inc. Abbott received $1.685 billion in proceeds from the sale of these shares. Abbott recorded an immaterial pre-tax gain, which was recognized in Other (income) expense, net within the Condensed Consolidated Statement of Earnings. The components of long-term investments as of March 31, 2018 and December 31, 2017 are as follows: Long-term Investments March 31, December 31, (in millions) 2018 2017 Equity securities $ $ Other Total $ $ Abbott’s equity securities as of March 31, 2018, include approximately $366 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency. Abbott also holds certain investments with a carrying value of approximately $255 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $195 million that do not have a readily determinable fair value.

Other Comprehensive Income

Other Comprehensive Income	3 Months Ended
	Mar. 31, 2018
Other Comprehensive Income
Other Comprehensive Income	Note 7 — Other Comprehensive Income The components of the changes in other comprehensive income from continuing operations, net of income taxes, are as follows: Three Months Ended March 31 (in millions) Cumulative Foreign Net Actuarial Cumulative Cumulative Gains 2018 2017 2018 2017 2018 2017 2018 2017 Balance at December 31, 2017 and 2016 $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ Reclassified to Earnings employed in the business for adoption of ASU 2016-01 — — — — — — — Impact of business dispositions — — — — — Other comprehensive (loss) income before reclassifications ) — — ) ) Amounts reclassified from accumulated other comprehensive income — — — ) Net current period comprehensive income (loss) — ) ) Balance at March 31 $ ) $ ) $ ) $ ) $ — $ $ ) $ ) Reclassified amounts for foreign currency translation are recorded in the Condensed Consolidated Statement of Earnings as Net foreign exchange (gain) loss; gains (losses) 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 is included as a component of net periodic benefit plan costs; see Note 15 for additional details.

Business Acquisitions

Business Acquisitions	3 Months Ended
	Mar. 31, 2018
Business Acquisitions
Business Acquisitions	Note 8 — Business Acquisitions On January 4, 2017, Abbott completed the acquisition of St. Jude Medical, a global medical device manufacturer, for approximately $23.6 billion, including approximately $13.6 billion in cash and approximately $10 billion in Abbott common shares, which represented approximately 254 million shares of Abbott common stock, based on Abbott’s closing stock price on the acquisition date. As part of the acquisition, approximately $5.9 billion of St. Jude Medical’s debt was assumed, repaid or refinanced by Abbott. The acquisition provides expanded opportunities for future growth and is an important part of the company’s ongoing effort to develop a strong, diverse portfolio of devices, diagnostics, nutritionals and branded generic pharmaceuticals. The combined business competes in nearly every area of the cardiovascular device market, as well as in the neuromodulation market. Under the terms of the agreement, for each St. Jude Medical common share, St. Jude Medical shareholders received $46.75 in cash and 0.8708 of an Abbott common share. At an Abbott stock price of $39.36, which reflects the closing price on January 4, 2017, this represented a value of approximately $81 per St. Jude Medical common share and total purchase consideration of $23.6 billion. The cash portion of the acquisition was funded through a combination of medium and long-term debt issued in November 2016 and a $2.0 billion 120-day senior unsecured bridge term loan facility which was subsequently repaid. In 2016, Abbott and St. Jude Medical agreed to sell certain businesses to Terumo Corporation (Terumo) for approximately $1.12 billion. The sale included the St. Jude Medical Angio-Seal™ and Femoseal™ vascular closure and Abbott’s Vado® Steerable Sheath businesses. The sale closed on January 20, 2017 and no gain or loss was recorded in the Condensed Consolidated Statement of Earnings. On October 3, 2017, Abbott acquired Alere Inc. (Alere), a diagnostic device and service provider, for $51.00 per common share in cash, which equated to a purchase price of approximately $4.5 billion. As part of the acquisition, Abbott tendered for Alere’s preferred shares for a total value of approximately $0.7 billion. In addition, approximately $3.0 billion of Alere’s debt was assumed and subsequently repaid. The acquisition establishes Abbott as a leader in point of care testing, expands Abbott’s global diagnostics presence and provides access to new products, channels and geographies. Abbott utilized a combination of cash on hand and debt to fund the acquisition. The preliminary allocation of the fair value of the Alere acquisition is shown in the table below. The allocation of the fair value of the acquisition will be finalized when the valuation is completed and differences between the preliminary and final allocation could be material. (in billions) Acquired intangible assets, non-deductible $ Goodwill, non-deductible Acquired net tangible assets Deferred income taxes recorded at acquisition ) Net debt ) Preferred stock ) Total preliminary allocation of fair value $ The goodwill is primarily attributable to expected synergies from combining operations, as well as intangible assets that do not qualify for separate recognition. The goodwill is identifiable to the Diagnostic Products reportable segment. The acquired tangible assets consist primarily of trade accounts receivable of approximately $430 million, inventory of approximately $425 million, other current assets of $206 million, property and equipment of approximately $540 million, and other long-term assets of $112 million. The acquired tangible liabilities consist of trade accounts payable and other current liabilities of approximately $625 million and other non-current liabilities of approximately $160 million. In the third quarter of 2017, Alere entered into agreements to sell its Triage MeterPro cardiovascular and toxicology business and the assets and liabilities related to its B-type Natriuretic Peptide assay business run on Beckman Coulter analyzers to Quidel Corporation (Quidel). The transactions with Quidel reflect a total purchase price of $400 million payable at the close of the transaction, $240 million payable in six annual installments beginning approximately six months after the close of the transaction, and contingent consideration with a maximum value of $40 million. In the third quarter of 2017, Alere entered into an agreement with Siemens Diagnostics Holding II B.V. (Siemens) to sell its subsidiary, Epocal Inc., for approximately $200 million payable at the close of the transaction. Alere agreed to divest these businesses in connection with the review by the Federal Trade Commission and the European Commission of Abbott’s agreement to acquire Alere. The sale to Quidel closed on October 6, 2017, and the sale to Siemens closed on October 31, 2017. No gain or loss on these sales was recorded in the Consolidated Statement of Earnings. On July 17, 2017, Abbott commenced a tender offer to purchase for cash the 1.77 million outstanding shares of Alere’s Series B Convertible Perpetual Preferred Stock at a price of $402 per share, plus accrued but unpaid dividends to, but not including, the settlement date of the tender offer. This tender offer was subject to the satisfaction of certain conditions, including Abbott’s acquisition of Alere and upon there being validly tendered (and not properly withdrawn) at the expiration date of the tender offer that number of shares of Preferred Stock that equaled at least a majority of the Preferred Stock issued and outstanding at the expiration of the tender offer. The tender offer expired on October 3, 2017. All conditions to the offer were satisfied and Abbott accepted for payment the 1.748 million shares of Preferred Stock that were validly tendered (and not properly withdrawn). The remaining shares were cashed out for an amount equal to the $400.00 per share liquidation preference of such shares, plus accrued but unpaid dividends, without interest. Payment for all of the shares of Preferred Stock was made in the fourth quarter of 2017.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 9 — Goodwill and Intangible Assets The total amount of goodwill reported was $24.2 billion at March 31, 2018 and $24.0 billion at December 31, 2017. The amounts reported at March 31, 2018 and December 31, 2017 exclude goodwill reported in non-current assets held for disposition. Foreign currency translation adjustments increased goodwill by approximately $204 million in the first quarter of 2018. The amount of goodwill related to reportable segments at March 31, 2018 was $3.3 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $4.1 billion for the Diagnostic Products segment, and $15.6 billion for the Cardiovascular and Neuromodulation Products segment. There was no reduction of goodwill relating to impairments in the first quarter of 2018. The gross amount of amortizable intangible assets, primarily product rights and technology was $25.8 billion as of March 31, 2018 and $25.6 billion as of December 31, 2017, and accumulated amortization was $8.7 billion as of March 31, 2018 and $8.1 billion as of December 31, 2017. Purchase price allocation adjustments and foreign currency translation adjustments increased intangible assets by $100 million and $53 million, respectively, during the quarter. The March 31, 2018 and December 31, 2017 amounts exclude net intangible assets reported in non-current assets held for disposition. Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, were approximately $3.8 billion and $3.9 billion as of March 31, 2018 and December 31, 2017, respectively. The decrease in indefinite-lived intangible assets during the quarter relates to purchase price allocation adjustments associated with the Alere acquisition. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.4 billion in 2018, $2.3 billion in 2019, $2.1 billion in 2020, $2.0 billion in 2021 and $2.0 billion in 2022. Amortizable intangible assets are amortized over 2 to 20 years (weighted average 14 years).

Restructuring Plans

Restructuring Plans	3 Months Ended
	Mar. 31, 2018
Restructuring Plans
Restructuring Plans	Note 10 — Restructuring Plans In 2017 and 2018, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the cardiovascular and neuromodulation segment and Alere into the diagnostics segment, in order to leverage economies of scale and reduce costs. In the first three months of 2018, charges of approximately $23 million, including one-time employee termination benefits were recognized, of which approximately $3 million is recorded in Cost of products sold, approximately $8 million is recorded in Research and development and approximately $12 million as Selling, general and administrative expense. The following summarizes the activity for the first three months of 2018 related to these actions and the status of the related accrual as of March 31, 2018: (in millions) Accrued balance at December 31, 2017 $ Restructuring charges recorded in 2018 Payments and other adjustments ) Accrued balance at March 31, 2018 $ From 2014 to 2018, 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 three months of 2018, charges of approximately $10 million were recognized, of which approximately $7 million is recorded in Cost of products sold and approximately $3 million as Selling, general and administrative expense. The following summarizes the activity for the first three months of 2018 related to these restructuring actions and the status of the related accrual as of March 31, 2018: (in millions) Accrued balance at December 31, 2017 $ Restructuring charges recorded in 2018 Payments and other adjustments ) Accrued balance at March 31, 2018 $

Incentive Stock Programs

Incentive Stock Programs	3 Months Ended
	Mar. 31, 2018
Incentive Stock Programs
Incentive Stock Programs	Note 11 — Incentive Stock Programs In the first three months of 2018, Abbott granted 5,505,363 stock options, 861,129 restricted stock awards and 7,652,605 restricted stock units under its incentive stock programs. At March 31, 2018, approximately 143 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at March 31, 2018 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 March 31, 2018 amounted to approximately $589 million which is expected to be recognized over the next three years.

Debt and Lines of Credit

Debt and Lines of Credit	3 Months Ended
	Mar. 31, 2018
Debt and Lines of Credit
Debt and Lines of Credit	Note 12 — Debt and Lines of Credit On January 5, 2018, Abbott paid off its $2.8 billion 5-year term loan and the remaining $1.150 billion balance under its revolving credit agreement. On February 16, 2018, the board of directors authorized the redemption of up to $5 billion of currently outstanding long-term notes in addition to the $3.95 billion repaid in January 2018. On March 22, 2018, Abbott redeemed all of the $947 million principal amount of its 5.125% Notes due 2019, as well as $1.055 billion of the $2.850 billion principal amount of its 2.35% Notes due 2019. Abbott incurred a net charge of $14 million related to the early repayment of this debt.

Financial Instruments, Derivati

Financial Instruments, Derivatives and Fair Value Measures	3 Months Ended
	Mar. 31, 2018
Financial Instruments, Derivatives and Fair Value Measures
Financial Instruments, Derivatives and Fair Value Measures	Note 13 — 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 gross notional amounts totaling $3.0 billion at March 31, 2018 and $3.3 billion at December 31, 2017 are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value. Accumulated gains and losses as of March 31, 2018 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 2018 and 2017. 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 including the British pound, in exchange for primarily U.S. dollars and other European currencies. For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar and European currencies. At March 31, 2018 and December 31, 2017, Abbott held the gross notional amount of $18.1 billion and $20.1 billion, respectively, of such foreign currency forward exchange contracts. Abbott is a party to interest rate hedge contracts totaling approximately $4.0 billion at March 31, 2018 and December 31, 2017 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. The amount of hedge ineffectiveness was not significant in 2018 and 2017. The following table summarizes the amounts and location of certain derivative financial instruments as of March 31, 2018 and December 31, 2017: Fair Value - Assets Fair Value - Liabilities (in millions) March 31, Dec. 31, Balance Sheet Caption March 31, Dec. 31, 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 and other receivables Other accrued liabilities Others not designated as hedges Prepaid expenses and other receivables Other accrued liabilities $ $ $ $ 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 the amounts and location of income (expense) and gain (loss) reclassified into income in the first three months of 2018 and 2017 and for certain other derivative financial instruments. The amount of hedge ineffectiveness was not significant in 2018 and 2017 for these hedges. Gain (loss) Recognized in Income (expense) and (in millions) 2018 2017 2018 2017 Income Statement 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 Interest rate swaps designated as fair value hedges n/a n/a ) ) Interest expense Losses of $48 million and gains of $9 million were recognized in the first three months of 2018 and 2017, respectively, related to foreign currency forward exchange contracts not designated as hedges. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line. 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 March 31, 2018 and December 31, 2017 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. March 31, 2018 December 31, 2017 (in millions) Carrying Fair Carrying Fair Investment Securities: Equity securities $ $ $ $ Other Total Long-term Debt ) ) ) ) Foreign Currency Forward Exchange Contracts: Receivable position (Payable) position ) ) ) ) Interest Rate Hedge Contracts: (Payable) position ) ) ) ) The fair value of the debt was determined based on significant other observable inputs, including current interest rates. The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet: Basis of Fair Value Measurement (in millions) Outstanding Quoted Significant Significant March 31, 2018: Equity securities $ $ $ — $ — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $ December 31, 2017: Equity securities $ $ $ — $ — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $ 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.

Litigation and Environmental Ma

Litigation and Environmental Matters	3 Months Ended
	Mar. 31, 2018
Litigation and Environmental Matters
Litigation and Environmental Matters	Note 14 — Litigation and Environmental Matters Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $10 million. 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 $90 million to $135 million. The recorded accrual balance at March 31, 2018 for these proceedings and exposures was approximately $110 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	3 Months Ended
	Mar. 31, 2018
Post-Employment Benefits
Post-Employment Benefits	Note 15 — 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 ended March 31 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans (in millions) March 31, March 31, March 31, March 31, 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) — — ) ) Net cost — continuing operations $ $ $ $ In the first quarter of 2018, Abbott adopted ASU 2017-07 which requires all components of pension and other postretirement benefit expense except service cost to be presented outside any subtotal of income from operations. These amounts are now classified as non-operating (income) loss. Abbott’s Condensed Consolidated Statement of Earnings was retrospectively adjusted, resulting in the reclassification of $40 million of income from the Operating earnings (loss) line to the Other (income) expense, net line in the first quarter of 2017. In the first quarter of 2017, Abbott recognized a $10 million curtailment gain related to the disposition of AMO. Abbott funds its domestic defined benefit plans according to IRS funding limitations. International pension plans are funded according to similar regulations. In the first quarters of 2018 and 2017, $14 million and $283 million, respectively, were contributed to defined benefit plans and $11 million in both years were contributed to the post-employment medical and dental benefit plans.

Taxes on Earnings

Taxes on Earnings	3 Months Ended
	Mar. 31, 2018
Taxes on Earnings
Taxes on Earnings	Note 16 — 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 quarter of 2018, taxes on earnings from continuing operations include approximately $65 million in excess tax benefits associated with share-based compensation. Earnings from discontinued operations, net of tax, in the first quarter of 2018 reflect the recognition of $9 million of net tax benefits primarily as a result of the resolution of various tax positions related to prior years which decreased the gross amount of unrecognized tax benefits by $16 million. In the first quarter of 2017, taxes on earnings from continuing operations include $430 million of tax expense related to the gain on the sale of the AMO business, which was taxed at a discrete tax rate. Earnings from discontinued operations, net of tax, in the first quarter of 2017 reflected the recognition of $33 million of net tax benefits primarily as a result of the resolution of various tax positions related to prior years which decreased the gross amount of unrecognized tax benefits by $33 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 $150 million to $300 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 2013 are settled except for the federal income tax returns of the former Alere consolidated group which are settled through 2012. The Tax Cuts and Jobs Act (“TCJA”) was enacted in the U.S. on December 22, 2017. The TCJA reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. In the fourth quarter of 2017, Abbott recorded an estimate of net tax expense of $1.46 billion for the impact of the TCJA, which was included in Taxes on Earnings from Continuing Operations in the Consolidated Statement of Earnings. The estimate was provisional and included a charge of approximately $2.89 billion for the transition tax, partially offset by a net benefit of approximately $1.42 billion for the remeasurement of deferred tax assets and liabilities and a net benefit of approximately $10 million related to certain other impacts of the TCJA. In the first quarter of 2018, Abbott recorded a $15 million adjustment to the provisional transition tax liability for associated effects related to state tax. This adjustment increases the estimate of net tax expense for the impact of TCJA to $1.475 billion. Given the significant complexity of the TCJA, Abbott will continue to evaluate and analyze the impact of this legislation. The $1.475 billion estimate is provisional and is based on Abbott’s latest analysis of the TCJA and may be materially adjusted in future periods due to among other things, additional analysis performed by Abbott and additional guidance that may be issued by the U.S. Department of Treasury, the Securities and Exchange Commission, or the Financial Accounting Standards Board.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Information
Segment Information	Note 17 — 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, Rapid Diagnostics, Molecular Diagnostics and Point of Care Diagnostics divisions are aggregated and reported as the Diagnostic Products segment. Cardiovascular and Neuromodulation Products — Worldwide sales of cardiac rhythm management, electrophysiology, heart failure, vascular, structural heart and neuromodulation products. For segment reporting purposes, the Cardiac Arrhythmias & Heart Failure, Vascular, Neuromodulation and Structural Heart divisions are aggregated and reported as the Cardiovascular and Neuromodulation segment. Non-reportable segments include AMO through the date of sale and Diabetes Care. 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 is not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements. Three Months Ended March 31 Net Sales to Operating (in millions) 2018 2017 2018 2017 Established Pharmaceutical Products $ $ $ $ Nutritional Products Diagnostic Products Cardiovascular and Neuromodulation 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) ) Earnings from continuing operations before taxes $ $ (a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net in 2018 includes inventory step-up amortization, restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Other, net in 2017 includes the gain on the sale of the AMO business, partially offset by inventory step-up amortization, restructuring charges and integration costs associated with the acquisition of St. Jude Medical.

New Accounting Standards (Polic

New Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2018
New Accounting Standards
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost which changes the financial statement presentation requirements for pension and other postretirement benefit expense. While service cost continues to be reported in the same financial statement line items as other current employee compensation costs, the ASU requires all other components of pension and other postretirement benefit expense to be presented separately from service cost, and outside any subtotal of income from operations. Abbott adopted the standard in the first quarter of 2018 and the Condensed Consolidated Statement of Earnings was retrospectively adjusted, resulting in the reclassification of $40 million of income from Operating earnings (loss) to Other (income) expense, net in the first quarter of 2017. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash , which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning and end-of-period total amounts shown on the statement of cash flows. Abbott adopted this standard beginning in the first quarter of 2018, and applied the guidance retrospectively to all periods presented. Abbott did not have any restricted cash balances in the periods presented except for $75 million of restricted cash acquired as part of the Alere Inc. acquisition in October 2017. The restrictions on this cash were eliminated prior to the end of 2017. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires the recognition of the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. Abbott adopted the standard on January 1, 2018, using a modified retrospective approach and recorded a cumulative catch-up adjustment to Earnings employed in the business in the Condensed Consolidated Balance Sheet that was not significant. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which clarifies how companies should present and classify certain cash receipts and cash payments in the statement of cash flows. The ASU became effective for Abbott in the first quarter of 2018 and did not have a material impact to the Company’s Condensed Consolidated Statement of Cash Flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Recognition and Measurement of Financial Assets and Financial Liabilities , which provides new guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. Abbott adopted the standard on January 1, 2018. Under the new standard, changes in the fair value of equity investments with readily determinable fair values are recorded in Other (income) expense, net within the Consolidated Statement of Earnings. Previously, such fair value changes were recorded in other comprehensive income. Abbott has elected the measurement alternative allowed by ASU 2016-01 for its equity investments without readily determinable fair values. These investments are measured at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Changes in the measurement of these investments will be recorded in Other (income) expense, net within the Statement of Earnings. As part of the adoption, the cumulative-effect adjustment to Earnings employed in the business in the Condensed Consolidated Balance Sheet for net unrealized losses on equity investments that were recorded in Accumulated other comprehensive income (loss) as of December 31, 2017 was not significant. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for accounting for revenue from contracts with customers and supersedes nearly all previously existing revenue recognition guidance. The core principle of the ASU is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Abbott adopted the new standard as of January 1, 2018, using the modified retrospective approach method. Under this method, entities recognize the cumulative effect of applying the new standard at the date of initial application with no restatement of comparative periods presented. The cumulative effect of applying the new standard resulted in an increase to Earnings employed in the business in the Condensed Consolidated Balance Sheet of $23 million which was recorded on January 1, 2018. The new standard has been applied only to those contracts that were not completed as of January 1, 2018. The impact of adopting ASU 2014-09 was not significant to individual financial statement line items in the Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Earnings.
Recent Accounting Standards Not Yet Adopted	Recent Accounting Standards Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows companies to reclassify stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act, from accumulated other comprehensive income to retained earnings. The standard becomes effective for Abbott beginning in the first quarter of 2019 and early adoption is permitted. Abbott is currently evaluating the impact the new guidance will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which makes changes to the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The standard becomes effective for Abbott beginning in the first quarter of 2019 and early adoption is permitted. Abbott is currently evaluating the effect that the new guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize assets and liabilities for most leases on the balance sheet. The standard becomes effective for Abbott beginning in the first quarter of 2019 and early adoption is permitted. Adoption requires application of the new guidance for all periods presented. Abbott is currently evaluating the impact the new guidance will have on its consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue
Schedule of reportable segment included under sales category	2018 2017 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ $ $ — $ $ Other — — Total — — Nutritionals — Pediatric Nutritionals Adult Nutritionals Total Diagnostics — Core Laboratory Molecular Point of Care Rapid Diagnostics — — — Total Cardiovascular and Neuromodulation — Rhythm Management Electrophysiology Heart Failure Vascular Structural Heart Neuromodulation Total Other Total $ $ $ $ $ $
Schedule of changes in contract liabilities	(in millions) March 31, Contract Liabilities 2018 Balance at January 1, 2018 $ Unearned revenue from cash received during the period Revenue recognized that was included in contract liability balance at beginning of period ) Balance at March 31, 2018 $

Assets Held for Disposition (Ta

Assets Held for Disposition (Tables)	3 Months Ended
	Mar. 31, 2018
Assets Held for Disposition
Summary of assets held for disposition	(in millions) March 31, December 31, Trade receivables, net $ $ Total inventories Current assets held for disposition Net property and equipment — Intangible assets, net of amortization Goodwill Non-current assets held for disposition Total assets held for disposition $ $

Supplemental Financial Inform28

Supplemental Financial Information (Tables)	3 Months Ended
	Mar. 31, 2018
Supplemental Financial Information
Schedule of long-term investments	Long-term Investments March 31, December 31, (in millions) 2018 2017 Equity securities $ $ Other Total $ $

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2018
Other Comprehensive Income
Schedule of other comprehensive income	Three Months Ended March 31 (in millions) Cumulative Foreign Net Actuarial Cumulative Cumulative Gains 2018 2017 2018 2017 2018 2017 2018 2017 Balance at December 31, 2017 and 2016 $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ Reclassified to Earnings employed in the business for adoption of ASU 2016-01 — — — — — — — Impact of business dispositions — — — — — Other comprehensive (loss) income before reclassifications ) — — ) ) Amounts reclassified from accumulated other comprehensive income — — — ) Net current period comprehensive income (loss) — ) ) Balance at March 31 $ ) $ ) $ ) $ ) $ — $ $ ) $ )

Business Acquisitions (Tables)

Business Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2018
Alere Inc
Business Acquisitions
Schedule of allocation of 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 ) Net debt ) Preferred stock ) Total preliminary allocation of fair value $

Restructuring Plans (Tables)

Restructuring Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Restructuring Plan in 2017 and 2018
Restructuring costs
Summary of restructuring activity	(in millions) Accrued balance at December 31, 2017 $ Restructuring charges recorded in 2018 Payments and other adjustments ) Accrued balance at March 31, 2018 $
Restructuring Plan from 2014 to 2018
Restructuring costs
Summary of restructuring activity	(in millions) Accrued balance at December 31, 2017 $ Restructuring charges recorded in 2018 Payments and other adjustments ) Accrued balance at March 31, 2018 $

Incentive Stock Programs (Table

Incentive Stock Programs (Tables)	3 Months Ended
	Mar. 31, 2018
Incentive Stock Programs
Schedule of 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, Deriva33

Financial Instruments, Derivatives and Fair Value Measures (Tables)	3 Months Ended
	Mar. 31, 2018
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) March 31, Dec. 31, Balance Sheet Caption March 31, Dec. 31, 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 and other receivables Other accrued liabilities Others not designated as hedges Prepaid expenses and other receivables Other accrued liabilities $ $ $ $
Schedule of derivatives gain (loss) in OCI and earnings	Gain (loss) Recognized in Income (expense) and (in millions) 2018 2017 2018 2017 Income Statement 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 Interest rate swaps designated as fair value hedges n/a n/a ) ) Interest expense
Schedule of carrying values and fair values of certain financial instruments	March 31, 2018 December 31, 2017 (in millions) Carrying Fair Carrying Fair Investment Securities: Equity securities $ $ $ $ Other Total Long-term Debt ) ) ) ) Foreign Currency Forward Exchange Contracts: Receivable position (Payable) position ) ) ) ) Interest Rate Hedge Contracts: (Payable) position ) ) ) )
Schedule of assets and liabilities measured at fair value on a recurring basis	Basis of Fair Value Measurement (in millions) Outstanding Quoted Significant Significant March 31, 2018: Equity securities $ $ $ — $ — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $ December 31, 2017: Equity securities $ $ $ — $ — Foreign currency forward exchange contracts — — Total Assets $ $ $ $ — Fair value of hedged long-term debt $ $ — $ $ — Interest rate swap derivative financial instruments — — Foreign currency forward exchange contracts — — Contingent consideration related to business combinations — — Total Liabilities $ $ — $ $

Post-Employment Benefits (Table

Post-Employment Benefits (Tables)	3 Months Ended
	Mar. 31, 2018
Post-Employment Benefits
Schedule of components of the net periodic benefit cost for the entity's major defined benefit plans and post-employment medical and dental benefit plans	Defined Benefit Plans Medical and Dental Plans (in millions) March 31, March 31, March 31, March 31, 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) — — ) ) Net cost — continuing operations $ $ $ $

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Information
Schedule of segment information - net sales and operating earnings	Three Months Ended March 31 Net Sales to Operating (in millions) 2018 2017 2018 2017 Established Pharmaceutical Products $ $ $ $ Nutritional Products Diagnostic Products Cardiovascular and Neuromodulation 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) ) Earnings from continuing operations before taxes $ $ (a) Approximately 50 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net in 2018 includes inventory step-up amortization, restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Other, net in 2017 includes the gain on the sale of the AMO business, partially offset by inventory step-up amortization, restructuring charges and integration costs associated with the acquisition of St. Jude Medical.

New Accounting Standards (Detai

New Accounting Standards (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Oct. 31, 2017
Recently Adopted Accounting Standards
Retained earnings		$ 23,856		$ 23,978
ASU 2017-07
Recently Adopted Accounting Standards
Reclassification of operating earnings (loss) to other (income) expense, net	$ 40
Alere Inc | ASU 2016-18
Recently Adopted Accounting Standards
Restricted cash acquired					$ 75
Cumulative Effect | ASU 2014-09
Recently Adopted Accounting Standards
Retained earnings			$ 23

Revenue (Details)

Revenue (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)
Revenue
Number of reportable segments | segment	4
Net sales	$ 7,390	$ 6,335
Minimum
Revenue
Number of period for settlement of rebate after sale	1 month
Number of period for cash discounts	15 days
Maximum
Revenue
Number of period for settlement of rebate after sale	6 months
Number of period for cash discounts	30 days
U.S.
Revenue
Net sales	$ 2,675	2,324
Int'l
Revenue
Net sales	4,715	4,011
Established Pharmaceutical Products
Revenue
Net sales	1,044	950
Established Pharmaceutical Products | Int'l
Revenue
Net sales	1,044	950
Nutritional Products
Revenue
Net sales	1,756	1,642
Nutritional Products | U.S.
Revenue
Net sales	758	730
Nutritional Products | Int'l
Revenue
Net sales	998	912
Diagnostic Products
Revenue
Net sales	1,837	1,158
Diagnostic Products | U.S.
Revenue
Net sales	700	371
Diagnostic Products | Int'l
Revenue
Net sales	1,137	787
Cardiovascular and Neuromodulation Products
Revenue
Net sales	2,323	2,103
Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	1,123	1,061
Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	1,200	1,042
Other
Revenue
Net sales	430	482
Other | U.S.
Revenue
Net sales	94	162
Other | Int'l
Revenue
Net sales	336	320
Key Emerging Markets | Established Pharmaceutical Products
Revenue
Net sales	793	730
Key Emerging Markets | Established Pharmaceutical Products | Int'l
Revenue
Net sales	793	730
Other | Established Pharmaceutical Products
Revenue
Net sales	251	220
Other | Established Pharmaceutical Products | Int'l
Revenue
Net sales	251	220
Pediatric Nutritionals | Nutritional Products
Revenue
Net sales	994	927
Pediatric Nutritionals | Nutritional Products | U.S.
Revenue
Net sales	448	432
Pediatric Nutritionals | Nutritional Products | Int'l
Revenue
Net sales	546	495
Adult Nutritionals | Nutritional Products
Revenue
Net sales	762	715
Adult Nutritionals | Nutritional Products | U.S.
Revenue
Net sales	310	298
Adult Nutritionals | Nutritional Products | Int'l
Revenue
Net sales	452	417
Core Laboratory | Diagnostic Products
Revenue
Net sales	1,019	911
Core Laboratory | Diagnostic Products | U.S.
Revenue
Net sales	228	216
Core Laboratory | Diagnostic Products | Int'l
Revenue
Net sales	791	695
Molecular | Diagnostic Products
Revenue
Net sales	118	112
Molecular | Diagnostic Products | U.S.
Revenue
Net sales	39	45
Molecular | Diagnostic Products | Int'l
Revenue
Net sales	79	67
Point of Care | Diagnostic Products
Revenue
Net sales	141	135
Point of Care | Diagnostic Products | U.S.
Revenue
Net sales	110	110
Point of Care | Diagnostic Products | Int'l
Revenue
Net sales	31	25
Rapid Diagnostics | Diagnostic Products
Revenue
Net sales	559
Rapid Diagnostics | Diagnostic Products | U.S.
Revenue
Net sales	323
Rapid Diagnostics | Diagnostic Products | Int'l
Revenue
Net sales	236
Rhythm Management | Cardiovascular and Neuromodulation Products
Revenue
Net sales	535	511
Rhythm Management | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	264	260
Rhythm Management | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	271	251
Electrophysiology | Cardiovascular and Neuromodulation Products
Revenue
Net sales	391	316
Electrophysiology | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	182	145
Electrophysiology | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	209	171
Heart Failure | Cardiovascular and Neuromodulation Products
Revenue
Net sales	153	142
Heart Failure | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	114	109
Heart Failure | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	39	33
Vascular | Cardiovascular and Neuromodulation Products
Revenue
Net sales	739	703
Vascular | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	286	304
Vascular | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	453	399
Structural Heart | Cardiovascular and Neuromodulation Products
Revenue
Net sales	293	256
Structural Heart | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	109	107
Structural Heart | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	184	149
Neuromodulation | Cardiovascular and Neuromodulation Products
Revenue
Net sales	212	175
Neuromodulation | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	168	136
Neuromodulation | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	$ 44	$ 39

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Diagnostic Products
Remaining Performance Obligations
Remaining performance obligations	$ 2,900
Cardiovascular and Neuromodulation Products
Remaining Performance Obligations
Remaining performance obligations	$ 340
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized in period	60.00%
Expected timing of satisfication period (in months)	24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized in period	15.00%
Expected timing of satisfication period (in months)	12 months

Revenue - Practical Expedient (

Revenue - Practical Expedient (Details)	3 Months Ended
	Mar. 31, 2018
Revenue
Revenue, Practical Expedient, Initial Application and Transition, Completed Contract, Same Reporting Period [true/false]	true
Practical expedient in remaining performance obligations related to contracts	true
Practical expedient in incremental costs of obtaining contracts with customers	true

Revenue - Assets Recognized for

Revenue - Assets Recognized for Costs to Obtain a Contract with a Customer (Details)	3 Months Ended
	Mar. 31, 2018
Capitalized commission fees | Minimum
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	2 years
Capitalized commission fees | Maximum
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	10 years
Capitalized transmitter costs | Minimum
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	8 years
Capitalized transmitter costs | Maximum
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	10 years

Revenue - Other Contract Assets

Revenue - Other Contract Assets and Liabilities (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Contract Liabilities
Beginning Balance	$ 198
Unearned revenue from cash received during the period	84
Revenue recognized that was included in contract liability balance at beginning of period	(43)
Ending Balance	$ 239

Discontinued Operations - By Di

Discontinued Operations - By Disposal (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Discontinued Operations
Earnings from discontinued operations, net of tax	$ 9	$ 33
AbbVie Inc.
Discontinued Operations
Earnings from discontinued operations, net of tax	$ 9	$ 33

Assets Held for Disposition (De

Assets Held for Disposition (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Disposals as part of acquisitions
Current assets held for disposition	$ 20	$ 20
Triage MeterPro cardiovascular and toxicology business | Dispositions held for sale
Disposals as part of acquisitions
Trade receivables, net	15	12
Total inventories	5	8
Current assets held for disposition	20	20
Net property and equipment		56
Intangible assets, net of amortization	18	18
Goodwill	102	102
Non-current assets held for disposition	120	176
Total assets held for disposition	$ 140	$ 196

Supplemental Financial Inform44

Supplemental Financial Information - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplemental Financial Information
Earnings from continuing operations allocated to common shares	$ 406	$ 384
Net earnings allocated to common shares	$ 415	$ 417

Supplemental Financial Inform45

Supplemental Financial Information - Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flow disclosures
Payment of cash taxes	$ 220	$ 160
AMO | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Cash flow disclosures
Tax expense (benefit) on gain or loss on sale of business		430
Defined Benefit Plans
Cash flow disclosures
Company contributions	$ 14	$ 283

Supplemental Financial Inform46

Supplemental Financial Information - Other income and expense (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended		3 Months Ended
	Mar. 31, 2017	Feb. 28, 2017	Mar. 31, 2018	Mar. 31, 2017
Disclosures
Earnings (losses) before taxes			$ 431	$ 736
Proceeds from the sale of Mylan N.V. shares				1,685
Equity securities | Mylan N. V. (Investee)
Disclosures
Proceeds from the sale of Mylan N.V. shares	$ 1,685
Developed markets branded generics pharmaceuticals business | Mylan | Mylan N. V. (Investee)
Disclosures
Number of shares in investment sold	44
AMO | Dispositions held for sale
Disclosures
After tax gain				721
Earnings (losses) before taxes				$ (18)
AMO | Dispositions held for sale | Other (income) expense, net
Disclosures
Pre-tax gain on sale of disposal group		$ 1,151

Supplemental Financial Inform47

Supplemental Financial Information - Investments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investments
Long-term Investments	$ 913	$ 883
Equity method investments carrying value	255
Equity method investments fair value not determinable	195
Equity securities
Investments
Long-term Investments	830	797
Equity securities | St Jude Medical
Investments
Securities in mutual funds held in a rabbi trust	366
Other
Investments
Long-term Investments	$ 83	$ 86

Other Comprehensive Income (Det

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other comprehensive income from continuing operations, net of income taxes
Beginning of Year	$ 30,897
Other comprehensive income	324	$ 582
End of Year	31,399
Cumulative Foreign Currency Translation Adjustments
Other comprehensive income from continuing operations, net of income taxes
Beginning of Year	(3,452)	(4,959)
Impact of business dispositions		142
Other comprehensive income (loss) before reclassifications	333	533
Other comprehensive income	333	533
End of Year	(3,119)	(4,284)
Net Actuarial Losses and Prior Service Costs and Credits
Other comprehensive income from continuing operations, net of income taxes
Beginning of Year	(2,521)	(2,284)
Impact of business dispositions		6
Other comprehensive income (loss) before reclassifications	(10)
Amounts reclassified from accumulated other comprehensive income	33	34
Other comprehensive income	23	34
End of Year	(2,498)	(2,244)
Cumulative Unrealized Gains (Losses) on Marketable Equity Securities
Other comprehensive income from continuing operations, net of income taxes
Beginning of Year	(5)	(69)
Other comprehensive income (loss) before reclassifications		181
Amounts reclassified from accumulated other comprehensive income		(101)
Other comprehensive income		80
End of Year		11
Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges
Other comprehensive income from continuing operations, net of income taxes
Beginning of Year	(84)	49
Impact of business dispositions		1
Other comprehensive income (loss) before reclassifications	(52)	(69)
Amounts reclassified from accumulated other comprehensive income	20	4
Other comprehensive income	(32)	(65)
End of Year	(116)	$ (15)
ASU 2016-01 | Cumulative Unrealized Gains (Losses) on Marketable Equity Securities
Other comprehensive income from continuing operations, net of income taxes
Reclassified to Earnings employed in the business for adoption of ASU 2016-01	$ 5

Business Acquisitions - St. Jud

Business Acquisitions - St. Jude (Details) - USD ($) $ / shares in Units, $ in Millions	Jan. 05, 2018	Jan. 20, 2017	Jan. 04, 2017	Mar. 31, 2017	Dec. 31, 2016
Business acquisitions
Maturity period	5 years
Disposals as part of acquisitions
Gain or loss on sale				$ 1,151
St Jude Medical
Business acquisitions
Total consideration for business acquisition			$ 23,600
Cash paid for business acquisition			13,600
Issue of equity for business acquisition			$ 10,000
Number of equity shares issued for business acquisition			254,000,000
Debt assumed and subsequently repaid or refinanced			$ 5,900
Share price of shares received in acquisition per agreement (in dollars per share)			$ 46.75
Share received (in shares)			0.8708
Stock price (in dollars per share)			$ 39.36
Expected value per common share (in dollars per share)			$ 81
St. Jude Medical Angio-Seal and Femoseal vascular closure and Abbott's Vado Steerable Sheath businesses | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposals as part of acquisitions
Proceeds from sale of businesses					$ 1,120
Gain or loss on sale		$ 0
120-day senior unsecured bridge term loan | St Jude Medical
Business acquisitions
Proceeds from bridge loan			$ 2,000
Maturity period			120 days

Business Acquisitions - Alere I

Business Acquisitions - Alere Inc. (Details) $ / shares in Units, $ in Millions	Oct. 03, 2017USD ($)$ / shares	Mar. 31, 2018USD ($)	Sep. 30, 2017USD ($)installment	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Allocation of the fair value
Goodwill, non-deductible		$ 24,227			$ 24,020
Disposals as part of acquisitions
Gain or loss on sale				$ 1,151
Alere Inc
Business acquisitions
Share price of shares received in acquisition per agreement (in dollars per share) | $ / shares	$ 51
Issue of equity for business acquisition	$ 4,500
Debt assumed and subsequently repaid or refinanced	3,000
Allocation of the fair value
Acquired intangible assets, non-deductible	3,500
Goodwill, non-deductible	4,100
Acquired net tangible assets	900
Deferred income taxes recorded at acquisition	(700)
Net debt	(2,600)
Preferred stock	(700)
Total preliminary allocation of fair value	4,500
Trade accounts receivable	430
Inventory	425
Other current assets	206
Property and equipment	540
Other long-term assets	112
Trade accounts payable and other current liabilities	625
Other non-current liabilities	$ 160
Disposal Group, held for disposition | Alere Inc
Disposals as part of acquisitions
Gain or loss on sale		$ 0
Triage MeterPro Business | Disposal Group, held for disposition | Alere Inc
Disposals as part of acquisitions
Sale consideration			$ 400
Sale consideration receivable in annual installments			$ 240
Number of installments | installment			6
Triage MeterPro Business | Disposal Group, held for disposition | Alere Inc | Maximum
Disposals as part of acquisitions
Contingent consideration asset			$ 40
Epocal Inc. | Disposal Group, held for disposition | Alere Inc
Disposals as part of acquisitions
Sale consideration			$ 200

Business Acquisitions - Alere P

Business Acquisitions - Alere Preferred Stock Tender Offer (Details) - Convertible Perpetual Preferred Stock, Series B - Alere Inc - $ / shares shares in Thousands	Oct. 03, 2017	Jul. 17, 2017	Dec. 31, 2017
Acquisitions - other disclosures
Number of shares of stock to be acquired for cash per a tender offer (in shares)		1,770
Price of shares to be acquired for cash per a tender offer (n dollars per share)		$ 402
Number of shares accepted for payment per tender offer (in shares)	1,748
Remaining liquidation preference share (in dollars per share)			$ 400

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets
Goodwill	$ 24,227	$ 24,020
Change in goodwill due to foreign currency translation adjustments	204
Established Pharmaceutical Products
Goodwill and Intangible Assets
Goodwill	3,300
Nutritional Products
Goodwill and Intangible Assets
Goodwill	286
Diagnostic Products
Goodwill and Intangible Assets
Goodwill	4,100
Cardiovascular and Neuromodulation Products
Goodwill and Intangible Assets
Goodwill	$ 15,600

Goodwill and Intangible Asset53

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets
Gross amount of amortizable intangible assets	$ 25,800	$ 25,600
Accumulated amortization of intangible assets	8,700	8,100
Increase in intangible assets due to purchase price allocation adjustments	100
Increase in intangible assets due to foreign currency translation adjustment	53
Indefinite-lived intangible assets related to in-process research and development acquired in a business combination	3,800	$ 3,900
Estimated annual amortization expense, intangible assets, 2018	2,400
Estimated annual amortization expense, intangible assets, 2019	2,300
Estimated annual amortization expense, intangible assets, 2020	2,100
Estimated annual amortization expense, intangible assets, 2021	2,000
Estimated annual amortization expense, intangible assets, 2022	$ 2,000
Minimum
Goodwill and Intangible Assets
Amortization period of intangible assets	2 years
Maximum
Goodwill and Intangible Assets
Amortization period of intangible assets	20 years
Weighted average
Goodwill and Intangible Assets
Amortization period of intangible assets	14 years

Restructuring Plans (Details)

Restructuring Plans (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Accrued balance at beginning of year	$ 68
Restructuring charges	23
Payments and other adjustments	(25)
Accrued balance at end of year	66
Restructuring Plan from 2014 to 2018
Restructuring reserve activity
Accrued balance at beginning of year	141
Restructuring charges	10
Payments and other adjustments	(20)
Accrued balance at end of year	131
Cost of products sold | Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Restructuring charges	3
Cost of products sold | Restructuring Plan from 2014 to 2018
Restructuring reserve activity
Restructuring charges	7
Research and development | Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Restructuring charges	8
Selling, general and administrative expense | Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Restructuring charges	12
Selling, general and administrative expense | Restructuring Plan from 2014 to 2018
Restructuring reserve activity
Restructuring charges	$ 3

Incentive Stock Programs - Gene

Incentive Stock Programs - General (Details)	3 Months Ended
	Mar. 31, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award
Incentive stock programs, shares reserved for future grants	143,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
Stock options granted during the period (in shares)	5,505,363
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	861,129
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Awards and units granted during period (in shares)	7,652,605

Incentive Stock Programs - Opti

Incentive Stock Programs - Options Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award
Total unrecognized compensation cost	$ 589
Total unrecognized compensation cost, recognition period	3 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
Stock options outstanding, number of shares | shares	36,582,743
Stock options outstanding, weighted-average remaining life	6 years 8 months 12 days
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares	$ 41.14
Aggregate intrinsic value of options outstanding	$ 687
Exercisable options, number of shares | shares	23,261,149
Exercisable options, weighted-average remaining life	5 years 8 months 12 days
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares	$ 37.17
Aggregate intrinsic value of options exercisable	$ 529

Debt and Lines of Credit (Detai

Debt and Lines of Credit (Details) - USD ($) $ in Millions	Mar. 22, 2018	Jan. 05, 2018	Jan. 31, 2018	Feb. 16, 2018
Debt and Lines of Credit
Debt paid off		$ 2,800
Maturity period		5 years
Debt outstanding		$ 1,150
Redemption of debt				$ 5,000
Repayments of debt			$ 3,950
Net charges incurred on early repayment of debt	$ 14
5.125% Notes, due 2019
Debt and Lines of Credit
Redemption of debt	$ 947
Interest rate percentage	5.125%
2.35% Notes, due 2019
Debt and Lines of Credit
Redemption of debt	$ 1,055
Interest rate percentage	2.35%
Debt issued - principal amount	$ 2,850

Financial Instruments, Deriva58

Financial Instruments, Derivatives and Fair Value Measures - Contracts (Details) - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Designated as hedging instrument | Interest rate swaps | Fair value hedges
Derivative instruments, notional amount and fair value
Notional amount	$ 4	$ 4
Designated as hedging instrument | Foreign currency forward exchange contracts | Cash flow hedges
Derivative instruments, notional amount and fair value
Notional amount	$ 3	3.3
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
Not designated as hedging instrument | Foreign currency forward exchange contracts
Derivative instruments, notional amount and fair value
Notional amount	$ 18.1	$ 20.1

Financial Instruments, Deriva59

Financial Instruments, Derivatives and Fair Value Measures - Location of Derivative Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 66	$ 138
Fair Value - Liabilities	425	298
Designated as hedging instrument | Interest rate swaps | Post-employment obligations, deferred income taxes and other long-term liabilities | Fair value hedges
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	199	93
Designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	9	21
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	134	106
Not designated as hedging instrument | Foreign currency forward exchange contracts | Prepaid expenses and other receivables
Derivative instruments, notional amount and fair value
Fair Value - Assets	57	117
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	$ 92	$ 99

Financial Instruments, Deriva60

Financial Instruments, Derivatives and Fair Value Measures - Gain or Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest rate swaps | Fair value hedges | Designated as hedging instrument | Interest expense
Gain (loss) on derivatives
Income (expense) and Gain (loss) Reclassified into Income	$ (106)	$ (26)
Foreign currency forward exchange contracts | Not designated as hedging instrument | Net foreign exchange loss (gain)
Gain (loss) on derivatives
Income (expense) and Gain (loss) Reclassified into Income	(48)	9
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)	(86)	(91)
Income (expense) and Gain (loss) Reclassified into Income	$ (30)	(5)
Debt | Net investment hedges | Designated as hedging instrument
Gain (loss) on derivatives
Gain (loss) Recognized in Other Comprehensive Income (loss)		$ (25)

Financial Instruments, Deriva61

Financial Instruments, Derivatives and Fair Value Measures - Carrying Value and Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair value, asset and liability measures
Long-term Investments	$ 913	$ 883
Foreign currency forward exchange contracts, receivable position	66	138
Foreign currency forward exchange contracts, (payable) position	(425)	(298)
Equity securities
Fair value, asset and liability measures
Long-term Investments	830	797
Carrying Value
Fair value, asset and liability measures
Total long-term debt	(21,661)	(27,718)
Foreign currency forward exchange contracts, receivable position	66	138
Foreign currency forward exchange contracts, (payable) position	(226)	(205)
Interest rate hedge contract, (payable) position	(199)	(93)
Carrying Value | Equity securities
Fair value, asset and liability measures
Long-term Investments	830	797
Carrying Value | Other
Fair value, asset and liability measures
Long-term Investments	83	86
Fair Value
Fair value, asset and liability measures
Total long-term debt	(22,436)	(29,018)
Foreign currency forward exchange contracts, receivable position	66	138
Foreign currency forward exchange contracts, (payable) position	(226)	(205)
Interest rate hedge contract, (payable) position	(199)	(93)
Fair Value | Equity securities
Fair value, asset and liability measures
Long-term Investments	830	797
Fair Value | Other
Fair value, asset and liability measures
Long-term Investments	$ 83	$ 86

Financial Instruments, Deriva62

Financial Instruments, Derivatives and Fair Value Measures - Bases of Measurement (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair value, asset and liability measures
Fair Value - Assets	$ 66	$ 138
Fair Value - Liabilities	425	298
Long-term Investments	913	883
Recurring
Fair value, asset and liability measures
Equity securities	379	374
Total Assets	445	512
Fair value of hedged long-term debt	3,798	3,898
Interest rate swap financial instruments, liabilities	199	93
Contingent consideration related to business combinations	119	120
Total Liabilities	4,342	4,316
Recurring | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	66	138
Fair Value - Liabilities	226	205
Recurring | Quoted Prices in Active Markets
Fair value, asset and liability measures
Equity securities	379	374
Total Assets	379	374
Recurring | Significant Other Observable Inputs
Fair value, asset and liability measures
Total Assets	66	138
Fair value of hedged long-term debt	3,798	3,898
Interest rate swap financial instruments, liabilities	199	93
Total Liabilities	4,223	4,196
Recurring | Significant Other Observable Inputs | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	66	138
Fair Value - Liabilities	226	205
Recurring | Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	119	120
Total Liabilities	119	120
Equity securities
Fair value, asset and liability measures
Long-term Investments	$ 830	$ 797

Litigation and Environmental 63

Litigation and Environmental Matters (Details) $ in Millions	Mar. 31, 2018USD ($)
Loss Contingencies
Maximum expected cleanup exposure for individual site	$ 4
Maximum expected cleanup exposure in aggregate	10
Other legal proceedings and environmental exposures
Loss Contingencies
Recorded reserve balance for legal proceedings and exposures	110
Other legal proceedings and environmental exposures | Minimum
Loss Contingencies
Other legal proceedings or environmental exposure	90
Other legal proceedings and environmental exposures | Maximum
Loss Contingencies
Other legal proceedings or environmental exposure	$ 135

Post-Employment Benefits - Gene

Post-Employment Benefits - General (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
ASU 2017-07
Post-employment Obligations and Other Long-term Liabilities:
Reclassification of operating earnings (loss) to other (income) expense, net		$ 40
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	$ 78	72
Interest cost on projected benefit obligations	78	72
Expected return on plan assets	(171)	(152)
Net amortization of:
Actuarial loss, net	54	42
Net cost - continuing operations	39	34
Post-employment Obligations and Other Long-term Liabilities:
Company contributions	14	283
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	7	7
Interest cost on projected benefit obligations	12	11
Expected return on plan assets	(8)	(8)
Net amortization of:
Actuarial loss, net	8	6
Prior service cost (credit)	(11)	(11)
Net cost - continuing operations	8	5
Post-employment Obligations and Other Long-term Liabilities:
Company contributions	$ 11	11
AMO
Post-employment Obligations and Other Long-term Liabilities:
Curtailment gain related to sale of AMO		$ 10

Taxes on Earnings (Details)

Taxes on Earnings (Details) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2017
Taxes on Earnings
Excess tax benefits from share based combinations	$ 65
Decrease in gross unrecognized tax benefits			$ (33)
U.S. federal corporate tax rate (as a percent)	21.00%			35.00%
Provisional transition tax liability		$ 2,890
Net benefit on remeasurement of deferred tax assets and liabilities		1,420
Net benefit from Tax cuts and jobs act, Other impacts		$ 10
Taxes on Earnings from Continuing Operations
Taxes on Earnings
Net tax expense for the impact of Tax cuts and jobs act	$ 1,475		1,460
State
Taxes on Earnings
Provisional transition tax liability	15
Discontinued operations
Taxes on Earnings
Tax expense (benefit) from resolution of various tax positions related to prior years	(9)		(33)
Decrease in gross unrecognized tax benefits	16
Minimum
Taxes on Earnings
Decrease reasonably possible in gross unrecognized tax benefits	150
Maximum
Taxes on Earnings
Decrease reasonably possible in gross unrecognized tax benefits	$ 300
Dispositions held for sale | AMO
Taxes on Earnings
Tax expense (benefit) on gain or loss on sale of business			$ 430

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Information
Net Sales to External Customers	$ 7,390	$ 6,335
Operating Earnings	608	(242)
Amortization of intangible assets	(584)	(522)
Earnings from continuing operations before tax	$ 431	736
Annual share-based awards recognized in first quarter (as a percent)	50.00%
Established Pharmaceutical Products
Segment Information
Net Sales to External Customers	$ 1,044	950
Nutritional Products
Segment Information
Net Sales to External Customers	1,756	1,642
Diagnostic Products
Segment Information
Net Sales to External Customers	1,837	1,158
Cardiovascular and Neuromodulation Products
Segment Information
Net Sales to External Customers	2,323	2,103
Other
Segment Information
Net Sales to External Customers	430	482
Total Reportable Segments
Segment Information
Net Sales to External Customers	6,960	5,853
Operating Earnings	1,699	1,394
Total Reportable Segments | Established Pharmaceutical Products
Segment Information
Net Sales to External Customers	1,044	950
Operating Earnings	167	140
Total Reportable Segments | Nutritional Products
Segment Information
Net Sales to External Customers	1,756	1,642
Operating Earnings	365	351
Total Reportable Segments | Diagnostic Products
Segment Information
Net Sales to External Customers	1,837	1,158
Operating Earnings	443	284
Total Reportable Segments | Cardiovascular and Neuromodulation Products
Segment Information
Net Sales to External Customers	2,323	2,103
Operating Earnings	724	619
Corporate functions
Segment Information
Corporate functions and benefit plans costs	(152)	(93)
Reconciling items
Segment Information
Non-reportable segments	92	46
Net interest expense	(199)	(204)
Share-based compensation (a)	(212)	(171)
Amortization of intangible assets	(584)	(522)
Other, net (b)	$ (213)	$ 286