Abbott Laboratories (ABT) 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2018shares
Document and Entity Information
Entity Registrant Name	ABBOTT LABORATORIES
Entity Central Index Key	1,800
Document Type	10-Q
Document Period End Date	Jun. 30, 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	1,754,319,284
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statement of Earnings - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statement of Earnings
Net sales	$ 7,767	$ 6,637	$ 15,157	$ 12,972
Cost of products sold, excluding amortization of intangible assets	3,282	3,189	6,349	6,251
Amortization of intangible assets	562	392	1,146	914
Research and development	575	520	1,164	1,073
Selling, general and administrative	2,466	2,150	5,008	4,590
Total operating cost and expenses	6,885	6,251	13,667	12,828
Operating earnings	882	386	1,490	144
Interest expense	210	214	437	440
Interest (income)	(21)	(31)	(49)	(53)
Net foreign exchange (gain) loss	(6)	(12)	(9)	(28)
Net loss on extinguishment of debt			14
Other (income) expense, net	(78)	(80)	(111)	(1,246)
Earnings from continuing operations before taxes	777	295	1,208	1,031
Taxes on earnings from continuing operations	59	25	81	375
Earnings from continuing operations	718	270	1,127	656
Earnings from discontinued operations, net of tax	15	13	24	46
Net Earnings	$ 733	$ 283	$ 1,151	$ 702
Basic Earnings Per Common Share
Continuing operations (in dollars per share)	$ 0.41	$ 0.15	$ 0.64	$ 0.37
Discontinued operations (in dollars per share)	0.01	0.01	0.01	0.03
Net earnings (in dollars per share)	0.42	0.16	0.65	0.40
Diluted Earnings Per Common Share
Continuing operations (in dollars per share)	0.40	0.15	0.63	0.37
Discontinued operations (in dollars per share)	0.01	0.01	0.01	0.03
Net earnings (in dollars per share)	0.41	0.16	0.64	0.40
Cash Dividends Declared Per Common Share (in dollars per share)	$ 0.28	$ 0.265	$ 0.56	$ 0.53
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares)	1,757,836	1,740,524	1,755,691	1,734,008
Dilutive Common Stock Options (in shares)	11,114	8,359	11,490	8,099
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares)	1,768,950	1,748,883	1,767,181	1,742,107
Outstanding Common Stock Options Having No Dilutive Effect (in shares)	93	5,258	93	5,258

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Condensed Consolidated Statement of Comprehensive Income
Net Earnings	$ 733	$ 283	$ 1,151	$ 702
Foreign currency translation gain (loss) adjustments	(1,359)	288	(1,026)	821
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, net of taxes of $15 and $32 in 2018 and $11 and $23 in 2017	61	29	84	63
Unrealized gains (losses) on marketable equity securities, net of taxes of $7 and $60 in 2017		2		82
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $48 and $28 in 2018 and $(15) and $(39) in 2017	118	(37)	86	(102)
Other comprehensive income (loss)	(1,180)	282	(856)	864
Comprehensive Income (Loss)	(447)	$ 565	295	$ 1,566
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments	(4,478)		(4,478)		$ (3,452)
Net actuarial (losses) and prior service (costs) and credits	(2,437)		(2,437)		(2,521)
Cumulative unrealized gains (losses) on marketable equity securities					(5)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other	2		2		(84)
Accumulated other comprehensive income (loss)	$ (6,913)		$ (6,913)		$ (6,062)

Condensed Consolidated Stateme4

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statement of Comprehensive Income
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (cost) and credits, taxes	$ 15	$ 11	$ 32	$ 23
Unrealized gains (losses) on marketable equity securities, taxes		7		60
Net gains (losses) for derivative instruments designated as cash flow hedges and other, taxes	$ 48	$ (15)	$ 28	$ (39)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 3,065	$ 9,407
Short-term investments	199	203
Trade receivables, less allowances of $319 in 2018 and $294 in 2017	5,192	5,249
Inventories:
Finished products	2,264	2,339
Work in process	563	472
Materials	887	790
Total inventories	3,714	3,601
Prepaid expenses and other receivables	1,935	1,667
Current assets held for disposition	17	20
Total Current Assets	14,122	20,147
Investments	940	883
Property and equipment, at cost	15,309	15,265
Less: accumulated depreciation and amortization	7,877	7,658
Net property and equipment	7,432	7,607
Intangible assets, net of amortization	19,951	21,473
Goodwill	23,844	24,020
Deferred income taxes and other assets	2,005	1,944
Non-current assets held for disposition	121	176
Total Assets	68,415	76,250
Current Liabilities:
Short-term borrowings	341	206
Trade accounts payable	2,503	2,402
Salaries, wages and commissions	1,034	1,187
Other accrued liabilities	3,887	3,811
Dividends payable	492	489
Income taxes payable	188	309
Current portion of long-term debt	506	508
Total Current Liabilities	8,951	8,912
Long-term debt	19,823	27,210
Post-employment obligations, deferred income taxes and other long-term liabilities	8,867	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: 1,969,575,366; 2017: 1,965,908,188	23,317	23,206
Common shares held in treasury, at cost - Shares: 2018: 215,256,082; 2017: 222,305,719	(9,907)	(10,225)
Earnings employed in the business	24,080	23,978
Accumulated other comprehensive income (loss)	(6,913)	(6,062)
Total Abbott Shareholders' Investment	30,577	30,897
Noncontrolling Interests in Subsidiaries	197	201
Total Shareholders' Investment	30,774	31,098
Total Liabilities and Shareholders' Investment	$ 68,415	$ 76,250

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheet
Trade receivables, allowances (in dollars)	$ 319	$ 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	1,969,575,366	1,965,908,188
Common shares held in treasury, shares	215,256,082	222,305,719

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flow From (Used in) Operating Activities:
Net earnings	$ 1,151	$ 702
Adjustments to reconcile net earnings to net cash from operating activities -
Depreciation	556	508
Amortization of intangible assets	1,146	914
Share-based compensation	313	263
Amortization of inventory step-up	32	822
Gain on sale of businesses		(1,151)
Trade receivables	(137)	(56)
Inventories	(336)	(127)
Other, net	(373)	50
Net Cash From Operating Activities	2,352	1,925
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment	(573)	(527)
Acquisitions of businesses and technologies, net of cash acquired		(13,027)
Proceeds from business dispositions	48	5,471
Proceeds from the sale of Mylan N.V. shares		1,924
Sales (purchases) of other investment securities, net	(42)	(28)
Other	30	27
Net Cash (Used in) Investing Activities	(537)	(6,160)
Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other	140	(1,429)
Repayments of long-term debt	(7,280)	(2,507)
Payment of contingent consideration		(13)
Purchases of common shares	(131)	(98)
Proceeds from stock options exercised	170	186
Dividends paid	(985)	(922)
Net Cash (Used in) Financing Activities	(8,086)	(4,783)
Effect of exchange rate changes on cash and cash equivalents	(71)	73
Net Decrease in Cash and Cash Equivalents	(6,342)	(8,945)
Cash and Cash Equivalents, Beginning of Year	9,407	18,620
Cash and Cash Equivalents, End of Period	$ 3,065	$ 9,675

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 approximately $80 million of income from Operating earnings to Other (income) expense, net in the first six months 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 are being 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	6 Months Ended
	Jun. 30, 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, distributors, 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 tables provide detail by sales category: Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 866 $ 866 $ — $ 798 $ 798 Other — 263 263 — 223 223 Total — 1,129 1,129 — 1,021 1,021 Nutritionals — Pediatric Nutritionals 469 582 1,051 459 528 987 Adult Nutritionals 312 495 807 314 430 744 Total 781 1,077 1,858 773 958 1,731 Diagnostics — Core Laboratory 248 880 1,128 232 788 1,020 Molecular 38 84 122 41 73 114 Point of Care 108 31 139 112 27 139 Rapid Diagnostics 258 226 484 — — — Total 652 1,221 1,873 385 888 1,273 Cardiovascular and Neuromodulation — Rhythm Management 262 281 543 273 279 552 Electrophysiology 193 235 428 154 189 343 Heart Failure 117 46 163 123 36 159 Vascular 284 466 750 295 436 731 Structural Heart 118 197 315 104 164 268 Neuromodulation 173 49 222 161 46 207 Total 1,147 1,274 2,421 1,110 1,150 2,260 Other 122 364 486 92 260 352 Total $ 2,702 $ 5,065 $ 7,767 $ 2,360 $ 4,277 $ 6,637 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products— Key Emerging Markets $ — $ 1,659 $ 1,659 $ — $ 1,528 $ 1,528 Other — 514 514 — 443 443 Total — 2,173 2,173 — 1,971 1,971 Nutritionals— Pediatric Nutritionals 917 1,128 2,045 891 1,023 1,914 Adult Nutritionals 622 947 1,569 612 847 1,459 Total 1,539 2,075 3,614 1,503 1,870 3,373 Diagnostics— Core Laboratory 476 1,671 2,147 448 1,483 1,931 Molecular 77 163 240 86 140 226 Point of Care 218 62 280 222 52 274 Rapid Diagnostics 581 462 1,043 — — — Total 1,352 2,358 3,710 756 1,675 2,431 Cardiovascular and Neuromodulation— Rhythm Management 526 552 1,078 533 530 1,063 Electrophysiology 375 444 819 299 360 659 Heart Failure 231 85 316 232 69 301 Vascular 570 919 1,489 599 835 1,434 Structural Heart 227 381 608 211 313 524 Neuromodulation 341 93 434 297 85 382 Total 2,270 2,474 4,744 2,171 2,192 4,363 Other 216 700 916 254 580 834 Total $ 5,377 $ 9,780 $ 15,157 $ 4,684 $ 8,288 $ 12,972 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 June 30, 2018, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $2.8 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 June 30, 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 June 30, 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) Contract Liabilities Balance at January 1, 2018 $ 198 Unearned revenue from cash received during the period 162 Revenue recognized that was included in contract liability balance at beginning of period (103) Balance at June 30, 2018 $ 257

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 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, net of tax of $24 million and $46 million in the first six months of 2018 and 2017, respectively, were driven primarily by the recognition of net tax benefits as a result of the resolution of various tax positions related to AbbVie’s operations for years prior to the separation.

Assets Held for Disposition

Assets Held for Disposition	6 Months Ended
	Jun. 30, 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 June 30, 2018 and December 31, 2017, primarily relate to the businesses sold to Quidel. June 30, December 31, (in millions) 2018 2017 Trade receivables, net $ 13 $ 12 Total inventories 4 8 Current assets held for disposition 17 20 Net property and equipment — 56 Intangible assets, net of amortization 19 18 Goodwill 102 102 Non-current assets held for disposition 121 176 Total assets held for disposition $ 138 $ 196

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Jun. 30, 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 June 30, 2018 and 2017 were $714 million and $269 million, respectively and for the six months ended June 30, 2018 and 2017 were $1.121 billion and $653 million, respectively. Net earnings allocated to common shares for the three months ended June 30, 2018 and 2017 were $730 million and $281 million, respectively, and for the six months ended June 30, 2018 and 2017 were $1.144 billion and $698 million, respectively. Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first six months of 2018 includes the payment of cash taxes of approximately $425 million. The first six months of 2017 includes the effects of contributions to defined benefit plans of $321 million. The first six months of 2017 also includes the impact of approximately $430 million of tax expense related to business dispositions. 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 six months of 2017. Abbott recorded an after-tax gain of $721 million in the first six months 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 June 30, 2017, the AMO earnings before taxes included in Abbott's consolidated earnings were nil. For the first six months ended June 30, 2017, the AMO losses before taxes included in Abbott's consolidated earnings were $18 million. In March 2017, Abbott sold 44 million 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. In June 2017, Abbott sold an additional 6 million ordinary shares of Mylan N.V. and received $239 million in proceeds. Abbott recorded an immaterial pre-tax gain in the first six months of 2017, which was recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. The components of long-term investments as of June 30, 2018 and December 31, 2017 are as follows: Long-term Investments June 30, December 31, (in millions) 2018 2017 Equity securities $ 856 $ 797 Other 84 86 Total $ 940 $ 883 Abbott's equity securities as of June 30, 2018, include approximately $340 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency. Abbott also holds certain investments as of June 30, 2018 with a carrying value of approximately $260 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $245 million that do not have a readily determinable fair value. The $245 million carrying value includes an unrealized gain of approximately $50 million on an investment. The gain was recorded in the second quarter of 2018 and relates to an observable price change for a similar investment of the same issuer.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2018
Changes in Accumulated Other Comprehensive Income (Loss)
Changes in Accumulated Other Comprehensive Income (Loss)	Note 7 — Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows: Three Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) and Marketable Equity Designated as (in millions) Adjustments Credits Securities Cash Flow Hedges 2018 2017 2018 2017 2018 2017 2018 2017 Balance at March 31 $ (3,119) $ $ $ $ — $ 11 $ $ (15) Other comprehensive income (loss) before reclassifications (1,359) 288 30 — — 2 81 (38) Amounts reclassified from accumulated other comprehensive income — — 31 29 — — 37 1 Net current period comprehensive income (loss) (1,359) 288 61 29 — 2 118 (37) Balance at June 30 $ (4,478) $ $ (2,437) $ $ — $ 13 $ 2 $ (52) Six Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) and Marketable Equity Designated as (in millions) Adjustments Credits Securities Cash Flow Hedges 2018 2017 2018 2017 2018 2017 2018 2017 Balance at December 31, 2017 and 2016 $ (3,452) $ (4,959) $ (2,521) $ (2,284) $ (5) $ (69) $ (84) $ 49 Reclassified to Earnings employed in the business for adoption of ASU 2016-01 — — — — 5 — — — Impact of business dispositions — 142 — 6 — — — 1 Other comprehensive income (loss) before reclassifications (1,026) 821 20 — — 183 29 (107) Amounts reclassified from accumulated other comprehensive income — — 64 63 — (101) 57 5 Net current period comprehensive income (loss) (1,026) 821 84 63 — 82 86 (102) Balance at June 30 $ (4,478) $ (3,996) $ (2,437) $ (2,215) $ — $ 13 $ 2 $ (52) 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 are included as a component of net periodic benefit plan costs; see Note 15 for additional details.

Business Acquisitions

Business Acquisitions	6 Months Ended
	Jun. 30, 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, 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 $ 3.4 Goodwill, non-deductible 4.2 Acquired net tangible assets 0.9 Deferred income taxes recorded at acquisition (0.7) Net debt (2.6) Preferred stock (0.7) Total preliminary allocation of fair value $ 4.5 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 $215 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. 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	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 9 — Goodwill and Intangible Assets The total amount of goodwill reported was $23.8 billion at June 30, 2018 and $24.0 billion at December 31, 2017. The amounts reported at June 30, 2018 and December 31, 2017 exclude goodwill reported in non-current assets held for disposition. Foreign currency translation adjustments decreased goodwill by approximately $288 million in the first six months of 2018. Purchase price accounting adjustments associated with the Alere acquisition increased goodwill by $113 million. The amount of goodwill related to reportable segments at June 30, 2018 was $3.1 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $4.2 billion for the Diagnostic Products segment, and $15.3 billion for the Cardiovascular and Neuromodulation Products segment. There was no reduction of goodwill relating to impairments in the first six months of 2018. The gross amount of amortizable intangible assets, primarily product rights and technology was $25.6 billion as of June 30, 2018 and December 31, 2017, and accumulated amortization was $9.3 billion as of June 30, 2018 and $8.1 billion as of December 31, 2017. Purchase price allocation adjustments increased intangible assets by $120 million and foreign currency translation adjustments decreased intangible assets by $180 million during the first six months of 2018. The June 30, 2018 and December 31, 2017 amounts exclude net intangible assets reported in non-current assets held for disposition. 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). Indefinite-lived intangible assets, which relate to in-process research and development acquired in a business combination, were approximately $3.6 billion and $3.9 billion as of June 30, 2018 and December 31, 2017, respectively. The decrease in indefinite-lived intangible assets during the first six months of 2018 relates to purchase price allocation adjustments associated with the Alere acquisition.

Restructuring Plans

Restructuring Plans	6 Months Ended
	Jun. 30, 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 acquisition 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 six months of 2018, charges of approximately $33 million, including one-time employee termination benefits were recognized, of which approximately $4 million is recorded in Cost of products sold, approximately $10 million is recorded in Research and development and approximately $19 million as Selling, general and administrative expense. The following summarizes the activity for the first six months of 2018 related to these actions and the status of the related accrual as of June 30, 2018: (in millions) Accrued balance at December 31, 2017 $ 68 Restructuring charges recorded in 2018 33 Payments and other adjustments (43) Accrued balance at June 30, 2018 $ 58 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 six months of 2018, charges of approximately $12 million were recognized, of which approximately $7 million is recorded in Cost of products sold and approximately $5 million as Selling, general and administrative expense. The following summarizes the activity for the first six months of 2018 related to these restructuring actions and the status of the related accrual as of June 30, 2018: (in millions) Accrued balance at December 31, 2017 $ 141 Restructuring charges recorded in 2018 12 Payments and other adjustments (49) Accrued balance at June 30, 2018 $ 104

Incentive Stock Programs

Incentive Stock Programs	6 Months Ended
	Jun. 30, 2018
Incentive Stock Programs
Incentive Stock Programs	Note 11 — Incentive Stock Programs In the first six months of 2018, Abbott granted 5,715,959 stock options, 864,846 restricted stock awards and 7,845,773 restricted stock units under its incentive stock programs. At June 30, 2018, approximately 143 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at June 30, 2018 is as follows: Outstanding Exercisable Number of shares 35,715,493 22,611,954 Weighted average remaining life ( years ) 6.6 5.6 Weighted average exercise price $ 41.53 $ 37.59 Aggregate intrinsic value ( in millions ) $ 695 $ 529 The total unrecognized share-based compensation cost at June 30, 2018 amounted to approximately $512 million which is expected to be recognized over the next three years.

Debt and Lines of Credit

Debt and Lines of Credit	6 Months Ended
	Jun. 30, 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. On June 22, 2018, Abbott redeemed $1.3 billion of the $1.795 billion outstanding principal amount of its 2.35% Notes due 2019.

Financial Instruments, Derivati

Financial Instruments, Derivatives and Fair Value Measures	6 Months Ended
	Jun. 30, 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 $2.9 billion at June 30, 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 June 30, 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 June 30, 2018 and December 31, 2017, Abbott held the gross notional amount of $18.5 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 June 30, 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 June 30, 2018 and December 31, 2017: Fair Value - Assets Fair Value - Liabilities June 30, Dec. 31, June 30, Dec. 31, (in millions) 2018 2017 Balance Sheet Caption 2018 2017 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ — $ — Deferred income taxes and other assets $ 230 $ 93 Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments 55 21 Prepaid expenses and other receivables 33 106 Other accrued liabilities Others not designated as hedges 183 117 Prepaid expenses and other receivables 128 99 Other accrued liabilities $ 238 $ 138 $ 391 $ 298 The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges, debt designated as a hedge of net investment in a foreign subsidiary and certain other derivative financial instruments, as well as the amounts and location of income (expense) and gain (loss) reclassified into income for the three months and six months ended June 30, 2018 and 2017. The amount of hedge ineffectiveness was not significant in 2018 and 2017 for these hedges. Gain (loss) Recognized in Other Income (expense) and Gain (loss) Comprehensive Income (loss) Reclassified into Income Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Income Statement Caption Foreign currency forward exchange contracts designated as cash flow hedges $ 113 $ (54) $ 27 $ (145) $ (53) $ (2) $ (83) $ (7) Cost of products sold Debt designated as a hedge of net investment in a foreign subsidiary — — — (25) n/a n/a n/a n/a n/a Interest rate swaps designated as fair value hedges n/a n/a n/a n/a (31) 40 (137) 14 Interest expense Losses of $2 million and losses of $51 million were recognized in the three months ended June 30, 2018 and 2017, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Losses of $50 million and losses of $42 million were recognized in the six months ended June 30, 2018 and 2017, respectively, related to foreign currency forward exchange contracts not designated as a hedge. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line. The interest rate swaps are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates. The hedged debt is marked to market, offsetting the effect of marking the interest rate swaps to market. The carrying values and fair values of certain financial instruments as of June 30, 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. June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (in millions) Value Value Value Value Investment Securities: Equity securities $ 856 $ 856 $ 797 $ 797 Other 84 84 86 86 Total Long-term Debt (20,329) (20,841) (27,718) (29,018) Foreign Currency Forward Exchange Contracts: Receivable position 238 238 138 138 (Payable) position (161) (161) (205) (205) Interest Rate Hedge Contracts: (Payable) position (230) (230) (93) (93) 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 Quoted Significant Prices in Other Significant Outstanding Active Observable Unobservable (in millions) Balances Markets Inputs Inputs June 30, 2018: Equity securities $ 353 $ 353 $ — $ — Foreign currency forward exchange contracts 238 — 238 — Total Assets $ 591 $ 353 $ 238 $ — Fair value of hedged long-term debt $ 3,763 $ — $ 3,763 $ — Interest rate swap derivative financial instruments 230 — 230 — Foreign currency forward exchange contracts 161 — 161 — Contingent consideration related to business combinations 125 — — 125 Total Liabilities $ 4,279 $ — $ 4,154 $ 125 December 31, 2017: Equity securities $ 374 $ 374 $ — $ — Foreign currency forward exchange contracts 138 — 138 — Total Assets $ 512 $ 374 $ 138 $ — Fair value of hedged long-term debt $ 3,898 $ — $ 3,898 $ — Interest rate swap derivative financial instruments 93 — 93 — Foreign currency forward exchange contracts 205 — 205 — Contingent consideration related to business combinations 120 — — 120 Total Liabilities $ 4,316 $ — $ 4,196 $ 120 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	6 Months Ended
	Jun. 30, 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 $85 million to $130 million. The recorded accrual balance at June 30, 2018 for these proceedings and exposures was approximately $105 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations.

Post-Employment Benefits

Post-Employment Benefits	6 Months Ended
	Jun. 30, 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 and six months ended June 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost - benefits earned during the period $ 67 $ 70 $ 145 $ 142 $ 6 $ 6 $ 13 $ 13 Interest cost on projected benefit obligations 77 71 155 143 12 11 24 22 Expected return on plan assets (171) (153) (342) (305) (8) (8) (16) (16) Net amortization of: Actuarial loss, net 49 40 103 82 9 6 17 12 Prior service cost (credit) 1 — 1 — (12) (12) (23) (23) Net cost - continuing operations $ 23 $ 28 $ 62 $ 62 $ 7 $ 3 $ 15 $ 8 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 approximately $40 million and $80 million of income from the Operating earnings line to the Other (income) expense, net line in the second quarter and first six months of 2017 , respectively. In the first six months 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 six months of 2018 and 2017, $58 million and $321 million, respectively, were contributed to defined benefit plans and $11 million was contributed to the post-employment medical and dental benefit plans in each year.

Taxes on Earnings

Taxes on Earnings	6 Months Ended
	Jun. 30, 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 six months of 2018, taxes on earnings from continuing operations include approximately $71 million in excess tax benefits associated with share-based compensation. Earnings from discontinued operations, net of tax, in the first six months of 2018 reflect the recognition of $24 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 $31 million. In the first six months 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 is taxed at a discrete tax rate. Earnings from discontinued operations, net of tax, of $46 million for the first six months of 2017 primarily reflects the recognition of net tax benefits as a result of the resolution of various tax positions related to prior years. Tax authorities in various jurisdictions regularly review Abbott’s income tax filings. Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease between $500 million and $700 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 six months of 2018, Abbott recorded a $16 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 $1.476 billion. Given the significant complexity of the TCJA, Abbott will continue to evaluate and analyze the impact of this legislation. The $1.476 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	6 Months Ended
	Jun. 30, 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, physician offices 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. Net Sales to External Customers Operating Earnings Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Established Pharmaceutical Products $ 1,129 $ 1,021 $ 2,173 $ 1,971 $ 208 $ 180 $ 375 $ 320 Nutritional Products 1,858 1,731 3,614 3,373 424 392 789 743 Diagnostic Products 1,873 1,273 3,710 2,431 489 338 932 622 Cardiovascular and Neuromodulation Products 2,421 2,260 4,744 4,363 761 689 1,485 1,308 Total Reportable Segments 7,281 6,285 14,241 12,138 1,882 1,599 3,581 2,993 Other 486 352 916 834 Net Sales $ 7,767 $ 6,637 $ 15,157 $ 12,972 Corporate functions and benefit plans costs (140) (104) (292) (197) Non-reportable segments 125 74 217 120 Net interest expense (189) (183) (388) (387) Share-based compensation (a) (101) (92) (313) (263) Amortization of intangible assets (562) (392) (1,146) (914) Other, net (b) (238) (607) (451) (321) Earnings from continuing operations before taxes $ 777 $ 295 $ 1,208 $ 1,031 (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 for the six months ended June 30, 2018 includes inventory step-up amortization. Other, net for the three and six months ended June 30, 2018, includes restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Other, net for the six months ended June 30, 2017, includes the gain on the sale of the AMO business. Other, net for the three and six months ended June 30, 2017, includes 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)	6 Months Ended
	Jun. 30, 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 approximately $80 million of income from Operating earnings to Other (income) expense, net in the first six months 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 are being 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)	6 Months Ended
	Jun. 30, 2018
Revenue
Schedule of reportable segment included under sales category	Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 866 $ 866 $ — $ 798 $ 798 Other — 263 263 — 223 223 Total — 1,129 1,129 — 1,021 1,021 Nutritionals — Pediatric Nutritionals 469 582 1,051 459 528 987 Adult Nutritionals 312 495 807 314 430 744 Total 781 1,077 1,858 773 958 1,731 Diagnostics — Core Laboratory 248 880 1,128 232 788 1,020 Molecular 38 84 122 41 73 114 Point of Care 108 31 139 112 27 139 Rapid Diagnostics 258 226 484 — — — Total 652 1,221 1,873 385 888 1,273 Cardiovascular and Neuromodulation — Rhythm Management 262 281 543 273 279 552 Electrophysiology 193 235 428 154 189 343 Heart Failure 117 46 163 123 36 159 Vascular 284 466 750 295 436 731 Structural Heart 118 197 315 104 164 268 Neuromodulation 173 49 222 161 46 207 Total 1,147 1,274 2,421 1,110 1,150 2,260 Other 122 364 486 92 260 352 Total $ 2,702 $ 5,065 $ 7,767 $ 2,360 $ 4,277 $ 6,637 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products— Key Emerging Markets $ — $ 1,659 $ 1,659 $ — $ 1,528 $ 1,528 Other — 514 514 — 443 443 Total — 2,173 2,173 — 1,971 1,971 Nutritionals— Pediatric Nutritionals 917 1,128 2,045 891 1,023 1,914 Adult Nutritionals 622 947 1,569 612 847 1,459 Total 1,539 2,075 3,614 1,503 1,870 3,373 Diagnostics— Core Laboratory 476 1,671 2,147 448 1,483 1,931 Molecular 77 163 240 86 140 226 Point of Care 218 62 280 222 52 274 Rapid Diagnostics 581 462 1,043 — — — Total 1,352 2,358 3,710 756 1,675 2,431 Cardiovascular and Neuromodulation— Rhythm Management 526 552 1,078 533 530 1,063 Electrophysiology 375 444 819 299 360 659 Heart Failure 231 85 316 232 69 301 Vascular 570 919 1,489 599 835 1,434 Structural Heart 227 381 608 211 313 524 Neuromodulation 341 93 434 297 85 382 Total 2,270 2,474 4,744 2,171 2,192 4,363 Other 216 700 916 254 580 834 Total $ 5,377 $ 9,780 $ 15,157 $ 4,684 $ 8,288 $ 12,972
Schedule of changes in contract liabilities	(in millions) Contract Liabilities Balance at January 1, 2018 $ 198 Unearned revenue from cash received during the period 162 Revenue recognized that was included in contract liability balance at beginning of period (103) Balance at June 30, 2018 $ 257

Assets Held for Disposition (Ta

Assets Held for Disposition (Tables)	6 Months Ended
	Jun. 30, 2018
Assets Held for Disposition
Summary of assets held for disposition	June 30, December 31, (in millions) 2018 2017 Trade receivables, net $ 13 $ 12 Total inventories 4 8 Current assets held for disposition 17 20 Net property and equipment — 56 Intangible assets, net of amortization 19 18 Goodwill 102 102 Non-current assets held for disposition 121 176 Total assets held for disposition $ 138 $ 196

Supplemental Financial Inform28

Supplemental Financial Information (Tables)	6 Months Ended
	Jun. 30, 2018
Supplemental Financial Information
Schedule of long-term investments	Long-term Investments June 30, December 31, (in millions) 2018 2017 Equity securities $ 856 $ 797 Other 84 86 Total $ 940 $ 883

Changes in Accumulated Other 29

Changes in Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2018
Changes in Accumulated Other Comprehensive Income (Loss)
Schedule of changes in accumulated other comprehensive income (loss), net of taxes	Three Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) and Marketable Equity Designated as (in millions) Adjustments Credits Securities Cash Flow Hedges 2018 2017 2018 2017 2018 2017 2018 2017 Balance at March 31 $ (3,119) $ $ $ $ — $ 11 $ $ (15) Other comprehensive income (loss) before reclassifications (1,359) 288 30 — — 2 81 (38) Amounts reclassified from accumulated other comprehensive income — — 31 29 — — 37 1 Net current period comprehensive income (loss) (1,359) 288 61 29 — 2 118 (37) Balance at June 30 $ (4,478) $ $ (2,437) $ $ — $ 13 $ 2 $ (52) Six Months Ended June 30 Cumulative Gains Cumulative (Losses) on Net Actuarial Unrealized Gains Derivative Cumulative Foreign (Losses) and Prior (Losses) on Instruments Currency Translation Service (Costs) and Marketable Equity Designated as (in millions) Adjustments Credits Securities Cash Flow Hedges 2018 2017 2018 2017 2018 2017 2018 2017 Balance at December 31, 2017 and 2016 $ (3,452) $ (4,959) $ (2,521) $ (2,284) $ (5) $ (69) $ (84) $ 49 Reclassified to Earnings employed in the business for adoption of ASU 2016-01 — — — — 5 — — — Impact of business dispositions — 142 — 6 — — — 1 Other comprehensive income (loss) before reclassifications (1,026) 821 20 — — 183 29 (107) Amounts reclassified from accumulated other comprehensive income — — 64 63 — (101) 57 5 Net current period comprehensive income (loss) (1,026) 821 84 63 — 82 86 (102) Balance at June 30 $ (4,478) $ (3,996) $ (2,437) $ (2,215) $ — $ 13 $ 2 $ (52)

Business Acquisitions (Tables)

Business Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2018
Alere Inc
Business Acquisitions
Schedule of allocation of fair value of the acquisition	(in billions) Acquired intangible assets, non-deductible $ 3.4 Goodwill, non-deductible 4.2 Acquired net tangible assets 0.9 Deferred income taxes recorded at acquisition (0.7) Net debt (2.6) Preferred stock (0.7) Total preliminary allocation of fair value $ 4.5

Restructuring Plans (Tables)

Restructuring Plans (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring Plan in 2017 and 2018
Restructuring costs
Summary of restructuring activity	(in millions) Accrued balance at December 31, 2017 $ 68 Restructuring charges recorded in 2018 33 Payments and other adjustments (43) Accrued balance at June 30, 2018 $ 58
Restructuring Plan from 2014 to 2018
Restructuring costs
Summary of restructuring activity	(in millions) Accrued balance at December 31, 2017 $ 141 Restructuring charges recorded in 2018 12 Payments and other adjustments (49) Accrued balance at June 30, 2018 $ 104

Incentive Stock Programs (Table

Incentive Stock Programs (Tables)	6 Months Ended
	Jun. 30, 2018
Incentive Stock Programs
Schedule of stock options outstanding and exercisable	Outstanding Exercisable Number of shares 35,715,493 22,611,954 Weighted average remaining life ( years ) 6.6 5.6 Weighted average exercise price $ 41.53 $ 37.59 Aggregate intrinsic value ( in millions ) $ 695 $ 529

Financial Instruments, Deriva33

Financial Instruments, Derivatives and Fair Value Measures (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Dec. 31, June 30, Dec. 31, (in millions) 2018 2017 Balance Sheet Caption 2018 2017 Balance Sheet Caption Interest rate swaps designated as fair value hedges $ — $ — Deferred income taxes and other assets $ 230 $ 93 Post-employment obligations, deferred income taxes and other long-term liabilities Foreign currency forward exchange contracts: Hedging instruments 55 21 Prepaid expenses and other receivables 33 106 Other accrued liabilities Others not designated as hedges 183 117 Prepaid expenses and other receivables 128 99 Other accrued liabilities $ 238 $ 138 $ 391 $ 298
Schedule of derivatives gain (loss) in OCI and earnings	Gain (loss) Recognized in Other Income (expense) and Gain (loss) Comprehensive Income (loss) Reclassified into Income Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Income Statement Caption Foreign currency forward exchange contracts designated as cash flow hedges $ 113 $ (54) $ 27 $ (145) $ (53) $ (2) $ (83) $ (7) Cost of products sold Debt designated as a hedge of net investment in a foreign subsidiary — — — (25) n/a n/a n/a n/a n/a Interest rate swaps designated as fair value hedges n/a n/a n/a n/a (31) 40 (137) 14 Interest expense
Schedule of carrying values and fair values of certain financial instruments	June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (in millions) Value Value Value Value Investment Securities: Equity securities $ 856 $ 856 $ 797 $ 797 Other 84 84 86 86 Total Long-term Debt (20,329) (20,841) (27,718) (29,018) Foreign Currency Forward Exchange Contracts: Receivable position 238 238 138 138 (Payable) position (161) (161) (205) (205) Interest Rate Hedge Contracts: (Payable) position (230) (230) (93) (93)
Schedule of assets and liabilities measured at fair value on a recurring basis	Basis of Fair Value Measurement Quoted Significant Prices in Other Significant Outstanding Active Observable Unobservable (in millions) Balances Markets Inputs Inputs June 30, 2018: Equity securities $ 353 $ 353 $ — $ — Foreign currency forward exchange contracts 238 — 238 — Total Assets $ 591 $ 353 $ 238 $ — Fair value of hedged long-term debt $ 3,763 $ — $ 3,763 $ — Interest rate swap derivative financial instruments 230 — 230 — Foreign currency forward exchange contracts 161 — 161 — Contingent consideration related to business combinations 125 — — 125 Total Liabilities $ 4,279 $ — $ 4,154 $ 125 December 31, 2017: Equity securities $ 374 $ 374 $ — $ — Foreign currency forward exchange contracts 138 — 138 — Total Assets $ 512 $ 374 $ 138 $ — Fair value of hedged long-term debt $ 3,898 $ — $ 3,898 $ — Interest rate swap derivative financial instruments 93 — 93 — Foreign currency forward exchange contracts 205 — 205 — Contingent consideration related to business combinations 120 — — 120 Total Liabilities $ 4,316 $ — $ 4,196 $ 120

Post-Employment Benefits (Table

Post-Employment Benefits (Tables)	6 Months Ended
	Jun. 30, 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 Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost - benefits earned during the period $ 67 $ 70 $ 145 $ 142 $ 6 $ 6 $ 13 $ 13 Interest cost on projected benefit obligations 77 71 155 143 12 11 24 22 Expected return on plan assets (171) (153) (342) (305) (8) (8) (16) (16) Net amortization of: Actuarial loss, net 49 40 103 82 9 6 17 12 Prior service cost (credit) 1 — 1 — (12) (12) (23) (23) Net cost - continuing operations $ 23 $ 28 $ 62 $ 62 $ 7 $ 3 $ 15 $ 8

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Information
Schedule of segment information - net sales and operating earnings	Net Sales to External Customers Operating Earnings Three Months Six Months Three Months Six Months Ended June 30 Ended June 30 Ended June 30 Ended June 30 (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Established Pharmaceutical Products $ 1,129 $ 1,021 $ 2,173 $ 1,971 $ 208 $ 180 $ 375 $ 320 Nutritional Products 1,858 1,731 3,614 3,373 424 392 789 743 Diagnostic Products 1,873 1,273 3,710 2,431 489 338 932 622 Cardiovascular and Neuromodulation Products 2,421 2,260 4,744 4,363 761 689 1,485 1,308 Total Reportable Segments 7,281 6,285 14,241 12,138 1,882 1,599 3,581 2,993 Other 486 352 916 834 Net Sales $ 7,767 $ 6,637 $ 15,157 $ 12,972 Corporate functions and benefit plans costs (140) (104) (292) (197) Non-reportable segments 125 74 217 120 Net interest expense (189) (183) (388) (387) Share-based compensation (a) (101) (92) (313) (263) Amortization of intangible assets (562) (392) (1,146) (914) Other, net (b) (238) (607) (451) (321) Earnings from continuing operations before taxes $ 777 $ 295 $ 1,208 $ 1,031 (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 for the six months ended June 30, 2018 includes inventory step-up amortization. Other, net for the three and six months ended June 30, 2018, includes restructuring charges and integration costs associated with the acquisitions of St. Jude Medical and Alere. Other, net for the six months ended June 30, 2017, includes the gain on the sale of the AMO business. Other, net for the three and six months ended June 30, 2017, includes 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	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Oct. 31, 2017
Recently Adopted Accounting Standards
Retained earnings			$ 24,080		$ 23,978
ASU 2017-07
Recently Adopted Accounting Standards
Reclassification of operating earnings to other (income) expense, net	$ 40	$ 80
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		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Revenue
Number of reportable segments | segment			4
Net sales	$ 7,767	$ 6,637	$ 15,157	$ 12,972
Minimum [Member]
Revenue
Number of period for settlement of rebate after sale			1 month
Number of period for cash discounts			15 days
Maximum [Member]
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	2,702	2,360	$ 5,377	4,684
Int'l
Revenue
Net sales	5,065	4,277	9,780	8,288
Established Pharmaceutical Products
Revenue
Net sales	1,129	1,021	2,173	1,971
Established Pharmaceutical Products | Int'l
Revenue
Net sales	1,129	1,021	2,173	1,971
Nutritional Products
Revenue
Net sales	1,858	1,731	3,614	3,373
Nutritional Products | U.S.
Revenue
Net sales	781	773	1,539	1,503
Nutritional Products | Int'l
Revenue
Net sales	1,077	958	2,075	1,870
Diagnostic Products
Revenue
Net sales	1,873	1,273	3,710	2,431
Diagnostic Products | U.S.
Revenue
Net sales	652	385	1,352	756
Diagnostic Products | Int'l
Revenue
Net sales	1,221	888	2,358	1,675
Cardiovascular and Neuromodulation Products
Revenue
Net sales	2,421	2,260	4,744	4,363
Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	1,147	1,110	2,270	2,171
Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	1,274	1,150	2,474	2,192
Other
Revenue
Net sales	486	352	916	834
Other | U.S.
Revenue
Net sales	122	92	216	254
Other | Int'l
Revenue
Net sales	364	260	700	580
Key Emerging Markets | Established Pharmaceutical Products
Revenue
Net sales	866	798	1,659	1,528
Key Emerging Markets | Established Pharmaceutical Products | Int'l
Revenue
Net sales	866	798	1,659	1,528
Other | Established Pharmaceutical Products
Revenue
Net sales	263	223	514	443
Other | Established Pharmaceutical Products | Int'l
Revenue
Net sales	263	223	514	443
Pediatric Nutritionals | Nutritional Products
Revenue
Net sales	1,051	987	2,045	1,914
Pediatric Nutritionals | Nutritional Products | U.S.
Revenue
Net sales	469	459	917	891
Pediatric Nutritionals | Nutritional Products | Int'l
Revenue
Net sales	582	528	1,128	1,023
Adult Nutritionals | Nutritional Products
Revenue
Net sales	807	744	1,569	1,459
Adult Nutritionals | Nutritional Products | U.S.
Revenue
Net sales	312	314	622	612
Adult Nutritionals | Nutritional Products | Int'l
Revenue
Net sales	495	430	947	847
Core Laboratory | Diagnostic Products
Revenue
Net sales	1,128	1,020	2,147	1,931
Core Laboratory | Diagnostic Products | U.S.
Revenue
Net sales	248	232	476	448
Core Laboratory | Diagnostic Products | Int'l
Revenue
Net sales	880	788	1,671	1,483
Molecular | Diagnostic Products
Revenue
Net sales	122	114	240	226
Molecular | Diagnostic Products | U.S.
Revenue
Net sales	38	41	77	86
Molecular | Diagnostic Products | Int'l
Revenue
Net sales	84	73	163	140
Point of Care | Diagnostic Products
Revenue
Net sales	139	139	280	274
Point of Care | Diagnostic Products | U.S.
Revenue
Net sales	108	112	218	222
Point of Care | Diagnostic Products | Int'l
Revenue
Net sales	31	27	62	52
Rapid Diagnostics | Diagnostic Products
Revenue
Net sales	484		1,043
Rapid Diagnostics | Diagnostic Products | U.S.
Revenue
Net sales	258		581
Rapid Diagnostics | Diagnostic Products | Int'l
Revenue
Net sales	226		462
Rhythm Management | Cardiovascular and Neuromodulation Products
Revenue
Net sales	543	552	1,078	1,063
Rhythm Management | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	262	273	526	533
Rhythm Management | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	281	279	552	530
Electrophysiology | Cardiovascular and Neuromodulation Products
Revenue
Net sales	428	343	819	659
Electrophysiology | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	193	154	375	299
Electrophysiology | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	235	189	444	360
Heart Failure | Cardiovascular and Neuromodulation Products
Revenue
Net sales	163	159	316	301
Heart Failure | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	117	123	231	232
Heart Failure | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	46	36	85	69
Vascular | Cardiovascular and Neuromodulation Products
Revenue
Net sales	750	731	1,489	1,434
Vascular | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	284	295	570	599
Vascular | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	466	436	919	835
Structural Heart | Cardiovascular and Neuromodulation Products
Revenue
Net sales	315	268	608	524
Structural Heart | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	118	104	227	211
Structural Heart | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	197	164	381	313
Neuromodulation | Cardiovascular and Neuromodulation Products
Revenue
Net sales	222	207	434	382
Neuromodulation | Cardiovascular and Neuromodulation Products | U.S.
Revenue
Net sales	173	161	341	297
Neuromodulation | Cardiovascular and Neuromodulation Products | Int'l
Revenue
Net sales	$ 49	$ 46	$ 93	$ 85

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Diagnostic Products
Remaining Performance Obligations
Remaining performance obligations	$ 2,800
Cardiovascular and Neuromodulation Products
Remaining Performance Obligations
Remaining performance obligations	$ 340
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
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]: 2020-07-01
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)	6 Months Ended
	Jun. 30, 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)	Jun. 30, 2018
Capitalized commission fees | Minimum [Member]
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	2 years
Capitalized commission fees | Maximum [Member]
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	10 years
Capitalized transmitter costs | Minimum [Member]
Assets Recognized for Costs to Obtain a Contract with a Customer
Amortization period	8 years
Capitalized transmitter costs | Maximum [Member]
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	6 Months Ended
	Jun. 30, 2018USD ($)
Contract Liabilities
Beginning Balance	$ 198
Unearned revenue from cash received during the period	162
Revenue recognized that was included in contract liability balance at beginning of period	(103)
Ending Balance	$ 257

Discontinued Operations - By Di

Discontinued Operations - By Disposal (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
AbbVie Inc.
Discontinued Operations
Earnings from discontinued operations, net of tax	$ 24	$ 46

Assets Held for Disposition (De

Assets Held for Disposition (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Disposals as part of acquisitions
Current assets held for disposition	$ 17	$ 20
Triage MeterPro cardiovascular and toxicology business | Dispositions held for sale
Disposals as part of acquisitions
Trade receivables, net	13	12
Total inventories	4	8
Current assets held for disposition	17	20
Net property and equipment		56
Intangible assets, net of amortization	19	18
Goodwill	102	102
Non-current assets held for disposition	121	176
Total assets held for disposition	$ 138	$ 196

Supplemental Financial Inform44

Supplemental Financial Information - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Supplemental Financial Information
Earnings from continuing operations allocated to common shares	$ 714	$ 269	$ 1,121	$ 653
Net earnings allocated to common shares	$ 730	$ 281	$ 1,144	$ 698

Supplemental Financial Inform45

Supplemental Financial Information - Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flow disclosures
Payment of cash taxes	$ 425
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	$ 58	$ 321

Supplemental Financial Inform46

Supplemental Financial Information - Other income and expense (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosures
Earnings (losses) before taxes			$ 777	$ 295	$ 1,208	$ 1,031
Proceeds from the sale of Mylan N.V. shares						1,924
Mylan N. V. (Investee)
Disclosures
Number of shares in investment sold	6
Equity securities | Mylan N. V. (Investee)
Disclosures
Proceeds from the sale of Mylan N.V. shares	$ 239	$ 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				$ 0		(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	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Investments
Long-term Investments	$ 940	$ 883
Equity method investments carrying value	260
Equity method investments fair value not determinable	245
Unrealized gain on Investment	50
Equity securities
Investments
Long-term Investments	856	797
Equity securities | St Jude Medical
Investments
Securities in mutual funds held in a rabbi trust	340
Other
Investments
Long-term Investments	$ 84	$ 86

Changes in Accumulated Other 48

Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period			$ 30,897
Other comprehensive income (loss)	$ (1,180)	$ 282	(856)	$ 864
End of the period	30,577		30,577
Cumulative Foreign Currency Translation Adjustments
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period	(3,119)	(4,284)	(3,452)	(4,959)
Impact of business dispositions				142
Other comprehensive income (loss) before reclassifications	(1,359)	288	(1,026)	821
Other comprehensive income (loss)	(1,359)	288	(1,026)	821
End of the period	(4,478)	(3,996)	(4,478)	(3,996)
Net Actuarial (Losses) and Prior Service (Costs) and Credits
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period	(2,498)	(2,244)	(2,521)	(2,284)
Impact of business dispositions				6
Other comprehensive income (loss) before reclassifications	30		20
Amounts reclassified from accumulated other comprehensive income	31	29	64	63
Other comprehensive income (loss)	61	29	84	63
End of the period	(2,437)	(2,215)	(2,437)	(2,215)
Cumulative Unrealized Gains (Losses) on Marketable Equity Securities
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period		11	(5)	(69)
Other comprehensive income (loss) before reclassifications		2		183
Amounts reclassified from accumulated other comprehensive income				(101)
Other comprehensive income (loss)		2		82
End of the period		13		13
Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges
Changes in accumulated other comprehensive income (loss), net of income taxes
Beginning of the period	(116)	(15)	(84)	49
Impact of business dispositions				1
Other comprehensive income (loss) before reclassifications	81	(38)	29	(107)
Amounts reclassified from accumulated other comprehensive income	37	1	57	5
Other comprehensive income (loss)	118	(37)	86	(102)
End of the period	$ 2	$ (52)	2	$ (52)
ASU 2016-01 | Cumulative Unrealized Gains (Losses) on Marketable Equity Securities
Changes in accumulated other comprehensive income (loss), 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. 20, 2017	Jan. 04, 2017	Jun. 30, 2017	Dec. 31, 2016
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 business disposition				$ 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. 31, 2017USD ($)	Oct. 03, 2017USD ($)$ / shares	Sep. 30, 2017USD ($)installment	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Allocation of the fair value
Goodwill, non-deductible					$ 23,844	$ 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		3,400
Goodwill, non-deductible		4,200
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		215
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 [Member]
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	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets
Goodwill	$ 23,844	$ 24,020
Decrease in goodwill due to foreign currency translation adjustments	(288)
Increase in goodwill due to purchase price accounting adjustments	113
Established Pharmaceutical Products
Goodwill and Intangible Assets
Goodwill	3,100
Nutritional Products
Goodwill and Intangible Assets
Goodwill	286
Diagnostic Products
Goodwill and Intangible Assets
Goodwill	4,200
Cardiovascular and Neuromodulation Products
Goodwill and Intangible Assets
Goodwill	$ 15,300

Goodwill and Intangible Asset53

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets
Gross amount of amortizable intangible assets	$ 25,600	$ 25,600
Accumulated amortization of intangible assets	9,300	8,100
Increase in intangible assets due to purchase price allocation adjustments	120
Decrease in intangible assets due to foreign currency translation adjustments	(180)
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
Indefinite-lived intangible assets related to in-process research and development acquired in a business combination	$ 3,600	$ 3,900
Minimum [Member]
Goodwill and Intangible Assets
Amortization period of intangible assets	2 years
Maximum [Member]
Goodwill and Intangible Assets
Amortization period of intangible assets	20 years
Weighted Average [Member]
Goodwill and Intangible Assets
Amortization period of intangible assets	14 years

Restructuring Plans (Details)

Restructuring Plans (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Accrued balance at beginning of the period	$ 68
Restructuring charges	33
Payments and other adjustments	(43)
Accrued balance at end of the period	58
Restructuring Plan from 2014 to 2018
Restructuring reserve activity
Accrued balance at beginning of the period	141
Restructuring charges	12
Payments and other adjustments	(49)
Accrued balance at end of the period	104
Cost of products sold | Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Restructuring charges	4
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	10
Selling, general and administrative expense | Restructuring Plan in 2017 and 2018
Restructuring reserve activity
Restructuring charges	19
Selling, general and administrative expense | Restructuring Plan from 2014 to 2018
Restructuring reserve activity
Restructuring charges	$ 5

Incentive Stock Programs - Gene

Incentive Stock Programs - General (Details)	6 Months Ended
	Jun. 30, 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)	5,715,959
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award
Grants in period, restricted stock (in shares)	864,846
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Awards and units granted during period (in shares)	7,845,773

Incentive Stock Programs - Opti

Incentive Stock Programs - Options Activity (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award
Total unrecognized compensation cost	$ 512
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	35,715,493
Stock options outstanding, weighted-average remaining life	6 years 7 months 6 days
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares	$ 41.53
Aggregate intrinsic value of options outstanding	$ 695
Exercisable options, number of shares | shares	22,611,954
Exercisable options, weighted-average remaining life	5 years 7 months 6 days
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares	$ 37.59
Aggregate intrinsic value of options exercisable	$ 529

Debt and Lines of Credit (Detai

Debt and Lines of Credit (Details) - USD ($) $ in Millions	Jun. 22, 2018	Mar. 22, 2018	Jan. 05, 2018	Jan. 31, 2018	Feb. 16, 2018
Debt and Lines of Credit
Repayments of debt				$ 3,950
Long-terms authorized for redemption					$ 5,000
Net charge for early repayment of debt		$ 14
5-year term loan
Debt and Lines of Credit
Repayments of debt			$ 2,800
Maturity period			5 years
Revolving line of credit
Debt and Lines of Credit
Repayments of debt			$ 1,150
5.125% Notes, due 2019
Debt and Lines of Credit
Repayments of debt		$ 947
Interest rate percentage		5.125%
2.35% Notes, due 2019
Debt and Lines of Credit
Repayments of debt	$ 1,300	$ 1,055
Interest rate percentage	2.35%	2.35%
Debt issued - principal amount	$ 1,795	$ 2,850

Financial Instruments, Deriva58

Financial Instruments, Derivatives and Fair Value Measures - Contracts (Details) - USD ($) $ in Billions	6 Months Ended
	Jun. 30, 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	$ 2.9	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	$ 18.5	$ 20.1

Financial Instruments, Deriva59

Financial Instruments, Derivatives and Fair Value Measures - Location of Derivative Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivative instruments, notional amount and fair value
Fair Value - Assets	$ 238	$ 138
Fair Value - Liabilities	391	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	230	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	55	21
Designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	33	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	183	117
Not designated as hedging instrument | Foreign currency forward exchange contracts | Other accrued liabilities
Derivative instruments, notional amount and fair value
Fair Value - Liabilities	$ 128	$ 99

Financial Instruments, Deriva60

Financial Instruments, Derivatives and Fair Value Measures - Gain or Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 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	$ (31)	$ 40	$ (137)	$ 14
Foreign currency forward exchange contracts | Not designated as hedging instrument | Net foreign exchange (gain) loss
Gain (loss) on derivatives
Income (expense) and Gain (loss) Reclassified into Income	(2)	(51)	(50)	(42)
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)	113	(54)	27	(145)
Income (expense) and Gain (loss) Reclassified into Income	$ (53)	$ (2)	$ (83)	(7)
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	Jun. 30, 2018	Dec. 31, 2017
Fair value, asset and liability measures
Long-term Investments	$ 940	$ 883
Foreign currency forward exchange contracts, receivable position	238	138
Foreign currency forward exchange contracts, (payable) position	(391)	(298)
Equity securities
Fair value, asset and liability measures
Long-term Investments	856	797
Carrying Value
Fair value, asset and liability measures
Total long-term debt	(20,329)	(27,718)
Foreign currency forward exchange contracts, receivable position	238	138
Foreign currency forward exchange contracts, (payable) position	(161)	(205)
Interest rate hedge contract, (payable) position	(230)	(93)
Carrying Value | Equity securities
Fair value, asset and liability measures
Long-term Investments	856	797
Carrying Value | Other
Fair value, asset and liability measures
Long-term Investments	84	86
Fair Value
Fair value, asset and liability measures
Total long-term debt	(20,841)	(29,018)
Foreign currency forward exchange contracts, receivable position	238	138
Foreign currency forward exchange contracts, (payable) position	(161)	(205)
Interest rate hedge contract, (payable) position	(230)	(93)
Fair Value | Equity securities
Fair value, asset and liability measures
Long-term Investments	856	797
Fair Value | Other
Fair value, asset and liability measures
Long-term Investments	$ 84	$ 86

Financial Instruments, Deriva62

Financial Instruments, Derivatives and Fair Value Measures - Bases of Measurement (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair value, asset and liability measures
Fair Value - Assets	$ 238	$ 138
Fair Value - Liabilities	391	298
Long-term Investments	940	883
Recurring
Fair value, asset and liability measures
Equity securities	353	374
Total Assets	591	512
Fair value of hedged long-term debt	3,763	3,898
Interest rate swap financial instruments, liabilities	230	93
Contingent consideration related to business combinations	125	120
Total Liabilities	4,279	4,316
Recurring | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	238	138
Fair Value - Liabilities	161	205
Recurring | Quoted Prices in Active Markets
Fair value, asset and liability measures
Equity securities	353	374
Total Assets	353	374
Recurring | Significant Other Observable Inputs
Fair value, asset and liability measures
Total Assets	238	138
Fair value of hedged long-term debt	3,763	3,898
Interest rate swap financial instruments, liabilities	230	93
Total Liabilities	4,154	4,196
Recurring | Significant Other Observable Inputs | Foreign currency forward exchange contracts
Fair value, asset and liability measures
Fair Value - Assets	238	138
Fair Value - Liabilities	161	205
Recurring | Significant Unobservable Inputs
Fair value, asset and liability measures
Contingent consideration related to business combinations	125	120
Total Liabilities	125	120
Equity securities
Fair value, asset and liability measures
Long-term Investments	$ 856	$ 797

Litigation and Environmental 63

Litigation and Environmental Matters (Details) $ in Millions	Jun. 30, 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	105
Other legal proceedings and environmental exposures | Minimum [Member]
Loss Contingencies
Other legal proceedings or environmental exposure	85
Other legal proceedings and environmental exposures | Maximum [Member]
Loss Contingencies
Other legal proceedings or environmental exposure	$ 130

Post-Employment Benefits - Gene

Post-Employment Benefits - General (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
ASU 2017-07
Post-employment Obligations and Other Long-term Liabilities:
Reclassification of operating earnings to other (income) expense, net		$ 40		$ 80
Defined Benefit Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	$ 67	70	$ 145	142
Interest cost on projected benefit obligations	77	71	155	143
Expected return on plan assets	(171)	(153)	(342)	(305)
Net amortization of:
Actuarial loss, net	49	40	103	82
Prior service cost (credit)	1		1
Net cost - continuing operations	23	28	62	62
Post-employment Obligations and Other Long-term Liabilities:
Company contributions			58	321
Medical and Dental Plans
Defined benefit plan net periodic benefit cost
Service cost - benefits earned during the period	6	6	13	13
Interest cost on projected benefit obligations	12	11	24	22
Expected return on plan assets	(8)	(8)	(16)	(16)
Net amortization of:
Actuarial loss, net	9	6	17	12
Prior service cost (credit)	(12)	(12)	(23)	(23)
Net cost - continuing operations	$ 7	$ 3	15	8
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			6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Taxes on Earnings
Excess tax benefits from share based combinations				$ 71
Earnings from discontinued operations, net of tax	$ 15		$ 13	$ 24	$ 46
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		$ 1,460		$ 1,476
State
Taxes on Earnings
Provisional transition tax liability				16
Discontinued operations
Taxes on Earnings
Tax expense (benefit) from resolution of various tax positions related to prior years				(24)
Decrease in gross unrecognized tax benefits				(31)
Minimum [Member]
Taxes on Earnings
Decrease reasonably possible in gross unrecognized tax benefits	500			500
Maximum [Member]
Taxes on Earnings
Decrease reasonably possible in gross unrecognized tax benefits	$ 700			$ 700
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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Information
Net Sales to External Customers	$ 7,767	$ 6,637	$ 15,157	$ 12,972
Operating Earnings	882	386	1,490	144
Amortization of intangible assets	(562)	(392)	(1,146)	(914)
Earnings from continuing operations before taxes	777	295	$ 1,208	1,031
Annual share-based awards recognized in first quarter (as a percent)			50.00%
Established Pharmaceutical Products
Segment Information
Net Sales to External Customers	1,129	1,021	$ 2,173	1,971
Nutritional Products
Segment Information
Net Sales to External Customers	1,858	1,731	3,614	3,373
Diagnostic Products
Segment Information
Net Sales to External Customers	1,873	1,273	3,710	2,431
Cardiovascular and Neuromodulation Products
Segment Information
Net Sales to External Customers	2,421	2,260	4,744	4,363
Other
Segment Information
Net Sales to External Customers	486	352	916	834
Total Reportable Segments
Segment Information
Net Sales to External Customers	7,281	6,285	14,241	12,138
Operating Earnings	1,882	1,599	3,581	2,993
Total Reportable Segments | Established Pharmaceutical Products
Segment Information
Net Sales to External Customers	1,129	1,021	2,173	1,971
Operating Earnings	208	180	375	320
Total Reportable Segments | Nutritional Products
Segment Information
Net Sales to External Customers	1,858	1,731	3,614	3,373
Operating Earnings	424	392	789	743
Total Reportable Segments | Diagnostic Products
Segment Information
Net Sales to External Customers	1,873	1,273	3,710	2,431
Operating Earnings	489	338	932	622
Total Reportable Segments | Cardiovascular and Neuromodulation Products
Segment Information
Net Sales to External Customers	2,421	2,260	4,744	4,363
Operating Earnings	761	689	1,485	1,308
Corporate functions
Segment Information
Corporate functions and benefit plans costs	(140)	(104)	(292)	(197)
Reconciling items
Segment Information
Non-reportable segments	125	74	217	120
Net interest expense	(189)	(183)	(388)	(387)
Share-based compensation (a)	(101)	(92)	(313)	(263)
Amortization of intangible assets	(562)	(392)	(1,146)	(914)
Other, net (b)	$ (238)	$ (607)	$ (451)	$ (321)