Cover
Cover | 9 Months Ended |
Sep. 30, 2023 shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
Document Transition Report | false |
Entity File Number | 1-2189 |
Entity Registrant Name | ABBOTT LABORATORIES |
Entity Incorporation, State or Country Code | IL |
Entity Tax Identification Number | 36-0698440 |
Entity Address, Address Line One | 100 Abbott Park Road |
Entity Address, City or Town | Abbott Park |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60064-6400 |
City Area Code | 224 |
Local Phone Number | 667-6100 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,736,058,536 |
Entity Central Index Key | 0000001800 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
NEW YORK STOCK EXCHANGE, INC. | |
Document and Entity Information | |
Title of 12(b) Security | Common Shares, Without Par Value |
Trading Symbol | ABT |
Security Exchange Name | NYSE |
CHICAGO STOCK EXCHANGE, INC | |
Document and Entity Information | |
Title of 12(b) Security | Common Shares, Without Par Value |
Trading Symbol | ABT |
Security Exchange Name | CHX |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 10,143 | $ 10,410 | $ 29,868 | $ 33,562 |
Cost of products sold, excluding amortization of intangible assets | 4,605 | 4,629 | 13,419 | 14,549 |
Amortization of intangible assets | 496 | 498 | 1,485 | 1,517 |
Research and development | 672 | 782 | 2,041 | 2,163 |
Selling, general and administrative | 2,723 | 2,731 | 8,225 | 8,275 |
Total operating cost and expenses | 8,496 | 8,640 | 25,170 | 26,504 |
Operating earnings | 1,647 | 1,770 | 4,698 | 7,058 |
Interest expense | 166 | 141 | 478 | 404 |
Interest (income) | (97) | (55) | (296) | (95) |
Net foreign exchange (gain) loss | (10) | 19 | 17 | 16 |
Other (income) expense, net | (83) | (93) | (370) | (253) |
Earnings before taxes | 1,671 | 1,758 | 4,869 | 6,986 |
Taxes on earnings | 235 | 323 | 740 | 1,086 |
Net Earnings | $ 1,436 | $ 1,435 | $ 4,129 | $ 5,900 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.82 | $ 0.82 | $ 2.36 | $ 3.35 |
Diluted Earnings Per Common Share (in dollars per share) | $ 0.82 | $ 0.81 | $ 2.35 | $ 3.32 |
Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share (in shares) | 1,738,700 | 1,752,968 | 1,740,255 | 1,756,209 |
Dilutive Common Stock Options (in shares) | 9,589 | 10,685 | 9,819 | 11,638 |
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options (in shares) | 1,748,289 | 1,763,653 | 1,750,074 | 1,767,847 |
Outstanding Common Stock Options Having No Dilutive Effect (in shares) | 7,334 | 5,445 | 5,474 | 2,655 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||||
Net Earnings | $ 1,436 | $ 1,435 | $ 4,129 | $ 5,900 | |
Foreign currency translation gain (loss) adjustments | (480) | (1,008) | (393) | (1,429) | |
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $(1) and $(4) in 2023 and $11 and $36 in 2022 | (9) | 56 | (13) | 172 | |
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $30 and $(24) in 2023 and $50 and $96 in 2022 | 80 | 213 | (23) | 186 | |
Other comprehensive income (loss) | (409) | (739) | (429) | (1,071) | |
Comprehensive Income | 1,027 | $ 696 | 3,700 | $ 4,829 | |
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax: | |||||
Cumulative foreign currency translation (loss) adjustments | (7,126) | (7,126) | $ (6,733) | ||
Net actuarial (losses) and prior service (costs) and credits | (1,506) | (1,506) | (1,493) | ||
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other | 152 | 152 | 175 | ||
Accumulated other comprehensive income (loss) | $ (8,480) | $ (8,480) | $ (8,051) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax (benefit) | $ (1) | $ 11 | $ (4) | $ 36 |
Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification, tax (benefit) | $ 30 | $ 50 | $ (24) | $ 96 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 6,709 | $ 9,882 |
Short-term investments | 338 | 288 |
Trade receivables, less allowances of $472 in 2023 and $500 in 2022 | 6,499 | 6,218 |
Inventories: | ||
Finished products | 3,847 | 3,805 |
Work in process | 888 | 680 |
Materials | 1,915 | 1,688 |
Total inventories | 6,650 | 6,173 |
Prepaid expenses and other receivables | 2,468 | 2,663 |
Total Current Assets | 22,664 | 25,224 |
Investments | 788 | 766 |
Property and equipment, at cost | 21,111 | 20,212 |
Less: accumulated depreciation and amortization | 11,559 | 11,050 |
Net property and equipment | 9,552 | 9,162 |
Intangible assets, net of amortization | 9,282 | 10,454 |
Goodwill | 23,277 | 22,799 |
Deferred income taxes and other assets | 6,527 | 6,033 |
Total Assets | 72,090 | 74,438 |
Current Liabilities: | ||
Trade accounts payable | 3,961 | 4,607 |
Salaries, wages and commissions | 1,479 | 1,556 |
Other accrued liabilities | 5,347 | 5,845 |
Dividends payable | 886 | 887 |
Income taxes payable | 318 | 343 |
Current portion of long-term debt | 1,051 | 2,251 |
Total Current Liabilities | 13,042 | 15,489 |
Long-term debt | 14,477 | 14,522 |
Post-employment obligations, deferred income taxes and other long-term liabilities | 6,877 | 7,522 |
Commitments and Contingencies | ||
Shareholders’ Investment: | ||
Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued | 0 | 0 |
Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2023: 1,987,305,154; 2022: 1,986,519,278 | 24,727 | 24,709 |
Common shares held in treasury, at cost — Shares: 2023: 251,246,618; 2022: 248,724,257 | (15,686) | (15,229) |
Earnings employed in the business | 36,920 | 35,257 |
Accumulated other comprehensive income (loss) | (8,480) | (8,051) |
Total Abbott Shareholders’ Investment | 37,481 | 36,686 |
Noncontrolling Interests in Subsidiaries | 213 | 219 |
Total Shareholders’ Investment | 37,694 | 36,905 |
Total Liabilities and Shareholders' Investment | $ 72,090 | $ 74,438 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 472 | $ 500 |
Preferred shares, par value (in dollars per share) | $ 1 | $ 1 |
Preferred shares, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Common shares, authorized (in shares) | 2,400,000,000 | 2,400,000,000 |
Common shares, issued (in shares) | 1,987,305,154 | 1,986,519,278 |
Common shares held in treasury (in shares) | 251,246,618 | 248,724,257 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholders' Investment (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | $ 36,905 | |||
Net earnings | $ 1,436 | $ 1,435 | 4,129 | $ 5,900 |
Other comprehensive income (loss) | (409) | (739) | (429) | (1,071) |
Ending balance | 37,694 | 37,694 | ||
Common Shares | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | 24,612 | 24,429 | 24,709 | 24,470 |
Issued under incentive stock programs | 6 | 12 | 36 | 36 |
Share-based compensation | 116 | 123 | 531 | 572 |
Issuance of restricted stock awards | (7) | (4) | (549) | (518) |
Ending balance | 24,727 | 24,560 | 24,727 | 24,560 |
Common Shares Held in Treasury | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | (15,722) | (13,720) | (15,229) | (11,822) |
Issued under incentive stock programs | 36 | 31 | 288 | 261 |
Purchased | 0 | (866) | (745) | (2,994) |
Ending balance | (15,686) | (14,555) | (15,686) | (14,555) |
Earnings Employed in the Business | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | 36,355 | 34,487 | 35,257 | 31,528 |
Net earnings | 1,436 | 1,435 | 4,129 | 5,900 |
Cash dividends declared on common shares | (889) | (822) | (2,668) | (2,475) |
Effect of common and treasury share transactions | 18 | 15 | 202 | 162 |
Ending balance | 36,920 | 35,115 | 36,920 | 35,115 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | (8,071) | (8,706) | (8,051) | (8,374) |
Other comprehensive income (loss) | (409) | (739) | (429) | (1,071) |
Ending balance | (8,480) | (9,445) | (8,480) | (9,445) |
Noncontrolling Interests in Subsidiaries | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance | 230 | 226 | 219 | 222 |
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases | (17) | (17) | (6) | (13) |
Ending balance | $ 213 | $ 209 | $ 213 | $ 209 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Investment (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance, treasury stock, common (in shares) | 248,724,257 | |||
Ending balance, treasury stock, common (in shares) | 251,246,618 | 251,246,618 | ||
Common Shares | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance (in shares) | 1,987,181,491 | 1,985,676,735 | 1,986,519,278 | 1,985,273,421 |
Issued under incentive stock programs (in shares) | 123,663 | 242,705 | 785,876 | 646,019 |
Ending balance (in shares) | 1,987,305,154 | 1,985,919,440 | 1,987,305,154 | 1,985,919,440 |
Common Shares Held in Treasury | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Beginning balance, treasury stock, common (in shares) | 251,823,511 | 234,456,992 | 248,724,257 | 221,191,228 |
Issued under incentive stock programs (in shares) | 579,159 | 528,436 | 4,669,629 | 4,808,575 |
Purchased (in shares) | 2,266 | 8,417,107 | 7,191,990 | 25,963,010 |
Ending balance, treasury stock, common (in shares) | 251,246,618 | 242,345,663 | 251,246,618 | 242,345,663 |
Earnings Employed in the Business | ||||
Increase (Decrease) in Shareholders' Investment | ||||
Cash dividends declared on common shares (in dollars per share) | $ 0.51 | $ 0.47 | $ 1.53 | $ 1.41 |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flow From (Used in) Operating Activities: | ||
Net earnings | $ 4,129 | $ 5,900 |
Adjustments to reconcile net earnings to net cash from operating activities — | ||
Depreciation | 945 | 943 |
Amortization of intangible assets | 1,485 | 1,517 |
Share-based compensation | 530 | 570 |
Trade receivables | (424) | (409) |
Inventories | (527) | (1,224) |
Other, net | (1,915) | (42) |
Net Cash From Operating Activities | 4,223 | 7,255 |
Cash Flow From (Used in) Investing Activities: | ||
Acquisitions of property and equipment | (1,447) | (1,167) |
Acquisitions of businesses and technologies, net of cash acquired | (877) | 0 |
Proceeds from business dispositions | 40 | 48 |
Sales (purchases) of other investment securities, net | (45) | (3) |
Other | 20 | 14 |
Net Cash From (Used in) Investing Activities | (2,309) | (1,108) |
Cash Flow From (Used in) Financing Activities: | ||
Net borrowings (repayments) of short-term debt and other | (90) | 37 |
Proceeds from issuance of long-term debt | 1 | 7 |
Repayments of long-term debt | (1,447) | (753) |
Purchases of common shares | (968) | (3,110) |
Proceeds from stock options exercised | 133 | 126 |
Dividends paid | (2,668) | (2,486) |
Net Cash From (Used in) Financing Activities | (5,039) | (6,179) |
Effect of exchange rate changes on cash and cash equivalents | (48) | (173) |
Net Increase (Decrease) in Cash and Cash Equivalents | (3,173) | (205) |
Cash and Cash Equivalents, Beginning of Year | 9,882 | 9,799 |
Cash and Cash Equivalents, End of Period | $ 6,709 | $ 9,594 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 2022. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | Note 2 — New Accounting Standards Recently Adopted Accounting Standards |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
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. Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The following tables provide detail by sales category: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 987 $ 987 $ — $ 1,001 $ 1,001 Other — 381 381 — 325 325 Total — 1,368 1,368 — 1,326 1,326 Nutritionals — Pediatric Nutritionals 506 495 1,001 357 470 827 Adult Nutritionals 354 718 1,072 329 639 968 Total 860 1,213 2,073 686 1,109 1,795 Diagnostics — Core Laboratory 317 997 1,314 281 938 1,219 Molecular 38 95 133 65 118 183 Point of Care 97 43 140 92 35 127 Rapid Diagnostics 561 301 862 1,273 839 2,112 Total 1,013 1,436 2,449 1,711 1,930 3,641 Medical Devices — Rhythm Management 271 292 563 263 270 533 Electrophysiology 246 298 544 225 244 469 Heart Failure 217 67 284 207 51 258 Vascular 251 421 672 213 393 606 Structural Heart 223 264 487 207 213 420 Neuromodulation 188 39 227 156 36 192 Diabetes Care 544 928 1,472 423 744 1,167 Total 1,940 2,309 4,249 1,694 1,951 3,645 Other 4 — 4 3 — 3 Total $ 3,817 $ 6,326 $ 10,143 $ 4,094 $ 6,316 $ 10,410 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 2,889 $ 2,889 $ — $ 2,853 $ 2,853 Other — 955 955 — 843 843 Total — 3,844 3,844 — 3,696 3,696 Nutritionals — Pediatric Nutritionals 1,472 1,477 2,949 1,108 1,491 2,599 Adult Nutritionals 1,081 2,086 3,167 1,016 2,027 3,043 Total 2,553 3,563 6,116 2,124 3,518 5,642 Diagnostics — Core Laboratory 917 2,872 3,789 836 2,788 3,624 Molecular 128 293 421 308 507 815 Point of Care 289 127 416 284 110 394 Rapid Diagnostics 1,975 853 2,828 5,436 2,923 8,359 Total 3,309 4,145 7,454 6,864 6,328 13,192 Medical Devices — Rhythm Management 800 873 1,673 775 830 1,605 Electrophysiology 729 873 1,602 667 773 1,440 Heart Failure 661 199 860 610 167 777 Vascular 733 1,271 2,004 650 1,228 1,878 Structural Heart 652 794 1,446 604 667 1,271 Neuromodulation 528 122 650 456 112 568 Diabetes Care 1,528 2,681 4,209 1,165 2,320 3,485 Total 5,631 6,813 12,444 4,927 6,097 11,024 Other 10 — 10 8 — 8 Total $ 11,503 $ 18,365 $ 29,868 $ 13,923 $ 19,639 $ 33,562 Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $30 million of sales in the third quarter of 2022 and $87 million in the first nine months of 2022 were moved from Rapid Diagnostics to Heart Failure. Remaining Performance Obligations As of September 30, 2023, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $4.2 billion in the Diagnostics segment and approximately $456 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 59 percent of these remaining performance obligations over the next 24 months, approximately 17 percent 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 FASB 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. Other Contract Assets and Liabilities Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at the net amount expected to be collected. 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 the 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 Medical Devices 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 December 31, 2022 $ 500 Unearned revenue from cash received during the period 346 Revenue recognized related to contract liability balance (292) Balance at September 30, 2023 $ 554 |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Information | Note 4 — 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. Net earnings allocated to common shares for the three months ended September 30, 2023 and 2022 were $1.431 billion and $1.429 billion, respectively, and for the nine months ended September 30, 2023 and 2022 were $4.113 billion and $5.876 billion, respectively. Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first nine months of 2023 includes $302 million of pension contributions and the payment of cash taxes of approximately $1.180 billion. The first nine months of 2022 includes $362 million of pension contributions and the payment of cash taxes of approximately $987 million. The following summarizes the activity for the first nine months of 2023 related to the allowance for doubtful accounts as of September 30, 2023: (in millions) Allowance for Doubtful Accounts: Balance at December 31, 2022 $ 262 Provisions/charges to income 22 Amounts charged off and other deductions (25) Balance at September 30, 2023 $ 259 The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances. The components of long-term investments as of September 30, 2023 and December 31, 2022 are as follows: (in millions) September 30, December 31, Long-term Investments: Equity securities $ 566 $ 558 Other 222 208 Total $ 788 $ 766 The increase in Abbott’s long-term investments as of September 30, 2023 versus the balance as of December 31, 2022 is primarily due to investments acquired as part of a business acquisition and other additional investments, partially offset by the impact of equity method investment losses. Abbott’s equity securities as of September 30, 2023 include $291 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. 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 September 30, 2023 with a carrying value of $175 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of approximately $87 million that do not have a readily determinable fair value. |
Changes In Accumulated Other Co
Changes In Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes In Accumulated Other Comprehensive Income (Loss) | Note 5 — Changes In Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows: Three Months Ended September 30 Cumulative Foreign Net Actuarial (Losses) and Cumulative Gains (Losses) (in millions) 2023 2022 2023 2022 2023 2022 Balance at June 30 $ (6,646) $ (6,260) $ (1,497) $ (2,554) $ 72 $ 108 Other comprehensive income (loss) before reclassifications (497) (1,008) (9) 15 96 278 Amounts reclassified from accumulated other comprehensive income 17 — — 41 (16) (65) Net current period comprehensive income (loss) (480) (1,008) (9) 56 80 213 Balance at September 30 $ (7,126) $ (7,268) $ (1,506) $ (2,498) $ 152 $ 321 Nine Months Ended September 30 Cumulative Foreign Net Actuarial (Losses) and Cumulative Gains (Losses) (in millions) 2023 2022 2023 2022 2023 2022 Balance at January 1 $ (6,733) $ (5,839) $ (1,493) $ (2,670) $ 175 $ 135 Other comprehensive income (loss) before reclassifications (410) (1,429) (6) 45 134 289 Amounts reclassified from accumulated other comprehensive income 17 — (7) 127 (157) (103) Net current period comprehensive income (loss) (393) (1,429) (13) 172 (23) 186 Balance at September 30 $ (7,126) $ (7,268) $ (1,506) $ (2,498) $ 152 $ 321 Reclassified amounts for cash flow hedges are recorded as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit costs; see Note 13 for additional details. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Note 6 — Business Acquisitions On September 22, 2023, Abbott completed the acquisition of Bigfoot Biomedical, Inc. (Bigfoot), which will further Abbott's efforts to develop connected solutions for making diabetes management even more personal and precise. The purchase price, the allocation of acquired assets and liabilities, and the revenue and net income contributed by Bigfoot since the date of acquisition are not material to Abbott's condensed consolidated financial statements. On April 27, 2023, Abbott completed the acquisition of Cardiovascular Systems, Inc. (CSI) for $20 per common share, which equated to a purchase price of $851 million. The transaction was funded with cash on hand and accounted for as a business combination. CSI's atherectomy system, which is used in treating peripheral and coronary artery disease, adds complementary technologies to Abbott's portfolio of vascular device offerings. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7 — Goodwill and Intangible Assets The total amount of goodwill reported was $23.3 billion at September 30, 2023 and $22.8 billion at December 31, 2022. Recent business acquisitions increased goodwill by approximately $590 million and f oreign currency translation adjustments decreased goodwill by approximately $112 million in the first nine months of 2023. The amount of goodwill related to reportable segments at September 30, 2023 was $2.6 billion for the Established Pharmaceutical Products segment, $285 million for the Nutritional Products segment, $3.5 billion for the Diagnostic Products segment, and $16.8 billion for the Medical Devices segment. There were no reductions of goodwill relating to impairments in the first nine months of 2023. The gross amount of amortizable intangible assets, primarily product rights and technology, was $27.5 billion and $27.2 billion as of September 30, 2023 and December 31, 2022, respectively. The gross amount of amortizable intangible assets increased by $305 million due to a recent business acquisition. Accumulated amortization was $19.0 billion and $17.6 billion as of September 30, 2023 and December 31, 2022, respectively. Foreign currency translation adjustments decreased intangible assets by $14 million in the first nine months of 2023. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2023, $1.9 billion in 2024, $1.7 billion in 2025, $1.6 billion in 2026 and $1.3 billion in 2027. Indefinite-lived intangible assets, which relate to in-process research and development (IPR&D) acquired in a business combination, were approximately $832 million as of September 30, 2023 and $807 million as of December 31, 2022 . Recent business acquisitions increased IPR&D by $80 million. This increase was partially offset by $55 million of charges recorded on the Research and development line of the Condensed Consolidated Statement of Earnings for the impairment of certain indefinite-lived intangible assets related to the Medical Devices reportable segment. |
Restructuring Plans
Restructuring Plans | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plans | Note 8 — Restructuring Plans In 2022 and 2023, Abbott management approved various plans to streamline operations in order to reduce costs and improve efficiencies in its medical devices, nutritional, diagnostic, and established pharmaceutical businesses. In the nine months ended September 30, 2023, Abbott recorded employee related severance and other charges of approximately $102 million, of which approximately $31 million was recorded in Cost of products sold, approximately $16 million was recorded in Research and development, and approximately $55 million was recorded in Selling, general and administrative expenses. In addition, Abbott recognized fixed asset impairment charges of approximately $29 million related to these restructuring plans. The following summarizes the activity related to these restructuring actions and the status of the related accruals as of September 30, 2023: (in millions) Total Accrued balance at December 31, 2022 $ 228 Restructuring charges in 2023 102 Payments and other adjustments (181) Accrued balance at September 30, 2023 $ 149 |
Incentive Stock Programs
Incentive Stock Programs | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Stock Programs | Note 9 — Incentive Stock Programs In the first nine months of 2023, Abbott granted 1,986,671 stock options, 463,856 restricted stock awards and 4,927,476 restricted stock units under its incentive stock program. At September 30, 2023, approximately 74 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at September 30, 2023 is as follows: Outstanding Exercisable Number of shares 29,342,041 24,718,236 Weighted average remaining life (years) 5.0 4.3 Weighted average exercise price $ 73.77 $ 66.27 Aggregate intrinsic value (in millions) $ 825 $ 825 The total unrecognized share-based compensation cost at September 30, 2023 amounted to approximately $560 million which is expected to be recognized over the next three years. |
Debt and Lines of Credit
Debt and Lines of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | Note 10 — Debt and Lines of Credit On September 27, 2023, Abbott repaid the €1.14 billion outstanding principal amount of its 0.875% Notes upon maturity. The repayment equated to approximately $1.2 billion. In September 2023, Abbott repaid approximately $197 million of debt assumed as part of a recent business acquisition. On March 15, 2022, Abbott repaid the $750 million outstanding principal amount of its 2.55% Notes upon maturity. |
Financial Instruments, Derivati
Financial Instruments, Derivatives and Fair Value Measures | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments, Derivatives and Fair Value Measures | Note 11 — 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, primarily for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with gross notional amounts totaling $7.3 billion at September 30, 2023 and $7.7 billion at December 31, 2022, are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value. Accumulated gains and losses as of September 30, 2023 will be included in Cost of products sold at the time the products are sold, generally through the next twelve 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, 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 September 30, 2023 and December 31, 2022, Abbott held the gross notional amounts of $14.2 billion and $12.0 billion, respectively, of such foreign currency forward exchange contracts. Abbott has designated a yen-denominated, 5-year term loan of approximately $401 million and $446 million as of September 30, 2023 and December 31, 2022, respectively, as a hedge of the net investment in certain foreign subsidiaries. The change in the value of the debt, which is due to changes in foreign exchange rates, is recorded in Accumulated other comprehensive income (loss), net of tax. Abbott is a party to interest rate hedge contracts with a notional amount totaling approximately $2.9 billion at September 30, 2023 and December 31, 2022 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 following table summarizes the amounts and location of certain derivative and non-derivative financial instruments as of September 30, 2023 and December 31, 2022: Fair Value - Assets Fair Value - Liabilities (in millions) September 30, December 31, 2022 Balance Sheet Caption September 30, December 31, 2022 Balance Sheet Caption Interest rate swaps designated as fair value hedges: Non-current $ — $ — Deferred income taxes and other assets $ 158 $ 136 Post-employment obligations, deferred income taxes and other long-term liabilities Current — — Prepaid expenses and other receivables 13 20 Other accrued liabilities Foreign currency forward exchange contracts: Hedging instruments 254 304 Prepaid expenses and other receivables 63 96 Other accrued liabilities Others not designated as hedges 113 108 Prepaid expenses and other receivables 115 130 Other accrued liabilities Debt designated as a hedge of net investment in a foreign subsidiary — — n/a 401 446 Long-term debt $ 367 $ 412 $ 750 $ 828 The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges 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 and nine months ended September 30, 2023 and 2022. Gain (loss) Recognized in Other Income (expense) and Gain (loss) Three Months Nine Months Three Months Nine Months (in millions) 2023 2022 2023 2022 2023 2022 2023 2022 Income Statement Caption Foreign currency forward exchange contracts designated as cash flow hedges $ 125 $ 350 $ 152 $ 442 $ 22 $ 79 $ 211 $ 149 Cost of products sold Debt designated as a hedge of net investment in a foreign subsidiary 12 24 45 108 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 (18) (85) (15) (253) Interest expense A gain of $60 million and a loss of $27 million were recognized in the three months ended September 30, 2023 and 2022, respectively, related to foreign currency forward exchange contracts not designated as a hedge. A loss of $4 million and a gain of $225 million were recognized in the first nine months ended September 30, 2023 and 2022, 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 carrying values and fair values of certain financial instruments as of September 30, 2023 and December 31, 2022 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 non-performance by these counterparties. September 30, 2023 December 31, 2022 (in millions) Carrying Fair Carrying Fair Long-term Investment Securities: Equity securities $ 566 $ 566 $ 558 $ 558 Other 222 222 208 208 Total Long-term Debt (15,528) (14,681) (16,773) (16,313) Foreign Currency Forward Exchange Contracts: Receivable position 367 367 412 412 (Payable) position (178) (178) (226) (226) Interest Rate Hedge Contracts: Receivable position — — — — (Payable) position (171) (171) (156) (156) The fair value of the debt was determined based on significant other observable inputs, including current interest rates. The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet: Basis of Fair Value Measurement (in millions) Outstanding Quoted Significant Significant September 30, 2023: Equity securities $ 304 $ 304 $ — $ — Foreign currency forward exchange contracts 367 — 367 — Total Assets $ 671 $ 304 $ 367 $ — Fair value of hedged long-term debt $ 2,702 $ — $ 2,702 $ — Interest rate swap derivative financial instruments 171 — 171 — Foreign currency forward exchange contracts 178 — 178 — Contingent consideration related to business combinations 109 — — 109 Total Liabilities $ 3,160 $ — $ 3,051 $ 109 December 31, 2022: Equity securities $ 307 $ 307 $ — $ — Foreign currency forward exchange contracts 412 — 412 — Total Assets $ 719 $ 307 $ 412 $ — Fair value of hedged long-term debt $ 2,691 $ — $ 2,691 $ — Interest rate swap derivative financial instruments 156 156 Foreign currency forward exchange contracts 226 — 226 — Contingent consideration related to business combinations 130 — — 130 Total Liabilities $ 3,203 $ — $ 3,073 $ 130 |
Litigation and Environmental Ma
Litigation and Environmental Matters | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Environmental Matters | Note 12 — 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 $25 million to $35 million. The recorded accrual balance at September 30, 2023 for these proceedings and exposures was approximately $30 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations. |
Post-Employment Benefits
Post-Employment Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Postemployment Benefits [Abstract] | |
Post-Employment Benefits | Note 13 — Post-Employment Benefits Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. Net cost recognized for the three and nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans Three Months Nine Months Three Months Nine Months (in millions) 2023 2022 2023 2022 2023 2022 2023 2022 Service cost - benefits earned during the period $ 56 $ 92 $ 174 $ 282 $ 10 $ 13 $ 29 $ 38 Interest cost on projected benefit obligations 114 74 342 225 15 9 45 27 Expected return on plan assets (244) (231) (729) (701) (6) (8) (18) (23) Curtailment gain — — (14) — — — — — Net amortization of: Actuarial loss, net 2 58 8 174 (1) 2 (2) 8 Prior service cost (credit) 1 — 1 1 (3) (6) (10) (18) Net cost (credit) $ (71) $ (7) $ (218) $ (19) $ 15 $ 10 $ 44 $ 32 Abbott funds its domestic defined benefit plans according to Internal Revenue Service funding limitations. International pension plans are funded according to similar regulations. In the first nine months of 2023 and 2022, $302 million and $362 million, respectively, were contributed to defined benefit plans. In the first nine months of 2023 and 2022, $28 million was contributed, in each year, to the post-employment medical and dental plans. |
Taxes on Earnings
Taxes on Earnings | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Note 14 — Taxes on Earnings Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first nine months of 2023 and 2022, taxes on earnings include approximately $11 million and $36 million, respectively, in excess tax benefits associated with share-based compensation. In the first nine months of 2023 and 2022, taxes on earnings also include approximately $59 million and $20 million, respectively, of tax expense as the 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 approximately $55 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters. In September 2023, Abbott received a Statutory Notice of Deficiency (SNOD) from the U.S. Internal Revenue Service (IRS) for the 2019 Federal tax year in the amount of $417 million. The primary adjustments proposed in the SNOD relate to the reallocation of income between Abbott’s U.S. entities and its foreign affiliates. Abbott believes that the income reallocation adjustments proposed in the SNOD are without merit, in part because certain adjustments contradict methods that were agreed to with the IRS in prior audit periods. The SNOD also contains other proposed adjustments that Abbott believes are erroneous and unsupported. Abbott expects to file a petition with the U.S. Tax Court contesting the 2019 SNOD in December of 2023. Abbott’s 2017 and 2018 Federal tax years are also currently under examination by the IRS with respect to income reallocation issues similar to those included in the 2019 Federal tax year. Abbott intends to vigorously defend its filing positions through ongoing discussions with the IRS, the IRS independent appeals process and/or through litigation as necessary. Abbott reserves for uncertain tax positions related to unresolved matters with the IRS and other taxing authorities. Abbott continues to believe that its reserves for uncertain tax positions are appropriate. The Organization for Economic Cooperation & Development (OECD) has proposed a two-pillared plan for a revised international tax system. Pillar 1 proposes to reallocate taxing rights among the jurisdictions in which in-scope multinational corporations operate. Abbott is continuing to analyze the Pillar 1 proposal. Pillar 2 proposes to assess a 15% minimum tax on the earnings of in-scope multinational corporations on a country-by-country basis. Numerous countries have indicated their intent to adopt the proposal and are drafting legislation to implement the Pillar 2 model rules with a subset of the rules becoming effective January 1, 2024, and the remaining rules becoming effective January 1, 2025, or in later periods. Abbott is also continuing to analyze the Pillar 2 model rules. Implementation of the OECD proposal may have a material impact on Abbott’s Condensed Consolidated Financial Statements in the future. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15 — Segment Information Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world. Abbott’s reportable segments are as follows: Established Pharmaceutical Products — International sales of a broad line of branded generic pharmaceutical products. Nutritional Products — Worldwide sales of a broad line of adult and pediatric nutritional products. Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. For segment reporting purposes, the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular Diagnostics and Point of Care Diagnostics divisions are aggregated and reported as the Diagnostic Products segment. Medical Devices — Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. For segment reporting purposes, the Cardiac Rhythm Management, Electrophysiology, Heart Failure, Vascular, Structural Heart, Neuromodulation and Diabetes Care divisions are aggregated and reported as the Medical Devices segment. 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 Nine Months Three Months Nine Months (in millions) 2023 2022 2023 2022 2023 2022 2023 2022 Established Pharmaceutical Products $ 1,368 $ 1,326 $ 3,844 $ 3,696 $ 345 $ 331 $ 952 $ 831 Nutritional Products 2,073 1,795 6,116 5,642 284 69 972 550 Diagnostic Products 2,449 3,641 7,454 13,192 632 1,346 1,720 5,615 Medical Devices 4,249 3,645 12,444 11,024 1,342 1,045 3,805 3,288 Total Reportable Segments 10,139 10,407 29,858 33,554 2,603 2,791 7,449 10,284 Other 4 3 10 8 Net sales $ 10,143 $ 10,410 $ 29,868 $ 33,562 Corporate functions and benefit plan costs (50) (115) (198) (352) Net interest expense (69) (86) (182) (309) Share-based compensation (a) (117) (123) (530) (570) Amortization of intangible assets (496) (498) (1,485) (1,517) Other, net (b) (200) (211) (185) (550) Earnings before taxes $ 1,671 $ 1,758 $ 4,869 $ 6,986 ______________________________________ Notes: Three and nine months ended September 30, 2022 Sales and Operating Earnings for the Diagnostic Products and Medical Devices reportable segments have been updated to reflect the internal transfer of the Acelis Connected Health business from Diagnostic Products to Medical Devices on January 1, 2023. (a) Approximately 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net for the three months and nine months ended September 30, 2023 includes costs associated with the acquisition of CSI and charges related to restructuring actions and intangible asset and investment impairments. Other, net for the nine months ended September 30, 2023 also includes income arising from fair value changes in contingent consideration related to previous business combinations. Other, net for the three and nine months ended September 30, 2022 includes $10 million and $172 million, respectively, of charges related to a voluntary recall within the Nutritional Products segment, $111 million of charges related to the impairment of IPR&D intangible assets as well as integration costs related to the acquisition of Alere Inc. and restructuring charges. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting StandardsIn September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2022-04, Disclosure of Supplier Finance Program Obligations, which requires an entity to report information about its supplier finance program. Abbott adopted the standard on January 1, 2023. The new standard did not have an impact on Abbott's condensed consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Sales Category | The following tables provide detail by sales category: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 987 $ 987 $ — $ 1,001 $ 1,001 Other — 381 381 — 325 325 Total — 1,368 1,368 — 1,326 1,326 Nutritionals — Pediatric Nutritionals 506 495 1,001 357 470 827 Adult Nutritionals 354 718 1,072 329 639 968 Total 860 1,213 2,073 686 1,109 1,795 Diagnostics — Core Laboratory 317 997 1,314 281 938 1,219 Molecular 38 95 133 65 118 183 Point of Care 97 43 140 92 35 127 Rapid Diagnostics 561 301 862 1,273 839 2,112 Total 1,013 1,436 2,449 1,711 1,930 3,641 Medical Devices — Rhythm Management 271 292 563 263 270 533 Electrophysiology 246 298 544 225 244 469 Heart Failure 217 67 284 207 51 258 Vascular 251 421 672 213 393 606 Structural Heart 223 264 487 207 213 420 Neuromodulation 188 39 227 156 36 192 Diabetes Care 544 928 1,472 423 744 1,167 Total 1,940 2,309 4,249 1,694 1,951 3,645 Other 4 — 4 3 — 3 Total $ 3,817 $ 6,326 $ 10,143 $ 4,094 $ 6,316 $ 10,410 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in millions) U.S. Int’l Total U.S. Int’l Total Established Pharmaceutical Products — Key Emerging Markets $ — $ 2,889 $ 2,889 $ — $ 2,853 $ 2,853 Other — 955 955 — 843 843 Total — 3,844 3,844 — 3,696 3,696 Nutritionals — Pediatric Nutritionals 1,472 1,477 2,949 1,108 1,491 2,599 Adult Nutritionals 1,081 2,086 3,167 1,016 2,027 3,043 Total 2,553 3,563 6,116 2,124 3,518 5,642 Diagnostics — Core Laboratory 917 2,872 3,789 836 2,788 3,624 Molecular 128 293 421 308 507 815 Point of Care 289 127 416 284 110 394 Rapid Diagnostics 1,975 853 2,828 5,436 2,923 8,359 Total 3,309 4,145 7,454 6,864 6,328 13,192 Medical Devices — Rhythm Management 800 873 1,673 775 830 1,605 Electrophysiology 729 873 1,602 667 773 1,440 Heart Failure 661 199 860 610 167 777 Vascular 733 1,271 2,004 650 1,228 1,878 Structural Heart 652 794 1,446 604 667 1,271 Neuromodulation 528 122 650 456 112 568 Diabetes Care 1,528 2,681 4,209 1,165 2,320 3,485 Total 5,631 6,813 12,444 4,927 6,097 11,024 Other 10 — 10 8 — 8 Total $ 11,503 $ 18,365 $ 29,868 $ 13,923 $ 19,639 $ 33,562 Note: The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $30 million of sales in the third quarter of 2022 and $87 million in the first nine months of 2022 were moved from Rapid Diagnostics to Heart Failure. |
Schedule of Changes in Contract Liabilities | Changes in the contract liabilities during the period are as follows: (in millions) Contract Liabilities: Balance at December 31, 2022 $ 500 Unearned revenue from cash received during the period 346 Revenue recognized related to contract liability balance (292) Balance at September 30, 2023 $ 554 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of Allowance for Doubtful Accounts Activity | The following summarizes the activity for the first nine months of 2023 related to the allowance for doubtful accounts as of September 30, 2023: (in millions) Allowance for Doubtful Accounts: Balance at December 31, 2022 $ 262 Provisions/charges to income 22 Amounts charged off and other deductions (25) Balance at September 30, 2023 $ 259 |
Schedule of Long-term Investments | The components of long-term investments as of September 30, 2023 and December 31, 2022 are as follows: (in millions) September 30, December 31, Long-term Investments: Equity securities $ 566 $ 558 Other 222 208 Total $ 788 $ 766 |
Changes In Accumulated Other _2
Changes In Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows: Three Months Ended September 30 Cumulative Foreign Net Actuarial (Losses) and Cumulative Gains (Losses) (in millions) 2023 2022 2023 2022 2023 2022 Balance at June 30 $ (6,646) $ (6,260) $ (1,497) $ (2,554) $ 72 $ 108 Other comprehensive income (loss) before reclassifications (497) (1,008) (9) 15 96 278 Amounts reclassified from accumulated other comprehensive income 17 — — 41 (16) (65) Net current period comprehensive income (loss) (480) (1,008) (9) 56 80 213 Balance at September 30 $ (7,126) $ (7,268) $ (1,506) $ (2,498) $ 152 $ 321 Nine Months Ended September 30 Cumulative Foreign Net Actuarial (Losses) and Cumulative Gains (Losses) (in millions) 2023 2022 2023 2022 2023 2022 Balance at January 1 $ (6,733) $ (5,839) $ (1,493) $ (2,670) $ 175 $ 135 Other comprehensive income (loss) before reclassifications (410) (1,429) (6) 45 134 289 Amounts reclassified from accumulated other comprehensive income 17 — (7) 127 (157) (103) Net current period comprehensive income (loss) (393) (1,429) (13) 172 (23) 186 Balance at September 30 $ (7,126) $ (7,268) $ (1,506) $ (2,498) $ 152 $ 321 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activity and Related Accruals | The following summarizes the activity related to these restructuring actions and the status of the related accruals as of September 30, 2023: (in millions) Total Accrued balance at December 31, 2022 $ 228 Restructuring charges in 2023 102 Payments and other adjustments (181) Accrued balance at September 30, 2023 $ 149 |
Incentive Stock Programs (Table
Incentive Stock Programs (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Options Outstanding and Exercisable | Information regarding the number of options outstanding and exercisable at September 30, 2023 is as follows: Outstanding Exercisable Number of shares 29,342,041 24,718,236 Weighted average remaining life (years) 5.0 4.3 Weighted average exercise price $ 73.77 $ 66.27 Aggregate intrinsic value (in millions) $ 825 $ 825 |
Financial Instruments, Deriva_2
Financial Instruments, Derivatives and Fair Value Measures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Amounts and Location of Derivative Financial Instruments | The following table summarizes the amounts and location of certain derivative and non-derivative financial instruments as of September 30, 2023 and December 31, 2022: Fair Value - Assets Fair Value - Liabilities (in millions) September 30, December 31, 2022 Balance Sheet Caption September 30, December 31, 2022 Balance Sheet Caption Interest rate swaps designated as fair value hedges: Non-current $ — $ — Deferred income taxes and other assets $ 158 $ 136 Post-employment obligations, deferred income taxes and other long-term liabilities Current — — Prepaid expenses and other receivables 13 20 Other accrued liabilities Foreign currency forward exchange contracts: Hedging instruments 254 304 Prepaid expenses and other receivables 63 96 Other accrued liabilities Others not designated as hedges 113 108 Prepaid expenses and other receivables 115 130 Other accrued liabilities Debt designated as a hedge of net investment in a foreign subsidiary — — n/a 401 446 Long-term debt $ 367 $ 412 $ 750 $ 828 |
Schedule of Derivatives Gain (Loss) in OCI and Income (Expense) | The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges 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 and nine months ended September 30, 2023 and 2022. Gain (loss) Recognized in Other Income (expense) and Gain (loss) Three Months Nine Months Three Months Nine Months (in millions) 2023 2022 2023 2022 2023 2022 2023 2022 Income Statement Caption Foreign currency forward exchange contracts designated as cash flow hedges $ 125 $ 350 $ 152 $ 442 $ 22 $ 79 $ 211 $ 149 Cost of products sold Debt designated as a hedge of net investment in a foreign subsidiary 12 24 45 108 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 (18) (85) (15) (253) Interest expense |
Schedule of Carrying Values and Fair Values of Financial Instruments | The carrying values and fair values of certain financial instruments as of September 30, 2023 and December 31, 2022 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 non-performance by these counterparties. September 30, 2023 December 31, 2022 (in millions) Carrying Fair Carrying Fair Long-term Investment Securities: Equity securities $ 566 $ 566 $ 558 $ 558 Other 222 222 208 208 Total Long-term Debt (15,528) (14,681) (16,773) (16,313) Foreign Currency Forward Exchange Contracts: Receivable position 367 367 412 412 (Payable) position (178) (178) (226) (226) Interest Rate Hedge Contracts: Receivable position — — — — (Payable) position (171) (171) (156) (156) |
Summary of Bases Used to Measure Assets and Liabilities at Fair Value on a Recurring Basis | The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet: Basis of Fair Value Measurement (in millions) Outstanding Quoted Significant Significant September 30, 2023: Equity securities $ 304 $ 304 $ — $ — Foreign currency forward exchange contracts 367 — 367 — Total Assets $ 671 $ 304 $ 367 $ — Fair value of hedged long-term debt $ 2,702 $ — $ 2,702 $ — Interest rate swap derivative financial instruments 171 — 171 — Foreign currency forward exchange contracts 178 — 178 — Contingent consideration related to business combinations 109 — — 109 Total Liabilities $ 3,160 $ — $ 3,051 $ 109 December 31, 2022: Equity securities $ 307 $ 307 $ — $ — Foreign currency forward exchange contracts 412 — 412 — Total Assets $ 719 $ 307 $ 412 $ — Fair value of hedged long-term debt $ 2,691 $ — $ 2,691 $ — Interest rate swap derivative financial instruments 156 156 Foreign currency forward exchange contracts 226 — 226 — Contingent consideration related to business combinations 130 — — 130 Total Liabilities $ 3,203 $ — $ 3,073 $ 130 |
Post-Employment Benefits (Table
Post-Employment Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Postemployment Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | Net cost recognized for the three and nine months ended September 30 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows: Defined Benefit Plans Medical and Dental Plans Three Months Nine Months Three Months Nine Months (in millions) 2023 2022 2023 2022 2023 2022 2023 2022 Service cost - benefits earned during the period $ 56 $ 92 $ 174 $ 282 $ 10 $ 13 $ 29 $ 38 Interest cost on projected benefit obligations 114 74 342 225 15 9 45 27 Expected return on plan assets (244) (231) (729) (701) (6) (8) (18) (23) Curtailment gain — — (14) — — — — — Net amortization of: Actuarial loss, net 2 58 8 174 (1) 2 (2) 8 Prior service cost (credit) 1 — 1 1 (3) (6) (10) (18) Net cost (credit) $ (71) $ (7) $ (218) $ (19) $ 15 $ 10 $ 44 $ 32 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | 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 Nine Months Three Months Nine Months (in millions) 2023 2022 2023 2022 2023 2022 2023 2022 Established Pharmaceutical Products $ 1,368 $ 1,326 $ 3,844 $ 3,696 $ 345 $ 331 $ 952 $ 831 Nutritional Products 2,073 1,795 6,116 5,642 284 69 972 550 Diagnostic Products 2,449 3,641 7,454 13,192 632 1,346 1,720 5,615 Medical Devices 4,249 3,645 12,444 11,024 1,342 1,045 3,805 3,288 Total Reportable Segments 10,139 10,407 29,858 33,554 2,603 2,791 7,449 10,284 Other 4 3 10 8 Net sales $ 10,143 $ 10,410 $ 29,868 $ 33,562 Corporate functions and benefit plan costs (50) (115) (198) (352) Net interest expense (69) (86) (182) (309) Share-based compensation (a) (117) (123) (530) (570) Amortization of intangible assets (496) (498) (1,485) (1,517) Other, net (b) (200) (211) (185) (550) Earnings before taxes $ 1,671 $ 1,758 $ 4,869 $ 6,986 ______________________________________ Notes: Three and nine months ended September 30, 2022 Sales and Operating Earnings for the Diagnostic Products and Medical Devices reportable segments have been updated to reflect the internal transfer of the Acelis Connected Health business from Diagnostic Products to Medical Devices on January 1, 2023. (a) Approximately 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. (b) Other, net for the three months and nine months ended September 30, 2023 includes costs associated with the acquisition of CSI and charges related to restructuring actions and intangible asset and investment impairments. Other, net for the nine months ended September 30, 2023 also includes income arising from fair value changes in contingent consideration related to previous business combinations. Other, net for the three and nine months ended September 30, 2022 includes $10 million and $172 million, respectively, of charges related to a voluntary recall within the Nutritional Products segment, $111 million of charges related to the impairment of IPR&D intangible assets as well as integration costs related to the acquisition of Alere Inc. and restructuring charges. |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 segment | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 segment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Number of reportable segments | segment | 4 | 4 | 4 | 4 |
Diagnostics | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 4,200 | $ 4,200 | ||
Medical Devices | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 456 | $ 456 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Percentage of remaining performance obligation expected to be recognized in period | 59% | |||
Expected timing of satisfaction period (in months) | 24 months | 24 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Percentage of remaining performance obligation expected to be recognized in period | 17% | |||
Expected timing of satisfaction period (in months) | 12 months | 12 months |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Sales Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 10,143 | $ 10,410 | $ 29,868 | $ 33,562 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 10,139 | 10,407 | 29,858 | 33,554 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4 | 3 | 10 | 8 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,817 | 4,094 | 11,503 | 13,923 |
United States | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4 | 3 | 10 | 8 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6,326 | 6,316 | 18,365 | 19,639 |
International | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Established Pharmaceutical Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,368 | 1,326 | 3,844 | 3,696 |
Established Pharmaceutical Products | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Established Pharmaceutical Products | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,368 | 1,326 | 3,844 | 3,696 |
Nutritionals | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,073 | 1,795 | 6,116 | 5,642 |
Nutritionals | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 860 | 686 | 2,553 | 2,124 |
Nutritionals | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,213 | 1,109 | 3,563 | 3,518 |
Diagnostics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,449 | 3,641 | 7,454 | 13,192 |
Diagnostics | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,013 | 1,711 | 3,309 | 6,864 |
Diagnostics | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,436 | 1,930 | 4,145 | 6,328 |
Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,249 | 3,645 | 12,444 | 11,024 |
Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,940 | 1,694 | 5,631 | 4,927 |
Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,309 | 1,951 | 6,813 | 6,097 |
Key Emerging Markets | Established Pharmaceutical Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 987 | 1,001 | 2,889 | 2,853 |
Key Emerging Markets | Established Pharmaceutical Products | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Key Emerging Markets | Established Pharmaceutical Products | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 987 | 1,001 | 2,889 | 2,853 |
Other | Established Pharmaceutical Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 381 | 325 | 955 | 843 |
Other | Established Pharmaceutical Products | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Established Pharmaceutical Products | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 381 | 325 | 955 | 843 |
Pediatric Nutritionals | Nutritionals | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,001 | 827 | 2,949 | 2,599 |
Pediatric Nutritionals | Nutritionals | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 506 | 357 | 1,472 | 1,108 |
Pediatric Nutritionals | Nutritionals | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 495 | 470 | 1,477 | 1,491 |
Adult Nutritionals | Nutritionals | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,072 | 968 | 3,167 | 3,043 |
Adult Nutritionals | Nutritionals | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 354 | 329 | 1,081 | 1,016 |
Adult Nutritionals | Nutritionals | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 718 | 639 | 2,086 | 2,027 |
Core Laboratory | Diagnostics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,314 | 1,219 | 3,789 | 3,624 |
Core Laboratory | Diagnostics | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 317 | 281 | 917 | 836 |
Core Laboratory | Diagnostics | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 997 | 938 | 2,872 | 2,788 |
Molecular | Diagnostics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 133 | 183 | 421 | 815 |
Molecular | Diagnostics | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 38 | 65 | 128 | 308 |
Molecular | Diagnostics | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 95 | 118 | 293 | 507 |
Point of Care | Diagnostics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 140 | 127 | 416 | 394 |
Point of Care | Diagnostics | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 97 | 92 | 289 | 284 |
Point of Care | Diagnostics | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 43 | 35 | 127 | 110 |
Rapid Diagnostics | Diagnostics | Revision of Prior Period, Reclassification, Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (30) | (87) | ||
Rapid Diagnostics | Diagnostics | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 862 | 2,112 | 2,828 | 8,359 |
Rapid Diagnostics | Diagnostics | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 561 | 1,273 | 1,975 | 5,436 |
Rapid Diagnostics | Diagnostics | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 301 | 839 | 853 | 2,923 |
Rhythm Management | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 563 | 533 | 1,673 | 1,605 |
Rhythm Management | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 271 | 263 | 800 | 775 |
Rhythm Management | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 292 | 270 | 873 | 830 |
Electrophysiology | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 544 | 469 | 1,602 | 1,440 |
Electrophysiology | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 246 | 225 | 729 | 667 |
Electrophysiology | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 298 | 244 | 873 | 773 |
Heart Failure | Medical Devices | Revision of Prior Period, Reclassification, Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 30 | 87 | ||
Heart Failure | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 284 | 258 | 860 | 777 |
Heart Failure | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 217 | 207 | 661 | 610 |
Heart Failure | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 67 | 51 | 199 | 167 |
Vascular | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 672 | 606 | 2,004 | 1,878 |
Vascular | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 251 | 213 | 733 | 650 |
Vascular | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 421 | 393 | 1,271 | 1,228 |
Structural Heart | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 487 | 420 | 1,446 | 1,271 |
Structural Heart | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 223 | 207 | 652 | 604 |
Structural Heart | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 264 | 213 | 794 | 667 |
Neuromodulation | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 227 | 192 | 650 | 568 |
Neuromodulation | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 188 | 156 | 528 | 456 |
Neuromodulation | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 39 | 36 | 122 | 112 |
Diabetes Care | Medical Devices | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,472 | 1,167 | 4,209 | 3,485 |
Diabetes Care | Medical Devices | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 544 | 423 | 1,528 | 1,165 |
Diabetes Care | Medical Devices | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 928 | $ 744 | $ 2,681 | $ 2,320 |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Contract Liabilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Contract Liabilities: | |
Beginning balance | $ 500 |
Unearned revenue from cash received during the period | 346 |
Revenue recognized related to contract liability balance | (292) |
Ending balance | $ 554 |
Supplemental Financial Inform_3
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net earnings allocated to common shares | $ 1,431 | $ 1,429 | $ 4,113 | $ 5,876 |
Payment of cash taxes | 1,180 | 987 | ||
Equity method investments carrying value | 175 | 175 | ||
Equity investments without readily determinable fair value | 87 | 87 | ||
St. Jude Medical | Equity securities | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Investments in mutual funds held in a rabbi trust | $ 291 | 291 | ||
Defined Benefit Plans | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Pension contributions | $ 302 | $ 362 |
Supplemental Financial Inform_4
Supplemental Financial Information - Allowance for Doubtful Accounts (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Allowance for Doubtful Accounts: | |
Beginning balance | $ 262 |
Provisions/charges to income | 22 |
Amounts charged off and other deductions | (25) |
Ending balance | $ 259 |
Supplemental Financial Inform_5
Supplemental Financial Information - Investments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Total | $ 788 | $ 766 |
Equity securities | ||
Summary of Investment Holdings [Line Items] | ||
Total | 566 | 558 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Total | $ 222 | $ 208 |
Changes In Accumulated Other _3
Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning of the period | $ 36,686 | |||
Other comprehensive income (loss) | $ (409) | $ (739) | (429) | $ (1,071) |
End of the period | 37,481 | 37,481 | ||
Cumulative Foreign Currency Translation (Loss) Adjustments | ||||
Changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning of the period | (6,646) | (6,260) | (6,733) | (5,839) |
Other comprehensive income (loss) before reclassifications | (497) | (1,008) | (410) | (1,429) |
Amounts reclassified from accumulated other comprehensive income | 17 | 0 | 17 | 0 |
Other comprehensive income (loss) | (480) | (1,008) | (393) | (1,429) |
End of the period | (7,126) | (7,268) | (7,126) | (7,268) |
Net Actuarial (Losses) and Prior Service (Costs) and Credits | ||||
Changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning of the period | (1,497) | (2,554) | (1,493) | (2,670) |
Other comprehensive income (loss) before reclassifications | (9) | 15 | (6) | 45 |
Amounts reclassified from accumulated other comprehensive income | 0 | 41 | (7) | 127 |
Other comprehensive income (loss) | (9) | 56 | (13) | 172 |
End of the period | (1,506) | (2,498) | (1,506) | (2,498) |
Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges and Other | ||||
Changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning of the period | 72 | 108 | 175 | 135 |
Other comprehensive income (loss) before reclassifications | 96 | 278 | 134 | 289 |
Amounts reclassified from accumulated other comprehensive income | (16) | (65) | (157) | (103) |
Other comprehensive income (loss) | 80 | 213 | (23) | 186 |
End of the period | $ 152 | $ 321 | $ 152 | $ 321 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ / shares in Units, $ in Millions | Apr. 27, 2023 USD ($) intangibleAsset $ / shares | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 23,277 | $ 22,799 | |
CSI | |||
Business Acquisition [Line Items] | |||
Acquisition share price (in dollars per share) | $ / shares | $ 20 | ||
Acquisition purchase price | $ 851 | ||
Number of developed technology intangible assets | intangibleAsset | 2 | ||
Developed technology intangible assets | $ 305 | ||
In-process research and development | 15 | ||
Goodwill | 384 | ||
Net deferred tax assets | 31 | ||
Other net assets | $ 116 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | $ 23,277 | $ 22,799 | ||
Increase in goodwill due to acquisition | 590 | |||
Decrease in goodwill due to foreign currency translation adjustments | 112 | |||
Amount of reductions of goodwill relating to impairments | 0 | |||
Gross amount of amortizable intangible assets | 27,500 | 27,200 | ||
Increase in amortizable intangible assets due to acquisition | 305 | |||
Accumulated amortization of intangible assets | 19,000 | 17,600 | ||
Decrease in intangible assets due to foreign currency translation adjustments | 14 | |||
Estimated annual amortization expense, intangible assets, 2023 | 2,000 | |||
Estimated annual amortization expense, intangible assets, 2024 | 1,900 | |||
Estimated annual amortization expense, intangible assets, 2025 | 1,700 | |||
Estimated annual amortization expense, intangible assets, 2026 | 1,600 | |||
Estimated annual amortization expense, intangible assets, 2027 | 1,300 | |||
Indefinite-lived intangible assets related to in-process R&D acquired in a business combination | 832 | $ 807 | ||
Increase in in-process R&D due to acquisition | 80 | |||
Established Pharmaceutical Products | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 2,600 | |||
Nutritional Products | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 285 | |||
Diagnostic Products | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 3,500 | |||
Medical Devices | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 16,800 | |||
Impairment of indefinite-lived intangible assets | $ 111 | $ 55 | $ 111 |
Restructuring Plans - Narrative
Restructuring Plans - Narrative (Details) - 2022 and 2023 Restructuring Plan, Streamline of Operations and Improve Efficiencies for Four Businesses $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 102 |
Fixed asset impairment charges | 29 |
Cost of products sold | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 31 |
Research and Development | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 16 |
Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 55 |
Restructuring Plans - Restructu
Restructuring Plans - Restructuring Activity and Related Accruals (Details) - 2022 and 2023 Restructuring Plan, Streamline of Operations and Improve Efficiencies for Four Businesses $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued balance at beginning of the period | $ 228 |
Restructuring charges in 2023 | 102 |
Payments and other adjustments | (181) |
Accrued balance at end of the period | $ 149 |
Incentive Stock Programs - Narr
Incentive Stock Programs - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Incentive stock program, shares reserved for future grants (in shares) | 74,000,000 |
Total unrecognized compensation cost | $ | $ 560 |
Total unrecognized compensation cost, recognition period | 3 years |
Stock Options | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock options granted during the period (in shares) | 1,986,671 |
Restricted Stock Awards | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock awards granted during the period (in shares) | 463,856 |
Restricted Stock Units (RSUs) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock units granted during period (in shares) | 4,927,476 |
Incentive Stock Programs - Opti
Incentive Stock Programs - Options (Details) - Stock Options $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock options outstanding, number of shares | shares | 29,342,041 |
Exercisable options, number of shares | shares | 24,718,236 |
Stock options outstanding, weighted-average remaining life | 5 years |
Exercisable options, weighted-average remaining life | 4 years 3 months 18 days |
Stock options outstanding, weighted-average exercise price (in dollars per share) | $ / shares | $ 73.77 |
Exercisable options, weighted-average exercise price (in dollars per share) | $ / shares | $ 66.27 |
Aggregate intrinsic value of options outstanding | $ | $ 825 |
Aggregate intrinsic value of options exercisable | $ | $ 825 |
Debt and Lines of Credit (Detai
Debt and Lines of Credit (Details) € in Millions, $ in Millions | 1 Months Ended | |||
Sep. 27, 2023 EUR (€) | Sep. 27, 2023 USD ($) | Mar. 15, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Bigfoot | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 197 | |||
0.875% Long-term Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | € 1,140 | $ 1,200 | ||
Interest rate percentage | 0.875% | 0.875% | ||
2.55% Long-term Notes Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 750 | |||
Interest rate percentage | 2.55% |
Financial Instruments, Deriva_3
Financial Instruments, Derivatives and Fair Value Measures - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||||
Yen-denominated term loan | $ 750 | $ 750 | $ 828 | ||
Net Investment Hedging | Designated as Hedging Instrument | Five Year Term Loan due 2024 | |||||
Derivative [Line Items] | |||||
Debt instrument, term | 5 years | 5 years | |||
Yen-denominated term loan | 401 | $ 401 | $ 446 | ||
Foreign Currency Forward Exchange Contracts | |||||
Derivative [Line Items] | |||||
Gain (loss) from foreign currency forward exchange contracts not designated as hedges | 60 | $ (27) | (4) | $ 225 | |
Foreign Currency Forward Exchange Contracts | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 14,200 | 14,200 | 12,000 | ||
Foreign Currency Forward Exchange Contracts | Cash Flow Hedging | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 7,300 | $ 7,300 | 7,700 | ||
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 | ||||
Interest Rate Hedge Contracts | Fair Value Hedging | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 2,900 | $ 2,900 | $ 2,900 |
Financial Instruments, Deriva_4
Financial Instruments, Derivatives and Fair Value Measures - Amounts and Location of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair Value - Assets | $ 367 | $ 412 |
Fair Value - Liabilities | 750 | 828 |
Designated as Hedging Instrument | Interest Rate Swaps | Deferred income taxes and other assets | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Assets | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swaps | Prepaid expenses and other receivables, current | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Assets | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swaps | Post-employment obligations, deferred income taxes and other long-term liabilities | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liabilities | 158 | 136 |
Designated as Hedging Instrument | Interest Rate Swaps | Other accrued liabilities | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liabilities | 13 | 20 |
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | Prepaid expenses and other receivables | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Assets | 254 | 304 |
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liabilities | 63 | 96 |
Designated as Hedging Instrument | Debt | Long-term debt | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liabilities | 401 | 446 |
Not Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | Prepaid expenses and other receivables | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Assets | 113 | 108 |
Not Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liabilities | $ 115 | $ 130 |
Financial Instruments, Deriva_5
Financial Instruments, Derivatives and Fair Value Measures - Schedule of Derivatives Gain (Loss) in OCI and Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Foreign Currency Forward Exchange Contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), foreign currency forward exchange contracts designated as cash flow hedges | $ 125 | $ 350 | $ 152 | $ 442 |
Income (expense) and gain (loss) reclassified into income, foreign currency forward exchange contracts designated as cash flow hedges | 22 | 79 | 211 | 149 |
Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), debt designated as a hedge of net investment in a foreign subsidiary | 12 | 24 | 45 | 108 |
Interest Rate Swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income (expense) and gain (loss) reclassified into income, interest rate swaps designated as fair value hedges | $ (18) | $ (85) | $ (15) | $ (253) |
Financial Instruments, Deriva_6
Financial Instruments, Derivatives and Fair Value Measures - Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Long-term Investment Securities: | $ 788 | $ 766 |
Receivable position | 367 | 412 |
(Payable) position | (750) | (828) |
Equity securities | ||
Derivative [Line Items] | ||
Long-term Investment Securities: | 566 | 558 |
Carrying Value | ||
Derivative [Line Items] | ||
Total Long-term Debt | (15,528) | (16,773) |
Carrying Value | Foreign Currency Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Receivable position | 367 | 412 |
(Payable) position | (178) | (226) |
Carrying Value | Interest Rate Hedge Contracts | ||
Derivative [Line Items] | ||
Receivable position | 0 | 0 |
(Payable) position | (171) | (156) |
Carrying Value | Equity securities | ||
Derivative [Line Items] | ||
Long-term Investment Securities: | 566 | 558 |
Carrying Value | Other | ||
Derivative [Line Items] | ||
Long-term Investment Securities: | 222 | 208 |
Fair Value | ||
Derivative [Line Items] | ||
Total Long-term Debt | (14,681) | (16,313) |
Fair Value | Foreign Currency Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Receivable position | 367 | 412 |
(Payable) position | (178) | (226) |
Fair Value | Interest Rate Hedge Contracts | ||
Derivative [Line Items] | ||
Receivable position | 0 | 0 |
(Payable) position | (171) | (156) |
Fair Value | Equity securities | ||
Derivative [Line Items] | ||
Long-term Investment Securities: | 566 | 558 |
Fair Value | Other | ||
Derivative [Line Items] | ||
Long-term Investment Securities: | $ 222 | $ 208 |
Financial Instruments, Deriva_7
Financial Instruments, Derivatives and Fair Value Measures - Bases of Measurement (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Quoted Prices in Active Markets | ||
Assets, at Fair Value | ||
Equity securities | $ 304 | $ 307 |
Foreign currency forward exchange contracts | 0 | 0 |
Total Assets | 304 | 307 |
Liabilities, at Fair Value | ||
Fair value of hedged long-term debt | 0 | 0 |
Interest rate swap derivative financial instruments | 0 | |
Foreign currency forward exchange contracts | 0 | 0 |
Contingent consideration related to business combinations | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs | ||
Assets, at Fair Value | ||
Equity securities | 0 | 0 |
Foreign currency forward exchange contracts | 367 | 412 |
Total Assets | 367 | 412 |
Liabilities, at Fair Value | ||
Fair value of hedged long-term debt | 2,702 | 2,691 |
Interest rate swap derivative financial instruments | 171 | 156 |
Foreign currency forward exchange contracts | 178 | 226 |
Contingent consideration related to business combinations | 0 | 0 |
Total Liabilities | 3,051 | 3,073 |
Significant Unobservable Inputs | ||
Assets, at Fair Value | ||
Equity securities | 0 | 0 |
Foreign currency forward exchange contracts | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities, at Fair Value | ||
Fair value of hedged long-term debt | 0 | 0 |
Interest rate swap derivative financial instruments | 0 | |
Foreign currency forward exchange contracts | 0 | 0 |
Contingent consideration related to business combinations | 109 | 130 |
Total Liabilities | 109 | 130 |
Outstanding Balances | ||
Assets, at Fair Value | ||
Equity securities | 304 | 307 |
Foreign currency forward exchange contracts | 367 | 412 |
Total Assets | 671 | 719 |
Liabilities, at Fair Value | ||
Fair value of hedged long-term debt | 2,702 | 2,691 |
Interest rate swap derivative financial instruments | 171 | 156 |
Foreign currency forward exchange contracts | 178 | 226 |
Contingent consideration related to business combinations | 109 | 130 |
Total Liabilities | $ 3,160 | $ 3,203 |
Litigation and Environmental _2
Litigation and Environmental Matters (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Loss Contingencies [Line Items] | |
Maximum expected cleanup exposure for individual site | $ 4 |
Maximum expected cleanup exposure in aggregate | 10 |
Legal proceedings and environmental exposures | |
Loss Contingencies [Line Items] | |
Recorded accrual balance for legal proceedings and exposures | 30 |
Legal proceedings and environmental exposures | Minimum | |
Loss Contingencies [Line Items] | |
Estimation of possible loss | 25 |
Legal proceedings and environmental exposures | Maximum | |
Loss Contingencies [Line Items] | |
Estimation of possible loss | $ 35 |
Post-Employment Benefits - Sche
Post-Employment Benefits - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | $ 56 | $ 92 | $ 174 | $ 282 |
Interest cost on projected benefit obligations | 114 | 74 | 342 | 225 |
Expected return on plan assets | (244) | (231) | (729) | (701) |
Curtailment gain | 0 | 0 | (14) | 0 |
Net amortization of: | ||||
Actuarial loss, net | 2 | 58 | 8 | 174 |
Prior service cost (credit) | 1 | 0 | 1 | 1 |
Net cost (credit) | (71) | (7) | (218) | (19) |
Medical and Dental Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 10 | 13 | 29 | 38 |
Interest cost on projected benefit obligations | 15 | 9 | 45 | 27 |
Expected return on plan assets | (6) | (8) | (18) | (23) |
Curtailment gain | 0 | 0 | 0 | 0 |
Net amortization of: | ||||
Actuarial loss, net | (1) | 2 | (2) | 8 |
Prior service cost (credit) | (3) | (6) | (10) | (18) |
Net cost (credit) | $ 15 | $ 10 | $ 44 | $ 32 |
Post-Employment Benefits - Narr
Post-Employment Benefits - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Company contributions | $ 302 | $ 362 |
Medical and Dental Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Company contributions | $ 28 | $ 28 |
Taxes on Earnings (Details)
Taxes on Earnings (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Excess tax benefits associated with share-based compensation | $ 11 | $ 36 |
Tax expense from prior year tax positions | 59 | $ 20 |
Decrease reasonably possible in gross unrecognized tax benefits | 55 | |
Income tax claim related to statutory notice of deficiency | $ 417 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | $ 10,143 | $ 10,410 | $ 29,868 | $ 33,562 |
Operating Earnings | 1,647 | 1,770 | 4,698 | 7,058 |
Amortization of intangible assets | (496) | (498) | (1,485) | (1,517) |
Earnings before taxes | $ 1,671 | $ 1,758 | $ 4,869 | $ 6,986 |
Annual share-based awards recognized in first quarter (as a percent) | 45% | 45% | 45% | 45% |
Nutritional Products | ||||
Segment Reporting Information [Line Items] | ||||
Inventory recall expense | $ 10 | $ 172 | ||
Medical Devices | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of IPR&D intangible assets | 111 | $ 55 | 111 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | $ 10,139 | 10,407 | 29,858 | 33,554 |
Operating Earnings | 2,603 | 2,791 | 7,449 | 10,284 |
Operating Segments | Established Pharmaceutical Products | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | 1,368 | 1,326 | 3,844 | 3,696 |
Operating Earnings | 345 | 331 | 952 | 831 |
Operating Segments | Nutritional Products | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | 2,073 | 1,795 | 6,116 | 5,642 |
Operating Earnings | 284 | 69 | 972 | 550 |
Operating Segments | Diagnostic Products | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | 2,449 | 3,641 | 7,454 | 13,192 |
Operating Earnings | 632 | 1,346 | 1,720 | 5,615 |
Operating Segments | Medical Devices | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | 4,249 | 3,645 | 12,444 | 11,024 |
Operating Earnings | 1,342 | 1,045 | 3,805 | 3,288 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales to External Customers | 4 | 3 | 10 | 8 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Corporate functions and benefit plan costs | (50) | (115) | (198) | (352) |
Net interest expense | (69) | (86) | (182) | (309) |
Share-based compensation | (117) | (123) | (530) | (570) |
Amortization of intangible assets | (496) | (498) | (1,485) | (1,517) |
Other, net | $ (200) | $ (211) | $ (185) | $ (550) |