UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


⌧	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2021~~March 31, 2022


◻	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 1-2189

ABBOTT LABORATORIES

An Illinois Corporation		I.R.S. Employer Identification No.
		36-0698440

100 Abbott Park Road

Abbott Park, Illinois 60064-6400

Telephone: (224) 667-6100

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Shares, Without Par Value		ABT		New York Stock Exchange Chicago Stock Exchange, Inc.

Indicate by check mark whether the registrant: (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ☒		Accelerated Filer ☐

Non-Accelerated Filer ☐		Smaller reporting company ☐

		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~September 30, 2021,~~March 31, 2022, Abbott Laboratories had ~~1,768,286,969~~1,750,942,289 common shares without par value outstanding.

Table of Contents

Abbott Laboratories

Table of Contents


Part I - Financial Information
	Page
Item 1. Financial Statements and Supplementary Data

Condensed Consolidated Statement of Earnings	3
Condensed Consolidated Statement of Comprehensive Income	4
Condensed Consolidated Balance Sheet	5
Condensed Consolidated Statement of Shareholders’ Investment	6
Condensed Consolidated Statement of Cash Flows	87
Notes to the Condensed Consolidated Financial Statements	98

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2419

Item 4. Controls and Procedures	3024

Part II - Other Information

Item 1. Legal Proceedings	3024

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	3025

Item 6. Exhibits	3126

Signature	3227

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited)

(dollars in millions except per share data; shares in thousands)


	Three Months Ended				Nine Months Ended				Three Months Ended
	September 30				September 30				March 31
	2021		2020		2021		2020		2022		2021
Net sales	$	10,928	$	8,853	$	31,607	$	23,907	$	11,895	$	10,456

Cost of products sold, excluding amortization of intangible assets		4,423		3,966		13,771		10,510		4,987		4,401
Amortization of intangible assets		520		510		1,533		1,624		512		509
Research and development		672		580		1,980		1,722		697		654
Selling, general and administrative		2,767		2,302		8,276		7,126		2,787		2,783
Total operating cost and expenses		8,382		7,358		25,560		20,982		8,983		8,347

Operating earnings		2,546		1,495		6,047		2,925		2,912		2,109

Interest expense		133		137		402		410		131		135
Interest (income)		(10)		(10)		(32)		(37)		(14)		(11)
Net foreign exchange (gain) loss		4		(7)		7		(3)		(3)		3
Other (income) expense, net		(74)		(46)		(214)		(25)		(78)		(61)
Earnings from continuing operations before taxes		2,493		1,421		5,884		2,580
Tax expense (benefit) on earnings from continuing operations		393		189		802		267
Earnings from continuing operations		2,100		1,232		5,082		2,313

Earnings from discontinued operations, net of tax		—		—		—		20

Earnings before taxes										2,876		2,043
Taxes on earnings										429		250
Net Earnings	$	2,100	$	1,232	$	5,082	$	2,333	$	2,447	$	1,793

Basic Earnings Per Common Share —
Continuing operations	$	1.18	$	0.69	$	2.85	$	1.30
Discontinued operations		—		—		—		0.01
Net earnings	$	1.18	$	0.69	$	2.85	$	1.31
Basic Earnings Per Common Share									$	1.38	$	1.00

Diluted Earnings Per Common Share —
Continuing operations	$	1.17	$	0.69	$	2.83	$	1.29
Discontinued operations		—		—		—		0.01
Net earnings	$	1.17	$	0.69	$	2.83	$	1.30
Diluted Earnings Per Common Share									$	1.37	$	1.00

Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share		1,774,516		1,774,475		1,776,870		1,772,166		1,761,911		1,776,842
Dilutive Common Stock Options		14,483		13,378		14,407		12,381		12,631		14,661
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options		1,788,999		1,787,853		1,791,277		1,784,547		1,774,542		1,791,503

Outstanding Common Stock Options Having No Dilutive Effect		2,740		—		2,694		—		2,655		2,694

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

(dollars in millions)


	Three Months Ended				Nine Months Ended				Three Months Ended
	September 30				September 30				March 31
	2021		2020		2021		2020		2022		2021
Net Earnings	$	2,100	$	1,232	$	5,082	$	2,333	$	2,447	$	1,793

Foreign currency translation gain (loss) adjustments		(391)		112		(762)		(677)		(106)		(536)
Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $18 and $54 in 2021 and $14 and $42 in 2020		78		28		211		122
Net gains (losses) for derivative instruments designated as cash flow hedges and other, net of taxes of $50 and $98 in 2021 and $(43) and $(24) in 2020		139		(104)		257		(24)
Net actuarial gains (losses) and amortization of net actuarial (losses) and prior service (costs) and credits, net of taxes of $13 in 2022 and $18 in 2021										62		85
Net gains (losses) for derivative instruments designated as cash flow hedges, net of taxes of $(15) in 2022 and $46 in 2021										(56)		112
Other comprehensive income (loss)		(174)		36		(294)		(579)		(100)		(339)
Comprehensive Income	$	1,926	$	1,268	$	4,788	$	1,754

Comprehensive Income (Loss)									$	2,347	$	1,454

					September 30,		December 31,		March 31,		December 31,
					2021		2020		2022		2021
Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax:
Cumulative foreign currency translation (loss) adjustments					$	(5,621)	$	(4,859)	$	(5,945)	$	(5,839)
Net actuarial (losses) and prior service (costs) and credits						(3,660)		(3,871)		(2,608)		(2,670)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges and other						41		(216)
Accumulated other comprehensive income (loss)					$	(9,240)	$	(8,946)
Cumulative gains (losses) on derivative instruments designated as cash flow hedges										79		135
Accumulated Other Comprehensive Income (Loss)									$	(8,474)	$	(8,374)

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

(dollars in millions)


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Assets
Current Assets:
Cash and cash equivalents	$	9,302	$	6,838	$	7,675	$	9,799
Short-term investments		390		310		483		450
Trade receivables, less allowances of $507 in 2021 and $460 in 2020		6,405		6,414
Trade receivables, less allowances of $640 in 2022 and $519 in 2021						7,179		6,487
Inventories:
Finished products		3,048		3,030		3,470		3,081
Work in process		710		712		695		694
Materials		1,503		1,270		1,526		1,382
Total inventories		5,261		5,012		5,691		5,157
Prepaid expenses and other receivables		2,134		1,867		2,401		2,346
Total Current Assets		23,492		20,441		23,429		24,239
Investments		812		821		763		816
Property and equipment, at cost		19,182		18,793		19,521		19,364
Less: accumulated depreciation and amortization		10,351		9,764		10,613		10,405
Net property and equipment		8,831		9,029		8,908		8,959
Intangible assets, net of amortization		13,312		14,784		12,225		12,739
Goodwill		23,299		23,744		23,179		23,231
Deferred income taxes and other assets		4,049		3,729		5,503		5,212
	$	73,795	$	72,548	$	74,007	$	75,196



Liabilities and Shareholders’ Investment
Current Liabilities:
Short-term borrowings	$	197	$	213
Trade accounts payable		4,017		3,946	$	4,757	$	4,408
Salaries, wages and commissions		1,470		1,416		1,147		1,625
Other accrued liabilities		5,264		5,165		5,577		5,181
Dividends payable		797		798		824		831
Income taxes payable		368		362		338		306
Current portion of long-term debt		754		7		4		754
Total Current Liabilities		12,867		11,907		12,647		13,105
Long-term debt		17,446		18,527		17,086		17,296
Post-employment obligations, deferred income taxes and other long-term liabilities		8,844		9,111		8,645		8,771
Commitments and Contingencies
Shareholders’ Investment:
Preferred shares, 1 dollar par value Authorized — 1,000,000 shares, NaN issued		—		—		—		—
Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2021: 1,983,103,854; 2020: 1,981,156,896		24,285		24,145
Common shares held in treasury, at cost — Shares: 2021: 214,816,885; 2020: 209,926,622		(10,999)		(10,042)
Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2022: 1,985,525,053; 2021: 1,985,273,421						24,304		24,470
Common shares held in treasury, at cost — Shares: 2022: 234,582,764; 2021: 221,191,228						(13,726)		(11,822)
Earnings employed in the business		30,376		27,627		33,295		31,528
Accumulated other comprehensive income (loss)		(9,240)		(8,946)		(8,474)		(8,374)
Total Abbott Shareholders’ Investment		34,422		32,784		35,399		35,802
Noncontrolling Interests in Subsidiaries		216		219		230		222
Total Shareholders’ Investment		34,638		33,003		35,629		36,024
	$	73,795	$	72,548	$	74,007	$	75,196

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Shareholders’ Investment

(Unaudited)

(in millions except shares and per share data)

Three Months Ended September 30


2021

2020
Common Shares:

Balance at June 30

Shares: 2021: 1,982,553,488; 2020: 1,979,594,379

$
24,153

$
23,893
Issued under incentive stock programs




Shares: 2021: 550,366; 2020: 1,172,844

26

48
Share-based compensation

113

101
Issuance of restricted stock awards

(7)

(5)
Balance at September 30




Shares: 2021: 1,983,103,854; 2020: 1,980,767,223

$
24,285

$
24,037

Common Shares Held in Treasury:

Balance at June 30

Shares: 2021: 209,736,139; 2020: 209,064,380

$
(10,340)

$
(9,904)
Issued under incentive stock programs




Shares: 2021: 545,860; 2020: 664,727

26

32
Purchased


Shares: 2021: 5,626,606; 2020: 5,989

(685)

(1)
Balance at September 30




Shares: 2021: 214,816,885; 2020: 208,405,642

$
(10,999)

$
(9,873)

Earnings Employed in the Business:

Balance at June 30

$
29,053

$
25,669
Net earnings

2,100

1,232
Cash dividends declared on common shares (per share — 2021: $0.45; 2020: $0.36)

(799)

(641)
Effect of common and treasury share transactions

22

6
Balance at September 30

$
30,376

$
26,266

Accumulated Other Comprehensive Income (Loss):

Balance at June 30

$
(9,066)

$
(9,080)
Other comprehensive income (loss)

(174)

36
Balance at September 30

$
(9,240)

$
(9,044)

Noncontrolling Interests in Subsidiaries:

Balance at June 30

$
229

$
220
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases

(13)

(11)
Balance at September 30

$
216

$
209

~~The accompanying notes to condensed consolidated financial statements are an integral part of this statement.~~

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Condensed Consolidated Statement of Shareholders’ Investment~~

~~(Unaudited)~~

~~(in millions except shares and per share data)~~


	Nine Months Ended September 30				Three Months Ended March 31
	2021		2020		2022		2021
Common Shares:
Balance at January 1
Shares: 2021: 1,981,156,896; 2020: 1,976,855,085	$	24,145	$	23,853
Shares: 2022: 1,985,273,421; 2021: 1,981,156,896					$	24,470	$	24,145
Issued under incentive stock programs
Shares: 2021: 1,946,958; 2020: 3,912,138		91		167
Shares: 2022: 251,632; 2021: 1,048,595						14		47
Share-based compensation		536		451		324		304
Issuance of restricted stock awards		(487)		(434)		(504)		(473)
Balance at September 30
Shares: 2021: 1,983,103,854; 2020: 1,980,767,223	$	24,285	$	24,037
Balance at March 31
Shares: 2022: 1,985,525,053; 2021: 1,982,205,491					$	24,304	$	24,023

Common Shares Held in Treasury:
Balance at January 1
Shares: 2021: 209,926,622; 2020: 214,351,838	$	(10,042)	$	(10,147)
Shares: 2022: 221,191,228; 2021: 209,926,622					$	(11,822)	$	(10,042)
Issued under incentive stock programs
Shares: 2021: 5,524,291; 2020: 6,211,326		265		295
Shares: 2022: 4,144,476; 2021: 4,818,787						223		231
Purchased
Shares: 2021: 10,414,554; 2020: 265,130		(1,222)		(21)
Balance at September 30
Shares: 2021: 214,816,885; 2020: 208,405,642	$	(10,999)	$	(9,873)
Shares: 2022: 17,536,012; 2021: 277,508						(2,127)		(34)
Balance at March 31
Shares: 2022: 234,582,764; 2021: 205,385,343					$	(13,726)	$	(9,845)

Earnings Employed in the Business:
Balance at January 1	$	27,627	$	25,847	$	31,528	$	27,627
Impact of adoption of new accounting standard		—		(5)
Net earnings		5,082		2,333		2,447		1,793
Cash dividends declared on common shares (per share — 2021: $1.35; 2020: $1.08)		(2,403)		(1,922)
Cash dividends declared on common shares (per share — 2022: $0.47; 2021: $0.45)						(826)		(803)
Effect of common and treasury share transactions		70		13		146		52
Balance at September 30	$	30,376	$	26,266
Balance at March 31					$	33,295	$	28,669

Accumulated Other Comprehensive Income (Loss):
Balance at January 1	$	(8,946)	$	(8,465)	$	(8,374)	$	(8,946)
Other comprehensive income (loss)		(294)		(579)		(100)		(339)
Balance at September 30	$	(9,240)	$	(9,044)
Balance at March 31					$	(8,474)	$	(9,285)

Noncontrolling Interests in Subsidiaries:
Balance at January 1	$	219	$	213	$	222	$	219
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases		(3)		(4)		8		7
Balance at September 30	$	216	$	209
Balance at March 31					$	230	$	226

The accompanying notes to condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(dollars in millions)


	Nine Months Ended September 30				Three Months Ended March 31
	2021		2020		2022		2021
Cash Flow From (Used in) Operating Activities:
Net earnings	$	5,082	$	2,333	$	2,447	$	1,793
Adjustments to reconcile net earnings to net cash from operating activities —
Depreciation		1,122		837		311		425
Amortization of intangible assets		1,533		1,624		512		509
Share-based compensation		534		448		305		288
Trade receivables		(194)		(343)		(751)		165
Inventories		(471)		(838)		(554)		(537)
Other, net		(140)		42		(205)		(6)
Net Cash From Operating Activities		7,466		4,103		2,065		2,637

Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment		(1,271)		(1,498)		(321)		(397)
Acquisitions of businesses and technologies, net of cash acquired		(187)		(32)		—		(15)
Proceeds from business dispositions		134		48
Sales (purchases) of other investment securities, net		(27)		(15)		(41)		(14)
Other		14		13		2		4
Net Cash (Used in) Investing Activities		(1,337)		(1,484)		(360)		(422)

Cash Flow From (Used in) Financing Activities:
Net borrowings (repayments) of short-term debt and other		(7)		3		8		24
Proceeds from issuance of long-term debt		—		1,280
Repayments of long-term debt		(45)		(1,332)		(751)		(2)
Purchases of common shares		(1,325)		(242)		(2,307)		(275)
Proceeds from stock options exercised		173		229		59		86
Dividends paid		(2,404)		(1,919)		(832)		(800)
Other		—		(11)
Net Cash (Used in) Financing Activities		(3,608)		(1,992)		(3,823)		(967)

Effect of exchange rate changes on cash and cash equivalents		(57)		(7)		(6)		(32)

Net Increase in Cash and Cash Equivalents		2,464		620
Net Increase (Decrease) in Cash and Cash Equivalents						(2,124)		1,216
Cash and Cash Equivalents, Beginning of Year		6,838		3,860		9,799		6,838
Cash and Cash Equivalents, End of Period	$	9,302	$	4,480	$	7,675	$	8,054

The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.

Table of Contents

Abbott Laboratories and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

~~September 30, 2021~~March 31, 2022

(Unaudited)

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, ~~2020.~~2021. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.

~~Note 2 — New Accounting Standards~~

~~Recently Adopted Accounting Standards~~

~~In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2019-12,~~ ~~Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes~~, which among other things, eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Abbott adopted the standard on January 1, 2021. The new standard did not have an impact on its condensed consolidated financial statements.

~~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 4 reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 32 — Revenue ~~(Continued)~~

The following ~~tables provide~~table provides detail by sales category:

Three Months Ended September 30, 2021

Three Months Ended September 30, 2020
(in millions)

U.S.

Int’l

Total

U.S.

Int’l

Total
Established Pharmaceutical Products —












Key Emerging Markets

$
—

$
936

$
936

$
—

$
799

$
799
Other

—

329

329

—

300

300
Total

—

1,265

1,265

—

1,099

1,099
Nutritionals —

Pediatric Nutritionals

586

514

1,100

488

518

1,006
Adult Nutritionals

333

675

1,008

330

588

918
Total

919

1,189

2,108

818

1,106

1,924
Diagnostics —

Core Laboratory

291

1,001

1,292

284

892

1,176
Molecular

162

183

345

220

238

458
Point of Care

100

35

135

96

35

131
Rapid Diagnostics

1,394

746

2,140

533

342

875
Total

1,947

1,965

3,912

1,133

1,507

2,640
Medical Devices —

Rhythm Management

266

305

571

242

265

507
Electrophysiology

192

293

485

192

249

441
Heart Failure

170

59

229

144

46

190
Vascular

219

425

644

230

400

630
Structural Heart

177

215

392

159

194

353
Neuromodulation

149

41

190

170

36

206
Diabetes Care

323

798

1,121

226

617

843
Total

1,496

2,136

3,632

1,363

1,807

3,170

Other

6

5

11

15

5

20

Total

$
4,368

$
6,560

$
10,928

$
3,329

$
5,524

$
8,853


	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	902	$	902	$	—	$	821	$	821
Other		—		245		245		—		249		249
Total		—		1,147		1,147		—		1,070		1,070
Nutritionals —
Pediatric Nutritionals		338		509		847		508		558		1,066
Adult Nutritionals		339		708		1,047		328		642		970
Total		677		1,217		1,894		836		1,200		2,036
Diagnostics —
Core Laboratory		268		916		1,184		271		911		1,182
Molecular		172		248		420		175		272		447
Point of Care		91		37		128		92		37		129
Rapid Diagnostics		2,210		1,344		3,554		1,103		1,153		2,256
Total		2,741		2,545		5,286		1,641		2,373		4,014
Medical Devices —
Rhythm Management		248		276		524		241		278		519
Electrophysiology		216		269		485		179		252		431
Heart Failure		167		54		221		145		49		194
Vascular		209		410		619		219		416		635
Structural Heart		190		221		411		169		208		377
Neuromodulation		143		36		179		145		39		184
Diabetes Care		343		783		1,126		253		727		980
Total		1,516		2,049		3,565		1,351		1,969		3,320

Other		3		—		3		10		6		16

Total	$	4,937	$	6,958	$	11,895	$	3,838	$	6,618	$	10,456

108

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 32 — Revenue (Continued)

Nine Months Ended September 30, 2021

Nine Months Ended September 30, 2020
(in millions)

U.S.

Int’l

Total

U.S.

Int’l

Total
Established Pharmaceutical Products —












Key Emerging Markets

$
—

$
2,672

$
2,672

$
—

$
2,376

$
2,376
Other

—

843

843

—

780

780
Total

—

3,515

3,515

—

3,156

3,156
Nutritionals —

Pediatric Nutritionals

1,622

1,637

3,259

1,490

1,629

3,119
Adult Nutritionals

1,006

1,987

2,993

948

1,644

2,592
Total

2,628

3,624

6,252

2,438

3,273

5,711
Diagnostics —

Core Laboratory

845

2,935

3,780

840

2,312

3,152
Molecular

431

651

1,082

429

527

956
Point of Care

289

112

401

278

109

387
Rapid Diagnostics

3,178

2,732

5,910

1,246

719

1,965
Total

4,743

6,430

11,173

2,793

3,667

6,460
Medical Devices —

Rhythm Management

776

881

1,657

655

727

1,382
Electrophysiology

580

823

1,403

476

652

1,128
Heart Failure

483

167

650

411

140

551
Vascular

684

1,292

1,976

628

1,108

1,736
Structural Heart

537

654

1,191

386

508

894
Neuromodulation

460

124

584

392

97

489
Diabetes Care

865

2,292

3,157

614

1,736

2,350
Total

4,385

6,233

10,618

3,562

4,968

8,530

Other

31

18

49

30

20

50

Total

$
11,787

$
19,820

$
31,607

$
8,823

$
15,084

$
23,907

Remaining Performance Obligations

As of ~~September 30, 2021,~~March 31, 2022, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately ~~$3.9~~$3.8 billion in the Diagnostics segment and approximately ~~$445~~$428 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 60 percent of these remaining performance obligations over the next 24 months, approximately 16 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 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.

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

~~Note 3 — Revenue (Continued)~~

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 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 reportable segment when payment is received upfront for various multi-period extended service arrangements.

Changes in the contract liabilities during the period are as follows:


(in millions)
Contract Liabilities:
Balance at December 31, 2020	$	405
Balance at December 31, 2021			$	520
Unearned revenue from cash received during the period		416		171
Revenue recognized related to contract liability balance		(409)		(178)
Balance at September 30, 2021	$	412
Balance at March 31, 2022			$	513

Note 43 — Supplemental Financial Information

Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Earnings from Continuing Operations allocated to common shares for the three months ended September 30, 2021 and 2020 were $2.092 billion and $1.226 billion, respectively, and for the nine months ended September 30, 2021 and 2020 were $5.061 billion and $2.302 billion, respectively. Net earnings allocated to common shares for the three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ were ~~$2.092~~$2.438 billion and ~~$1.226~~$1.785 billion, ~~respectively, and for the nine months ended September 30, 2021 and 2020 were $5.061 billion and $2.322 billion,~~ respectively.

Earnings from discontinued operations, net of tax, in the first nine months of 2020 include the recognition of $20 million of tax benefits as a result of the resolution of various tax positions related to the previous sale of a business that was reported as a discontinued operation.

Other, net in Net cash from operating activities in the Condensed Consolidated Statement of Cash Flows for the first ~~nine~~three months of ~~2021~~2022 includes ~~$366~~$334 million of pension contributions and the payment of cash taxes of approximately ~~$990~~$195 million. The first ~~nine~~three months of ~~2020~~2021 includes ~~$350~~$16 million of pension contributions and the payment of cash taxes of approximately ~~$700~~$270 million.

~~The following summarizes the activity for the first nine months of 2021 related to the allowance for doubtful accounts as of September 30, 2021:~~

(in millions)

Allowance for Doubtful Accounts:

Balance at December 31, 2020

$
288
Provisions/charges to income

41
Amounts charged off and other deductions

(18)
Balance at September 30, 2021

$
311

129

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 43 — Supplemental Financial Information (Continued)

The following summarizes the activity for the first three months of 2022 related to the allowance for doubtful accounts as of March 31, 2022:


(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2021	$	313
Provisions/charges to income		3
Amounts charged off and other deductions		(15)
Balance at March 31, 2022	$	301

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, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are as follows:


	September 30,		December 31,		March 31,		December 31,
(in millions)	2021		2020		2022		2021
Long-term Investments:
Equity securities	$	758	$	776	$	703	$	748
Other		54		45		60		68
Total	$	812	$	821	$	763	$	816

The decrease in Abbott’s long-term investments as of ~~September 30, 2021~~March 31, 2022 versus the balance as of December 31, ~~2020~~2021 primarily relates to a decrease in the ~~sale~~value of ~~an equity method investment.~~investments held in a rabbi trust.

Abbott’s equity securities as of ~~September 30, 2021,~~March 31, 2022, include ~~$382~~$357 million of investments in mutual funds that are held in a rabbi trust and were acquired as part of the St. Jude Medical, Inc. (St. Jude Medical) business acquisition. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.

Abbott also holds certain investments as of ~~September 30, 2021~~March 31, 2022 with a carrying value of ~~$269~~$244 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of ~~approximately $91~~$92 million that do not have a readily determinable fair value. ~~An approximately $60 million impairment of an investment was recorded in the second quarter of 2020 for which Abbott had previously recorded an unrealized gain of approximately $50 million in 2018.~~

In September 2021, Abbott acquired 100 percent of Walk Vascular, LLC (Walk Vascular), a commercial-stage medical device company with a minimally invasive thrombectomy system designed to remove peripheral blood clots. Walk Vascular’s peripheral thrombectomy system will be incorporated into Abbott’s existing endovascular portfolio. The purchase price, the allocation of acquired assets and liabilities, and the revenue and net income contributed by Walk Vascular since the date of acquisition are not material to Abbott’s condensed consolidated financial statements.

1310

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~Note 4 — Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of income taxes, are as follows:


	Three Months Ended March 31
									Cumulative Gains (Losses)
	Cumulative Foreign				Net Actuarial (Losses) and				on Derivative Instruments
	Currency Translation				Prior Service (Costs) and				Designated as Cash Flow
	Adjustments				Credits				Hedges
(in millions)	2022		2021		2022		2021		2022		2021
Balance at January 1	$	(5,839)	$	(4,859)	$	(2,670)	$	(3,871)	$	135	$	(216)
Other comprehensive income (loss) before reclassifications		(106)		(536)		17		22		(34)		96
Amounts reclassified from accumulated other comprehensive income		—		—		45		63		(22)		16
Net current period comprehensive income (loss)		(106)		(536)		62		85		(56)		112
Balance at March 31	$	(5,945)	$	(5,395)	$	(2,608)	$	(3,786)	$	79	$	(104)

(Income) loss amounts reclassified from accumulated other comprehensive income related to 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 11 for additional details.

Note 5 — Goodwill and Intangible Assets

The total amount of goodwill reported was $23.2 billion at March 31, 2022 and December 31, 2021. Foreign currency translation adjustments decreased goodwill by approximately $50 million in the first three months of 2022. The amount of goodwill related to reportable segments at March 31, 2022 was $2.8 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.7 billion for the Diagnostic Products segment, and $16.4 billion for the Medical Devices segment. There was 0 reduction of goodwill relating to impairments in the first three months of 2022.

The gross amount of amortizable intangible assets, primarily product rights and technology, was $27.7 billion as of March 31, 2022 and December 31, 2021 and accumulated amortization was $16.4 billion as of March 31, 2022 and $15.9 billion as of December 31, 2021. Foreign currency translation adjustments increased intangible assets by $3 million in the first three months of 2022. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.1 billion in 2022, $2.0 billion in 2023, $1.9 billion in 2024, $1.7 billion in 2025 and $1.6 billion in 2026.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $919 million as of March 31, 2022 and December 31, 2021.

Table of Contents

~~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 Gains (Losses)

Cumulative Foreign

Net Actuarial (Losses) and

on Derivative Instruments

Currency Translation

Prior Service (Costs) and

Designated as Cash Flow

Adjustments

Credits

Hedges
(in millions)

2021

2020

2021

2020

2021

2020
Balance at June 30

$
(5,230)

$
(5,713)

$
(3,738)

$
(3,446)

$
(98)

$
79
Other comprehensive income (loss) before reclassifications

(391)

112

16

(21)

70

(74)
Amounts reclassified from accumulated other comprehensive income

0

0

62

49

69

(30)
Net current period comprehensive income (loss)

(391)

112

78

28

139

(104)
Balance at September 30

$
(5,621)

$
(5,601)

$
(3,660)

$
(3,418)

$
41

$
(25)

Nine Months Ended September 30

Cumulative Gains (Losses)

Cumulative Foreign

Net Actuarial (Losses) and

on Derivative Instruments

Currency Translation

Prior Service (Costs) and

Designated as Cash Flow

Adjustments

Credits

Hedges
(in millions)

2021

2020

2021

2020

2021

2020
Balance at January 1

$
(4,859)

$
(4,924)

$
(3,871)

$
(3,540)

$
(216)

$
(1)
Other comprehensive income (loss) before reclassifications

(762)

(677)

26

(23)

138

35
Amounts reclassified from accumulated other comprehensive income

—

—

185

145

119

(59)
Net current period comprehensive income (loss)

(762)

(677)

211

122

257

(24)
Balance at September 30

$
(5,621)

$
(5,601)

$
(3,660)

$
(3,418)

$
41

$
(25)

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 12 for additional details.

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 6 ~~— Goodwill and Intangible Assets~~

The total amount of goodwill reported was $23.3 billion at September 30, 2021 and $23.7 billion at December 31, 2020. Foreign currency translation adjustments decreased goodwill by approximately $444 million in the first nine months of 2021. The amount of goodwill related to reportable segments at September 30, 2021 was $2.9 billion for the Established Pharmaceutical Products segment, $286 million for the Nutritional Products segment, $3.8 billion for the Diagnostic Products segment, and $16.4 billion for the Medical Devices segment. There was 0 reduction of goodwill relating to impairments in the first nine months of 2021.

Indefinite-lived intangible assets, which relate to in-process R&D (IPR&D) acquired in a business combination, were approximately $929 million as of September 30, 2021 and $1.2 billion at December 31, 2020. The decrease is due to IPR&D assets primarily related to the Medical Devices segment that became amortizable in 2021, partially offset by an increase of approximately $90 million related to a recent acquisition.

The gross amount of amortizable intangible assets, primarily product rights and technology was $27.8 billion as of September 30, 2021 and December 31, 2020, and accumulated amortization was $15.4 billion as of September 30, 2021 and $14.2 billion as of December 31, 2020. Amortizable intangible assets increased by approximately $130 million as a result of a recent acquisition and the additional assets are being amortized over 9 years. Foreign currency translation adjustments decreased intangible assets by $152 million in the first nine months of 2021. In the first nine months of 2021, asset impairments related to the Established Pharmaceutical Products segment decreased intangible assets by $13 million. The impairments were recorded in the Cost of products sold, excluding amortization of intangible assets line of Abbott’s Condensed Consolidated Statement of Earnings. Abbott’s estimated annual amortization expense for intangible assets is approximately $2.0 billion in 2021, $2.1 billion in 2022, $2.0 billion in 2023, $1.9 billion in 2024 and $1.8 billion in 2025.

~~Note 7~~ — Restructuring Plans

On May 27, 2021, Abbott management approved a restructuring plan related to its Diagnostic Products segment to align its manufacturing network for COVID-19 diagnostic tests with changes in the second quarter in projected testing demand driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, the accelerated rollout of COVID-19 vaccines globally and the U.S. health authority’s updated guidance on testing for fully vaccinated individuals. In the second quarter of 2021, Abbott recorded charges of $499 million under this plan in Cost of products sold. The charge recognized in the second quarter included fixed asset write-downs of $80 million, inventory-related charges of $248 million, and other exit costs, which included contract cancellations and employee-related costs of $171 million.

In the ~~third quarter~~second half of 2021, as the Delta ~~variant~~and Omicron variants of COVID-19 spread and the number of new COVID-19 cases increased significantly, particularly in the U.S., demand for rapid COVID-19 tests increased significantly. As a result, in the ~~third quarter~~second half of 2021, Abbott sold approximately ~~$120~~$181 million of inventory that was previously estimated to have no net realizable value under the second quarter of 2021 restructuring action. In addition, the estimate of other exit costs was reduced by a net ~~$19~~$58 million as Abbott fulfilled its purchase obligations under certain contracts for which a liability was recorded in the second quarter or Abbott settled with the counterparty in the ~~third quarter.~~

~~Table~~second half of ~~Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

~~Note 7 — Restructuring Plans (Continued)~~

2021.

The following summarizes the activity ~~for the first nine months of 2021~~ related to this restructuring action and the status of the related accruals as of ~~September 30, 2021:~~March 31, 2022:


	Inventory-								Inventory-
	Related		Fixed Asset		Other Exit				Related		Fixed Asset		Other Exit
(in millions)	Charges		Write-Downs		Costs		Total		Charges		Write-Downs		Costs		Total
Restructuring charges recorded in 2021	$	248	$	80	$	152	$	480	$	248	$	80	$	113	$	441
Payments		—		—		(54)		(54)		—		—		(90)		(90)
Other non-cash		(248)		(80)		—		(328)		(248)		(80)		—		(328)
Accrued balance at September 30, 2021	$	—	$	—	$	98	$	98
Accrued balance at December 31, 2021										—		—		23		23
Payments and other adjustments										—		—		(3)		(3)
Accrued balance at March 31, 2022									$	—	$	—	$	20	$	20

From 2017 to 2021, Abbott management approved restructuring plans as part of the integration of the acquisitions of St. Jude Medical into the Medical Devices segment, and Alere Inc. (Alere) into the Diagnostic Products segment, in order to leverage economies of scale and reduce costs. As of December 31, 2020, the accrued balance associated with these actions was $25 million. In the first nine months of 2021, charges of $5 million were recognized, of which $1 million is recorded in Cost of products sold and $4 million as Selling, general and administrative expense. As of September 30, 2021, the accrued liabilities remaining in the Condensed Consolidated Balance Sheet related to these actions total $10 million and primarily represent severance obligations.

~~From 2017 to~~ 2021, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in ~~various Abbott businesses including the nutritional,~~Abbott’s diagnostics, established pharmaceuticals, nutritional, and ~~vascular~~medical devices businesses. ~~In the first nine months of 2021,~~Abbott recorded employee-related severance and other charges of ~~$17~~approximately $68 million ~~were recognized,~~in 2021 of which $1approximately $16 million iswas recorded in Cost of products sold, approximately $4 million was recorded in Research and ~~$16~~development, and approximately $48 million aswas recorded in Selling, general and administrative expense.

The following summarizes the activity for ~~the first nine months of 2021 related to~~ these ~~restructuring actions and the status of the related accrual as of September 30, 2021:~~restructurings:


(in millions)
Accrued balance at December 31, 2020	$	70
Restructuring charges recorded in 2021		17
Restructuring charges			$	68
Payments and other adjustments		(30)		(7)
Accrued balance at September 30, 2021	$	57
Accrued balance at December 31, 2021				61
Payments and other adjustments				(16)
Accrued balance at March 31, 2022			$	45

Table of Contents

Note 87 — Incentive Stock Programs

In the first ~~nine~~three months of ~~2021,~~2022, Abbott granted ~~2,865,115~~2,594,059 stock options, ~~497,373~~514,148 restricted stock awards and ~~4,670,845~~5,303,072 restricted stock units under its incentive stock program. At ~~September 30, 2021,~~March 31, 2022, approximately ~~101~~86 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at ~~September 30, 2021~~March 31, 2022 is as follows:


	Outstanding		Exercisable		Outstanding		Exercisable
Number of shares		29,594,797		22,674,416		29,479,237		23,547,781
Weighted average remaining life (years)		5.8		4.9		5.9		5.1
Weighted average exercise price	$	63.08	$	51.79	$	69.87	$	59.23
Aggregate intrinsic value (in millions)	$	1,645	$	1,504	$	1,445	$	1,397

The total unrecognized share-based compensation cost at ~~September 30, 2021~~March 31, 2022 amounted to approximately ~~$552~~$825 million which is expected to be recognized over the next three years.

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 98 — Debt and Lines of Credit

On ~~September 28, 2020,~~March 15, 2022, Abbott repaid the ~~€1.140 billion~~$750 million outstanding principal amount of its ~~0.00%~~2.55% Notes due ~~2020~~2022 upon maturity. ~~The repayment equated to approximately $1.3 billion.~~

On June 24, 2020, Abbott completed the issuance of $1.3 billion aggregate principal amount of senior notes, consisting of $650 million of its 1.15% Notes due 2028 and $650 million of its 1.40% Notes due 2030.

Note 109 — 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 ~~$8.7~~$8.5 billion at ~~September 30, 2021~~March 31, 2022 and ~~$8.1~~$8.6 billion at December 31, ~~2020~~2021 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, 2021~~March 31, 2022 will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.

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, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, Abbott held the gross notional ~~amounts~~amount of ~~$11.4~~$12.2 billion ~~and $11.0 billion, respectively,~~ of such foreign currency forward exchange contracts.

Abbott has designated a yen-denominated, 5-year term loan of approximately ~~$536~~$491 million and ~~$577~~$521 million as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, 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 totaling approximately $2.9 billion at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 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.

1713

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 109 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The following table summarizes the amounts and location of certain derivative financial instruments as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021:


	Fair Value - Assets					Fair Value - Liabilities					Fair Value - Assets					Fair��Value - Liabilities
	Sept. 30,		Dec. 31,			Sept. 30,		Dec. 31,			March 31,		Dec. 31,			March 31,		Dec. 31,
(in millions)	2021		2020		Balance Sheet Caption	2021		2020		Balance Sheet Caption	2022		2021		Balance Sheet Caption	2022		2021		Balance Sheet Caption
Interest rate swaps designated as fair value hedges	$	129	$	210	Deferred income taxes and other assets	$	—	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities	$	—	$	87	Deferred income taxes and other assets	$	34	$	—	Post-employment obligations, deferred income taxes and other long-term liabilities
Foreign currency forward exchange contracts:
Hedging instruments		193		30	Prepaid expenses and other receivables		69		433	Other accrued liabilities		204		222	Prepaid expenses and other receivables		183		65	Other accrued liabilities
Others not designated as hedges		45		60	Prepaid expenses and other receivables		68		65	Other accrued liabilities		149		70	Prepaid expenses and other receivables		93		32	Other accrued liabilities
Debt designated as a hedge of net investment in a foreign subsidiary		—		—	n/a		536		577	Long-term debt		—		—	n/a		491		521	Long-term debt
	$	367	$	300		$	673	$	1,075		$	353	$	379		$	801	$	618

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, 2021~~March 31, 2022 and ~~2020.~~2021.

Gain (loss) Recognized in Other

Income (expense) and Gain (loss)

Comprehensive Income (loss)

Reclassified into Income

Three Months

Nine Months

Three Months

Nine Months

Ended Sept. 30

Ended Sept. 30

Ended Sept. 30

Ended Sept. 30

(in millions)

2021

2020

2021

2020

2021

2020

2021

2020

Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges

$
96

$
(103)

$
142

$
35

$
(92)

$
48

$
(207)

$
90

Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary

4

(10)

41

(20)

—

—

—

—

n/a
Interest rate swaps designated as fair value hedges

n/a

n/a

n/a

n/a

(14)

(11)

(81)

184

Interest expense

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

~~Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)~~


	Gain (loss) Recognized in				Income (expense) and
	Other Comprehensive				Gain (loss) Reclassified
	Income (loss)				into Income
(in millions)	2022		2021		2022		2021		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	(49)	$	134	$	27	$	(23)	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		30		35		—		—	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		(121)		(69)	Interest expense

Losses of ~~$18~~$51 million and ~~$100~~gains of $49 million were recognized in the three months ended ~~September 30,~~March 31, 2022 and 2021, and 2020, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $15 million and losses of $198 million were recognized in the nine months ended September 30, 2021 and 2020, 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, 2021 and December 31, 2020 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, 2021

December 31, 2020


Carrying

Fair

Carrying

Fair
(in millions)

Value

Value

Value

Value
Long-term Investment Securities:

Equity securities

$
758

$
758

$
776

$
776
Other

54

54

45

45
Total Long-term Debt

(18,200)

(21,330)

(18,534)

(22,809)
Foreign Currency Forward Exchange Contracts:

Receivable position

238

238

90

90
(Payable) position

(137)

(137)

(498)

(498)
Interest Rate Hedge Contracts:

Receivable position

129

129

210

210

~~The fair value of the debt was determined based on significant other observable inputs, including current interest rates.~~

1914

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 109 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The carrying values and fair values of certain financial instruments as of March 31, 2022 and December 31, 2021 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.


	March 31, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	703	$	703	$	748	$	748
Other		60		60		68		68
Total long-term debt		(17,090)		(18,704)		(18,050)		(21,152)
Foreign Currency Forward Exchange Contracts:
Receivable position		353		353		292		292
(Payable) position		(276)		(276)		(97)		(97)
Interest Rate Hedge Contracts:
Receivable position		—		—		87		87
(Payable) position		(34)		(34)		—		—

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								Basis of Fair Value Measurement
			Quoted		Significant						Quoted		Significant
			Prices in		Other		Significant				Prices in		Other		Significant
	Outstanding		Active		Observable		Unobservable		Outstanding		Active		Observable		Unobservable
(in millions)	Balances		Markets		Inputs		Inputs		Balances		Markets		Inputs		Inputs
September 30, 2021:
March 31, 2022:
Equity securities									$	367	$	367	$	—	$	—
Foreign currency forward exchange contracts										353		—		353		—
Total Assets									$	720	$	367	$	353	$	—

Fair value of hedged long-term debt									$	2,805	$	—	$	2,805	$	—
Interest rate swap derivative financial instruments										34		—		34		—
Foreign currency forward exchange contracts										276		—		276		—
Contingent consideration related to business combinations										134		—		—		134
Total Liabilities									$	3,249	$	—	$	3,115	$	134

December 31, 2021:
Equity securities	$	398	$	398	$	—	$	—	$	402	$	402	$	—	$	—
Interest rate swap derivative financial instruments		129		—		129		—		87		—		87		—
Foreign currency forward exchange contracts		238		—		238		—		292		—		292		—
Total Assets	$	765	$	398	$	367	$	—	$	781	$	402	$	379	$	—

Fair value of hedged long-term debt	$	2,967	$	—	$	2,967	$	—	$	2,926	$	—	$	2,926	$	—
Foreign currency forward exchange contracts		137		—		137		—		97		—		97		—
Contingent consideration related to business combinations		129		—		—		129		130		—		—		130
Total Liabilities	$	3,233	$	—	$	3,104	$	129	$	3,153	$	—	$	3,023	$	130

December 31, 2020:
Equity securities	$	386	$	386	$	—	$	—
Interest rate swap derivative financial instruments		210		—		210		—
Foreign currency forward exchange contracts		90		—		90		—
Total Assets	$	686	$	386	$	300	$	—

Fair value of hedged long-term debt	$	3,049	$	—	$	3,049	$	—
Foreign currency forward exchange contracts		498		—		498		—
Contingent consideration related to business combinations		68		—		—		68
Total Liabilities	$	3,615	$	—	$	3,547	$	68

Table of Contents

Note 9 — Financial Instruments, Derivatives and Fair Value Measures (Continued)

The fair value of foreign currency forward exchange contracts is determined using a market approach, which utilizes values for comparable derivative instruments. The fair value of debt was determined based on the face value of the debt adjusted for the fair value of the interest rate swaps, which is based on a discounted cash flow analysis using significant other observable inputs.

~~The increase in contingent consideration during the year was a result of a recent acquisition.~~ The fair value of the contingent consideration was determined based on independent appraisals at the time of acquisition, adjusted for the time value of money and other changes in fair value.

~~Table of Contents~~

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 1110 — 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~~$30 million to $45 million. The recorded accrual balance at ~~September 30, 2021~~March 31, 2022 for these proceedings and exposures was approximately ~~$35~~$40 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.

Note 1211 — 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 ~~in continuing operations~~ for the three ~~and nine~~ months ended ~~September 30~~March 31 for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:


	Defined Benefit Plans								Medical and Dental Plans
	Three Months				Nine Months				Three Months				Nine Months				Defined Benefit Plans				Medical and Dental Plans
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				March 31,		March 31,		March 31,		March 31,
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020		2022		2021		2022		2021
Service cost - benefits earned during the period	$	98	$	85	$	294	$	251	$	14	$	12	$	42	$	35

Service cost — benefits earned during the period																	$	96	$	100	$	13	$	14
Interest cost on projected benefit obligations		62		75		186		224		8		11		25		32		76		62		10		8
Expected return on plan assets		(211)		(193)		(633)		(576)		(6)		(7)		(20)		(21)		(236)		(211)		(7)		(7)
Net amortization of:
Actuarial loss, net		79		64		238		191		7		5		21		15		59		81		5		7
Prior service cost (credit)		—		—		1		1		(7)		(7)		(21)		(21)		—		—		(6)		(7)
Net cost - continuing operations	$	28	$	31	$	86	$	91	$	16	$	14	$	47	$	40
Net cost (credit)																	$	(5)	$	32	$	15	$	15

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~~three months of 2022 and 2021, ~~and 2020, $366~~$334 million and ~~$350~~$16 million, respectively, were contributed to defined benefit plans. Contributions made to post-employment medical and dental plans ~~and $26 million and $11 million, respectively,~~in the first three months of 2022 were ~~contributed~~$28 million. NaN contributions were made to the post-employment medical and dental ~~plans.~~plans in the first three months of 2021.

2116

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 1312 — Taxes on Earnings

Taxes on earnings ~~from continuing operations~~ reflect the estimated annual effective rates and include charges for interest and penalties. In the first ~~nine~~three months of ~~2021~~2022 and ~~2020,~~2021, taxes on earnings ~~from continuing operations~~ include approximately ~~$97~~$30 million and ~~$87~~$80 million, respectively, in excess tax benefits associated with share-based compensation. In the first ~~nine~~three months of ~~2020,~~2022, taxes on earnings ~~from continuing operations~~ also include approximately ~~$81~~$30 million ~~in tax benefits related to the settlement of the former St. Jude Medical consolidated group’s 2014 through 2016 federal income tax returns in the U.S. Earnings from discontinued operations, net~~ of tax inexpense as the ~~first nine months of 2020 reflect the recognition of $20 million of net tax benefits primarily as a~~ result of the resolution of various tax positions related to prior years.

Tax authorities in various jurisdictions regularly review Abbott’s income tax filings. Abbott believes that it is reasonably possible that the recorded amount of gross unrecognized tax benefits may decrease approximately $70 million to $80 million, including cash adjustments, within the next twelve months as a result of concluding various domestic and international tax matters.

Note 1413 — Segment Information

Abbott’s principal business is the discovery, development, manufacture and sale of a broad line of health care products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices and government agencies throughout the world.

Abbott’s reportable segments are as follows:

Established Pharmaceutical Products — International sales of a broad line of branded generic pharmaceutical products.

Nutritional Products — Worldwide sales of a broad line of adult and pediatric nutritional products.

Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories, ~~physician~~physicians’ offices 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, ~~and~~ 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.

2217

Table of Contents

~~Abbott Laboratories and Subsidiaries~~

~~Notes to the Condensed Consolidated Financial Statements~~

~~September 30, 2021~~

~~(Unaudited)~~

Note 1413 — Segment Information (Continued)

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 condensed consolidated financial statements.


	Net Sales to External Customers								Operating Earnings								Three Months Ended March 31
	Three Months				Nine Months				Three Months				Nine Months				Net Sales to				Operating
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				External Customers				Earnings
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020		2022		2021		2022		2021
Established Pharmaceutical Products	$	1,265	$	1,099	$	3,515	$	3,156	$	293	$	201	$	682	$	588	$	1,147	$	1,070	$	242	$	169
Nutritional Products		2,108		1,924		6,252		5,711		431		394		1,388		1,327		1,894		2,036		251		467
Diagnostic Products		3,912		2,640		11,173		6,460		1,652		875		4,429		1,802		5,286		4,014		2,569		1,701
Medical Devices		3,632		3,170		10,618		8,530		1,160		928		3,375		2,122		3,565		3,320		1,078		1,007
Total Reportable Segments		10,917		8,833		31,558		23,857		3,536		2,398		9,874		5,839		11,892		10,440		4,140		3,344
Other		11		20		49		50										3		16
Net sales	$	10,928	$	8,853	$	31,607	$	23,907									$	11,895	$	10,456
Corporate functions and benefit plan costs										(204)		(129)		(450)		(367)
Corporate functions and benefit plans costs																						(114)		(114)
Net interest expense										(123)		(127)		(370)		(373)						(117)		(124)
Share-based compensation (a)										(114)		(100)		(534)		(448)						(305)		(288)
Amortization of intangible assets										(520)		(510)		(1,533)		(1,624)						(512)		(509)
Other, net (b)										(82)		(111)		(1,103)		(447)						(216)		(266)
Earnings from continuing operations before taxes									$	2,493	$	1,421	$	5,884	$	2,580
Earnings before taxes																					$	2,876	$	2,043

(a)	Approximately 5045 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 ~~and nine~~ months ended ~~September 30, 2021 and 2020~~March 31, 2022 includes ~~integration costs associated with~~$120 million of charges related to a voluntary recall within the ~~acquisition of St. Jude Medical and Alere, and restructuring charges. 2021 restructuring charges include Abbott’s restructuring plan for its COVID-19 test manufacturing network.~~Nutritional Products segment. Other, net for the ~~nine~~three months ended ~~September 30,~~March 31, 2021 ~~also~~ includes net costs related to certain litigation. Other, net for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2022 and 2021 also includes integration costs ~~related to asset impairments, partially offset by income from~~associated with the ~~settlement~~acquisitions of ~~litigation.~~St. Jude Medical and Alere Inc., and restructuring charges.

2318

Table of Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Review - Results of Operations

Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. Patent protection and licenses, technological and performance features, and inclusion of Abbott’s products under a contract most impact which products are sold; price controls, competition and rebates most impact the net selling prices of products; and foreign currency translation impacts the measurement of net sales and costs. Abbott’s primary products are medical devices, diagnostic testing products, nutritional products and branded generic pharmaceuticals.

The following table details sales by reportable segment for the three ~~and nine~~ months ended ~~September 30.~~March 31. Percent changes are versus the prior year and are based on unrounded numbers.

Net Sales to External Customers


Three Months

Three Months






Ended

Ended

Impact of

Total Change

Sept. 30,

Sept. 30,

Total

Foreign

Excl. Foreign

(in millions)

2021

2020

Change

Exchange

Exchange

Established Pharmaceutical Products

$
1,265

$
1,099

15.1
%
(0.2)
%
15.3
%
Nutritional Products

2,108

1,924

9.6

0.7

8.9

Diagnostic Products

3,912

2,640

48.2

1.4

46.8

Medical Devices

3,632

3,170

14.6

1.5

13.1

Total Reportable Segments

10,917

8,833

23.6

1.1

22.5

Other

11

20

(51.4)

0.9

(52.3)

Net Sales

$
10,928

$
8,853

23.4

1.0

22.4

Total U.S.

$
4,368

$
3,329

31.2

—

31.2

Total International

$
6,560

$
5,524

18.7

1.7

17.0


	Net Sales to External Customers										Net Sales to External Customers
	Nine Months		Nine Months								Three Months		Three Months
	Ended		Ended				Impact of		Total Change		Ended		Ended				Impact of		Total Change
	Sept. 30,		Sept. 30,		Total		Foreign		Excl. Foreign		March 31,		March 31,		Total		Foreign		Excl. Foreign
(in millions)	2021		2020		Change		Exchange		Exchange		2022		2021		Change		Exchange		Exchange

Established Pharmaceutical Products	$	3,515	$	3,156	11.4	%	(0.6)	%	12.0	%	$	1,147	$	1,070	7.1	%	(6.3)	%	13.4	%
Nutritional Products		6,252		5,711	9.5		1.2		8.3			1,894		2,036	(7.0)		(2.6)		(4.4)
Diagnostic Products		11,173		6,460	73.0		3.8		69.2			5,286		4,014	31.7		(3.4)		35.1
Medical Devices		10,618		8,530	24.5		3.8		20.7			3,565		3,320	7.4		(4.1)		11.5
Total Reportable Segments		31,558		23,857	32.3		2.6		29.7			11,892		10,440	13.9		(3.8)		17.7
Other		49		50	(1.3)		2.8		(4.1)			3		16	(85.8)		—		(85.8)
Net Sales	$	31,607	$	23,907	32.2		2.6		29.6		$	11,895	$	10,456	13.8		(3.7)		17.5

Total U.S.	$	11,787	$	8,823	33.6		—		33.6		$	4,937	$	3,838	28.6		—		28.6

Total International	$	19,820	$	15,084	31.4		4.1		27.3		$	6,958	$	6,618	5.1		(6.0)		11.1

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

~~Table of Contents~~

The ~~22.4~~17.5 percent increase in total net sales during the ~~third quarter~~first three months of ~~2021,~~2022, excluding the impact of foreign exchange, reflected demand for Abbott’s rapid diagnostics tests to detect COVID-19 as well as ~~other~~ growth ~~across~~in Abbott’s ~~reportable segments.~~Medical Devices and Established Pharmaceutical Products segments partially offset by lower Nutritional sales. During the ~~third~~first quarter of ~~2021,~~2022, Abbott’s COVID-19 testing-related sales totaled approximately ~~$1.9~~$3.3 billion led by combined sales of approximately ~~$1.6~~$3.0 billion related to Abbott’s BinaxNOW^®, Panbio^®, and ID NOW^® rapid testing platforms. During the ~~third~~first quarter of ~~2020,~~2021, Abbott’s COVID-19 testing-related sales totaled approximately ~~$0.9 billion.~~$2.2 billion led by combined sales of approximately $1.8 billion related to Abbott’s BinaxNOW, Panbio, and ID NOW rapid testing platforms. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased ~~13.2~~3.9 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased ~~12.1~~7.7 percent. Abbott’s net sales were ~~favorably impacted by changes in foreign exchange rates in the third quarter as the relatively weaker U.S. dollar increased total international sales by 1.7 percent and total sales by 1.0 percent.~~

The 29.6 percent increase in total net sales during the first nine months of 2021, excluding the impact of foreign exchange, reflected demand for Abbott’s tests to detect COVID-19 as well as other growth across Abbott’s reportable segments. During the first nine months of 2021, Abbott’s COVID-19 testing-related sales totaled approximately $5.4 billion led by combined sales of approximately $4.5 billion related to Abbott’s BinaxNOW, Panbio, and ID NOW rapid testing platforms. During the first nine months of 2020, COVID-19 testing-related sales totaled approximately $1.5 billion. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 17.3 percent. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 14.9 percent. Abbott’s net sales were favorablyunfavorably impacted by changes in foreign exchange rates in the first ~~nine months~~quarter as the relatively ~~weaker~~stronger U.S. dollar ~~increased~~decreased total international sales by ~~4.1~~6.0 percent and total sales by ~~2.6~~3.7 percent.

Due to the unpredictability of the duration and impact of the current COVID-19 pandemic, the future extent to which the COVID-19 pandemic will have a material effect on Abbott’s business, financial condition or results of operations is uncertain.

Table of Contents

The table below provides detail by sales category for the ~~nine~~three months ended ~~September 30.~~March 31. Percent changes are versus the prior year and are based on unrounded numbers.


								Impact of		Total Change								Impact of		Total Change
		Sept. 30,		Sept. 30,		Total		Foreign		Excl. Foreign		March 31,		March 31,		Total		Foreign		Excl. Foreign
(in millions)		2021		2020		Change		Exchange		Exchange		2022		2021		Change		Exchange		Exchange
Established Pharmaceutical Products —
Key Emerging Markets		$	2,672	$	2,376	12.4	%	(1.8)	%	14.2	%	$	902	$	821	9.8	%	(7.3)	%	17.1	%
Other Emerging Markets			843		780	8.1		2.7		5.4			245		249	(1.7)		(2.9)		1.2

Nutritionals —
International Pediatric Nutritionals			1,637		1,629	0.5		2.2		(1.7)			509		558	(8.8)		(3.4)		(5.4)
U.S. Pediatric Nutritionals			1,622		1,490	8.9		—		8.9			338		508	(33.6)		—		(33.6)
International Adult Nutritionals			1,987		1,644	20.9		2.0		18.9			708		642	10.3		(5.3)		15.6
U.S. Adult Nutritionals			1,006		948	6.0		—		6.0			339		328	3.7		—		3.7

Diagnostics —
Core Laboratory			3,780		3,152	19.9		3.5		16.4			1,184		1,182	0.1		(4.1)		4.2
Molecular			1,082		956	13.2		3.3		9.9			420		447	(5.9)		(2.9)		(3.0)
Point of Care			401		387	3.6		1.0		2.6			128		129	(0.6)		(1.0)		0.4
Rapid Diagnostics			5,910		1,965	200.7		4.9		195.8			3,554		2,256	57.5		(3.3)		60.8

Medical Devices —
Rhythm Management	��		1,657		1,382	19.9		3.3		16.6			524		519	1.0		(3.2)		4.2
Electrophysiology			1,403		1,128	24.4		3.1		21.3			485		431	12.6		(4.2)		16.8
Heart Failure			650		551	17.8		1.6		16.2			221		194	14.2		(2.0)		16.2
Vascular			1,976		1,736	13.9		3.5		10.4			619		635	(2.6)		(3.6)		1.0
Structural Heart			1,191		894	33.2		3.7		29.5			411		377	9.1		(4.7)		13.8
Neuromodulation			584		489	19.6		1.5		18.1			179		184	(3.1)		(1.6)		(1.5)
Diabetes Care			3,157		2,350	34.3		5.6		28.7			1,126		980	14.9		(5.5)		20.4

~~Table of Contents~~

Key Emerging Markets for the Established Pharmaceutical Products business include India, Russia, Brazil and China, along with several other markets that represent the most attractive long-term growth opportunities for Abbott’s branded generics product portfolio. Excluding the unfavorable effect of foreign exchange, sales in ~~the~~ Key Emerging Markets for Established Pharmaceutical Products increased ~~14.2~~17.1 percent, ~~compared to the first nine months of 2020~~ led by double-digit growth ~~across~~in several ~~geographies,~~countries and therapeutic areas, including ~~India, China~~gastroenterology, central nervous system/pain management, and ~~Brazil.~~respiratory products. Other Emerging Markets, excluding the effect of foreign exchange, increased by ~~5.4 percent in the first nine months of 2021.~~1.2 percent.

International Pediatric Nutritional sales, excluding the effect of foreign exchange, decreased ~~1.7 percent in the first nine months of 2021 versus the comparable 2020 period and the~~5.4 percent. The decrease reflects lower sales due to challenging market dynamics in ~~China,~~ the ~~Middle East and Canada~~infant category in Greater China partially offset by higher volumes sold in various countries in Southeast Asia, Latin America and ~~Europe. U.S. Pediatric Nutritional sales increased 8.9 percent primarily due to increased demand for Pedialyte~~^®~~, Abbott’s oral rehydration brand, and Similac~~^®~~, Abbott’s infant brand.~~the Middle East. International Adult Nutritional sales, excluding the effect of foreign exchange, increased ~~18.9~~15.6 percent, and U.S. Adult Nutritional sales increased ~~6.0~~3.7 percent, reflecting continued growth of the Ensure^® and Glucerna^® brands in several countries including the U.S.

In U.S. Pediatric Nutritionals, Abbott initiated a voluntary recall in February 2022 of certain infant powder formula products manufactured at one of its U.S. facilities and stopped production at the facility. The ~~69.2~~33.6 percent decrease in U.S. Pediatric Nutritional sales reflects the impact of the recall and production stoppage partially offset by increased demand for Abbott’s Pedialyte^® and PediaSure^® products. U.S. sales of certain infant powder formulas were $59 million in the first quarter of 2022 and $288 million in the first quarter of 2021. Abbott is working with the U.S. Food and Drug Administration (FDA) on corrective actions and enhancements so that operations at the facility can be restarted. Abbott cannot predict when manufacturing at the facility will restart. Abbott is also working to bring infant powder formula to the U.S. from its FDA-regulated facility in Europe and to increase production at other U.S. manufacturing plants.

Table of Contents

The 35.1 percent increase in Diagnostic Products sales, excluding the impact of foreign exchange, was driven by demand for Abbott’s portfolio of COVID-19 tests ~~as described above as well as~~in Rapid Diagnostics and growth in ~~the base~~routine diagnostic testing in Core Laboratory Diagnostics and Molecular ~~businesses.~~Diagnostics. In Core Laboratory Diagnostics, sales increased ~~16.4~~4.2 percent, excluding the effect of foreign exchange, due to the ~~increased~~higher volume of routine diagnostic testing ~~performed in hospitals~~from the continued roll-out of the Alinity^® platform and ~~other laboratories,~~an expanded menu of tests partially offset by lower sales of Abbott’s laboratory-based tests for the detection of ~~the~~COVID-19 IgG and IgM antibodies, which determine if someone was previously infected with the COVID-19 virus. In ~~March 2021, Abbott received an Emergency Use Authorization (EUA) in the U.S. for its AdviseDX SARS-CoV-2 IgG II test for the semi-quantitative detection of IgG antibodies to COVID-19 on its ARCHITECT~~^® ~~and Alinity~~^® ~~i platforms. In~~ the first ~~nine~~three months of ~~2021~~2022 and ~~2020,~~2021, Core Laboratory Diagnostics COVID-19 IgG and IgM antibody testing-related sales on Abbott’s ARCHITECT^® and Alinity i platforms were ~~$159~~$28 million and ~~$212~~$54 million, respectively. In the first ~~nine~~three months of ~~2021,~~2022, Core Laboratory Diagnostics sales increased ~~23.1~~2.4 percent, excluding COVID-19 testing-related sales, and increased ~~19.3~~6.6 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

The ~~9.9~~3.0 percent ~~increase~~decrease in Molecular Diagnostics sales, excluding the effect of foreign exchange, was driven by ~~growth in the base business from the continued roll-out of the Alinity~~^® ~~m platform as well as higher~~lower demand ~~in the first half of 2021~~ for Abbott’s laboratory-based molecular tests for COVID-19 on its m2000^® platform partially offset by growth in the base business from increased routine molecular testing and ~~Alinity m platforms.~~an expanded menu of tests. In the first ~~nine~~three months of ~~2021~~2022 and ~~2020,~~2021, Molecular Diagnostics COVID-19 testing-related sales were ~~$699~~$246 million and ~~$664~~$307 million, respectively. In March 2021, Abbott received an EUA in the U.S. for its multiplex molecular test on its Alinity m system to detect COVID-19, influenza A, influenza B, and respiratory syncytial virus (RSV) in one test. In the first ~~nine~~three months of ~~2021,~~2022, Molecular Diagnostics sales increased ~~31.3~~24.8 percent, excluding COVID-19 testing-related sales, and increased ~~28.1~~29.0 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales.

In Rapid Diagnostics, sales increased ~~195.8~~60.8 percent, excluding the effect of foreign exchange, due to the demand for Abbott’s COVID-19 tests on its rapid testing platforms, including the Panbio system, the ID NOW platform, and the BinaxNOW COVID-19 Ag Card test. In the first ~~nine~~three months of ~~2021~~2022 and ~~2020,~~2021, Rapid Diagnostics COVID-19 testing-related sales were ~~$4.5~~approximately $3.0 billion and ~~$0.65~~$1.8 billion, respectively. In January 2021, Abbott received CE Mark for two new uses of its Panbio rapid antigen test: asymptomatic testing and self-swabbing under the supervision of a healthcare worker. On March 31, 2021, Abbott announced that it had received an EUA in the U.S. for its over-the-counter, non-prescription BinaxNOW COVID-19 Ag Self Test for individuals with or without symptoms. In the first ~~quarter~~three months of ~~2021, Abbott also received EUAs that allow~~2022, Rapid Diagnostics sales increased 21.6 percent, excluding COVID-19 testing-related sales, and increased 23.5 percent, excluding the ~~non-prescription use~~impact of ~~the BinaxNOW~~foreign exchange and COVID-19 ~~Ag Card Home Test~~testing-related sales. These increases reflect higher sales of ID NOW tests for flu, strep, and ~~the BinaxNOW COVID-19 Ag Card test for professional use for individuals with or without symptoms. In June 2021, Abbott announced that it had received CE Mark~~respiratory syncytial virus (RSV) as well as growth in ~~Europe for its over-the-counter Panbio COVID-19 Antigen Self-Test for individuals with or without symptoms.~~other Rapid Diagnostics products.

Excluding the effect of foreign exchange, total Medical Devices sales grew ~~20.7~~11.5 percent driven by double-digit growth ~~across all divisions, led by~~in Diabetes Care, Electrophysiology, Structural Heart and ~~Electrophysiology.~~Heart Failure. Growth in Diabetes Care sales was driven by continued growth of FreeStyle Libre^®, Abbott’s continuous glucose monitoring system, internationally and in the U.S. FreeStyle Libre ~~and Libre Sense~~^™sales totaled ~~$2.7 billion~~$995 million in the first ~~nine~~three months of ~~2021,~~2022, which reflected a ~~37.2~~26.2 percent increase, excluding the effect of foreign exchange, over the first ~~nine~~three months of ~~2020~~2021 when FreeStyle Libre sales totaled ~~$1.9 billion. Libre Sense, which received CE Mark in Europe in the third quarter of 2020, is Abbott’s glucose sport biosensor specifically designed for athletes.~~$827 million.

~~Table of Contents~~

While procedure volumes across Abbott’s cardiovascular and neuromodulation businesses were negatively impacted ~~early in 2021~~ by elevated COVID-19 case rates early in ~~certain countries, including~~2022, overall volume trends improved as case rates declined in the ~~U.S., overall volumes improved over the course~~second half of the first nine months of 2021 across various businesses. The year-over-year increases in the various businesses reflect a recovery from the 2020 levels when the pandemic reduced procedure volumes as well as sales growth from pre-pandemic levels in Structural Heart,quarter. In Electrophysiology, ~~and Heart Failure,~~ excluding the effect of foreign ~~exchange.~~exchange, the increase in procedure volumes also reflects the U.S. roll-out of Abbott’s EnSite™ X EP System with Ensite Omnipolar Technology (OT), a new cardiac mapping platform available in the U.S., Japan and across Europe. In January ~~2021,~~2022, Abbott announced FDA clearance for the ~~U.S. Centers for Medicare & Medicaid Services expanded reimbursement coverage eligibility for~~EnSite X EP System with EnSite OT. The system leverages the Advisor™ HD Grid Catheter to provide a 360-degree view of the heart without regard to the orientation of the catheter in the heart.

Growth in Structural Heart, excluding the effect of foreign exchange, was broad-based across several areas of the business, including Amplatzer^® Amulet^® Left Atrial Appendage Occluder, which offers immediate closure of the left atrial appendage, an area in the heart where blood clots can form and MitraClip^®, Abbott’s market-leading device for the minimally invasive treatment of mitral regurgitation, ~~(MR),~~ a leaky heart valve. ~~The~~In Vascular, the 1.0 percent growth in ~~Structural Heart during~~sales, excluding the ~~first nine months~~impact of ~~2021 was broad-based across several areas~~foreign exchange, reflects higher endovascular sales partially offset by the negative effect of lower average pricing for drug-eluting stents (DES) in the ~~business, including MitraClip~~U.S. and ~~TriClip~~^®,a lag in the ~~world’s first minimally invasive, clip-based device for repair~~recovery of ~~a leaky tricuspid heart valve which was launched in Europe in May 2020.~~percutaneous coronary intervention case rates compared to many other cardiovascular procedures.

In ~~the first nine months of 2021,~~2022, Medical Devices received various product ~~approvals~~approvals. In February 2022, Abbott received FDA approval for an expanded indication for its CardioMEMS™ HF system, a small implantable sensor and remote monitoring system that can detect early warning signs of worsening heart failure. In April 2022, Abbott announced FDA approval for its Aveir™ single-chamber leadless pacemaker for the treatment of patients in the ~~Medical Devices segment included:~~U.S. with slow heart rhythms.

●

In May 2021, CE Mark in Europe for Navitor™, Abbott’s latest-generation transcatheter aortic valve implantation (TAVI) system for patients with severe aortic stenosis who are at high or extreme surgical risk,

●

~~In August 2021, U.S. Food and Drug Administration (FDA) approval of the Amplatzer~~^® ~~Amulet~~^® ~~Left Atrial Appendage Occluder, which offers immediate closure of the left atrial appendage, an area in the heart where blood clots can form,~~

●

~~In September 2021, FDA approval of the Portico~~^® ~~with FlexNav~~^® ~~TAVI system to treat people with symptomatic, severe aortic stenosis who are at high or extreme risk for open heart surgery, and~~

●

~~In September 2021, FDA approval of the Amplatzer~~^™ ~~Talisman~~^™ ~~PFO Occlusion System to treat people with a patent foramen ovale – a small opening between the upper chambers of the heart – who are at risk of recurrent ischemic stroke.~~

The gross profit margin percentage was ~~54.8~~53.8 percent for the ~~third~~first quarter of ~~2021~~2022 compared to ~~49.4~~53.0 percent for the ~~third~~first quarter of ~~2020.~~2021. The increase in the quarter reflects the ~~effects~~effect of higher sales volume ~~in various businesses, higher utilization at various manufacturing sites, a change in estimate to~~of COVID-19 rapid tests, the ~~restructuring actions recognized in the second quarter related to Abbott’s manufacturing network for COVID-19 diagnostic tests~~impact of gross margin improvement initiatives, and the ~~nonrecurrence~~favorable impact of the 2020 impairment of an intangible asset. The gross profit margin percentage was 51.6 percent for the first nine months of 2021 compared to 49.2 percent for the first nine months of 2020. The increase primarily reflects the effects of higher sales volume, higher manufacturing utilization, and the nonrecurrence of the 2020 intangible asset impairment,foreign exchange on costs partially offset by the impact of ~~higher restructuring charges~~the voluntary product recall in the ~~first nine months of 2021.~~Nutritional business and higher inflation on various manufacturing inputs, commodities and distribution costs.

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Research and development (R&D) expenses increased ~~$92~~$43 million, or ~~16.1 percent, in the third quarter of 2021 and increased $258 million, or 15.0~~6.5 percent, in the first ~~nine months~~quarter of ~~2021 compared to the prior year.~~2022. The ~~increases~~2022 increase in R&D ~~expenses in the third quarter and first nine months of 2021 were~~was primarily driven by higher spending on various projects to advance products in ~~development.~~development partially offset by the favorable impact of foreign exchange.

Selling, general and administrative ~~(SG&A)~~ expenses ~~for~~were basically flat in the ~~third~~first quarter of ~~2021 increased $465 million, or 20.2 percent, and increased $1.15 billion, or 16.1 percent, for~~2022 compared to the first ~~nine months~~quarter of ~~2021, due primarily to higher~~2021. Higher selling and marketing spending to drive growth across various businesses ~~and~~was offset by the nonrecurrence of ~~$100 million~~certain 2021 litigation costs and the favorable impact of ~~income in 2020 from a litigation settlement. The increase in the first nine months of 2021 also includes charges related to certain litigation.~~foreign exchange.

~~Restructuring Plans~~

In the third quarter of 2021, as the Delta variant of COVID-19 spread and the number of new COVID-19 cases increased significantly particularly in the U.S., demand for rapid COVID-19 tests increased significantly. As a result, in the third quarter Abbott sold approximately $120 million of inventory that was previously estimated to have no net realizable value under the second quarter restructuring action. In addition, the estimate of other exit costs was reduced by a net $19 million as Abbott fulfilled its purchase obligations under certain contracts for which a liability was recorded in the second quarter or Abbott settled with the counterparty in the third quarter.

~~Table of Contents~~

Other (Income) Expense, net

Other income, net increased from ~~$46 million of income in the third quarter of 2020 to $74 million of income in the third quarter of 2021 and from $25~~$61 million of income in the first ~~nine months~~quarter of ~~2020~~2021 to ~~$214~~$78 million of income in the first ~~nine months~~quarter of ~~2021.~~2022. The increase in the ~~third~~first quarter was primarily due to higher income in ~~2021~~2022 related to the non-service cost components of net pension and post-retirement medical benefit ~~costs. The increase~~costs partially offset by the change in ~~the first nine months~~earnings of ~~2021 was primarily due to a $100 million change related to the nonrecurrence of 2020 equity investment impairments, a gain on the sale of an~~ equity method ~~investment in 2021 and higher income in 2021 related to the non-service cost components of net pension and post-retirement medical benefit costs.~~investments.

Interest Expense, net

Interest expense, net ~~was virtually unchanged versus the prior year, decreasing $4 million in the third quarter of 2021 and decreasing $3~~decreased $7 million in the first ~~nine months~~quarter of ~~2021~~2022 primarily due to the ~~reduction in interest expense driven by lower interest rates in 2021. The effect~~impact of higher ~~cash and short-term investment balances mostly offset the impact of lower~~ interest rates on interest income in the first ~~nine months~~quarter of ~~2021.~~2022 and the repayment of debt in the first quarter of 2022.

Taxes on Earnings ~~from Continuing Operations~~

Liquidity and Capital Resources ~~September 30, 2021~~March 31, 2022 Compared with December 31, ~~2020~~2021

~~The increase in cash~~Cash and cash equivalents decreased from ~~$6.8~~$9.8 billion at December 31, ~~2020~~2021 to ~~$9.3~~$7.7 billion at ~~September 30, 2021 primarily reflects~~March 31, 2022 as cash used to fund share repurchases, the payment of dividends, the repayment of debt and capital expenditures was partially offset by cash generated from operations in the first ~~nine~~three months of ~~2021, partially offset by the payment of dividends, capital expenditures and share repurchases.~~2022. Working capital ~~was $10.6 billion at September 30, 2021 and $8.5~~declined from $11.1 billion at December 31, ~~2020. The increase in working capital in~~ 2021 ~~primarily reflects~~to $10.8 billion at March 31, 2022 as the ~~increase~~decrease in cash and cash equivalents and the increase in accounts payable were partially offset by ~~an increase~~increases in ~~the current portion of long-term debt.~~accounts receivable and inventory.

In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first ~~nine~~three months of ~~2021~~2022 totaled ~~$7.5~~$2.1 billion, ~~an increase~~a decrease of ~~$3.4 billion over~~$572 million compared to the prior year primarily due to an increased investment in various working capital components and the timing of pension and postretirement benefit plan contributions partially offset by higher operating earnings and ~~improved working capital management, partially offset by higher~~a reduction in cash taxes paid. Cash taxes paid in ~~2021~~the first three months of 2022 totaled approximately ~~$990~~$195 million versus ~~$700~~$270 million in ~~2020.~~2021. Other, net in Net cash from operating activities was a use of ~~$140~~$205 million for the first ~~nine~~three months of ~~2021~~2022 and a ~~source~~use of ~~$42~~$6 million for the first ~~nine~~three months of ~~2020.~~2021. The year-over-year change in Other, net in Net cash from operating activities primarily reflects the ~~nonrecurrence~~timing of ~~2020 non-cash impairment charges related to intangible assets and equity investments.~~benefit plan contributions.

On March 15, 2022, Abbott repaid the $750 million outstanding principal amount of its 2.55% Notes due 2022 upon maturity.

In September 2019, the board of directors authorized the early redemption of up to $5 billion of outstanding long-term notes. As of ~~September 30, 2021,~~March 31, 2022, $2.15 billion of the $5 billion authorization remains available.

At ~~September 30, 2021,~~March 31, 2022, Abbott’s long-term debt rating was A+AA- by Standard & Poor’s Corporation and A2A1 by Moody’s Investors Service. Abbott expects to maintain an investment grade rating. Abbott has readily available financial resources, including lines of credit of ~~$5.0~~$5 billion which expire in 2025.

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In ~~October 2019,~~December 2021, the board of directors authorized the repurchase of up to $3$5 billion of Abbott’s common shares from time to time. The ~~2019~~new authorization was in addition to the ~~approximately $100 million~~$1.081 billion portion of the share repurchase program authorized in ~~2014~~2019 that ~~remained~~was unused as of December 31, ~~2020.~~2021. In the first ~~nine months~~quarter of ~~2021,~~2022, Abbott repurchased ~~10.1~~17.3 million of its common shares for ~~$1.187~~$2.1 billion which fully utilized the authorization remaining under the ~~2014~~2019 share repurchase program and a portion of the ~~2019~~2021 authorization. As of ~~September 30, 2021, $1.910~~March 31, 2022, $3.981 billion remains available for repurchase under the ~~2019 share~~2021 repurchase program.

On April 27, 2016, the board of directors authorized the issuance and sale for general corporate purposes of up to 75 million common shares that would result in proceeds of up to $3 billion. No shares have been issued under this authorization.

In ~~each of~~ the first ~~three quarters~~quarter of ~~2021,~~2022, Abbott declared a quarterly dividend of ~~$0.45~~$0.47 per share on its common shares, which represents an increase of 254.4 percent over the ~~$0.36~~$0.45 per share dividend declared in ~~each of~~ the first ~~three quarters~~quarter of ~~2020.~~

~~Recently Adopted Accounting Standards~~

~~In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update ASU 2019-12,~~ ~~Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes~~, which among other things, eliminates certain exceptions in the current rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Abbott adopted the standard on January 1, 2021. ~~The new standard did not have an impact on its condensed consolidated financial statements.~~

Legislative Issues

Abbott’s primary markets are highly competitive and subject to substantial government regulations throughout the world. Abbott expects debate to continue over the availability, method of delivery, and payment for health care products and services. It is not possible to predict the extent to which Abbott or the health care industry in general might be adversely affected by these factors in the future. A more complete discussion of these factors is contained in Item 1, Business, and Item 1A, Risk Factors, in the ~~2020~~2021 Annual Report on Form 10-K.

Private Securities Litigation Reform Act of 1995 — A Caution Concerning Forward-Looking Statements

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Abbott cautions that any forward-looking statements made by Abbott are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

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PART I. FINANCIAL INFORMATION

Item 4. Controls and Procedures

(a)

Evaluation of disclosure controls and procedures. The ~~President and~~ Chief Executive Officer, Robert B. Ford, and Chief Financial Officer, Robert E. Funck, Jr., evaluated the effectiveness of Abbott Laboratories’ disclosure controls and procedures as of the end of the period covered by this report, and concluded that Abbott Laboratories’ disclosure controls and procedures were effective to ensure that information Abbott is required to disclose in the reports that it files or submits with the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and to ensure that information required to be disclosed by Abbott in the reports that it files or submits under the Exchange Act is accumulated and communicated to Abbott’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b)

Changes in internal control over financial reporting. During the quarter ended ~~September 30, 2021,~~March 31, 2022, there were no changes in Abbott’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, Abbott’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Abbott is involved in various claims, legal proceedings and investigations as described in our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021, including (as of March 31, 2022, except where noted below) those described below. While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations.

In its 2021 Annual Report on Form 10-K, Abbott reported that it is a defendant in numerous lawsuits in federal and state courts involving certain of its specialty infant formula products administered to preterm infants. In April 2022, the U.S. Judicial Panel on Multidistrict Litigation ordered the consolidation of the federal court cases in the Northern District of Illinois for pretrial purposes.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c)

Issuer Purchases of Equity Securities

(d) Maximum

Number (or

(c) Total Number

Approximate

(c) Total Number

Approximate

of Shares (or

Dollar Value) of

of Shares (or

Dollar Value) of

(a) Total

Units) Purchased

Shares (or Units)

(a) Total

Units) Purchased

Shares (or Units)

Number of

(b) Average

as Part of

that May Yet Be

Number of

(b) Average

as Part of

that May Yet Be

Shares (or

Price Paid per

Publicly

Purchased Under

Shares (or

Price Paid per

Publicly

Purchased Under

Units)

Share (or

Announced Plans

the Plans or

Units)

Share (or

Announced Plans

the Plans or

Period

Purchased

Unit)

or Programs

Programs

Purchased

Unit)

or Programs

Programs

July 1, 2021 – July 31, 2021

450,000

⁽¹⁾

120.849

450,000

2,540,924,508

⁽²⁾

August 1, 2021 – August 31, 2021

2,175,000

⁽¹⁾

123.265

2,175,000

2,272,822,841

⁽²⁾

September 1, 2021 – September 30, 2021

3,002,035

⁽¹⁾

120.814

3,000,000

1,910,394,012

⁽²⁾

January 1, 2022 – January 31, 2022

650,000

⁽¹⁾

127.262

650,000

5,998,449,112

⁽²⁾

February 1, 2022 – February 28, 2022

8,550,000

⁽¹⁾

123.643

8,550,000

4,941,301,237

⁽²⁾

March 1, 2022 – March 31, 2022

8,113,060

⁽¹⁾

118.344

8,113,060

3,981,169,070

⁽²⁾

Total

5,627,035

⁽¹⁾

121.764

5,625,000

1,910,394,012

⁽²⁾

17,313,060

⁽¹⁾

121.296

17,313,060

3,981,169,070

⁽²⁾

1.	These shares do not include the shares ~~deemed~~ surrendered to Abbott to ~~pay the exercise price~~satisfy tax withholding obligations in connection with the ~~exercise~~vesting of ~~employee~~restricted stock ~~options – 0 in July, 0 in August, 2,035 in September; and~~or restricted stock units.

~~These shares do not include the shares surrendered to Abbott to satisfy tax withholding obligations in connection with the vesting of restricted stock or restricted stock units.~~

On October 11, 2019, the board of directors authorized the repurchase of up to $3 billion of Abbott common shares, from time to ~~time.~~time (the “2019 Plan”). On December 10, 2021, the board of directors authorized the repurchase of up to $5 billion of Abbott common shares, from time to time (the “2021 Plan”). The amount available for repurchase under the remaining portion of the 2019 Plan has been fully utilized as part of the share repurchases in the first quarter of 2022.

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Item 6. Exhibits


Exhibit No.		Exhibit

3.1		By-Laws of Abbott Laboratories, as amended and restated effective ~~August 30, 2021,~~April 29, 2022, filed as Exhibit 3.1 to the Abbott Laboratories Current Report on Form 8-K filed on ~~September 1, 2021.~~February 22, 2022.

31.1		Certification of Chief Executive Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

31.2		Certification of Chief Financial Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)).

Exhibits 32.1 and 32.2 are furnished herewith and should not be deemed to be “filed” under the Securities Exchange Act of 1934.

32.1		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following financial statements and notes from the Abbott Laboratories Quarterly Report on Form 10-Q for the quarter ~~and nine months~~ ended ~~September 30, 2021,~~March 31, 2022, formatted in Inline XBRL: (i) Condensed Consolidated Statement of Earnings; (ii) Condensed Consolidated Statement of Comprehensive Income; (iii) Condensed Consolidated Balance Sheet; (iv) Condensed Consolidated Statement of Shareholders’ Investment; (v) Condensed Consolidated Statement of Cash Flows; and (vi) Notes to the Condensed Consolidated Financial Statements.

104		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document and included in Exhibit 101).

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ABBOTT LABORATORIES

By:	/s/ Robert E. Funck, Jr.
	Robert E. Funck, Jr.
	Executive Vice President, Finance and Chief Financial Officer

	Date: ~~November~~May 3, ~~2021~~2022

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	Three Months Ended September 30
	2021		2020
Common Shares:
Balance at June 30
Shares: 2021: 1,982,553,488; 2020: 1,979,594,379	$	24,153	$	23,893
Issued under incentive stock programs
Shares: 2021: 550,366; 2020: 1,172,844		26		48
Share-based compensation		113		101
Issuance of restricted stock awards		(7)		(5)
Balance at September 30
Shares: 2021: 1,983,103,854; 2020: 1,980,767,223	$	24,285	$	24,037

Common Shares Held in Treasury:
Balance at June 30
Shares: 2021: 209,736,139; 2020: 209,064,380	$	(10,340)	$	(9,904)
Issued under incentive stock programs
Shares: 2021: 545,860; 2020: 664,727		26		32
Purchased
Shares: 2021: 5,626,606; 2020: 5,989		(685)		(1)
Balance at September 30
Shares: 2021: 214,816,885; 2020: 208,405,642	$	(10,999)	$	(9,873)

Earnings Employed in the Business:
Balance at June 30	$	29,053	$	25,669
Net earnings		2,100		1,232
Cash dividends declared on common shares (per share — 2021: $0.45; 2020: $0.36)		(799)		(641)
Effect of common and treasury share transactions		22		6
Balance at September 30	$	30,376	$	26,266

Accumulated Other Comprehensive Income (Loss):
Balance at June 30	$	(9,066)	$	(9,080)
Other comprehensive income (loss)		(174)		36
Balance at September 30	$	(9,240)	$	(9,044)

Noncontrolling Interests in Subsidiaries:
Balance at June 30	$	229	$	220
Noncontrolling Interests’ share of income, business combinations, net of distributions and share repurchases		(13)		(11)
Balance at September 30	$	216	$	209


	Three Months Ended September 30, 2021						Three Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	936	$	936	$	—	$	799	$	799
Other		—		329		329		—		300		300
Total		—		1,265		1,265		—		1,099		1,099
Nutritionals —
Pediatric Nutritionals		586		514		1,100		488		518		1,006
Adult Nutritionals		333		675		1,008		330		588		918
Total		919		1,189		2,108		818		1,106		1,924
Diagnostics —
Core Laboratory		291		1,001		1,292		284		892		1,176
Molecular		162		183		345		220		238		458
Point of Care		100		35		135		96		35		131
Rapid Diagnostics		1,394		746		2,140		533		342		875
Total		1,947		1,965		3,912		1,133		1,507		2,640
Medical Devices —
Rhythm Management		266		305		571		242		265		507
Electrophysiology		192		293		485		192		249		441
Heart Failure		170		59		229		144		46		190
Vascular		219		425		644		230		400		630
Structural Heart		177		215		392		159		194		353
Neuromodulation		149		41		190		170		36		206
Diabetes Care		323		798		1,121		226		617		843
Total		1,496		2,136		3,632		1,363		1,807		3,170

Other		6		5		11		15		5		20

Total	$	4,368	$	6,560	$	10,928	$	3,329	$	5,524	$	8,853


	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
(in millions)	U.S.		Int’l		Total		U.S.		Int’l		Total
Established Pharmaceutical Products —
Key Emerging Markets	$	—	$	2,672	$	2,672	$	—	$	2,376	$	2,376
Other		—		843		843		—		780		780
Total		—		3,515		3,515		—		3,156		3,156
Nutritionals —
Pediatric Nutritionals		1,622		1,637		3,259		1,490		1,629		3,119
Adult Nutritionals		1,006		1,987		2,993		948		1,644		2,592
Total		2,628		3,624		6,252		2,438		3,273		5,711
Diagnostics —
Core Laboratory		845		2,935		3,780		840		2,312		3,152
Molecular		431		651		1,082		429		527		956
Point of Care		289		112		401		278		109		387
Rapid Diagnostics		3,178		2,732		5,910		1,246		719		1,965
Total		4,743		6,430		11,173		2,793		3,667		6,460
Medical Devices —
Rhythm Management		776		881		1,657		655		727		1,382
Electrophysiology		580		823		1,403		476		652		1,128
Heart Failure		483		167		650		411		140		551
Vascular		684		1,292		1,976		628		1,108		1,736
Structural Heart		537		654		1,191		386		508		894
Neuromodulation		460		124		584		392		97		489
Diabetes Care		865		2,292		3,157		614		1,736		2,350
Total		4,385		6,233		10,618		3,562		4,968		8,530

Other		31		18		49		30		20		50

Total	$	11,787	$	19,820	$	31,607	$	8,823	$	15,084	$	23,907


	Gain (loss) Recognized in Other								Income (expense) and Gain (loss)
	Comprehensive Income (loss)								Reclassified into Income
	Three Months				Nine Months				Three Months				Nine Months
	Ended Sept. 30				Ended Sept. 30				Ended Sept. 30				Ended Sept. 30
(in millions)	2021		2020		2021		2020		2021		2020		2021		2020		Income Statement Caption
Foreign currency forward exchange contracts designated as cash flow hedges	$	96	$	(103)	$	142	$	35	$	(92)	$	48	$	(207)	$	90	Cost of products sold
Debt designated as a hedge of net investment in a foreign subsidiary		4		(10)		41		(20)		—		—		—		—	n/a
Interest rate swaps designated as fair value hedges		n/a		n/a		n/a		n/a		(14)		(11)		(81)		184	Interest expense


	September 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Long-term Investment Securities:
Equity securities	$	758	$	758	$	776	$	776
Other		54		54		45		45
Total Long-term Debt		(18,200)		(21,330)		(18,534)		(22,809)
Foreign Currency Forward Exchange Contracts:
Receivable position		238		238		90		90
(Payable) position		(137)		(137)		(498)		(498)
Interest Rate Hedge Contracts:
Receivable position		129		129		210		210